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State and Federal Incentives and Laws

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North Carolina

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Grants

Clean Fuel Advanced Technology (CFAT) is a three-year project focused on reducing transportation related emissions in North Carolina's non-attainment and maintenance counties for National Ambient Air Quality Standards. Projects that are adjacent to areas may also be eligible if emissions will be reduced in the eligible counties. The $2 million project is funded by the North Carolina Department of Transportation, State Energy Office, and the Division of Air Quality, and covers three broad areas: education and outreach; project funding; and recognition of exemplary activities. Funding for up to 80% of project costs is available for AFVs, fueling infrastructure, idle reduction technologies, heavy-duty HEVs, heavy-duty buses, and diesel retrofits.

Point of Contact

Anne Tazewell
Alternative Fuels Program Manager
North Carolina Solar Center, North Carolina State University
Phone (919) 513-7831
Fax (919) 515-6159
anne_tazewell@ncsu.edu

Alternative Fuel Vehicle (AFV) Grants

Grants from the Department of Environment and Natural Resources Division of Air Quality are available for the incremental cost of purchasing Original Equipment Manufacturer AFVs, vehicle conversions, implementing idle reduction programs, and constructing or installing public alternative fuel fueling facilities. More than $500,000 in funding is available.

School Bus Emission Reduction Grants

A pilot program will be established within the North Carolina Department of Environment and Natural Resources to provide grants towards the required 20% state funding match for the federal Safe Accountable, Flexible, Efficient Transportation Equity Act — A Legacy for Users (SAFETEA-LU), specifically for diesel school bus retrofits or repowers that reduce particulate matter emissions. Any repowering or replacement of existing diesel engines in school buses must meet the U.S. Environmental Protection Agency 2007 Heavy Duty Highway Diesel Standards. (Reference House Bill 1912, 2007)

Alternative Fuel Use and Fuel Efficient Vehicle Requirements

State-owned vehicle fleets with more than 10 motor vehicles designed for highway use must establish plans to improve the use of alternative fuels and fuel-efficient vehicles. The plans must enable the state-owned fleets to achieve a 20% reduction or displacement of the current petroleum products consumed by January 1, 2010. Reductions may be met by petroleum or oils displaced through the use of biodiesel, ethanol, synthetic oils or lubricants, other alternative fuels, the use of hybrid electric vehicles, other fuel-efficient or low-emission vehicles or additional methods as may be approved by the State Energy Office. (Reference Session Law 2005-276, Section 19.5)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

Since January 1, 2004, it has been the goal of the state that at least 75% of new or replacement light-duty cars and trucks (8,500 pounds or less Gross Vehicle Weight Rating) purchased by the state must be AFVs or low-emission vehicles. (Reference North Carolina General Statutes 143-215.107C)

Alternative Fuel Tax Exemption

The retail sale, use, storage or consumption of alternative fuels is exempt from the state retail sales and use tax. (Reference North Carolina General Statutes 105-164.13)

Biodiesel Tax Exemption

The retail sale, use, storage or consumption of alternative fuels is exempt from the state retail sales and use tax. (Reference North Carolina General Statutes 105-164.13)