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State and Federal Incentives and Laws

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Alabama

Alternative Fuels Promotion and Information

The Center for Alternative Fuels is established within the Department of Agriculture and Industries to promote alternative fuels as a viable energy source in the state. The Center will assess the current status and development of sources of alternative fuels, ensure that all alternative fuels sold in the state meet American Society for Testing and Materials (ASTM) standards, and act as an information center for alternative fuels and a clearinghouse for available federal grant funding for alternative fuel development. The Center will also administer a grant program funded by an income tax check-off program through the Alabama Alternative Fuels and Research Development Fund. (Reference House Bill 123, 2007)

Alternative Fuel Tax

The state road tax for vehicles that operate on liquefied petroleum gas (LPG) and compressed natural gas (CNG) is paid through an annual flat-fee sticker and the amount is based on the vehicle's Gross Vehicle Weight Rating. Each person owning and/or operating a vehicle that operates on LPG must obtain an annual decal from the Alabama LPG Board. The decal must be affixed to the vehicle as directed by the LPG Board as proof that the flat fee has been paid. The issuance fee is $5 plus the decal fee. Owners of vehicles that are converted to operate on LPG must apply for a decal within 10 days of conversion or a 20% penalty will be applied to the decal fee. Out-of-state alternative fuel vehicle operators that purchase LPG or CNG within the state must pay the current Alabama motor fuel tax. The LPG or CNG dealer or supplier must remit these funds to the LPG Board before the 20th of the month following the date of sale. (Reference Code of Alabama Section 40-17-160 through 40-17-165)

Point of Contact

Marilyn Franklin/Barnie Gilliland
License and Fees Secretary
Liquefied Petroleum Gas Board
Phone (334) 242-5649
Fax (334) 240-3255
marilyn.franklin@lpgb.state.al.us