1. Grants & Incentives Alternative Fuel grants and incentives are available Alternative Fuel grants and incentives are available ACFC applies for grants from various funding agencies (DOE, EPA, ADECA etc) for alternative fuel infrastructure projects when they become available and will benefit Alabama ACFC applies for grants from various funding agencies (DOE, EPA, ADECA etc) for alternative fuel infrastructure projects when they become available and will benefit Alabama The following are available Today in Alabama The following are available Today in Alabama

2. Appalachian Regional Commission (ARC) Corridors X & V Grant Program

3. Corridors X & V Grant will provide 50% Grant will provide 50% (up to $2500) for the cost of (up to $2500) for the cost of cleaning existing fuel tanks cleaning existing fuel tanks and any other preparation and any other preparation for storage of B20 Biodiesel for storage of B20 Biodiesel for use in public access fueling for use in public access fueling stations along both Corridors stations along both Corridors ACFC will conduct grand opening media events for first stations opened on each corridor as well as other marketing ACFC will conduct grand opening media events for first stations opened on each corridor as well as other marketing

4. Application Guidelines Grant Guidelines and Application are available at www.AlabamaCleanCorridors.com Grant Guidelines and Application are available at www.AlabamaCleanCorridors.comwww.AlabamaCleanCorridors.com Applications must be received by ACFC no later than Nov. 30, 2009 Applications must be received by ACFC no later than Nov. 30, 2009 payment by March 30, 2010 Project must be completed and all claim vouchers must be submitted for payment by March 30, 2010 Agree to sell Biodiesel through Jan. 2013 Agree to sell Biodiesel through Jan. 2013

5. ADECA Biofuels for Schools Grant Program ADECA fully supports the informative biodiesel workshops being conducted by the Alabama Clean Fuels Coalition. The ADECA Energy Division is pleased to partner with ACFC to provide incentives for public school use and retail availability of B20 biodiesel in the state.

6. Biofuels for Schools Grant Program Will provide 50% (up to $2500) for the cost of cleaning existing fuel tanks in preparation for storage of B20 for use in Alabama school buses

7. Application Guidelines Dont leave anything blank! Dont leave anything blank! Attach three (3) fee quotes Attach three (3) fee quotes Provide a detailed description of the project Provide a detailed description of the project –Location of fueling infrastructure –# gallons of biodiesel expected to be dispensed annually (include basis for projections) Attachments Attachments Signatures – MUST be signed by Superintendent as Authorized Official on page 3 Signatures – MUST be signed by Superintendent as Authorized Official on page 3 After securing Superintendents signature send completed application to ADECA-Energy Division After securing Superintendents signature send completed application to ADECA-Energy Division

8. Special Note The use of biodiesel in Alabama school system pupil transport buses requires approval by the Alabama Department of Education. After submittal to ADECA-Energy Division, all applications will be reviewed and forwarded to the State Director of Pupil Transportation for approval.

9. Alternative Fuel Vehicle Refueling Property Credit Example 1 – Tax Paying Entity Alternative Fuel Vehicle Refueling Property Credit Example 1 – Tax Paying Entity Example of use by tax paying entity: Example of use by tax paying entity: Alternative Fuel Project: Qualifying Infrastructure Cost: $10,000 Qualifying Infrastructure Cost: $10,000 Less: Grant in place on 50/50 basis ($2,500) Less: Grant in place on 50/50 basis ($2,500) Remainder $7,500 Remainder $7,500 Less: 50% Tax Credit Per 8911 ($3,750) Less: 50% Tax Credit Per 8911 ($3,750) Cost of Project $ 3,750 Cost of Project $ 3,750 If no grant in place then entity may qualify for up to the $50,000 tax credit incentive – netting out the project at $5,000 vs. $10,000! If no grant in place then entity may qualify for up to the $50,000 tax credit incentive – netting out the project at $5,000 vs. $10,000!

10. Alternative Fuel Vehicle Refueling Property Credit Example 2 – Non -Tax Paying Entity Alternative Fuel Vehicle Refueling Property Credit Example 2 – Non -Tax Paying Entity Example of use by non-tax paying entity: Example of use by non-tax paying entity: Alternative Fuel Project: Qualifying Infrastructure Cost: $10,000 Qualifying Infrastructure Cost: $10,000 Less: Grant in place on 50/50 basis ($2,500) Less: Grant in place on 50/50 basis ($2,500) Remainder $7,500 Remainder $7,500 Less: negotiated infrastructure cost ( ) Less: negotiated infrastructure cost ( ) Cost of Project $ ? Cost of Project $ ? The vendor of the infrastructure equipment discloses to non tax paying entity that they are taking the tax credit. This opens up negotiation as to cost savings passed along. The vendor of the infrastructure equipment discloses to non tax paying entity that they are taking the tax credit. This opens up negotiation as to cost savings passed along.