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State and Federal Incentives and Laws

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New York

Alternative Fuel Product Development Funding

The New York State Energy Research and Development Authority's (NYSERDA) Transportation Research Program sponsors a wide variety of product development efforts aimed at improving efficiency and increasing the use of alternative fuels. Program Opportunity Notices are issued periodically to solicit proposals for cost-share development efforts leading to the manufacture and sale of innovative products that provide energy, environmental and economic development benefits. For more information about this program visit the NYSERDA Transportation Projects Web site.

Alternative Fuel Bus Funding

The Clean Fueled Bus Program, administered by the New York State Energy Research and Development Authority (NYSERDA), provides funds to state and local transit agencies, municipalities, and schools for up to 100% of the incremental cost of purchasing new alternative fuel buses and associated infrastructure. For the purposes of this program, an alternative fuel bus is any motor vehicle with a seating capacity of 15 or more passengers used for the transportation of persons on public highways that is powered by compressed natural gas (CNG) (including dual-fuel technology with a minimum of 75% use of CNG during typical operation), propane, methanol, hydrogen, biodiesel, or ethanol, or uses electricity as a primary motive force (e.g., hybrid electric). Project selection is based on the emissions reduction potential. Funding for this program comes from the Clean Water/Clean Air Bond Act.

Point of Contact

Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Funding

The New York State Clean Cities Challenge, administered by the New York State Energy Research and Development Authority (NYSERDA), awards funds to members of New York's Clean Cities Coalitions that acquire AFVs or install AFV fueling or recharging infrastructure. Funds are awarded on a competitive basis, and can be used to cost-share up to 75% of the proposed project, including the incremental cost of purchasing AFVs, the cost of installing fueling and recharging equipment, and the incremental costs associated with bulk alternative fuel purchases.

Point of Contact

Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/

Fuel Exclusivity Contract Regulation

Motor fuel franchise dealers are permitted to obtain alternative fuels from a supplier other than a franchise distributor. Any provision of a franchise which prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, and compressed natural gas from a firm or individual other than the distributor is null and void as it pertains to that particular alternative fuel if the distributor does not supply or offer to supply the dealer with the alternative fuel. Distributors who violate the law by entering into exclusivity contracts will be subject to a fine of $1000. If the distributor does offer renewable fuels, they are allowed to require the station to use their brands. (Reference New York General Business Law 199-j)

Alternative Fuel Fueling Infrastructure Feasibility Study

The New York State Energy Research and Development Authority (NYSERDA), the New York State Thruway Authority, and the New York Department of Environmental Conservation have undertaken a study regarding the feasibility and construction of alternative fuel fueling facilities at gasoline stations located along the New York State Thruway. Once finalized, NYSERDA will prepare and deliver to the governor a report that will include, but not be limited to, the following: 1) the current availability of the various alternative fuels and associated technologies which use alternative fuels for transportation purposes; 2) the projected growth in the availability and use of alternative fuel vehicles (AFVs) for the next 10 years; 3) the current and projected price of the various alternative fuels, AFVs, and alternative fuel fueling equipment for the next 10 years as well as the current and projected cost of operation of alternative fuel vehicles, including incremental cost comparisons; 4) the feasibility of each thruway public facility containing a gasoline station to accommodate one or more alternative fuel facilities. (Reference Assembly Bill 11331, 2006)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Technical Assistance

The New York State Energy Research and Development Authority's (NYSERDA) Flexible Technical (Flex-Tech) Assistance Program provides assistance to fleet managers who want to evaluate the feasibility and cost of adding AFVs and fueling facilities to their operations. Low-cost training for vehicle mechanics is available through certified institutions.

Point of Contact

Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/

Alternative Fuel Technical Assistance

The New York State Clean Cities Sharing Network (Network), which provides technical, policy, and program information about alternative fuel vehicles (AFVs), is managed by the New York State Energy Research and Development Authority (NYSERDA). Membership is open to all organizations, businesses, and individuals interested in AFVs and members are notified about upcoming funding opportunities and events. The Network publishes information about tax incentives, fueling stations, case studies, and contact information for the Clean Cities program and other industry leaders. The Network also organizes and sponsors technical workshops.

Point of Contact

Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/

Alternative Fuel Vehicle (AFV) Acquisition Requirements

State agencies and other affected entities must procure increasing percentages of AFVs as part of their annual vehicle acquisition plans; hybrid electric vehicles qualify under these requirements. By 2010, 100% of all new light-duty vehicles must be AFVs, with the exception of designated specialty, police, or emergency vehicles. State agencies and other affected entities that operate medium- and heavy-duty vehicles must implement strategies to reduce petroleum consumption and emissions by using alternative fuels and improving vehicle fleet fuel efficiency. State agencies and other affected entities may substitute the use of 450 gallons of B100 for the acquisition of one AFV. Alternatively, the use of 2,250 gallons of B20 or use of 9,000 gallons of B5 may also be substituted in place of purchasing one AFV. No more than 50% of a given state agency fleet's AFV purchase requirement may be met by substituting B100, B20, or B5 in accordance with this Executive Order. (Reference Executive Order 111, 2001, and Executive Order 142, 2005 (PDF 238KB)) Download Adobe Reader

Biofuels Use Requirement

To the extent that gasoline powered state agency vehicles use central fueling stations, all state agencies and public authorities must use E85 in flexible-fuel vehicles (FFVs) whenever it is feasible to do so. The Governor's Clean Fueled Vehicles Council, chaired by the Commissioner of the Office of General Services and comprised of the fleet managers of state agencies and public authorities, was established to prepare a plan outlining steps that can be taken to ensure that, to the greatest extent possible, all FFVs in the state fleet that can use E85 will do so, and identify and implement measures to provide for E85 fueling. Additionally, the Council is required to detail how agencies and authorities can purchase, allocate, distribute and use biodiesel in state agency and public authority fleets. At least 10% of fuels used in the state fleet must be biodiesel by 2012. (Reference Executive Order 142, 2005 (PDF 238KB)) Download Adobe Reader

Point of Contact

Clean Fueled Vehicles Council
Alternative Fueled Vehicles Program
New York State Office of General Services
Phone (518) 473-6594
Fax (518) 486-1734
nys.alt.fuel@ogs.state.ny.us

Biofuel Production Tax Credit

Biofuel producers in New York State are eligible for a state tax credit of up to $0.15 per gallon of biodiesel (B100) or ethanol produced after the production facility has produced and made available for sale 40,000 gallons of biofuel per year. The credit is capped at $2.5 million per taxpayer per taxable year, and available for no more than four consecutive taxable years per production facility. (Reference New York Tax Law 28)

Biofuel Fueling Infrastructure Funding

The objective of the Biofuel Station Initiative Program (Program), administered by the New York State Energy Research and Development Authority (NYSERDA), is to increase the number of retail fueling stations offering E85 and biodiesel blends in the state. The program provides a reimbursement of up to 50% of the cost of new installations of biofuel dispensing equipment, storage tanks, and associated piping equipment, not to exceed $50,000 per site. Applications are accepted from owners and operators of public access retail fueling stations in the state. Funding is limited, and the Program does not cover the cost of facility permitting or engineering. Cost-shared technical assistance is also available for the following: technical review of design and construction specifications for the biofuel equipment; analysis of existing and proposed equipment; preparation and submission of requests for biofuel specific permits and waivers to local and state code officials; and training of facility staff.

Point of Contact

Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/