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Alternative-Fuel Vehicle Program


NYSERDA provides financial assistance and technical information to encourage fleets to purchase alternative-fuel vehicles (AFVs) and install fueling infrastructures or charging stations. Vehicles powered by natural gas, propane, and electricity, including certain hybrid-electric vehicles, are eligible under most of the programs NYSERDA offers. Incentives are also available to encourage the use of bio-fuels such as ethanol and biodiesel.

Why You Should Consider Alternative Fuel Vehicles

Consider these facts:

  • Most AFVs produce less pollution than petroleum vehicles.
  • Tax credits and financial incentives help lower the cost of AFVs.
  • Prices of alternative fuels are more stable and often lower than petroleum fuels.
  • Use of alternative fuels reduces our dependence on imported oil.
  • Automakers and engine manufacturers are expanding their lines of AFVs and engine types, and the network of fueling stations is growing.

Related Information

Technical Assistance

  • Through NYSERDA's Flexible Technical (Flex-Tech) Assistance Program, fleet managers can evaluate the feasibility and cost of adding AFVs and fueling facilities to their operations. Low-cost training for vehicle mechanics is available through certified institutions.

Case Studies

The Clean-Fueled Bus Program provides funds to state and local transit agencies, municipalities, and schools for up to 100% of the incremental cost of new alternative-fuel buses, and a combination of a Clean Fuel Bus Project and a directly associated Clean Fuel Infrastructure project. Eligible Vehicles include any motor vehicle with a seating capacity of 15 or more passengers in addition to the driver and used for the transportation of persons on public highways that is powered by compressed natural gas (CNG) including dual-fuel technology, propane, methanol, hydrogen, biodiesel or ethanol, or uses electricity, including electricity either stored or generated on board, as a primary motive force (e.g. hybrid-electric). Dual fuel CNG engines must be factory built and certified or a new diesel engine converted to dual-fuel prior to commit to a fuel mix that results in 75% or greater use of CNG during typical operation of the bus. The emissions reduction potential of alternative-fuel buses is evaluated for project selection.

This hybrid-electric bus was developed under a NYSERDA R&D program. The Governor's Clean Water/Clean Air Bond Act will get hundreds of CNG, electric and hybrid-electric buses rolling.

NYC AFV transit bus

A "Clean Fuel Infrastructure project" is the construction of infrastructure and installation of equipment to fuel or recharge clean-fueled buses including, but not limited to, battery charging station and natural gas fueling stations and depots. To be considered for funding, the Clean Fuel Infrastructure project must be necessary to introduce or expand a fleet of clean-fueled buses and include only cost items directly associated with making the facility capable of dispensing the clean fuel.

Funds come from former Governor Pataki's 1996 Clean Water/Clean Air Bond Act. $23.75 million has been awarded thru Round VI of the program for 528 buses including compressed natural gas, battery electric, and diesel hybrid-electric technology. The program has leveraged more than $150 million in investments in clean fuel technology. This program supports several aggressive transit agencies to introduce clean fuel buses including the Metropolitan Transportation Authority (New York City Transit and Long Island Bus), Central New York Regional Transportation Authority, and the Alliance for Downtown New York and Long Beach School District.

Long Beach School Bus photo

The New York State Clean Air School Bus Program solicits applications for projects that maximize the environmental, energy, and economic benefits of introducing emissions-reduction technology for diesel-fueled school buses into school bus fleets and accelerating the introduction of these emission-reducing technologies into the market. This program uses funds from Governor Pataki's 1996 Clean Water/Clean Air Bond Act. These funds cover 100% of the costs of purchasing and installing emission reducing technology such as diesel particulate filters, diesel oxidation catalyst, and spiracle filter systems in diesel school buses. Round I of the program awarded $5 million to 74 school districts to retrofit 2,194 school buses.

The New York State Clean Cities Challenge awards funds to members of New York's Clean City organizations to acquire AFVs and/or refueling infrastructure. Applicants include eligible Clean Cities stakeholders with fleets of ten or more vehicles that will own, lease or otherwise operate the vehicles or equipment for which funds are requested and fuel providers with accompanying letters of support from at least two fleets that will be using the blended fuel. Alternative fuel vehicles eligible for incremental cost funding must be fueled by natural gas, propane, methanol, hydrogen, ethanol, or use electricity either stored or generated on board, as the primary motive force. Funds are awarded on a competitive basis, and can be used to cost-share up to 75% of the proposed project, including incremental purchase costs of alternative-fuel vehicles, the cost of installing fueling and recharging equipment, and the costs associated with bulk alternative fuel purchases of B100 biodiesel or contracts to purchase E-85.

Clean Cities is a locally based government/industry partnership, coordinated by the U.S. Department of Energy (DOE) to expand the use of alternatives to gasoline and diesel fuel. The program is designed to reach its goals of replacing petroleum fuel in the nation's transportation sector through combining local decision-making with voluntary action by partners, using a grassroots approach.

In 1999, NYSERDA was selected by DOE to receive a Clean City Partner Award in recognition of its role in promoting AFVs and assisting communities and fleets in taking advantage of the benefits AFVs can provide. Six areas in New York State are currently participating in the National Clean Cities Program. View a list of Clean City organizations including links to their websites.

NYSERDA spearheads the New York State Clean Cities Sharing Network , which provides technical, policy, and program information on AFVs. Membership is open to all organizations, businesses and individuals interested in AFVs and the incentives and policies that are driving the market in New York State. Members are notified about upcoming funding opportunities and events. To join, download a membership form (25kb .doc, 15kb .wpd, or 9kb .pdf). The New York State Clean Cities Sharing Network publishes information on tax incentives, fueling stations, case studies, and contact information for the Clean Cities program and other industry leaders. See below for links to current NYSERDA publications and other websites. The Sharing Network also organizes and sponsors technical workshops. Visit our Events calendar for upcoming workshops.

To obtain more information on the national Clean Cities program, visit their website at http://www1.eere.energy.gov/cleancities/.

The New York City Private Fleet Alternative-Fuel/Electric Vehicle Program helps private sector companies and non-profit entities operating vehicles within the five boroughs of New York City to acquire AFVs. NYSERDA, in partnership with the New York City Department of Transportation (NYC DOT), seeks projects that would maximize the environmental, energy, and economic benefits of accelerating these vehicles and the corresponding infrastructure into private fleets in New York City.

Federal Congestion Mitigation and Air Quality (CMAQ) funds are awarded on a competitive basis for up to 50% of the incremental cost of new light-duty natural gas or electric vehicles, and up to 80% of the incremental cost for new or converted medium and heavy-duty dedicated compressed natural gas (CNG), dual-fuel technology optimized to use 80% CNG, electric, or hybrid-electric vehicles, and 50% of the cost of equipment and installation of compressed natural gas (CNG) refueling equipment or electric vehicle charging equipment.

The Federal Department of Energy Specials Projects awards Federal funds to stakeholders of a Clean Cities Organization to acquire AFVs and/or refueling infrastructure. Funds are awarded on a competitive basis, and can be used to cost-share up to 75% of the proposed project, including incremental costs of the AFVs and the cost of installing fueling and recharging equipment. Stakeholders of a Clean Cities Organization need to apply for DOE funds through NYSERDA. The program is released once a year. Contact NYSERDA or your Clean City organization for information on the current SEP Special Projects solicitation.

Congestion Mitigation and Air Quality Projects

Several localities are using Federal Department of Transportation Congestion Mitigation and Air Quality (CMAQ) funds to implement their Alternative Fuel Vehicle (AFV) programs. New York City uses these funds to implement an aggressive initiative to introduce the new technology in their large municipal fleet. The funds are helping New York City meet the AFV purchase obligations of Local Law 6 which requires fleets to purchase increasing numbers of AFVs. The Greater Long Island Clean Cities Coalition has secured over $3 million of CMAQ funds for AFV projects and two other Clean City coalitions have secured CMAQ funds to cost-share local AFV programs, including technician training.

The New York City Clean Fuel Taxi Program provides Federal Congestion Mitigation and Air Quality (CMAQ) funds towards the purchase of new natural gas taxi cabs or the conversion of gasoline cabs. A partnership including NYSERDA, New York City agencies, Keyspan Energy, Consolidated Edison, and Ford are working together to introduce natural gas taxis into New York City's 12,000 yellow cab fleet. About 300 natural gas taxis have been operated by taxi drivers throughout the city as a result of this program. Natural gas is available at a growing network of fueling sites around the City. Contact NYSERDA at info@nyserda.org for names of participating Ford dealerships and conversion businesses.

More than 300 New York City Medallion cabs have already been converted to cleaner compressed natural gas (CNG)

New York City Medallion cab photo

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bullet Clean-Fueled Bus
bullet Clean Air School Bus
bullet Clean Cities Challenge
bullet NYC Private Fleet
bullet U.S. DOE Special Projects
bullet Congestion Mitigation and Air Quality (CMAQ)
bullet NYC Clean Fuel Taxi
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© 2004 New York State Energy Research and Development Authority
New York State Energy Research and Development Authority
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