Electricity Laws and Incentives in Montana

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

Laws and Regulations

Carbon Penalty Prohibition

Local governments are prohibited from imposing penalties, fees, or taxes on carbon or carbon use, including but not limited to the carbon content of fuels or electricity in the transportation sector.

(Reference Montana Code Annotated 7-1-111 )

Electric Vehicle (EV) Charging Station Tax

Beginning July 1, 2023, the sale of electricity by public EV charging stations is subject to a tax of $0.03 per kilowatt-hour. EV charging stations at private residences or homeowners’ associations are exempt. Tax revenue will be apportioned to the highway restricted account. Additionally, all new public charging stations must install a meter capable of separately measuring electricity. The charging station owner is responsible for paying the cost of meter installation.

(Reference House Bill 55, 2023)

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Annual Fee

In addition to standard registration fees, EVs and PHEVs are subject to an annual fee. Fee amounts vary based on gross vehicle weight rating (GVWR):

The revenue from the annual fee will be apportioned to the highway restricted account. Beginning July 1, 2028, EV registration fees will be reduced by 30% for private residents.

(Reference House Bill 60, 2023 and House Bill 55, 2023)

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Permanent Registration Fee

In addition to standard registration fees, EVs and PHEVs are subject to a one-time registration fee. Fee amounts vary based on gross vehicle weight rating (GVWR):

The revenue from the annual fee will be apportioned to the highway restricted account.

(Reference House Bill 439, 2023)

Energy Performance Contract Authorization

Government entities in Montana are authorized to enter into energy performance contracts to pay for energy efficiency improvements with energy savings, including savings from the use of energy-efficient vehicles.

(Reference Montana Code Annotated 90-4-1101)

Public Utility Definition

An entity that operates electric vehicle supply equipment is not defined as a public utility.

(Reference Montana Code Annotated 69-8-803)

Public Utility Electric Vehicle (EV) Charging Station Authorization

Montana utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) 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 DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.

Regional Electric Vehicle (REV) West Plan

Montana joined Arizona, Colorado, Idaho, Nevada, New Mexico, Utah, and Wyoming (Signatory States) in signing the REV West memorandum of understanding (MOU) to create an Intermountain West Electric Vehicle (EV) Corridor that will make it possible to seamlessly drive an EV across the Signatory States’ major transportation corridors.

In 2019, the Signatory States signed a revised REV West MOU to update their EV corridor goals based on progress to date. Signatory States are committed to:

• Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption;
• Coordinate on EV charging station locations to achieve a consistent user experience across Signatory States;
• Use and promote the REV West Voluntary Minimum Standards for EV charging stations and explore opportunities for implementing the standards in Signatory States;
• Identify and develop opportunities to incorporate EV charging stations into planning and development processes such as building codes, metering policies, and renewable energy generation projects;
• Encourage EV manufacturers to stock and market a wide variety of EVs within the Signatory States;
• Identify, respond to, and collaborate on funding opportunities to support the development of the plan; and
• Support the build-out of direct current (DC) fast charging stations along EV corridors through investments, partnerships, and other mechanisms.

The Signatory States maintain a coordination group composed of senior leadership from each state who meet on a quarterly basis and report on the above actions. For more information, see the REV West website.

Utility / Private Incentives

Electric Vehicle (EV) Infrastructure Support

Montana utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) 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 DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.

State Incentives

Heavy-Duty Vehicle Replacement Grants

The Montana Department of Environmental Quality (DEQ) offers grants for the replacement of qualified medium- and heavy-duty diesel transit buses with new all-electric, diesel hybrid, compressed natural gas, or propane shuttle or transit buses. Funding is also available for the replacement of school buses and airport ground support vehicles with all-electric vehicles. The program is funded by Montana’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and the application, see the DEQ Volkswagen Settlement website.

Montana’s National Electric Vehicle Infrastructure (NEVI) Planning

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

For more information about MDT’s collaboration with the Energy Office at the Montana Department of Environmental Quality for the NEVI planning process, see the Montana DEQ Alternative Fuels & Transportation website. To review Montana’s NEVI plan, see the Joint Office State Plans for EV Charging website.

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