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 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)
Public Utility Definition
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 include those using natural gas, methanol, propane, or electricity as the primary fuel.
Persons or entities using movable generators to sell electricity for use in electric vehicles (EVs) at temporary EV charging locations are not public utilities. Additionally, the PSC does not have jurisdiction over temporary EV charging locations, which include:
- Fairs, festivals, and other special events;
- Locations where the electric distribution grid has been adversely affected by emergencies or disasters, natural or otherwise; or
- Locations which facilitate evacuations from such emergencies or disasters, impending or otherwise.
(Reference House Bill 2817, 2023 and West Virginia Code 24-2D-1 through 24-2D-3)
State Incentives
Alternative Fuel School Bus Incentive
Any county that uses compressed natural gas (CNG), propane, or electricity 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. A county is eligible for an additional 5% reimbursement for the portion of the school bus system that is manufactured within the state of West Virginia. Any county qualifying for this allowance must submit a plan that includes the future use of the CNG, propane, or electric school buses to the Department of Education.
(Reference West Virginia Code 18-9A-7)
Point of Contact
David Baber
Director of School Transportation
West Virginia Department of Education, Finance and School Operations
Phone: (304) 558-2711
dbaber@k12.wv.us
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 11-14-3 and 11-14-5)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.