Idaho Laws and Incentives

Listed below are the summaries of all current Idaho laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (4)
• Utility / Private Incentives (3)
• Laws and Regulations (7)

State Incentives

Idaho's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Idaho Transportation Department (ITD) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Idaho’s NEVI planning process, see the ITD NEVI Planning website. To review Idaho’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Medium- and Heavy-Duty Diesel Vehicle Replacement Rebates

The Idaho Department of Environmental Quality (IDEQ) offers rebates for the replacement of qualified medium- and heavy-duty diesel vehicles with new diesel or alternative fuel vehicles. Rebates are available for medium- and heavy-duty trucks, school, shuttle, and transit buses, freight switchers, airport ground support equipment, forklifts, and port cargo handling equipment. Vehicles must meet model year requirements, which vary by vehicle type. Funding amounts are based on vehicle type, fuel type (e.g., diesel, alternative fuel, all-electric), and applicant type (e.g., government, non-government). Funding is competitively awarded, and special consideration is given for projects located in air quality priority areas, areas with higher impact on sensitive populations, and oxides of nitrogen priority counties. The program is funded by Idaho’s portion of the Volkswagen (VW) Environmental Mitigation Trust and the Diesel Emissions Reduction Act. For more information, including program guidance and the application, see the IDEQ VW Settlement website.

License Exemptions for Biodiesel Production for Personal Use

A biodiesel producer that produces up to 5,000 gallons of biodiesel fuel in a calendar year for personal consumption is exempt from the requirement to obtain an Idaho motor fuel distributor’s license.

(Reference Idaho Statues 63-2427A)

Alternative Fuels Tax Exemption and Refund for Government Fleet Vehicles

State excise tax does not apply to special fuels, including gaseous special fuels, when used in state or federal government owned vehicles. Special fuels include natural gas, propane, hydrogen, and fuel suitable for use in diesel engines. In addition, state excise tax paid on special fuels used in state or federal government vehicles is subject to a refund, as long as the tax was originally paid directly to a special fuel vendor. The tax refund is not available for special fuels used while idling. Idling means a period of time greater than 15 minutes when the motor vehicle is stationary with the engine operating.

(Reference Idaho Statutes 63-2401, 63-2402, and 63-2423)

Utility / Private Incentives

Dominion Energy - Idaho

Dominion Energy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Dominion Energy website.

Residential Incentives

Non-Residential Incentives

Idaho Power - Idaho

Idaho Power is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Idaho Power website.

Residential Incentives

Non-Residential Incentives

Rocky Mountain Power - Idaho

Rocky Mountain Power is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Rocky Mountain Power website.

Residential Incentives

Non-Residential Incentives

Laws and Regulations

Public Utility Definition

Individuals, corporations, or other legal entities that sell electricity for the purpose of charging electric vehicles are not under the jurisdiction of the Idaho Public Utility Commission.

(Reference Idaho Statutes 61-119)

Propane Dealer Requirements

Propane dealers must meet education, experience, and examination qualifications, and hold a valid individual license. Each propane fueling facility must be licensed. A fee of up to $500 is required for each license application, original license, and annual license renewal.

(Reference Idaho Statutes 54-5301 to 54-5317)

Biodiesel Definition

Biodiesel is defined as any fuel derived in whole or in part from agricultural products, animal fats, or the wastes from these products, and is suitable for use in diesel engines. A biodiesel blend is defined as any fuel produced by blending biodiesel with petroleum-based diesel to produce a fuel suitable for use in diesel engines.

(Reference Idaho Statutes 63-2401)

Ethanol Blended Fuel Definition

Ethanol blended fuel, such as gasohol, is defined as any gasoline blended with 10% or more of anhydrous ethanol.

(Reference Idaho Statutes 63-2401)

Electric Vehicle (EV) Fee

In addition to standard registration fees, all-electric vehicle owners must pay an annual fee of $140 and plug-in hybrid electric vehicle owners must pay an annual fee of $75. Neighborhood electric vehicles are exempt from the fee.

(Reference Idaho Statutes 49-457 )

Natural Gas Tax

Compressed natural gas used as a special motor fuel is subject to the state fuel excise tax rate of $0.32 per gasoline gallon equivalent, measured at 5.66 pounds (lbs.) or 126.67 cubic feet at a base temperature of 60 degrees Fahrenheit and a pressure of 14.7 lbs. per square inch. Liquefied natural gas is also subject to the excise tax rate of $0.349 per diesel gallon equivalent, measured at 6.06 lbs. For more information, see the Idaho Fuels Taxes and Fees website.

(Reference Idaho Statutes 63-2402 and 63-2424)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is defined as a self-propelled, electrically-powered, four-wheeled motor vehicle that does not produce emissions and conforms to the definition and requirements for low-speed vehicles specified in Title 49 of the Code of Federal Regulations, section 571.500. An NEV must be titled, registered, and insured according to state law and may only be operated by a licensed driver. NEVs may not be driven on any highway with a speed limit greater than 35 miles per hour (mph), or across any highway with a speed limit greater than 45 mph.

(Reference Idaho Statutes 49-123, 49-402, and 49-663)