SUBCHAPTER 41D - ENERGY POLICY ACT CREDIT BANKING AND SELLING PROGRAM

 

SECTION .0100 - GENERAL PROVISIONS

 

01 NCAC 41D .0101          PURPOSE AND ORGANIZATION

(a)  Pursuant to G.S. 143-58.4 the State Energy Office has established a credit banking and selling program to allow State departments, institutions, and agencies to use monies generated by the sale of EPAct credits to purchase alternative fuel, develop related refueling infrastructure and purchase alternative fuel vehicles.

(b)  Pursuant to G.S. 143-58.5, the State Energy Office has established an Alternative Fuel Revolving Fund generated from the sale of EPAct credits. These funds may to be used to purchase alternative fuel, develop related refueling infrastructure and purchase alternative fuel vehicles for use by State departments, institutions, and agencies.

 

History Note:        Authority G.S. 143-58.4; 143-58.5;

Eff. May 1, 2007.

01 NCAC 41D .0102          DEFINITIONS

For the purposes of this Chapter, the following definitions apply:

(1)           "AFV" means the same as defined in 143-58.4.

(2)           "Alternative fuel" means the same as defined in 143-58.4.

(3)           "Biodiesel Fuel Use Credit" means an EPAct credit given by the U.S. DOE for each 450 gallons of pure biodiesel purchased for use in blends of 20% or higher. No credit is granted for the petroleum portion of biodiesel fuel blends.

(4)           "B20" means the same as defined in 143-58.4.

(5)           "Department" means the Department of Administration.

(6)           "Energy Policy Act" means the same as defined in 143-58.4. 

(7)           "EPAct credit" means the same as defined in 143-58.4.

(8)           "EPC" means the Energy Policy Council, created pursuant to G.S. Chapter 113B, Article 1.

(9)           "E85" means the same as defined in 143-58.4.

(10)         "FFV" means a flexible fuel vehicle that is capable of operating on both E85 and gasoline.

(11)         "Incremental fuel cost" means the same as defined in 143-58.4.

(12)         "Incremental vehicle cost" means the same as defined in 143-58.4.difference in cost between an AFV and conventional vehicle of the same make and model. For vehicles with no comparable conventional model, incremental vehicle cost means the generally accepted difference in cost between an AFV and a similar conventional model.

(13)         "LDV" means a light duty vehicle that has less than an 8,500 lb gross vehicle weight rating (GVWR).

(14)         "NC Alternative Fuel Consortium" means a voluntary group of state agencies, institutions and interested entities that meet at least quarterly and is hosted by the State Energy Office to coordinate alternative fuel and petroleum displacement activities in North Carolina.

(15)         "OEM" means original equipment manufacturer.

(16)         "SEO" means the State Energy Office.

(17)         "U.S. DOE" means the United States Department of Energy.

(18)         "U.S. EPA" means the United States Environmental Protection Agency.

 

History Note:        Authority G.S. 143-58.4; 143-58.5;

Eff. May 1, 2007.

 

SECTION .0200 - CREDIT BANKING AND SELLING PROGRAM PROVISIONS

 

01 NCAC 41D .0201          BANKING

(a)  EPActs credits shall be accrued and banked according to the following:

(1)           The U.S. DOE Alternative Fuel Transportation Program (10 CFR Part 490) requires that 75% of LDVs acquired by state fleets shall be FFVs, compressed natural gas vehicles, propane vehicles or electric vehicles;

(2)           One credit is earned for each OEM or EPA certified retrofit FFV, compressed natural gas, propane or electric vehicle purchased;

(3)           Credits that exceed the annual minimum state AFV acquisition requirements may be banked through the U.S. DOE Office of Freedom Car and Vehicle Technologies Program to meet future year requirements or traded;

(4)           State fleets can earn Biodiesel Fuel Use Credits to meet 50% of their annual AFV acquisition requirements by purchasing and using biodiesel; and

(5)           Biodiesel Fuel Use Credits cannot be traded or banked.

(b)  Credits are determined by state agencies in cooperation with the State Energy Office in the following manner:

(1)           Each year by December 1st every State department, institution and agency subject to EPAct requirements shall provide the State Energy Office with the types of vehicles purchased, the vehicle identification numbers and the dates of purchase to determine the number of EPAct credits generated by the State; and

(2)           The SEO shall submit an annual EPAct credit report to the U.S. DOE by December 31st.

(c)  The following provisions shall be used in determining credits:

(1)           EPAct credits eligible for sale include FFVs if the FFVs are operating on E85;

(2)           EPAct credits generated through the use of B20 are not eligible for sale or transfer, however, they shall be used by the State to meet 50% of Energy Policy Act requirements; and

(3)           State agencies and institutions that purchase FFVs shall record the use of E85 for the FFVs.

 

History Note:        Authority G.S. 143-58.4; 143-58.5;

Eff. May 1, 2007.

 

01 NCAC 41D .0202          Selling

(a)  The State Energy Office shall form a Credit Selling Work Group to determine the number of excess credits to be sold as follows:

(1)           The Credit Selling Work Group shall consist of:

(A)          Department of Administration Motor Fleet Management designee;

(B)          Department of Transportation Equipment Unit designee;

(C)          State Energy Office designee; and

(D)          Designees of other state agencies and institutions that generate EPAct credits; and

(2)           The Credit Selling Work Group shall determine the asking price for credits.

(b)  The State Energy Office shall obtain approval from the Energy Policy Council prior to selling EPAct credits.

(c)  The State Energy Office shall sell EPAct credits in accordance with the provisions of the Energy Policy Act.

 

History Note:        Authority G.S. 143-58.4; 143-58.5;

Eff. May 1, 2007.

 

SECTION .0300 - PROCEEDS AND DISTRIBTUTION

 

01 NCAC 41D .0301          Proceeds and distribution

(a)  Funds generated by the sale or transfer of EPAct credits by the Department shall be deposited into the Alternative Fuel Revolving Fund.

(b)  The following shall be undertaken to determine the distribution of proceeds from the Alternative Fuel Revolving Fund:

(1)           The State Energy Office shall annually inform the NC Alternative Fuel Consortium of the amount of revenue accrued to the Alternative Fuel Revolving Fund and the percentage of these funds that were generated by participating state agencies, institutions or entities;

(2)           The State Energy Office shall organize meetings of the NC Alternative Fuel Consortium and the Credit Selling Work Group to discuss and prioritize distribution of funds;

(3)           Fund distribution shall be prioritized based on maximizing benefits to the State for the purchase of alternative fuel, related refueling infrastructure and AFV purchases;

(4)           An annual plan for the dispersion of Alternative Fuel Revolving Funds shall be prepared by the State Energy Office based on recommendations of the Alternative Fuels Consortium and the Credit Selling Work Group; and

(5)           The Energy Policy Council shall review and approve the annual plan.

 

History Note:        Authority G.S. 143-58.4; 143-58.5;

Eff. May 1, 2007.

 

01 NCAC 41D .0302          Fund disbursements

All state departments, institutions and agencies are eligible to utilize Alternative Fuel Revolving Funds.

 

History Note:        Authority G.S. 143-58.4; 143-58.5;

Eff. May 1, 2007.

 

SECTION .0400 - REPORTS

 

01 NCAC 41D .0401          Reports

(a)  Progress reports shall be submitted biannually by State departments, agencies, and institutions that receive funds from the Alternative Fuel Revolving Fund.

(b)  The progress report shall include a description of the current project, number of gallons of alternative fuel or vehicles purchased, challenges and successes, and forecast of expectation or deviation from the planned schedule.

 

History Note:        Authority G.S. 143-58.4; 143-58.5;

Eff. May 1, 2007.