The new rebate is part of California’s statewide Low Carbon Fuel Standard initiative, which aims to reduce transportation-related greenhouse gas emissions by encouraging the adoption of clean fuels like compressed natural gas. Transportation is the single largest contributor to greenhouse gas emissions in California at 40%.

By participating in the statewide Low Carbon Fuel Standard program, PG&E generates credits when customers purchase compressed natural gas as a clean transportation fuel. After selling these credits to regulated parties, PG&E returns the revenue to its compressed natural gas customers through the Clean Fuel Rebate.

Compressed natural gas is one of the cleanest burning fuels currently available and produces less greenhouse gas emissions than other burning fuels. Each mile driven using compressed natural gas reduces vehicle greenhouse gas emissions by 30% compared to gasoline cars and 25% compared to diesel trucks.

Compressed natural gas is mainly used by businesses or government agencies for their fleet vehicles as it can provide a cleaner and more affordable way to fuel. Additionally, compressed natural gas continues to get cleaner as both fuel and engine technologies advance and become more efficient.