Wednesday, March 25, 2009

Mass. companies, cities could get stimulus funds for hybrids

By Efrain Viscarolasaga

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The Massachusetts Department of Energy Resources says that as part of Governor Deval Patrick’s recovery plan and the federal reinvestment program, Bay State companies and municipalities may be eligible to buy energy-efficient hybrid and alternative fuel vehicles at approximately the same cost as similar conventional vehicles.

The program, which falls under the American Recovery and Reinvestment Act (ARRA), is aimed at encouraging the purchase and use of alternative-fuel vehicles as a means to help reduce emissions and wean states from fossil fuels.

Among vehicles eligible for the program are hybrids and super-efficient plug-in hybrids, cars and trucks powered by fuel cells, compressed natural gas (CNG) and propane vehicles, light-duty diesel vehicles with emissions compliant with 2009 or later standards and vehicles powered by biodiesel and ethanol. Heavy-duty hybrid bucket trucks for utilities, CNG airport buses, hybrid cars for taxi fleets, and hybrid cars and four-wheel-drive vehicles for use by municipalities are examples of vehicles that could be purchased in the next several months with the help of “Clean Cities” funding, according to state officials.

Under terms of the act, municipalities and companies may receive funds to cover the cost differential between hybrid and alternative fuel cars and trucks and their petroleum-fueled counterparts. The DOER must apply for this federal recovery funding on behalf of Massachusetts companies (such as trucking and taxi companies) and public entities (such as municipalities and water districts) by May 29. To qualify, businesses and public agencies must submit to DOER by May 18 a letter of commitment to purchase eligible vehicles. State agencies may also qualify for the “Clean Cities” grants.

Massachusetts could receive $5 million to $15 million under the program, with funds expected to be disbursed to qualified private and public applicants for vehicle purchases this summer. Nationwide, ARRA is providing $300 million in competitive grants to encourage the purchase of hybrid and alternative fuel vehicles.