Alternative and renewable fuel and vehicle technology program
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- Table 1: Summary of Key Policy Objectives
INTRODUCTIONExtraordinary changes have taken place in our economic, political, and energy landscape in the last few years. The California economy, along with the U.S. economy, is still struggling to overcome one of the worst recessions since the Great Depression. California had one of the highest unemployment rates in the nation at 12.5 percent in October 2009, with over 2.2 million California residents unemployed.1 After months of economic decline, however, indicators are beginning to show signs of gradual improvement. Monthly job losses have diminished, residential and commercial construction has stabilized and state-wide home prices have risen for the last several months. The overall U.S. economy expanded in the third quarter after four quarters of decline however, the recovery is expected to be gradual with slow job growth and a constrained credit market. Economic uncertainty, volatile energy prices, and capital constraints have had an adverse affect on green transportation technology development and deployment over the past year.2 Potential investors in alternative and renewable fuel projects are wary of uncertain fuel price forecasts and many who would otherwise be willing to invest are hesitant. Due to lower gasoline prices consumers and businesses are somewhat less motivated to buy alternative or advanced vehicle technology than they were when gasoline prices spiked many months ago.3 They also have less discretionary income to spend on new vehicles or higher priced alternative vehicles. Over the long term, however, there are positive trends for green transportation. For example, green transportation employment in California has increased 152 percent since 1995, with the sub-category of alternative fuels jobs increasing 201 percent in that period. 4,5 The recent initial public offering from A123 Systems, a leading supplier of high-power lithium ion batteries is another sign that alternative transportation technology is increasingly attractive to investors.6 During this critical phase of emerging green transportation technology and deployment, government will continue to play an important role in providing policies that provide long-term market signals and performance standards as well as incentives that encourage private investment in alternative and renewable transportation fuels and technologies.
Beginning in 2003, many key California policies have been adopted to reduce GHG, reduce the state’s dependence on petroleum, increase the development and use of alternative and renewable fuels and vehicles, and stimulate in-state sustainable production and use of biofuels.(Table 1) Transforming California’s transportation sector to achieve these policy objectives will require the well planned use of state and federal funds to encourage private investment in alternative and renewable fuels and technologies. It is important to note that reaching the GHG and petroleum reduction goals, will require additional steps beyond alternative and renewable fuels deployment. The Energy Commission’s 2050 analysis shows that the state cannot meet transportation’s GHG “fair share” by fuel switching and advanced vehicle technologies alone. Aggressive transportation planning such as more efficient land use planning and transportation mode changes are required to reduce vehicle miles traveled. Table 1: Summary of Key Policy Objectives
The Energy Commission is providing incentives to accelerate the development and deployment of clean, efficient, low-carbon alternative fuels and technologies. Assembly Bill (AB) 118, (Núñez, Chapter 750, Statutes of 2007) created the Alternative and Renewable Fuel and Vehicle Technology Program (Program). The statute amended by AB 109 (Núñez, Chapter 313, Statutes of 2008), authorizes the Energy Commission to develop and deploy alternative and renewable fuels and advanced transportation technologies to help attain the state’s climate change policies. The Energy Commission has an annual Program budget of approximately $100 million that provides financial support for projects that:
The Energy Commission can use grants, loans, loan guarantees, revolving loans, and other appropriate financial measures. Entities including public agencies, private businesses, public-private partnerships, vehicle and technology consortia, workforce training partnerships and collaboratives, fleet owners, consumers, recreational boaters, and academic institutions are eligible for funding. The statute requires the Energy Commission to prepare an investment plan to determine funding priorities and opportunities and describe how Program funding will be used to complement other public and private investments. The Energy Commission adopted its first investment plan combining funds from fiscal years (FY) 2008-2009 and 2009-2010 at the April 22, 2009, Business Meeting. The statute also requires the Energy Commission must also adopt a new investment plan each year. This investment plan will be the funding guide for FY 2010-2011. Download 0.77 Mb. Share with your friends:
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