The California Public Utilities Commission (CPUC) has approved requests by the state's major energy utilities to maintain (and in some cases expand) funding for certain programs designed to aid in the development of low emission vehicles (LEV) and infrastructure. However, the CPUC approved less than the total requested by the state's energy utilities and stressed that ratepayer funding should not be used to support utility involvement in the competitive transportation market. Recent action by the state legislature revoked the CPUC's express discretion to establish special incentive tariffs for the use of natural gas and electricity as vehicle fuels.
The CPUC also lost its power to permit natural gas
utilities to construct refueling stations, support vehicle conversions centers, offer incentives for vehicle conversions or purchase of factory equipped natural gas vehicles, or pass the costs of such programs on to ratepayers.