Agenda - 06-02-2004-7b - Laserfiche WebLink

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Funding for the AFV Incentive Project is provided tlu~ough the North Carolina Department of Administration State Energy Office. Eligible vehicle and fleet operators azrd fuel providers may apply for funding through this prograzn to offset a portion of the added cost incurred with alternative fuel use. Funding will be awarded based on criteria outlined below. Applicants must demonstrate a 50% minimum cost share contribution to the proposed projects. Cost share is the portion of the project cost that the applicant provides. No more than 50% of the cost of the eligible projects will be funded. Cost share percentage will be based on incremental cost or total project cost as outlined in the exaznples below. Applicants must state the total cost of their alternative fuel project along with their cost-share contribution and will be granted a specific, not-to-exceed amount of funding based on their proposal. Cost share contributions will be reviewed in a case by case manner. Both cash azrd in-kind contributions, such as existing infrastructure and administrative time, may be included as a cost share contribution. Cash contributions will be given more value over in- kind contributions unless in-kind contributions are supporting publicly available refueling sites. The following examples can serve as guidelines: o For the purchase of biodiesel and E85, the applicant must demonstrate a minimum of 50% of the cost difference, or incremental cost, between the alternative fuel azrd its conventional counterpart (diesel or gasoline). This cost share can be demonstrated though the achial cash contributed towards the incremental purchase price of the biofuel and/or by the value of the refueling infrastructure used to dispense the alternative fuel. Actual cash contributions offered towards the incremental costs of the proposed fuel will be valued higher than an in-kind contribution based on the value of refueling infrastructure unless refueling is publicly accessible. the applicant must clearly state and describe the value of cost share contribution in the application. o For the purchase of AFVs that have a conventional counterpart, applicants must demonstrate a minimum of a 50% cost share contribution towards the incremental cost.. For example the cost difference between a gasoline Honda Civic and a compressed natural gas (CNG) Civic is $4,500. Consequently, applicants are eligible to receive up to $2,250 to offset the costs of purchasing this vehicle and are expected to demonstrate at least $2,250 as a cost-share contribution, o For vehicles that have no conventional counterpart, up to 25% of the total purchase price is eligible for reimbursement ifthe AFV is purchased instead of a conventionally fueled vehicle.. For example, a low speed electric vehicle purchased for $12,000 instead of an on-road gasoline vehicle is eligible for up to $3,000 reimbursement. Consequently $9,000 can be demonstrated as a cost-share contribution. Applicants must explain how the proposed vehicle will be used in place of a conventional vehicle., o Existing vehicles that are being retrofitted must provide fora 50% minimum towazds the retrofit costs. For exaznple, if the cost ofretroftting an existing gasoline vehicle to operate on propane is $7,000, then $3,500 is eligible for reimbursement and a minimum of $.3,500 must be demonstrated as a cost-share contribution. The residual value of existing vehicles cazmot be used as cost share contributions for vehicle conversions. Priority will be given to original equipment manufacturer (OEM) vehicles.. o For refueling appliances such as tank, pumps and apparatus used to refuel AFVs, a 50% minimum of the total oroiect costs must be demonstrated as project cost-share and up to 50% are eligible for reimbursement. When upgrading or retrofitting existing refueling appliances, a portion of the value of the existing infrastructure maybe used as an in-kind cost-share contribution. The value of this contribution must be clearly demonstrated and