A portal website bringing together vital information about natural gas and natural gas vehicles.
North Carolina Policy Data
North Carolina has several alternative fuel grants and incentives available, though funding for these programs has been limited or not available. The state administers a Alternative Fuel Revolving Fund (Fund) for state agencies to offset the incremental costs of either building infrastructure or purchasing AFVs.
The state requires of its fleets that 75% of all new vehicles operate on alternative fuels.
How Motor Fuel Tax Rates are Calculated in NC - Reference
Alternative fuels are exempt from Retail Sales and Use taxes, but not the State excise tax.
IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.
Alternative Fuel and Idle Reduction Grants
Diesel Emission Reduction Grants are available from the North Carolina Department of Environment and Natural Resources Division of Air Quality for the incremental cost of purchasing original equipment manufacturer alternative fuel vehicles, vehicle conversions, implementing idle reduction programs, and constructing or installing public alternative fueling facilities. As of September 2011, funding availability for the 2012 grant cycle is unknown.
Point of Contact Anne Galamb Environmental Specialist North Carolina Department of Environment and Natural Resources Phone: (919) 707-8423 Fax: (919) 707-8423 firstname.lastname@example.org
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Support
The Clean Fuel Advanced Technology project focuses on reducing transportation related emissions in non-attainment and maintenance counties for National Ambient Air Quality Standards. Projects that are adjacent to areas may also be eligible 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. As of September 2011, funding is not available. Future financial support is anticipated to be available in 2013 for AFVs, fueling infrastructure, idle reduction technologies, heavy-duty HEVs, heavy-duty buses, and diesel retrofits.
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 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, the definition of alternative fuel includes 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(8)i, and 136-28.13)
The North Carolina State Energy Office, Department of Administration, Department of Public Instruction, and Department of Transportation must establish an interagency task force to study the feasibility of increased alternative fuel use in state vehicles. The task force will:
Perform a cost-benefit analysis on each alternative fuel to identify the fuel or fuel mix that would be the most cost-effective for each type of vehicle used by each agency;
Evaluate the cost of alternative fuel vehicles (AFVs), including the purchase price, operation and maintenance costs, and associated fueling infrastructure costs;
Identify opportunities for the use of existing commercial or public fueling infrastructure for alternative fueling and explore opportunities to leverage state funds with other public or private funds to develop new fueling infrastructure; and
Make recommendations on which fuel or fuel mix and types of AFVs would be appropriate for each agency.
The task force must report results of the study and any recommendations to the Joint Legislative Commission on Energy Policy before December 1, 2012. (Reference House Bill 177, 2012)
Alternative Fuel Vehicle (AFV) Acquisition Requirements
At least 75% of new or replacement state government light-duty cars and trucks with a gross vehicle weight rating of 8,500 pounds or less must be AFVs or low emission vehicles. (Reference North Carolina General Statutes 143-215.107C)
Alternative Fuel Use and Fuel-Efficient Vehicle Requirements
State-owned vehicle fleets must implement petroleum displacement plans to increase the use of alternative fuels and fuel-efficient vehicles. Reductions may be met by petroleum displaced through the use of biodiesel, ethanol, other alternative fuels, the use of hybrid electric vehicles, other fuel-efficient or low-emission vehicles, or additional methods the North Carolina Division of Energy, Mineral and Land Resources approves. (Reference Session Law 2013-265, Section 19.5(a))
Alternative Fuels Tax
Beginning January 1, 2015, the state motor fuel tax on liquefied natural gas is imposed based on the diesel gallon equivalent and the tax on compressed natural gas is based on the gasoline gallon equivalent. The North Carolina Department of Revenue will determine the equivalent rate for all other non-liquid alternative fuels. Certain exclusions apply. (Reference Reference - SB786 Bill History, and North Carolina General Statutes 105-449.136)
Creates an incentive for AF infrastructure including CNG, LNG, and LPG stations. Credits are limited to commercial or business stations and worth 25% of the cost of equipment and modifications. Must take credit in three installments. Also provides tax credit for purchasing new AFV or converting existing vehicle; includes dedicated and bi-fuel vehicles. Credits are worth 50% of the incremental cost or cost of conversion, subject to following caps: $8,000 for dedicated AFVs less than 26,000 lbs.; $6,000 for bi-fuel AFVs less than 26,000 lbs.; and $12,000 for heavy-duty vehicles 26,000 lbs. and up (90% AF required). Provides 2,000 lb. weight exemption for NGVs. Status: to the Cmte on Regulatory Reform. Reference - HB750 Bill History, Reference - HB750 Bill Text Status: Substitute version 9/23/15 includes provisions relating to excise tax refunds. Current practice is to exclude certain fuel use like off-road use from the excise tax and to provide a refund less any applicable sales and use taxes. The bill would include alternative fuels in the provision that requires that the refunds subtract any sales and use taxes owed.
Substitute version 9/23/15 includes provisions relating to excise tax refunds. Current practice is to exclude certain fuel use like off-road use from the excise tax and to provide a refund less any applicable sales and use taxes. The bill would include alternative fuels in the provision that requires that the refunds subtract any sales and use taxes owed. Reference - SB605 Bill History, Reference - SB605 Bill Text