Alabama

Biofuels for Schools Grants

The Alabama Department of Economic and Community Affairs - Energy, Weatherization and Technology (ADECA-EWT) Division developed the Alabama Biofuels for Schools Grant Program (PDF 55 KB) to increase the availability and use of biodiesel blends in school buses in the state. Download Adobe Reader. Grants are available to cover up to $2,500 of the cost of cleaning existing fuel tanks in preparation for storing B20. Successful applicants will be required to provide B20 for a minimum of three years. Grantees will also be required to provide information to ADECA-EWT on the number of gallons of B20 dispensed and used to fuel school buses during this time period.

Point of Contact

Kathy Hornsby
Program Manager
Alabama State Energy Office, Alabama Department of Economic and Community Affairs
Phone (334) 242-5284
Fax (334) 242-0552
kathy.hornsby@adeca.alabama.gov

Biofuel Production Facility Tax Credit

Companies that invest in the development of a biofuel production facility may be eligible for a tax credit against the state income tax or financial institution excise tax liability generated by the project each year for up to 20 years in the amount equal to 5% of the capital costs of the project. For the purposes of the credit, biofuel is defined as a motor vehicle fuel that is produced from grain, starch, oilseeds, vegetable, algae, animal, or fish materials including fats, greases and oils, sugarcane, sugar beets, sugar components, tobacco, potatoes, and lignocellulosic or other biomass. In order to be eligible for the tax credit, the capital costs of the production facility must be at least $2,000,000 if the facility is not located in a favored geographic area, and $500,000 if the facility is located in a favored geographic area. A favored geographic area is defined as an area or county that is designated as an enterprise zone or is considered to be less developed by the Alabama Department of Industrial Relations. (Reference House Bill 568, 2009)

Fuel-Efficient Green Fleets Policy

The Alabama Green Fleets Policy (Policy) will be developed to outline a procedure for procuring state vehicles based on criteria that include fuel economy and life cycle costing. State fleet managers will be required to 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 utilizing specified proven technology identified by the Green Fleet Review Committee. (Reference House Bill 185, 2009)

Biodiesel Use in School Buses and Government Vehicles

The Alabama Legislature encourages the use of biodiesel blends in the state. Public school systems are urged to use B20 in all diesel-powered school buses and state entities are encouraged to use biodiesel blends of at least B5 in diesel-powered motor vehicles. (Reference Senate Joint Resolution 14 and 15, 2009)

Interagency Alternative Fuels Working Group

The Alabama Legislature urges the Alabama Department of Finance to invite all state agencies, commissions, boards, counties, and municipalities to join an interagency Alternative Fuels Working Group to promote education, research and development, production, and consumption of alternative fuels. (Reference Senate Joint Resolution 16, 2009)