A $31 million grant will fund demonstration projects for zero-emissions ferries in the waters of the San Pedro Bay.

The grant, awarded by the California Air Resources Board, will be split between Catalina Express, which runs ferrying operations to and from Catalina Island, and Harbor Breeze Cruises, which runs whale watching tours out of Long Beach. Each company will also chip in $15 million in matching funds, while the Port of Los Angeles and Port of Long Beach are chipping in $650,000 and $340,000, respectively.

Catalina Express, which is based in San Pedro, will help design, build and demonstrate a passenger ferry that runs on renewable diesel fuel and will replace three smaller ferries. The company transports passengers to and from Avalon – the only city on Catalina Island – via San Pedro, Long Beach and Dana Point, as well as between San Pedro and the unincorporated Two Harbors stop on the north of the island.

Greg Bombard, who founded Catalina Express and remains its president and chief executive, said the grant was in keeping with the company’s environmental stewardship and thanked the California Air Resources Board.

“Their support has allowed us to move forward on the construction of this new vessel to further the mission of environmental advancement and continuing to provide a valuable and affordable ferry service to Catalina Island for island residents, visitors and local communities,” he said.

Harbor Breeze Cruises, which is based in Long Beach, will build and deploy two excursion boats capable of operating at zero emissions at least 30% of the time – and sometimes 100%, based on the route.

“The forward-thinking San Pedro Bay ports are tackling local and global challenges to reduce criteria pollutants and greenhouse gases by supporting projects like this to create a healthier community and environment,” said Dan Salas, founder of Harbor Breeze Cruises.