Expired, Repealed, and Archived Alabama Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Alternative Fuel and Idle Reduction Revolving Loan Program for Public Entities

Archived: 08/01/2023

The Alabama Department of Economic and Community Affairs (ADECA) offers low-interest energy efficiency loans through its Local Government Energy Loan program to local governments and educational institutions. Eligible energy efficiency improvement projects include those involving idle reduction equipment and natural gas and propane vehicle conversions or purchases. Dedicated and bi-fuel vehicles are eligible. Loans may cover both incremental and conversion costs. Local governments and public colleges and universities may borrow up to $350,000, and K-12 public schools may borrow up to $350,000 per campus or $500,000 per school system. The minimum loan amount is $50,000 and the maximum loan term is five years. For more information, including application availability, see the ADECA’s Energy Division website.

Alternative Fuel and Idle Reduction Revolving Loan Program for Private Entities

Expired: 05/01/2020

The Alabama Department of Economic and Community Affairs provides an energy efficiency and renewable energy loan through its AlabamaSAVES program to commercial, industrial, and non-profit entities. Eligible energy efficiency improvements include those involving idle reduction equipment, natural gas and propane vehicle conversions or purchases, and alternative fueling infrastructure installation at existing facilities in Alabama. Dedicated and bi-fuel vehicles are eligible, and the loan may cover incremental and conversion costs. For additional information, see the AlabamaSAVES website.

Alternative Fuels Promotion and Information

Archived: 06/01/2017

The Center for Alternative Fuels (Center) promotes alternative fuels as viable energy sources in the state. The Center must assess the current status and development of sources of alternative fuels, ensuring that all alternative fuels sold in the state meet ASTM standards, and act as an information center for alternative fuels and a clearinghouse for available federal grant funding for alternative fuel development. The Center may administer a grant program using income tax check-off program funds from the Alabama Alternative Fuels and Research Development Fund. For more information, refer to the Center for Alternative Fuels website. (Reference Code of Alabama 2-2-90 and 2-2-91)

Biodiesel Fuel Storage Grants

Archived: 05/01/2016

The Alabama Department of Economic and Community Affairs (ADECA) Energy Division administers the Alabama Biodiesel Incentive Program, which provides grants of up to $2,500 to cover the cost of cleaning existing fuel tanks in preparation for storing biodiesel blends of at least 20% (B20) for use in public school, state college and university, and local government fleets. Successful applicants must provide B20 for a minimum of three years. Grantees must also provide information to ADECA Energy Division about the number of gallons of B20 dispensed and used to fuel fleet vehicles during this time period.

Biofuel Production Facility Tax Credit

Repealed: 07/02/2015

The following was repealed by Act 27, 2015: Companies that invest in the development of a biofuel production facility may be eligible for a tax credit of up to 5% of project costs per year for up to 20 years. Companies may claim this credit against the state income tax or the financial institution excise tax liability that the project generates. For the purposes of the credit, biofuel is defined as a motor vehicle fuel that is produced from grain, starch, oilseeds, vegetable, algae, animal materials, or other biomass. To be eligible for the tax credit, the capital costs of the production facility must be at least $2 million, or $500,000 if the facility is located in a favored geographic area, which includes enterprise zones and less developed areas. The credit expires December 31, 2018. Additional restrictions apply. (Reference Code of Alabama 2-2-90, 40-18-190 through 40-18-194, and 40-18-202.1)

Biodiesel Use in School Buses and Government Vehicles

Archived: 05/31/2012

The Alabama Legislature encourages the use of biodiesel blends in the state. The legislature urges public school systems to use blends of 20% biodiesel (B20) in all diesel-powered school buses and encourages state entities to use biodiesel blends of at least 5% (B5) in diesel-powered motor vehicles. (Reference Senate Joint Resolution 14 and 15, 2009)

Biofuels Research and Development Support

Archived: 05/31/2012

The Alabama Department of Economic and Community Affairs administers the Alabama Research Alliance (ARA), which facilitates scientific research and development, including agricultural research and development activities related to biofuels. The ARA may use received income to support research and development activities. (Reference Executive Order 37, 2007)

Interagency Alternative Fuels Working Group

Archived: 05/31/2012

The Alabama Legislature urges the Alabama Department of Finance to invite all state agencies, commissions, boards, counties, and municipalities to join an interagency Alternative Fuels Working Group to promote education, research and development, production, and consumption of alternative fuels. (Reference Senate Joint Resolution 16, 2009)