SoCalGas Launches New Fuel Card Program to Help Reduce Greenhouse Gas Emissions from Heavy-Duty Transportation Sector

Rhea-AI Summary

SoCalGas (SRE) announced a $1.5 million LCFS Fuel Card Incentive Program to accelerate adoption of low- and zero-emissions heavy-duty trucks. From Sept. 9, 2024 through Dec. 8, 2024 SoCalGas will make funds available for up to 50 fuel cards, each worth $30,000, for companies that purchase a qualifying Class 8 heavy-duty natural gas truck on or after the launch date.

Cards are redeemable at SoCalGas' 16 public access stations that dispense 100% renewable natural gas; prioritization will be given to fleets with fewer than 10 vehicles. SoCalGas said it has converted 38% of its over‑the‑road fleet to alternative fuel vehicles and aims for 50% by 2025 and a 100% zero‑emissions fleet target under its ASPIRE 2045 strategy.

Positive

• $1.5M program funding for fuel cards
• 50 fuel cards available at $30,000 each
• Fuel cards valid at 16 public RNG stations

Negative

• Program runs for only 90 days (Sept. 9–Dec. 8, 2024)
• Cards issued while supplies last, limiting availability
• Prioritization for fleets with fewer than 10 vehicles may exclude larger fleets

Insights

Energy Transition Analyst

SoCalGas is funding 50 fuel cards to lower fleet fuel costs and promote heavy‑duty RNG adoption in California.

SoCalGas allocates $1.5 million to provide 50 fuel cards valued at $30,000 each for qualifying Class 8 heavy‑duty natural gas truck purchases made between Sept. 9, 2024 and Dec. 8, 2024. The cards apply to 16 public stations dispensing 100% renewable natural gas under the CARB LCFS framework. This directly reduces upfront operating fuel costs for selected fleets and ties incentive value to the utility’s LCFS credit flow.

The initiative depends on card availability and qualifying vehicle purchases, with prioritization for fleets with fewer than 10 vehicles, which concentrates benefits on smaller operators. The program’s immediate impact is limited by scale: 50 cards represent a defined, one‑time transfer of value rather than an ongoing subsidy. Stakeholders should watch program uptake rates, remaining card inventory, and any extension or repeat funding beyond the stated period to assess sustained influence.

LOS ANGELES, Sept. 9, 2024 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) announced today it will make $1.5 million available to provide funds for 50 fuel cards to help accelerate the transition to low- and zero-emissions vehicles in the heavy-duty transportation sector. For 90-days, starting today through Dec. 8, 2024, companies that purchase a qualifying vehicle can apply for a fuel card through SoCalGas' Low Carbon Fuel Standard (LCFS) Fuel Card Incentive Program. The $30,000 fuel card is designed to help support the transition to cleaner fuels in alignment with the California Air Resource Board (CARB) Scoping Plan for reaching carbon neutrality, by decreasing the demand for petroleum fuels to help reduce greenhouse gas emissions and improve air quality.

"As a company with approximately 5,000 light-, medium- and heavy-duty vehicles, as well as trailers and equipment, we understand the financial challenges that come with transitioning to a low- or zero-emissions fleet," said Jawaad Malik, chief strategy and sustainability officer at SoCalGas. "By implementing innovative incentives like these fuel cards, we can help provide commercial fleet owners with significant cost savings to encourage their transition to a cleaner fleet, which ultimately contributes to a healthier environment and a more sustainable and resilient economy for California."

Under the CARB LCFS program, SoCalGas receives credits for procuring low emissions fuels. The credits lower fuel prices at SoCalGas' 16 public access stations, which dispense 100% renewable natural gas (RNG). The creation of a fuel card incentive program is an additional way SoCalGas is giving credits back to customers in its service area to further support California's climate and clean air goals.

"We are excited that SoCalGas is offering this fuel card program that will provide significant savings for fleet operators," said Hal Meriwether, regional general manager for Rush Truck Centers in California. "As the nation's leading supplier of natural gas vehicles and consulting services, we are committed to helping customers make the best decisions for their business. This initiative makes the adoption of low- and zero-emission trucks more financially attractive for California fleets."

To participate in the SoCalGas LCFS Fuel Card Incentive Program applicants must purchase a Class 8 Heavy-Duty natural gas truck on or after the launch date of Sept. 9, 2024. Prioritization will be given to fleets with fewer than 10 vehicles. Selected applicants will receive a fuel card worth $30,000 that can be used at SoCalGas public access stations, while cards last.

"We appreciate the collaboration with SoCalGas and their commitment to supporting and growing the renewable natural gas market," said Mark Jamieson, business development director at Cummins Alternative Technologies. "We're grateful this program will encourage heavy-duty and line haul fleets to experience renewable natural gas with the new Cummins X15N and the emission reductions that it can deliver."

SoCalGas is a leader among utilities in its sustainability goals and was among the first and largest natural gas distribution utilities in the United States to announce its aim to achieve net-zero GHG emissions by 2045. As part of its ASPIRE 2045 sustainability strategy, SoCalGas has converted 38% of its over-the-road fleet¹ to alternative fuel vehicles (AFV) with an aim to reach 50% by 2025 and operate a 100% zero-emissions fleet by 2035². SoCalGas was also recognized with the Leading Private Fleet Award at the Advanced Clean Transportation (ACT) Expo in 2022 acknowledging the company's efforts to go above and beyond what is required to achieve sustainability in fleet operations.

The LCFS program was initially implemented in 2011 and is designed to encourage the use of cleaner low-carbon transportation fuels in California and the production of those fuels to reduce GHG emissions in the transportation sector. Learn more about SoCalGas' LCFS Fuel Card Incentive Program at socalgas.com/FuelCard.

About SoCalGas

SoCalGas is the largest gas distribution utility in the United States serving approximately 21 million consumers across approximately 24,000 square miles of Central and Southern California. SoCalGas' mission is to build the cleanest, safest, most innovative energy infrastructure company in America. SoCalGas aims to deliver affordable, reliable, and increasingly renewable gas service through its pipelines to help advance California's clean energy transition by supporting energy system reliability and resiliency and enabling the integration of renewable resources. SoCalGas is a recognized leader in its industry and community, as demonstrated by being named one of Reuters' Top 100 Innovators Leading the Global Energy Transition and Corporate Member of the Year by the Los Angeles Chamber of Commerce. SoCalGas is a subsidiary of Sempra (NYSE: SRE), a leading North American energy infrastructure company. For more information, visit SoCalGas.com/newsroom or connect with SoCalGas on social media @SoCalGas.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.

In this press release, forward-looking statements can be identified by words such as "believe," "expect," "intend," "anticipate," "contemplate," "plan," "estimate," "project," "forecast," "envision," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "construct," "develop," "opportunity," "preliminary," "initiative," "target," "outlook," "optimistic," "poised," "positioned," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: decisions, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) California Public Utilities Commission (CPUC), U.S. Department of Energy, U.S. Internal Revenue Service and other regulatory bodies and (ii) U.S. and states, counties, cities and other jurisdictions therein where we do business; the success of business development efforts and construction projects, including risks related to (i) completing construction projects or other transactions on schedule and budget, (ii) realizing anticipated benefits from any of these efforts if completed, (iii) obtaining third-party consents and approvals and (iv) third parties honoring their contracts and commitments; macroeconomic trends or other factors that could change our capital expenditure plans and their potential impact on rate base or other growth; litigation, arbitration and other proceedings, and changes (i) to laws and regulations, including those related to tax and trade policy and (ii) due to the results of elections; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money on favorable terms and meet our obligations, including due to (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, or (iii) rising interest rates and inflation; the impact on affordability of our customer rates and our cost of capital and on our ability to pass through higher costs to customers due to (i) volatility in inflation, interest rates and commodity prices and (ii) the cost of meeting the demand for lower carbon and reliable energy in California; the impact of climate policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas and natural gas storage capacity, including disruptions caused by failures in the pipeline system or limitations on the withdrawal of natural gas from storage facilities; and other uncertainties, some of which are difficult to predict and beyond our control.

These risks and uncertainties are further discussed in the reports that the company has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company or Southern California Gas Company, and Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC

¹ Over-the-road fleet refers to light-, medium-, and/or heavy-duty company fleet vehicles.
² Dependent on functional application and availability of vehicle products.

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SOURCE Southern California Gas Company

FAQ

What does the SoCalGas (SRE) LCFS Fuel Card program offer and for how long?

SoCalGas offers 50 fuel cards worth $30,000 each funded from a $1.5M pool for a 90‑day period from Sept. 9, 2024 through Dec. 8, 2024.

Who is eligible for the SoCalGas (SRE) fuel card for Class 8 trucks?

Applicants must purchase a qualifying Class 8 heavy‑duty natural gas truck on or after Sept. 9, 2024; priority is given to fleets with fewer than 10 vehicles.

Where can SoCalGas (SRE) fuel cards be used and what fuel is dispensed?

Fuel cards can be used at SoCalGas' 16 public access stations that dispense 100% renewable natural gas (RNG).

How does SoCalGas (SRE) justify the fuel card program in climate terms?

SoCalGas says the program uses LCFS credits to lower fuel costs and aims to decrease petroleum demand to help reduce greenhouse gas emissions and improve air quality.

How much of SoCalGas' over‑the‑road fleet is already on alternative fuels and what are the targets?

SoCalGas has converted 38% of its over‑the‑road fleet to alternative fuel vehicles, targeting 50% by 2025 and a 100% zero‑emissions fleet under ASPIRE 2045.