Natural Gas Laws and Incentives in New Hampshire

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

Laws and Regulations

Alternative Fuel Dealer License

Any person who sells natural gas and propane on which the road tax has not been paid and who is not licensed and bonded must become licensed through the New Hampshire Department of Safety. The alternative fuel dealer must collect and remit road taxes and will be subject to a penalty for noncompliance. Failure to obtain a license and demonstrate compliance may result in fines and loss of the license, respectively.

(Reference New Hampshire Revised Statutes 260:36, 260:38, and 260:40)

Alternative Fuels Road Tax

Alternative fuels including, but not limited to, natural gas or propane sold by a licensed alternative fuel dealer and used in on-road vehicles are subject to a $0.222 per gallon equivalent road tax. The New Hampshire Department of Safety will define rules for the applicable conversion rates for natural gas and propane based on nationally recognized standards for weights and measures. Certain exemptions apply, including sales to government entities, between duly licensed distributors, and sales of exported motor fuel. For taxation purposes, electricity is not considered an alternative fuel. For more information, see the Road Toll Bureau website.

(Reference New Hampshire Revised Statutes 259:3-d, 259:58-b, 260:32c, 260:47, and 260:52)

State Energy Strategy Development

The New Hampshire Office of Energy Planning (Office), in consultation with the New Hampshire Energy Advisory Council, prepared a 10-year energy strategy for the state that addresses the impact of transportation policies and programs on electricity energy needs in the state in 2018. Strategy recommendations include enabling and encouraging adoption of electric vehicles and reducing unnecessary idling. The Office will review and update the strategy triennially. For more information, including the strategy, visit the Strategy Revision website.

(Reference New Hampshire Revised Statutes 12-P:7-A)

State Incentives

Diesel Emissions Reduction Grants

The New Hampshire Department of Environmental Services (NHDES) provides U.S. Environmental Protection Agency Diesel Emissions Reduction Act (DERA) funding for projects that reduce diesel emissions in New Hampshire. Funding for up to 100% of eligible project costs is available for businesses, individuals, and local or state agencies that reduce diesel emissions by converting engines to alternative fuels, retrofitting exhaust controls, purchasing new vehicles, or adding idle reduction equipment. Eligible alternative fuels include propane, compressed natural gas, and electricity. Grants will be awarded on a competitive basis, with equity and environmental justice considerations as part of the evaluation criteria. For more information, including funding amounts and how to apply, see the NHDES New Hampshire DERA Project website.

More Laws and Incentives

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