The U.S. State of Maryland has opened its Alternative Fuel Infrastructure Program (AFIP) for the 2017 financial year. Only Maryland-domiciled businesses can apply for funding. The total amount of funding currently available for this grant program in FY17 is up to $2.0 million, with a cap of $500,000 per CNG station.
The program includes provision of grants for the installation of privately run and publicly accessible natural gas refueling stations utilizing fast fill dispensers.
The transportation sector is responsible for 32 percent of Maryland’s greenhouse gas emissions according to the Maryland Climate Change Commission, and contributes significantly to the state’s ozone air pollution problem. Use of alternative fuels as primary transportation fuels will accomplish the goal of lessening national dependence on foreign oil supplies as well as contribute to increased air quality due to the reduced tailpipe emissions for these sources of propulsion. In addition, alternative fuels can often offer a cheaper alternative on a cost per mile basis than traditional liquid petroleum, thus providing local fleets with a competitive advantage in the market place.
Maryland’s FY16 AFIP grants included $1 million for two CNG stations, collectively expected to displace 7.3 million gallons of petroleum over 10 years.
Federal Income Tax Credits exist for the installation of alternative fuel systems. The infrastructure development provision was part of the 2005 Energy Policy Act and provides a 30% federal income tax credit, up to $30,000 per property, to install alternative fuel dispensing systems.
Maryland Energy Administration has previously conducted a Natural Gas Vehicle Voucher Program (2013) and Natural Gas Refilling Station Grant Program (2015).
(Source: Maryland Energy Administration)