The California Energy Commission has approved over $26m for the development of clean fuel vehicles in the state.

The funding is being made under the Commission’s Alternative and Renewable Fuel and Vehicle Technology Program, created by Assembly Bill 118.

The program is slated to invest about $90m for the fiscal year 2013 in order to boost the development and use of new technologies, and alternative and renewable fuels, to help the state meet its climate change goals.

Accordign to the commisison, the funds will eb awarded to new compressed natural gas fueling infrastructure; electric vehicle charging stations at grocery stores in Southern California; buy-down reservations to offset the cost of purchasing propane and natural gas vehicles, including 97 school buses; a clean vehicle rebate program; a biofuel facility that will convert organic waste into natural gas; and a US Department of Defense vehicle-to-grid demonstration project.

California Air Resources Board is the major beneficiary with a funding of about $8m for its Clean Vehicle Rebate Project for qualified electric drive vehicles.

The commission will grant $5.25m buy-down incentives for 385 alternative-fuel vehicles, including 250 propane vehicles, and 135 natural gas vehicles.

Commenting on the initiative, Energy Commissioner Janea A. Scott said that the funding being made will boost the development of a clean-energy transportation sector in the state.

"The broad suite of projects approved today, and others like them, can help California achieve its climate and clean air goals by accelerating the transition to cleaner fleets and by demonstrating innovative technologies," Scott added.