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Alternative Fuels: A State Policy Analysis

August 26, 2014

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In July 2014, Clean Energy Coalition completed an exhaustive review of state-level alternative fuel policy across the United States. This research provides a valuable look at various policies adopted throughout the United States, and how these policies might relate to the number of AFVs and alternative fueling infrastructure in each state. By comparing the strength of relationship between certain policies and AFVs per capita, we can determine which types of policies might be more effective at promoting the proliferation of AFVs and the use of alternative fuels. The research began by categorizing each of over 900 state policies based on fuel, policy mechanism, offering body, and targeted market. The research then examined correlations between different types of policy and the number of AFVs in each state.

The paper finds that there are three important distinctions that impact AFV policy: the origination of the policy (whether it is a state, local, or utility policy), the target of the policy (who is affected by the policy), and the type of policy mechanism (e.g., financial incentive, or a fee/tax policy). For example, this research suggests that states with more laws and incentives that originate at the local or utility level are more likely to have a higher number of AFVs per capita. This indicates that decision makers should encourage the use of local policy to promote AFVs, and work with utilities or the state’s public service commission to promote the use of alternative fuels and AFVs. Although most current policy is targeted toward the commercial sector (especially so for grants and rebates), states that have more laws and incentives targeted to the residential sector are more likely to have a higher number of AFVs per capita. Ultimately, the paper identifies three main incentive mechanisms that have the strongest correlations with AFV deployment.

To read the full text of the paper, visit the Clean Energy Coalition website here.

For more information, please contact:

Allison Skinner
Project Associate
allison@cec-mi.org
734-585-5720 ext. 16

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