Natural Gas Laws and Incentives in West Virginia

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

Laws and Regulations

Alternative Fuel Production Subsidy Prohibition

Incentives or subsidies from political subdivisions for the production of alternative fuels are prohibited by law, with exceptions for certain coal-based liquid fuels. (Reference West Virginia Code 8-27A-3 and 11-13D-3D)

Alternative Fuel Use Promotion

The West Virginia Public Service Commission (PSC) ) does not have jurisdiction over the sale of alternative fuels by non-utilities. The PSC authorizes ratemaking allowances for public utilities to encourage the use of alternative fuels in new demonstration technologies, including alternative fuel vehicles (AFVs). AFVs included those using natural gas, methanol, or electricity as the primary fuel. (Reference West Virginia Code 24-2D-1 through 24-2D-3)

Alternative Fuel Use Requirement

West Virginia higher education governing boards must use alternative fuels to the maximum extent feasible. (Reference West Virginia Code 18B-5-9)

Alternative Fuel Vehicle Fee

In addition to standard registration fees, owners of vehicles fueled with natural gas, hydrogen, or electricity must pay an annual fee of $200. Plug-in hybrid electric vehicle owners must pay an annual fee of $100. (Reference West Virginia Code 17A-10-3C)

Alternative Fuels Tax

Alternative fuels are subject to an excise tax at a rate of $0.205 per gasoline gallon equivalent, with a variable component equal to at least 5% of the average wholesale price of the fuel. (Reference West Virginia Code 11-14C-2, 11-14C-5, 11-14C-6a, 11-15A-13a, and 11-15-18b)

Provision for Establishment of Alternative Fuel Vehicle (AFV) Acquisition Requirements

The West Virginia Department of Administration (Department) may require that up to 75% of a state agency's fleet consist of AFVs. To meet these requirements, agencies may purchase or lease AFVs or convert existing vehicles to operate using alternative fuels. The Department may waive this requirement if an agency's vehicles are operating in an area where the agency cannot reasonably establish a central alternative fueling station or the lifetime cost of the vehicle or fueling infrastructure is significantly higher as compared to conventional vehicles or fuels. This requirement does not apply to law enforcement, emergency, public transit authority, state rail authority, non-road vehicles, or school buses. (Reference West Virginia Code 5A-2A-1 and 5A-2A-2)

State Incentives

Alternative Fuel School Bus Incentive

Any county that uses compressed natural gas (CNG) or propane for the operation of any portion of its school bus fleet is eligible for a 10% reimbursement from the West Virginia Department of Education to help offset maintenance, operation, and other costs incurred from using those CNG or propane school buses. Any county qualifying for this allowance must submit a plan that includes the future use of the CNG or propane fueled school buses to the Department of Education. (Reference West Virginia Code 18-9A-7)

Point of Contact
Tommy Young
Executive Director
West Virginia Department of Education, Office of School Facilities & School Transportation
Phone: (304) 558-2711

Special Fuel Tax Exemption

Natural gas sold in bulk quantities of 500 gallons or more for use in municipal-owned vehicles may be exempt from the fuel excise tax. To receive the exemption, municipalities must submit an application to the State Tax Commissioner along with an affidavit, a copy of invoices, and the paid sales slips. (Reference West Virginia Code 11-14-5)

More Laws and Incentives

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