Assembly Bill 118 (Núñez, Chapter 750, Statutes of 2007) created the Alternative and Renewable Fuel and Vehicle Technology Program to be administered by the California Energy Commission.

AB 118 authorizes the Energy Commission to award approximately $120 million annually as grants, revolving loans, loan guarantees, and other appropriate measures to qualified entities to develop and deploy innovative fuel and vehicle technologies that to attain the state's alternative fuel use and petroleum reduction goals in a manner consistent with climate change policies, without adopting or advocating any one preferred fuel or technology.

Projects eligible for funding shall include the following, but shall not include projects required to be undertaken pursuant to state or federal law or district rules or regulations:

• Alternative and renewable fuel projects to develop and improve alternative and renewable low-carbon fuels


• Demonstration and deployment projects that optimize alternative and renewable fuels for existing and developing engine technologies


• Projects to produce alternative and renewable low-carbon fuels in California


• Projects to decrease the overall impact of an alternative and renewable fuel's life-cycle carbon footprint and increase sustainability


• Alternative and renewable fuel infrastructure, fueling stations, and equipment


• Projects to develop and improve light-, medium-, and heavy-duty vehicle technologies that provide for better fuel efficiency and lower greenhouse gas emissions, alternative fuel usage and storage, or emission reductions


• Programs and projects that accelerate the commercialization of vehicles and alternative and renewable fuels including buy-down programs through near-market and market-path deployments, advanced technology warranty or replacement insurance, development of market niches, and supply-chain development


• Program and projects to retrofit medium-and heavy-duty on-road and non-road vehicle fleets with technologies that create higher fuel efficiencies, including alternative and renewable fuel vehicles and technologies, idle management technology, and aerodynamic retrofits that decrease fuel consumption


• Infrastructure projects that promote alternative and renewable fuel infrastructure development connected with existing fleets, public transit, and existing transportation corridors


• Workforce training programs related to alternative and renewable fuel feedstock production and extraction, renewable fuel production, distribution, transport, and storage, high-performance and low-emission vehicle technology and high tower electronics, automotive computer systems, mass transit fleet conversion, servicing, and maintenance, and other sectors or occupations related to the purpose of the Program


• Block grants administered by not-for-profit technology consortia for multiple projects, education and Program promotion within California, and development of alternative and renewable fuel and vehicle technology centers.

The Energy Commission has opened a rulemaking proceeding (Docket # 08-OIR-1) that will consider, but not be limited to, adopting regulations and other provisions necessary for the administration of Program. Funding through the Program will be available only after regulations have been completed and published by the Secretary of State.

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For more information, please contact:

Peter Ward Fuels & Transportation Division
California Energy Commission
Phone: 916-654-4634
E-mail: PWard@energy.state.ca.us

News Media Please Contact:

Media & Public Communications Office
Phone: 916-654-4989
E-mail: mediaoffice@energy.state.ca.us