The Alternative Fuels Program Government Fleet Vehicle Incentive

State agencies and local governments in specific air quality non-attainment, ozone attainment and/or maintenance areas may be reimbursed for incremental costs to transition to alternative fuels such as electric, natural gas or propane autogas.  Reimbursements are up to an average of $10,000 for the incremental cost of new vehicles or reasonable aftermarket conversions.  Allowable vehicles for this Program do have limits, and must be:

2013 Ford E-450 with a V-10 converted dedicated Natural Gas fueled engine - GRTC Transit

2013 Ford E-450 with a V-10 converted dedicated Natural Gas fueled engine – GRTC Transit

  • ‘Buy America’ compliant or have a waiver from the Federal Highway Administration for inclusion in the Program; and
  • Garaged in program areas of air quality, as recognized by the federal CMAQ program (see FHWA site for more information).

This Program is administered through the Virginia Department of Mines, Minerals and Energy (DMME), in collaboration with the Virginia Department of Transportation (VDOT).

Fleets that are interested in utilizing this Program for the purchase or conversion to new alternative fuel vehicles should first contact Alleyn Harned (540-568-8896) or Matt Wade (540-568-4051) with Virginia Clean Cities.

Frequently Asked Questions

What is the purpose of this Program?

  • The Program is intended to reduce air pollution and greenhouse gases associated with government fleet vehicles.

Who is eligible for this Program?

  • Local government and state agency fleets located in Air Quality Non-Attainment areas.  Click here to download a map of CMAQ areas in Virginia. A Non-Attainment area is area of the country where air pollution levels persistently exceed the national ambient air quality standards.
  • Purchases or conversions to qualifying alternative fuel vehicles after July 28, 2014 are eligible for reimbursement.

How much funding is available?

  • Total Program funding is approximately $1.3 million per year.
  • The Program provides a reimbursement of up to an average of $10,000 for the incremental cost of a new vehicle or aftermarket conversion.
  • Incremental costs are defined as:
    • the entire cost of a certified conversion of an existing vehicle to use at least one alternative fuel
    • or the additional cost of purchasing a new vehicle equipped to operate on at least one alternative fuel, over the normal cost of a similar new vehicle equipped to operate on a conventional fuel (gasoline or diesel).

What alternative fuels replacements and conversions can be purchased?

  • Allowable vehicles for this Program must be ‘Buy America’ compliant or have a waiver from the Federal Highway Administration for inclusion in the Program; waivers can be requested by contacting Virginia Clean Cities. These waivers can take up to 60 days to secure.
  • Garaged in areas of Air Quality Non-Attainment, Ozone Attainment, or Maintenance as recognized by the Federal CMAQ program.
  • Light duty and heavy duty dedicated and bi-fuel propane autogas vehicles. Light duty dedicated battery electric sedans.
  • Light duty and heavy duty dedicated and b-fuel compressed natural gas vehicles.

Thomas Built PropaneWhat vehicles are eligible under this incentive Program?

  • Van (including Wagon or Cutaway or Stripped Chassis) Dedicated LPG
  • Truck Dedicated LPG
  • School Bus Dedicated LPG
  • Van (including Wagon or Cutaway or Stripped Chassis) Bi-fuel LPG
  • Truck Bi-fuel LPG
  • Sedan Bi-fuel LPG
  • Van (including Wagon or Cutaway or Stripped Chassis) Dedicated CNG
  • Truck Bi-fuel CNG
  • Truck Dedicated CNG
  • Sedan Dedicated CNG
  • School Bus Dedicated CNG
  • Refuse Hauler Dedicated CNG
  • Sedan Dedicated Battery Electric
  • Please visit this list for Buy-America approved vehicles – Buy America 
    • This list will be updated quarterly.

Can I apply for funding for more than one vehicle?

  • Each vehicle must meet the eligibility requirements.
  • If you need space for additional vehicles on your application, attach additional sheets of paper and include the owner’s name on each sheet and attach to the application.

What are my reporting responsibilities after reimbursement?

  • Recipients of Program funding for alternative fuel vehicles must report quarterly mileage and usage to DMME. Recipients will have to report any disabled vehicles or discontinued use of alternative fuel for vehicles in the Program to DMME within first five (5) years of operation.
  • Within 90 days of conversion VCC will audit bi-fuel conversion vehicles by visual inspection and checklist on a resting and lifted vehicle.

What is the application process?

  • A local government or state agency that has purchased or converted a vehicle to operate on an alternative fuel after July 28, 2014 may submit an agency reimbursement form and supporting documentation to DMME.
  • DMME verifies purchase and non-attainment area details, and certifies that the proposer agency has complied with the Program requirements.
  • DMME forwards the agency request for reimbursement to VDOT. VDOT will process the request within 30 days.
  • DMME, on receipt of these funds, forwards this reimbursement to the Agency.
Honda Civic Natural Gas dedicated - The City of Richmond

Honda Civic Natural Gas dedicated – The City of Richmond

Complete and signed agency reimbursement forms must include the following:

  • Number of vehicles
  • Vehicle conversion or purchase date.
  • Vehicle and technology type (i.e., bi-fuel CNG, dedicated LPG, Battery electric, etc).
  • Vehicle VIN number.
  • Incremental cost of alternative fuel vehicle compared to traditional fuel vehicle.
  • Total amount of reimbursement requested.
  • Supporting documentation including copies of receipts, invoices, and cost comparisons of traditional vehicle versus alternative fuel vehicle.

How can I get an application?

How do I acquire the alternative fuel or build a fueling station?

Compressed Natural Gas: State and local government fleets can now access substantially reduced natural gas (CNG) fuel rates straight from the VA state contract.  The vendor, Clean Energy Fuels, continues to build out both public and private natural gas fueling stations throughout the Commonwealth.  Clean Energy Fuels is works closely with many state and local agency fleet managers  to help them implement their natural gas fueling programs.  This includes on-site private fueling stations, public-access, partnership revenue sharing stations, or a combination of these.

Liquified Petroleum Gas (LPG or Propane): Alliance AutoGas (AAG) ( is a network managed by its parent company Blossman Gas, Inc., providing a comprehensive propane autogas solution for medium and heavy-duty fleets. For approximately ten converted vehicles, Alliance Autogas can install an on-site refueling station at no cost to the fleet. Participating fleets can have access to a growing network of refueling locations across the state of Virginia.

For eligible fleets interested in participating via the Alliance Autogas complete turnkey program, please contact one the Alliance Autogas representative below:

  • John Phillips
    Alliance Autogas in partnership with Virginia Governments in Hampton Roads
    (804) 695-4661

For more information on alternative fuels, please visit