Hydrogen Laws and Incentives in Vermont

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

Laws and Regulations

Carbon Reduction Strategy

The Vermont Agency of Transportation (VTrans) must develop a carbon reduction strategy. To do so, VTrans must:

• Identify and evaluate the effectiveness of policies and programs to reduce transportation sector greenhouse gas (GHG) emissions;
• Work with stakeholders and the public to identify ways to reduce transportation sector GHG emissions; and,
• Determine how federal funds will be used to address transportation resilience.

VTrans published a report detailing their findings (PDF) in November 2023. For more information, see the VTrans Carbon Reduction Strategy website.

(Reference House Bill 479, 2023)

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 (PDF) 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

Vermont 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 2026, 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 Vermont. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the Vermont Department of Environmental Conservation Low Emission Vehicles website.

(Reference Code of Vermont Regulations 12-030-040)

Zero Emission Vehicle (ZEV) Deployment Support

Vermont joined California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island 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 (PDF) (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 (PDF) 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 ZEVs website.

State Incentives

Heavy-Duty Vehicle Emissions Reduction Grants

Through the Vermont Diesel Emissions Reduction Grants Program, the Vermont Department of Environmental Conservation (DEC) provides funding to local, state and regional agencies or departments, businesses, institutions, and nonprofit organizations for projects focused on reducing emissions from diesel engines and vehicles. Qualifying heavy-duty vehicles include buses and Class 5-8 trucks. Projects eligible for funding are as follows:

• Verified emission control technologies;
• Verified idle reduction technologies;
• Verified aerodynamic technologies and low rolling resistance tires;
• Certified engine replacements;
• Alternative fuel conversions; and,
• Certified vehicle or equipment replacements.

All technologies and engines must be certified by the U.S. Environmental Protection Agency. Alternative fuels include, but are not limited to, natural gas, propane, and electricity. Cost share requirements vary by project. For more information, including application details, see the DEC Diesel Emissions Reduction Assistance website.

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