Electricity Laws and Incentives in Virginia

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

Laws and Regulations

Aftermarket Electric Vehicle (EV) Conversion Regulations

Any motor vehicle, other than a motorcycle, that has been modified to replace the internal combustion engine with an electric propulsion system must be titled by and registered with the Virginia Department of Motor Vehicles (DMV) as a converted EV. DMV converted EV registration requires certification by a Virginia safety inspector that the conversion to electric propulsion is complete and proof that the vehicle has passed a Virginia safety inspection. There is a $15 fee, in addition to any fee imposed for Virginia safety inspection.

Converted EVs must be equipped with special equipment, including high voltage cables, a temperature monitoring system for traction batteries other than lead acid batteries, and labeling on three sides of the vehicle identifying it as “Converted Electric.”

For more information, see the DMV Titling a Converted EV website.

(Reference Virginia Code 46.2-602.3, 46.2-625, and 46.2-1001.1)

Alternative Fuel Provider License

Alternative fuel providers, bulk users, and retailers, or any person who fuels an alternative fuel vehicle from a private source that does not pay the alternative fuels tax must obtain an alternative fuel license from the Virginia Department of Motor Vehicles (DMV). For more information, see the DMV Fuels Tax Licensing website.

(Reference Virginia Code 58.1-2244)

Alternative Fuel School Bus and Fueling Infrastructure Loans

The Virginia Board of Education may use funding from the Literary Fund to provide loans to school boards that convert school buses to operate on alternative fuels or construct alternative fueling stations.

(Reference Virginia Code 22.1-146)

Alternative Fuel Tax

Alternative fuels used to operate on-road vehicles are taxed at an annually adjusted rate per gasoline gallon equivalent (GGE). Alternative fuels are taxed at the same rate as gasoline and gasohol. Refer to the Virginia Department of Motor Vehicles Fuels Tax Rates and Alternative Fuels Conversion website for fuel-specific GGE calculations.

(Reference Virginia Code 58.1-2217 and 58.1-2249)

Alternative Fuel Vehicle (AFV) Grant Authorization

Local governments are authorized to establish a green bank to promote investment in clean energy technologies, including AFVs and related infrastructure.

(Reference Virginia Code 15.2-958.3:1)

Alternative Fuel Vehicle (AFV) Tax Reduction Authorization

Local governments may reduce personal property taxes paid on AFVs and low-speed vehicles. AFVs include vehicles that operate using natural gas, liquefied petroleum gas or propane, hydrogen, or electricity.

(Reference Virginia Code 58.1-3506)

Electric Vehicle (EV) Charging Station New Construction and Building Renovation Requirement

Any executive branch agency or institution designing new building construction of more than 5,000 square feet, or a renovation that costs more than 50% of the value of the building, must include EV charging infrastructure unless located in an Interstate System right-of-way. EV charging infrastructure must be sufficient to support charging for every centralized fleet vehicle based at that building.

(Reference Virginia Code 2.2-1182 and 2.2-1183)

Electric Vehicle (EV) Charging Station Policies for Associations

Homeowners associations (HOAs) or condominium associations may not prohibit the installation of an EV charger for personal use within the EV charger owner’s designated parking space. HOAs may establish restrictions on the number, size, placement, manner of installation, and insurance requirements for the EV charger if it is installed on the exterior of the property or in a common area. HOAs are not liable for the EV charger.

A condominium association may prohibit the installation of an EV charger if it is not technically feasible or practical due to safety risks, structural issues, or engineering conditions. Condominiums may establish requirements on the manner of installation, architectural design, insurance requirements, and community-related expenses for the EV charger.

(Reference Virginia Code 55.1-1823.1, 55.1-1962.1, and 55.1-2139.1)

Electric Vehicle (EV) Fee

EV owners must pay an annual highway fee or a per-mile road use fee. These fees are in addition to standard vehicle registration fees. For more information, including the current fee amount, see the Virginia Department of Transportation Highway Use Fee website.

(Reference Virginia Code 46.2-770 through 46.2-773)

Electric Vehicle (EV) Infrastructure New Building Requirement for Localities

Any locality designing new building construction of more than 5,000 square feet, or a renovation that costs more than 50% of the value of the building, must include sufficient EV charging infrastructure. The building must be capable of supporting projected EV charging and fueling demand over the first 10 years following building occupancy. Alternatively, the building must earn a EV or electric vehicle charging credit from the Virginia Energy Conservation and Environmental Standards (VEES), the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) green building rating standard, or the Green Building Initiative’s Green Globes building standard.

(Reference Virginia Code 15.2-1804.1)

Electric Vehicle (EV) Parking Space Regulation

Any vehicle that is not actively charging may not park in a designated EV charging parking space. The penalty for violation is up to $25. Local governments may issue an additional penalty of up to $25.

(Reference Virginia Code 46.2-1219.3)

Electric Vehicle (EV) Rebate Authorization

The Virginia Department of Mines, Minerals, and Energy is authorized to administer a rebate program for the purchase of a new or used EV. Rebates may not exceed $2,500. An additional rebate of $2,000 must be available for residents whose annual household income does not exceed 300% of current poverty guidelines. Eligible used vehicles may not have a purchase price of more than $25,000. For more information, see the Virginia Department of Energy Sustainable Transportation website.

(Reference Virginia Code 45.2-1727 through 45.2-1733)

Electric Vehicle (EV) Rebate Program Working Group

The Virginia Department of Mines, Minerals, and Energy in collaboration with the Department of Environmental Quality, Department of Taxation, and the Department of Motor Vehicles convened a working group to evaluate the feasibility of an EV rebate program. The working group will:

• Review methods for structuring and administering an EV rebate program;
• Review funding options;
• Evaluate vehicle sales data in states that offer EV rebates,
• Identify metrics for evaluating an EV rebate program for incentives under $4,500, and;
• Recommend incentives for low-income individuals.

The working group published a report with program recommendations to the Virginia General Assembly on November 1, 2020. The EV rebate program must be operational by December 30, 2021, or when funding is available.

(Reference House Bill 717, 2020)

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.

Mid-Atlantic Region Electric Vehicle (EV) Support

Virginia joined Maryland, West Virginia, and the District of Columbia (Participating States) in creating the Mid-Atlantic Electrification Partnership (MAEP) to support the deployment of EVs and EV chargers throughout the region. Participating States commit to creating a regional network of EV chargers that will make it possible to seamlessly operate light-, medium-, and heavy-duty EVs across transportation corridors and in low-income communities. For more information, see the MAEP website.

Public Entity Retail Electric Vehicle (EV) Infrastructure Authorization

Any state government entity, as well as any locality, park authority, public institution of higher education, or school boards, may operate retail fee-based EV charging infrastructure on its property. A locality may restrict use to employees of the locality and authorized visitors and may install signage that details these restrictions. Retail fee-based EV charging provided by state agencies must be offered at rates similar to those in competitive areas. EV charging infrastructure access must be restricted to employees, students, and authorized visitors only during school hours, and must be accompanied by appropriate signage.

(Reference 22.1-131, 56-1.2, 56-1.2:1, 56-232.2:1, and 2.2-614.5)

Public Utility Definition

An entity that is not a public utility, public service corporation, or public service company that provides retail electric vehicle (EV) charging services is not defined as a public utility and may sell electricity if the electricity is used solely for transportation purchases and the entity procured the electricity from an authorized public utility. The Virginia State Corporation Commission may not set the rates, charges, or fees for retail EV charging services provided by non-utilities.

(Reference Virginia Code 56-1.2:1 and 56-232.2:1)

Transportation Electrification Study

The State Corporation Commission (Commission) must propose policies to govern public, investor-owned electric utility programs and accelerate widespread transportation electrification in Virginia. The Commission must evaluate:

• Utility and public investments that complement private efforts to deploy electric vehicle (EV) chargers, focusing on low-income, minority, and rural communities;
• Smart growth policies that can advance transportation electrification; and,
• Utility actions that can facilitate EV charger deployment and transportation electrification.

The report must address how transportation electrification will impact ratepayers, grid management, renewable energy development, and vehicle charging costs. The Commission published the report in April 2022. Recommendations include requiring the two largest investor-owned electric utilities to develop transportation electrification plans, developing guidance or time-of-use rates, pursuing federal funding to support transportation electrification, and engaging medium- and heavy-duty electric vehicle stakeholders.

(Reference House Bill 2282, 2021)

Utility Company Electric Vehicle (EV) Charging Station Requirement

Utilities must establish electric distribution grid transformation projects that facilitate the integration of electrical facilities and infrastructure necessary to support EV chargers. Utilities will petition the State Corporation Commission for program approval and will receive a final order within six months of the petition filing.

(Reference Virginia Code 56-576 and 56-585.1)

Utility Electrification Investment Recovery Requirement

Beginning July 1, 2021, costs incurred by investor-owned electric utilities associated with investments in transportation electrification may only be recovered through the utility’s rates for electricity generation and distribution.

(Reference Virginia Code 56-585.1:13)

Vehicle Acquisition Total Cost of Ownership (TCO) Assessment Requirement

The Virginia Department of General Services (DGS) must identify a publicly available TCO calculator to assess and compare the total lifetime cost of purchasing, owning or leasing, and operating light-duty internal combustion engine (ICE) vehicles and EVs. The calculator must consider vehicle make, model, age, annual mileage, lifespan, depreciation, and capital, maintenance, repair, and infrastructure costs. The TCO calculator must be updated on an annual basis to reflect current prices and vehicle models. DGS and all other state agencies must purchase or lease EVs instead of ICE vehicles if the calculator indicates EVs have a lower TCO. Beginning January 1, 2026, and triennially thereafter, DGS must report estimated cost savings and emissions reductions as a result of purchasing EVs instead of ICE vehicles. Emergency and law-enforcement vehicles are exempt from this requirement.

(Reference Virginia Code 2.2-1176.2)

Zero Emission Vehicle (ZEV) Sales Requirement and Low-Emission Vehicle (LEV) Standards

The Virginia Air Pollution Control Board has adopted the California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations. Beginning January 1, 2024, these regulations apply to all passenger cars, light-duty trucks, and medium-duty vehicles. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements.

In January 2024, Virginia adopted the California vehicle emission standards and compliance requirements set forth in the California Air Resources Board Advanced Clean Cars II regulation. These new emissions standards and requirements will begin with model year 2027 and require that 100% of new passenger vehicles sold in Virginia must be ZEVs by 2035.

(Reference Virginia Code 10.1-1307.04)

State Incentives

Alternative Fuel and Hybrid Electric Vehicle (HEV) Emissions Testing Exemption

Vehicles powered exclusively by natural gas, propane, hydrogen, a combination of compressed natural gas and hydrogen, or electricity are exempt from the Virginia emissions inspection program. Qualified HEVs with U.S. Environmental Protection Agency fuel economy ratings of at least 50 miles per gallon (city) are also exempt from the emissions inspection program unless remote sensing devices indicate the HEV may not meet current emissions standards. For more information, including a list of HEVs that qualify, see the Virginia Department of Motor Vehicles Emissions Inspections website.

(Reference Virginia Code 46.2-1177 through 46.2-1178 and 46.2-749.3)

Electric Vehicle (EV) Charging Station Deployment Grants

The Virginia Department of Energy offers grants of up to $400,000 to private businesses and public-private partnerships for the installation of EV charging stations in rural or underserved communities. For more information, including additional requirements, see the Virginia Department of Energy EV Charging Assistance Program website.

Government Alternative Fuel Vehicle (AFV) Incentive

The Virginia Department of Mines, Minerals and Energy, in collaboration with the Virginia Department of Transportation, offers up to $10,000 to state agencies and local governments for the incremental cost of new or converted AFVs. To be eligible, vehicles must comply with Buy America provisions or qualify for a waiver from the U.S. Department of Transportation Federal Highway Administration, and must be garaged in areas of air quality nonattainment, as recognized by the federal Congestion Mitigation and Air Quality Improvement (CMAQ) program. For more information, see the Virginia CMAQ Incentive Program website.

High Occupancy Vehicle (HOV) Lane Exemption

Alternative fuel vehicles (AFVs) displaying the Virginia Clean Special Fuel license plate may use Virginia HOV lanes on specified areas of I-64, I-264, I-564, the Dulles Toll Road, and in the City of Alexandria, regardless of the number of occupants. For HOV lanes serving the I-66 corridor, only registered vehicles displaying Clean Special Fuel license plates issued before July 1, 2011, are exempt from HOV lane requirements. Only dedicated AFVs are eligible; see the Virginia Department of Motor Vehicles website for a complete list of qualifying vehicles. The annual fee for Clean Special Fuel license plates is $25 in addition to the prescribed fee for commonwealth license plates. This exemption expires September 30, 2025. For more information, see the Virginia Department of Transportation HOV Lanes website.

(Reference Virginia Code 33.2-501 and 46.2-749.3)

Virginia's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Virginia Department of Transportation (VDOT) 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 Virginia’s NEVI planning process, see the VDOT Electric Vehicle Infrastructure Deployment Plan website. To review Virginia’s NEVI plan, see the Joint Office State Plans for EV Charging website.

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