The transportation sector accounts for almost 50 percent of greenhouse gas (GHG) emissions in California when accounting for fuel production, with light-duty vehicles making up 70 percent of the transportation sector’s direct emissions. As part of a statewide effort to curb GHG emissions, Senate Bill (SB) 1014 (2018) and Public Utilities Code 5450– the Clean Miles Standard and Incentive Program – require California Air Resources Board (CARB) to adopt and the California Public Utilities Commission (CPUC) to implement annual targets to reduce greenhouse gas emissions from transportation network company (TNC) services and certain other types of transportation providers. The reduction in GHG emissions will occur primarily through transitioning drivers on TNC platforms to zero-emission vehicles.

CARB’s Clean Miles Standard Final Regulation Order was made effective on October 1, 2022, which established two annual targets for CMS Regulated Entities.

Phase 1 Decision

On March 7, 2024 the Commission issued the Clean Miles Standard Phase 1 Decision (D.) 24-03-001 establishing the first set of CMS implementation requirements.

The decision defines the entities subject to CMS, exempts small CMS Regulated Entities, establishes a Drivers Assistance Program managed by a third-party Program Administrator, and sets implementation requirements around greenhouse gas emissions reduction plan (GHG Plan) submissions, program evaluation, clean mobility, Environmental and Social Justice Action Plan goals, data reporting, and outreach and engagement.

The Drivers Assistance Program will be funded by a Commission-determined per-trip fee set during the GHG Plan review process. Through the Drivers Assistance Program, eligible low- and moderate-income drivers will have access to financial incentives to support transitioning to zero emission vehicles. The program will be a one-stop-shop resource for all drivers who are transitioning their vehicles. The Commission will select the Program Administrator and oversee and approve of all aspects of implementation.

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