Indiana Unveils Alternative Fuel Vehicle Initiative

Lt. Governor Becky Skillman this week announced that funds are being made available to the public and private sectors to help pay for conversion of fleet vehicles to alternative fuels.

The Alternative Fuel Vehicle (AFV) program opened on Tuesday (September 6) and applications will be accepted until September 30, 2011. Applicants are not required to match any award with local funds, but any leveraged funds will earn an applicant additional points in the competitive grant scoring process. The program uses federal funds that are administered by the Indiana Office of Energy Development.

“These grants are meant to increase our energy efficiency, reduce energy costs and reduce fossil fuel emissions,” said Lt. Governor Skillman. “In the process we can create new jobs, and increase productivity, which is all part of healthy economic development.”

AFV grants will be available to government entities, businesses, school corporations, institutions of higher education, health care facilities and not-for-profit agencies in Indiana. The grants, which range from $40,000 to $500,000, will be available for on-road fleet vehicles only.

The money can be used to cover the difference between the cost of purchasing an alternative energy vehicle and a traditional fuel vehicle. It can also be used to defray the cost of retrofitting an existing vehicle. It does not cover infrastructure costs, though.

There are a number of criteria any proposed project must meet. Among those criteria, the project must demonstrate measurable improvements in fuel efficiency, result in a reduction in fuel demand, and result in a reduction in fuel costs. A “fleet” is defined as five or more company vehicles.

The applicant must own the vehicles, and they must be used for business primarily in Indiana. The application process is also conducted online.

For more information visit the website of the Office of Energy Development (OED)

photo: RambergMediaImages

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