Alternative Fuel Vehicle (AFV) Grants

The Office of the Lieutenant Governor, Energy Group administers the AFV Grant Program for projects that involve the purchase of AFVs, conversion of conventionally fueled vehicles to operate on alternative fuels, installation of AFV refueling facilities, purchase and use of renewable transportation fuels, or combinations of these purposes. AFVs include vehicles capable of operating on electricity, ethanol, propane, hydrogen and natural gas, as defined by the Energy Policy Act of 1992 (EPAct). They do not include hybrid electric vehicles. Grant amounts range from $2,000 to $50,000 and are determined according to the following formulas:

1. For the purchase of OEM AFVs for which the manufacturer produces a conventionally fueled equivalent, 80% of the incremental cost is eligible for funding.
2. For the purchase of OEM AFVs for which the manufacturer does not produce a conventionally fueled equivalent, 30% of the overall cost of the vehicle is eligible for funding.
3. For the conversion of vehicles to run on an alternative fuel, 80% of the cost of conversion is eligible for funding.
4. For the purchase and installation of refueling facilities for an alternative fuel to be used in vehicles, 50% of the facility cost is eligible for funding.
5. For the purchase and use of E85 or biodiesel in blends of 20% or higher, 50% of the incremental cost is eligible for funding.

Project budgets may include funding from third party sources, but the applicant itself must directly contribute at least 20% of the project's total budget. If a grant is awarded, the applicant will receive funds on a reimbursement basis only. Businesses, non-profit institutions and units of local government (including public school systems) are eligible to apply. AFV grants will not be awarded to fund research projects. Entities that are required to purchase alternative fuel vehicles under the Energy Policy Act of 1992 are not eligible for grants under this program.