Clean Miles Standard

With the enactment of SB 1014 (2018), the Air Resources Board has established new requirements to curb greenhouse gas emissions from large rideshare companies, and the California Public Utilities Commission (CPUC) is currently implementing those requirements.

Background

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 2 Decision

On September 3, 2026, the Commission issued the Clean Miles Standard (CMS) Phase 2 Decision (D. 26-09-004), which builds on the Phase 1 Decision to further develop and refine CMS program elements and closes the Commission’s CMS Rulemaking (R. 21-11-014).

The Phase 2 Decision clarifies how the program applies to Autonomous Vehicles and Transportation Charter-Party Carriers, addresses sustainable land use objectives, greenhouse gas (GHG) optional credits, clean vehicle requirements and driver outreach, and adds new incentives for low-to-moderate income drivers to rent zero-emission vehicles. In addition, the decision establishes processes for ending program elements once the CMS Regulated Entities have met the program goals. Finally, the decision sets up the issue of ensuring compliance with the CMS targets to be addressed in a future rulemaking.

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 is 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 oversees and approves of all aspects of implementation with the selected Program Administrator.

For more information on the Drivers Assistance Program (also known as Rideshare Incentives for Driving Electric or RIDE), visit the CMS RIDE webpage.

To apply for incentives and learn more about program eligibility, please visit RIDEca.org.

To access all documents related to the CMS proceeding, please visit the R.21-11-014 Docket Page.