SB294 Alabama 2013 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2013

Title

Compressed natural gas, liquefied natural gas, propane, hydrogen fuel cell, electricity, hybrid technology, income tax credits and other incentives for using vehicles operating such fuels, Alternative Fuel Policy Act, Secs. 2-33-1, 2-33-2, 6-5-345, 32-5A-360, 37-4-160, 40-18-350, 40-18-351 added; Sec. 23-2-150 am'd.

Summary

SB294 creates The Alabama Alternative Fuel Policy Act of 2013 to promote vehicles and fueling infrastructure powered by alternative fuels and biodiesel/cellulosic biofuels, with tax credits, payments, toll/HOV benefits, and fueling rules.

What This Bill Does

The bill would establish incentives for purchasing alternative fuel vehicles and installing refueling equipment, and set up a state-funded program to pay in-state biodiesel and cellulosic biofuels producers. It would allow income tax credits for qualified vehicles and for placing in service refueling equipment, with specific caps and a five-year sunset. It would also authorize toll exemptions and HOV lane access for eligible alt-fuel vehicles, create rules for electric vehicle charging stations (voluntary installation and limited regulatory authority), provide liability protections for fueling equipment providers, and appropriate funds to administer these programs.

Who It Affects

• Individuals and businesses that own or lease eligible alternative fuel vehicles (e.g., CNG, LNG, electric, propane, hybrid) or install qualifying refueling equipment, potentially earning tax credits and gaining toll exemptions or HOV lane access.
• Biodiesel and cellulosic biofuels commercial producers in Alabama and the state agencies administering the program (Center for Alternative Fuels, Department of Agriculture and Industries, Department of Transportation, and the Public Service Commission) which would oversee payments, regulations, and implementation.

Key Provisions

• Creates The Alabama Alternative Fuel Policy Act of 2013 and a new Chapter 33 in Title 2 to promote alt-fuel vehicles and technologies.
• Biodiesel and cellulosic biofuels payments: quarterly payments to in-state producers, with defined payment amounts, administration by the Center for Alternative Fuels, and a five-year duration.
• Income tax credits: up to $1,500 per eligible alternative fuel vehicle (limited to 5,000 vehicles per fuel type) and a refueling equipment credit of up to 30% of cost with per-fuel caps ($5,000 for CNG/LNG, $2,000 for propane, $500 for electricity), with five-year carryforward and sunset.
• Liability protection for providers of stationary refueling equipment, provided installations meet codes and are safe.
• Toll exemptions for certain alt-fuel vehicles on toll roads; HOV lane designation by the Department of Transportation with decals and usage rules, including penalties for misuse.
• Electric vehicle charging stations: installation is voluntary; non-supplier charging does not count as retail electricity sale, and the PSC has limited jurisdiction over charging station terms and conditions.
• Funding and administration: appropriations to the Center for Alternative Fuels for 2013 and the next five years; regulatory rules to implement the act; various sections take effect on specified dates.

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

Subjects

Taxation