Demonstrating California's leadership in the national push to reduce dependency on petroleum and greenhouse gas (GHG) emissions while improving energy security, the Alternative and Renewable Fuel and Vehicle Technology Program (also known as AB 118) provides financial incentives for businesses, vehicle and technology manufacturers, workforce training partners, fleet owners, consumers and academic institutions to develop and deploy alternative and renewable fuels and advanced transportation technologies to help attain the state's climate change policy objectives.
Distributing as much as $100 million annually through competitive grants and other means, the Energy Commission is leveraging large federal and private investments to help grow the nation's energy security through fuel diversity, while encouraging long-term economic development and advanced transportation employment opportunities.
Projects selected for program funding accelerate the development of alternative transportation fuels through the improvement and commercialization of existing and emerging alternative fuel vehicles and infrastructure. Recognizing there is no “silver bullet” or single solution, funded projects include commercial vehicle demonstrations and deployment, vehicle manufacturing, fuel production, fuel distribution infrastructure and research of innovative technologies. Additionally, critical functions such as outreach and marketing, workforce training and studies that focus on sustainable industry practices reinforce the goals of the program.
You can find out more in the projects section of this site.
How Funding Priorities are Determined
Each year, with input from stakeholders and the AB 118 Advisory Committee, the Energy Commission establishes funding priorities and strategies that reflect the program goals and provide opportunities to complement and leverage existing public and private investments. These strategies are detailed in the annual Investment Plan Update for the Alternative and Renewable Fuel and Vehicle Technology Program and are intended to fill the funding gaps that otherwise delay the advancement of these promising technologies.
Get the latest Investment Plan.
Considered in the annual Investment Plan are the 2050 Vision goals outlined in the State Alternative Fuels Plan of 2007 (Assembly Bill 1007, Pavley, Chapter 371, Statutes of 2005), which was jointly developed and adopted by the Energy Commission and Air Resources Board and the Global Warming Solutions Act of 2006 (Assembly Bill 32, Núñez, Chapter 488, Statutes of 2006). In general, the State Alternative Fuels Plan makes recommendation to:
- Reduce GHG emissions to 1990 levels by 2020 and 80% below 1990 levels by 2050
- Reduce petroleum fuel use to 15% below 2003 levels by 2020
- Increase the use and production of alternative fuels in the state by 26% by 2022.
- Increase in-state biofuels production 40% by 2020
Other important California regulations and policies driving the implementation of the Alternative and Renewable Fuel and Vehicle Technology Program include the Zero Emission Vehicle regulations, the Low Carbon Fuel Standard and the Bioenergy Action Plan.
Learn more about the key regulation and policies that drive the Alternative and Renewable Fuel and Vehicle Technology Program.