Electricity Laws and Incentives in North Carolina
The list below contains summaries of all North Carolina laws and incentives related to electricity.
Laws and Regulations
Advanced Technology Vehicle Purchase Policy for Dealerships
Vehicle manufacturers may not prevent rural and other franchised dealers from obtaining, selling, or leasing electric, hydrogen, or automated vehicles.
(Reference North Carolina General Statues 20-305 and Senate Bill 356, 2023)
Alternative Fuel Use and Fuel-Efficient Vehicle Requirements
State-owned vehicle fleets must implement petroleum displacement plans to increase the use of alternative fuels and fuel-efficient vehicles. Reductions may be met by petroleum displaced through the use of biodiesel, ethanol, other alternative fuels, the use of hybrid electric vehicles, other fuel-efficient or low emission vehicles, or additional methods the North Carolina Division of Energy, Mineral and Land Resources approves.
(Reference Session Law 2013-265, Section 19.5(a)))
Alternative Fuel Vehicle (AFV) Acquisition Goal
North Carolina established a goal that at least 75% of new or replacement state government light-duty cars and trucks with a gross vehicle weight rating of 8,500 pounds or less must be AFVs or low emission vehicles.
(Reference North Carolina General Statutes 143-215.107C)
Clean Transportation Plan
The North Carolina Department of Transportation (DOT) must develop and submit a state-wide Clean Transportation Plan (Plan) by April 7, 2023, to meet North Carolina’s emission reduction and zero emission vehicle (ZEV) goals. The Plan must recommend actionable strategies for decarbonizing the transportation sector by:
- Increasing ZEV availability, sales, and usage to levels beyond current market projections;
- Reducing statewide vehicle miles traveled;
- Investing in clean transportation infrastructure;
- Increasing equitable access to clean mobility options;
- Increasing availability of non-vehicle transportation modes; and,
- Transitioning registered vehicles to zero- and low-emission fuels.
The Plan must also include considerations for transitioning medium- and heavy-duty (MHD) vehicles to ZEVs, as directed by the state’s participation in the Multi-State MHD ZEV Memorandum of Understanding.
(Reference Executive Order 80, 2018, and Executive Order 246, 2022)
Electric Vehicle (EV) Annual Fee
The owner of an EV that is exclusively powered by electricity must pay a fee of $214.50 and the owner of a plug-in hybrid electric vehicle must pay a fee of $107.25 in addition to any other required registration fees at the time of initial registration and annual registration renewal.
(Reference House Bill 259, 2023 and North Carolina General Statutes 20-87 and 20-4.02)
Electric Vehicle (EV) Charging Station Purchase Policy for Dealerships
Original equipment manufacturers (OEMs) may not require or coerce dealerships to purchase or lease EV charging stations unless the dealership is selling that OEM’s EVs. Dealerships are not required to offer public charging or purchase more EV charging stations than reasonably necessary.
(Reference North Carolina General Statues 20-305)
Electric Vehicle (EV) Definition
An EV is defined as a vehicle that:
- Does not have the ability to be propelled by gasoline
- Draws electricity from a battery with a capacity of at least four kilowatt-hours and is capable of being charged from an external source
- Has not been modified from the original equipment manufacturer power train specifications
- Has a gross vehicle weight rating of 8,500 pounds or less
- Has a maximum speed of at least 65 miles per hour, and
- Meets applicable requirements in Title 49 of the U.S. Code of Federal Regulations, Section 571.
(Reference North Carolina General Statutes 20-4.01)
Electric Vehicle (EV) Registration Tracking Requirement
The North Carolina Department of Transportation (NCDOT) will report EV, hybrid electric vehicle, and plug-in hybrid electric vehicle registrations on its performance dashboard. Data must include the number of monthly new registrations, monthly registration renewals, and the cumulative number of new registrations. For more information, see the NCDOT REPORT Program and the Zero Emission Vehicle Registration Data websites.
(Reference Session Law 2019-231, Section 4.14(a) and North Carolina General Statues 136-18.05)
Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support
California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of MHD ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).
In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.
For more information, see the MHD ZEVs: Action Plan Development Process website.
Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement
By May 15, 2023, the North Carolina Department of Environmental Quality (NCDEQ) must propose a rule to adopt the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations, requiring manufacturers to meet California ZEV production and sales requirements. The NCDEQ may collaborate with local governments, electric utilities, and other stakeholders to develop this proposed rule and analyze potential impacts.
(Reference Executive Order 271, 2022)
Public Utility Definition
A person who uses electric vehicle supply equipment to resell electricity to the public for the purposes of fueling an electric vehicle is not considered a public utility.
(Reference North Carolina General Statutes 62-3(23))
State Highway Electric Vehicle (EV) Charging Station Regulations
The North Carolina Department of Transportation (NCDOT) may install and operate public EV charging stations at state-owned highway rest stops so long as NCDOT has developed a mechanism to charge EV charging station users a fee to recover the costs related to electricity consumed, processing fees, and operation and maintenance. NCDOT may consult with other state agencies and industry representatives to develop a cost recovery mechanism.
(Reference North Carolina General Statutes 136-18.02)
Zero Emission Vehicle (ZEV) Deployment and Emissions Reductions Goals
North Carolina established the following goals to reduce statewide greenhouse (GHG) emissions:
- GHG emissions must be at least 50% below 2005 levels by 2030;
- Achieve net-zero emissions by 2050;
- Register at least 1,250,000 ZEVs by 2030; and,
- Increase the share of new passenger vehicle sales to 50% ZEVs by 2030.
(Reference Executive Order 246, 2022)
Zero Emission Vehicle (ZEV) Infrastructure Study
The North Carolina Department of Transportation must establish a North Carolina ZEV Infrastructure Needs Assessment in partnership with other agencies. The assessment must evaluate charging and fueling needs to support the adoption and implementation of the California Advanced Clean Trucks program and the achievement of state ZEV adoption and greenhouse gas emissions goals.
(Reference Executive Order 271, 2022)
Zero Emission Vehicle (ZEV) Requirements
State-owned vehicle fleets must prioritize ZEVs in the purchase or lease of new vehicles and use ZEVs for agency travel when feasible. Cabinet agencies must prioritize ZEVs in the purchase or lease of new medium- and heavy-duty (MHD) vehicles with a gross vehicle weight rating greater than 8,500 pounds. The Department of Administration (Department) developed the North Carolina Motor Fleet ZEV Plan (Plan). The Plan identifies the types of trips for which ZEV-use is feasible, recommends infrastructure necessary to support ZEV use, and develops ZEV procurement options and strategies. The Department provides information about each agency’s ZEV acquisitions and miles driven by vehicle type annually. For more information, see the Department’s Climate Change & Clean Energy: Plans & Progress website.
(Reference Executive Order 80, 2018 and Executive Order 271, 2022)
Zero Emission Vehicle (ZEV) Support
The North Carolina Department of Transportation (NCDOT), in coordination with the Department of Environmental Quality, developed a ZEV Plan to guide ZEV adoption in North Carolina and increase the number of ZEVs in the state to at least 80,000 by 2025. The ZEV Plan provides guidelines for establishing state-wide vehicle corridors, installing charging stations and other infrastructure, and incorporating best practices for increasing ZEV adoption. For more information, including the current number of ZEV registrations, see the NCDOT Climate Change & Clean Energy: Plans & Progress website.
(Reference Executive Order 80, 2018)
State Incentives
Alternative Fuel Tax Exemption
The retail sale, use, storage, and consumption of alternative fuels is exempt from the state retail sales and use tax.
(Reference North Carolina General Statutes 105-164.13 and 105-449.130)
Alternative Fuel and Alternative Fuel Vehicle (AFV) Fund
The North Carolina State Energy Office administers the Energy Policy Act (EPAct) Credit Banking and Selling Program, which enables the state to generate funds from the sale of EPAct 1992 credits. The funds that EPAct credit sales generate are deposited into the Alternative Fuel Revolving Fund (Fund) for state agencies to offset the incremental costs of purchasing biodiesel blends of at least 20% (B20) or ethanol blends of at least 85% (E85), developing alternative fueling infrastructure, and purchasing AFVs and hybrid electric vehicles. Funds are distributed to state departments, institutions, and agencies in proportion to the number of EPAct credits generated by each. For the purposes of this program, alternative fuels include 100% biodiesel (B100), biodiesel blends of at least B20, ethanol blends of at least E85, compressed natural gas, propane, and electricity. The Fund also covers additional projects approved by the Energy Policy Council.
(Reference North Carolina General Statutes 143-58.4, 143-58.5, 143-341(8)i, and 136-28.13)
Electric Vehicle (EV) Charging Station Grant Program
The North Carolina Department of Environmental Quality’s (DEQ) Level 2 Infrastructure Grant Program and Zero Emission Vehicle Direct Current Fast Charge (DCFC) Infrastructure Program and Level 2 Infrastructure Program provides funding for the purchase and installation of public and private Level 2 EV charging stations and public DCFC stations. This program is funded by North Carolina’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding amounts and availability, see the DEQ Volkswagen Settlement website.
Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Emissions Inspection Exemption
Qualified light-duty EVs and FCEVs are exempt from state emissions inspection requirements. Other restrictions may apply.
(Reference North Carolina General Statutes 20-4.01 and 20-183.2)
Heavy-Duty Vehicle Emissions Reduction Funding
The North Carolina Department of Environmental Quality’s (DEQ) Diesel Bus and Vehicle Programs provide funding for heavy-duty on-road new diesel or alternative fuel vehicles or engine repowers and replacements, as well as off-road repowers and replacements. Both government and non-government entities that own and operate diesel fleets and equipment are eligible for funding. Vehicles and equipment that qualify for replacement or repower include:
- Class 4-8 school buses, shuttle buses, and transit buses;
- Class 4-8 local freight trucks, ferries, forklifts, and freight switchers; and
- Class 8 local freight trucks and port drayage trucks.
This program is funded by North Carolina’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding availability, see the DEQ Diesel Bus and Vehicle Programs website.
High Occupancy Vehicle (HOV) Lane Exemption
Qualified electric vehicles, dedicated natural gas vehicles, and fuel cell electric vehicles may use North Carolina HOV lanes, regardless of the number of occupants. This exemption expires September 30, 2025. (Reference North Carolina General Statutes 20-4.01 and 20-146.2)
North Carolina's National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the North Carolina Department of Transportation (NCDOT) 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 North Carolina’s NEVI planning process, see the NCDOT NEVI website. To review North Carolina’s NEVI plan, see the Joint Office State Plans for EV Charging website.
More Laws and Incentives
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