Natural Gas Laws and Incentives in Maryland
The list below contains summaries of all Maryland laws and incentives related to natural gas.
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 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
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 chargers. 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 Equipment and Installation | $6,000 per EV charger |
Communities may apply for funding for multiple projects for a maximum grant award of $55,000 per project, or communities may apply for up to $150,000 for a single project. 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.