Propane Laws and Incentives in Utah
The list below contains summaries of all Utah laws and incentives related to propane.
Laws and Regulations
Alternative Fuel Use and Vehicle Acquisition Requirement
At least 50% of new or replacement light-duty state agency vehicles must meet Bin 2 emissions standards established in Title 40 of the U.S. Code of Federal Regulations, or be propelled to a significant extent by electricity, natural gas, propane, hydrogen, or biodiesel.
(Reference Utah Code 63A-9-401 and 63A-9-403)
Alternative Fuel Vehicle Inspection and Permit
The Utah State Tax Commission (Commission) may require vehicles operating on clean fuels to be inspected for safe operation. In addition, clean fuel vehicles that have a gross vehicle weight rating of more than 26,000 pounds or have more than three axels are required to obtain a special fuel user permit from the Commission. Clean fuels are defined as propane, natural gas, electricity, and hydrogen.
(Reference Utah Code 59-13-102, 59-13-303, and 59-13-304)
State Incentives
Alternative Fuel Vehicle Conversion Grants
The Utah Department of Environmental Quality (DEQ) Conversion to Alternate Fuel Grant Program provides grants to businesses and government entities that purchase clean vehicles or install conversion equipment on eligible vehicles that allows the vehicles to operate on alternative fuel or reduces a vehicle’s emissions of regulated pollutants. Award recipients are required to pass these savings along to the individual who purchases the converted vehicle. Grants may cover 100% of the cost of purchasing a clean vehicle or 50% of the cost of conversion, up to $2,500. Eligible clean vehicles must operate solely on alternative fuel, and may include on-road vehicles and off-road equipment. Eligible alternative fuels include propane, natural gas, and electricity. For more information, see the DEQ Conversion to Alternative Fuel Grant Program website.
(Reference Utah Code 19-1-401 through 19-1-403.3, and 19-2-301 through 19-2-304)
Alternative Fuel Vehicle Decal and High Occupancy Vehicle (HOV) Lane Exemption
Propane, natural gas, all-electric, and plug-in hybrid electric vehicles are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must display the special clean fuel decal issued by the Utah Department of Transportation (UDOT); a limited number of decals are available. This exemption expires September 29, 2025. For more information about qualifying vehicles and decal availability, see the UDOT Clean Fuel Vehicle Decal and Permit website.
(Reference Utah Code 41-1a-416, 41-1a-418, 41-6a-702, 59-13-102, and 72-6-121)
Propane and Electricity Tax Exemptions
Propane and electricity used to operate motor vehicles are exempt from state motor fuel taxes. For more information, see the Utah State Tax Commission website.
(Reference Utah Code 59-13-102, 59-13-201, and 59-13-301)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.