Propane Laws and Incentives in Maryland
The list below contains summaries of all Maryland laws and incentives related to propane.
Laws and Regulations
Alternative Fuel Use Requirement
At least 50% of state vehicles using petroleum diesel fuel must use a minimum blend of 5% biodiesel (B5) or other biofuel approved by the U.S. Environmental Protection Agency as a fuel or fuel additive. This requirement does not apply to any state vehicles for which the use of biodiesel or other biofuel will void the manufacturer’s warranty for that vehicle. Biodiesel fuel is defined as a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that is designated B100 or a blend of biodiesel that meets the requirements of ASTM Standard D6751. Additionally, bi-fuel and flexible fuel vehicles capable of operating on either alternative fuel or conventional fuel must use alternative fuel when it is available.
(Reference Maryland Statutes, State Finance and Procurement Code 14-408, and and Policies and Procedures for Vehicle Fleet Management)
Alternative Fuel Vehicle (AFV) Access to Tunnels
An AFV powered by propane or natural gas may only use the Baltimore Harbor Tunnel and the Fort McHenry Tunnel if the vehicle has a dedicated alternate fuel system installed by the manufacturer of the vehicle or a fuel system that has been properly converted to an alternate fuel system, conforms to applicable federal regulations and industry standards, has a fuel capacity that does not exceed 150 pounds, and displays all proper markings and symbols.
(Reference Code of Maryland Regulations 11.07.01.03)
State Incentives
Alternative Fuel Vehicle (AFV) Grants
The Clean Fuels Incentive Program (CFIP), administered by the Maryland Energy Administration (MEA), provides grants to fleets for the retrofit or purchase of new AFVs. Grant award amounts vary and may cover up to 100% of the incremental AFV cost. Grants are available in the following amounts:
| AFV Technology | Vehicle Class | Maximum Grant Award per Vehicle |
|---|---|---|
| Electric Vehicles | Class 1-2 | $5,000 |
| Natural Gas, Propane, Biodiesel, and Hydrogen Vehicles | Class 1-2 | $7,500 |
| Natural Gas, Propane, and Biodiesel Vehicles | Class 3-8 | $50,000 |
| Electric and Hydrogen Vehicles | Class 3-7 | $80,000 |
| Electric and Hydrogen Vehicles | Class 8 | $150,000 |
Eligible applicants must be a fleet vehicle operator or purchaser and may include school districts, nonprofits, commercial entities, corporations, and local and municipal governments. AFVs purchased for individual or personal use are ineligible. Vehicles receiving funding from other state programs are ineligible. Grants will be awarded on a competitive basis, with equity and environmental justice considerations as part of the evaluation criteria. For more information, including additional eligibility criteria, see MEA’s CFIP Program website.
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 charging stations. 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 Station Equipment and Installation | $6,000 per EV charging station |
Communities already participating in the MSEC program may receive a maximum award of $55,000 per project and new communities may receive up to $75,000. Additional requirements may apply. For more information, including requirements and application deadline, see the MEA MSEC website.
Zero Emission School Bus Grant Program and Study
The Maryland Department of the Environment (MDE) administers a Zero Emission School Bus Transition Grant Program to purchase zero emission school buses, install charging infrastructure, and transition to zero emission school bus fleets. MDE and the Maryland Department of Transportation also provide technical assistance to county boards of education transitioning school buses to zero emission vehicles throughout the state.
(Reference Maryland Statutes, Environmental Code 2-1501 and 2-1503)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.