North Carolina Natural Gas Laws and Incentives
State Incentives
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Grants
The Clean Fuel Advanced Technology (CFAT) project focuses on reducing transportation related emissions in North Carolina's non-attainment and maintenance counties for National Ambient Air Quality Standards. Projects that are adjacent to areas may also be eligible if emissions will be reduced in the eligible counties. The project is funded by the North Carolina Department of Transportation, State Energy Office, and the Division of Air Quality, and covers three broad areas: education and outreach; project funding; and recognition of exemplary activities. Although funding is not currently available, future financial support may be available for AFVs, fueling infrastructure, idle reduction technologies, heavy-duty HEVs, heavy-duty buses, and diesel retrofits.
Alternative Fuel and Idle Reduction Grants
Grants from the North Carolina Department of Environment and Natural Resources Division of Air Quality are available 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. More than $500,000 in funding is available.
Alternative Fuel and Alternative Fuel Vehicle (AFV) Fund
The North Carolina State Energy Office administers an energy credit banking program, which enables the state to generate funds from the sale of Energy Policy Act of 1992 (EPAct) credits. The monies generated by the sale of EPAct credits are deposited into the Alternative Fuel Revolving Fund (Fund), which enables state agencies to offset the incremental costs of purchasing alternative fuel, developing fueling infrastructure, and purchasing AFVs. 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 20% (B20), ethanol/gasoline blends consisting of at least 85% ethanol (E85), compressed natural gas, propane, and electricity, and includes hybrid electric vehicles. The Fund also covers additional projects approved by the Energy Policy Council. (Reference Senate Bill 457, 2009, and North Carolina General Statutes 143-58.4, 143-58.5, 143-341(8)i, and 136-28.13)
State Laws and Regulations
Alternative Fuel Vehicle (AFV) Acquisition Requirements
At least 75% of new or replacement light-duty cars and trucks (with a Gross Vehicle Weight Rating of 8,500 pounds or less) purchased by the State of North Carolina must be AFVs or low-emission vehicles. (Reference North Carolina General Statutes 143-215.107C)
Alternative Fuel Tax Exemption
The retail sale, use, storage or consumption of alternative fuels is exempt from the state retail sales and use tax. (Reference North Carolina General Statutes 105-164.13)
Utilities/Private Incentives
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Loans
State and local government credit unions offer green vehicle loans to purchase new AFVs, HEVs, and qualified fuel-efficient vehicles. The loans are offered at a 1% interest rate discount as compared to traditional new vehicle loan rates.
