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State and Federal Incentives and Laws

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Alabama

Alternative Fuels Promotion and Information

The Center for Alternative Fuels (Center) was established within the Alabama Department of Agriculture and Industries to promote alternative fuels as a viable energy source in the state. The Center has been tasked with assessing the current status and development of sources of alternative fuels, ensuring that all alternative fuels sold in the state meet ASTM standards, and acting as an information center for alternative fuels and a clearinghouse for available federal grant funding for alternative fuel development. The Center has also been designated to administer a grant program funded by an income tax check-off program through the Alabama Alternative Fuels and Research Development Fund. (Reference Code of Alabama 2-2-90 and 2-2-91)

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)

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)

Alternative Fuel Tax

The state road tax for vehicles that operate on liquefied petroleum gas (LPG) and 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 as directed by the LPG Board as proof that the flat fee has been paid. The issuance fee is $5 plus the decal fee. Owners of vehicles that are converted to operate on LPG or natural gas must apply for a decal within 10 days of conversion 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)

Point of Contact

Marilyn Franklin/Barnie Gilliland
License and Fees Secretary
Liquefied Petroleum Gas Board
Phone (334) 242-5649
Fax (334) 240-3255
marilyn.franklin@lpgb.alabama.gov