The California Energy Commission approved ownership transfer of two units of a 904 MW gas-fired power plant in Orange County. Under the unanimous approval granted May 4, two of the four units at the Huntington Beach Generating Station are to be transferred from a subsidiary of the AES Corporation to Edison Mission Energy. Under a sale-leaseback deal submitted to the Federal Energy Regulatory Commission, AES is set to lease the units from Edison Mission Energy and operate them for up to two years. The acquired units have a 425 MW generating capacity. According to a March 17 FERC filing, Edison Mission expects to eventually retire the units and transfer the emissions allowances. The units were to be repowered, but their permits expire in September, according to AES documents. The power plant uses once-through cooling for its intake, and as such, is set to be phased out by the state. The commission this week also approved about $10 million in grants, loans, and contracts. The largest amount was a $2.7 million grant to Cummins Engine, a fuel systems designer and builder. The company says it plans to use its award to develop a medium-duty hybrid truck engine that uses ethanol instead of diesel. The commission also awarded a $2 million contract to the University of California, San Diego, to help establish the California Initiative for Large Molecule Sustainable Fuels, a project that aims to research and develop renewable, low carbon, large molecule liquid fuels for the purpose of aiding California\u2019s transportation fuel needs. Among the initiative\u2019s goals, according to a draft agreement document, are facilitating the transfer of technology to the commercial sector and working with policy makers on the development of large molecule fuels for economic and environmentally sustainable energy production.