Search Federal and State Laws and Incentives

Alternative Fuel and Idle Reduction Grants

The North Carolina Department of Environment and Natural Resources Division of Air Quality provides grants for the incremental cost of original equipment manufacturer alternative fuel vehicles, vehicle conversions, and implementing idle reduction programs. For more information see the Diesel Emission Reductions Grants website.

Alternative Fuel and Alternative Fuel Vehicle (AFV) Fund

The North Carolina State Energy Office administers the Energy Policy Act (EPAct) Credit Banking and Selling Program, which enables the state to generate funds from the sale of EPAct 1992 credits. The funds that EPAct credit sales generate are deposited into the Alternative Fuel Revolving Fund (Fund) for state agencies to offset the incremental costs of purchasing biodiesel blends of at least 20% (B20) or ethanol blends of at least 85% (E85), developing alternative fueling infrastructure, and purchasing AFVs and hybrid electric vehicles. Funds are distributed to state departments, institutions, and agencies in proportion to the number of EPAct credits generated by each. For the purposes of this program, alternative fuels include 100% biodiesel (B100), biodiesel blends of at least B20, ethanol blends of at least E85, compressed natural gas, propane, and electricity. The Fund also covers additional projects approved by the Energy Policy Council. (Reference North Carolina General Statutes 143-58.4, 143-58.5, 143-341, and 136-28.13)

Alternative Fuel Vehicle (AFV), Idle Reduction Technologies, and Diesel Retrofits Funding

The Clean Fuel Advanced Technology (CFAT) project provides grant funding to reducing transportation-related emissions in nonattainment and maintenance counties for National Ambient Air Quality Standards. A project that is adjacent to these areas may also be eligible for funding if the project will reduce emissions in eligible counties. The North Carolina Department of Transportation funds the CFAT project, which covers three broad areas: education and outreach; project funding; and recognition of exemplary activities. For the fiscal year 2019 funding cycle, financial support is available for AFV purchases or leases, idle reduction technologies, and diesel retrofits. For more information, including current requests for proposals, see the CFAT website.

Heavy-Duty Vehicle Emissions Reduction Funding

The North Carolina Department of Environmental Quality’s (DEQ) Diesel Bus and Vehicle Programs provide funding for heavy-duty on-road new diesel or alternative fuel vehicles or engine repowers and replacements, as well as off-road repowers and replacements. Both government and non-government entities that own and operate diesel fleets and equipment are eligible for funding. Vehicles and equipment that qualify for replacement or repower include:

• Model Year (MY) 2009 or older Class 4-8 school buses, shuttle buses, and transit buses;
• MY 1992-2009 Class 4-7 local freight trucks;
• MY 1992-2009 Class 8 local freight trucks and port drayage trucks; and
• Freight switchers, ferries and tugs, marine vessel shorepower, airport ground equipment, and forklifts and port cargo handling equipment.

Electric Vehicle Supply Equipment (EVSE) Funding

The North Carolina Department of Environmental Quality’s (DEQ) Zero Emission Vehicle Direct Current (DC) Fast Charge Infrastructure Program provides funding for the purchase and installation of public access DC fast EVSE. The program will prioritize EVSE installed along specific highway corridors. This program is funded by North Carolina’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including how to apply, see the DEQ DC Fast Charge Program website.