(a) A vehicle is a qualifying vehicle that may be considered for a grant under the program if during the eligibility period established by the commission the entity purchases a new on-road vehicle that:
(1) is certified to the appropriate current federal emissions standards as determined by the commission;
(2) replaces a diesel-powered on-road vehicle of the same weight classification and use; and
(3) is a hybrid vehicle or fueled by an alternative fuel.
(b) A vehicle is not a qualifying vehicle if the vehicle:
(1) is a neighborhood electric vehicle;
(2) has been used as a qualifying vehicle to qualify for a grant under this chapter for a previous reporting period or by another entity; or
(3) has qualified for a similar grant or tax credit in another jurisdiction.