Alternative Fuel Vehicle Program

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

Transportation accounts for 67% of the oil consumed in the United States, with this number projected to reach 72% by 2020. Petroleum's inherently finite and frequently unstable nature makes this reliance a threat to our energy security, bringing with it far-reaching economic and political implications. In cities or other areas of heavy traffic, localized vehicular air pollution can increase health problems including cancer, heart disease, asthma, and emphysema.

To address these issues, NYSERDA's AFV program uses federal and state funding for the implementation of AFV projects and their associated infrastructure within New York State. The use of domestically-produced alternative fuels such as natural gas, propane, electricity and bio-fuels can curb harmful emissions and help reduce our dependence on imported petroleum. Past projects have introduced hundreds of light, medium and heavy duty AFVs and hybrid electric vehicles to public and private fleets that will collectively displace millions of gallons of petroleum 

AFV Programs and Projects

NYSERDA focuses on emission reductions, petroleum displacement, training and new AFV technology deployment. Project participants include state, municipal, school and private fleets all across the state. Funds are awarded on a competitive basis through a Program Opportunity Notice (PON). Check the funding opportunities page for the current status of these programs including available funds and deadlines for proposals.

• The New York State 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 associated infrastructure.
• The New York State Clean Air School Bus Program provides funds to school districts for 100% of the cost to purchase and install emission reducing technology such as diesel oxidation catalysts and diesel particulate filters.
• Special Projects grants from the Department of Energy are used to provide support for niche applications of AFVs such as airport shuttles, municipal trucks, and private delivery vehicles, as well as natural gas and ethanol fueling operations.
• The New York State Clean Cities Challenge awards funds on a competitive basis to fleets for the incremental costs of alternative-fuel vehicles, the cost of installing fueling and recharging equipment, and the incremental costs associated with bulk alternative fuel purchases or contracts to purchase alternative fuels such as E-85 or biodiesel.
• The New York City Private Fleet Program provides funding to private companies operating within the 5 boroughs of New York City for up to 50% of incremental cost of new light-duty natural gas or electric vehicles and related infrastructure, and up to 80% of incremental cost for new or converted medium and heavy-duty natural gas, electric, dual fuel or hybrid-electric vehicles.
• The Biofuel Initiative: Driving Energy Independence for the Empire State provides funding to retail fueling facility owners to dispense E85 ethanol and blended biodiesel (biofuels), and to petroleum terminal operators to store, blend, and dispense biofuels at their rack.
• The Diesel Idling Reduction Program that is currently being developed will fund anti-idling technologies like: electrified parking spaces for trucks, coolant heaters for buses, and auxiliary power units for refrigeration. Watch this website for Program Opportunity Notices (PON’s) related to idle reduction.