Houston (Platts)--24May2007

The California Air Resources Board said Thursday that it had awarded $25
million in grant money to 40 projects to encourage early adoption of
alternative fuels.

     The grants were distributed over seven categories, including
infrastructure for distributing E85 fuel, biofuels production facilities,
hybrid electric vehicle technology, transit bus projects, consumer education
and research, according to an Air Resources Board staff report.

     The grant recipients include the Sacramento Metropolitan Air Quality
Management District, which will receive $3.5 million to go toward the
establishment of 820 retail and 10 fleet E85 fuel stations in the Sacramento
metropolitan area. Pearson Fuels will receive $800,000 to install E85 and
biodiesel tanks and dispensers at eight retails stations in California. 

     Additionally, six companies were awarded a total of $3.5 million for the
construction of biodiesel plants located in Oakland, Sacramento, San Diego,
Pacifica, Chilcoot and Santa Fe Springs.

     The California Air Resources Board said the funds will be awarded in late
May and early June. A total of 208 proposals were received by the agency,
requesting $160 million in total funds. 

		--Matthew Cook, matthew_cook@platts.com