Alabama Laws and Incentives for Fleet Purchaser/Manager

The list below contains summaries of all Alabama laws and incentives related to Fleet Purchaser/Manager.

State Incentives

Biodiesel Fuel Storage Grants

The Alabama Biodiesel Incentive Program, administered by the Alabama Department of Economic and Community Affairs (ADECA) Energy Division, provides grants of up to $2,500 to cover the cost of cleaning existing fuel tanks in preparation for storing biodiesel blends of at least 20% (B20) for use in public school, state college and university, and local government fleets. Successful applicants must provide B20 for a minimum of three years. Grantees must also provide information to ADECA Energy Division about the number of gallons of B20 dispensed and used to fuel fleet vehicles during this time period.

Idle Reduction Weight Exemption

Any motor vehicle equipped with an auxiliary power unit (APU) or other idle reduction technology may exceed the gross, axle, tandem, or bridge formula weight limits by up to 400 pounds. To be eligible for the weight exemption, the vehicle operator must be able to provide written proof or certification of the weight of the APU and demonstrate or certify that the idle reduction technology is fully functional at all times. (Reference Code of Alabama 32-9-20)

Utility/Private Incentives

Plug-in Electric Vehicle (PEV) Charging Rate Incentive - Alabama Power

Alabama Power offers a Business Electric Vehicle Time-of-Use (BEVT) rate for electricity purchased to charge PEVs used for non-residential purposes. The electricity used for vehicle charging is metered separately from all other electricity use. In addition, Alabama Power offers a Residential PEV rate for customers that can verify possession of a qualified PEV.

Laws and Regulations

Alternative Fuel Tax

The state road tax for vehicles that operate on propane (liquefied petroleum gas, or LPG) 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 propane 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 issuance fee and decal fee have been paid. Vehicle owners must apply for a decal within 10 days of converting a vehicle to operate on propane or natural gas or a 20% penalty will be applied to the decal fee. Out-of-state alternative fuel vehicle operators that purchase propane or natural gas within the state must pay the current Alabama motor fuel tax. The propane 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)

Fuel-Efficient Green Fleets Policy

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-1 through 41-17A-6)