Are hybrid electric vehicles (HEVs) considered AFVs under EPAct?
A. The HEVs currently on the market (e.g., Toyota Prius, Honda Civic Hybrid, and Ford Escape Hybrid) do not qualify as AFVs because they are neither primarily powered by an electric motor nor equipped with an engine capable of operating on an alternative fuel. Consequently, the acquisition of such vehicles does not currently entitle covered fleets to AFV credit under Subpart F of the Program regulations. However, in Section 133 of the Energy Independence and Security Act of 2007, Congress directed DOE to allocate credit, in an amount to be determined by DOE, for acquisition of various electric-drive vehicles, including HEVs. DOE’s rulemaking to determine the credit allocation amount is underway.
