The Clean Fuel Rebate comes from the State of California's Low Carbon Fuel Standard (LCFS) Program. The goal of the Low Carbon Fuel Standard is to reduce transportation-related greenhouse gas emissions by encouraging the adoption of cleaner fuels, like compressed natural gas. The Clean Fuel Rebate is available for PG&E compressed natural gas account holders for their use of compressed natural gas as a clean transportation fuel.
Each mile driven using compressed natural gas reduces vehicle greenhouse gas emissions by 30 percent compared to gasoline cars and 25 percent compared to diesel trucks.
PG&E compressed natural gas account holders will automatically receive the Clean Fuel Rebate as an annual credit on their bill. There is no need to apply.
The Clean Fuel Rebate amount varies for each customer and is based on that customer's consumption of compressed natural gas from one of PG&E's fueling stations during the Rebate Period, which is the time period associated with the rebate.
To receive a rebate, customers must have an active PG&E compressed natural gas account on the G-NGV2 rate schedule at the time of the rebate distribution and have purchased compressed natural gas through this PG&E compressed natural gas account within the Rebate Period. The rebate period is generally the prior calendar year – for example, the 2021 Clean Fuel Rebate will cover consumption from January 1 to December 31, 2020.
The first rebate was issued in 2017 and has been applied annually afterwards. The rebate is expected to continue through 2023 but may be modified or discontinued at any time without notice.
The Low Carbon Fuel Standard (LCFS) is a State of California program administered by the California Air Resources Board. The Low Carbon Fuel Standard Program is designed to reduce the carbon intensity of transportation fuels by 20 percent below 2010 levels by 2030 by encouraging adoption of cleaner fuels.
The LCFS requires a 20% reduction in the carbon intensity of on-road transportation fuels by 2030. The LCFS compliance targets become more stringent over time, requiring fuels to become increasingly cleaner to meet the 2030 goal. Producers of fuels whose carbon intensities exceed the targets (e.g. electricity and compressed natural gas) generate credits. Producers with deficits can meet their LCFS compliance obligations by reducing the carbon intensity of their fuels and by purchasing credits.
For more information, visit the California Air Resources Board's Low Carbon Fuel Standard website.
When PG&E sells electricity for use in electric vehicles or compressed natural gas for use in natural gas vehicles, PG&E generates LCFS credits, because these fuels are both cleaner than conventional fuels, like gasoline or diesel. PG&E then sells these LCFS credits to regulated parties that need to meet the compliance target under the LCFS. PG&E returns the revenue from the sale of these credits to its EV customers and CNG customers through the Clean Fuel Rebate.
No, PG&E returns the revenue from its credit sales, minus administrative costs of running the program, to qualified customers through the Clean Fuel Rebate. PG&E believes in supporting a cleaner California and voluntarily participates in the Low Carbon Fuel Standard Program. By generating and selling credits from the clean electricity and compressed natural gas it dispenses and providing rebates, PG&E supports the program and provides a benefit for its customers.