Mississippi Development Authority has alternative fuel vehicle loan funds available
 

May 10, 2018. Currently the Mississippi Development Authority (MDA) has about $225,000 available in the Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Program dedicated to help fund the purchase of new alternative fuel vehicles (AFVs) and/or the infrastructure necessary to run these vehicles.

   The Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Revolving (AFV) Loan Program provides public school districts and municipalities with loans to cover 100 percent of the incremental cost of purchasing AFVs and related systems or of converting existing vehicles to accept alternative fuels. Technologies currently eligible under this program are propane gas, compressed natural gas (CNG) and liquefied natural gas (LNG).

   Sumesh Arora, director of the Energy and Natural Resources Division for MDA, said the program also provides funding to retrofit or convert existing conventional vehicles to use alternative fuels. For the purchase of new original equipment manufacturer (OEM) AFVs, loan funds can be used to cover the difference between the cost of the AFV and the cost of a comparable conventional model after all other applicable manufacturer and cash equivalent incentives are applied.

   “For the purchase of alternative fuel system equipment and facilities, AFV funds can be used to cover the cost of the new fuel system after all other applicable rebates and cash equivalent incentives are applied, plus construction and installation,” Arora said. “For the retrofit of existing fleet vehicles to use alternative fuels, AFV funds can be used to purchase the new fuel system and cover the cost of installation and labor after all other applicable rebates and cash equivalent incentives are applied. Vehicle retrofits are limited to EPA-compliant vehicle systems, and AFV loan funds are not available for non-fuel system upgrades such as transmissions and exhaust systems.”

   The loan term for vehicle purchases and retrofits is seven years, and the loan term for refueling infrastructure purchases is 15 years. AFV loans are issued at zero percent interest. However, guidelines for loan amount and loan terms are currently being revised.