Hydrogen Laws and Incentives in Washington
The list below contains summaries of all Washington laws and incentives related to hydrogen.
Laws and Regulations
Alternative Fuel Public-Private Partnerships (PPPs)
The Department of Transportation’s public-private partnership office must develop and maintain a program to support the deployment of alternative fuel vehicle charging and fueling infrastructure that is supported by private financing. The department must define corridors in which bidders may propose to install electric vehicle (EV) charging infrastructure or hydrogen fueling stations and may update these corridors over time. Alternatively, a bidder may propose a corridor in which the bidder proposes to install EV infrastructure or hydrogen fueling stations if the department has adopted rules and guidelines for such proposals. Bidders must demonstrate that the proposed project will be valuable to drivers and will address a gap in the state’s low carbon transportation infrastructure.
(Reference Revised Code of Washington 47.04.350)
Alternative Fuel Vehicle (AFV) Technical Assistance and Education Program
The Washington State University (WSU) Energy Program must establish and administer a technical assistance and education program on the use of AFVs for public agencies, including state and local governments. For more information, visit the WSU Energy Program Green Transportation Program website.
(Reference Revised Code of Washington 28B.30.903)
Electric Vehicle (EV) Chargers and Hydrogen Fueling Station Support
Washington State Department of Transportation (WSDOT) must install co-located direct current fast chargers and hydrogen fueling stations in the Wenatchee or East Wenatchee area near a state route or publicly owned facility. WSDOT must contract with a public utility that produces hydrogen or provides technical assistance for hydrogen fueling stations.
(Reference House Bill 1125, 2023)
Fleet Electric Vehicle (EV) Procurement Requirements
State executive and small-cabinet agency fleets must procure EVs to replace light-, medium-, and heavy- duty internal combustion engine vehicles once they reach the end of their useful life. Fleets must achieve the following procurement requirements:
| Percentage of Procured Vehicles that Must be EVs | |||
|---|---|---|---|
| Year | Light Duty | Medium Duty | Heavy Duty |
| 2025 | 40% | No Requirement | No Requirement |
| 2030 | 75% | 30% | 50% |
| 2035 | 100% | 55% | 75% |
| 2040 | 100% | 100% | 100% |
(Reference Executive Order 21-04, 2021)
Hydrogen Distribution, Production, and Sale Authorization
Government entities or transit authorities that provide public transportation are authorized to produce, distribute, sell, and use green electrolytic hydrogen and renewable hydrogen. Renewable hydrogen is defined as hydrogen produced using renewable resources as the source of the hydrogen and the source for the energy input into the production process. Green electrolytic hydrogen is defined as hydrogen produced through electrolysis, which does not include hydrogen produced from a fossil fuel feedstock. Additional requirements apply.
(Reference Revised Code of Washington 36.57A.260, 36.56.130, 35.92.445, 36.57.140, 81.112.370, 81.104.240)
Low Carbon Fuel Standard (LCFS)
Washington’s Clean Fuels Program (Program) requires a reduction in the overall carbon intensity of transportation fuels used in the state by 20% below 2017 levels by 2034. The Program requires transportation fuel producers and suppliers to meet specified average carbon intensity requirements for fuel. The Program’s regulated fuels include gasoline, diesel, gasoline mixed with at least 10% corn-derived ethanol, biomass-based diesel, propane, and hydrogen. Producers of low carbon fuels, such as electricity and alternative jet fuel, may participate, but are not required to register for the Program. Aviation fuel, marine fuel, railroad fuel, and offroad fuel used for agriculture, logging, mining, and other activities are exempt and will not generate deficits. The Program allows producers and importers to generate, acquire, transfer, bank, borrow, and trade credits. Fuel producers and importers regulated under the LCFS must meet quarterly and annual reporting requirements. For more information, see the Washington State Department of Ecology Clean Fuel Standard website.
(Reference Revised Code of Washington 70A.535.005-70A.535.140)
Low Carbon Fuel and Fuel-Efficient Vehicle Acquisition Requirement
Washington state agencies must consider purchasing low carbon fuel vehicles or converting conventional vehicles to use low carbon fuels when financially comparable over the vehicle’s useful life. Low carbon fuels include hydrogen, biomethane, electricity, or natural gas blends of at least 90%. State agencies must achieve an average fuel economy of 36 miles per gallon (mpg) for passenger vehicle fleets in motor pools and leased conventional vehicles. State agencies must also purchase low carbon fuel vehicles or, when purchasing new conventional vehicles, achieve an average fuel economy of 40 mpg for light-duty passenger vehicles and 27 mpg for light-duty vans and sport utility vehicles. When calculating average fuel economy, emergency response vehicles, passenger vans with a gross vehicle weight rating of 8,500 pounds or greater, off-road vehicles, low carbon fuel vehicles, and vehicles driven less than 2,000 miles per year are excluded.
(Reference Revised Code of Washington 43.19.622)
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
Washington has adopted the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations, requiring manufacturers to meet California’s ZEV production and sales requirements. Beginning with model year 2025, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in Washington. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the Washington Clean Car Standards website and its Manufacturer Information page.
(Reference Washington Administrative Code 173-423 and 173-400-025)
Renewable Natural Gas (RNG) and Renewable Hydrogen Fuel Sales Regulations
Public utility districts are authorized to sell RNG and renewable hydrogen to facilities that condense or dispense natural gas or renewable hydrogen for use as a motor fuel. RNG is defined as methane gas or other hydrocarbons derived from organic materials. Renewable hydrogen is defined as hydrogen produced using renewable resources as the source of the hydrogen and the source for the energy input into the production process.
(Reference Revised Code of Washington 54.04.190)
Support for Interagency Collaboration on Hydrogen Development
The Washington State Department of Commerce must establish the Office of Renewable Fuels (Office) to leverage, support, and collaborate with other State agencies to:
- Accelerate market development by providing assistance along the entire life cycle of renewable fuel projects;
- Support research on the development and deployment of renewable fuel and use of renewable and green electrolytic hydrogen;
- Drive job creation, improve economic vitality, and support the transition to clean energy;
- Enhance resiliency by using renewable fuels and green electrolytic hydrogen to support climate change mitigation and adaptations; and,
- Partner with underserved communities to ensure communities equitably benefit from clean fuel efforts.
(Reference Revised Code of Washington 43.330.560-43.330.575)
Volkswagen (VW) Settlement Allocation
The Washington State Department of Ecology (Ecology) will work with the Office of the Governor and state agencies to select projects and distribute funding to leverage 15% of Washington’s portion of the VW Environmental Mitigation Trust for the acquisition, installation, operation, and maintenance of light-duty zero-emission (zero tailpipe emission vehicle) vehicle charging infrastructure.
Ecology will establish a competitive process to identify and select projects to fund with the remaining 85% of the appropriation to maximize total air pollution reduction and health benefits, improve air quality in areas disproportionately affected by air pollution, leverage additional matching funds, achieve substantial emission reduction beyond what would occur absent the funding, accelerate fleet turnover to the cleanest engines, and accelerate adoption of electric vehicles, equipment, and vessels. As appropriate, Ecology will work with state agencies to select projects and distribute funding. For more information, see the Ecology VW Enforcement Action website.
Zero Emission School Bus Grant Program Authorization
The Washington State Department of Ecology must offer grants for the replacement of diesel school buses with zero emission school buses within the Clean Diesel Grants program. In June 2025, In June 2025, the Department of Ecology submitted a required report to the governor and the legislature that provides a status update and a summary of recommendations and implementation considerations.
In December 2024, the Office of the Superintendent of Public Instruction published a requires report to the legislature on its statewide survey on total cost of ownership (TCO) of existing zero emission school buses. Using this formula, once the TCO of a zero emission school bus, or vehicles used in lieu of buses, is at or below that of a diesel school bus, school districts may only receive funding to purchase zero emission school buses. Zero emission school bus refers to a school bus that produces zero exhaust emission of any air pollutant and any greenhouse gas other than water vapor.
(Reference Revised Code of Washington 28A.160.195, 28A.160.140, 70A.15.4200, and 28A.300)
Zero Emission Truck Support and Demonstration
The Northwest Seaport Alliance (NWSA) must establish and coordinate a zero-emission truck stakeholder group to lead the development and implementation of at least one zero-emission drayage truck demonstration project and develop a roadmap to shift the NWSA cargo gateway fleet to zero-emission trucks, by 2050.
(Reference House Bill 1125, 2023)
Zero Emission Vehicle (ZEV) Credits Excise Tax
Beginning on January 1, 2026, an excise tax is imposed on original equipment manufacturers (OEMs) regulated under Washington State’s ZEV program that generate surplus ZEV credits above the applicable annual ZEV requirement. Sold credits are taxed at 2% and banked credits are taxed at 10%, with proceeds funding electric vehicle incentives and state climate initiatives starting in 2027. OEMs generating fewer than 25,000 ZEV credits per model year are exempt.
Zero Emission Vehicle (ZEV) and Infrastructure Manufacturing Siting and Permitting Support
The Interagency Clean Energy Siting Council (Council) supports siting and permitting of new clean energy projects, including ZEV, electric vehicle charging infrastructure and equipment, and hydrogen fueling equipment manufacturing facilities. The Council must identify opportunities to improve siting and permitting of clean energy projects and may establish working groups and advisory committees to inform the development of new siting and permitting approaches. Beginning October 1, 2024, the Council must publish an annual report of their activities and recommendations. The Council published the Considerations for Consolidating Clean Energy Permits and Applications report in October 2024.
(Reference Revised Code of Washington 43.394.010, 43.394.020, and 43.158.010)
Zero Emission Vehicles (ZEVs) Support
The Department of Commerce must develop and maintain a publicly available mapping and forecasting tool that locates and provides information on electric vehicle charging and hydrogen fueling infrastructure. Electric utilities with more than 25,000 customers must analyze how their resource plans support and account for anticipated levels of ZEV use, relevant infrastructure forecasts and associated energy impacts, and information from the utilities’ transportation electrification plans.
(Reference Revised Code of Washington 47.01.520 and 19.280.030)
State Incentives
Alternative Fuel Vehicle (AFV) Retail Sales and Use Tax Exemption
The sale or lease of new or used passenger vehicles, light-duty trucks, and medium-duty passenger AFVs is exempt from the state retail sales and use tax. Eligible AFVs include those powered by natural gas, propane, hydrogen, or electricity. To be eligible, new vehicles may not be valued above $45,000 and used vehicles may not be valued above $30,000. The tax exemption may apply to all or a portion of the vehicle’s value. The maximum eligible amount for used purchased or leased vehicles is $16,000. The exemption for sales of used and new vehicles expired on July 31, 2025. Leases that qualify for the exemption on or before July 31, 2025, can continue to claim the exemption on lease payments due through July 31, 2028. The maximum exemption amounts for vehicles are as follows:
| Purchase or Lease Year | Maximum New Vehicle Price Amount Eligible for Exemption (Purchased or Leased) | Maximum Used Vehicle Price Amount Eligible for Exemption (Purchased or Leased) |
|---|---|---|
| August 1, 2021 - July 31, 2023 | $20,000 | $16,000 |
| August 1, 2023 - July 31, 2025 | $15,000 | $16,000 |
For more information, see the Renewable Energy/Green Incentives section of Washington State Department of Revenue’s Tax Incentives Programs website.
(Reference Revised Code of Washington 82.08.9999)
Alternative Fueling Infrastructure Grant Program
The Washington State Department of Transportation (WSDOT) offers competitive grants to deploy Level 2 and direct current fast charging electric vehicle (EV) chargers and hydrogen fueling infrastructure along highway corridors in Washington. Priority corridors for these grants include state highways for EV charging and interstates, U.S. highways, and state routes for hydrogen stations. Eligible project costs include siting, equipment purchases, electrical upgrades, installation, operations, and maintenance. For more information, including funding availability and application periods, see the WSDOT Zero Emission (zero tailpipe emission vehicles) Vehicle (ZEV) Grants and ZEV Infrastructure Partnerships Grant websites.
(Reference Revised Code of Washington 47.04.350)
Commercial Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit
Businesses are eligible to receive tax credits for purchasing new or used medium- and heavy-duty AFVs and medium- and heavy-duty vehicles converted to alternative fuels, and installing alternative fueling infrastructure. Eligible alternative fuels are natural gas, propane, hydrogen, dimethyl ether, and electricity. Tax credits for qualified alternative fueling infrastructure are for up to 50% of the cost to purchase and install the infrastructure. New commercial vehicle tax credit amounts vary based on gross vehicle weight rating (GVWR) and are up to 75% of the incremental cost, with maximum credit values as follows:
| GVWR | Maximum Credit Amount Per Vehicle |
|---|---|
| Up to 14,000 pounds (lbs.) | $25,000 |
| 14,001 to 26,500 lbs. | $50,000 |
| Over 26,500 lbs. | $100,000 |
Leased AFVs may receive a tax credit for 75% of the incremental cost above the price of a comparable conventionally fueled vehicle, up to $25,000, per vehicle. This exemption also applies to qualified used vehicles modified with a U.S. Environmental Protection Agency-certified aftermarket conversion, if the vehicle is being sold for the first time after modification. Modified vehicles are eligible for credits equal to 50% of the commercial vehicle conversion cost, up to $25,000.
Each entity may claim up to $250,000 or credits for 25 vehicles per year. Applications must be submitted within 30 days of vehicle acquisition or installation completion. All credits earned must be used in that calendar year or the subsequent year. Tax credits are available on a first-come, first-served basis and are subject to annual limits of $6 million ($2 million for each of 3 vehicle classes) for vehicle credits, and $2 million for infrastructure. For more information, see the Renewable Energy/Green Incentives section of Washington State Department of Revenue’s Incentives Programs website.
(Reference Revised Code of Washington 82.16.0496 and 82.04.4496)
Diesel Emission Reduction Grants
The Washington State Department of Ecology offers grants for the replacement or repower of medium- and heavy-duty diesel refuse trucks, street sweepers, freight switcher locomotives, port cargo handling equipment, and forklifts with zero emission vehicles (ZEVs) and associated infrastructure. Grants are available in the following amounts:
| Eligible ZEVs | Maximum Grant Amount |
|---|---|
| Zero Emission Refuse Vehicles and Street Sweepers | 80% of project costs, up to $750,000 |
| Zero Emission Freight Switcher Locomotives | 60% of project costs, up to $3,500,000 |
| All-electric Port Cargo Handling Equipment and Forklifts | 80% of project costs, up to $400,000 |
Eligible applicants include local and state government entities, utilities, port authorities, school districts, universities, and tribal governments. Applicants located in environmental justice communities will be given funding priority. Additional terms and conditions apply. This program is funded by Washington’s portion of the Volkswagen (VW) Environmental Mitigation Trust. For more information, including application guidelines, see the Washington State Department of Ecology VW Enforcement Action Grants website.
Fuel Cell Electric Vehicle (FCEV) Tax Exemption
Passenger vehicles, light-duty trucks, and medium-duty passenger FCEVs are exempt from state sales and use taxes. This includes used FCEVs and the first 650 purchases or leases of new FCEVs. The maximum value amount eligible for the tax exemption for new vehicles is 50% of the cost, with no cap, and for used vehicles it is the lesser of $16,000 or the fair market value of the vehicle at the time of leasing. The FCEV exemption may not be combined with the Retail Sales and Use Tax Exemption and is set to expire on June 30, 2029, or in the month following the sale or lease of the first 650 new vehicles qualifying for this exemption, whichever comes first. These caps apply to both vehicle sales and leases, with leases continuing to receive the exemption after the expiration date of the exemption if they were initiated before the expiration.
For more information, see the Renewable Energy/Green Incentives section of Washington State Department of Revenue’s Tax Incentives Programs website.
(Reference Revised Code of Washington 82.08.993 and 82.12.817)
Public Transportation Grant Funding
The Washington State Department of Transportation (WSDOT) administers grants for public transportation projects, including alternative fuel vehicle acquisitions and associated charging or fueling infrastructure. Relevant programs may include Green Transportation Capital, Public Transit Rideshare, Regional Mobility, State Buses and Bus Facilities, and Tribal Transit Mobility. For more information, including funding availability and program dates, see the WSDOT Public Transportation Grant Programs and Awards website.
(Reference Revised Code of Washington 46.66.500, 46.66.807, 47.66.030, and 47.66.120)
School Bus Transition Grants
The Washington State Department of Ecology offers grants within the Clean Diesel program to transition school bus fleets away from fossil fuels. The primary recipients are owners of school buses that transport K-12 students to public, tribal, and charter schools for the replacement of diesel school buses with zero emission school buses, including associated charging and fueling infrastructure. Grant awards may be up to 100% of the incremental cost of a zero emission school bus and up to $50,000 per bus for the cost of charging or fueling infrastructure. Applicants may receive grants for up to 10 buses per funding round. Increased funding (115% of the incremental cost and $75,000 per bus for charging or fueling infrastructure) is available for schools located in a small or rural local education agency or for schools in which 50%–94% of students are eligible for free or reduced price lunch program and there is no cap on the number of buses that may be requested. For schools that are rural or where over 95% of students are eligible for free or reduced price lunch, funding may be available for the full cost of up to three zero emission school buses per funding round and $75,000 per bus for charging or fueling infrastructure. The zero emission school bus grant defines zero emission bus as a vehicle that has a drivetrain that produces, under any possible operational mode or condition, zero exhaust emissions of any criteria air pollutant (or precursor thereof).
In addition to school buses, in some years there are grants available for other diesel vehicles (e.g., yard trucks, diesel marine engines). For more information, see the Department of Ecology Clean Diesel Grants website.
(Reference Revised Code of Washington 70A.15.4200)
Zero Emission Vehicle (ZEV) Carshare and Infrastructure Grant
The Zero-emissions (zero tailpipe emission) Access Program (ZAP), administered by the Washington State Department of Transportation (WSDOT), offers grants to nonprofit organizations and local governments to design and create a ZEV (zero tailpipe emission) carshare program in underserved and low-to moderate-income communities. Grant awards may range from $50,000 to $200,000. Eligible projects include:
- Contract, lease, or purchase of ZEVs;
- Construction or installation of correlated chargers or fueling infrastructure; and,
- Operational costs to develop, implement, and manage a car share program.
Applicants must provide matching funds as direct contributions or gifts-in-kind for at least 10% of the total cost of the project. Additional eligibility requirements may apply. For more information, including eligible communities and program dates, see the WSDOT ZEV Grants website.
(Reference Revised Code of Washington 47.04.355 and Senate Bill 5801, 2025)
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