California Awarded More Than $8.5 Million

Energy Commission awards more than $8.5 million to bring natural gas- and propane-powered vehicles to California.

March 16, 2012
Manufacturing Group

The California Energy Commission approved funding of $8,554,000 to help bring natural gas- and propane-powered shuttle buses, cars and trucks to California's roadways. The awards are funded by the Commission's Alternative and Renewable Fuel and Vehicle Technology Program.

"This award will help pay the difference between a conventional gasoline- or diesel-powered vehicle and one powered by a much cleaner alternative fuel,” said Energy Commissioner Carla Peterman. “Individual consumers as well as public and private fleet operators can benefit from this funding, which could put as many as 357 new natural gas-powered vehicles and 110 propane-powered vehicles into service in California.”

The Energy Commission already has awarded nearly $20.5 million to help buyers afford new, alternative-fueled passenger vehicles and medium- and heavy-duty buses and trucks. The on-road vehicles meet all the emission requirements of the Air Resources Board and are fully warranted by the original equipment manufacturer.

“By encouraging the use of alternatively fueled vehicles, we are helping create jobs and reduce California's dependency on petroleum," says Peterman. "Using cleaner-burning fuels also helps reduce greenhouse gas emissions and other air pollutants. Cleaner air will protect the environment and the health of all Californians throughout the 20-year expected life-span of these vehicles. Consumers and businesses also will save money by using a domestically produced, lower-cost alternative fuel."

To make the Energy Commission's buy-down program as efficient and simple as possible, the incentive reservations are awarded in blocks to vehicle manufacturers or their designated dealers. The incentives are passed on to the individual buyers at the point of sale. Applications from manufacturers for the program are considered on a first-come, first-serve basis. To benefit from the incentives, purchasers must agree to operate the vehicles in California on the alternative fuel at least 90% of the time for three years.

More information about the Alternative and Renewable Fuels and Vehicle Technology Program is available at the Energy Commission's DRIVE website at: