Search Federal and State Laws and Incentives

Alternative Fuel Tax

The state road tax for vehicles that operate on propane (liquefied petroleum gas or LPG) is paid through the purchase of an annual flat fee sticker, and the amount is based on the vehicle's gross vehicle weight rating. Each person owning and/or operating a vehicle that operates on propane must obtain a decal annually from the Alabama LPG Board. The decal must be affixed to the vehicle according to LPG Board specification as proof that the issuance fee and decal fee have been paid. Vehicle owners must apply for a decal within 10 days of converting a vehicle to operate on propane or natural gas, or a 20% penalty will be applied to the decal fee. Out-of-state alternative fuel vehicle operators that purchase propane within the state must pay the current Alabama motor fuel tax or they may elect to purchase the annual flat fee decal. The propane dealer or supplier must remit these funds to the LPG Board before the 20th of the month following the date of sale. Decal and road tax requirements for natural gas fuels are suspended until October 1, 2018.

• $0.08 per gasoline gallon equivalent (GGE) until September 30, 2023;
• $0.13 per GGE from October 1, 2023, until September 30, 2028; and
• $0.18 per GGE from October 1, 2028 and beyond.

• $0.08 per diesel gallon equivalent (DGE) until September 30, 2023;
• $0.13 per DGE from October 1, 2023, until September 30, 2028; and
• $0.18 per DGE from October 1, 2028 and beyond.

Plug-In Electric Vehicle (PEV) Charging Rate Incentive - Alabama Power

Alabama Power offers a Business Electric Vehicle Time-of-Use (BEVT) rate for electricity purchased to charge PEVs used for fleet purposes. The electricity used for vehicle charging is metered separately from all other electricity use. For more information, see the BEVT rate guidance. In addition, Alabama Power offers a Residential PEV rate for customers that can verify possession of a qualified PEV. For more information, see the Residential PEV rate guidance.

Public Utility Definition

An entity that owns, operates, leases, or controls electric vehicle supply equipment is not defined as a public utility. (Reference Alabama Public Service Commission Docket No. 32694)