December 5, 2011

Hot Report: OLR Background: Alternative Fuel Vehicles


OLR Report 2011-R-0359 provides information on the use of alternative fuels to power vehicles.

According to the U.S. Department of Energy's Alternative Fuel Data Center, there are currently 85 stations that provide alternative fuel in the state. These include 39 electric charging stations (one of which is powered by solar energy), 16 propane stations, and 14 compressed natural gas stations. A map of these facilities is available at www.afdc.energy.gov/afdc/locator/stations/state.

This backgrounder describes initiatives in Connecticut and other states to promote alternative fuel vehicles (AFVs) and discusses some of the policy issues surrounding these vehicles. Connecticut currently has a limited number of initiatives to promote AFVs. It has a grant program for producers of biodiesel (a mixture of vegetable oil and diesel fuel). The program is currently scheduled to end on January 31, 2012. There are also requirements for the use of AFVs in the state's fleet and grants for municipalities for AFVs. Prior law provided a number of tax incentives to promote AFVs. Specifically, the law provided a credit against corporate business taxes equal to 10% of the costs of alternative fuel stations and the added costs of electric and natural gas vehicles. Prior law exempted new electric and gas vehicles, the cost of converting gasoline vehicles to use these fuels, and the equipment used in fueling stations from the sales tax, which expired in 2008.

Governor Rell's Executive Order No. 34 established the Electric Vehicles Infrastructure Council. The council set a goal of deploying 25,000 electric vehicles (EVs) in the state by 2020. It developed five additional strategic priorities and 30 specific action steps.

Most recently, PA 11-80 allows the state's Clean Energy Fund to:
  1. support projects that seek to deploy AFVs and associated infrastructure and related storage, transmission, distribution, and manufacturing technologies or facilities; and
  2. provide low-cost financing for these technologies.

For more information, read the whole report.