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7.7. ALTERNATIVE FUELS AND LOW-EMITTING VEHICLES

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Various levels of government subsidize alternative fuels (AF) and alternative fuel vehicles (AFV) through measures such as tax incentives, rebates, and preferential procurement. The annual costs of federal programs alone have been estimated at more than $1 billion. Some of these subsidies result in environmental improvements, but as noted below, alternative fuels are also subsidized for other reasons.


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