SF Bay Ferry Secures $12.5 Million Grant for Zero-emission Ferry Service

The San Francisco Bay Ferry announced on Thursday that it has received a $12.5 million grant from the California State Transportation Agency (CalSTA) to establish a zero-emission, battery-electric ferry service at the Harbor Bay Ferry Terminal in Alameda.

This funding will significantly enhance SF Bay Ferry’s Rapid Electric Emission-Free Ferry (REEF) Program, aimed at transitioning the agency’s fleet to zero-emission propulsion. The grant, part of CalSTA’s Transit and Intercity Rail Capital Program (TIRCP), will facilitate the installation of a universal charging float with battery storage, electric vessel charging infrastructure, and terminal upgrades at the Harbor Bay Ferry Terminal on Bay Farm Isle.

"SF Bay Ferry is committed to providing the region with the nation's first zero-emission fleet of fast ferries and we are making tremendous progress thanks to this latest investment from the Newsom Administration," said Jim Wunderman, Chair of SF Bay Ferry’s Board of Directors. "California understands that decarbonizing the transportation sector is essential to meeting the State’s ambitious greenhouse gas reduction goals and this project makes Harbor Bay’s ferry service a part of that effort."

The grant complements $5 million previously awarded by the California Energy Commission, along with $4 million in local matching funds. This project will enhance electric ferry service on the Harbor Bay route by providing the infrastructure needed for fully electric ferries to charge rapidly while docked, while also increasing charging capacity for ferry passengers and improving operational safety.

"Ron Cowan, who envisioned and developed Harbor Bay, was also the visionary behind the creation of SF Bay Ferry, and he partnered with the Bay Area Council to create it," Wunderman said. "He foresaw a San Francisco Bay known for its extensive, world class ferry system.  Ron passed away in 2017 – he would be very pleased and proud today."

In addition to enhancing ferry services, the grant will enable SF Bay Ferry to partner with the Working Waterfront Coalition, creating job opportunities in marine construction and maintenance for young adults from disadvantaged communities.

Over the past year, the ferry system has served more than 268,000 passengers on the Harbor Bay route and over 2.5 million overall.

With approximately $154 million in funding secured from local, state, and federal sources, the REEF Program includes the purchase of three new 150-passenger battery-electric vessels, two new 400-passenger battery-electric vessels, and the conversion of four diesel ferries to zero-emission technology. Terminal electrification across the system and upgrades to the Central Bay Operations and Maintenance Facility in Alameda are also part of the plan.

In August, SF Bay Ferry revealed designs for vessels that will operate on the Emerging Waterfront Neighborhoods Network, with procurement contracts for these ferries expected to be awarded in the coming months. The first high-speed battery-electric ferry is anticipated to begin operations in 2026, marking a significant milestone in the region’s commitment to sustainable transit.