INDIANAPOLIS – Indiana Lt. Governor Becky Skillman announced that funds are being made available to the public and private sectors to help pay for conversion of fleet vehicles to alternative fuels. 

The alternative fuel vehicle (AFV) grants will be available to government entities, businesses, school corporations, institutions of higher education, health care facilities and not-for-profit agencies in Indiana.

“These grants are meant to increase our energy efficiency, reduce energy costs and reduce fossil fuel emissions,” said Skillman. “In the process we can create new jobs and increase productivity, which is all part of healthy economic development.”

Grants from $40,000 to $500,000 will be available for on-road fleet vehicles only. The funds can be used to cover the differential between the cost of purchasing an alternative energy vehicle rather than a traditional fuel vehicle. Funds can also be used to defray the cost of retrofitting an existing vehicle. Infrastructure costs are not eligible in this grant program.

Applications will be accepted until Sept. 30 of this year. Applicants are not required to match any award with local funds, but any leveraged funds will earn an applicant additional points in the competitive grant scoring process. The program uses federal funds that are administered by the Indiana Office of Energy Development.

Qualifying projects must demonstrate measurable improvements in fuel efficiency, result in a reduction in fuel demand, and result in a reduction in fuel costs.

Qualifying fleets must have at least five vehicles. The applicant must own the vehicles, and they must be used for business primarily in Indiana. 

To learn about the program criteria and application process, click here. 

As part of the AFV grant process, applicants must work with at least one of the U.S. Department of Energy’s Clean Cities organizations in the state. In Indiana, there are two, Greater Indiana Clean Cities Coalition and South Shore Clean Cities Inc. in northwestern Indiana.