Maryland Laws and Incentives

Listed below are the summaries of all current Maryland laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

State Incentives

Alternative Fuel Vehicle (AFV) Grants

The Clean Fuels Incentive Program (CFIP), administered by the Maryland Energy Administration (MEA), provides grants to purchase new and converted fleet AFVs. Grant award amounts vary and may cover up to 100% of the incremental AFV cost. Grants are available in the following amounts:

AFV TechnologyVehicle ClassMaximum Grant Award per Vehicle
Battery- and Plug-In Hybrid Electric VehiclesClass 1-2$5,000
Battery- and Plug-In Hybrid Electric VehiclesClass 3-8$50,000
Natural Gas, Propane, Biodiesel, Hydrogen VehiclesClass 1-2$7,500
Natural Gas, Propane, Biodiesel, Hydrogen VehiclesClass 3-8$50,000

Eligible fleet applicants include school districts, nonprofits, commercial entities, and local and municipal governments. AFVs purchased for individual or personal use are not eligible. Grants will be awarded on a first-come, first-served basis. For more information, see MEA’s CFIP Program website.

Alternative Fuel Infrastructure Grants

The Clean Fuels Incentive Program (CFIP), administered by the Maryland Energy Administration (MEA), provides grants to construct publicly accessible alternative fueling infrastructure. Grant award amounts are based on alternative fuel type and may cover up to 50% of project costs. Grants are available in the following amounts:

TechnologyMaximum Grant Award per Station
Direct Current Fast Charger$55,000
Ethanol$35,000
Hydrogen$300,000
Natural Gas$500,000
Propane$100,000

Only businesses are eligible to apply. Eligible costs include site design, equipment installation, site preparation, utility connections, and station signage. Additional requirements apply. Grants will be awarded on a first-come, first-served basis. For more information, see the MEA’s CFIP Program website.

Electric Vehicle Supply Equipment (EVSE) Rebate Program

The Maryland Energy Administration (MEA) offers a rebate to individuals, businesses, or state or local government entities for the costs of acquiring and installing qualified EVSE. Between July 1, 2020, and June 30, 2021, the rebate may cover 40% of the costs of acquiring and installing qualified EVSE, or up to the following amounts:

Qualified EntityAmount per EVSE
Residential$700
Businesses, Nonprofits, Workplaces, Multi-Unit Dwellings, and State or Local Government Entities$4,000

Applicants must demonstrate compliance with state, local, and/or federal law that applies to the installation or operation of qualified EVSE. Other requirements may apply. MEA may award up to $1,800,000 total with commercial projects receiving up to 20% of total funds. Total funding for each fiscal year will not exceed $1,800,000. Rebates will be awarded on a first-come, first-served basis. For more information, see MEA's EVSE Rebate Program website.

(Reference Maryland Statutes, Business Regulation Code 10-101, and State Government Code 9-2009)

Plug-In Electric Vehicle (PEV) High Occupancy Vehicle (HOV) Lane Exemption

Permitted PEVs may operate in any Maryland HOV lanes regardless of the number of occupants. Qualified PEVs must have a maximum speed capability of at least 65 miles per hour. To operate in HOV lanes, PEV owners must obtain a permit from the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA). The cost of the permit may not exceed $20. Each year the MDOT MVA and the State Highway Administration must report PEV use in HOV lanes to the governor. This exemption expires September 30, 2022. For more information, see the HOV Permit Issuance for PEVs website.

(Reference Maryland Statutes, Transportation Code 25-108 and 21-314)

Zero Emission School Bus Grant Program and Study

The Maryland Department of the Environment (MDE) administers a Zero Emission School Bus Transition Grant Program to purchase zero emission school buses, install charging infrastructure, and transition to zero emission school bus fleets. Funding for this program is not currently available (verified April 2020). MDE and the Maryland Department of Transportation also provide technical assistance to county boards of education transitioning school buses to zero emission vehicles throughout the state.

(Reference Maryland Statutes, Environmental Code 2-1501 and 2-1503).

Idle Reduction Weight Exemption

Any motor vehicle equipped with a qualified auxiliary power unit (APU) or idle reduction technology may exceed the state gross, axle, tandem, or bridge weight limits by up to 550 pounds to account for the weight of the technology. The additional weight may not exceed the actual weight of the idle reduction unit. The vehicle operator must be able to provide written certification of the weight of the APU or idle reduction technology, and demonstrate that the technology is fully functional. (Reference Maryland Statutes, Transportation Code 24-109)

Electric Vehicle Emissions Inspection Exemption

Vehicles powered exclusively by electricity are exempt from state emissions inspections. For more information, see the Maryland Vehicle Emissions Inspection Program website. (Reference Maryland Statutes, Transportation Code 23-206 and 23-206.4)

Utility/Private Incentives

Electric Vehicle Supply Equipment (EVSE) Residential Rebate – Potomac Edison

Potomac Edison offers residential customers a $300 rebate for the purchase and installation of a qualified Level 2 EVSE through the EV Driven Program. For more information, including eligibility and qualifying EVSE, see the EV Driven website.

Electric Vehicle Supply Equipment (EVSE) Charging Rate Incentive – Potomac Edison

Potomac Edison offers residential customers the opportunity to earn 2 cents per kilowatt-hour when charging with eligible EVSE on weekends and from 11pm to 6am on weekdays through the EV Driven Off-Peak Rewards Program. For more information, see the EV Driven website.

Electric Vehicle Supply Equipment (EVSE) Multifamily Rebate – Potomac Edison

Potomac Edison offers multifamily property owners a rebate up to $5,000 for the purchase and installation of qualified Level 2 or direct current (DC) fast chargers on their property through the EV Driven Program. Only customers that purchase and install eligible EVSE after December 1, 2019, are eligible. For more information, including eligibility and qualifying EVSE, see the EV Driven website.

Plug-In Electric Vehicle (PEV) Charging Rates - BGE

Baltimore Gas and Electric Company (BGE) offers time-of-use (TOU) rate options to residential customers who purchase or lease a PEV. Residential customers with a qualified Level 2 PEV charger, capable of separately tracking PEV charging data, may apply for a TOU rate applicable only to PEV charger usage. Residential PEV drivers without a qualified Level 2 charger may enroll in a whole-house TOU rate, which applies to the energy used for the entire residence during a billing period. For more information, see the BGE EVsmart website.

Electric Vehicle Supply Equipment (EVSE) Rebate - BGE

Baltimore Gas and Electric (BGE) provides rebates to residential and multifamily customers toward the purchase of qualified Level 2 and direct current (DC) fast EVSE. BGE offers residential customers a $300 rebate for an eligible Level 2 EVSE. BGE offers customers that own or operate multifamily properties a rebate of 50% of the purchase and installation cost of an eligible Level 2 EVSE, up to $5,000 per port, and 50% of the purchase and installation cost of eligible DC fast EVSE, up to $15,000 per port. Multifamily rebate awards may not exceed $25,000 per site. Only chargers purchased and installed after July 1, 2019, are eligible. Additional terms and conditions apply. For more information, including how to apply, see the BGE EVsmart website.

Electric Vehicle Supply Equipment (EVSE) Rebate - Delmarva Power

Delmarva Power provides rebates to residential and multifamily customers toward the purchase of qualified Level 2 EVSE. Delmarva Power offers residential customers a $300 rebate for a Level 2 smart EVSE. Only EVSE purchased and installed after July 1, 2019, are eligible. Delmarva Power offers customers that own or operate multifamily properties a 50% discount on the purchase of eligible Level 2 smart EVSE and a rebate up to $7,500 for installation costs. Additional terms and conditions apply. For more information, including how to apply, see the Delmarva Power EVsmart website.

Plug-In Electric Vehicle (PEV) Charging Rate Incentive - Pepco

Pepco offers a time-of-use rate to all qualified residential customers in Maryland who own or lease a PEV. For more information, see Pepco's Plug-In Electric Vehicle Charging website.

Electric Vehicle Supply Equipment (EVSE) Rebate - Pepco

Pepco provides rebates to residential and multifamily customers toward the purchase of qualified Level 2 EVSE. Pepco offers residential customers a $300 rebate for a Level 2 smart EVSE. Only EVSE purchased and installed after July 1, 2019, are eligible. Pepco offers customers that own or operate multifamily properties a 50% discount on the purchase of eligible Level 2 smart EVSE and a rebate up to $7,500 for installation costs. Additional terms and conditions apply. For more information, including how to apply, see the Pepco EVsmart website.

Laws and Regulations

Electric Vehicle Supply Equipment (EVSE) Regulation Exemption

Owners and operators of EVSE are not subject to state regulation as electricity suppliers or public service companies. For the purpose of this regulation, owners and operators of EVSE are considered retail electric customers. (Reference Maryland Statutes, Public Utility Code 1-101(j))

Plug-In Electric Vehicle (PEV) Information Disclosure

The Maryland Motor Vehicle Administration may provide the address of a registered PEV owner and information about the vehicle to electric companies for their use. Electric companies may only use this information in planning for the electric power supply and may not use it for marketing or solicitation. (Reference Maryland Statutes, General Provisions 4-320)

Zero Emission Vehicle (ZEV) Infrastructure Promotion

The Maryland Zero Emission Electric Vehicle Infrastructure Council (ZEEVIC) promotes the use of promotes the use of ZEVs, including plug-in electric vehicles (PEVs) and fuel cell electric vehicles (FCEV), in the state. Specific responsibilities of ZEEVIC include the following:

  • Develop policies and an action plan to promote and facilitate the integration of ZEVs into the Maryland transportation network;
  • Assist in developing and coordinating statewide standards for streamlined permitting and installation of electric vehicle charging and hydrogen fueling equipment;
  • Develop recommendations for a statewide PEV charging and FCEV refueling infrastructure plan, including standard pricing information displays;
  • Increase and support consumer awareness and ownership of ZEVs through public outreach;
  • Recommend incentives to support private-sector investment in ZEVs;
  • Develop targeted policies to support fleet purchases of ZEVs;
  • Develop charging solutions for multiunit dwellings;
  • Encourage local and regional efforts to promote the use of ZEVs;
  • Develop model procurement practices for light-duty vehicles that include an evaluation of the vehicle lifecycle costs inclusive of estimated fuel cost over the anticipated life of the vehicle;
  • Recommend policies that support PEV charging and FCEV fueling from clean energy sources;
  • Establish performance measures for meeting ZEV related employment, infrastructure, and regulatory goals; and
  • Pursue other policies, goals, and objectives that promote the adoption of ZEVs.
The Maryland Department of Transportation must provide staff support to ZEEVIC with the assistance of the Maryland Energy Administration and the Maryland Public Service Commission. For more information, including interim reports, see the Maryland Zero Emission Electric Vehicle Infrastructure Council website. (Reference House Bill 232, 2020, and Maryland Statutes, Transportation Code 11-145.1)

Regional Transportation and Climate Initiative (TCI)

Connecticut, Delaware, District of Columbia (D.C.), Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Virginia signed a Declaration of Intent to create the TCI, a regional initiative to improve transportation, develop a clean energy economy, and reduce carbon emissions and air pollutants from the transportation sector. The signatory states and D.C. agree to explore and develop policies and programs that result in greater energy efficiency of regional transportation systems and reduce emissions. Additionally, states support the deployment of clean vehicles and fueling infrastructure, such as electric vehicle supply equipment, to maximize the economic opportunities and emissions reductions. For more information, see the TCI website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

By January 2021, the Task Force will develop a multi-state action plan to support electrification of medium- and heavy-duty vehicles. The Task Force will consider actions to accomplish the goals of the MOU, including limiting all new medium- and heavy-duty vehicles sales in the signatory states to ZEVs by 2050. The signatory states will also seek to accelerate the deployment of medium- and heavy-duty ZEVs to benefit disadvantaged communities and explore opportunities to coordinate and partner with key stakeholders.

For more information, see the Multi-State Medium- and Heavy-Duty Zero Emission Vehicle MOU.

Zero Emission Vehicle (ZEV) Deployment Support

Maryland joined California, Connecticut, Maine, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle supply equipment (EVSE) and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.

In June 2018, the Task Force published a new ZEV Action Plan for 2018-2021. Building on the 2014 Action Plan, the 2018 Action Plan makes recommendations for states and other key partners in five priority areas:

  • Raising consumer awareness and interest in electric vehicle technology;
  • Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
  • Continuing and improving access to consumer purchase and non-financial incentives;
  • Expanding public and private sector fleet adoption; and
  • Supporting dealership efforts to increase ZEV sales.

For more information, see the Multi-State ZEV Task Force website.

Alternative Fuel Use Requirement

At least 50% of state vehicles using petroleum diesel fuel must use a minimum blend of 5% biodiesel (B5) or other biofuel approved by the U.S. Environmental Protection Agency as a fuel or fuel additive. This requirement does not apply to any state vehicles for which the use of biodiesel or other biofuel will void the manufacturer's warranty for that vehicle. Biodiesel fuel is defined as a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that is designated B100 or a blend of biodiesel that meets the requirements of ASTM specification D6751. Additionally, bi-fuel and flexible fuel vehicles capable of operating on either alternative fuel or conventional fuel must use alternative fuel when it is available. (Reference Maryland Statutes, State Finance and Procurement Code 14-408, and Policies and Procedures for Vehicle Fleet Management)

Alternative Fuel Vehicle (AFV) Access to Tunnels

An AFV powered by propane or natural gas may only use the Baltimore Harbor Tunnel and the Fort McHenry Tunnel if the vehicle has a dedicated alternate fuel system installed by the manufacturer of the vehicle or a fuel system that has been properly converted to an alternate fuel system, conforms to applicable federal regulations and industry standards, has a fuel capacity that does not exceed 150 pounds, and displays all proper markings and symbols. (Reference Code of Maryland Regulations 11.07.01.03)

Idle Reduction Requirement

A motor vehicle engine may not operate for more than five consecutive minutes when the vehicle is not in motion, with the following exceptions: 1) when traffic conditions or mechanical difficulties do not allow the vehicle to operate; 2) when it is necessary to operate heating, cooling or auxiliary equipment installed on the vehicle; 3) to bring vehicle to manufacturer's recommended operating temperature; or 4) if idling is necessary to accomplish the intended use of the vehicle. (Reference Maryland Statutes, Transportation Code 22-402)

Zero Emission Vehicle (ZEV) Sales Requirements and Low Emission Vehicle (LEV) Standards

Maryland has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. The Maryland Department of Environment may adopt regulations to exempt certain vehicles from the program, including motor vehicles sold for registration outside of Maryland and motor vehicles that would be exempt from the LEV program established under California law. For more information, see the Maryland Clean Cars Program website. (Reference Maryland Statutes, Environment Code 2-1101 through 2-1106)

Aftermarket Alternative Fuel Vehicle (AFV) Conversion Requirements

Conventional original equipment manufacturer vehicles altered to operate on propane, natural gas, methane, ethanol, or electricity are classified as aftermarket AFV conversions. All vehicle conversions for vehicles certified only to California Air Resources Board (CARB) standards must meet current applicable CARB standards for aftermarket conversions. However, U.S. Environmental Protection Agency (EPA) certified conversion kits may be used on EPA 50-state certified vehicles and vehicles with dual-certification that are 14,000 pounds or less. (Reference Code of Maryland Regulations 26.11.34)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled electric vehicle that has a maximum speed capability of 20 miles per hour (mph) to 25 mph. A low-speed vehicle must be registered with the Maryland Motor Vehicle Administration and comply with federal safety standards contained in Title 49 of the Code of Federal Regulations, section 571.500. The State Highway Administration or any local authority may prohibit the use of low-speed vehicles on any controlled access highway in its jurisdiction. Low-speed vehicles are only permitted on highways with a speed limit of up to 30 mph, but may, except in certain situations, cross highways for which the maximum speed limit exceeds 45 mph if the intersection is controlled by a traffic light or a four-way stop sign. (Reference Maryland Statutes, Transportation Code 11-130.1, 21-313, 21-1125, and 22-101)

Limited Speed Vehicle Access to Roadways

A limited speed vehicle is defined as a vehicle that is capable of achieving a maximum speed of at least 25 miles per hour (mph) but no more than 55 mph. Limited speed vehicles may only operate on highways on which the maximum speed of the vehicle exceeds the posted speed limit by at least 5 mph. Limited speed vehicles may not be sold without the required limited speed emblems. Additionally, limited speed vehicle purchasers must be informed in writing, of the limitations of vehicle use on highways. (Reference Maryland Statutes, Transportation Code 15-313, 21-804, and 21-805.1)