Natural Gas Laws and Incentives in Maryland
The list below contains summaries of all Maryland laws and incentives related to natural gas.
Alternative Fuel Infrastructure Grants
The Clean Fuels Incentive Program (CFIP), administered by the Maryland Energy Administration (MEA), provides grants to construct publicly accessible alternative fueling infrastructure. Grant award amounts are based on alternative fuel type and may cover up to 50% of project costs. Grants are available in the following amounts:
|Technology||Maximum Grant Award per Station|
|Direct Current Fast Charger||$55,000|
Only businesses are eligible to apply. Eligible costs include site design, equipment installation, site preparation, utility connections, and station signage. Additional requirements apply. Grants will be awarded on a competitive basis. For more information, see the MEA’s CFIP Program website.
Alternative Fuel Vehicle (AFV) Grants
The Clean Fuels Incentive Program (CFIP), administered by the Maryland Energy Administration (MEA), provides grants to purchase new and converted fleet 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|
|Battery- and Plug-In Hybrid Electric Vehicles||Class 1-2||$5,000|
|Battery- and Plug-In Hybrid Electric Vehicles||Class 3-8||$50,000|
|Natural Gas, Propane, Biodiesel, Hydrogen Vehicles||Class 1-2||$7,500|
|Natural Gas, Propane, Biodiesel, Hydrogen Vehicles||Class 3-8||$50,000|
Eligible fleet applicants include school districts, nonprofits, commercial entities, and local and municipal governments. AFVs purchased for individual or personal use are not eligible. Grants will be awarded on a competitive basis. For more information, see MEA’s CFIP Program 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. Funding for this program is not currently available (verified April 2020). 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).
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 specification 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 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)
More Laws and Incentives
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