Transportation accounts for nearly 50 percent of greenhouse gas (GHG) emissions in California and has a significant impact on air quality, public health, and the environment.

The California Energy Commission’s Fuels and Transportation Division ensures that adequate and reliable transportation energy is provided to the state’s transportation sector while balancing economic, public health, safety, and environmental consequences.

The division administers the Clean Transportation Program (also known as the Alternative and Renewable Fuels and Vehicle Technology Program), Low Carbon Fuels Production Program, and School Bus Replacement Program.

The Clean Transportation Program  invests up to $100 million annually in a broad portfolio of transportation and fuel transportation projects throughout the state. Leveraging public and private investments, these investments support innovation and accelerate the development and deployment of alternative and renewable fuels and advanced vehicle technologies.  The program also invests in manufacturing and workforce training to translate clean technology investments into sustained employment opportunities.

The Low Carbon Fuel Production Program supports low carbon fuel production projects in California. The program will invest $12.5 million to support new and expanded renewable ultra-low-carbon transportation fuel production at commercial-scale advanced fuel production facilities, helping the state’s fuel industry and operators work toward a low-carbon future. 

The School Bus Replacement Program offers funding to replace old diesel school buses in disadvantaged and low-income communities throughout California. The program provides schools with options to embrace next-generation zero-emission vehicles and improve children’s health by reducing their exposure to transportation-related air pollution.