Rulemaking to Modify Alternative and Renewable Fuels and Vehicle Technology Program Funding Restrictions

Docket Number: 15-OIR-02

Lead Commissioner: Janea A. Scott


Commission staff proposes to modify existing regulations requiring the discounting of credits received for projects that are funded through the Alternative and Renewable Fuel and Vehicle Technology Program (ARFVTP) (Title 20, California Code of Regs., section 3100 et seq.). Specifically, staff proposes to amend section 3103 to eliminate the requirement to discount the value of any emission credits received in an amount commensurate with the level of funding obtained from the Commission for those that voluntarily opt-in to programs for the purpose of participating in the program’s credit market. This change would allow these fund recipients to receive the full value of any emission credits the funded projects create. This change does not apply to those who are obligated to reduce emissions under such programs and no other substantive changes to the regulations are being proposed.

The Energy Commission has received letters and comments from several fund recipients indicating that the current prohibition on the full use of credits severely compromises the ability of these entities to produce and market alternative fuels and a letter from the California Air Resources Board supporting action by the Commission to resolve this issue. The negative impact of the current regulations cited by stakeholders was an unintended consequence not readily apparent when the regulations were first drafted, runs counter to the intent of California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Health and Safety Code §44270 et seq.), which established the ARFVTP, and impedes the State’s goal of increasing the production of low carbon, renewable fuels as part of the State’s strategy to reduce greenhouse gas emissions.

The Commission is proposing to adopt these changes in an emergency rulemaking to ensure that this matter is addressed expeditiously. This matter will be heard at the February 25, 2015 Business Meeting.



For more information please contact:

Tim Olson
California Energy Commission
1516 Ninth Street, MS-44
Sacramento, CA 95814-5512
Telephone: (916) 654-4528
E-mail: Tim.Olson@energy.ca.gov


Members of the News Media:
Please contact the Media and Public Communications Office at 916-654-4989.


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