The California Public Utilities Commission (CPUC) today set the path for transportation companies to electrify their fleets as part of the state’s goal to transition the transportation sector to clean technology.
Today’s decision kicks off the first phase of the California Clean Miles Standard Program (CMS). This program, established through Senate Bill 1014 (2018), is a collaborative effort between the California Air Resources Board (CARB) and CPUC, aiming to devise innovative strategies to combat emissions. CARB has set annual targets to increase the percentage of Transportation Network Companies (TNCs) vehicle miles traveled by zero-emission vehicles to 90% and eliminate greenhouse gas (GHG) emissions by 2030.
CPUC’s decision mandates TNCs like Lyft and Uber, charter party carriers regulated by the CPUC, and companies providing passenger services for compensation with autonomous vehicles to adhere to the GHG reduction goals outlined in the CMS program.
“The Clean Miles Standard Program is truly unique in that it sets requirements for Transportation Network Companies to reduce their greenhouse gas emissions footprint while also providing generous monetary assistance for low- and moderate-income drivers on Transportation Network Companies’ platforms to buy or lease a zero-emission vehicle,” said Commissioner John Reynolds, who is assigned to the proceeding. “Today’s decision sets the pathway for California’s regulated Transportation Network Companies to increase zero-emission vehicle miles to 90 percent and eliminate greenhouse gas emissions by 2030, targets established by our partner agency, the California Air Resources Board.”
“Today, the CPUC takes an important step in developing rules for the transportation sector in California to meet our State’s goal of reducing greenhouse gas emissions in a manner that promotes equity,” said Commissioner Darcie L. Houck. “Meeting our State’s greenhouse gas goals will require regulated transportation companies like Uber and Lyft to eliminate greenhouse gases in their fleet by 2030 in a way that serves all Californians. As the rules for this program develop, I look forward to seeing how the innovative Driver Assistance Program will provide low- and moderate-income drivers with incentives to purchase and receive free charging for zero emission vehicles.”
Under the Decision, CMS-regulated entities are required to submit a Tier 3 Advice Letter on their Interim GHG Plan to meet CARB’s annual targets. A comprehensive GHG Plan will be filed after the CPUC’s Phase 2 decision, including detailed data reporting.
“Transportation is responsible for a substantial portion of both greenhouse gas emissions and air pollution in California, and it is essential that we transition to clean technology in every part of this sector to address climate change and bring clean air to our communities. Today’s vote by the CPUC means that companies providing essential transportation services will now be partners in helping California achieve a zero-emissions future,” said CARB Chair Liane Randolph. “The Clean Miles Standard charts a path toward the adoption of cleaner vehicle technology while supporting low-income drivers in making the transition to zero-emission vehicles, so that clean air and equity are guiding goals.”
Drivers Assistance Program
The decision introduces a Drivers Assistance Program designed to alleviate the impact on low- and moderate-income drivers transitioning to Zero-Emission Vehicles (ZEVs). Monitored by CPUC staff through regular progress reports, the program is consistent with the Commission’s Environmental and Social Justice Action Plan. Funded through a per-trip CMS Regulatory Fee, the initiative offers incentives for ZEV purchases and charging, targeting drivers with household incomes at or below 400 percent of the federal poverty level. The CPUC is responsible for choosing and overseeing the Program Administrator for the Drivers Assistance Program.
Outreach and Engagement
To ensure the successful implementation of the program, CPUC staff will engage with a Drivers Working Group and Implementation Working Group, conducting extensive outreach and collaboration with public and private entities specializing in ZEVs, charging infrastructure, and incentives. Multilingual marketing and educational outreach efforts will be employed.
Phase 2
Phase 2 of the proceeding will address enforcement, sustainable land use, AV passenger services, optional credits, prioritization of ZEVs, incentives for rentals, and multiple upfront incentives, concluding specific program requirements.
For more information on the Clean Miles Standard Program, please visit the CPUC’s website.
The proposal voted on is available on the CPUC’s website.
Documents related to the proceeding are available on the Docket Card.
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About the California Public Utilities Commission
The CPUC regulates services and utilities, protects consumers, safeguards the environment, and assures Californians access to safe and reliable utility infrastructure and services. Visit www.cpuc.ca.gov for more information.
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