Alternative Fuel Incentive Development

The California Air Resources Board and California Energy Commission developed the Alternative Fuel Incentive Program to allocate $25 million in incentives to promote the use and production of alternative fuels. Eligible projects include projects in California that promote high efficiency, high mileage, alternative fuel light-, medium-, and heavy-duty vehicles, for individual and public fleets. Incentives are available to replace the current state vehicle fleet with clean, high mileage alternative fuel vehicles and for the construction of publicly accessible retail alternative fueling stations and fleet fueling facilities, including E85. Incentives are also available for alternative fuel production in California and funding for research, development, and testing of alternative fuels and advancing vehicle technology. (Reference Assembly Bill 1811, 2006)