SB527 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Cam Ward
Republican
Session: Regular Session 2012
Title: Alternative fuels, incentives, biodiesel, cellulosic alcohol, compressed natural gas, use of vehicles using alternative fuels promoted, Sec. 23-2-150 am'd
Summary: SB527 would promote alternative-fuel vehicles and in-state biofuels in Alabama through vehicle and fueling incentives, biofuel payments, toll/HOV and EV charging provisions, and tax credits, all with a five-year funding window for biofuels.
What This Bill Does
It offers incentives for buying vehicles powered by compressed natural gas, liquefied natural gas, propane, or electricity and for installing refueling equipment. It creates a quarterly payment program to support in-state biodiesel and cellulosic ethanol production, with specified per-quarter amounts and a five-year limit. It also provides liability protection for refueling equipment providers, toll exemptions for certain alt-fuel vehicles, and rules related to HOV lanes and EV charging; plus tax credits for vehicle purchases and refueling equipment with caps and a five-year sunset. The bill sets regulatory authority for implementation and outlines effective dates for various provisions.

Who It Affects
Vehicle owners, lessees, and businesses in Alabama that purchase or operate alternative-fuel vehicles (CNG/LNG/propane/electric) and/or install refueling equipment; they could be eligible for tax credits, toll exemptions, and HOV lane access, and may be subject to HOV decal requirements.
Commercial biodiesel and cellulosic ethanol producers in Alabama (and prospective producers) who could receive quarterly payments under a state program administered by the Center for Alternative Fuels, along with required reporting and eligibility criteria.

Key Provisions
Incentives for acquiring vehicles powered by CNG, LNG, propane, or electricity and for installing refueling equipment (vehicle and refueling equipment tax credits).
Biodiesel and cellulosic ethanol production payments: biodiesel $900,000 per quarter; cellulosic ethanol $1,250,000 per quarter (with adjustment for prior quarter payments); payments managed by the Center for Alternative Fuels; five-year program.
Liability protection for refueling equipment providers: no civil or criminal liability for acts/omissions if equipment complies with building codes.
Toll exemptions: certain alternative-fuel vehicles exempt from tolls on Alabama Toll Road, Bridge, and Tunnel Authority roads (amendment to 23-2-150).
Insurance surcharge prohibition: insurance companies cannot impose surcharges on certain alternative-fuel vehicles.
HOV lanes: DOT may designate HOV lanes and issue decals; decals renew annually with a fee limited to costs or $5; penalties for unauthorized use; compliance with federal requirements.
EV charging provisions: installation of EV charging stations is voluntary; charging not automatically retail sale of electricity; electric suppliers may provide charging stations; PSC has no jurisdiction over rates for EV charging.
Income tax credits: nonrefundable credits up to $1,500 per qualifying vehicle (max 5,000 vehicles per fuel type); credits for placing in service refueling equipment (up to 30% of cost or specified caps by fuel); 5-year carryforward; credits sunset five years after effective date.
Regulatory and transitional provisions: state agencies may issue regulations to implement the act; severability and repeal of conflicting laws; specific effective dates for various sections.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Alternative Fuels