Natural Gas Laws and Incentives in Nevada
The list below contains summaries of all Nevada laws and incentives related to natural gas.
Laws and Regulations
Alternative Fuel Tax
Special fuels, including biodiesel, biodiesel blends, biomass-based diesel, biomass-based diesel blends, and liquefied natural gas (LNG), have a reduced tax rate of $0.27 per gallon. Liquefied petroleum gas (LPG or propane) and compressed natural gas (CNG) are taxed at a rate of $0.064 and $0.21 per gallon, respectively. For taxation purposes, a gallon is measured as 5.66 pounds (lbs.) or 126.67 cubic feet of CNG, 4.2 lbs. or 36.3 cubic feet of LPG, or 6.06 lbs. of LNG. These tax rates are only applicable in counties with populations between 100,000 and 700,000 residents.
(Reference Nevada Revised Statutes 366.190, 366.197, and 373.066)
Authorization for High Occupancy Vehicle (HOV) Lane Exemption
The Nevada Department of Transportation, in consultation with the U.S. Department of Transportation Federal Highway Administration and U.S. Environmental Protection Agency, may establish a program allowing federally certified alternative fuel vehicles to operate in HOV lanes regardless of the number of passengers.
(Reference Nevada Revised Statutes 484A.460 and 484A.463)
Funds for School District Alternative Fuel Use
A portion of any penalty assessed for violations of air pollution control laws must be deposited in the county school district fund where the violation occurred. The local air pollution control board must approve expenditures from the fund, which are limited to education programs on topics relating to air quality and projects to improve air quality, including the purchase and installation of equipment to retrofit district school buses to operate on biodiesel, compressed natural gas, or a similar fuel that reduces emissions.
(Reference Nevada Revised Statutes 445B.500)
Renewable Natural Gas (RNG) Use and Cost Recovery Authorization
The Public Utilities Commission of Nevada must adopt regulations authorizing a public utility that purchases natural gas for resale to engage in RNG activities and to recover reasonable costs associated with RNG activities that provide certain environmental benefits. RNG activities include but are not limited to, investing in or building and operating an RNG facility, extending the transmission or distribution system of a public utility, or purchasing RNG. Additionally, a public utility which purchases natural gas for resale must attempt to incorporate RNG into its gas supply portfolio. Additional terms and conditions apply. RNG is defined as processed biogas that meets quality standards to be injected into the natural gas pipeline.
(Reference Nevada Revised Statutes 704.9995 through 704.9997)
State Fleet Vehicle Acquisition and Fuel Use Requirements
State agencies must transition light-duty vehicles to zero-emission vehicles (ZEVs) by 2040 and medium- and heavy-duty vehicles to ZEVs by 2050. To support these goals, state agencies must prioritize low emission vehicles when purchasing light-duty motor vehicles. State agencies that purchase a diesel vehicle must ensure the vehicle can use biodiesel fuel blends of at least 20%. When refueling gasoline and diesel vehicles, agencies must prioritize the purchase of ethanol and biodiesel fuel. Exceptions may apply.
(Reference Senate Bill 262, 2023)
State Incentives
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Emissions Inspection Exemption
AFVs are exempt from Nevada’s emissions testing requirements. A new HEV is exempt from emissions inspection testing for the first five model years, after which the vehicle must comply with emissions inspection testing requirements on an annual basis. For more information, see the Nevada Emissions Control Program website.
(Reference Nevada Revised Statutes 336.060, 445B.770, 44B.815 and 445B.825 )
Heavy-Duty Vehicle Emissions Reduction Grants
The Nevada Division of Environmental Protection (NDEP) administers Nevada’s portion of the Volkswagen (VW) Environmental Mitigation Trust through the Nevada Diesel Emission Mitigation Fund. The fund assists publicly- and privately-owned fleets with the replacement or repower of model year 2009 or older medium- and heavy-duty diesel-powered vehicles. Funding amounts vary based on vehicle, applicant, and fuel type. For more information, including application periods and guidelines, see the NDEP VW Settlement Funds website.
Idle Reduction Technology, Natural Gas Vehicle (NGV), and Electric Vehicle (EV) Weight Exemption
Any motor vehicle equipped with an auxiliary power unit or other qualified idle reduction technology may exceed the maximum gross vehicle weight limit by up to 550 pounds (lbs.) to compensate for the additional weight of the idle reduction technology. NGVs and EVs may exceed the maximum gross vehicle weight limit for comparable conventional fuel vehicles by up to 2,000 lbs.
(Reference Nevada Revised Statutes 484D.635)
More Laws and Incentives
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