Fuel Management

Clean Energy Sees New CA Low Carbon Fuel Standard as Benefit to Natural Gas Vehicle Industry Growth

April 27, 2009

SEAL BEACH, CA – The State of California's Air Resources Board recently adopted a regulation to implement Governor Schwarzenegger's Low Carbon Fuel Standard calling for the reduction of greenhouse gas emissions from California's transportation fuels by 10 percent by 2020. The regulation encourages the use of four primary low carbon alternative fuels for transportation: hydrogen, electricity, natural gas and biomethane. Two of the four fuels, natural gas and biomethane, are in the form of fuel (CNG and LNG) provided by Clean Energy Fuels Corp.

"The new standard means we can begin to break our century-old dependence on petroleum and provide California with greater energy security," said California ARB Chairman Mary D. Nichols in making the announcement.

"This regulation confirms the value of using domestic natural gas as a low carbon alternative fuel for transportation as California and the nation seek to clean the air and reduce dependence on imported petroleum," said Andrew J. Littlefair, Clean Energy president and CEO. "Domestic CNG and LNG already exceed the state's 2020 goal of 10% carbon reduction."

"Natural gas fuel is produced from America's abundant supply of natural gas, estimated to equal 118 years of current demand based on known domestic resources, and more is being discovered across the country," Littlefair noted.

"Together with broader public awareness of the benefits of natural gas fuel and current and new government incentives from local to federal levels, the LCFS regulation in California should increase the use of natural gas vehicles in the state and around the country," he concluded.

Clean Energy is natural gas provider (CNG and LNG) for transportation in North America. It has a broad customer base in the refuse, transit, ports, shuttle, taxi, trucking, airport and municipal fleet markets, fueling more than 15,000 vehicles at 176 strategic locations across the United States and Canada. Clean Energy owns and operates two LNG production plants, one in Willis, TX and one in Boron, CA, with combined capacity of 260,000 LNG gallons per day and designed to expand to 340,000 LNG gallons per day as demand increases. It also owns and operates a landfill gas processing facility in Dallas, TX that produces renewable biomethane gas for delivery in the nation's gas pipeline network. More information is available at www.cleanenergyfuels.com.


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