Hydrogen Laws and Incentives in Maryland

The list below contains summaries of all Maryland laws and incentives related to hydrogen.

State Incentives

Clean Energy Grants

The Maryland Smart Energy Communities (MSEC) program, administered by the Maryland Energy Administration (MEA), offers local governments grants for transportation-related projects, including the purchase of new electric vehicles (EVs) or alternative fuel vehicles and the installation of EV chargers. Grants are available in the following amounts:

Project Type Maximum Grant Award
Purchase of a New EV with an All-Electric Range of up to 199 Miles $3,750 per vehicle
Purchase of a New EV with an All-Electric Range of Over 200 Miles $7,500 per vehicle
EV Charging Equipment and Installation $6,000 per EV charger

Communities may apply for funding for multiple projects for a maximum grant award of $55,000 per project, or communities may apply for up to $150,000 for a single project. Additional requirements may apply. For more information, including requirements and application deadline, see the MEA MSEC website.

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Grant

The Maryland Energy Administration (MEA) offers grants to local government and commercial fleets for the purchase of new on- and off-road MHD ZEVs. The awarded funding amount is 75% of the difference between the cost of the ZEV and the conventional fuel vehicle alternative as listed in the Argonne National Laboratory Alternative Fuel Life-Cycle Environmental and Economic Transportation (AFLEET) tool. Eligible vehicles must be either electric vehicles (EVs) or hydrogen fuel cell EVs for commercial or industrial use. For more information, including additional program requirements, see the MEA MHD ZEV Grant Program website.

(Reference Maryland Statutes, State Government Code 9-2010 and 9-2011)

Laws and Regulations

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Registration Fee

Beginning July 1, 2025, in addition to standard registration fees, zero-emission vehicle owners must pay an annual fee of $125 and plug-in hybrid electric vehicle owners must pay an annual fee of $100.

(Reference Senate Bill 362, 2024 and Maryland Statutes, Transportation Code 13-956 and 23-206.4)

Light-Duty Zero Emission Vehicle (ZEV) Acquisition Requirements

100% of passenger vehicles in the state fleet must be ZEVs by 2031 and other light-duty vehicles must be ZEVs by 2036. To support the state fleet transition to ZEVs, state agencies must coordinate vehicle acquisition efforts to increase the share of ZEVs in the state fleet. Passenger vehicle ZEV acquisitions must increase according to the following schedule:

Fiscal Year (FY) Acquisition Requirement
2023 through 2025 25% of vehicles must be ZEVs
2026 through 2027 50% of vehicles must be ZEVs
2028 and later 100% of vehicles must be ZEVs

Other light-duty ZEV acquisitions must increase according to the following schedule:

FY Acquisition Requirement
2028 through 2030 25% of vehicles must be ZEVs
2031 through 2032 50% of vehicles must be ZEVs
2033 and later 100% of vehicles must be ZEVs

ZEVs include vehicles powered exclusively by electricity or hydrogen. If state agencies are unable to acquire ZEVs, a plug-in hybrid electric vehicle may be purchased instead. Paratransit vehicles are exempt from these acquisition requirements. The Maryland Department of General Services must deploy adequate charging and refueling infrastructure to support ZEV adoption and report vehicle acquisition progress to the General Assembly on an annual basis.

(Reference Maryland Statutes State Finance and Procurement Code 14-418)

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 December 1, 2023, Maryland must 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. Beginning with model year 2027, 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 Maryland. ZEVs include all-electric and fuel cell electric vehicles.

(Reference Maryland Statutes, State Government Code 9-2011 and Maryland Statutes, Environment Code 2-1103.1)

Zero Emission Bus Acquisition Requirement

Beginning in 2023, the Maryland Transit Administration (MTA) may only purchase zero emission buses for the state transit bus fleet. If the MTA determines that there are no zero emission buses that meet performance requirements, an alternative fuel bus may be purchased instead. The MTA must develop charging infrastructure to support zero emission buses throughout the state, provide safety and workforce development training for operations and maintenance workforces, and ensure no state government jobs are transferred to a contracting entity as a result of the transition to zero emission transit buses. For more information, including annual legislative reports, see MTA’s Zero Emissions website.

(Reference Maryland Statutes, Transportation Code 7-406)

Zero Emission Vehicle (ZEV) Deployment Support

Maryland joined California, Connecticut, Maine, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle (EV) chargers and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.

In June 2018, the Task Force published a new ZEV Action Plan for 2018-2021. Building on the 2014 Action Plan, the 2018 Action Plan makes recommendations for states and other key partners in five priority areas:
  • Raising consumer awareness and interest in EV technology;
  • Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
  • Continuing and improving access to consumer purchase and non-financial incentives;
  • Expanding public and private sector fleet adoption; and
  • Supporting dealership efforts to increase ZEV sales.

For more information, see the Multi-State ZEV Task Force website.

Zero Emission Vehicle (ZEV) Infrastructure Promotion

The Maryland Zero Emission Electric Vehicle Infrastructure Council (ZEEVIC) promotes the use of ZEVs, including electric vehicles (EVs) and fuel cell electric vehicles (FCEV), in the state. Specific responsibilities of ZEEVIC include the following:

  • Develop policies and an action plan to promote and facilitate the integration of ZEVs into the Maryland transportation network;
  • Assist in developing and coordinating statewide standards for streamlined permitting and installation of electric vehicle charging and hydrogen fueling equipment;
  • Develop recommendations for a statewide EV charging and FCEV refueling infrastructure plan, including standard pricing information displays;
  • Increase and support consumer awareness and ownership of ZEVs through public outreach;
  • Recommend incentives to support private-sector investment in ZEVs;
  • Develop targeted policies to support fleet purchases of ZEVs;
  • Develop charging solutions for multiunit dwellings;
  • Encourage local and regional efforts to promote the use of ZEVs;
  • Develop model procurement practices for light-duty vehicles that include an evaluation of the vehicle lifecycle costs inclusive of estimated fuel cost over the anticipated life of the vehicle;
  • Recommend policies that support EV charging and FCEV fueling from clean energy sources;
  • Establish performance measures for meeting ZEV related employment, infrastructure, and regulatory goals; and
  • Pursue other policies, goals, and objectives that promote the adoption of ZEVs.

The Maryland Department of Transportation must provide staff support to ZEEVIC with the assistance of the Maryland Energy Administration and the Maryland Public Service Commission. For more information, including interim reports, see the Maryland Zero Emission Electric Vehicle Infrastructure Council website and the MarylandEV website.

(Reference Chapter 378, Acts of 2015, Chapter 213, Acts of 2019, and Chapter 118, Acts of 2020)

More Laws and Incentives

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