Press Release: Governor Extends State Alternative Fuel Vehicle Incentive Program to Local Governments

July 2, 2015



Governor Extends State Alternative Fuel Vehicle Incentive Program to Local Governments

Richmond, Va. – June 29, 2015 – Virginia Clean Cities commends Governor McAuliffe for increasing locality access to funds to help accelerate the conversion of public sector fleets to alternative fuel vehicles in areas with some of the highest air quality issues in the Commonwealth. At the June meeting of the Commonwealth Transportation Board (CTB), the CTB approved expanding access to the Virginia Alternative Fuel Vehicles Program to local governments. This Program is funded through Congestion Mitigation and Air Quality (CMAQ) Program dollars provided to the Commonwealth by the federal government. CMAQ funds focus on areas of Virginia that have high levels of air pollution and are intended to improve air quality in those regions of the Commonwealth.

The Program provides funding to cover the incremental costs of converting public sector fleets to alternative fuel vehicles powered by fuels such as compressed natural gas, propane, or electricity. This incremental incentive is now available for use in Richmond, Northern Virginia, Fredericksburg, and Tidewater. The increased use of alternative fuels will have the added benefit of promoting public and private sector investment in fueling infrastructure.

“I would like to thank the Governor and the Commonwealth Transportation Board for their leadership on converting public sector fleets to vehicles that utilize cleaner, more economical fuels,” said Alleyn Harned, Executive Director of Virginia Clean Cities. “The Governor is making good on an important part of his Virginia Energy Plan, to accelerate the use of alternative fuel vehicles in Virginia. These vehicles use fuel that is cleaner for our air and better for our economy, while meeting local and state agency energy goals.”

About the Alternative Fuel Program Government Vehicle Incentive

State agencies and local governments may be reimbursed for incremental costs to transition to alternative fuels such as 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 1) ‘Buy America’ compliant or have a waiver from the Federal Highway Administration for inclusion in the Program; and 2) Garaged in areas of Air Quality Non-Attainment, as recognized by the Federal CMAQ program. This Program is administered through the Virginia Department of Mines Minerals and Energy in collaboration with the Virginia Department of Transportation. Annual federal funding for this program is around $1.13 million.

About Virginia Clean Cities

Virginia Clean Cities is a regional nonprofit organization that advances air quality improvement, economic opportunity, and energy security through deployment of alternative fuel vehicles and infrastructure, education programs, and other petroleum reduction activities. Virginia Clean Cities is a state and federally recognized coalition of stakeholders staffed in partnership with James Madison University. The Coalition operates dozens of domestic fuel and environmental education and deployment projects for federal, state, agencies and private partners.

More information about propane and natural gas vehicles can be found at the United States Department of Energy’s alternative fuel data center at