"Alternative fuel project" means:
(a) A fleet of vehicles that are modified or acquired directly from a factory and that:
(A) Use an alternative fuel including electricity, ethanol, gasohol with at least 10 percent denatured alcohol content, hydrogen, hythane, methane, methanol, natural gas, propane or any other fuel approved by the Director of the State Department of Energy; and
(B) Produce lower or equivalent exhaust emissions or are more energy efficient than vehicles fueled by gasoline; and
(b) A facility, including a fueling station, necessary to operate an alternative fuel vehicle fleet.