Electricity Laws and Incentives in Alabama
The list below contains summaries of all Alabama laws and incentives related to electricity.
State Incentives
Alabama's National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Alabama Department of Transportation (ALDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.
For more information about Alabama’s NEVI planning process, see the Alabama Department of Economic and Community Affairs Electric Vehicle Charging Infrastructure Program website. To review Alabama’s NEVI plan, see the Joint Office State Plans for EV Charging website.
Electric Vehicle (EV) Charger and Medium- and Heavy-Duty Diesel Vehicle Replacement Rebates
The Alabama Department of Economic and Community Affairs (ADECA) offers grants for light-duty EV chargers and the replacement of qualified medium- and heavy-duty diesel vehicles with new diesel or alternative fuel vehicles. Grants are available for EV chargers; medium- and heavy-duty trucks; school, shuttle, and transit buses; freight switchers; airport ground support equipment; and forklifts and port cargo handling equipment. Vehicles must meet model year requirements. Funding amounts are based on vehicle type, fuel type, and applicant type. Grants are funded by Alabama’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and the application, see the ADECA Volkswagen Settlement website.
Electric Vehicle (EV) Chargers Grants
The Alabama Department of Economics and Community Affairs (ADECA) administers the EV Charging Infrastructure Program. Government and non-government entities are eligible to receive funding for the installation of publicly accessible direct current (DC) fast chargers and Level 2 EV chargers along non-interstate corridors. Additional terms and conditions apply. For more information, see the ADECA EV Charging Infrastructure Program website.
Laws and Regulations
Electric Vehicle (EV) Chargers Grant Program
The Alabama Department of Transportation is authorized to administer the Electric Transportation Infrastructure Grant Program to distribute grants for EV charging infrastructure expansion.
(Reference Code of Alabama 40-12-242)
Electric Vehicle (EV) Charging Station Financing Program Authorization
The Alabama Department of Economic and Community Affairs (ADECA) administers the Commercial Property Assessed Clean Energy (C-PACE) program. Under C-PACE, a county, municipality, or improvement district may issue bonds, notes, or other types of financing methods to support energy efficiency or storm resilience improvements to commercial properties, including the installation of EV charging stations. For more information, see the ADECA Property Insurance and Energy Reduction Act website and the C-PACE Program Report.
(Reference Code of Alabama 11-81-240 through 11-81-250)
Electric Vehicle (EV) Fee
EV owners must pay an annual fee in addition to standard registration fees. All-electric vehicle owners must pay an annual fee of $203 and plug-in hybrid electric vehicle owners must pay an annual fee of $103. EV fees increase by $3 every four years. A portion of fees contribute to the Electric Transportation Infrastructure Grant Program, which provides grants for EV charging stations.
(Reference Code of Alabama 40-12-242)
Fuel-Efficient Green Fleets Policy and Fleet Management Program Development
The Alabama Legislature established a Green Fleets Review Committee (Committee) and Green Fleets Policy (Policy) outlining a procurement procedure for state vehicles based on criteria that includes fuel economy and life cycle costing. State fleet managers must classify their vehicle inventory for compliance with the Policy and submit annual plans for procuring fuel-efficient vehicles. These plans must reflect a 4% annual increase in average fleet fuel economy for light-duty vehicles, a 3% annual increase in average fleet fuel economy for medium-duty vehicles, and a 2% annual increase in average fleet fuel economy for heavy-duty vehicles per fiscal year. Government entities must manage and operate their fleets in a manner that is energy efficient, minimizes emissions, and reduces petroleum dependency by using specified proven technology the Committee identifies.
(Reference Code of Alabama 41-17A-1 through 41-17A-6)
Public Utility Definition
An entity that owns, operates, leases, or controls electric vehicle charging stations is not defined as a public utility.
(Reference Alabama Public Service Commission Docket No. 32694)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.