Alternative Fuels and ‘Green’ Cars to Get a Big Boost in California

The California Energy Commission is gearing up to provide consumers with low carbon and fuel efficient vehicle choices with a major new program starting this year. Using state funding and funding now available to California through the American Recovery and Reinvestments Act of 2009, the Commission is stepping up its efforts to stimulate the California economy.

Over the next seven and a half years, the Energy Commission will put in place its Alternative and Renewable Fuels and Vehicle Technology Program. Up to $120 million will be pumped into the California economy each year to encourage new production facilities and fueling stations for low carbon and alternative transportation fuels. The Program will offer the choice of alternative fuel cars and trucks for individual motorists and fleet operators. The Energy Commission also is seeking opportunities to locate in-state manufacturing operations, and begin training and curriculum projects to develop the skilled workforce needed to service and maintain the new transportation system.

The program is an important part of a larger State effort to reduce its carbon footprint and its dependence on foreign oil. Governor Schwarzenegger has set an aggressive goal to reduce California’s greenhouse gas emissions to 80 percent below 1990 levels by 2050, and the transportation sector creates approximately 37 percent of the state’s greenhouse gas emissions (GHG). The Governor has also set aggressive goals for increasing the in-state production of biofuels which can be produced from urban, agricultural, and forestry wastes. By altering our transportation choices, we also lessen our dependence on the 3.5 billion barrels of oil our country imports annually.
Governor Arnold Schwarzenegger beside alternative fuel vehicles

By making more alternative fueling stations available to the public, the program will encourage the change to more fuel-efficient, alternative fuel vehicles. Increasing the use of alternative fuel cars and trucks also will provide opportunities to alternative fuel entrepreneurs to expand their businesses in California, which in turn, will benefit California’s economy.

The program is also designed to boost in-state fuel and vehicle production. This in turn will increase the demand for workers with new, clean high technology skills, creating a greener job market with high wage and growth potential.
Propel E85 Refueling Station

Reducing greenhouse gas emissions helps to fight against global warming but also significantly reduces the health impacts that dirty air has on our communities. With $176 million in funding expected in the first two years and the potential to leverage federal stimulus funds, the Energy Commission’s program is expected to jump start California’s quest for an alternative fuels future.

How can this program help you? The Energy Commission proposes to fund new retail fueling stations for E85, compressed natural gas, liquefied natural gas, and hydrogen, and charging stations for electric drive vehicles. Funding may also be available for medium or heavy-duty fleets that are considering a move to alternative fuels.

The program’s Investment Plan is posted to the Energy Commission website. I encourage you to take a look at the funding opportunities and see how you can benefit from the program. Look for project solicitations this summer.

I can’t stress enough that we need your help to reach this ambitious goal. With a strong commitment from California’s consumers and the industry, the program can transform the transportation market into one that is self-sufficient and sustainable, while supporting California’s economy and helping combat climate change.

For more information on the Alternative and Renewable Fuel and Vehicle Technology Program, visit www.energy.ca.gov/proceedings/2008-ALT-1/index.html. Subscribe to the Alternative Fuels List Serve for the latest program updates and project solicitation information. -James D. Boyd is Vice Chair of the California Energy Commission