AB 118 Investment Plan – Staff Draft

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The increased use of alternative and renewable fuels supports California’s commitment to curb greenhouse gas emissions, reduce petroleum use, improve air quality, and stimulate the sustainable production and use of biofuels within California. Alternative and renewable transportation fuels include electricity, natural gas, biomethane, propane, hydrogen, gasoline substitute fuels, diesel substitute fuels, and other emerging fuel types. State investment is necessary to fill the gap and fund the differential cost of these emerging fuels and vehicle technologies.

Transportation fuels and vehicles are critical elements in California’s economy and society. However, nearly 96 percent of all transportation energy that Californians consume comes from petroleum‐based fuels. Depending on a single fuel type poses a number of significant challenges. The substantial rise in petroleum fuel prices over the last 10 years has created a significant impediment to economic growth. The 2007 State Alternative Fuels Plan set a goal of increasing alternative fuels use to 26 percent of all fuel consumed by 2022. Additionally, the state’s transportation sector accounts for nearly 40 percent of the state’s greenhouse emissions. Assembly Bill 32 (Núñez, Chapter 488, Statutes of 2006) established a goal of reducing greenhouse gas emissions to 1990 levels by 2020, and Executive Order S‐3‐05 established a goal of reducing greenhouse gas emissions to 80 percent below 1990 levels by 2050.