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Funding Opportunities

The folowing list of resources, grants, funding, and incentives provide financial assistance to support alternative fuel and advanced transportation technology in North Carolina.  Individuals, private businesses, and public entities should utilize these opportunities to reduce our dependence on petroleum and improve our air quality.

Clean Fuel Advanced Technology (CFAT) Funding

DSIRE Incentives Database

FTA Alternative Transportation in Parks and Public Lands Program
Incentives for Alternative Fuel and Advanced Technology Vehicles
Incentives to Distribute Alternative Fuels
Incentives to Produce Alternative Fuels

Mobile Source Emissions Reduction Grant
North Carolina Green Business Fund
Southeast Diesel Collaborative - EPA Diesel Program

State Energy Program (SEP) Special Projects

US DOE listing of Incentives and Laws Concerning Alternative Fuels


Clean Fuel Advanced Technology (CFAT) Funding


Approximately $1.5 million in funding will be available through the NC Solar Center for a program supported by the NC Department of Transportation, NC Division of Air Quality and the State Energy Office. Awards will be provided for a portion of the incremental costs of alternative fuel vehicles, refueling infrastructure and other projects that reduce mobile emissions in national ambient air quality non-attainment and maintenance counties in NC.


If you have questions regarding the 2008 CFAT RFP, please join us for a Q&A Conference Call.  Calls are scheduled for:

  • February 13th from 1:00-3:00pm
  • March 13th from 10:00am-12:00pm
Contact Tyler Burgess at tyler_burgess@ncsu.edu for further information.

CFAT Program 2008 Overview


CFAT Program 2008 Request For Proposals


CFAT Prorgam 2008 Funding Application



DOE/FTA Alternative Transportation in Parks and Public Lands Program

This $23 million grant program funds capital and planning expenses for alternative transportation systems in parks and public lands.This program is administered by the DOE/Federal Transit Administration in partnership with the Department of the Interior and the U.S. Department of Agriculture’s Forest Service. The purpose of the program is to enhance the protection of national parks and Federal lands, and increase the enjoyment of those visiting them.

Individual awards may not exceed $6 million. There are no cost sharing or matching requirements. Proposals must be submitted by February 29, 2008.

Click here for more details, and to download an application.


DSIRE Incentives Database


The Database of State Incentives for Renewables and Efficiency (DSIRE) is a free, comprehensive, user-friendly source of information on state, local, utility and selected federal incentives that promote renewable energy and energy efficiency. With a single click of the mouse, DSIRE provides users with a list of renewable-energy incentives and energy-efficiency incentives available in any U.S. state. Visit the North Carolina incentives section.


Incentives for Alternative Fuel and Advanced Technology Vehicles


The Federal Tax Credits for Purchase of Hybrids is available from 2006-2010 for hybrid electric vehicles and vehicles with cleaner burning diesel engines (advanced lean-burn engines). Consumers can earn a tax credit of up to $3,400 for light duty vehicles (under 8,500 lbs) if they are one of the first 60,000 sold by that particular automaker after which the credit is reduced and phased out. Recently the IRS published a guide for manufacturers to certify eligible hybrid vehicles (see the Tax Incentives Assistance Project or American Council for an Energy-Efficient Economy sites for further info) and the Diesel Technology Forum has information for the advanced lean-burn technology.


Also, the Alternative Fuel Vehicle Tax Credits, available from 2006-2010, provide a 50% tax credit based on the incremental cost of a new, dedicated alternative fuel vehicle, plus an additional 30 percent if the vehicle meets certain tighter emission standards. The amount of the credit is limited ranging from $2,500 to $32,000 depending on the size of the vehicle.


Complete details and information on these incentives can be found on the Alternative Fuel and Advanced Technology Vehicle Consumer Incentive Fact Sheet.

Incentives to Distribute Alternative Fuels


The Biodiesel Blenders Tax Credit available from 2005-2008 provides a $1.00 per gallon tax credit for “agri-biodiesel” (first use vegetable oils and animal fats - including palm and fish oil) and a $.50 per gallon tax credit for biodiesel produced from recycled oils and animal fats is available for biodiesel blended with petroleum diesel. A tax refund of 51 cents per gallon on each gallon of ethanol blended with gasoline to be paid within 20-28 days of blending gasoline with ethanol is established with the Volumetric Ethanol Excise Tax Credit (VEETC) available from 2005-2010.


The 2005 Energy Bill included a Refueling Infrastructure Tax Credit of 30% (up to $30,000 – increased to $50,000 by the 2005 Transportation Bill) for refueling equipment for E85 ethanol, compressed natural gas, liquefied petroleum gas, hydrogen, and biodiesel blends containing at least 20 percent biodiesel. A tax credit is available for facilities that dispense biodiesel and ethanol/gasoline mixtures consisting of at least 70% ethanol is available under the NC Tax Credit for Alternative Fuel Refueling Infrastructure.


In addition, the NC Alternative Fuel Tax Exemption states that the retail sale, use, storage or consumption of alternative fuels is exempt from the state's sales and use tax which is applied to conventional off road fuel sales and is 7% of the sales price. Also the North CarolinaSoybean Producers Association has established the Biodiesel Distributor Rebate Program for new dealers and distributors are eligible for a rebate on the first 250 of 500 gallons of soy biodiesel (B100) purchased as well as 1/2 of the cost of equipment with a maximum of $2,500 per soy biodiesel dealer under the Biodiesel Equipment Enhancement Rebate.


Complete details and information on these incentives can be found on the Alternative Fuel Distributor Incentive Fact Sheet.

Incentives to Produce Alternative Fuels


Alternative fuel producers have the opportunity to utilize the Renewable Energy Property Tax Credit of 35% up to $250,000 for the construction, purchase, or lease of a renewable energy property. A 25% tax credit is available to producers that construct and place in service a commercial facility for processing renewable fuel under the 2004 NC House Bill 1636, Tax Credit for Alternative Fuel Production Facilities. In addition, there are Commodity Corporation Credits for the production of ethanol and biodiesel.

The expanded production of alternative fuels will be supported by the renewable fuel standard (RFS) that requires transportation fuel sold in the United States to contain a total of 4 billion gallons of biofuels in 2006, increasing to 7.5 billion gallons in 2012, and the phase out in the use of MTBE for Gasoline as outlined in NC House Bill 1336.


Complete details and information on these incentives can be found on the Alternative Fuel Production Incentive Fact Sheet.

Mobile Source Emission Reduction Grants


Annual solicitations are accepted for NC Department of Environment and Natural Resources' Division of Air Quality's Mobile Source Emissions Reduction Grant.


The purpose of the Mobile Source Emissions Reduction Grants is to achieve actual reductions from on- and off- road mobile source related emissions in North Carolina and to assist the State in maintaining the National Air Quality Standards for primarily ozone and carbon monoxide.


Annual application period is Oct 1-Dec 31. Awards are announced in March of the following year.


More information and application available at DENR's DAQ website.

North Carolina Green Business Fund

The North Carolina Green Business Fund is a grant award program authorized by the N.C. General Assembly during the 2006-2007 legislative session.  Under this program, grant awards may be made to North Carolina organizations in support of competitively assessed projects focused on the following three priority areas:

1) Development of the biofuels industry in the State.  Grants made in this category may target projects that maximize the development, production, distribution, retail infrastructure, and consumer purchase of biofuels and workforce development in these areas.

2) Development of the green building industry in the State, and

3) Attraction and leverage of private sector investments and entrepreneurial growth in environmentally conscious clean technology and renewable energy products and businesses.

Proposals are due April 30, 2008. 


Southeast Diesel Collaborative - EPA Diesel Program

  In conjunction with the Southeast Diesel Collaborative, the U.S.
  Environmental Protection Agency (EPA) is announcing the availability
  of funding assistance for projects to reduce diesel emissions from
  diesel powered vehicles in EPA Region 4 states of Alabama, Florida,
  Georgia, Kentucky, Mississippi, North Carolina, South Carolina and/or
  Tennessee.  This includes both on-road and off-road applications.
  Proposals need to describe projects which will demonstrate effective
  emission control technologies and strategies or methods or approaches
  to reducing diesel emissions as part of the Southeast Diesel
  Collaborative. 

  The total estimated funding for this competitive opportunity is
  approximately $3.6 million. EPA Region 4 anticipates awarding 5-10
  assistance agreements ranging from $250,000 to $750,000 in Federal
  funding, subject to the availability of funds and quality of proposals
  received. However, EPA Region 4 reserves the option to fund a project
  at an amount lower than $250,000 if the proposed project involves
  retrofitting or upgrading an applicant's entire fleet.

  Projects may include, but are not limited to, a variety of diesel
  emissions reductions solutions such as retrofit technology, idle
  reduction technology or strategies, vehicle replacement, engine
  replacement (repowers) and engine upgrades, or use of cleaner burning
  fuel. The closing date and time for receipt of proposals is 5:00 PM
  (Eastern) on June 12, 2008.  Proposals should be submitted via
  www.grants.gov and must be received by this date and time.  The
  solicitation request can be found at:
  http://www.epa.gov/region4/air/mobile/SEDC-RFP%20FY0809.pdf

State Energy Program (SEP) Special Projects


Provides funding for AFVs, AFV refueling infrastructure, anti-idling and other transportation related projects. For more information about the program and past recipients of the grants visit DOE's State Enegy Program's website. Those interested in applying for these grants should contact the Clean Transportation Program at the North Carolina Solar Center or contact your local Clean Cities Program, of which North Carolina has the Triangle Clean Cities Coalition, the Centralina (Charlotte Area) Clean Fuels Coalition, and the Land of Sky Clean Vehicles Coalition.

US DOE listing of Incentives and Laws Concerning Alternative Fuels


The DOE's Energy Efficiency and Renewable Energy Office website provides the latest developments and news for alternative fuels along with a listing of incentives and laws that apply to the technology. Check on Federal Incentives and Laws and North Carolina Incentives and Laws to find a complete up-to-date listing.





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