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 126.67 cubic feet of CNG, 36.3 cubic feet (4.2 pounds (lbs.)) of propane or 6.06 lbs. of LNG. (Reference Nevada Revised Statutes 366.190, 366.197, and 373.066)
Alternative Fuel Vehicle (AFV) Acquisition Requirement
Fleets containing 50 or more vehicles that are owned, leased, or operated by the state, a state agency, or a political subdivision of the state in a county with a population of 100,000 or more must acquire AFVs or U.S. Environmental Protection Agency certified Ultra Low Emission Vehicles (ULEVs). Covered fleets are required to purchase either AFVs or certified ULEVs for 20% of new vehicles obtained. A fleet may meet the acquisition requirements by converting existing or newly acquired vehicles to operate on alternative fuels. An AFV acquired in compliance with this mandate must operate solely on the alternative fuel except when operating in an area where the appropriate alternative fuel is unavailable. Fleets with buses or heavy-duty vehicles are included. Parties that do not comply with the requirements may be subject to fines. (Reference Nevada Administrative Code 486A.010 through 486A.250, and Nevada Revised Statutes 486A.010 through 486A.180)
Authorization for High Occupancy Vehicle (HOV) Lane Exemption
The Nevada Department of Transportation, in consultation with the Federal Highway Administration and U.S. Environmental Protection Agency, may establish a program allowing federally certified low emission, energy-efficient, and alternative fuel vehicles to operate in HOV lanes regardless of the number of passengers. (Reference Nevada Revised Statutes 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 purchasing and installing 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)
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 445B.770 through 445B.825)
Heavy-Duty Vehicle Emissions Reduction Grants
The Nevada Division of Environmental Protection (NDEP) administers Nevada's portion of the Volkswagen Environmental Mitigation Trust through the Nevada Diesel Emission 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 type, applicant type (e.g., government or non-government), and the replacing or repowering fuel. For more information, including application guidelines, see the NDEP Nevada Diesel Emission Mitigation Fund website.
More Laws and Incentives
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