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Santa Cruz Subway officials have long known that free funding would facilitate their goals of zero-emission bus fleets and new transportation and housing developments. So when state officials arrived in town on Monday with tens of millions of handouts, it was like a celebration.

A $38.6 million award from the California Department of Transportation will help Metro purchase 24 zero-emission, hydrogen-fueled buses (about 25% of the 94 buses) to propel 120 buses. Pacific Station North Redevelopment Cross the finish line to inject the 60-unit Watsonville Transportation Center project with the funds needed to complete the transportation infrastructure. Both development projects combine transportation and housing access, and experts say the strategy is crucial to achieving equitable housing and promoting more automobiles.

The award was provided by the state in combination with a separate $3.5 million financial grant. Plans for Proposed Coastal Rail and Trail Projectspart of a $690 million pool. Funding 28 transportation projects across the state. As part of the Santa Cruz Awards were announced, top class people from across the state gathered in parking lots adjacent to downtown’s existing subway stations.

“Seeing projects that combine zero-emission buses, bus services and affordable housing is a win-win,” said California Transportation Secretary Tokus Omisyakin. “When I saw the staff explaining the awards that the governor is going to announce today, [in Santa Cruz’s plan] When I saw the word ‘affordable’ and saw the word ‘zero emission bus’ among all 28 projects announced, I said, ‘Affordable.’ [to Santa Cruz] beginning. ‘”

The city’s economic development director Bonnie Lipscomb told Lookout that the award, along with the future tax credits, will support the 120-unit Pacific Station North project. development) will be fully funded. downtown subway station. Lipscomb said a groundbreaking ceremony for the project is likely to take place in the first quarter of 2024.

“This is a really big project,” Lipscomb said. “There is a lot of preparation that needs to be done to plan the metro bus. [while the project is under construction]. There are a lot of logical pieces to finalize regarding public works and metro, but we are working hard right now. ”

The subsidy also reflects the state and local transit agency’s belief that hydrogen fuel technology is an important part of a zero-emission public bus system. Metro CEO Michael Tree said current electric bus batteries last longer than hydrogen-fueled buses and need to be recharged more frequently. Metro plans to operate 24 buses (to replace existing buses) within the next 18 months. Metro will also build a hydrogen fueling station at its existing operations center on River Street.