Search Federal and State Laws and Incentives

The definition of alternative fuel includes liquefied petroleum gas (propane). Special fuel is defined as all combustible gases and liquids that are suitable for powering an internal combustion engine or motor or are used exclusively for heating, industrial, or farm purposes. Special fuels include biodiesel, blended biodiesel, and natural gas products, including liquefied and compressed natural gas. (Reference Indiana Code 6-6-2.5-1 and 6-6-2.5-22)

The Indiana Department of Environmental Management (IDEM) administers two DieselWise Indiana grant programs to support projects that reduce diesel emissions. The Clean Diesel Across Northern Indiana program provides grants ranging from $25,000 to $200,000 for projects in the Gary, Hammond, Michigan City, South Bend, Elkhart, and Fort Wayne areas. The Clean Diesel Across Indiana program provides grants ranging from $10,000 to $75,000 for projects in central and south Indiana. Eligible applicants include private and public entities that operate equipment serving the public, including private bus fleets and sanitation fleets. Eligible projects include replacing or converting a diesel vehicle or vehicle component with one that operates on alternative fuel, as well as installing exhaust retrofit technologies, idle reduction technologies, aerodynamic technologies, and low rolling resistance tires. For more information, including current solicitations, see the IDEM DieselWise website.

The Indiana 21st Century Research and Technology Fund provides grants and loans to support economic development in high technology industry clusters. Incentives are available for qualified alternative fuel technologies and fuel-efficient vehicle development and production. For more information, see the Elevate Ventures 21st Century Fund website. (Reference Indiana Code 5-28-16-2)