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What are state and local governments doing to incentivize alternative fuels and alternative fuel vehicles (AFVs)?

There are many notable incentive activities at the state and local levels. Many states offer incentives for alternative fuels that advance specific environmental and energy security goals, while cities provide even more localized support.


States are targeting vehicles, infrastructure, and other means to encourage AFV adoption. Below are various types of incentives, as well as hyperlinked examples of each:

  • AFV Purchase Incentives: States offer grants, rebates, and tax credits for the purchase of AFVs. While some states may focus vehicle incentives on a particular fuel type, such as electric vehicles, others are more general in their support. States provide AFV purchase incentives to consumers, commercial fleets, and public fleets, such as schools and government agencies. Different incentive mechanisms tend to be more appropriate for different categories of vehicle purchasers; for example, grants are often limited to certain types of entities. Public fleets may not be liable for taxes, so they usually benefit more from grants than from tax credits. Private fleets can benefit from grants, rebates, and tax credits.
  • Fueling Infrastructure Purchase and Installation Incentives: Similar to AFV incentives, states provide grants,rebates, and tax credits for alternative fueling infrastructure. States usually create incentives for the physical fueling infrastructure, but many programs also support installation costs. Some states also offer a tax creditor tax reduction for the production or purchase of alternative fuel itself. Fueling infrastructure incentives may stipulate that the fueling or charging station must be available to the public, which helps to increase the availability of alternative fuels to a broader range of entities.
  • Other Incentives: In addition to financial support for the purchase of AFVs, states may give special benefits to AFV drivers. For example, some states allow high-occupancy vehicle lane access to AFVs, while others provide reduced registration fees, weight restriction exemptions, and emissions inspections exemptions.


Municipalities are also playing a role in supporting AFV deployment. Cities and counties incentivize AFVs in a number of ways, including by offering free or discounted parking, expediting permitting processes, and providing vehicle and infrastructure grants. For example, New Haven, CT, provides free parking on city streets for AFVs, while Los Angeles, CA, offers instant, online residential electric vehicle supply equipment permitting approval. The Alternative Fuels Data Center’s (AFDC) Local Laws and Incentives page provides more information on these and a greater array of other local options; while the page regarding local laws and incentives is not meant to be comprehensive, it provides users an idea of the different municipal programs and policies that exist (http://www.afdc.energy.gov/laws/local_examples). If you are aware of an innovative way that municipalities are supporting alternative fuels and vehicle acquisition, please contact the Clean Cities Technical Response Service attechnicalresponse@icf.com to share the details.


For more information about state and local alternative fuel incentives, see the AFDC Laws and Incentives page (http://www.afdc.energy.gov/laws).


Clean Cities Technical Response Service Team



How is the propane industry improving the customer fueling experience through new technology?

As propane vehicle technology becomes more advanced, propane dispensing infrastructure has evolved along with it. In particular, the propane industry is focusing much of its attention on enhancing the customer fueling experience by installing propane dispensers that are dedicated for vehicle fueling, and by upgrading the propane nozzle technology. The increasingly popular European-style, quick-connect nozzle simplifies the customer fueling experience by connecting to the fuel tank through a snap or quick-connect attachment, rather than a conventional threaded connection. Only after the nozzle is safely connected to the fuel tank will it begin to dispense fuel. This attachment eliminates the threading connection necessary with the conventional Acme nozzle, making propane fueling as easy as conventional gasoline fueling.

With the new nozzle, fueling can be completed using only one hand and without wearing protective goggles and gloves. The quick-connect attachment also results in lower emissions, as it more effectively prevents the release of fuel vapor and fumes. Additionally, the nozzle’s design minimizes the amount of fuel that escapes when the vehicle is done fueling and the connector is detached from the vehicle.

There are many affordable quick-connect nozzle options available on the United States market that meet UL 125 certification requirements (https://standardscatalog.ul.com/standards/en/standard_125). Manufacturers of these UL-certified nozzles include Stäubli and ELAFLEX. These European-style connectors are priced around $1,200, according to the National Renewable Energy Laboratory (https://cleancities.energy.gov/files/u/news_events/document/document_url/96/2015_strategic_planning_propane.pdf). The cost of the connection adapters, or fill valves, required for current fueling infrastructure to be compatible with the European-style nozzle, ranges from $50 to $60. Note that the installation of a new fueling nozzle should always be performed by a qualified technician in order to ensure that it is completed properly.

Many propane retailers are optimistic about the European-style, quick-connect nozzle. In fact, the Propane Education Research Council (PERC) highlights its benefits and encourages the use of this connector through its Quick-Connect Nozzle Incentive Program (http://www.propanecouncil.org/Our-Work/Our-Work-With-Marketers/Incentive-Programs/Quick-Connect-Nozzle-Incentive-Program/). Moving forward, the quick-connect nozzle is a significant step towards streamlining and improving the propane fueling experience.


For more information about propane and related fueling infrastructure, see the following resources:

LSCFA Helps Hold NFPA First Responder Alt Fuel Class

Feb. 1, 2017

LSCFA  recently partnered with West Virginia Clean Cities to hold one of numerous National Fire Preparedness Association (NFPA) taught First Responder alt fuel classes across the United States, 55 persons from as far away as Abilene registered for the Train the Trainer class on alt fuel vehicles held in Temple, Tx.   Taught by James Plaster and Justin Emory with the National Fire Protection Association, the day long class safety training class presented information on how to identify alt fuel vehicle types, fuel qualities, cylinder specs and safety features, how to identify the different alt fuel  vehicles according to  manufacturer, as well as  general procedures and  considerations for alt fuel vehicles crash response and  extrication .  As Hybrids, electric vehicles ad plug in vehicles are a large component of our on road traffic, emphasis was given to  extractions and crashes involving Hybrids and electric vehicles, damaged high voltage batteries,  the various types of batteries  found in these vehicles and how to identify.

The information and  manual provided vehicle specific information drawn from manufacturer Emergency Response guides, and guidance on initial response procedures and situations such as vehicle fire, submersion and spills.

A natural gas overview was provided by Dmitri Tisnoi –  TDIndustires, our   lunch sponsor. Demonstration vehicles included a Nissan LEAF from nearby BATES Nissan, dedicated LPG ½ ton trucks from CleanFuel USA and the City of Temple,  a CNG refuse truck from the City of Temple, and a bi-fuel CNG truck  provided by CNG4America.

Stacy Neef, Exec. Dir.
Lone Star Clean Fuels Alliance

Blue Bird Awarded $4.4 Million to Develop Electric School Bus

Find original article here.

WASHINGTON, DC (Jan 27, 2017) — In December of 2016, the Department of Energy announced that they would be awarding $15M to organizations in an effort to accelerate the adoption of advanced and alternative fuel vehicles. Blue Bird Corporation, a bus manufacturer located in Fort Valley, GA, was presented the largest amount at $4.4M in order to develop a zero-emissions, 100% V2G electric school bus.


“As the leader in alternative fuel bus solutions, the addition of an electric school bus rounds out our portfolio,” says Phil Horlock, President and CEO of Blue Bird Corporation. “Thanks to this award from the Department of Energy, we will be able to pursue the development of this technology based on our many years of research. As we celebrate our 90th anniversary in 2017, the timing of this grant is impeccable!”


One of the stipulations of the award is that the bus will be an affordable, ‘low cost’ electric bus solution. Additionally, Blue Bird is looking to implement technology, known as V2G, that will allow the bus to put electricity back into the grid – which may help bring much-needed funds to school districts. “This initiative will provide resources to explore alternative fuels for school transportation while sending energy back to the grid,” said Georgia Gov. Nathan Deal. “The development of a low-cost electric school bus is an investment that could save state resources in the long term. We are excited to see Blue Bird develop this new technology here in Georgia.”


“Blue Bird has a solid reputation and the company has been an asset to Georgia’s economy,” said U.S. Senator Johnny Isakson. “I applaud the decision by the Department of Energy and other entities to award this funding to a company that continues to make a positive impact.”


However, Blue Bird is not unfamiliar with this technology. “We were first to market with an electric school bus in 1994,” explained Dennis Whitaker, Vice President of Product Development for Blue Bird. “Since then, we have been closely monitoring this technology, and have found that recent battery management advances have made this project viable. We should see our first new Blue Bird electric school bus in 2019.”


As a zero-emissions vehicle, this electric bus will be able to take away thousands of pounds of particulate matter from the air, making a positive impact on the environment, and the children these buses transport. “I am thrilled that Blue Bird has been awarded this grant by the Department of Energy,” said U.S. Congressman Sanford Bishop, representative of Middle and Southwest Georgia. “Not only has Blue Bird contributed to the local community for over 90 years by providing jobs, but it has also produced a multitude of ‘green’ vehicles in recent years. I am excited to see they are now able to produce even more solutions that positively impact the environment and future generations of bus riders.”


According to Michael Simon, President and CEO of TransPower, this electric bus solution could also create additional jobs throughout the US. “Once these electric buses go into production, there is a huge potential for job growth,” said Simon. “Supplying electric drive components for say, 500 buses a year, would have the potential to create up to 250 new jobs in California.”


Kevin Matthews, Managing Director for National Strategies, whose firm developed the application and will serve as project manager, stated that; “This project will take us far down the road to deploying and operating a Zero Emission School Bus that is cost effective for school district across the United States. We thank DoE for this award, and applaud Blue Bird’s leadership in this arena.”


Combined with matching funding from other public and private entities in California, the total project funding will be over $9M and result in an eight bus demonstration fleet deployed in California by 2019.


About Blue Bird Corporation: Blue Bird (Nasdaq: BLBD) is the leading independent designer and manufacturer of school buses, with more than 550,000 buses sold since its formation in 1927 and approximately 180,000 buses in operation today. Blue Bird’s longevity and reputation in the school bus industry have made it an iconic American brand. Blue Bird distinguishes itself from its principal competitors by its singular focus on the design, engineering, manufacture and sale of school buses and related parts. As the only manufacturer of chassis and body production specifically designed for school bus applications, Blue Bird is recognized as an industry leader for school bus innovation, safety, product quality/reliability/durability, operating costs and drivability. In addition, Blue Bird is the market leader in alternative fuel applications with its propane-powered and compressed natural gas-powered school buses. Blue Bird manufactures school buses at two facilities in Fort Valley, Georgia. Its Micro Bird joint venture operates a manufacturing facility in Drummondville, Quebec, Canada. Service and after-market parts are distributed from Blue Bird’s parts distribution center located in Delaware, Ohio. For more information on Blue Bird’s complete line of buses, visit www.blue-bird.com.

Energy Department Invests Millions to Speed Alt-Fuel Development

The U.S. Department of Energy (DOE) has announced $18 million in support of five projects for research, development and demonstration of new plug-in electric vehicle (PEV) and direct-injection propane engine technologies, as well as community-based projects to accelerate the adoption of light-, medium- and heavy-duty vehicles that operate on fuels such as biodiesel, electricity, E85, hydrogen, natural gas and propane.

Public investment in advanced, energy-efficient transportation technologies and systems will improve the nation’s energy security, support energy independence, reduce transportation emissions and strengthen U.S. economic competiveness.

According to the DOE, the following selected projects will accelerate the development and adoption of alternative fuel technologies and support pioneering deployments of market-ready vehicles and alternative fuels.

Odyne Systems LLC (Pewaukee, Wis.) will receive $2.9 million to develop and demonstrate plug-in hybrid work trucks (Class 7) that reduce fuel consumption by more than 50% and eliminate fuel consumption during stationary operations.

Blue Bird Body Co. (Fort Valley, Ga.) will receive $4.9 million to develop and demonstrate a battery-powered electric school bus that improves propulsion energy efficiency by 20%-30% and that can connect to the electric grid (vehicle-to-grid).

Blossman Services (Swannanoa, N.C.) will receive $2 million to develop a 4.3L propane direct injection engine and emission control system that will be demonstrated on a package delivery vehicle. Direct injection engine technology offers improved performance and saves fuel.

PacifiCorp (Portland, Ore.) will receive $3.9 million to accelerate PEV adoption by developing electric highway corridors along I-15, I-80, I-70, and I-84 in the states of Utah, Idaho and Wyoming.

Gas Technology Institute (Des Plaines, Ill.) will receive $4.9 million to deploy multi-fuel stations (including electric vehicle charging stations, compressed natural gas, biofuels and propane stations) and alternative fuel vehicles (including electric drive) along I-94 from Port Huron, Mich., to the North Dakota border.

Ford Details New Electrified Vehicles, Expands EV Plant

by NGT News 

Ford has confirmed seven of the 13 new electrified vehicles (EVs) it plans to introduce in the next five years, including hybrid versions of the F-150 pickup and Mustang in the U.S.; a plug-in hybrid Transit Custom van in Europe; and a fully electric SUV with an expected range of at least 300 miles for customers globally.

The automaker also announced that it is canceling plans for a new $1.6 billion plant in San Luis Potosi, Mexico, and is investing $700 million in the expansion of the Flat Rock, Mich., plant instead. The Flat Rock Assembly Plant will build high-tech autonomous vehicles and EVs, along with the Mustang and Lincoln Continental. As reported, the expansion will create 700 direct new jobs.

These efforts are part of a $4.5 billion investment in EVs by 2020, offering customers greater fuel efficiency and power across Ford’s global vehicle lineup.

“As more and more consumers around the world become interested in electrified vehicles, Ford is committed to being a leader in providing consumers with a broad range of electrified vehicles, services and solutions that make people’s lives better,” says Mark Fields, Ford president and CEO. “Our investments and expanding lineup reflect our view that global offerings of electrified vehicles will exceed gasoline-powered vehicles within the next 15 years.”

Ford says it is focusing its EV plan on its strengths – electrifying its most popular, high-volume commercial vehicles, trucks, SUVs and performance vehicles to make them “even more capable, productive and fun to drive.”

In an announcement released today, Ford says that seven of the 13 new EVs to be introduced in the coming years would include the following:

  • An all-new fully electric small SUV, coming by 2020, engineered to deliver an estimated range of at least 300 miles, to be built at the Flat Rock plant and sold in North America, Europe and Asia;
  • A high-volume autonomous vehicle designed for commercial ride hailing or ride sharing, starting in North America. The hybrid vehicle will debut in 2021 and will be built at the Flat Rock plant;
  • A hybrid version of the F-150 pickup available by 2020 and sold in North America and the Middle East. The F-150 Hybrid, built at Ford’s Dearborn Truck Plant, will offer powerful towing and payload capacity and operate as a mobile generator;
  • A hybrid version of the Mustang that will deliver V8 power and even more low-end torque. The Mustang Hybrid, built at the Flat Rock Plant, debuts in 2020 and will be available in North America to start;
  • A Transit Custom plug-in hybrid available in 2019 in Europe engineered to help reduce operating costs in even the most congested streets; and
  • Two new, pursuit-rated hybrid police vehicles, one of which will be built in Chicago, and both will be upfitted with their police gear at Ford’s dedicated police vehicle modification center in Chicago.

In addition, Ford has announced that its global utility lineup will be the company’s first hybrids powered by EcoBoost rather than naturally aspirated engines, improving performance and fuel economy.

The company also plans to be as aggressive in developing global EV services and solutions. These include EV fleet management, route planning and telematics solutions.

“Innovative services can be as important to customers as the electrified vehicles themselves,” says Hau Thai-Tang, group vice president of purchasing. “We are investing in solutions to help private customers, as well as commercial fleet owners, seamlessly incorporate these new vehicles and technologies into their lives.”

In addition, in New York and several major U.S. cities, Ford is testing a fleet of 20 Transit Connect hybrid taxi and van prototypes in demanding traffic conditions.

These Transit Connects build on the success of the Ford Escape Hybrid – which the company says was the world’s first hybrid SUV and the first North American-built hybrid. Many Escape Hybrid taxis are still on the road, moving passengers for more than 350,000 miles each and still using their original batteries.

For the full release, click here.