Clean Energy Supports California Low Carbon Fuel Funding

-- Legislation Will Help Implement Gov. Arnold Schwarzenegger's Low Carbon Fuel Standard --

SEAL BEACH, Calif.--(BUSINESS WIRE)--

Clean Energy Fuels Corp. (Nasdaq:CLNE) has pledged its support for the new California legislation signed into law by Gov. Arnold Schwarzenegger to help implement the state's Low Carbon Fuel Standard.

In January 2007, the governor issued an Executive Order establishing the Low Carbon Fuel Standard (10% reduction in carbon content) for transportation fuels sold in California. Transportation accounts for more than 40% of California's annual greenhouse gas emissions, and the state relies on petroleum-based fuels for nearly 96% of its transportation needs.

Championed by California State Assembly Speaker Fabian Nunez, AB 118 (the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007) will provide an estimated $210 million annually in new energy subsidies and clean air programs to research, develop and deploy innovative technologies and alternative fuels to improve the state's air quality, as reported by the Los Angeles Times yesterday. The program is expected to start in 2008.

"We applaud the collaboration of Governor Schwarzenegger and Speaker Nunez in seeking to make the prospect of cleaner air a reality for California," said Andrew J. Littlefair, Clean Energy president and CEO. "This legislation should enable the state to move rapidly to meet its new, lower greenhouse gas emissions objectives. By extension, what is developed here may benefit the nation as a whole as cleaner technologies are implemented. Clean Energy will work to support these goals within the important vehicle markets it serves in the transit, refuse, airport, port and other sectors."

"Natural gas for transportation already exceeds the state's Low Carbon Standard goals," Littlefair added.

Heavy-duty natural gas (CNG and LNG) fueled vehicles reduce greenhouse gas emissions up to 20% or more compared to diesel-fueled vehicles. Light-duty natural gas-fueled vehicles, such as the Honda Civic GX, reduce greenhouse gas emissions even more compared to gasoline-fueled vehicles.

About Clean Energy

Clean Energy is based in Seal Beach, Calif., and is the leading provider of natural gas for transportation in North America. It has a broad customer base in the refuse, transit, shuttle, taxi, intrastate and interstate trucking, airport and municipal fleet markets, fueling more than 14,000 vehicles daily at strategic locations across the United States and Canada. Information at: www.cleanenergyfuels.com

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements. The forward-looking statements made herein speak only as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Source: Clean Energy Fuels Corp.

Released October 16, 2007