The California Energy Commission this week adopted the state's first transportation Investment Plan.

"The Alternative and Renewable Fuels and Vehicle Technology Program provides much needed funding to support deployment of clean fuels and vehicles," said Energy Commission Chairman Karen Douglas. "It also provides a unique opportunity to help California compete for billions of dollars in federal stimulus dollars."

The Alternative and Renewable Fuels and Vehicle Technology Program's Investment Plan allocates $176 million over the next two years to stimulate green transportation projects and encourage innovation to help meet the state's aggressive climate change policies.

"Vehicles are the major contributor to global warming pollution. More than 38 percent of the carbon dioxide and other greenhouse gases in California come from burning gasoline and diesel in cars and trucks," said Vice Chair James Boyd. "The Investment Plan promotes sustainable development. With it, California is embarking on a fundamental transformation of its transportation system to substantially decrease greenhouse gas emissions and petroleum use."

The Alternative and Renewable Fuels Vehicle Technology Program was established by Assembly Bill 118. The state is aggressively working to reduce greenhouse gas emissions by 80 percent below 1990 levels by 2050, decrease petroleum fuel use to 15 percent below 2003 levels by 2020, and increase alternative fuel use to 20 percent by 2020. Achieving these multiple objectives will require a portfolio of new fuels and vehicle technologies including electric drive and fuel cell vehicles, low-carbon biofuels, gasoline and diesel vehicles with far greater fuel economy, and natural gas and propane vehicles, say state officials.

AB 118 authorizes the Energy Commission to provide approximately $120 million annually over seven years to develop these new fuels and technologies, ensure that they are accessible to the public, and encourage motorists and fleet operators to purchase new advanced vehicles.

In its newly adopted Investment Plan, the Energy Commission proposes to expand the use of low carbon fuels and cleaner vehicles that are available today and open up the market for the more exotic technologies that are required in the future. Over the next two years, the Energy
Commission will invest $46 million for electric vehicles, public charging stations, and manufacturing plants; $40 million for hydrogen fueling stations; $12 million for advanced ethanol fuel production facilities and E-85 fueling stations; $43 million for natural gas vehicles, fueling stations and biomethane production facilities; $6 million for advanced renewable diesel and biodiesel facilities; and $2 million for propane vehicles. The Investment Plan also directs $27 million go to fund workforce training programs, research, public education and technical assistance programs.

More information about the Alternative and Renewable Fuels and Vehicle
Technology Program is available at