Natural Gas Laws and Incentives in Maryland

The list below contains summaries of all Maryland laws and incentives related to natural gas.

State Incentives

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:

TechnologyMaximum Grant Award per Station
Direct Current Fast Charger$55,000
Ethanol$35,000
Hydrogen$300,000
Natural Gas$500,000
Propane$100,000

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 TechnologyVehicle ClassMaximum Grant Award per Vehicle
Battery- and Plug-In Hybrid Electric VehiclesClass 1-2$5,000
Battery- and Plug-In Hybrid Electric VehiclesClass 3-8$50,000
Natural Gas, Propane, Biodiesel, Hydrogen VehiclesClass 1-2$7,500
Natural Gas, Propane, Biodiesel, Hydrogen VehiclesClass 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

To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.