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Funding Opportunities

The following 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
Community Action for a Renewed Environment (CARE)
    closing date March 9, 2010

DSIRE Incentives Database
Incentives for Alternative Fuel and Advanced Technology Vehicles
Incentives to Distribute Alternative Fuels
Incentives to Produce Alternative Fuels

Mobile Source Emissions Reduction Grant (suspended for 2010)
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
CFAT II call for projects open January 11, 2010 until March 15, 2010

The goal of Clean Fuel Advanced Technology (CFAT) Project is to reduce harmful transportation emissions in non-attainment areas in North Carolina by providing education, outreach, and incentives for the use of alternative fuels and advanced technologies in the transportation sector.

$ 1 million will be awarded by NC DOT and SEO to support an additional three years-2010-2012

  • In 2010 $700,000 will be available for emission reduction sub-award grants in eligible counties. These include: Cabarrus, Catawba, Davidson, Davie, Durham, Edgecombe, Forsyth, Franklin, Gaston, Granville, Guilford, Johnston, Lincoln, Mecklenburg, Nash, Orange, Person, Rowan, Union, and Wake counties as well as partial areas within: Chatham, Haywood, Iredell, and Swain counties.

Funds will be available for up to 80% of the cost of Alternatively Fueled Vehicles (Compressed Natural Gas, Propane, Electric) and for hybrid vehicles (Heavy Duty and passenger vehicles). Eligible Projects will also include Refueling Infrastructure (E85, Bio-Diesel in blends of B20 or higher, CNG, LPG, EV charging); Idle Reduction (Auxiliary Power Units, Truck Stop Electrification); and Diesel retrofits (Particulate filters, Oxidation Catalysts, Crank Case ventilation)

Evaluation Criteria to select projects for funding will include:

  1. Cost vs. regulated emissions reductions
  2. cost share contribution
  3. reduction of non regulated emissions
  4. project feasibility/ likelihood of success
  5. public awareness/ education
  6. diversity of projects

CFAT II Request for Proposals is now open:
    Jan 11,2010 see RFP HERE


    for application, connect HERE

Community Action for a Renewed Environment

(CARE) is a competitive grant program that offers an innovative way for a community to organize and take action to reduce toxic pollution in its local environment.  Through CARE, a community creates a partnership that implements solutions to reduce releases of toxic pollutants and minimize people's exposure to them.  By providing financial and technical assistance, EPA helps CARE communities get on the path to a renewed environment.  http://www.epa.gov/care/


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  (This opportunity is NOW CLOSED pre-proposals were due by Jan 19, 2010) 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.

   http://www.ncscitech.com/gbf/

Recovery Act funding for Clean Diesel

The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides $156 million in new funding to support the implementation of verified and certified diesel emission reduction technologies. Under this competitive grant program, funding must be used to achieve significant reductions in diesel emissions in terms of tons of pollution produced and diesel emissions exposure (particularly from fleets operating in areas designated by the Administrator as poor air quality areas), and the project must demonstrate the ability to maximize job preservation and creation. This program is referred to as Recovery Act Funding for National Clean Diesel Funding Assistance Program.

The Recovery Act Funding for National Clean Diesel Funding Assistance Program will be awarded on a competitive basis to support diesel emission reduction programs which maximize job creation and preservation. Although this is a National competition, applicants must submit applications to the EPA Region in which the project will take place. Assistance agreements funded under this announcement will be evaluated and awarded by each of EPA’s ten Regional Offices.

http://epa.gov/otaq/eparecovery/prognational.htm#timeline

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. 

  for updates on SEDC funding check: HERE

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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