Electricity Laws and Incentives in Utah
The list below contains summaries of all Utah laws and incentives related to electricity.
Laws and Regulations
Alternative Fuel Use and Vehicle Acquisition Requirement
At least 50% of new or replacement light-duty state agency vehicles must meet Bin 2 emissions standards established in Title 40 of the U.S. Code of Federal Regulations, or be propelled to a significant extent by electricity, natural gas, propane, hydrogen, or biodiesel.
(Reference Utah Code 63A-9-401 and 63A-9-403)
Alternative Fuel Vehicle Inspection and Permit
The Utah State Tax Commission (Commission) may require vehicles operating on clean fuels to be inspected for safe operation. In addition, clean fuel vehicles that have a gross vehicle weight rating of more than 26,000 pounds or have more than three axels are required to obtain a special fuel user permit from the Commission. Clean fuels are defined as propane, natural gas, electricity, and hydrogen.
(Reference Utah Code 59-13-102, 59-13-303, and 59-13-304)
Alternative Fuel Vehicle Registration Fees
All-electric vehicle (EV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV) owners are required to pay an additional annual registration fee. Fee amounts are as follows:
|2023 Registration Fee||2023 Registration Fee|
Owners of vehicles powered by a fuel other than gasoline, diesel, electricity, natural gas, or propane are required to pay an additional $120 registration fee. A six-month registration option with fees at prorated amounts is also available.
The additional registration fee paid by EVs and vehicles fueled exclusively by a fuel other than gasoline, diesel, natural gas, or propane must be equal to the maximum annual road usage charge.
(Reference Utah Code 41-1a-1206 and 72-1-213.1)
Electric Vehicle (EV) Charging Fee and Tax
Beginning January 1, 2024, the retail sale of electricity for EV charging is subject to a 12.5% tax. The tax may be based on kilowatt hours sold, the cost to charge per hour, or a subscription fee. Additional requirements apply.
Electric Vehicle (EV) Charging Station Rebate Program Authorization
The Utah Public Service Commission is authorized to establish a large-scale EV charging station program, with a maximum cost of $50,000,000. The program may include utility-owned EV charging stations, a new EV charging station rate structure, and a public education plan. Utilities implementing EV charging station programs must submit annual progress reports by June 1 for the previous calendar year.
(Reference Utah Code 54-2-1 and 54-4-41)
Electric Vehicle (EV) Infrastructure Bond Authorization
Interlocal entities, such as counties, local districts, and military installations, are authorized to issue bonds for EV charging infrastructure. EV charging infrastructure is defined as any permanent equipment on commercial or industrial property that charges or stores energy for delivery to EVs.
Electric Vehicle (EV) Plan
The Utah Department of Transportation (UDOT) must lead state agencies in the creation of a statewide EV plan to provide EV charging station facilities along certain state highways at distances no greater than every 50 miles. EV charging station locations must be determined by June 30, 2021, and installed by December 31, 2025. In August 2021, UDOT published the Utah Statewide Electric Vehicle Charging Network Plan.
(Reference Utah Code 72-1-216)
Public Utility Definition
An entity that provides electric vehicle battery charging services is not defined as a public utility, unless the entity conducts another activity in the state that subjects it to the regulation and jurisdiction of the Utah Public Service Commission. The entity must obtain the electricity from a regulated utility or electric corporation, at established rates.
(Reference Utah Code 54-2-1)
Regional Electric Vehicle (REV) West Plan
Utah joined Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, 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)[https://www.naseo.org/issues/transportation/rev-west] 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.
Road Usage Charge Program
The owner of an all-electric vehicle (EV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV) may enroll in the Utah Department of Transportation’s (UDOT) mileage-based roadway operations and maintenance fee program in lieu of paying additional EV, PHEV, or HEV registration fees. To participate, the owner or lessee must enroll, report mileage driven, and pay the road usage fee for each payment period. Road use fees are as follows:
|Year||Fee per Mile||Maximum Total Annual Fee|
|2023 to 2025||$0.01||$130.25|
|2026 to 2032||$0.0125||$180|
|2032 and Later||$0.015||$240|
In 2023, a six-month option with a prorated maximum road use fee will also be available. Beginning in 2024, UDOT may adjust the mileage fee and the Utah Tax Commission may adjust the maximum annual fee amount. Additional conditions apply. For more information, see the UDOT Road Usage Charge website.
(Reference Utah Code 72-1-213.1)
Alternative Fuel Vehicle Conversion Grants
The Utah Department of Environmental Quality (DEQ) Conversion to Alternate Fuel Grant Program provides grants to businesses and government entities that purchase clean vehicles or install conversion equipment on eligible vehicles that allows the vehicles to operate on alternative fuel or reduces a vehicle’s emissions of regulated pollutants. Award recipients are required to pass these savings along to the individual who purchases the converted vehicle. Grants may cover 100% of the cost of purchasing a clean vehicle or 50% of the cost of conversion, up to $2,500. Eligible clean vehicles must operate solely on alternative fuel, and may include on-road vehicles and off-road equipment. Eligible alternative fuels include propane, natural gas, and electricity. For more information, see the DEQ Conversion to Alternative Fuel Grant Program website.
Alternative Fuel Vehicle Decal and High Occupancy Vehicle (HOV) Lane Exemption
Propane, natural gas, all-electric, and plug-in hybrid electric vehicles are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must display the special clean fuel decal issued by the Utah Department of Transportation (UDOT); a limited number of decals are available. This exemption expires September 29, 2025. For more information about qualifying vehicles and decal availability, see the UDOT Clean Fuel Vehicle Decal and Permit website.
Electric Vehicle (EV) Charging Station Rebate
The Utah Department of Environmental Quality (DEQ) offers rebates of up to 50% of the cost to purchase and install Level 2 and direct current fast charging (DCFC) stations. Utah-based businesses and non-profit organizations are eligible for a maximum rebate of $75,000 each. Government entities are also eligible to apply. For more information, see the DEQ Workplace Electric Vehicle Charging Funding Assistance Program website.
Electric Vehicle Emissions Inspections Exemption
Vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections.
(Reference Utah Code 41-1a-1223 and 41-6a-1642)
Propane and Electricity Tax Exemptions
Propane and electricity used to operate motor vehicles are exempt from state motor fuel taxes. For more information, see the Utah State Tax Commission website.
(Reference Utah Code 59-13-102, 59-13-201, and 59-13-301)
Qualified Heavy-Duty Alternative Fuel Vehicle (AFV) Tax Credit
Taxpayers may be eligible for a tax credit for the purchase of a qualified heavy-duty AFV. Qualifying fuels include natural gas, electricity, and hydrogen. Each qualified heavy-duty AFV is eligible for the following tax credit amounts:
At least 50% of the qualified vehicle’s miles must be driven in the state. A single taxpayer may claim credits for up to 10 AFVs annually. If more than 30% of the total available tax credits in a single year have not been claimed by May 1, a taxpayer may apply for credits for an additional eight AFVs. Up to 25% of the tax credits are reserved for taxpayers with small fleets of less than 40 vehicles. Additional conditions and restrictions may apply. For more information, see the Utah Department of Environmental Quality Alternative Fuel Heavy Duty Vehicle Tax Credit Program website.
Utah's National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Utah Department of Transportation (UDOT) 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.
Utility / Private Incentives
Electric Vehicle (EV) Infrastructure Support
Utah 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.
Electric Vehicle (EV) Time-Of-Use (TOU) Rate - Rocky Mountain Power
Rocky Mountain Power offers residential customers that own EVs a TOU rate. Terms and conditions apply. For more information, see the Rocky Mountain Power Utah EV Incentives website.
Non-Residential Electric Vehicle (EV) Charging Station Rebate - Rocky Mountain Power
Rocky Mountain Power provides rebates to non-residential and multi-family customers toward the purchase of Level 2 and direct current fast charging (DCFC) station. Customers installing Level 2 EV charging stations may receive a rebate of 75% of equipment cost, up to $1,000 for single port stations and $1,500 for multi-port stations. Customers installing DCFC stations may receive a rebate of 75% of equipment and installation cost, up to $30,000 for single port stations and $42,000 for multi-port stations.
Rebates are available on a first-come, first-served basis. Additional terms and conditions apply. For more information, see the Rocky Mountain Power Utah EV Incentives website.
Non-Residential Electric Vehicle (EV) Make-Ready Grant – Rocky Mountain Power
Rocky Mountain Power offers custom grants to non-residential customers to cover the upfront costs of make-ready EV charging station projects. Additional terms and conditions apply. For more information, see the Rocky Mountain Power Utah EV Incentives website.
Residential Electric Vehicle (EV) Charging Station Rebate – Rocky Mountain Power
Rocky Mountain Power offers residential customers a rebate of up to $200 for the purchase and installation of a Level 2 EV charging station. Customers may receive one Level 2 rebate per EV owned. For more information, see the Rocky Mountain Power Utah EV Incentives website.
More Laws and Incentives
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