In January 1999, two state government agencies—California Air Resources Board and California Energy Commission joined with six private sector companies—Ballard Power Systems, DaimlerChrysler, Ford Motor Company, BP, Shell Hydrogen and ChevronTexaco—to form the California Fuel Cell Partnership. The goal was to demonstrate and promote the potential for fuel cell vehicles as a clean, safe, and practical alternative to vehicles powered by internal combustion engines. Within a very short time, other government agencies and private businesses became members.

"California has teamed with some of the best automotive manufacturers and energy providers in the world, to develop an exciting new technology that is both environmentally safe and commercially viable." -- former Governor Gray Davis formally announcing the collaboration on April 20,1999

In November 2000, the West Sacramento headquarters opened. The building includes a public gallery, offices, a hydrogen fueling station and indoor service bays for vehicle maintenance. At first, the automakers had just handful of cars all stationed in Sacramento. The goal was to see if these vehicles and fuel could be technically viable. If the answer was no, then CaFCP would close its doors in 2004.

Before the first phase was finished, CaFCP members knew that the technology could succeed. The number of members grew to 33 and set a new set of goals for the next phase of operation, from 2004-2007. During this period, CaFCP members worked on project to prove or disprove the commercially viability—would the vehicles, fuels and public policies meet consumer expectations?

In mid-2006, the members agreed that FCVs could be a commercial success. They agreed to a  third phase through the end of 2012 to lay the foundations for a commercial market, which includes developing early retail stations, policies to enable the sale of retail hydrogen and necessary steps to building a supplier base for large-scale production in the future.

CaFCP completed its first phase of operation in December, 2003. The second phase will conclude in December, 2007. In mid-2006, the members agreed to enter a third phase to encourage fuel cell vehicle commercialization that will continue through 2012.