Natural Gas Laws and Incentives in Connecticut
The list below contains summaries of all Connecticut laws and incentives related to natural gas.
Laws and Regulations
Alternative Fuel Vehicle (AFV) Procurement Preference
In determining the lowest responsible qualified bidder for the award of state contracts, the Connecticut Department of Administrative Services may give a price preference of up to 10% for the purchase of AFVs or for the purchase of conventional vehicles plus the conversion equipment to convert the vehicles to dual or dedicated alternative fuel use. For these purposes, alternative fuels include natural gas, hydrogen, propane, or electricity used to operate a motor vehicle.
(Reference Connecticut General Statutes 4a-59)
Alternative Fuel and Fuel-Efficient Vehicle Acquisition and Emissions Reduction Requirements
Cars and light-duty trucks purchased by state agencies must meet the following requirements:
- Have an average U.S. Environmental Protection Agency estimated fuel economy of at least 40 miles per gallon;
- Comply with state fleet vehicle acquisition requirements set forth under the Energy Policy Act of 1992 (EPAct); and
- Obtain the best achievable fuel economy per pound of carbon dioxide emitted for the applicable vehicle classes.
Alternative fuel vehicles (AFVs) that the state purchases to comply with these requirements must be capable of operating on an EPAct-defined alternative fuel that is available in the state.
In addition, all cars and light-duty trucks that the state purchases or leases must be hybrid electric vehicles, plug-in hybrid electric vehicles, or capable of using alternative fuel. All AFVs purchased or leased must be certified to the California Air Resources Board’s (ARB) Ultra Low Emission Vehicle II (ULEV II) standard, and all light-duty gasoline vehicles and hybrid electric vehicles the state purchases or leases must be certified, at a minimum, to the California ARB ULEV II standard.
Beginning January 1, 2026, cars and light-duty trucks purchased by state agencies must meet the following electric vehicle (EV) acquisition goals:
- 50% of vehicle acquisitions must be EVs by 2026;
- 75% of vehicle acquisitions must be EVs by 2028; and,
- 100% of vehicle acquisitions must be EVs by 2030.
Lower EV maintenance costs must be considered when Connecticut Department of Administrative Services (DAS) leases vehicles to other state agencies. The DAS must report annually on the composition of the state fleet, including the volume of alternative fuels used. Beginning January 1, 2026, and annually thereafter, if procurement of light-duty cars and trucks purchased by the state does not meet the ZEV procurement requirements, DAS must submit an explanatory report to the General Assembly.
Vehicles that the Connecticut Department of Public Safety designates as necessary for the Department of Public Safety to carry out its mission are exempt from these provisions.
(Reference Connecticut General Statutes 4a-67d)
Compressed Natural Gas (CNG) and Propane Tax
CNG and propane used in motor vehicles is subject to a state motor fuel tax rate of $0.26 per gasoline gallon equivalent (GGE). For taxation purposes, one GGE is equal to 123.57 standard cubic feet of natural gas and 35.97 cubic feet of propane. For more information, see the Connecticut Department of Revenue Services Special Notice website.
(Reference Special Notice 2014-2 and Connecticut General Statutes 12-458)
School Bus Emissions Reduction
Each full-sized school bus with a Model Year (MY) 1994 or newer engine must be equipped with specific emissions control systems, including either: a closed crankcase filtration system and a level 1, level 2, or level 3 device; an engine that the U.S. Environmental Protection Agency (EPA) has certified as meeting MY 2007 emissions standards; or use of compressed natural gas or other alternative fuel that EPA or the California Air Resources Board has certified to reduce particulate matter emissions by at least 85% as compared to ultra-low sulfur diesel fuel. Beginning January 1, 2035, school districts may only purchase zero-emission school buses, and all school buses in Connecticut must be zero emission by 2040. School districts within environmental justice communities must transition to zero emission buses by January 1, 2030. School districts may enter zero-emission school bus contracts for 10-year periods.
(Reference Connecticut General Statutes 14-164o, and 22a-201e)
State Incentives
Diesel Emissions Reductions Grants
The Connecticut Department of Energy and Environmental Protection (DEEP) provides U.S. Environmental Protection Agency Diesel Emissions Reduction Act (DERA) funding for projects that reduce diesel emissions in Connecticut. Funding for eligible project costs is available for government agencies organizations, and businesses that reduce diesel emissions by converting engines to alternative fuels, retrofitting exhaust controls, purchasing new vehicles, or adding idle reduction equipment. DEEP prioritizes projects that benefit environmental justice communities. Additional terms and conditions apply. For more information, including funding amounts and how to apply, see the DEEP DERA Grants website.
Loans for Residential Charging or Natural Gas Fueling Infrastructure
The Connecticut Green Bank offers Smart-E low-interest loans for Connecticut electric vehicle (EV) drivers to purchase Level 2 and direct current fast charging (DCFC) stations or natural gas vehicle fueling equipment. To qualify, applicants must own and occupy the residence at which the EV charging stations or natural gas fueling equipment will be installed. For more information, see the Connecticut Green Bank Smart-E Loans website.
More Laws and Incentives
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