Hydrogen Laws and Incentives in New York
The list below contains summaries of all New York laws and incentives related to hydrogen.
State Incentives
Alternative Fuel Vehicle Research and Development Funding
The New York State Energy Research and Development Authority’s (NYSERDA) Clean Transportation Program provides funding for projects that enhance mobility, improve efficiency, reduce congestion, and diversify transportation methods and fuels through research and development of advanced technologies. NYSERDA offers annual solicitations that support new product development and demonstration as well as research on new transportation policies and strategies. NYSERDA also supports projects that demonstrate the benefits of commercially available products that are underutilized in New York State. Once developed, NYSERDA provides incentives to accelerate the market introduction of emerging technologies through its ChargeNY program. For more information and funding opportunities, see the NYSERDA Clean Transportation Program website.
Alternative Fueling Infrastructure Tax Credit
A state tax credit is available for alternative fuel vehicle fueling infrastructure installed in the state. The tax credit is equal to 50% of the infrastructure cost, up to a $5,000 credit. This includes infrastructure for storing or dispensing an alternative fuel into a motor vehicle’s fuel tank, as well as infrastructure used for charging electric vehicles. Eligible alternative fuels include natural gas, liquefied petroleum gas, hydrogen, electricity, and any other fuel that is a least 85% ethanol or other alcohol. (Reference New York Tax Law 187-b)
Heavy-Duty Alternative Fuel and Advanced Vehicle Purchase Vouchers
The New York State Energy Research and Development Authority (NYSERDA) Truck Voucher Incentive Program provides incentives for three funding tracks: all-electric and hydrogen fuel cell class 3 through 8 zero emission vehicles, non-road electric equipment, and transit buses. Incentives are released on a staggered schedule and depend on funding available for each track.
Class 3 through 8 ZEV incentives are distributed based on the following criteria, including incentives for reducing tailpipe pollutants in disadvantaged communities (DACs) and class 8 fuel cell electric vehicles (FCEVs):
| Vehicle Weight Class | Base Incentive | DAC Bonus | Small Fleet Bonus | Scrap Bonus | Per Vehicle Cap |
|---|---|---|---|---|---|
| 3 | $50,000 | $15,000 | $10,000 | $10,000 | $85,000 |
| 4 | $85,000 | $25,000 | $17,000 | $17,000 | $144,000 |
| 5 | $100,000 | $30,000 | $20,000 | $20,000 | $170,000 |
| 6 | $150,000 | $45,000 | $30,000 | $30,000 | $255,000 |
| 7 | $185,000 | $55,000 | $37,000 | $37,000 | $314,000 |
| 8 | $200,000 | $60,000 | $40,000 | $40,000 | $340,000 |
| 8 (FCEV) | $285,000 | $60,000 | $40,000 | $40,000 | $425,000 |
Non-road electric equipment is eligible for vouchers equivalent to 35% of the base price of the equipment on a per-unit basis. Additionally, non-road equipment projects that have depots or primary work locations located within DAC’s are eligible for a 10% DAC bonus, with the bonus capped at $100,000.
Class 4-8 Transit Bus incentives are available for a subset of transit agencies across the state and are based on vehicle class:
| Vehicle Weight Class (transit bus) | Voucher Amount |
|---|---|
| 4 | $100,000 |
| 5 | $125,000 |
| 6 | $150,000 |
| 7 | $250,000 |
| 8 | $385,000 |
Additional terms and conditions apply. For more information, including voucher availability and vehicle eligibility, see the NYSERDA New York Truck Voucher Incentive Program website.
Vehicle Emissions Reduction and Electric Vehicle (EV) Charging Station Project Funding
The New York State Department of Environmental Conservation (NYSDEC) provides funding for diesel vehicle replacement projects detailed in the Clean Transportation NY Beneficiary Mitigation Plan (Plan). The projects are funded by New York’s portion of the Volkswagen (VW) Environmental Mitigation Trust. The Plan provides funding for the replacement or repower of diesel medium- and heavy-duty vehicles, including Class 8 local freight or port drayage trucks, Class 4-8 school, shuttle, or transit buses, and Class 4-7 local freight trucks. The Plan also provides funding for the all-electric repower or replacement of airport ground support equipment, forklifts, and port cargo handling equipment, as well as light-duty EV chargers. For more information, including the funding opportunity list and funding priorities, see the NYSDEC VW Funding for Diesel Replacement and EV Charging Station Projects page.
Zero Emission School Bus and Infrastructure Funding
The New York State Energy Research and Development Authority (NYSERDA) New York School Bus Incentive Program (NYSBIP) offers point-of-sale vouchers to school districts for the incremental cost to purchase or repower zero emission school buses to meet state acquisition requirements. Eligible zero emission school buses include all-electric or hydrogen fuel cell electric school buses. Associated charging or fueling infrastructure may also be eligible to receive funding. Rebate amounts vary based on school bus and project type. Applicants located in disadvantaged communities are eligible for increased funding amounts. For more information, including eligibility and voucher amounts, see the NYSERDA NY School Bus Incentive Program Overview website.
(Reference New York Consolidated Laws Environmental Conservation Section, Article 58)
Zero Emission Vehicle (ZEV) Rebate and ZEV Fueling Infrastructure Grant for Municipalities
The New York State Department of Environmental Conservation’s (NYSDEC) Municipal ZEV Program (zero tailpipe emissions) offers rebates to cities, towns, villages, counties, and New York City boroughs for the purchase or lease of eligible ZEVs and grants for purchase and installation of public ZEV fueling infrastructure. Rebates of up to $7,500 are available for ZEVs and up to $500,000 for ZEV fueling infrastructure. ZEV rebate amounts vary based on a vehicle’s all-electric range and gross vehicle weight rating. Municipalities may apply for multiple ZEV rebates, worth up to $250,000, or $300,000 if in a disadvantaged community, and multiple ZEV infrastructure grants, worth up to $500,000. Additional rules and conditions apply. For more information, including eligible projects and application periods, see the NYSDEC Grant Funding for Municipalities website.
Laws and Regulations
Fuel Exclusivity Contract Regulation
Motor fuel franchise dealers may obtain alternative fuels from a supplier other than a franchise distributor. Any franchise provision that prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, or compressed natural gas from a firm or individual other than the distributor is null and void as it pertains to that particular alternative fuel if the distributor does not supply or offer to supply the dealer with the alternative fuel. Distributors who violate the law by entering into exclusivity contracts will be subject to a $1,000 fine. If the distributor does offer alternative fuels, they may require the station to use their brands.
(Reference New York Consolidated Laws General Business Article 11-B,Section 199-j)
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 medium- and heavy-duty (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
New York 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 New York. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the New York Department of Environmental Conservation Controlling Air Pollution from Motor Vehicles website.
(Reference New York State Department of Environmental Conservation Regulations Title 6, Chapter III, Part 218)
State Zero Emission Vehicle (ZEV) Acquisition Plan Requirements
State agencies must prepare fleet decarbonization plans for state fleet vehicles. A light-duty vehicle (LDV) decarbonization plan must be complete by December 31, 2023, and a medium- and heavy-duty vehicle (MHDV) decarbonization plan must be complete by December 31, 2025. Fleet decarbonization plans must meet the following schedule:
- All state LDVs must be ZEVs by December 31, 2035
- All state MHD vehicles must be ZEVs by December 31, 2040
To support state fleet vehicle acquisition goals, state agencies must file their LDV fleet decarbonization plans with the GreenNY Council (GreenNY). Emergency vehicles are exempt from these requirements, but agencies must evaluate emergency ZEV technologies for adoption on an annual basis. Decarbonization plans must include interim targets to achieve decarbonization goals. State agencies must update their fleet decarbonization plans every three years. Additional conditions apply. For more information, see the New York Office of General Services GreenNY website.
(Reference Executive Order 22, 2022 and New York Consolidated Laws State Finance Article 11, Section 163-D)
Zero Emission School Bus Acquisition Requirements
Beginning July 1, 2027, school districts may only purchase or lease zero emission school buses when entering new purchase or lease contracts. School districts are exempt from this requirement if:
- The Commissioner of Social Services waives the requirements;
- Zero emission bus acquisition, recharging, or refueling equipment would result in unreasonable costs to the school district; or,
- Vehicles do not meet performance requirements.
Zero emission school buses may be powered by electricity or hydrogen. Before acquiring a zero emission bus, school districts must create a workforce development report that estimates the impact of zero emission buses on employment opportunities, identifies maintenance staff training needs, and estimates costs to train employees in how to operate zero emission buses and infrastructure.
(Reference New York Consolidated Laws Education Title 5, Article 73, Part 3, Section 3638)
Zero Emission Vehicle (ZEV) Deployment Support
New York joined California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, Oregon, Rhode Island, and Vermont in signing a memorandum of understanding (MOU) to support the deployment of ZEVs (zero tailpipe emission) 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 electric vehicle 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) Requirements
All sales or leases of new light-duty passenger vehicles in New York must be ZEVs by 2035, and all sales or leases of new medium- and heavy-duty vehicles must be ZEVs by 2045. All new off-road vehicle and equipment purchases must be zero emission by 2035.
To support the ZEV sales requirement, the New York State Energy Research and Development Authority (NYSERDA) must develop the following:
- Regulations and strategies to meet the 2035 and 2045 goals;
- A ZEV market development strategy by January 31, 2023, and update it triennially;
- Strategies to accelerate deployment of affordable ZEV infrastructure that serves low-income and disadvantaged communities; and,
- Near-term actions and investment strategies to improve ZEV infrastructure by July 15, 2023.
(Reference New York Consolidated Laws Environmental Conservation Article 19, Title 3, Section 0306-B)
Zero Emission Vehicle (ZEV) and Alternative Fueling Infrastructure Procurement Requirements
The New York Office of General Services (OGS) must develop production and assembly requirements for the purchase or retrofit of ZEVs and related infrastructure for the state fleet. Requirements for fleet vehicle procurement must include the following:
- ZEVs and related infrastructure components and parts must be produced or made in the United States; and
- Final assembly of ZEVs and related infrastructure must occur in the United States.
State agencies must create and implement a workforce development report prior to each procurement.
Exceptions and additional terms and conditions may apply. For more information, see the OGS GreenNY website.
(Reference New York Consolidated Laws Executive Article 10, Section 201-a and New York Consolidated Laws State Finance Article 11 Section 163-C)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.