California has the largest targeted alternative/sustainable fuels spending package in the country with the $1.4 Billion dollar (total) AB118 initiative. Follow the developements, comments and maturation of this landmark bill here.

UPDATE! AB 118, the Alternative Fuels and Vehicle Technologies Assembly Bill was signed by Governor Schwarzenegger on October 14, 2007.
In mid-September, the Legislature sent the Governor a bill that would provide a significant amount of new funding for clean and energy efficient transportations technology, research development and deployment. On October 14, the Governor signed the Alternative Fuels and Vehicle Technologies Assembly Bill.
To learn more about the bill and California's efforts to advance clean transportation, contact:
John Boesel at 626.744.5607
Who supported AB 118?John Boesel at 626.744.5607
Assembly Bill 118
In January 2007, CALSTART commenced its Clean and Energy Efficient Transportation Technology (CEETT) Program to reduce greenhouse gas emissions from the transportation sector, promoting the program with the state’s legislature. With the support of almost 50 advanced transportation technology industry leaders, CALSTART was able to persuade Assembly Speaker Fabian Núñez to incorporate the bulk of the CEETT Program into his Assembly Bill 118.
AB 118 would provide grants and revolving loans to state agencies, California-based businesses and projects, public-private partnerships, vehicle and technology consortia, fleet owners, consumers, and academic institutions towards the development of alternative fuel and vehicle technologies to help attain the state’s climate change policies without adopting any one preferred fuel or technology. Providing funding for the development of more affordable fuels, technologies, advanced vehicles and alternative fuel infrastructure will not only reduce California's dependence on petroleum, but will ultimately spur innovation and competition in the marketplace.
AB 118 provides funding from fees on vehicle registrations for a term of seven years and is expected to yield about $205 million per year in new funding. Approximately $120 million would be managed by the California Energy Commission (CEC) for transportation programs that would not only improve air quality but also reduce dependence on oil and cut greenhouse gas emissions. The remaining $85 million would be managed by the California Air Resources Board on programs focused solely on improving air quality. The CEC projects would support the research and development, as well as the deployment of clean transportation technologies.
Click here for the full text of the bill

STATUS: AB 118 was signed by Governor Schwarzenegger on October 14, 2007.
AB 118's two programs are described in detail below.
1. The Air Quality Improvement Program, to be administered by the California Air Resources Board, would fund the following projects:
- Off-road equipment projects contemplating action not required by control measures adopted by the state board or any other laws to mitigate criteria air pollutant and toxic air contaminant emissions
- Mitigation for off-road gasoline exhaust and evaporative emissions not currently regulated by the state board
- Research to determine the air quality impacts of alternative fuels and projects that study the life-cycle impacts of alternative fuels and conventional fuels, the emissions of biofuel and advanced reformulated gasoline mixes, and air pollution improvement and control technologies for use with alternative fuels and vehicles
- Projects augmenting the Univ. of California’s Agricultural Extension program for research to increase sustainable biofuels production and improve the collection of biomass feedstocks
- Incentives for small off-road equipment replacement to encourage consumers to replace internal combustion engine lawn and garden equipment
- Incentives for heavy-duty vehicles and equipment mitigation, including lower emission school bus programs and heavy-duty electric off-road equipment
- Off-road equipment projects contemplating action not required by control measures adopted by the state board or any other laws to mitigate criteria air pollutant and toxic air contaminant emissions
- Alternative and renewable fuel R&D to improve/develop alternative and low-carbon fuels (incl. ethanol, dimethyl ether, renewable diesel, natural gas, biomethane; and their feedstocks) that have high potential for long-term and short-term commercialization
- Alternative and renewable fuel deployment projects that optimize fuels for existing and developing engine technologies
- Technology deployment projects to decrease the overall impact of a fuel’s life-cycle carbon footprint and sustainability
- Alternative and renewable fuel infrastructure, fueling stations and equipment incentive projects, including revolving loans and grants to small- and medium-sized businesses for these purposes
- Alternative and renewable fuel and efficient vehicle technology R&D that provide for better fuel efficiency, alternative fuel usage and storage, or emission reductions (incl. propulsions systems, lightweight materials, energy storage, engine optimization, electronic and electrified components, hybrid tech, plug-in hybrid tech, and fuel cell technology)
- Alternative and renewable fuel and efficient vehicle technology deployment projects that accelerate commercialization of vehicle technology, incl. buy-down programs for near-market and market-path deployments)
- Revolving loans to small and medium size businesses for medium-and heavy-duty vehicle fleets to retrofit existing fleets with technologies that create higher fuel efficiencies, including idle management technology and aerodynamic retrofits that decrease fuel consumption
- Alternative fuel and electric infrastructure projects that promote infrastructure development connected for existing fleets, public transit and transportation corridors.
Pictured: California State Assembly Speaker Fabian Núñez, who sponsored AB 118. Visit the Speaker's web site.
The programs will remain in effect until January 1, 2016.
AB118 Supporters Advanced Energy Conversion
AFS Trinity Power Corporation
Agile Turbine Technology
Automotive X PRIZE
Azure Dynamics
Ballard Power Systems
The BOC Group
California Hydrogen Business Council
Capital Green Fuels
Capricorn Investment Group
Capstone Turbine
Ceres
Clean Energy
Clean Energy Asset Management
CMEA Ventures
Chrysler LLC
DEHydS
Enova Systems
Gas Technology Institute
Haldex Hydraulics
Hydrogenics
Intelligent Energy
International Truck and Engine
ISE Corporation
Mack Trucks
Maxwell Technologies
Mobile Energy Solutions
Neste Oil
Pacific Ethanol
Quallion
Quantum Technologies
Superprotonic
T3 Motion
Tesla Motors
UQM Technologies
US Hybrid
UTC Power
Virtual Group, L.L.C.
Volvo Trucks North America
Waste Connections
Waste Management
Westport Innovations</SPAN>
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