Electricity Laws and Incentives in District of Columbia
The list below contains summaries of all District of Columbia laws and incentives related to electricity.
Alternative Fuel Vehicle (AFV) Conversion and Infrastructure Tax Credit
Businesses and individuals are eligible for an income tax credit of 50% of the equipment and labor costs for the conversion of qualified AFVs, up to $19,000 per vehicle. A tax credit is also available for 50% of the equipment and labor costs for the purchase and installation of alternative fuel infrastructure on qualified AFV fueling property. The maximum credit is $1,000 per residential electric vehicle charging station, and $10,000 per publicly accessible AFV fueling station. Qualified alternative fuels include, ethanol blends of at least 85%, natural gas, propane, biodiesel, electricity, and hydrogen. For more information, see the Office of Tax and Revenue website. (Reference District of Columbia Code 47-1806.12 through 47-1806.13, 47-1807.10 through 47-1807.11, and 47-1808.10 through 47-1808.11)
Alternative Fuel Vehicle Exemption from Driving Restrictions
Certified clean fuel vehicles are exempt from time-of-day and day-of-week restrictions and commercial vehicle bans if the vehicles are part of a fleet that operates at least 10 vehicles in the District of Columbia. This exemption does not permit unrestricted access to High Occupancy Vehicle lanes, except for covered fleet vehicles that have been certified by the U.S. Environmental Protection Agency as Inherently Low Emission Vehicles (ILEV) and are in compliance with applicable ILEV emission standards. (Reference District of Columbia Law L22-257, 2019, and District of Columbia Code 50-702 and 50-714)
Plug-In Electric Vehicle (PEV) Title Excise Tax Exemption
Qualified PEVs are exempt from the excise tax imposed on an original certificate of title. The original purchaser and subsequent purchasers of the same vehicle are eligible for the excise tax exemption. The District of Columbia Department of Motor Vehicles (DMV) determines which PEVs qualify. For more information, including eligible PEVs, see the District of Columbia Department of Motor Vehicles website. (Reference District of Columbia Code 50-2201.03(j)(3)(J))
Laws and Regulations
Alternative Fuel Vehicle Acquisition Requirements
Fleets that operate at least 10 vehicles in the District of Columbia must ensure that 70% of newly purchased vehicles with a gross vehicle weight rating (GVWR) of 8,500 pounds (lbs.) or less and 50% of vehicles with a GVWR between 8,500 lbs. and 26,000 lbs. are clean fuel vehicles. For this requirement, a clean fuel is any fuel, including diesel, ethanol (including E85), hydrogen, propane, natural gas, reformulated gasoline, or other power source (including electricity) used in a clean fuel vehicle that complies with standards and requirements applicable to such vehicles. Certain exemptions apply. (Reference District of Columbia Code 50-702 and 50-703)
Alternative Fuel Vehicle and Infrastructure Support
The Green Finance Authority (Authority) supports private investment in clean transportation projects, including alternative fuel vehicles and infrastructure. The Authority Board, established by the Authority Fund, manages the Authority, and authorizes the Authority to issue bonds. The Authority must publish an annual report. (Reference District of Columbia Code 8-173.01 through 8-173.64)
Electric Vehicle Supply Equipment (EVSE) Deployment Requirement
The District Department of Transportation (DDOT) must install at least 15 public EVSE throughout the District of Columbia and collect EVSE use data. DDOT must submit an annual report analyzing the program and provide an EVSE map on the DDOT website. (Reference Resolution R24-0211, Effective from July 13, 2021, District of Columbia Law 22-78)
Emissions Reduction Plan for Transportation Network Companies
By February 1, 2022, and every two years thereafter, each private vehicle-for-hire company must develop a greenhouse gas emissions reduction plan, including actionable proposals to reduce emissions, and submit it to the District of Columbia Public Service Commission. Plans must include strategies to increase the proportion of vehicle-for-hire drivers with zero emission vehicles (ZEVs) and to increase the proportion of vehicle miles completed by ZEVs relative to total vehicle miles traveled. (Reference District of Columbia Code 50-741)
Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support
California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).
By January 2021, the Task Force will develop a multi-state action plan to support electrification of medium- and heavy-duty vehicles. The Task Force will consider actions to accomplish the goals of the MOU, including limiting all new medium- and heavy-duty vehicles sales in the signatory states to ZEVs by 2050. The signatory states will also seek to accelerate the deployment of medium- and heavy-duty ZEVs to benefit disadvantaged communities and explore opportunities to coordinate and partner with key stakeholders.
For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.
Public Utility Definition
A person or entity that owns or operates electric vehicle supply equipment, an electric vehicle charging station service company, or an electric vehicle charging station service provider is not defined as a public utility. (Reference District of Columbia Code 34-214)
Utility Electric Vehicle Supply Equipment (EVSE) Program Authorization
The District of Columbia Public Service Commission (Commission) may consider applications by electric utilities to promote transportation electrification through EVSE ownership or other related programs and incentives. The Commission may approve applications that it finds are in the public interest and consistent with the District’s commitment to greenhouse gas emissions reductions. (Reference District of Columbia Code 50-741)
Zero Emission Vehicle (ZEV) Deployment Support
The Executive Office of the Mayor will establish a transportation electrification program that requires all public buses, light-duty vehicles associated with privately-owned fleets that can transport 50 or more passengers, commercial motor carriers, limousine service vehicles, and taxis certified to operate in the District of Columbia to be ZEVs by 2045.In addition, the District Department of Transportation, in partnership with stakeholders, will develop a plan to encourage and promote the adoption of ZEVs. The plan will include recommendations for strategies to achieve at least 25% ZEV registrations by 2030 and the mayor’s transportation electrification program. For more information, see the Transportation Electrification Roadmap website.(Reference District of Columbia Code 50-741 and 50-921.24)
Plug-In Electric Vehicle (PEV) Infrastructure Support
District of Columbia utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast (DC Fast) charging stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DC fast charging sites. For more information, including a list of participating utilities and states, see the NEHC website.
Plug-In Electric Vehicle (PEV) Time-Of-Use Rate – Pepco
Pepco offers a TOU rate to residential customers that own or lease PEVs with an electric range of greater than 30 miles. For more information, see the Pepco Rates & Tariffs website.
Public Electric Vehicle Supply Equipment (EVSE) Make-Ready Support – Pepco
Pepco offers support to commercial customers installing publicly-accessible Level 2 and Direct Current Fast (DC Fast) EVSE. Pepco provides applicants with the electrical capacity to support up to five Level 2 or four DC Fast EVSE per applicant location. Applicants are responsible for installing, operating, and maintaining the EVSE. For more information, including eligibility requirements and application guidelines, see the Pepco EVsmart website.
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