Electricity Laws and Incentives in Federal

The list below contains summaries of all Federal laws and incentives related to electricity.

Incentives

Advanced Energy Research Project Grants

The Advanced Research Projects Agency - Energy (ARPA-E) was established within the U.S. Department of Energy with the mission to fund projects that will develop transformational technologies that reduce the nation's dependence on foreign energy imports; reduce U.S. energy related emissions, including greenhouse gases; improve energy efficiency across all sectors of the economy; and ensure that the United States maintains its leadership in developing and deploying advanced energy technologies. The ARPA-E focuses on various concepts in multiple program areas including, but not limited to, vehicle technologies, biomass energy, and energy storage. For more information, visit the ARPA-E website.

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov

Advanced Technology Vehicle (ATV) and Alternative Fuel Infrastructure Manufacturing Incentives

The U.S. Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing Loan Program may offer direct loans to eligible manufacturers for up to 30% of the cost of re-equipping, expanding, or establishing manufacturing facilities in the United States used to produce qualified ATVs, ATV components, or alternative fuel infrastructure, including associated hardware and software. Qualified ATVs are light-, medium-, and heavy-duty ultra-efficient vehicles that meet specified federal emission standards and fuel economy requirements, and emit low or zero exhaust. Ultra-efficient vehicles are fully closed compartment vehicles, designed to carry at least two adult passengers, which achieve at least 75 miles per gallon while operating on gasoline or diesel fuel, as hybrid electric vehicles operating on gasoline or diesel fuel, or as fully electric vehicles. Qualified components must be designed for ATVs and installed for the purpose of meeting ATV performance requirements, as determined by DOE. For more information, see the DOE’s ATVs Manufacturing Loan Program website, the ATVs Manufacturing Loan Program fact sheet, and the final rule.

(Reference 42 U.S. Code 17013 and Public Law 117-169)

Airport Zero Emission Vehicle (ZEV) and Infrastructure Incentives

The Zero Emissions Airport Vehicle and Infrastructure Pilot Program provides funding to airports for up to 50% of the cost to acquire ZEVs and install or modify supporting infrastructure for acquired vehicles. Grant funding must be used for airport-owned, on-road vehicles used exclusively for airport purposes. Vehicles and infrastructure must meet the Federal Aviation Administration’s Airport Improvement Program requirements, including Buy American requirements. To be eligible, an airport must be for public use. The program will give priority to applicants located in nonattainment areas, as defined by the Clean Air Act, and projects that achieve the greatest air quality benefits, as measured by the amount of emissions reduced per dollar of funds spent under the program. For more information, see the Zero Emissions Airport Vehicle and Infrastructure Pilot Program website.

(Reference Public Law 112-95 and 49 U.S. Code 47136a)

Alternative Fuel Infrastructure Tax Credit

For alternative fuel vehicle (AFV) infrastructure placed in service prior to January 1, 2023, see the Pre-2023 Alternative Fuel Infrastructure Tax Credit entry.

Installations Beginning January 1, 2023

The Alternative Fuel Vehicle Refueling Property Credit is available for qualified AFV fueling property installed in qualified locations on or after January 1, 2023, and through December 31, 2032. A single item of 30C property is each charging port or fuel dispenser, as well as each energy storage property for electricity, hydrogen, natural gas, propane, E85, or biodiesel blends of at least 20% (B20+). Components and parts that are essential to the operation of the charging port or fuel dispenser, including labor costs for constructing and installing the property, are also eligible for the 30C credit. Businesses are eligible for a tax credit of:

• 6% of the depreciable costs, up to $100,000 per item; or,
• 30% of the depreciable costs, up to $100,000 per item, if the installation meets U.S. Department of Labor prevailing wage and apprenticeship requirements.

For more information, see the Alternative Fuel Vehicle Refueling Property Credit proposed rule.

Tax exempt entities, including state and local governments, may be eligible to receive this credit in the same amount as businesses, via IRS elective pay provisions. For elective pay eligibility requirements, please see the IRS Elective Pay and Transferability website.

Consumers who purchase qualified alternative fueling equipment for installation at their principal residence in qualified locations on or after January 1, 2023, and through December 31, 2032, may receive a tax credit of up to 30% of the cost, up to $1,000.

To be eligible, all qualified fueling equipment also must be installed in a population census tract that is a low-income community or not an urban area. To help determine if an installation location is in a qualified census tract, see the IRS Guidance on the Qualified Alternative Fuel Vehicle Refueling Property Credit and Argonne National Laboratory’s 30C Tax Credit Eligibility Locator tool and list of frequently asked questions.

Additional requirements may apply. For further details, see the IRS Inflation Reduction Act of 2022 website and IRS Form 8911, which is available on the IRS Forms and Publications website. Additional location eligibility information is available in the IRS Guidance on Satisfying the Geographical Requirements of the Section 30C Alternative Fuel Vehicle Refueling Property Credit. For more information, including frequently asked questions and an eligibility locator map, see the Argonne National Laboratory Refueling Infrastructure Tax Credit website.

(Reference 26 U.S. Code 30C, 30D, 38, and 6417 and Public Law 117-169)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Alternative Fuel Vehicle (AFV) Research and Development Grants

The U.S. Department of Energy (DOE) provides grants of up to $200,000 for the research and development of commercial innovations related to electric vehicle (EV) charging infrastructure, EV batteries, and biodiesel, hydrogen and fuel cell vehicle technologies. Eligible applicants include domestic small businesses. Additional terms and conditions apply. For more information, see the DOE Small Business Innovation Research and Small Business Technology Transfer website.

(Reference Public Law 95-91 and 15 U.S. Code 638)

Bus and Bus Facilities Grants

The U.S. Department of Transportation’s Federal Transit Administration (FTA) offers grants through the Buses and Bus Facilities Program to replace, rehabilitate, and purchase buses, vans, and related equipment, and to construct associated bus facilities, including low or zero emission vehicles or facilities. Additionally, funding may be requested for workforce development training or training at the National Transit Institute. Eligible applicants include state, local, and tribal governments that allocate funds to or operate fixed-route bus services, and eligible subrecipients include private nonprofit organizations engaged in public transportation. For more information, including funding availability and timelines, see the FTA Buses and Bus Facilities website.

(Reference 49 U.S. Code 5312 and 5339 and Public Law 117-58)

Carbon Reduction Program (CRP)

The U.S. Department of Transportation (DOT) established a carbon reduction formula program for states to reduce transportation emissions. Eligible state funding activities include truck stop electrification, diesel engine retrofits, vehicle-to-infrastructure communications equipment, public transportation, port electrification, and deployment of alternative fuel vehicles, including charging or fueling infrastructure and the purchase or lease of zero emission vehicles. At the request of a state, DOT must provide technical assistance in the development of the carbon reduction strategy. State carbon reduction strategies must be updated at least once every four years. State projects are treated as Federal-aid Highway Program projects. Additional funding eligibility and considerations will apply. For more information, see the DOT CRP.

(Reference Public Law 117-58 and 23 U.S. Code 175)

Charging and Fueling Infrastructure Grants

The U.S. Department of Transportation (DOT) Federal Highway Administration (FHWA) Charging and Fueling Infrastructure Discretionary Grant Program (CFI Program) offers funding to deploy publicly accessible electric vehicle charging and alternative fueling infrastructure in urban and rural communities and along Alternative Fuel Corridors (AFC). The CFI Program offers two types of funding opportunities: the Community Charging and Fueling Grants (Community Program) and the Alternative Fuel Corridor Grants (Corridor Program). Award amounts and cost share requirements may vary.

Infrastructure deployments funded by the Community Program must be located on public roads or publicly accessible locations, including public parking facilities, public buildings, public schools, or public parks. Low-income, underserved, rural, and high-density communities will be prioritized for Community Program funding. Corridor Program grants are available to infrastructure deployments along designated AFCs and for educational and community engagement activities. Eligible applicants include metropolitan planning organizations; U.S. territories; special purpose districts and public authorities; and state, local, and tribal governments.

For more information, including eligibility requirements and funding availability, see the DOT FHWA CFI Program website.

(Reference Public Law 117-58 and 23 U.S. Code 151)

Clean School Bus

The U.S. Environmental Protection Agency’s (EPA) Clean School Bus program provides funding to eligible applicants for the replacement of existing school buses with clean, alternative fuel school buses or zero emission school buses. EPA may award up to 100% of the cost of the replacement bus, charging equipment, or fueling infrastructure. Alternative fuels include electricity, natural gas, hydrogen, or propane. Eligible applicants are school districts, state and local government programs, federally recognized Indian tribes, non-profit organizations, and eligible contractors. EPA will prioritize funding for high-need local education agencies; low income, rural and tribal schools; and, applications that cost share through public-private partnerships, grants from other entities, or school bonds. For more information, including funding availability, timeline, and application materials, see the EPA Clean School Bus website.

(Reference Public Law 117-58 and 42 U.S. Code 16091)

Commercial Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Beginning January 1, 2023, a tax credit is available to businesses and tax-exempt organizations for the purchase of new EVs and FCEVs. Vehicles with a gross vehicle weight rating (GVWR) below 14,000 pounds (lbs.) must have a battery capacity of at least seven kilowatt-hours (kWh) and vehicles with a GVWR above 14,000 lbs. must have a battery capacity of at least 15 kWh. The tax credit amount is equal to the lesser of the following amounts:

• 15% of the vehicle purchase price for plug-in hybrid electric vehicles
• 30% of the vehicle purchase price for EVs and FCEVs
• The incremental cost of the vehicle compared to an equivalent internal combustion engine vehicle

Maximum tax credits may not exceed $7,500 for vehicles under 14,000 lbs. and $40,000 for vehicles above 14,000 lbs. Businesses may not combine this tax credit with the Clean Vehicle Tax Credit.

For more information, see the Internal Revenue Service (IRS) Commercial Clean Vehicle Credit website and the IRS Fact Sheet for New, Previously Owned, and Qualified Commercial Clean Vehicle Credits.

(Reference Public Law 117-169 and 26 U.S. Code 45W)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Community Development Electric Vehicle (EV) Charging Infrastructure Grants

The U.S. Department of Housing and Urban Development (HUD) offers grants for the installation of EV chargers through the Community Development Block Grant (CDBG). Eligible applicants include principal cities of metropolitan statistical areas, metropolitan cities with populations over 50,000, qualified urban counties with populations over 200,000, state governments, and insular areas. The CDBG may be used as a match for some federal programs. Additional terms and conditions apply. For more information, see the HUD CDBG website.

(Reference Public Law 93-383, Public Law 94-502, Public Law 95-479, Public Law 99-576, Public Law 101-189, Public Law 102-40, and 42 U.S. Code 5301)

Community Electric Vehicle Charging Grants

The U.S. Department of Transportation and the U.S. Department of Energy’s Joint Office of Energy and Transportation (Joint Office) offers grants of up to $4 million for projects that expand community e-mobility access and provide clean reliable energy. Topic areas include solving no-home charging, electrifying light- and medium-duty fleets, and developing managed charging programs. Grants are available for planning projects as well as demonstration and deployment projects, which have a minimum cost share requirement of 50%. Eligible applicants include universities; businesses; non-profit organizations; and state, local, and tribal governments. Terms and conditions may vary by topic area. For more information, see the Joint Office’s Communities Taking Charge website.

(Reference Public Law 11-58 and 23 U.S. Code 151)

Congestion Mitigation and Air Quality (CMAQ) Improvement Program

The CMAQ Program provides funding to state departments of transportation (DOTs), local governments, and transit agencies for projects and programs that help meet the requirements of the Clean Air Act by reducing mobile source emissions and regional congestion on transportation networks. Eligible activities include transit improvements, travel demand management strategies, congestion relief efforts (such as high occupancy vehicle lanes), diesel retrofit projects, alternative fuel vehicles and infrastructure, and medium- or heavy-duty zero emission vehicles and related charging equipment. Projects supported with CMAQ funds must demonstrate emissions reductions, be located in or benefit a U.S. Environmental Protection Agency-designated nonattainment or maintenance area, and be a transportation project. For more information, see the Bipartisan Infrastructure Law CMAQ fact sheet and CMAQ Improvement Program website.

(Reference Public Law 117-58, Public Law 112-141, and 23 U.S. Code 149 and 151)

Electric Vehicle (EV) Charging Infrastructure Connection Funding

The U.S. Department of Housing and Urban Development (HUD) offers funding for utility connections that support EV charging infrastructure through the HOME Investment Partnerships Program (HOME). Eligible applicants include state and local governments. HOME may provide applicants with grants, direct loans, loan guarantees, credit enhancements, rental assistance, or security deposits. For more information, see the HUD HOME website.

(Reference Public Law 101-625 and 42 U.S. Code 12741-12756)

Electric Vehicle (EV) Charging Reliability Grants

The U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA) EV Charger Reliability and Accessibility Accelerator offers funding for the repair and replacement of existing, non-operational publicly accessible Level 2 and direct current fast charging (DCFC) stations. Funding is available for up to 80% of eligible project costs. Eligible applicants include State departments of transportation and local governments. For more information, see the DOT FHWA EV Charger Reliability and Accessibility Accelerator website.

(Reference Public Law 117-58)

Electric Vehicle (EV) Charging and Clean Transportation Grants

The U.S. Department of Energy (DOE) provides grants for transportation decarbonization research projects. Priority will be given to projects that include:

• Cost-effective deployment of EV charging for those without access to home charging;
• Innovative solutions to improve mobility options for underserved communities;
• Community engagement to accelerate clean transportation options in underserved communities;
• Research and development to reduce EV battery size and cost, increase EV battery range, and decrease EV battery emissions;
• Electrification of off-road and non-road vehicles, including agricultural, construction, rail, marine, and aviation;
• Materials technologies to improve EV efficiency and affordability;
• Use of the alternative fuels in commercial off-road vehicle technologies, including natural gas, hydrogen, and renewable propane;
• Planning and development of medium- and heavy-duty EV charging and hydrogen fueling corridors and advanced engine and fuel technologies to improve fuel economy and reduce greenhouse gas emissions

Applicants must demonstrate how proposed projects will benefit underserved communities that lack access to clean transportation options.

(Reference Public Law 109-58 and 42 U.S. Code 16191)

Electric Vehicle (EV) Infrastructure Grants and Loan Guarantees

The U.S. Department of Agriculture (USDA) Rural Energy for America Program (REAP) provides loan guarantees and grants to agricultural producers and rural small businesses to purchase renewable energy systems or make energy efficiency improvements, including EV charging stations. Eligible EV charging stations may only be used for private fleet purposes and may not dispense electricity for retail use. The maximum grant award is 25% of project costs. REAP funding availability is subject to congressional appropriations. Additional terms and conditions apply. For more information, see the USDA Energy Programs website, REAP website, and EV Infrastructure fact sheet.

(Reference Public Law 113-79, 7 U.S. Code 8107, and Public Law 112-240)

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Manufacturing Loans

The U.S. Department of Energy (DOE) provides grants or loan guarantees through the Loan Guarantee Program for the domestic production of efficient hybrid vehicles, plug-in hybrid electric vehicles, all-electric vehicles, and hydrogen fuel cell electric vehicles. The program is not intended for research and development projects. DOE may issue loan guarantees for at least 50% of the amount of the loan for an eligible project. Eligible projects may include the deployment of fueling infrastructure, including associated hardware and software, for alternative fuels. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Department’s Federal Financing Bank. For more information, see the DOE Loan Guarantee Program website and the Alternative Fuel Infrastructure fact sheet.

Point of Contact
Loan Guarantee Program
U.S. Department of Energy
Phone: (202) 586-8336
lgprogram@hq.doe.gov
http://www.energy.gov/lpo/loan-programs-office

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Manufacturing Tax Credit

Qualified advanced energy projects are eligible for a tax credit for project investments to reequip, expand, or establish certain manufacturing facilities. Eligible projects that meet prevailing wage and apprenticeship requirements may receive a 30% tax credit, and projects that do not meet prevailing wage and apprenticeship requirements may receive a 6% tax credit. Credits cannot be allocated to projects located in census tracts where projects have been previously allocated. Qualifying advanced energy project include, but are not limited to, projects that re-equip, expand, or establish a manufacturing or industrial facilities that produce or recycle light-, medium-, and heavy-duty EVs, FCEVs, EV charging stations, and hydrogen fueling stations. Additional terms apply. For more information, see the IRS Qualified Advanced Energy Project Credit website.

(Reference Public Law 117-169 and 26 U.S. Code 48C)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

The Inflation Reduction Act of 2022 (Public Law 117-169) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022. Additional requirements apply for vehicles placed in service (delivered) on or after January 1, 2023, and the amount of the credit will depend on whether the vehicle meets new critical minerals and battery components requirements for vehicles placed in service after April 17, 2023. See the IRS Clean Vehicle Credit and final guidance for more information. Taxpayers who purchase an eligible vehicle may qualify for a tax credit of up to $7,500. Additional details are provided below based on when the vehicle is purchased or placed-in-service.

Vehicles Placed in Service on or After April 18, 2023

For vehicles delivered on or after April 18, 2023, limitations apply that went into effect January 1, 2023, related to the vehicle’s manufacturer’s suggested retail price (MSRP), the buyer’s modified adjusted gross income, and the vehicle’s battery capacity. A North American final assembly requirement applies for vehicles purchased on or after August 17, 2022. Additional critical mineral and battery component requirements also apply as of April 18, 2023, which alter how the tax credit is calculated and may alter the amount of the tax credit available. These latter requirements came into effect upon the publication of the Treasury Department’s guidance document regarding the critical mineral and battery component requirements. Vehicles that meet the critical mineral requirements are eligible for a $3,750 tax credit, and vehicles that meet the battery component requirements are eligible for a $3,750 tax credit. Vehicles meeting both the critical mineral and the battery component requirements are eligible for a total tax credit of $7,500.

Vans, sport utility vehicles, and pickup trucks must not have an MSRP above $80,000, and all other vehicles may not have an MSRP above $55,000. The MSRP can be found on the vehicle’s window sticker, which is also known as the “Monroney label”; the MSRP for this purpose includes any trim, options, or accessories for the particular vehicle and excludes the destination fee and dealer-provided options and accessories.

Additionally, a taxpayer’s eligibility for the tax credit may be limited by thresholds for modified adjusted gross income (modified AGI); only individuals having a modified AGI below the following thresholds for the current tax year or the prior tax year are eligible for the tax credit:

• $300,000 for joint filers
• $225,000 for head-of-household filers
• $150,000 for all other filers

To be eligible for the Clean Vehicle Credit, the battery powering the vehicle must have a capacity of at least seven kilowatt-hours (kWh). The amount of the credit depends on whether the vehicle meets certain critical minerals and battery component requirements.

Critical Minerals: To be eligible for the $3,750 critical minerals portion of the tax credit, the percentage of the value of the battery’s critical minerals that are extracted or processed in the United States or a U.S. free-trade agreement partner or recycled in North America, must meet or exceed the following thresholds:

Battery Components: To be eligible for the $3,750 battery components portion of the tax credit, the percentage of the value of the battery’s components that are manufactured or assembled in North America must meet or exceed the following thresholds:

Further guidance on additional 30D requirements is forthcoming. For more information, including additional eligibility requirements, see the IRS Clean Vehicle Credit website.

Vehicles Sold on or After January 1 and Placed-in-Service Before April 18, 2023

Beginning January 1, 2023, the Clean Vehicle Credit (CVC) provisions removed the manufacturer sales caps for vehicles sold after January 1, 2023, expanded the scope of eligible vehicles to include both EVs and FCEVs, and required that the battery powering the vehicle has a capacity of at least seven kilowatt-hours (kWh). An available tax credit under the CVC may be limited by the vehicle’s manufacturer suggested retail price (MSRP) and the buyer’s modified adjusted gross income (as addressed above). The North American final assembly requirement continues to apply.

For vehicles placed in service before April 18, 2023, the available CVC tax credit is a base amount of $2,500 plus, for a vehicle that draws propulsion energy from a battery with at least 7 kWh of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kWh. The total tax credit available for a vehicle may not exceed $7,500.

Vehicles Purchased Between August 17 and December 31, 2022

Qualifying EVs purchased and delivered between August 17, 2022, and December 31, 2022, are eligible for the tax incentive as described below for vehicles purchased before August 17, 2022, but are limited to vehicles with final assembly in North America. Manufacturer sales caps on vehicles apply. Note that for some manufacturers, the assembly location may vary because some models are produced in multiple locations. The assembly location of a particular vehicle should be confirmed by referring to its Vehicle Identification Number (VIN) using the U.S. Department of Transportation’s VIN decoder or an information label affixed to the vehicle.

Vehicles Purchased Before August 17, 2022

Qualifying EVs purchased before August 17, 2022, are eligible for a tax credit that is available for the purchase of a new qualified EV that draws propulsion from a battery that has at least five kilowatt-hours (kWh) of capacity, uses an external source of energy to charge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500 based on each vehicle’s traction battery capacity. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified PEVs have been sold by that manufacturer for use in the United States. This tax credit is also available for future EV owners with a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022. For more information, including qualifying vehicles and sales by manufacturer, see the IRS Clean Vehicle Credit website.

(Reference Public Law 117-169 and 26 U.S. Code 30D)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Electric Vehicle and Fuel Cell Electric Vehicle Manufacturing Grants

The U.S. Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains (MESC) provides grants of up to $500,000,000 for the domestic production of hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles and components through the Domestic Manufacturing Conversion Grants Program. A minimum 50% non-federal cost share is required. Funding will prioritize projects that address the conversion of manufacturing facilities that have recently ceased operation or will cease operation in the near future. For more information, see the MESC Domestic Manufacturing Conversion Grants website.

(Reference 42 U.S. Code 16062 and Public Law 117-169)

Environmental Justice Community Technical Assistance Program

The U.S. Department of Energy (DOE) Communities Local Energy Action Program (LEAP) Pilot facilitates sustained, community-wide economic and environmental benefits through DOE’s clean energy deployment work. This technical assistance opportunity is specifically open to low-income, energy-burdened communities that are also experiencing either direct environmental justice impacts, or direct economic impacts from a shift away from historical reliance on fossil fuels. DOE will provide technical assistance services to support up to 36 communities to develop their own community-driven clean energy transition approach. For more information, visit the DOE Communities LEAP website.

Federal Transportation Facility Improvement Program

The U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA) provides funding for the improvement of transportation facilities on or adjacent to Federal lands through the Federal Lands Access Program (FLAP). Eligible electric mobility projects include light-duty electric vehicle (EV) charging, public transportation charging, commercial charging infrastructure planning, workforce development, and vehicle acquisition. Eligible applicants include state departments of transportation, local governments, and tribal governments. Projects must meet the FHWA EV Charging Minimum Standards Rule. For more information, see the FHWA FLAP website, the FLAP fact sheet, and the DOT Federal Funding Programs website.

(Reference Public Law 112-141, Public Law 117-58, and 23 U.S. Code 204)

Freight Efficiency and Zero-Emission Vehicle Infrastructure Grants

The U.S. Department of Transportation (DOT) Infrastructure for Rebuilding America (INFRA) grant program provides federal financial assistance to eligible transportation infrastructure projects that address climate change and environmental justice impacts, among other key objectives. Eligible projects include, but are not limited to, supporting a modal shift in freight or passenger movement to reduce vehicle miles traveled, developing zero-emission vehicle infrastructure, using one or more demand management strategies to reduce congestion and greenhouse gas emissions, and supporting the installation of electric vehicle charging stations along the National Highways System. Eligible applicants for INFRA grants are states, metropolitan planning organizations that serve urbanized areas with a population of more than 200,000 individuals, local governments, political subdivisions, port authorities, and tribal governments. Additional terms and conditions apply. For more information, including funding application deadlines, see the DOT INFRA Grants website.

Heavy-Duty Zero Emission Vehicle (ZEV) and Infrastructure Grants

The U.S. Environmental Protection Agency (EPA) offers grants for heavy-duty ZEVs and associated infrastructure. Grant award amounts vary and may cover up to 100% of total project costs. Eligible project costs include:

• The incremental cost of a Class 6 or 7 electric vehicle;
• Capital, installation, operation, and maintenance costs of ZEV charging or refueling infrastructure;
• Workforce development and training programs to support the maintenance, charging, fueling, and operation of ZEVs; and,
• Planning and technical activities that support the adoption and deployment of ZEVs.

Eligible applicants include state governments, municipalities, tribal governments, and non-profit school transportation associations. Additional funding is available for projects located in nonattainment communities. For more information, see the EPA Clean Heavy-Duty Vehicle Program website.

(Reference Public Law 117-169 and 42 U.S. Code 7432)

Innovative Research and Development Competitive Prizes

The American-Made Challenges are a series of prize competitions, in partnership with the National Renewable Energy Laboratory, that are designed to incentivize the nation’s entrepreneurs to reenergize innovation, reassert American leadership in the energy marketplace, and connect entrepreneurs to the private sector and U.S. Department of Energy’s national laboratories. These challenges seek to lower the barriers U.S.-based innovators face by spurring manufacturing, developing innovative solutions and products, and creating new domestic jobs and opportunities through public-private partnerships. For more information, including current prize challenges, visit the American-Made Challenges website.

Large-Scale Electric Vehicle (EV) Charger Planning and Siting Grants

The U.S. Department of Energy (DOE) offers grants of up to $2 million for large-scale renewable energy planning and siting projects, including EV chargers, through the Renewable Energy Siting through Technical Engagement and Planning (R-STEP) Program. Eligible applicants include state-based collaboratives, which state energy offices and universities are encouraged to lead. For more information, see the DOE R-STEP website.

(Reference Public Law 103-337, Public Law 105-261, Public Law 111-84, and 15 U.S. Code 3715)

Low and Zero Emission Public Transportation Funding

The Department of Transportation’s Federal Transit Administration (FTA) offers grants through the Low or No Emission Grant (Low No) Program to local and state government entities for the purchase or lease of low or zero emission transit buses, in addition to the acquisition, construction, or lease of supporting facilities. Additionally, funding may be requested for workforce development training or training at the National Transit Institute. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle. Applicants with projects that include zero emission vehicles (ZEVs) are required to submit a ZEV fleet transition plan. The plan must include:

• A long-term fleet management plan that includes a strategy for how Low No Program funds will be used for resources and acquisitions;
• A discussion on the availability of current and future resources for ZEV transition and implementation;
• An assessment of policy and legislation impacting relevant technologies;
• An evaluation of existing and future facilities;
• A description the applicant’s relationship with the utility or alternative fuel provider; and
• An assessment on how ZEVs will impact the applicant’s workforce.

For more information, including details about the current round of funding, see the FTA Low No Program website.

(Reference 49 U.S. Code 5312 and 5339 and Public Law 117-58)

Low or Zero Emission Ferry Program

The U.S. Department of Transportation’s Federal Transit Administration (FTA) provides funding through the Electric or Low-Emitting Ferry Pilot Program for the purchase of electric or low-emitting ferries and the electrification of or other reduction of emissions from existing ferries. Low-emitting ferries must use an alternative fuel, such as methanol, natural gas, propane, hydrogen, and electricity. Awards must include a ferry service that serves the State with the largest number of Marine Highway System miles and a bi-state ferry service with an aging fleet. Funding is authorized through fiscal year 2026. For more information, see the FTA Electric or Low-Emitting Ferry Pilot Program website and fact sheet.

(Reference Public Law 117-58 and 23 U.S. Code 147)

Medium- and Heavy-Duty (MHD) Electric Vehicle (EV) Charger Grants

The U.S. Department of Energy’s (DOE) Vehicle Technology Office (VTO) offers grants of up to $36 million for the design, development, and demonstration of MHD EV charging infrastructure through the SuperTruck Charge program. The SuperTruck Charge program aims to identify large scale replicable direct current (DC) fast chargers to serve MHD EV fleets along major corridors and in rural areas with limited grid capacity. Eligible applicants include universities; businesses; nonprofit organizations; and state, local, and tribal governments. Additional terms and conditions may apply. For more information, see the DOE SuperTruck Charge website.

(Reference Public Law 109-58 and 42 U.S. Code 16191)

National Alternative Fuels Corridors

The U.S. Department of Transportation Federal Highway Administration (FHWA) designates a national network of electric vehicle (EV) charging and hydrogen, propane, and natural gas fueling infrastructure along national highway system corridors. To designate these Alternative Fuel Corridors (AFC), FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders.

FHWA must establish an AFC grant program to award grants to eligible entities, by November 15, 2022. During the designation and redesignation process, in consultation with the U.S. Department of Energy, FHWA will issue a report identifying charging and fueling infrastructure, best practices and guidance for predictable infrastructure deployment, analyzing standardization needs for fuel providers and purchasers, and reestablishing the goal of achieving strategic deployment of fueling infrastructure in the designated corridors.

For the 2023 Request for Nominations (RFN), state and local officials must submit nominations to FHWA by June 21, 2023. State and local agencies may nominate additional corridors, extend currently designated corridors, nominate another fuel along an already designated corridor, and update the status of previously designated corridors.

The Round 7 RFN and AFC designation is tied to funding eligibility under the NEVI Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program. The FHWA encourages nominations that focus on EV charging infrastructure along Interstate corridors, but nominations may also be submitted elsewhere on the National Highway System. Corridor projects along Round 7 AFCs are not eligible for the 2023 Notice of Funding Opportunity for the Charging and Fueling Infrastructure Discretionary Grant Program, which closes June 13, 2023. When considering Round 7 nominations, FHWA strongly encourages segments of Interstates that do not currently have an EV designation, particularly longer Interstate segments that provide important through connectivity to adjoining States.

FHWA is also requesting input on proposed Freight EV Corridors designation, outlined in the Round 7 RFN.

FHWA must update and redesignate corridors periodically thereafter. For more information, including FHWA areas of interest for corridor designations and infrastructure development, see the FHWA AFC website.

National Electric Vehicle Infrastructure (NEVI) Formula Program

The U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA) NEVI Formula Program provides funding to states to strategically deploy electric vehicle (EV) charging stations and to establish an interconnected network to facilitate data collection, access, and reliability. Funding is available for up to 80% of eligible project costs, including:

• The acquisition, installation, and network connection of EV charging stations to facilitate data collection, access, and reliability;
• Proper operation and maintenance of EV charging stations; and,
• Long-term EV charging station data sharing.

EV charging stations must be non-proprietary, allow for open-access payment methods, be publicly available or available to authorized commercial motor vehicle operators from more than one company, and be located along designated FHWA Alternative Fuel Corridors (AFCs). If a state and DOT determine that all AFCs in the state have been fully developed, then the state can propose alternative public locations and roads for EV charging station installation.

FHWA must distribute the NEVI Program Formula Program funds made available each fiscal year (FY) through FY 2026, so that each state receives an amount equal to the state FHWA funding formula determined by 23 U.S. Code 104. To receive funding, states must submit plans to the FHWA and the Joint Office of Energy and Transportation for review and public posting annually, describing how the state intends to distribute NEVI funds. The FHWA announced approval of all FY22/23 state plans on September 27, 2022 and approval of all FY24 state plans in November 2023.

Additionally, 10% of NEVI Formula funding is set aside each FY for DOT to fund grants for states and localities requiring additional assistance to strategically deploy EV charging stations under this Program. Additional funding eligibility and considerations will apply.

For additional information, see the FHWA NEVI website and the Joint Office website.

(Reference Public Law 117-58 and 23 U.S. Code 165)

National Multimodal Cooperative Freight Research Program

The U.S. Department of Transportation (DOT) established a national cooperative freight transportation research program (Program), administered in collaboration with the National Academy of Sciences (NAS). NAS established an advisory committee to recommend a national research agenda on improvements in the efficiency and resiliency of freight movement, including adapting to future trends such as zero emissions transportation. NAS may award research contracts or grants under the Program.

DOT shall and publish annual reports describing the ongoing research and findings. Funding will be made available each fiscal year until November 15, 2026, and will remain available until expended for this Program. For more information, see the NAS Program website.

(Reference Public Law 117-58 and 49 U.S. Code 70205)

Natural Gas Vehicle (NGV) and Electric Vehicle (EV) Weight Exemption

NGVs and EVs may exceed the federal maximum gross vehicle weight limit for comparable conventional fuel vehicles by up to 2,000 pounds (lbs.). The NGV or EV must not exceed a maximum gross vehicle weight of 82,000 lbs.

(Reference 23 U.S. Code 127(s) and Public Law 116-6)

Neighborhood Electric Vehicle (EV) Charging Infrastructure Grants

The U.S. Department of Housing and Urban Development (HUD) offers grants of up to $500,000 for the planning or implementation of neighborhood revitalization activities, including EV charging infrastructure installation, through the Choice Neighborhoods program. Eligible applicants include local governments, tribal governments, public housing agencies, and nonprofit organizations. For more information, see the HUD Choice Neighborhoods website.

(Reference Public Law 102-550 and 42 U.S. Code 1437v)

Port Electrification Grants

The U.S. Environmental Protection Agency (EPA) offers funding for the purchase or installation of zero emission port equipment or technology through the Clean Ports Program. Eligible applicants must include port authorities, state governments, local governments, tribal governments, air pollution control agencies, and private entities that own, operate, or use port. Zero emission technology includes all-electric vehicles and fuel cell electric vehicles (FCEVs). Additional funding is available for projects located in nonattainment communities. For more information, see the EPA Ports Initiative website.

(Reference Public Law 117-169 and 42 U.S. Code 7433)

Port Infrastructure Development Grants

The U.S. Department of Transportation (DOT) Port Infrastructure Development Program (PIDP) offers grants for projects that improve port resiliency to address sea-level rise, flooding, extreme weather events, earthquakes, and tsunami inundation, as well as projects that reduce or eliminate port-related criteria pollutant or greenhouse gas emissions. Funded projects may include:

• Port electrification or electrification master planning;
• Development of port or terminal micro-grids;
• Worker training to support electrification technology; and,
• Electric vehicle charging or hydrogen fueling infrastructure.

Eligible applicants include state and local governments, tribal governments, public agencies, and special purpose districts with transportation functions. For more information, see the DOT PIDP website.

(Reference Public Law 117-58 and 46 U.S. Code 50302)

Pre-2023 Alternative Fuel Infrastructure Tax Credit

Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2022, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Permitting and inspection fees are not included in covered expenses. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years.

For more information about claiming the credit, see IRS Form 8911, which is available on the IRS Forms and Publications website.

For information on the Alternative Fuel Infrastructure Tax Credit for installations beginning January 1, 2023, see the Alternative Fuel Infrastructure Tax Credit.

Pre-Owned Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Beginning January 1, 2023, the Clean Vehicle Credit (IRC 25E) provides a tax credit of up to $4,000 for the purchase of a pre-owned EV or FCEV. Eligible vehicles must be of a model year at least two years prior to the year of purchase and may not have a purchase price above $25,000. Individuals with a gross annual income below the following thresholds are eligible for the tax credit:

• $150,000 for joint filers

• $112,500 for head-of-household filers

• $75,000 for single filers

Only one tax credit may be claimed per vehicle. Individuals may not claim more than one pre-owned vehicle tax credit in a three-year period. For more information about claiming the credit, see Internal Revenue Service (IRS) Used Vehicle Credit website and Form 8936, which is available on the IRS Forms and Publications website, and the final rule.

(Reference Public Law 117-169 and 26 U.S. Code 25E)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Public Housing Electric Vehicle (EV) Charging Infrastructure Grants

The U.S. Department of Housing and Urban Development (HUD) offers grants for the improvement of public housing properties, including the installation of EV charging infrastructure, through the Rental Assistance Demonstration (RAD) program. Eligible applicants include public housing agencies and property owners. Additional terms and conditions apply. For more information, see the HUD RAD website.

(Reference Public Law 112-55, Public Law 113-76, Public law 113-235, Public law 114-113, Public Law 115-31, Public Law 117-103, Public Law 118-42, and 42 U.S. Code 1437f)

Public School Energy Program

The U.S. Department of Energy’s (DOE) Renew America’s Schools program provides funding for local educational agencies to complete energy improvements upgrades. Eligible activities include the installation of alternative fuel vehicle (AFV) fueling or charging infrastructure on school grounds and the purchase or lease of AFVs. Eligible AFVs include school buses and school fleet vehicles. Eligible project partners include governmental entities, for-profit entities, and non-governmental organizations. For more information, see the DOE Renew America’s Schools website.

(Reference Public Law 117-58 and 42 U.S. Code 18831)

Public Transportation Research, Demonstration, and Deployment Funding

The U.S. Department of Transportation’s Federal Transit Administration administers the Public Transportation Innovation Program. Financial assistance is available to local, state, and federal government entities; public transportation providers; private and non-profit organizations; and higher education institutions for research, demonstration, and deployment projects involving low or zero emission public transportation vehicles. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle.

For more information, see the Bipartisan Infrastructure Law Public Transportation Innovation fact sheet.

(Reference 49 U.S. Code 5312 and 5339, Public Law 114-94, Public Law 113-159, and Public Law 117-58)

Resilient Surface Transportation Grants

The U.S. Department of Transportation Federal Highway Administration (FHWA) established the Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation (PROTECT) Discretionary Grant Program to provide funding for projects that improve the resilience of the surface transportation system through support of planning activities, resilience improvements, community resilience and evacuation routes, and at-risk costal infrastructure. Eligible projects include those that demonstrate greenhouse gas reductions in the transportation sector through the transition to clean vehicles and fuels, including electrification.

For more information, including funding availability and timelines, see the FHWA PROTECT Program website.

(Reference Public Law 117-58 and 23 U.S. Code 176)

Rural Community Electric Vehicle (EV) Direct Loans and Grants

The U.S. Department of Agriculture (USDA) Community Facilities Direct Loan and Grant Program provides direct loans and grants to community-based nonprofit organizations to purchase, construct, or improve essential community facilities, purchase equipment, and pay related project expenses. Loans and grants may be used to purchase EVs for use by essential community services and EV charging stations for fleets, public parking locations, and community facilities. Interest rates for direct loans are determined by USDA Rural Development, and grants may cover up to 55% of project costs. Additional terms and conditions apply. For more information, see the USDA Community Facilities Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1989)

Rural Community Electric Vehicle (EV) Loan Guarantees

The U.S. Department of Agriculture (USDA) Community Facilities Guaranteed Loan Program provides loans to eligible lenders to develop renewable energy systems in rural areas, which include EVs for use by essential community services and EV charging stations for fleets, public parking locations, and community facilities. The maximum loan guarantee is $100 million. Entities eligible to receive loan guarantees include public entities, tribal governments, and non-profit organizations. Additional terms and conditions apply. For more information, see the USDA Community Facilities Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1989)

Rural Development Enterprise Electric Vehicle (EV) Charging Station Grants

The U.S. Department of Agriculture (USDA) Rural Business Development Grants Program provides enterprise grants for rural transportation improvement projects and the acquisition and development of buildings, equipment, access for streets and roads, and parking areas. Funding may be used to finance EV charging stations for retail and public use. Eligible applicants include state and local governments, tribal governments, and non-profit organizations primarily serving rural areas. Additional terms and conditions apply. For more information, see the USDA Rural Development Business Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1932)

Rural Electric Vehicle (EV) Charging Station Business Loan Guarantees

The U.S. Department of Agriculture (USDA) Business & Industry Guaranteed Loans Program provides loans guarantees for the purchase and development of land, buildings, and associated infrastructure for commercial or industrial use. Loans may be used to finance EV charging station equipment for retail and public use. Entities eligible to receive loan guarantees include individuals, commercial entities, non-profit organizations, state and local governments, and tribal governments. Additional terms and conditions apply. For more information, see the USDA Rural Development Business Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1932)

Rural Electric Vehicle (EV) Charging Station Business Loan Program

The U.S. Department of Agriculture (USDA) Intermediary Relending Program provides loans of up to $1 million to intermediaries that relend to businesses in rural communities. Loans may be used to finance EV charging stations. Entities eligible to receive loans include non-profit organizations, state and local governments, and tribal governments, and cooperatives. Additional terms and conditions apply. For more information, see the USDA Rural Development Business Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1932)

Rural Electric Vehicle (EV) Charging Station Economic Development Loans and Grants

The U.S. Department of Agriculture (USDA) Rural Economic Development Loans and Grants Program provides intermediary loans of up to $300,000 and grants of up to $2 million to rural utility organizations for projects that create and retain employment in rural areas. Funding may be used to finance EV charging stations for retail and public use. Additional terms and conditions apply. For more information, see the USDA Rural Development Business Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1932)

Rural Electric Vehicle (EV) Infrastructure Loans

The U.S. Department of Agriculture (USDA) Rural Energy Savings Program provides loans for cost-effective energy efficiency measures in rural areas. Loans may be used to finance consumer-owned EV chargers and the infrastructure necessary to supply EV chargers. Eligible borrowers include utilities; energy efficiency service providers; and state, local, and tribal governments. Additional terms and conditions apply. For more information, see the USDA Electric Programs website and EV Infrastructure fact sheet.

(Reference Public Law 113-79, Public Law 115-334, and 7 U.S. Code 8107a)

State Energy Program (SEP) Funding

The SEP provides grants to states to assist in designing, developing, and implementing renewable energy and energy efficiency programs, including programs to help reduce carbon emissions in the transportation sector by 2050 and accelerate the use of alternative transportation fuels for, and the electrification of, state government vehicles, fleet vehicles, taxis and ridesharing services, mass transit, school buses, ferries, and privately owned passenger and medium- and heavy-duty vehicles. Each state’s energy office receives SEP funding and manages all SEP-funded projects. States may also receive project funding from technology programs in the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) for SEP Special Projects. EERE distributes the funding through an annual competitive solicitation to state energy offices. SEP is authorized through fiscal year 2026.

For more information, see the SEP website.

(Reference Public Law 117-58 and 42 U.S. Code 6322 through 6325)

Transportation Electrification Technical Assistance and Funding

The National Renewable Energy Laboratory provides technical assistance and funding to increase energy resilience in coastal, remote, and island communities through the U.S. Department of Energy’s (DOE) Energy Transitions Initiative Partnership Project (ETIPP). Eligible uses include technical assistance to analyze the feasibility and impacts of transportation electrification. Eligible applicants include local governments, tribal governments, community-based organizations, special purpose districts, academic institutions, and utilities. Additional terms and conditions apply. For more information, see the DOE ETIPP website.

Transportation Energy Efficiency Grants

The U.S. Department of Energy (DOE) offers grants through the Energy Efficiency and Conservation Block Grant (EECBG) Program to reduce energy use and fossil fuel emissions, and to improve energy efficiency in transportation. Eligible projects include:

• Transportation energy conservation programs;
• Energy efficiency, renewable energy, and zero emission transportation and associated infrastructure financing programs; and
• Rebate, grant, or other incentive programs that fund the purchase and installation of energy efficiency, renewable energy, and zero emission transportation and associated infrastructure.

Eligible applicants include U.S. territories, state, local, and tribal governments. For more information, see the DOE EECBG Program website.

(Reference Public Law 117-58 and 42 U.S. Code 17154)

Transportation Sector Greenhouse Gas (GHG) Reduction Grant Program

The U.S. Environmental Protection Agency (EPA) offers grants for the development and implementation of plans to reduce GHG emissions and other harmful air pollution through the Climate Pollution Reduction Grants (CPRG) program. The CPRG program provides funding to projects targeting six sectors, including transportation. Eligible transportation projects include, but are not limited to, the deployment of electric vehicles and associated charging infrastructure, fleet electrification requirements, transportation pricing programs, and zero emission vehicle incentive programs. Eligible applicants include state and local governments, tribal governments, and coalitions of these entities. For more information, see the EPA CPRG website.

Truck Emissions Reduction Study and Grant at Port Facilities

The U.S. Department of Transportation (DOT) Federal Highway Administration (FHWA) Truck Emissions at Port Facilities (RTEPF) Grant Program provides funding to test, evaluate, and deploy projects that reduce port-related emissions from idling trucks. Eligible projects include port electrification and efficiency improvements, focusing on heavy-duty commercial vehicles, and other related projects. Grant funding is available for up to 80% of eligible project cost. Awards will be treated as Federal-aid Highway Program projects. Additional funding eligibility and considerations apply.

Eligible applicants for RTEPF funds include entities that have authority over, operate, or utilize port facilities or intermodal port transfer facilities; have authority over areas within or adjacent to ports and intermodal port transfer facilities; or test or evaluate technologies that reduce truck emissions at port facilities or intermodal port transfer facilities.

For more information see the FHWA Reduction of Truck Emissions at Port Facilities website.

(Reference Public Law 117-58 and 23 U.S. Code 151)

Zero Emission Vehicle Infrastructure and Advanced Vehicle Grants

The U.S. Department of Transportation (DOT) Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program provides federal financial assistance to eligible surface transportation infrastructure projects. Eligible projects include, but are not limited to, supporting connected, electric, and automated vehicles, a modal shift in freight or passenger movement to reduce greenhouse gas emissions, and the installation of zero-emission vehicle infrastructure. Eligible applicants for RAISE grants are state, local, tribal, and U.S. territories’ governments, including transit agencies, port authorities, metropolitan planning organizations, and other political subdivisions of state or local governments. Additional terms and conditions apply. For more information, see the DOT RAISE Grants website.

Laws and Regulations

Aftermarket Alternative Fuel Vehicle (AFV) Conversions

Conventional original equipment manufacturer vehicles altered to operate on propane, natural gas, methane gas, ethanol, or electricity are classified as aftermarket AFV conversions. All vehicle conversions, except those that are completed for a vehicle to run on electricity, must meet current applicable U.S. Environmental Protection Agency (EPA) standards. For more information about vehicle conversion certification requirements, see the Alternative Fuels Data Center's Vehicle Conversions website and EPA's Certification and Compliance for Vehicles and Engines website. (Reference 40 CFR 85 and Enforcement Policy on Vehicle and Engine Tampering and Aftermarket Defeat Devices)

Point of Contact
Regulatory Compliance
U.S. Environmental Protection Agency
Phone: (734) 214-4343
https://www.epa.gov/vehicles-and-engines

Alternative Fuel Definition

The following fuels are defined as alternative fuels by the Energy Policy Act (EPAct) of 1992: pure methanol, ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline; natural gas and liquid fuels domestically produced from natural gas; propane; coal-derived liquid fuels; hydrogen; electricity; pure biodiesel (B100); fuels, other than alcohol, derived from biological materials; and P-Series fuels. In addition, the U.S. Department of Energy may designate other fuels as alternative fuels, provided that the fuel is substantially non-petroleum, yields substantial energy security benefits, and offers substantial environmental benefits. For more information, see the EPAct website. (Reference 42 U.S. Code 13211)

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov

Alternative Fuel Labeling Requirements

Retailers offering alternative fuel for sale must ensure dispensers are labeled with information to help consumers make informed decisions about fueling a vehicle, including the name of the fuel and the minimum percentage of the main component of the fuel. Labels may also list the percentage of other fuel components. This requirement applies to, but is not limited to, the following fuel types: methanol, denatured ethanol, and/or other alcohols; mixtures containing 85% or more by volume of methanol and/or other alcohols; mixtures containing more than 10% but less than 83% by volume of ethanol; natural gas; propane; hydrogen; coal derived liquid biofuel; and electricity.

Fuel dispensers distributing biodiesel blends containing more than 5% biodiesel by volume must include the percentage of biodiesel included. For ethanol blends containing no greater than 50% ethanol by volume, retailers must post the exact percentage of ethanol concentration, rounded to the nearest multiple of 10. For ethanol blends containing more than 50% but no greater than 83% ethanol by volume, retailers must (1) post the exact percentage of ethanol concentration, (2) post the percentage rounded to the nearest multiple of 10, or (3) post notice that the fuel contains 51% to 83% ethanol.

Electric vehicle supply equipment (EVSE) manufacturers must determine and disclose (via a delivery ticket or permanent label or marking) kilowatt capacity, voltage, whether the voltage is alternating current or direct current, amperage, and whether the system is conductive or inductive.

(Reference 81 Federal Register 2054 and 16 CFR 306 and 309)

Point of Contact
Federal Trade Commission
Phone: (202) 326-2222
http://www.ftc.gov/

Electric Vehicle (EV) Battery Safety Research and Support

The National Highway Traffic Safety Administration (NHTSA) established the Battery Safety Initiative for Electric Vehicles (Initiative) to coordinate research and other activities relating to electric vehicle (EV) battery safety. The Initiative is responsible for:

• Collecting and analyzing data related to EV batteries;
• Examining field incidents and conducting battery safety investigations from EV crash and non-crash events;
• Researching and evaluating EV battery health, battery management systems and cybersecurity, and high-voltage battery charging failures and effects; and,
• Investigating safety-related battery defects.

The NHTSA Initiative also participates in the development of Global Technical Regulation (GTR) No. 20 for EV Safety which includes battery fire safety. For more information, see the NHTSA’s Initiative website.

Electric Vehicle (EV) Charger Standards

EV chargers funded under provisions outlined in 23 U.S. Code will be treated as Federal-aid Highway Program projects. EV chargers installed using these funds are restricted to those that implement non-proprietary charging connectors that meet applicable industry standards and allow for open access payment methods that are available to all members of the public to ensure secure, convenient, and equal access to the EV chargers.

(Reference Public Law 117-58 and 23 U.S. Code 109)

Electric Vehicle (EV) Studies

The U.S. Department of Energy (DOE) must conduct a study on the cradle-to-grave environmental impact of EVs. For more information, see the Argonne National Laboratory Cradle-to-Grave Lifecycle Analysis of U.S. Light-Duty Vehicle-Fuel Pathways: A Greenhouse Gas Emissions and Economic Assessment of Current (2020) and Future (2030-2035) Technologies report. DOE, in coordination with the U.S. State Department and the U.S. Department of Commerce, must also study the impact of forced labor in China on the EV supply chain.

(Reference 42 U.S. Code 16196 and Public Law 117-58)

Electric Vehicle Charging on Federal Property

The U.S. General Services Administration (GSA) or any federal agency may install electric vehicle supply equipment (EVSE) for federal employees and others authorized to park at federal facilities to charge their privately owned vehicles. Employees and other users must pay to reimburse federal agencies for the EVSE procurement, installation, and use. Federal agencies may provide EVSE through a contract with a vendor. GSA must submit a report to Congress by December 2018, and annually thereafter for 10 years, on the number of EVSE installed by GSA, the number of EVSE installation requests from other federal agencies, and the status of requests for EVSE from other federal agencies.

(Reference Public Law 114-94)

Electric Vehicle Working Group (EVWG)

The Secretaries of Transportation and Energy jointly established an EVWG to make recommendations regarding the development, adoption, and integration of light-, medium-, and heavy-duty electric vehicles (EVs) into the transportation and energy system of the United States. The EVWG is comprised of 25 members from federal agencies, the automotive industry, the energy industry, state and local governments, labor organizations, and the property development industry. The EVWG will produce three reports describing the status of EV adoption, including barriers and opportunities to scale up EV adoption, and recommendations for EV issues including EV charging station needs, manufacturing and battery costs, EV adoption for low- and moderate-income individuals and underserved communities, and EV charging station permitting and regulatory issues. The first report, Initial Priorities of the Electric Vehicle Working Group was published in April 2024. The second and third reports must be submitted in 2026 and 2028, respectively. Based on the EVWG reports, the Secretaries of Transportation and Energy must jointly develop, maintain, and update an EV strategy that includes how the federal, state, and local governments, and industry can establish quantitative transportation electrification targets, overcome barriers, provide public EV education and awareness, identify areas of opportunity in research and development to lower EV cost and increase performance, and expand EV charging station deployment. The Secretaries and the Working Group will use existing federal resources such as the Alternative Fuels Data Center, the Energy Efficient Mobility Systems program, and the Clean Cities and Communities Coalition Network. The EVWG was established on June 8, 2022, and will terminate upon the submission of the third and final report. For more information, see the EVWG website.

(Reference Public Law 117-58 and 23 U.S. Code 151)

High Occupancy Vehicle (HOV) Lane Exemption

States are allowed to exempt certified alternative fuel vehicles (AFVs) and electric vehicles (EVs) from HOV lane requirements within the state. Eligible AFVs are defined as vehicles operating solely on methanol, denatured ethanol, or other alcohols; a mixture containing at least 85% methanol, denatured ethanol, or other alcohols; natural gas, propane, hydrogen, or coal derived liquid fuels; or fuels derived from biological materials. EVs are defined as vehicles that are recharged from an external source of electricity and have a battery capacity of at least 4 kilowatt-hours. States are also allowed to establish programs allowing low-emission and energy-efficient vehicles to pay a toll to access HOV lanes.

Vehicles must be certified by the U.S. Environmental Protection Agency (EPA) and appropriately labeled for use in HOV lanes. The U.S. Department of Transportation (DOT) is responsible for planning and implementing HOV programs, including the low-emission and energy-efficient vehicle criteria EPA established. States that choose to adopt these requirements will be responsible for enforcement and vehicle labeling. The HOV exemption for AFVs and EVs expires September 30, 2025 and low-emission and energy-efficient vehicle toll-access to HOV lanes expired September 30, 2019.

(Reference Public Law 114-94 and 23 U.S. Code 166)

Joint Office of Energy and Transportation

The U.S. Department of Transportation (DOT) and the U.S. Department of Energy (DOE) established a Joint Office of Energy and Transportation (Joint Office) to study, plan, coordinate, and implement joint issues, including:

• Technical assistance related to the deployment, operation, and maintenance of electric vehicle (EV) chargers and hydrogen fueling infrastructure, vehicle-to-grid integration, and related programs and policies;
• Data sharing of installation, maintenance, and utilization to continue to inform the network build out of EV chargers and hydrogen fueling infrastructure;
• Performance of a national and regionalized study of EV chargers and hydrogen fueling infrastructure needs and deployment factors, to support grants for community resilience and EV integration;
• Development and deployment of training and certification programs;
• Electric infrastructure and utility accommodation planning in transportation rights-of-ways; and,
• Research, strategies, and actions to reduce transportation-related emissions and mitigate the effects of climate change.

The Joint Office created a public database that includes EV charger data maintained on the DOE Alternative Fuels Data Center’s Alternative Fueling Station Locator and potential EV charger locations identified by eligible entities. For more information, see the Joint Office website.

(Reference Public Law 117-58 and 23 U.S. Code 151)

National Zero-Emission Freight Corridor Strategy

The U.S. Department of Transportation and the U.S. Department of Energy’s Joint Office of Energy and Transportation (Joint Office) published the National Zero-Emission Freight Corridor Strategy to guide the deployment of commercial zero-emission medium- and heavy-duty vehicles (ZE-MHDVs) and associated infrastructure from 2024 to 2040. The National Zero-Emission Freight Corridor Strategy prioritizes infrastructure along the National Highway Freight Network (NHFN) to be implemented through the following four-phases:

• Establishing priority hubs based on freight volume (2024-2027);
• Connecting hubs along freight corridors (2027-2030);
• Expanding corridor connections and initiating network development (2030-2035); and
• Achieving a national network by linking regional corridors (2035-2040).

The strategy is to serve as a guide for public and private deployment of ZE-MHDV infrastructure along the NHFN and connecting corridors. For more information, see the Federal Highway Administration press release and Freight Corridors website.

(Reference Public Law 112-141, Public Law 114-94, Public Law 117-58, and 23 U.S. Code 167)

Procurement Preference for Electric and Hybrid Electric Vehicles

The U.S. Department of Defense (DOD) must exhibit a preference for the lease or procurement of motor vehicles with electric or hybrid electric propulsion systems, including plug-in hybrid systems, if the vehicles are commercially available at a cost reasonably comparable to motor vehicles with internal combustion engines. Tactical vehicles designed for use in combat are excluded from the requirement. (Reference 10 U.S. Code 2922g)

Point of Contact
U.S. Department of Defense
Phone: (703) 571-3343
http://www.defense.gov/

Transportation Decarbonization Support

The U.S. Department of Energy, Transportation, U.S. Department of Housing and Urban Development, and the U.S. Environmental Protection Agency (Signatory Agencies) joined in signing a memorandum of understanding (MOU) to accelerate the development and adoption of affordable and equitable clean transportation. The Signatory Agencies must work to reduce greenhouse gas emission in the transportation sector and ensure resilient and accessible mobility options for all Americans. By December 15, 2022, the Signatory Agencies must publish a draft decarbonization strategy for the transportation sector to guide future policy, research, development, demonstration, and deployment in the public and private sectors.

Truck Leasing Task Force

The U.S. Department of Transportation Federal Motor Carrier Safety Administration (FMCSA) Truck Leasing Task Force (TLTF) examines the terms, conditions, and equitability of common truck leasing arrangements, particularly as they impact owner-operators and trucking businesses. TLTF provides written consensus concerning several aspects of truck leasing agreements, including specific agreements available to drayage drivers at ports relating to the Clean Truck Program or similar programs that aim to decrease emissions from port operations. TLTF will terminate 30 days after submitting findings and recommendations to Congress. For more information, see the FMCSA TLTF website.

(Reference Public Law 117-58)

Utility Electric Vehicle (EV) Promotion Measures

The Federal Energy Regulatory Commission requires each state to consider measures to promote greater transportation electrification, by amending rates to:

• Promote affordable and equitable EV charging;
• Improve customer experience with EV charging;
• Accelerate third party investment in EV chargers; and,
• Recover marginal costs of electricity delivery to EV chargers.

Each state regulatory authority and each nonregulated utility must commence consideration or set a hearing date for consideration no later than November 15, 2022, and must complete consideration and make a determination no later than November 15, 2024. States with existing EV rate standards are exempt.

(Reference Public Law 117-58)

Vehicle Acquisition and Fuel Use Requirements for Federal Fleets

Under the Energy Policy Act (EPAct) of 1992, 75% of new light-duty vehicles acquired by covered federal fleets must be alternative fuel vehicles (AFVs). As amended in January 2008, Section 301 of EPAct 1992 expands the definition of AFVs to include hybrid electric vehicles, fuel cell vehicles, and advanced lean burn vehicles. Fleets that use fuel blends containing at least 20% biodiesel (B20) may earn credits toward their annual requirements. Federal fleets are also required to use alternative fuels in dual-fuel vehicles unless the U.S. Department of Energy (DOE) approves waivers for agency vehicles; grounds for a waiver include lack of alternative fuel availability and unreasonable cost (per EPAct 2005, section 701).

Additional requirements for federal fleets were included in the Energy Independence and Security Act of 2007, such as fleet management plans and petroleum reduction from 2005 levels (Section 142), low greenhouse gas (GHG) emitting vehicle acquisition requirements (Section 141), and renewable fuel infrastructure installation requirements (Section 246). For more information, see the Federal Fleet Management website.

To track progress toward meeting AFV acquisition and fuel use requirements, federal fleets must report on their percent alternative fuel increase compared to the fiscal year 2005 baseline, alternative fuel use as a percentage of total fuel consumption, AFV acquisitions as a percentage of vehicle acquisitions, and fleet-wide miles per gasoline gallon equivalent of petroleum fuels.

Executive Order 13834, issued in May 2018, requires the Secretary of Energy (Secretary), in coordination with the Secretary of Defense, the Administrator of General Services, and the heads of other agencies as appropriate, to review the existing federal vehicle fleet requirements. In April 2019, the Secretary provided a report to the Chairman of the Council on Environmental Quality and the Director of the Office of Management and Budget detailing opportunities to optimize federal fleet performance, reduce associated costs, and streamline reporting and compliance requirements. Specifically, the report recommends that federal agencies identify and implement strategies to:

• Right-size the fleet
• Reduce vehicle miles traveled
• Implement more fuel efficient vehicles
• Align the implementation of AFVs and associated fueling infrastructure

Executive Order 14008, issued in January 2021, requires the Chair of the Council on Environmental Quality, the Administrator of General Services, and the Director of the Office and Management and Budget, in coordination with the Secretary of Commerce, the Secretary of Labor, the Secretary, and the heads of other relevant agencies, to assist the National Climate Advisor in developing a comprehensive plan to facilitate clean and zero-emission vehicles for federal, state, local, and tribal government fleets, including vehicles of the U.S. Postal Service. The plan must be submitted to the National Climate Task Force by April 27, 2021.

(Reference 42 U.S. Code 13212 and Executive Order 13834 and Executive Order 14008)

Point of Contact
Federal Energy Management Program
U.S. Department of Energy
https://www.energy.gov/eere/femp/federal-energy-management-program-contacts

Vehicle Acquisition and Fuel Use Requirements for Private and Local Government Fleets

Under the Energy Policy Act (EPAct) of 1992, the U.S. Department of Energy (DOE) was directed to determine whether private and local government fleets should be mandated to acquire alternative fuel vehicles (AFVs). In January 2004, DOE published a final rule announcing its decision not to implement an AFV acquisition mandate for private and local government fleets. In response to a March 2006 ruling by a U.S. District Court, DOE issued a subsequent final rulemaking on the new Replacement Fuel Goal in March 2007, which extended the EPAct 1992 goal to 2030. The goal is to achieve a domestic production capacity for replacement fuels sufficient to replace 30% of the U.S. motor fuel consumption. In March 2008, DOE issued its determination not to implement a fleet compliance mandate for private and local government fleets, concluding that such a mandate is not necessary to achieve the Replacement Fuel Goal. For more information on the Private and Local Government Fleet Rule compliance, visit the EPAct Private and Local Government Fleet Determination website. (Reference 42 U.S. Code 13257)

Vehicle Acquisition and Fuel Use Requirements for State and Alternative Fuel Provider Fleets

Under the Energy Policy Act (EPAct) of 1992, as amended, certain state government and alternative fuel provider fleets are required to acquire alternative fuel vehicles (AFVs) as a portion of their annual light-duty vehicle acquisitions. Compliance is required by fleets that operate, lease, or control 50 or more light-duty vehicles within the United States. Of those 50 vehicles, at least 20 must be used primarily within a single Metropolitan Statistical Area/Consolidated Metropolitan Statistical Area, and those same 20 vehicles must also be capable of being centrally fueled for the fleet to be subject to the regulatory requirements.

Under Standard Compliance, the AFVs that covered fleets acquire help them achieve compliance, with each AFV acquired earning the fleet one AFV-acquisition credit. Covered fleets may earn additional credits for AFVs earned in excess of their requirements, and these credits may be banked for future use toward compliance or traded with other fleets. Additionally, fleets that use fuel blends containing at least 20% biodiesel (B20) in medium- and heavy-duty vehicles may earn credits toward their annual AFV-acquisition requirements. A fleet may also earn credits that may be used toward compliance or banked once the fleet achieves compliance for investments in alternative fuel infrastructure, mobile non-road equipment, and emerging technologies associated with certain electric drive vehicle technologies.

Fleets may also opt into Alternative Compliance, which allows fleets the option to choose a petroleum reduction path in lieu of acquiring AFVs under Standard Compliance. Interested fleets must obtain from DOE a waiver from Standard Compliance by submitting a plan that demonstrates a path by which they will achieve a certain level of petroleum reduction specific to their fleet composition.

For more information, visit the EPAct State and Alternative Fuel Provider Fleets website.

(Reference 42 U.S. Code 13251 and 13263a, and 10 CFR 490)

Point of Contact
EPAct Transportation Regulatory Activities
U.S. Department of Energy
regulatory.info@nrel.gov
https://epact.energy.gov/contact-us

Vehicle Incremental Cost Allocation

The U.S. General Services Administration (GSA) must allocate the incremental cost of purchasing alternative fuel vehicles (AFVs) across the entire fleet of vehicles distributed by GSA. This mandate also applies to other federal agencies that procure vehicles for federal fleets. For more information, see the GSA's AFV website. (Reference 42 U.S. Code 13212 (c))

Point of Contact
Fleet Alternative Fuel Vehicle Team
U.S. General Services Administration
gsafleetafvteam@gsa.gov
http://www.gsa.gov

Programs

Clean Cities and Communities

The mission of Clean Cities and Communities is to foster the economic, environmental, and energy security of the United States by working locally to advance affordable, domestic transportation fuels and technologies. Nearly 100 volunteer coalitions carry out this mission by developing public/private partnerships to promote alternative and renewable fuels, idle-reduction measures, fuel economy, improvements, and emerging transportation technologies. Clean Cities and Communities provides information about funding opportunities, coordinates technical assistance projects, updates and maintains databases and websites, and publishes technical and informational materials. For more information, see the Clean Cities and Communities website.

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov

Clean Construction and Agriculture

Clean Construction is a voluntary program that promotes the reduction of diesel exhaust emissions from construction equipment and vehicles by encouraging proper operations and maintenance, use of emissions-reducing technologies, and use of cleaner fuels.

Clean Agriculture is a voluntary program that promotes the reduction of diesel exhaust emissions from agricultural equipment and vehicles by encouraging proper operations and maintenance by farmers, ranchers, and agribusinesses, use of emissions-reducing technologies, and use of cleaner fuels.

Clean Construction and Clean Agriculture are part of the U.S. Environmental Protection Agency's Diesel Emissions Reduction Act (DERA) Program, which offers funding for clean diesel construction and agricultural equipment projects.

For more information, see the Reducing Diesel Emissions from Construction and Agriculture website.

Point of Contact
DERA Helpline
Diesel Emissions Reduction Act
U.S. Environmental Protection Agency
Phone: (877) 623-2322
dera@epa.gov
https://www.epa.gov/dera

Community Clean Energy Support Program

The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) provides support to communities to achieve their clean energy goals through the Clean Energy to Communities (C2C) Program by offering in-depth partnerships, peer-learning cohorts, and one-on-one matches with experts. Partners in peer-learning cohorts include Clean Cities and Communities coalitions. Eligible communities include local governments, tribal governments, metropolitan and regional planning authorities, utilities, community-based organizations, and entities such as transit agencies, school districts, housing authorities, and universities. Eligible community clean energy goal topics include electric vehicles, alternative fuels, and associated infrastructure. For more information, see NREL’s C2C website.

Electric Vehicle (EV) Charging Infrastructure Deployment Technical Assistance

The U.S. Department of Energy (DOE) offers free EV deployment technical assistance to local governments through the Energy Ready Charging Smart Program (Charging Smart). Charging Smart provides roadmaps for EV deployment and helps lower the cost of deploying EV charging infrastructure. For more information, see the DOE Charging Smart website.

(Reference Public Law 117-58)

Electric Vehicle (EV) Manufacturing Guidance Grants

The U.S. Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains established the Industrial Training and Assessment Centers (ITAC) Program to provide clean energy resources for small- to medium-sized manufacturers, universities and career institutions, and individuals seeking hiring and training opportunities. DOE offers grants of up to $300,000 per project for ITACs to develop EV conversion playbooks for small- and medium-sized manufacturers. Eligible applicants include universities, community colleges, trade schools, union training programs, and applicants supported by other public sector entities. Additional terms and conditions apply. For more information, see the DOE ITAC Program and EV Conversion Playbook websites.

(Reference Public Law 117-58 and 42 U.S. Code 17116)

National Highway Performance Program (NHPP)

The NHPP provides support to improve the condition and performance of the National Highway System (NHS), construct of new facilities on the NHS. NHPP-eligible activities include the installation of electric vehicle supply equipment (EVSE) and natural gas refueling stations along the NHS as part of the construction of fringe and corridor parking lots (e.g., park-and-ride lots), as well as truck parking rest areas. Restrictions on public fees for use of EVSE and natural gas stations on the federal Interstate System apply. (Reference Public Law 114-94, 23 U.S. Code 137, and 23 U.S. Code 111)

Ports Initiative

The U.S. Environmental Protection Agency's (EPA) Ports Initiative is an incentive-based program designed to reduce emissions by encouraging port authorities and terminal operators to retrofit and replace older diesel engines with new technologies and use cleaner fuels. EPA's Ports Initiative offers funding to port authorities and public entities to help them overcome barriers that impede the adoption of cleaner diesel technologies and strategies. For more information, see the Ports Initiative website.

Point of Contact
Jennifer Keller
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone: (202) 343-9541
keller.jennifer@epa.gov
http://www.epa.gov/cleandiesel/

Rural Appalachia Electric Vehicle (EV) Test Drive Program

The U.S. Department of Energy’s Rural Reimagined program provides free EVs for residents or local governments in the rural Appalachian region to test drive for two to six weeks. Additionally, Rural Reimagined provides Level 2 and direct current (DC) fast chargers at no cost to site hosts. Site hosts are responsible for installation costs. This program is only available in participating counties in Kentucky, Ohio, Tennessee, Virginia, and West Virginia. Additional terms and conditions apply and may vary by state. For more information, see the DOE Rural Reimagined website.

Surface Transportation Block Grant Program (STBG)

The STBG program promotes flexibility in state and local transportation decisions and provides flexible funding to best address state and local transportation needs. States may use apportioned funds for electric vehicle supply equipment and natural gas refueling stations during the construction of truck parking, as well as fringe and corridor parking facilities (e.g., park and ride facilities). Fringe and corridor parking facilities must meet specific requirements. (Reference Public Law 114-94, 23 U.S. Code 133, and 23 U.S. Code 137)

Voluntary Airport Low Emission (VALE) Program

The goal of the VALE Program is to reduce ground level emissions at commercial service airports located in designated ozone and carbon monoxide air quality nonattainment and maintenance areas. The VALE Program provides funding through the Airport Improvement Program and the Passenger Facility Charges program for the purchase of low emission vehicles, development of fueling and recharging stations, implementing gate electrification, and other airport air quality improvements. For more information, see the VALE Program website. (Reference 49 U.S. Code 47139)

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