EPAct State and Alternative Fuel Provider Credit Allocations Update
Sept. 18, 2014
What are the new credit allocations that were established under the U.S. Department of Energy’s (DOE)'s Alternative Fuel Transportation Program earlier this year?
DOE issued a final rule on March 21, 2014, that establishes credit levels for additional means by which covered state and alternative fuel provider fleets operating under the Program’s Standard Compliance option may earn credits. These credits may be used toward compliance with a fleet’s alternative fuel vehicle (AFV) acquisition requirements. DOE promulgated the rule pursuant Congress’ direction, set forth in Section 133 of the Energy Independence and Security Act of 2007.
The new credit allocations address the acquisition of various types of electric drive vehicles and allow covered fleets to earn credits under Standard Compliance for some vehicles that do not meet the Energy Policy Act (EPAct) of 1992 definition of an AFV. Newly eligible vehicles include the following (with their credit allocations):
- Certain hybrid electric vehicles (HEVs) — one-half credit
- Plug-in electric vehicles — one-half credit
- Fuel cell electric vehicles — one-half credit
- Neighborhood electric vehicles — one-fourth credit
Medium- and heavy-duty HEVs are also eligible for one-half credit after a fleet has met its light-duty AFV acquisition requirements.
Acquiring the electric drive vehicles noted above is not the only new way to earn credits under EPAct Standard Compliance. Fleets may now earn credits for investments of their own funds (not grant funds or other monetary awards) in qualified alternative fuel infrastructure. For every $25,000 invested, a covered fleet may earn one credit, with a limit of five credits available per fleet per model year for private infrastructure investment, and ten credits per fleet per model year for public infrastructure investment.
Fleets may also earn credits for investments in alternative fuel non-road equipment and/or emerging technologies associated with the Section 133-identified vehicles. The credits for non-road equipment are similar to infrastructure – one credit for every $25,000 invested and a maximum of five credits may be earned per fleet per model year. Emerging technologies investments will earn a covered fleet two credits for the initial investment of $50,000 and one credit for every $25,000 invested thereafter, with a limit of five credits per fleet per model year.
Fleets may begin taking advantage of these new credit allocations for their efforts undertaken in Model Year 2014 and future model years.
For more information, refer to the following resources:
- EPAct Frequently Asked Questions for State and Alternative Fuel Provider Fleets website
- Final rule
- EPAct Transportation Regulatory Activities Statutes and Regulations website
- Webinar: Final Rule on Electric Drive Vehicles and Infrastructure
- Clean Cities Technical Response Service Team