Lawmakers hammering out the state budget in Sacramento approved $6.5 million for the system of non-polluting hydrogen cars and fueling stations beginning Jan. 1.
Some Democrats questioned the expense. They raised concerns about whether the money would be better spent on schools, and whether taxpayers or private companies will own the hydrogen fueling stations the money will help construct. Republicans also questioned whether the technology for hydrogen fuel-cell vehicles is viable.
The administration sought to put the best face on the news, although it jeopardizes Schwarzenegger's goal of having up to 100 hydrogen fueling stations in California by 2010.
``It is still moving forward,'' said Jon Myers, a state EPA spokesman. ``The $6.5 million we got is enough to get us going. We're still going to be able to start building stations.''
The measure approved Thursday calls for construction of ``up to three demonstration hydrogen fueling stations in the state.''
Six weeks ago, the Schwarzenegger administration released its ``Hydrogen Highway Blueprint.'' That document recommended spending $10.7 million a year during the next five years, for a total of $53.5 million.
The money was to be used for 50-50 matching funding with private companies to build a network of stations clustered around the Bay Area and Los Angeles. Because 39 hydrogen stations already exist or are planned soon, 61 new stations, at a cost of about $1 million each, would need to be built by 2010, the report says. The money also was to be used for incentives of up to $10,000 a vehicle to help car companies build vehicles that emit only water vapor from their tailpipes.
Since 2004, Schwarzenegger has pushed the ``hydrogen highway'' as a way to help California speed a national transition from oil and reduce smog and greenhouse gases.
General Motors, Toyota, Honda and others already have a few hydrogen vehicle prototypes on U.S. highways, leased to government fleets or universities. None are for sale yet to consumers, although Honda leased the first one to a family in Torrance last week for $500 a month.
``We are looking at doing several more leases, but it has to be convenient for people to have somewhere to fill up,'' said Andy Boyd, a spokesman for Honda.
Many experts say widespread use of hydrogen vehicles is 10 to 20 years away, as technological challenges such as fuel storage and driving range are worked out.
About 90 hydrogen vehicles are on California roads now in demonstration projects. The Schwarzenegger blueprint sets a goal of 2,000 by 2010. But legislators are clearly not on board with the idea yet.
``There were concerns that the technology was not quite there yet,'' said Republican Senate leader Dick Ackerman of Tustin.
Democrats said they want the stations owned by the public, not Shell, BP or other companies who have expressed interest in building stations.
``I'm willing to make the public investment, but not so Chevron can make a profit,'' said Assemblywoman Jackie Goldberg, D-Los Angeles. ``It can invest its own money.''
EPA's Myers said, ``I don't think it has been determined yet who will own the stations.''
Environmentalists said they will look to the federal government for more funding.
``Am I disappointed? Yes,'' said Roland Hwang, vehicles policy director for the Natural Resources Defense Fund in San Francisco. ``We do understand there are a lot of competing priorities. But the urgency to cut global warming pollution and reduce our oil dependency is so great that this is a prudent investment.''