A portal website bringing together vital information about natural gas and natural gas vehicles.
Alabama Policy Data
Summary
Alabama has an annual flat fee decal requirement for natural gas vehicles. Cost is based on weight.
Alabama instituted a Green Fleets Policy that mandates a percentage of the state vehicle fleet be purchased or converted to fuel efficient vehicles, including AFVs.
The State has also established an Alternative Fuels Working Group and a Center for Alternative Fuels that is currently administering a loan program.
IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.
Incentives
Alternative Fuel and Idle Reduction Revolving Loan Program for Private Entities
The Alabama Department of Economic and Community Affairs (ADECA) provides low-interest rate energy efficiency loans 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 more information, including loan terms, see the AlabamaSAVES website.
Point of Contact Liz Cochran Program Manager Alabama Department of Economic and Community Affairs Phone: (334) 353-4380 Fax: (334) 242-0552 liz.cochran@adeca.alabama.gov
lternative Fuel and Idle Reduction Revolving Loan Program for Public Entities
The Alabama Department of Economic and Community Affairs provides 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, and the loan may cover incremental and conversion costs. Local governments and public colleges and universities can borrow up to $350,000; 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. The program is not currently accepting applications (verified August 2016).
Point of Contact Liz Cochran Program Manager Alabama Department of Economic and Community Affairs Phone: (334) 353-4380 Fax: (334) 242-0552 liz.cochran@adeca.alabama.gov
The state road tax for vehicles that operate on liquefied petroleum gas (LPG or propane) or natural gas 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 LPG or natural gas must obtain an annual decal from the Alabama LPG Board. The decal must be affixed to the vehicle according to LPG Board specification as proof that the flat fee has been paid. The issuance fee is $5 plus the decal fee. Vehicle owners must apply for a decal within 10 days of converting a vehicle to operate on LPG or natural gas or a 20% penalty will be applied to the decal fee. Out-of-state alternative fuel vehicle operators that purchase LPG or natural gas within the state must pay the current Alabama motor fuel tax. The LPG or natural gas dealer or supplier must remit these funds to the LPG Board before the 20th of the month following the date of sale. (Reference Code of Alabama 40-17-160 through 40-17-165)
The Alabama Legislature will establish a Green Fleets Policy (Policy) outlining a procedure for procuring state vehicles based on criteria that includes fuel economy and lifecycle 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. The Policy will also require that government entities manage and operate their fleets in a manner that is energy efficient, minimizes emissions, and reduces petroleum dependency by using specified proven technology the Green Fleet Review Committee identifies. (Reference Code of Alabama 41-17A)
Alternative Fuels Promotion and Information
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. (Reference Code of Alabama 2-2-90 and 2-2-91)
Proposed Bills
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2016 Session - Proposed Legislation
HB-23A
Extends the moratorium on the decal tax on natural gas until May 1, 2017; currently the moratorium expires October 1, 2016; specifies that unless other action is taken the tax on CNG shall be per GGE of 5.66 lb. and tax on LNG per DGE of 6.06 pound but also defers to NCWM standard so LNG DGE should be 6.059 lb.Reference - HB23A Bill History, Reference - HB23A Bill Text Status: 1st Special Session, passed House 8/17/16; passed Senate 8/23/16; approved by governor 9/6/16, 2016 AL Act 468.
HB-513
Companion to SB 338. Authorizes a 2,000 pound weight allowance for vehicle primarily powered by CNG or LNG. Requires proof the vehicle is powered by an engineered that is certified or approved by EPA to operate primarily on natural gas and that vehicle operates on natural gas. Reference - HB513 Bill History, Reference - HB513 Bill Text Status: reported favorably by Committee on Public Safety and Homeland Security 4/13/16; House Rule 329 introduced 4/21/16 establishes special order calendar and includes HB 513; indefinitely postponed 4/28/16.
HB-560
Bill proposes constitutional amendment to provide for increase in tax rate similar to HB 394 but calls for increase of 6 cents starting on October 1. Like HB 394 also calls for increased registration fees for alternative fuel vehicles. Reference - HB560 Bill History, Reference - HB560 Bill Text Status: 4/19/16 to Committee on Transportation, Utilities, and Infrastructure.
SB-338
Authorizes a 2,000 pound weight allowance for vehicle primarily powered by CNG or LNG. Requires proof the vehicle is powered by an engineered that is certified or approved by EPA to operate primarily on natural gas and that vehicle operates on natural gas. Reference - SB338 Bill History, Reference - SB338 Bill Text Status: Transportation and Energy Committee reported favorably with substitute 3/22/16; indefinitely postponed 4/28/16.
2015 Session - Proposed Legislation
No AFV legislation was proposed in 2015
2014 Session - Proposed Legislation
HB-11
Amends the states LP Gas statute. Provisions also require decal for instate NGVs and impose excise tax on out of state users; language does not change the decals or out of state tax but sections are included so might provide opportunity to amend state tax of natural gas.Reference - HB11 Bill History, Reference - HB11 Bill Text Enacted 3/11/2014
HB-552
Removes CNG and LNG from the decal tax. Provides that if there is no agreement on the form of taxing CNG and LNG at retail before such time then beginning Oct. 1, 2016 CNG shall be taxed per GGE and LNG per DGE. Also provides that CNG shall be sold in GGE units and LNG in DGE units. Becomes effective immediately upon passage. So there is essentially no tax in 2015 and most of 2016. Reference - HB552 Bill History, Reference - HB552 Bill Text Enacted 4/9/2014; Act No. 2014-408
SB-29
Amends the states LP Gas statute. Provisions also require decal for instate NGVs and impose excise tax on out of state users; language does not change the decals or out of state tax but sections are included so might provide opportunity to amend state tax of natural gas.Reference - SB29 Bill History, Reference - SB29 Bill Text Prefiled - likely for 2014 session
SB-237
Amends the LP Gas tax by removing coverage for LNG. LNG would be subject to the excise tax imposed on diesel fuel and would be administered based on energy equivalent of diesel fuel. It provides that the DGE shall be that adopted by NCWM or 6.06 lbs. of LNG if NCWM has not adopted DGE standard. Bill does not address CNG.Reference - SB237 Bill History, Reference - SB237 Bill Text Indefinitely postponed 4/1/2014
2013 Session - Proposed Legislation
SB-58
Provides tax credits worth 75% of the cost of purchasing a new CNG vehicle or cost of converting a vehicle to operate on CNG. Credits shall be available for 2012 - 2017.Reference - SB-58 Bill History, Reference - SB-58 Bill Text Pending: Senate Finance and Taxation Education Committee
SB-59
Provides tax credit on the sales tax paid on qualifying hybrid electric vehicles up to $2,000 per vehicle, and limited to 10 vehicles per company for businesses.Reference - SB-59 Bill History, Reference - SB-59 Bill Text Pending: Senate Finance and Taxation Education Committee
HB-243
Provides tax credit worth 30% of incremental cost of purchasing an NGV or propane powered vehicle, or up to 30% of the cost of converting a vehicle. Credits available for tax years 2012 - 2017. Credits limited to the first 500 of each category (e.g., 500 OEM NGVs, 500 NG conversions).Reference - HB243 Bill History, Reference - HB243 Bill Text Pending: House Ways and Means Education Committee
Provides tax credit worth 100% of the cost or no more than $1,500 for new natural, propane, electric or hybrid vehicles; both CNG and LNG are mentioned. Must register with state to receive tax credit and there is a limit of 5,000 credits. Provides 30% tax credit for fueling equipment subject to following caps: CNG and LNG - $5,000, propane -$2,000, electric - $500. Credits expire within five years after passage or sooner in case of vehicles if 5,000 limit is achieved. Applies to vehicles acquired on or after Oct. 1, 2013. Station credit may take effect 2 months after signing of law. Like HB 375 also establishes HOV lane authority and exemptions. Provide civic and criminal liability exemption for fueling stations built in conformity with codes. Reference - HB322 Bill History, Reference - HB322 Bill Text Pending: House Ways and Means Education Committee
HB-375
Alabama Alternative Fuel Policy Act of 2013. Includes changes to biofuel and electric vehicles. Provides civil and criminal liability exemption for alternative fuel infrastructure - CNG and LNG included - so long as such stations are built in conformity with existing codes. Enacts HOV authority and provides AFV exemptions in line with federal HOV exemption. Tax credits are provided for CNG and LNG dedicated and bi-fuel vehicles (and other AFVs); credits are worth $1,500 CNG and LNG vehicle. Annual caps are 1,000 (i.e., 1,000 CNG, 1,000 LNG vehicles). Dealerships apply for tax credit certificates and provide to customers. Fueling station credits worth 30% of the cost of fueling equipment cost, or no more than $5,000 for CNG and LNG stations. Tax credits take effect Jan. 1, 2014; credits available for 5 years so they expire at end of 2018. Reference - HB375 Bill History, Reference - HB375 Bill Text Pending: House Ways and Means General Fund Committee
HB-551
Amends Sections 23-1-50.1 and 41-17A-6 of the Code of Alabama 1975, to allow the Department of Transportation Office of Fleet Management to review state department and agency green fleets plans; develops a statewide fleet management program; repeals Chapter 17, Title 41 of the Code of Alabama 1975, relates to the purchase, lease, operation, and maintenance of state motor vehicles. Reference - HB551 Bill History, Reference - HB551 Bill Text Passed House 4/26/2013; died in chamber
SB-57
Amends the state fleet management rules in ways that do not appear to alter existing requirements but rather who carries out these responsibilities. Reference - SB57 Bill History, Reference - SB57 Bill Text Action: 2013-05-20 - Delivered to Governor at 10:46 a.m. on May 20, 2013
SB-58
Provides tax credits worth 75% of the cost of purchasing a new CNG vehicle or cost of converting a vehicle to operate on CNG. Credits shall be available for 2012 - 2017. Reference - SB58 Bill History, Reference - SB58 Bill Text Pending: Senate Finance and Taxation Education Committee
SB-59
Provides tax credit on the sales tax paid on qualifying hybrid electric vehicles up to $2,000 per vehicle, and limited to 10 vehicles per company for businesses. Reference - SB59 Bill History, Reference - SB59 Bill Text Pending: Senate Finance and Taxation Education Committee
SB-294
Companion to AL HB 322. But it also establishes HOV lane authority and exemptions. Provide civic and criminal liability exemption for fueling stations built in conformity with codes. Reference - SB294 Bill History, Reference - SB294 Bill Text Pending: Senate Energy and Natural Resources Committee[printfriendly]
This state was last examined and updated in October, 2016.