Federal Laws and Incentives

Listed below are the summaries of all current Federal 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:

Incentives

Advanced Biofuel Feedstock Incentives

The Biomass Crop Assistance Program (BCAP; Section 9010) provides financial assistance to landowners and operators that establish, produce, and deliver biomass feedstock crops for advanced biofuel production facilities. Qualified feedstock producers are eligible for a reimbursement of 50% of the cost of establishing a biomass feedstock crop, as well as annual payments for up to five years for herbaceous feedstocks and up to 15 years for woody feedstocks. In addition, BCAP provides qualified biomass feedstock crop producers matching payments for the collection, harvest, storage, and transportation of their crops to advanced biofuel production facilities for up to two years. The matching payments are $1 for each $1 per dry ton paid by a qualified advanced biofuel production facility, up to $20 per dry ton. This program’s funding is subject to congressional appropriations.

For more information, see the Biomass Crop Assistance Program website. (Reference Public Law 113-79 and 7 U.S. Code 8111)

Advanced Technology Vehicle (ATV) and Alternative Fuel Infrastructure Manufacturing Incentives

The U.S. Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing Loan Program may offer direct loans to eligible manufacturers for up to 30% of the cost of re-equipping, expanding, or establishing manufacturing facilities in the United States used to produce qualified ATVs, ATV components, or alternative fuel infrastructure, including associated hardware and software. Qualified ATVs are light-, medium-, and heavy-duty ultra-efficient vehicles that meet specified federal emission standards and fuel economy requirements, and emit low or zero exhaust. Ultra-efficient vehicles are fully closed compartment vehicles, designed to carry at least two adult passengers, which achieve at least 75 miles per gallon while operating on gasoline or diesel fuel, as hybrid electric vehicles operating on gasoline or diesel fuel, or as fully electric vehicles. Qualified components must be designed for ATVs and installed for the purpose of meeting ATV performance requirements, as determined by DOE. For more information, see the DOE’s ATVs Manufacturing Loan Program website, the ATVs Manufacturing Loan Program fact sheet, and the final rule.

(Reference 42 U.S. Code 17013 and Public Law 117-169)

Alternative Fuel Vehicle (AFV) Research and Development Grants

The U.S. Department of Energy (DOE) provides grants of up to $200,000 for the research and development of commercial innovations related to electric vehicle (EV) charging infrastructure, EV batteries, and biodiesel, hydrogen and fuel cell vehicle technologies. Eligible applicants include domestic small businesses. Additional terms and conditions apply. For more information, see the DOE Small Business Innovation Research and Small Business Technology Transfer website.

(Reference Public Law 95-91 and 15 U.S. Code 638)

Biofuel Feedstock Research and Development Grants

The U.S. Department of Energy’s (DOE) Industrial Efficiency and Decarbonization Office (IEDO) provides funding for the research, development, and demonstration of technologies that decrease greenhouse gas emissions in emissions intensive industries, including projects that pursue advance process technologies for converting feedstocks to biofuels. Eligible applicants include universities, businesses, and nonprofit organizations. Additional terms and conditions apply. For more information, see the IEDO Energy and Emissions Intensive Industries website.

(Reference Public Law 116-260 and 42 U.S. Code 17113)

Biofuel Research and Development Grants

The U.S. Department of Energy (DOE) provides funding for research and development to convert algae into biofuels and sustainable aviation fuel through the Mixed Algae Conversion Research Opportunity (MACRO). Projects must demonstrate that generated biofuels at commercial scale have the potential of at least 50% greenhouse gas reductions compared to conventional fuels. Individual awards of up to $1.5 million with a cost share of at least 20% are available. Eligible applicants include state and local governments, tribal governments, universities, businesses, and nonprofit organizations. Additional terms and conditions apply. For more information, see the DOE MACRO website.

(Reference Public Law 109-58 and 42 U.S. Code 16231 and 16232)

Bus and Bus Facilities Grants

The U.S. Department of Transportation’s Federal Transit Administration (FTA) offers grants through the Buses and Bus Facilities Program to replace, rehabilitate, and purchase buses, vans, and related equipment, and to construct associated bus facilities, including low or zero emission vehicles or facilities. Additionally, funding may be requested for workforce development training or training at the National Transit Institute. Eligible applicants include state, local, and tribal governments that allocate funds to or operate fixed-route bus services, and eligible subrecipients include private nonprofit organizations engaged in public transportation. For more information, including funding availability and timelines, see the FTA Buses and Bus Facilities website.

(Reference 49 U.S. Code 5312 and 5339 and Public Law 117-58)

Carbon Reduction Program (CRP)

The U.S. Department of Transportation (DOT) established a carbon reduction formula program for states to reduce transportation emissions. Eligible state funding activities include truck stop electrification, diesel engine retrofits, vehicle-to-infrastructure communications equipment, public transportation, port electrification, and deployment of alternative fuel vehicles, including charging or fueling infrastructure and the purchase or lease of zero emission vehicles. At the request of a state, DOT must provide technical assistance in the development of the carbon reduction strategy. State carbon reduction strategies must be updated at least once every four years. State projects are treated as Federal-aid Highway Program projects. Additional funding eligibility and considerations will apply. For more information, see the DOT CRP.

(Reference Public Law 117-58 and 23 U.S. Code 175)

Charging and Fueling Infrastructure Grants

The U.S. Department of Transportation (DOT) Federal Highway Administration (FHWA) Charging and Fueling Infrastructure Discretionary Grant Program (CFI Program) offers funding to deploy publicly accessible electric vehicle charging and alternative fueling infrastructure in urban and rural communities and along Alternative Fuel Corridors (AFC). The CFI Program offers two types of funding opportunities: the Community Charging and Fueling Grants (Community Program) and the Alternative Fuel Corridor Grants (Corridor Program). Award amounts and cost share requirements may vary.

Infrastructure deployments funded by the Community Program must be located on public roads or publicly accessible locations, including public parking facilities, public buildings, public schools, or public parks. Low-income, underserved, rural, and high-density communities will be prioritized for Community Program funding. Corridor Program grants are available to infrastructure deployments along designated AFCs and for educational and community engagement activities. Eligible applicants include metropolitan planning organizations; U.S. territories; special purpose districts and public authorities; and state, local, and tribal governments.

For more information, including eligibility requirements and funding availability, see the DOT FHWA CFI Program website.

(Reference Public Law 117-58 and 23 U.S. Code 151)

Clean Fuel Production Credit

Beginning January 1, 2025, the Treasury Department will offer tax credits for the production and sale of low emission transportation fuels, including sustainable aviation fuel (SAF). The tax credit amount is $0.20 per gallon for non-aviation fuel and $0.35 per gallon for SAF. For facilities that satisfy the prevailing wage and apprenticeship requirements, the credit amount is $1.00 per gallon for non-aviation fuel and $1.75 per gallon for SAF. For any taxable year, the Clean Fuel Production Credit is equal to the applicable credit amount per gallon multiplied by the fuel’s carbon dioxide emissions factor. Emissions factors will be published annually by the Secretary of the Treasury. Beginning January 1, 2025, tax credits will be adjusted for inflation. The Internal Revenue Service (IRS) released guidance on registration requirements to claim the credit in May 2024. Further guidance is forthcoming. For more information, including guidance updates, see the IRS Credits and Deductions under the Inflation Reduction Act website.

(Reference Public Law 117-169 and 26 U.S. Code 45Z)

Clean Fuels and Products Demonstration Projects

The U.S. Department of Energy’s Energy Earthshots Initiative Clean Fuels & Products Shot aims to decarbonize the fuel and chemical industry through alternative sources of carbon to advance cost-effective technologies with the goal of reducing industry greenhouse gas emissions 85% by 2035. Clean Fuels & Products Shot focuses on various projects to mobilize biomass and waste feedstock, efficiently capture and convert carbon dioxide, develop carbon-efficient conversion processes, demonstrate integrated processes, and understand sustainability implications. For more information, visit the Clean Fuels & Products Shot website.

Clean Hydrogen Production Tax Credit

Producers of clean hydrogen are eligible for a tax credit of up to $3 per kilogram (kg) of clean hydrogen produced. Qualifying clean hydrogen may not produce more than 4 kg of carbon dioxide equivalent per kg of hydrogen. Eligible projects that meet prevailing wage and apprenticeship requirements are eligible to receive an increased tax credit. Additional terms and conditions apply. For more information and guidance, see the U.S. Internal Revenue Service Credits and Deductions Under the Inflation Reduction Act of 2022 website.

(Reference Public Law 117-169 and 25 U.S. Code 45V)

Commercial Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Beginning January 1, 2023, a tax credit is available to businesses and tax-exempt organizations for the purchase of new EVs and FCEVs. Vehicles with a gross vehicle weight rating (GVWR) below 14,000 pounds (lbs.) must have a battery capacity of at least seven kilowatt-hours (kWh) and vehicles with a GVWR above 14,000 lbs. must have a battery capacity of at least 15 kWh. The tax credit amount is equal to the lesser of the following amounts:

  • 15% of the vehicle purchase price for plug-in hybrid electric vehicles
  • 30% of the vehicle purchase price for EVs and FCEVs
  • The incremental cost of the vehicle compared to an equivalent internal combustion engine vehicle

Maximum tax credits may not exceed $7,500 for vehicles under 14,000 lbs. and $40,000 for vehicles above 14,000 lbs. Businesses may not combine this tax credit with the Clean Vehicle Tax Credit.

For more information, see the Internal Revenue Service (IRS) Commercial Clean Vehicle Credit website and the IRS Guidance on the Incremental Cost for the Commercial Clean Vehicle Credit.

(Reference Public Law 117-169 and 26 U.S. Code 45W)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Community Electric Vehicle Charging Grants

The U.S. Department of Transportation and the U.S. Department of Energy’s Joint Office of Energy and Transportation (Joint Office) offers grants of up to $4 million for projects that expand community e-mobility access and provide clean reliable energy. Topic areas include solving no-home charging, electrifying light- and medium-duty fleets, and developing managed charging programs. Grants are available for planning projects as well as demonstration and deployment projects, which have a minimum cost share requirement of 50%. Eligible applicants include universities; businesses; non-profit organizations; and state, local, and tribal governments. Terms and conditions may vary by topic area. For more information, see the Joint Office’s Communities Taking Charge website.

(Reference Public Law 11-58 and 23 U.S. Code 151)

Community Waste-to-Biofuel Development Grants

The U.S. Department of Energy (DOE) provides grants of up to $10 million for the development of strategies for communities to sustainably manage and recover clean energy sources from waste streams for transportation end-uses. Eligible projects include feasibility studies, design work, and experimental validation for renewable natural gas, hydrogen, or other waste-derived fuel. Applicants are encouraged to include currently available vehicles in their plans. Eligible prime applicants include non-profit organizations; transit authorities; and state, local, and tribal governments. For more information, see the DOE WASTE website.

(Reference Public Law 109-58 and 42 U.S. Codes 16231, 16232, 16191, 16061-16093)

Critical Mineral and Battery Component Requirement Guidance for the Clean Vehicle Credit

The Internal Revenue Service (IRS) updated the frequently asked questions Fact Sheet for Clean Vehicle Credits in December 2023. The new guidance is related to the critical mineral and battery component requirements of the New, Previously Owned, and Qualified Commercial Clean Vehicle Credits.

This action is the result of the Inflation Reduction Act of 2022 (Public Law 117-169), which amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit. For more information, see the IRS Clean Vehicle Tax Credits website.

Electric Vehicle (EV) Charging Reliability Grants

The U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA) EV Charger Reliability and Accessibility Accelerator offers funding for the repair and replacement of existing, non-operational publicly accessible Level 2 and direct current fast charging (DCFC) stations. Funding is available for up to 80% of eligible project costs. Eligible applicants include State departments of transportation and local governments. For more information, see the DOT FHWA EV Charger Reliability and Accessibility Accelerator website.

(Reference Public Law 117-58)

Electric Vehicle (EV) Charging and Clean Transportation Grants

The U.S. Department of Energy (DOE) provides grants for transportation decarbonization research projects. Priority will be given to projects that include:

  • Cost-effective deployment of EV charging for those without access to home charging;
  • Innovative solutions to improve mobility options for underserved communities;
  • Community engagement to accelerate clean transportation options in underserved communities;
  • Research and development to reduce EV battery size and cost, increase EV battery range, and decrease EV battery emissions;
  • Electrification of off-road and non-road vehicles, including agricultural, construction, rail, marine, and aviation;
  • Materials technologies to improve EV efficiency and affordability;
  • Use of the alternative fuels in commercial off-road vehicle technologies, including natural gas, hydrogen, and renewable propane;
  • Planning and development of medium- and heavy-duty EV charging and hydrogen fueling corridors and advanced engine and fuel technologies to improve fuel economy and reduce greenhouse gas emissions

Applicants must demonstrate how proposed projects will benefit underserved communities that lack access to clean transportation options.

(Reference Public Law 109-58 and 42 U.S. Code 16191)

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Manufacturing Tax Credit

Qualified advanced energy projects are eligible for a tax credit for project investments to reequip, expand, or establish certain manufacturing facilities. Eligible projects that meet prevailing wage and apprenticeship requirements may receive a 30% tax credit, and projects that do not meet prevailing wage and apprenticeship requirements may receive a 6% tax credit. Credits cannot be allocated to projects located in census tracts where projects have been previously allocated. Qualifying advanced energy project include, but are not limited to, projects that re-equip, expand, or establish a manufacturing or industrial facilities that produce or recycle light-, medium-, and heavy-duty EVs, FCEVs, EV charging stations, and hydrogen fueling stations. Additional terms apply. For more information, see the IRS Qualified Advanced Energy Project Credit website.

(Reference Public Law 117-169 and 26 U.S. Code 48C)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Electric Vehicle and Fuel Cell Electric Vehicle Manufacturing Grants

The U.S. Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains (MESC) provides grants of up to $500,000,000 for the domestic production of hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles and components through the Domestic Manufacturing Conversion Grants Program. A minimum 50% non-federal cost share is required. Funding will prioritize projects that address the conversion of manufacturing facilities that have recently ceased operation or will cease operation in the near future. For more information, see the MESC Domestic Manufacturing Conversion Grants website.

(Reference Public Law 117-169)

Environmental Justice Community Technical Assistance Program

The U.S. Department of Energy (DOE) Communities Local Energy Action Program (LEAP) Pilot facilitates sustained, community-wide economic and environmental benefits through DOE’s clean energy deployment work. This technical assistance opportunity is specifically open to low-income, energy-burdened communities that are also experiencing either direct environmental justice impacts, or direct economic impacts from a shift away from historical reliance on fossil fuels. DOE will provide technical assistance services to support up to 36 communities to develop their own community-driven clean energy transition approach. For more information, visit the DOE Communities LEAP website.

Federal Transportation Facility Improvement Program

The U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA) provides funding for the improvement of transportation facilities on or adjacent to Federal lands through the Federal Lands Access Program (FLAP). Eligible electric mobility projects include light-duty electric vehicle charging, public transportation charging, commercial charging infrastructure planning, workforce development, and vehicle acquisition. Eligible applicants include state departments of transportation, local governments, and tribal governments. Projects must meet the FHWA EV Charging Minimum Standards Rule. For more information, see the FHWA FLAP website, the FLAP fact sheet, and the DOT Federal Funding Programs website.

(Reference Public Law 112-141, Public Law 117-58, and 23 U.S. Code 204)

Freight Efficiency and Zero-Emission Vehicle Infrastructure Grants

The U.S. Department of Transportation (DOT) Infrastructure for Rebuilding America (INFRA) grant program provides federal financial assistance to eligible transportation infrastructure projects that address climate change and environmental justice impacts, among other key objectives. Eligible projects include, but are not limited to, supporting a modal shift in freight or passenger movement to reduce vehicle miles traveled, developing zero-emission vehicle infrastructure, using one or more demand management strategies to reduce congestion and greenhouse gas emissions, and supporting the installation of electric vehicle charging stations along the National Highways System. Eligible applicants for INFRA grants are states, metropolitan planning organizations that serve urbanized areas with a population of more than 200,000 individuals, local governments, political subdivisions, port authorities, and tribal governments. Additional terms and conditions apply. For more information, including funding application deadlines, see the DOT INFRA Grants website.

Hydrogen Demonstration Project Grants

The Hydrogen Shot was established within the U.S. Department of Energy’s Energy Earthshots Initiative with the goal to reduce the cost of clean hydrogen by 80% to $1 per kilogram in one decade. Hydrogen Shot funds hydrogen demonstration projects that can help lower the cost of hydrogen, reduce carbon emissions and local air pollution, create good-paying jobs, and provide benefits to disadvantaged communities. Hydrogen Shot focuses on various projects that bridge technical gaps in hydrogen production, storage, and distribution and utilization technologies, including fuel cells. For more information, visit the Hydrogen Shot website.

Hydrogen Fuel Cell Electric Vehicle and Equipment Infrastructure Research and Deployment Grants

The U.S. Department of Energy Hydrogen and Fuel Cell Technologies Office (HFTO) provides grants of up to $10,000,000 for the research, development, demonstration, and deployment of affordable clean-hydrogen technologies. Eligible project topics include, but are not limited to, components for medium- and heavy-duty hydrogen fueling stations, standardization of hydrogen fueling stations, and hydrogen port equipment. A cost share of 20% or 50% may be required for certain project topics. Projects must include a community benefits plan addressing project diversity equity, inclusion, and accessibility. Eligible applicants include higher education institutions, for-profit organizations, nonprofit organizations, and state, local, and tribal governments. Additional terms and conditions apply. For more information, see the HFTO website and the Funding Opportunity Announcement.

Idle Reduction Equipment Excise Tax Exemption

Qualified on-board idle reduction devices and advanced insulation are exempt from the federal excise tax imposed on the retail sale of heavy-duty highway trucks and trailers. The exemption also applies to the installation of qualified equipment on vehicles after the vehicles have been placed into service. For a list of eligible products and additional information about product exemption eligibility criteria, see the U.S. Environmental Protection Agency's (EPA) SmartWay Technology Program Federal Excise Tax Exemption website. The exemption applies to equipment that EPA, in consultation with the U.S. Department of Energy and the U.S. Department of Transportation, identified as reducing the idling of the tractor at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary. Only equipment sold on or after October 4, 2008, is eligible. For more information, see IRS Publication 510 and the instructions for IRS Form 720, which are available on the IRS Forms and Publications website. (Reference 26 U.S. Code 4053)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.gov/

Innovative Research and Development Competitive Prizes

The American-Made Challenges are a series of prize competitions, in partnership with the National Renewable Energy Laboratory, that are designed to incentivize the nation’s entrepreneurs to reenergize innovation, reassert American leadership in the energy marketplace, and connect entrepreneurs to the private sector and U.S. Department of Energy’s national laboratories. These challenges seek to lower the barriers U.S.-based innovators face by spurring manufacturing, developing innovative solutions and products, and creating new domestic jobs and opportunities through public-private partnerships. For more information, including current prize challenges, visit the American-Made Challenges website.

Integrated Biorefineries Grant

The Scale-Up+ Program provides grants for biorefinery development and feedstocks improvement projects that reduce the cost of biofuel production technologies and scale-up production systems. The Scale-Up+ Program will also fund projects that reduce carbon emissions in first generation corn ethanol production facilities. Eligible applicants include individuals, for-profit entities, educational institutions, nonprofits, and foreign entities. For more information, see the Funding Opportunity Announcement.

Large-Scale Electric Vehicle (EV) Charger Planning and Siting Grants

The U.S. Department of Energy (DOE) offers grants of up to $2 million for large-scale renewable energy planning and siting projects, including EV charging infrastructure, through the Renewable Energy Siting through Technical Engagement and Planning (R-STEP) Program. Eligible applicants include state-based collaboratives, which state energy offices and universities are encouraged to lead. For more information, see the DOE R-STEP website.

(Reference Public Law 103-337, Public Law 105-261, Public Law 111-84, and 15 U.S. Code 3715)

Low and Zero Emission Public Transportation Funding

The Department of Transportation’s Federal Transit Administration (FTA) offers grants through the Low or No Emission Grant (Low No) Program to local and state government entities for the purchase or lease of low or zero emission transit buses, in addition to the acquisition, construction, or lease of supporting facilities. Additionally, funding may be requested for workforce development training or training at the National Transit Institute. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle. Applicants with projects that include zero emission vehicles (ZEVs) are required to submit a ZEV fleet transition plan. The plan must include:

  • A long-term fleet management plan that includes a strategy for how Low No Program funds will be used for resources and acquisitions;
  • A discussion on the availability of current and future resources for ZEV transition and implementation;
  • An assessment of policy and legislation impacting relevant technologies;
  • An evaluation of existing and future facilities;
  • A description the applicant’s relationship with the utility or alternative fuel provider; and
  • An assessment on how ZEVs will impact the applicant’s workforce.

For more information, including details about the current round of funding, see the FTA Low No Program website.

(Reference 49 U.S. Code 5312 and 5339 and Public Law 117-58)

Low or Zero Emission Ferry Program

The U.S. Department of Transportation’s Federal Transit Administration (FTA) provides funding through the Electric or Low-Emitting Ferry Pilot Program for the purchase of electric or low-emitting ferries and the electrification of or other reduction of emissions from existing ferries. Low-emitting ferries must use an alternative fuel, such as methanol, natural gas, propane, hydrogen, and electricity. Awards must include a ferry service that serves the State with the largest number of Marine Highway System miles and a bi-state ferry service with an aging fleet. Funding is authorized through fiscal year 2026. For more information, see the FTA Electric or Low-Emitting Ferry Pilot Program website and fact sheet.

(Reference Public Law 117-58 and 23 U.S. Code 147)

National Alternative Fuels Corridors

The U.S. Department of Transportation Federal Highway Administration (FHWA) designates a national network of electric vehicle (EV) charging and hydrogen, propane, and natural gas fueling infrastructure along national highway system corridors. To designate these Alternative Fuel Corridors (AFC), FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders.

FHWA must establish an AFC grant program to award grants to eligible entities, by November 15, 2022. During the designation and redesignation process, in consultation with the U.S. Department of Energy, FHWA will issue a report identifying charging and fueling infrastructure, best practices and guidance for predictable infrastructure deployment, analyzing standardization needs for fuel providers and purchasers, and reestablishing the goal of achieving strategic deployment of fueling infrastructure in the designated corridors.

For the 2023 Request for Nominations (RFN), state and local officials must submit nominations to FHWA by June 21, 2023. State and local agencies may nominate additional corridors, extend currently designated corridors, nominate another fuel along an already designated corridor, and update the status of previously designated corridors.

The Round 7 RFN and AFC designation is tied to funding eligibility under the NEVI Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program. The FHWA encourages nominations that focus on EV charging infrastructure along Interstate corridors, but nominations may also be submitted elsewhere on the National Highway System. Corridor projects along Round 7 AFCs are not eligible for the 2023 Notice of Funding Opportunity for the Charging and Fueling Infrastructure Discretionary Grant Program, which closes June 13, 2023. When considering Round 7 nominations, FHWA strongly encourages segments of Interstates that do not currently have an EV designation, particularly longer Interstate segments that provide important through connectivity to adjoining States.

FHWA is also requesting input on proposed Freight EV Corridors designation, outlined in the Round 7 RFN.

FHWA must update and redesignate corridors periodically thereafter. For more information, including FHWA areas of interest for corridor designations and infrastructure development, see the FHWA AFC website.

National Electric Vehicle Infrastructure (NEVI) Formula Program

The U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA) NEVI Formula Program provides funding to states to strategically deploy electric vehicle (EV) charging stations and to establish an interconnected network to facilitate data collection, access, and reliability. Funding is available for up to 80% of eligible project costs, including:

  • The acquisition, installation, and network connection of EV charging stations to facilitate data collection, access, and reliability;
  • Proper operation and maintenance of EV charging stations; and,
  • Long-term EV charging station data sharing.

EV charging stations must be non-proprietary, allow for open-access payment methods, be publicly available or available to authorized commercial motor vehicle operators from more than one company, and be located along designated FHWA Alternative Fuel Corridors (AFCs). If a state and DOT determine that all AFCs in the state have been fully developed, then the state can propose alternative public locations and roads for EV charging station installation.

FHWA must distribute the NEVI Program Formula Program funds made available each fiscal year (FY) through FY 2026, so that each state receives an amount equal to the state FHWA funding formula determined by 23 U.S. Code 104. To receive funding, states must submit plans to the FHWA and the Joint Office of Energy and Transportation for review and public posting annually, describing how the state intends to distribute NEVI funds. The FHWA announced approval of all initial state plans on September 27, 2022, and FY2024 plans were approved in 2023.

Additionally, 10% of NEVI Formula funding is set aside each FY for DOT to fund grants for states and localities requiring additional assistance to strategically deploy EV charging stations under this Program. Additional funding eligibility and considerations will apply.

For additional information, see the FHWA NEVI website and the Joint Office website.

(Reference Public Law 117-58 and 23 U.S. Code 165)

National Multimodal Cooperative Freight Research Program

The U.S. Department of Transportation (DOT) established a national cooperative freight transportation research program (Program), administered in collaboration with the National Academy of Sciences (NAS). NAS established an advisory committee to recommend a national research agenda on improvements in the efficiency and resiliency of freight movement, including adapting to future trends such as zero emissions transportation. NAS may award research contracts or grants under the Program.

DOT shall and publish annual reports describing the ongoing research and findings. Funding will be made available each fiscal year until November 15, 2026, and will remain available until expended for this Program. For more information, see the NAS Program website.

(Reference Public Law 117-58 and 49 U.S. Code 70205)

Natural Gas Vehicle (NGV) and Electric Vehicle (EV) Weight Exemption

NGVs and EVs may exceed the federal maximum gross vehicle weight limit for comparable conventional fuel vehicles by up to 2,000 pounds (lbs.). The NGV or EV must not exceed a maximum gross vehicle weight of 82,000 lbs.

(Reference 23 U.S. Code 127(s) and Public Law 116-6)

Port Electrification Grants

The U.S. Environmental Protection Agency (EPA) offers funding for the purchase or installation of zero emission port equipment or technology through the Clean Ports Program. Eligible applicants must include port authorities, state governments, local governments, tribal governments, air pollution control agencies, and private entities that own, operate, or use port. Zero emission technology includes all-electric vehicles and fuel cell electric vehicles (FCEVs). Additional funding is available for projects located in nonattainment communities. For more information, see the EPA Ports Initiative website.

(Reference Public Law 117-169 and 42 U.S. Code 7433)

Port Infrastructure Development Grants

The U.S. Department of Transportation (DOT) Port Infrastructure Development Program (PIDP) offers grants for projects that improve port resiliency to address sea-level rise, flooding, extreme weather events, earthquakes, and tsunami inundation, as well as projects that reduce or eliminate port-related criteria pollutant or greenhouse gas emissions. Funded projects may include:

  • Port electrification or electrification master planning;
  • Development of port or terminal micro-grids;
  • Worker training to support electrification technology; and,
  • Electric vehicle charging or hydrogen fueling infrastructure.

Eligible applicants include state and local governments, tribal governments, public agencies, and special purpose districts with transportation functions. For more information, see the DOT PIDP website.

(Reference Public Law 117-58 and 46 U.S. Code 50302)

Pre-Owned Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Beginning January 1, 2023, the Clean Vehicle Credit (IRC 25E) provides a tax credit of up to $4,000 for the purchase of a pre-owned EV or FCEV. Eligible vehicles must be of a model year at least two years prior to the year of purchase and may not have a purchase price above $25,000. Individuals with a gross annual income below the following thresholds are eligible for the tax credit:

  • $150,000 for joint filers

  • $112,500 for head-of-household filers

  • $75,000 for single filers

Only one tax credit may be claimed per vehicle. Individuals may not claim more than one pre-owned vehicle tax credit in a three-year period. For more information about claiming the credit, see IRS Inflation Reduction Act of 2022 website and Form 8936, which is available on the IRS Forms and Publications website, and the final rule.

(Reference Public Law 117-169 and 26 U.S. Code 25E)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Public School Energy Program

The U.S. Department of Energy’s (DOE) Renew America’s Schools program provides funding for local educational agencies to complete energy improvements upgrades. Eligible activities include the installation of alternative fuel vehicle (AFV) fueling or charging infrastructure on school grounds and the purchase or lease of AFVs. Eligible AFVs include school buses and school fleet vehicles. Eligible project partners include governmental entities, for-profit entities, and non-governmental organizations. For more information, see the DOE Renew America’s Schools website.

(Reference Public Law 117-58 and 42 U.S. Code 18831)

Public Transportation Research, Demonstration, and Deployment Funding

The U.S. Department of Transportation’s Federal Transit Administration administers the Public Transportation Innovation Program. Financial assistance is available to local, state, and federal government entities; public transportation providers; private and non-profit organizations; and higher education institutions for research, demonstration, and deployment projects involving low or zero emission public transportation vehicles. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle.

For more information, see the Bipartisan Infrastructure Law Public Transportation Innovation fact sheet.

(Reference 49 U.S. Code 5312 and 5339, Public Law 114-94, Public Law 113-159, and Public Law 117-58)

Regional Clean Hydrogen Hubs

The U.S. Department of Energy (DOE) administers the Regional Clean Hydrogen Hubs (H2Hubs) program. H2Hubs is funding the development of seven regional networks of hydrogen producers, potential hydrogen consumers, and connective infrastructure located in close proximity. At least one H2Hub must demonstrate the end-use of hydrogen in the transportation sector. Clean hydrogen is defined as hydrogen produced with a carbon intensity equal to or less than 2 kilograms of carbon dioxide-equivalent produced at the site of production per kilogram of hydrogen produced. DOE will evaluate lifecycle emissions for each project application and give preference to applications that reduce greenhouse gas emissions across the full project lifecycle. For more information, see the Regional Clean Hydrogen Hubs website.

(Reference Public Law 117-58 and 42 U.S. Code 16161a)

Resilient Surface Transportation Grants

The U.S. Department of Transportation Federal Highway Administration (FHWA) established the Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation (PROTECT) Discretionary Grant Program to provide funding for projects that improve the resilience of the surface transportation system through support of planning activities, resilience improvements, community resilience and evacuation routes, and at-risk costal infrastructure. Eligible projects include those that demonstrate greenhouse gas reductions in the transportation sector through the transition to clean vehicles and fuels, including electrification.

For more information, including funding availability and timelines, see the FHWA PROTECT Program website.

(Reference Public Law 117-58 and 23 U.S. Code 176)

Rural Community Electric Vehicle (EV) Direct Loans and Grants

The U.S. Department of Agriculture (USDA) Community Facilities Direct Loan and Grant Program provides direct loans and grants to community-based nonprofit organizations to purchase, construct, or improve essential community facilities, purchase equipment, and pay related project expenses. Loans and grants may be used to purchase EVs for use by essential community services and EV charging stations for fleets, public parking locations, and community facilities. Interest rates for direct loans are determined by USDA Rural Development, and grants may cover up to 55% of project costs. Additional terms and conditions apply. For more information, see the USDA Community Facilities Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1989)

Rural Community Electric Vehicle (EV) Loan Guarantees

The U.S. Department of Agriculture (USDA) Community Facilities Guaranteed Loan Program provides loans to eligible lenders to develop renewable energy systems in rural areas, which include EVs for use by essential community services and EV charging stations for fleets, public parking locations, and community facilities. The maximum loan guarantee is $100 million. Entities eligible to receive loan guarantees include public entities, tribal governments, and non-profit organizations. Additional terms and conditions apply. For more information, see the USDA Community Facilities Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1989)

Rural Development Enterprise Electric Vehicle (EV) Charging Station Grants

The U.S. Department of Agriculture (USDA) Rural Business Development Grants Program provides enterprise grants for rural transportation improvement projects and the acquisition and development of buildings, equipment, access for streets and roads, and parking areas. Funding may be used to finance EV charging stations for retail and public use. Eligible applicants include state and local governments, tribal governments, and non-profit organizations primarily serving rural areas. Additional terms and conditions apply. For more information, see the USDA Rural Development Business Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1932)

Rural Electric Vehicle (EV) Charging Station Business Loan Guarantees

The U.S. Department of Agriculture (USDA) Business & Industry Guaranteed Loans Program provides loans guarantees for the purchase and development of land, buildings, and associated infrastructure for commercial or industrial use. Loans may be used to finance EV charging station equipment for retail and public use. Entities eligible to receive loan guarantees include individuals, commercial entities, non-profit organizations, state and local governments, and tribal governments. Additional terms and conditions apply. For more information, see the USDA Rural Development Business Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1932)

Rural Electric Vehicle (EV) Charging Station Business Loan Program

The U.S. Department of Agriculture (USDA) Intermediary Relending Program provides loans of up to $1 million to intermediaries that relend to businesses in rural communities. Loans may be used to finance EV charging stations. Entities eligible to receive loans include non-profit organizations, state and local governments, and tribal governments, and cooperatives. Additional terms and conditions apply. For more information, see the USDA Rural Development Business Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1932)

Rural Electric Vehicle (EV) Charging Station Economic Development Loans and Grants

The U.S. Department of Agriculture (USDA) Rural Economic Development Loans and Grants Program provides intermediary loans of up to $300,000 and grants of up to $2 million to rural utility organizations for projects that create and retain employment in rural areas. Funding may be used to finance EV charging stations for retail and public use. Additional terms and conditions apply. For more information, see the USDA Rural Development Business Programs website and EV Infrastructure fact sheet.

(Reference 7 U.S. Code 1932)

Rural Electric Vehicle (EV) Infrastructure Loans

The U.S. Department of Agriculture (USDA) Rural Energy Savings Program provides loans for cost-effective energy efficiency measures in rural areas. Loans may be used to finance consumer-owned EV chargers and the infrastructure necessary to supply EV chargers. Eligible borrowers include utilities; energy efficiency service providers; and state, local, and tribal governments. Additional terms and conditions apply. For more information, see the USDA Electric Programs website and EV Infrastructure fact sheet.

(Reference Public Law 113-79, Public Law 115-334, and 7 U.S. Code 8107a)

Sustainable Aviation Fuel (SAF) Grants

The U.S. Federal Aviation Administration (FAA) provides grants of up to $50,000,000 to support the development of SAF as part of the Fueling Aviation’s Sustainable Transition (FAST) program. The program is part of the SAF Grand Challenge, established under the Inflation Reduction Act of 2022. Eligible projects include SAF production, transportation, blending, and storage. Qualifying SAF must reduce greenhouse gas emissions by more than 50% and be derived from biomass, waste streams, renewable energy, or gaseous carbon oxides. A cost share of 25%, or 10% for small- or non-hub airports, is required. Eligible participants include state and local governments, air carriers, airport sponsors, institutions of higher education, research institutions, SAF or low-emission aviation technology developers, and nonprofit organizations. For more information, see the FAA FAST Grants website.

(Reference Public Law 117-169 and 49 USC 44504)

Sustainable Aviation Fuel (SAF) Tax Credit

Producers of SAF are eligible for a tax credit of $1.25 per gallon. Qualifying SAF must reduce greenhouse gas (GHG) emissions by 50%. SAF that decreases GHG emissions by more than 50% is eligible for an additional $0.01 per gallon for each percent the reduction exceeds 50%, up to $0.50 per gallon. To be eligible, SAF producers must be registered with the Internal Revenue Service (IRS). Additional terms and conditions apply.

For more information, see the IRS guidance for the SAF Tax Credit website and the Guidance on Sustainable Aviation Fuel Credit press release. The guidance provides additional safe harbors using the Environmental Protection Agency’s Renewable Fuel Standard program to calculate the lifecycle greenhouse gas emissions reduction percentage of SAF.

(Reference Public Law 117-169 and 26 U.S. Code 40B)

Transportation Electrification Technical Assistance and Funding

The National Renewable Energy Laboratory provides technical assistance and funding to increase energy resilience in coastal, remote, and island communities through the U.S. Department of Energy’s (DOE) Energy Transitions Initiative Partnership Project (ETIPP). Eligible uses include technical assistance to analyze the feasibility and impacts of transportation electrification. Eligible applicants include local governments, tribal governments, community-based organizations, special purpose districts, academic institutions, and utilities. Additional terms and conditions apply. For more information, see the DOE ETIPP website.

Transportation Energy Efficiency Grants

The U.S. Department of Energy (DOE) offers grants through the Energy Efficiency and Conservation Block Grant (EECBG) Program to reduce energy use and fossil fuel emissions, and to improve energy efficiency in transportation. Eligible projects include:

  • Transportation energy conservation programs;
  • Energy efficiency, renewable energy, and zero emission transportation and associated infrastructure financing programs; and
  • Rebate, grant, or other incentive programs that fund the purchase and installation of energy efficiency, renewable energy, and zero emission transportation and associated infrastructure.

Eligible applicants include U.S. territories, state, local, and tribal governments. For more information, see the DOE EECBG Program website.

(Reference Public Law 117-58 and 42 U.S. Code 17154)

Truck Emissions Reduction Study and Grant at Port Facilities

The U.S. Department of Transportation (DOT) Federal Highway Administration (FHWA) Truck Emissions at Port Facilities (RTEPF) Grant Program provides funding to test, evaluate, and deploy projects that reduce port-related emissions from idling trucks. Eligible projects include port electrification and efficiency improvements, focusing on heavy-duty commercial vehicles, and other related projects. Grant funding is available for up to 80% of eligible project cost. Awards will be treated as Federal-aid Highway Program projects. Additional funding eligibility and considerations apply.

Eligible applicants for RTEPF funds include entities that have authority over, operate, or utilize port facilities or intermodal port transfer facilities; have authority over areas within or adjacent to ports and intermodal port transfer facilities; or test or evaluate technologies that reduce truck emissions at port facilities or intermodal port transfer facilities.

For more information see the FHWA Reduction of Truck Emissions at Port Facilities website.

(Reference Public Law 117-58 and 23 U.S. Code 151)

Zero Emission Vehicle Infrastructure and Advanced Vehicle Grants

The U.S. Department of Transportation (DOT) Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program provides federal financial assistance to eligible surface transportation infrastructure projects. Eligible projects include, but are not limited to, supporting connected, electric, and automated vehicles, a modal shift in freight or passenger movement to reduce greenhouse gas emissions, and the installation of zero-emission vehicle infrastructure. Eligible applicants for RAISE grants are state, local, tribal, and U.S. territories’ governments, including transit agencies, port authorities, metropolitan planning organizations, and other political subdivisions of state or local governments. Additional terms and conditions apply. For more information, see the DOT RAISE Grants website.

Alternative Fuel Infrastructure Tax Credit

For alternative fuel vehicle (AFV) infrastructure placed in service prior to January 1, 2023, see the Pre-2023 Alternative Fuel Infrastructure Tax Credit entry.

Installations Beginning January 1, 2023

The Alternative Fuel Vehicle Refueling Property Credit is available for qualified AFV fueling property installed in qualified locations on or after January 1, 2023, and through December 31, 2032. Eligible property includes certain fueling equipment for natural gas, propane, hydrogen, electricity, E85, or biodiesel blends of at least 20% (B20+). Businesses are eligible for a tax credit of:

Tax exempt entities, including state and local governments, may be eligible to receive this credit in the same amount as businesses, via IRS elective pay provisions. For elective pay eligibility requirements, please see the IRS Elective Pay and Transferability website.

Consumers who purchase qualified alternative fueling equipment for installation at their principal residence in qualified locations on or after January 1, 2023, and through December 31, 2032, may receive a tax credit of up to 30% of the cost, up to $1,000.

To be eligible, all qualified fueling equipment also must be installed in a population census tract that is a low-income community or not an urban area. To help determine if an installation location is in a qualified census tract, see the IRS Guidance on the Qualified Alternative Fuel Vehicle Refueling Property Credit and Argonne National Laboratory’s 30C Tax Credit Eligibility Locator tool and list of frequently asked questions.

Additional requirements may apply. For further details, see the IRS Inflation Reduction Act of 2022 website and IRS Form 8911, which is available on the IRS Forms and Publications website. Additional location eligibility information is available in the IRS Guidance on Satisfying the Geographical Requirements of the Section 30C Alternative Fuel Vehicle Refueling Property Credit. For more information, including frequently asked questions and an eligibility locator map, see the Argonne National Laboratory Refueling Infrastructure Tax Credit website.

(Reference 26 U.S. Code 30C, 30D, 38, and 6417 and Public Law 117-169)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Pre-2023 Alternative Fuel Infrastructure Tax Credit

Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2022, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Permitting and inspection fees are not included in covered expenses. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years.

For more information about claiming the credit, see IRS Form 8911, which is available on the IRS Forms and Publications website.

For information on the Alternative Fuel Infrastructure Tax Credit for installations beginning January 1, 2023, see the Alternative Fuel Infrastructure Tax Credit.

Alternative Fuel Excise Tax Credit

NOTE: This incentive was originally set to expire on December 31, 2021, but has been extended through December 31, 2024, by Public Law 117-169.

A tax incentive is available for alternative fuel that is sold for use or used as a fuel to operate a motor vehicle. A tax credit in the amount of $0.50 per gallon is available for the following alternative fuels: natural gas, liquefied hydrogen, propane, P-Series fuel, liquid fuel derived from coal through the Fischer-Tropsch process, and compressed or liquefied gas derived from biomass. For propane and natural gas sold after December 31, 2015, the tax credit is based on the gasoline gallon equivalent (GGE) or diesel gallon equivalent (DGE). For taxation purposes, one GGE is equal to 5.75 pounds (lbs.) of propane and 5.66 lbs. of compressed natural gas. One DGE is equal to 6.06 lbs. of liquefied natural gas.

For an entity to be eligible to claim the credit they must be liable for reporting and paying the federal excise tax on the sale or use of the fuel in a motor vehicle. Tax exempt entities such as state and local governments that dispense qualified fuel from an on-site fueling station for use in vehicles qualify for the incentive. Eligible entities must be registered with the Internal Revenue Service (IRS). The incentive must first be taken as a credit against the entity’s alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS. The tax credit is not allowed if an incentive for the same alternative fuel is also determined under the rules for the ethanol or biodiesel tax credits.

For more information about claiming the credit, see IRS Form 4136, which is available on the IRS Forms and Publications website.

(Reference 26 U.S. Code 6426 and Public Law 117-169)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.gov/

Alternative Fuel Mixture Excise Tax Credit

NOTE: This incentive was originally set to expire on December 31, 2021, but has been extended through December 31, 2024, by Public Law 117-169.

An alternative fuel blender that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive on the sale or use of the alternative fuel blend (mixture) for use as a fuel in the blender’s trade or business. The credit is in the amount of $0.50 per gallon of alternative fuel used to produce a mixture containing at least 0.1% gasoline, diesel, or kerosene. Qualified alternative fuels are liquefied hydrogen, P-Series fuel, liquid fuel derived from coal through the Fischer-Tropsch process, and liquid fuel derived from biomass. The incentive must be taken as a credit against the blender’s alternative fuel tax liability. The tax credit is not allowed if an incentive for the same alternative fuel is also determined under the rules for the ethanol or biodiesel tax credits.

For more information about claiming the credit, see IRS Form 720, which is available on the IRS Forms and Publications website.

(Reference 26 U.S. Code 6426 and Public Law 117-169)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.gov/

Alternative Fuel Tax Exemption

Alternative fuels used in a manner that the Internal Revenue Service (IRS) deems as nontaxable are exempt from federal fuel taxes. Common nontaxable uses in a motor vehicle are: on a farm for farming purposes; in certain intercity and local buses; in a school bus; for exclusive use by a non-profit educational organization; and for exclusive use by a state, political subdivision of a state, or the District of Columbia. This exemption is not available to tax exempt entities that are not liable for excise taxes on transportation fuel. For more information, see IRS Publication 510. (Reference 26 U.S. Code 4041)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.gov/

Biodiesel Income Tax Credit

NOTE: This incentive was originally set to expire on December 31, 2022, but has been extended through December 31, 2024, by Public Law 117-169.

A taxpayer that delivers pure, unblended biodiesel (B100) into the tank of a vehicle or uses B100 as an on-road fuel in their trade or business may be eligible for an incentive in the amount of $1.00 per gallon of biodiesel, agri-biodiesel, or renewable diesel. If the biodiesel was sold at retail, only the person that sold the fuel and placed it into the tank of the vehicle is eligible for the tax credit. The incentive is allowed as a credit against the taxpayer’s income tax liability. Claims must include a copy of the certificate from the registered biodiesel producer or importer that: identifies the product; specifies the product’s biodiesel, agri-biodiesel, and/or renewable diesel content; confirms that the product is properly registered as a fuel with the U.S. Environmental Protection Agency (EPA); and confirms that the product meets the requirements of ASTM Standard D6751. Renewable diesel is defined as liquid fuel derived from biomass that meets EPA’s fuel registration requirements and ASTM Standards D975 or D396; the definition of renewable diesel does not include any fuel derived from co-processing biomass with a feedstock that is not biomass.

For more information about claiming the credit, see Internal Revenue Service (IRS) Forms 637 and 8864, which are available on the IRS Forms and Publications website. For information about registering with the EPA, see the EPA Fuels Registration, Reporting, and Compliance Help website.

(Reference 26 U.S. Code 40A and Public Law 117-169)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Biodiesel Mixture Excise Tax Credit

NOTE: This incentive was originally set to expire on December 31, 2022, but has been extended through December 31, 2024, by Public Law 117-169.

A biodiesel blender that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $1.00 per gallon of pure biodiesel, agri-biodiesel, or renewable diesel blended with petroleum diesel to produce a mixture containing at least 0.1% diesel fuel. Only blenders that have produced and sold or used the qualified biodiesel mixture as a fuel in their trade or business are eligible for the tax credit. The incentive must first be taken as a credit against the blender’s fuel tax liability; any excess over this tax liability may be claimed as a direct payment from the IRS. Claims must include a copy of the certificate from the registered biodiesel producer or importer that: identifies the product; specifies the product’s biodiesel, agri-biodiesel, and/or renewable diesel content; confirms that the product is properly registered as a fuel with the U.S. Environmental Protection Agency; and confirms that the product meets the requirements of ASTM Standard D6751. Renewable diesel is defined as liquid fuel derived from biomass that meets EPA’s fuel registration requirements and ASTM Standards D975 or D396; the definition of renewable diesel does not include any fuel derived from co-processing biomass with a feedstock that is not biomass.

For more information about claiming the credit, see IRS Form 4136, which is available on the IRS Forms and Publications website.

(Reference 26 U.S. Code 6426 and Public Law 117-169)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.gov/

Biodiesel and Ethanol Infrastructure Grants

Competitive cost-share grants are available through the U.S. Department of Agriculture’s Higher Blends Infrastructure Incentive Program (HBIIP) for the installation, retrofitting, or otherwise upgrading of fueling equipment and infrastructure required to dispense ethanol blends greater than 10% or biodiesel blends greater than 5%.

Eligible applicants for the ethanol fueling equipment and infrastructure are vehicle fueling facilities, including fueling stations, convenience stores, hypermarket fueling stations, fleet facilities, and similar entities with capital investments. Eligible applicants for biodiesel fueling equipment and infrastructure are fuel/biodiesel distribution facilities, including terminal operations, depots, midstream partners, and similarly equivalent operations. An applicant may request assistance for more than one location, with one applicant per company.

Approximately 40% of funds will be made available to retail owners with 10 or fewer locations for activities related to upgrading or installing equipment to make a transportation fueling facilities fully compatible to dispense or sell higher blends of ethanol and/or biodiesel.

Eligible new facilities may receive up to 50% of total eligible project costs, or $3 million, whichever is less. Existing fueling stations that require upgraded, retrofitted, or additional underground storage tanks may request assistance of up to 25% of total eligible project costs or up to $1,250,000, whichever is less.

Additional terms and conditions apply. For more information, including funding application deadlines, see the HBIIP website.

Point of Contact
Anthony Crooks
U.S. Department of Agriculture
Phone: (202) 205-9322
energyprograms@usda.gov

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

The Inflation Reduction Act of 2022 (Public Law 117-169) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022. Additional requirements apply for vehicles placed in service (delivered) on or after January 1, 2023, and the amount of the credit will depend on whether the vehicle meets new critical minerals and battery components requirements for vehicles placed in service after April 17, 2023. See the IRS Plug-In Electric Drive Vehicle Credit and final guidance for more information. Taxpayers who purchase an eligible vehicle may qualify for a tax credit of up to $7,500. Additional details are provided below based on when the vehicle is purchased or placed-in-service.

For up-to-date information on eligibility requirements for the Clean Vehicle Credit or for additional detail, see the information from the IRS. For a list of incentives by vehicle, see Federal Tax Credits on FuelEconomy.gov.

In accordance with proposed IRS regulations, beginning January 1, 2024, buyers can reduce the clean vehicle’s upfront purchase price by the amount of their Clean Vehicle Credit by choosing to transfer their credit to the dealer. Before 2024, eligible clean vehicle buyers could only receive the amount of their credit after filing their tax return. Starting January 1, 2024, dealers must submit information to the IRS through IRS Energy Credits Online to determine vehicle eligibility and amount of a Clean Vehicle Credit at the point of sale. Without this submission, buyers can’t claim a tax credit on their return nor can they transfer it to a dealer. A dealer must provide the buyer a copy of the IRS’s approval of the dealer’s submission. For up-to-date information for dealers and consumers on the transfer of tax credits at the point-of-sale, refer to information on the IRS Clean Vehicle Tax Credit.

Vehicles Placed in Service on or After April 18, 2023

For vehicles delivered on or after April 18, 2023, limitations apply that went into effect January 1, 2023, related to the vehicle’s manufacturer’s suggested retail price (MSRP), the buyer’s modified adjusted gross income, and the vehicle’s battery capacity. A North American final assembly requirement applies for vehicles purchased on or after August 17, 2022. Additional critical mineral and battery component requirements also apply as of April 18, 2023, which alter how the tax credit is calculated and may alter the amount of the tax credit available. These latter requirements came into effect upon the publication of the Treasury Department’s guidance document regarding the critical mineral and battery component requirements. Vehicles that meet the critical mineral requirements are eligible for a $3,750 tax credit, and vehicles that meet the battery component requirements are eligible for a $3,750 tax credit. Vehicles meeting both the critical mineral and the battery component requirements are eligible for a total tax credit of $7,500.

Vans, sport utility vehicles, and pickup trucks must not have an MSRP above $80,000, and all other vehicles may not have an MSRP above $55,000. The MSRP can be found on the vehicle’s window sticker, which is also known as the “Monroney label”; the MSRP for this purpose includes any trim, options, or accessories for the particular vehicle and excludes the destination fee and dealer-provided options and accessories.

Additionally, a taxpayer’s eligibility for the tax credit may be limited by thresholds for modified adjusted gross income (modified AGI); only individuals having a modified AGI below the following thresholds for the current tax year or the prior tax year are eligible for the tax credit:

  • $300,000 for joint filers
  • $225,000 for head-of-household filers
  • $150,000 for all other filers

To be eligible for the Clean Vehicle Credit, the battery powering the vehicle must have a capacity of at least seven kilowatt-hours (kWh). The amount of the credit depends on whether the vehicle meets certain critical minerals and battery component requirements.

Critical Minerals: To be eligible for the $3,750 critical minerals portion of the tax credit, the percentage of the value of the battery’s critical minerals that are extracted or processed in the United States or a U.S. free-trade agreement partner or recycled in North America, must meet or exceed the following thresholds:

Year Critical minerals minimum percent value requirement
2023 40%
2024 50%
2025 60%
2026 70%
2027 and later     80%

Battery Components: To be eligible for the $3,750 battery components portion of the tax credit, the percentage of the value of the battery’s components that are manufactured or assembled in North America must meet or exceed the following thresholds:

Year Battery components minimum percent value requirement
2023 50%
2024 and 2025     60%
2026 70%
2027 80%
2028 90%
2029 and later     100%

Further guidance on additional 30D requirements is forthcoming. For more information, including additional eligibility requirements, see the IRS Plug-In Electric Drive Vehicle Credit website.

Vehicles Sold on or After January 1 and Placed-in-Service Before April 18, 2023

Beginning January 1, 2023, the Clean Vehicle Credit (CVC) provisions removed the manufacturer sales caps for vehicles sold after January 1, 2023, expanded the scope of eligible vehicles to include both EVs and FCEVs, and required that the battery powering the vehicle has a capacity of at least seven kilowatt-hours (kWh). An available tax credit under the CVC may be limited by the vehicle’s manufacturer suggested retail price (MSRP) and the buyer’s modified adjusted gross income (as addressed above). The North American final assembly requirement continues to apply.

For vehicles placed in service before April 18, 2023, the available CVC tax credit is a base amount of $2,500 plus, for a vehicle that draws propulsion energy from a battery with at least 7 kWh of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kWh. The total tax credit available for a vehicle may not exceed $7,500.

Vehicles Purchased Between August 17 and December 31, 2022

Qualifying EVs purchased and delivered between August 17, 2022, and December 31, 2022, are eligible for the tax incentive as described below for vehicles purchased before August 17, 2022, but are limited to vehicles with final assembly in North America. Manufacturer sales caps on vehicles apply. Note that for some manufacturers, the assembly location may vary because some models are produced in multiple locations. The assembly location of a particular vehicle should be confirmed by referring to its Vehicle Identification Number (VIN) using the U.S. Department of Transportation’s VIN decoder or an information label affixed to the vehicle.

Vehicles Purchased Before August 17, 2022

Qualifying EVs purchased before August 17, 2022, are eligible for a tax credit that is available for the purchase of a new qualified EV that draws propulsion from a battery that has at least five kilowatt-hours (kWh) of capacity, uses an external source of energy to charge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500 based on each vehicle’s traction battery capacity. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified PEVs have been sold by that manufacturer for use in the United States. This tax credit is also available for future EV owners with a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022. For more information, including qualifying vehicles and sales by manufacturer, see the Internal Revenue Service (IRS) Qualified Plug-in Electric Drive Motor Vehicle Credit website.

(Reference Public Law 117-169 and 26 U.S. Code 30D)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Advanced Energy Research Project Grants

The Advanced Research Projects Agency - Energy (ARPA-E) was established within the U.S. Department of Energy with the mission to fund projects that will develop transformational technologies that reduce the nation's dependence on foreign energy imports; reduce U.S. energy related emissions, including greenhouse gases; improve energy efficiency across all sectors of the economy; and ensure that the United States maintains its leadership in developing and deploying advanced energy technologies. The ARPA-E focuses on various concepts in multiple program areas including, but not limited to, vehicle technologies, biomass energy, and energy storage. For more information, visit the ARPA-E website.

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov

Heavy-Duty Zero Emission Vehicle (ZEV) and Infrastructure Grants

The U.S. Environmental Protection Agency (EPA) offers grants for heavy-duty ZEVs and associated infrastructure. Grant award amounts vary and may cover up to 100% of total project costs. Eligible project costs include:

  • The incremental cost of a Class 6 or 7 electric vehicle;
  • Capital, installation, operation, and maintenance costs of ZEV charging or refueling infrastructure;
  • Workforce development and training programs to support the maintenance, charging, fueling, and operation of ZEVs; and,
  • Planning and technical activities that support the adoption and deployment of ZEVs.

Eligible applicants include state governments, municipalities, tribal governments, and non-profit school transportation associations. Additional funding is available for projects located in nonattainment communities. For more information, see the EPA Clean Heavy-Duty Vehicle Program website.

(Reference Public Law 117-169 and 42 U.S. Code 7432)

State Energy Program (SEP) Funding

The SEP provides grants to states to assist in designing, developing, and implementing renewable energy and energy efficiency programs, including programs to help reduce carbon emissions in the transportation sector by 2050 and accelerate the use of alternative transportation fuels for, and the electrification of, state government vehicles, fleet vehicles, taxis and ridesharing services, mass transit, school buses, ferries, and privately owned passenger and medium- and heavy-duty vehicles. Each state’s energy office receives SEP funding and manages all SEP-funded projects. States may also receive project funding from technology programs in the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) for SEP Special Projects. EERE distributes the funding through an annual competitive solicitation to state energy offices. SEP is authorized through fiscal year 2026.

For more information, see the SEP website.

(Reference Public Law 117-58 and 42 U.S. Code 6322 through 6325)

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Manufacturing Loans

The U.S. Department of Energy (DOE) provides grants or loan guarantees through the Loan Guarantee Program for the domestic production of efficient hybrid vehicles, plug-in hybrid electric vehicles, all-electric vehicles, and hydrogen fuel cell electric vehicles. The program is not intended for research and development projects. DOE may issue loan guarantees for at least 50% of the amount of the loan for an eligible project. Eligible projects may include the deployment of fueling infrastructure, including associated hardware and software, for alternative fuels. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Department’s Federal Financing Bank. For more information, see the DOE Loan Guarantee Program website and the Alternative Fuel Infrastructure fact sheet.

Point of Contact
Loan Guarantee Program
U.S. Department of Energy
Phone: (202) 586-8336
lgprogram@hq.doe.gov
http://www.energy.gov/lpo/loan-programs-office

Clean School Bus

The U.S. Environmental Protection Agency’s (EPA) Clean School Bus program provides funding to eligible applicants for the replacement of existing school buses with clean, alternative fuel school buses or zero emission school buses. EPA may award up to 100% of the cost of the replacement bus, charging equipment, or fueling infrastructure. Alternative fuels include electricity, natural gas, hydrogen, or propane. Eligible applicants are school districts, state and local government programs, federally recognized Indian tribes, non-profit organizations, and eligible contractors. EPA will prioritize funding for high-need local education agencies; low income, rural and tribal schools; and, applications that cost share through public-private partnerships, grants from other entities, or school bonds. For more information, including funding availability, timeline, and application materials, see the EPA Clean School Bus website.

(Reference Public Law 117-58 and 42 U.S. Code 16091)

Airport Zero Emission Vehicle (ZEV) and Infrastructure Incentives

The Zero Emissions Airport Vehicle and Infrastructure Pilot Program provides funding to airports for up to 50% of the cost to acquire ZEVs and install or modify supporting infrastructure for acquired vehicles. Grant funding must be used for airport-owned, on-road vehicles used exclusively for airport purposes. Vehicles and infrastructure must meet the Federal Aviation Administration’s Airport Improvement Program requirements, including Buy American requirements. To be eligible, an airport must be for public use. The program will give priority to applicants located in nonattainment areas, as defined by the Clean Air Act, and projects that achieve the greatest air quality benefits, as measured by the amount of emissions reduced per dollar of funds spent under the program. For more information, see the Zero Emissions Airport Vehicle and Infrastructure Pilot Program website.

(Reference Public Law 112-95 and 49 U.S. Code 47136a)

Advanced Biofuel Production Grants and Loan Guarantees

The Biorefinery Assistance Program (Section 9003) provides loan guarantees for the development, construction, and retrofitting of commercial-scale biorefineries that produce advanced biofuels. Grants for demonstration scale biorefineries are also available. Advanced biofuel is defined as fuel derived from renewable biomass other than corn kernel starch. Eligible applicants include, but are not limited to, individuals, state or local governments, farm cooperatives, national laboratories, institutions of higher education, and rural electric cooperatives. The maximum loan guarantee is $250 million and the maximum grant funding is 50% of project costs. For more information, including current funding application deadlines, see the Biorefinery Assistance Program website. (Reference Public Law 112-240 and 7 U.S. Code 8103)

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/

Advanced Biofuel Production Payments

Through the Bioenergy Program for Advanced Biofuels (Section 9005), eligible producers of advanced biofuels, or fuels derived from renewable biomass other than corn kernel starch, may receive payments to support expanded production of advanced biofuels. Payment amounts will depend on the quantity and duration of production by the eligible producer; the net nonrenewable energy content of the advanced biofuel, if sufficient data is available; the number of producers participating in the program; and the amount of funds available. No more than 5% of the funds will be made available to eligible producers with an annual refining capacity of more than 150 million gallons of advanced biofuel. This program is funded through fiscal year 2018 (verified December 2017), but is subject to congressional appropriations thereafter. For more information, see the Advanced Biofuel Payment Program and contact the appropriate State Rural Development Office. (Reference Public Laws 118-22, 113-79, and 112-240, and 7 U.S. Code 8105)

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/

Biodiesel Education Grants

Competitive grants are available through the Biodiesel Fuel Education Program (Section 9006) to educate governmental and private entities that operate vehicle fleets, the public, and other interested entities about the benefits of biodiesel use. Eligible applicants are non-profit organizations or institutes of higher education that have demonstrated knowledge of biodiesel fuel production, use, or distribution; and have demonstrated the ability to conduct educational and technical support programs. This program's funding is subject to congressional appropriations. (Reference Public Laws 113-79 and 112-240, and 7 U.S. Code 8106)

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/

Electric Vehicle (EV) Infrastructure Grants and Loan Guarantees

The U.S. Department of Agriculture (USDA) Rural Energy for America Program (REAP) provides loan guarantees and grants to agricultural producers and rural small businesses to purchase renewable energy systems or make energy efficiency improvements, including EV charging stations. Eligible EV charging stations may only be used for private fleet purposes and may not dispense electricity for retail use. The maximum grant award is 25% of project costs. REAP funding availability is subject to congressional appropriations. Additional terms and conditions apply. For more information, see the USDA Energy Programs website, REAP website, and EV Infrastructure fact sheet.

(Reference Public Law 113-79, 7 U.S. Code 8107, and Public Law 112-240)

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/

Value-Added Producer Grants (VAPG)

Value-Added Producer Grants (VAPG) are available to help independent agricultural producers enter into or expand value-added activities, including innovative uses of agricultural projects, such as biofuels production. Eligible applicants include independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures. Participants may apply for either a planning grant or a working capital grant, but not both. In addition, no more than 10% of program funds may be awarded to majority-controlled producer-based business ventures. Grants are awarded to projects determined to be economically viable and sustainable. For more information about grant eligibility, see the VAPG website and contact the appropriate State Rural Development Office. This program’s funding is subject to congressional appropriations. (Reference Public Law 113-79, Section 6203; and 7 U.S. Code 1632a)

Congestion Mitigation and Air Quality (CMAQ) Improvement Program

The CMAQ Program provides funding to state departments of transportation (DOTs), local governments, and transit agencies for projects and programs that help meet the requirements of the Clean Air Act by reducing mobile source emissions and regional congestion on transportation networks. Eligible activities include transit improvements, travel demand management strategies, congestion relief efforts (such as high occupancy vehicle lanes), diesel retrofit projects, alternative fuel vehicles and infrastructure, and medium- or heavy-duty zero emission vehicles and related charging equipment. Projects supported with CMAQ funds must demonstrate emissions reductions, be located in or benefit a U.S. Environmental Protection Agency-designated nonattainment or maintenance area, and be a transportation project. For more information, see the Bipartisan Infrastructure Law CMAQ fact sheet and CMAQ Improvement Program website.

(Reference Public Law 117-58, Public Law 112-141, and 23 U.S. Code 149 and 151)

Biomass Research and Development Initiative

The U.S. Department of Agriculture’s National Institute of Food and Agriculture, in conjunction with U.S. Department of Energy’s Office of Biomass Programs, provides grant funding for projects addressing research, development, and demonstration of biofuels and bio-based products and the methods, practices, and technologies for their production, under the Biomass Research and Development Initiative (Section 9008). The competitive award process focuses on three main technical areas: feedstock development; biofuels and bio-based products development; and biofuels development analysis. Eligible applicants are institutions of higher learning, national laboratories, federal research agencies, private sector entities, and non-profit organizations. The non-federal share of the total project cost must be at least 20% for research and development projects and 50% for demonstration projects. Renewable biomass is defined as materials, pre-commercial thinnings, or invasive species on National Forest System land that qualify as by-products of preventative treatments, are harvested in accordance with applicable laws, and would not otherwise be used for higher-value products, as well as naturally reoccurring organic matter on non-federal or non-tribal lands, including renewable plant material, feed grains, other plants and trees, algae, and vegetable and animal waste material and by-products. This program’s funding is subject to congressional appropriations. For more information, see the Biomass Research & Development website. (Reference Public Law 113-79 and 7 U.S. Code 8108)

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/

Laws and Regulations

Alternative Fuel Excise Tax

Propane and compressed natural gas (CNG) are subject to a federal excise tax of $0.183 per gasoline gallon equivalent (GGE). The liquefied natural gas (LNG) tax rate is $0.243 per diesel gallon equivalent (DGE). For taxation purposes, one GGE is equal to 5.75 pounds (lbs.) of propane and 5.66 lbs. of CNG. One DGE is equal to 6.06 lbs. of LNG. (Reference Public Law 114-41 and 26 U.S. Code 4041 and 4081)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.gov/

Electric Vehicle (EV) Battery Safety Research and Support

The National Highway Traffic Safety Administration (NHTSA) established the Battery Safety Initiative for Electric Vehicles (Initiative) to coordinate research and other activities relating to electric vehicle (EV) battery safety. The Initiative is responsible for:

  • Collecting and analyzing data related to EV batteries;
  • Examining field incidents and conducting battery safety investigations from EV crash and non-crash events;
  • Researching and evaluating EV battery health, battery management systems and cybersecurity, and high-voltage battery charging failures and effects; and,
  • Investigating safety-related battery defects.

The NHTSA Initiative also participates in the development of Global Technical Regulation (GTR) No. 20 for EV Safety which includes battery fire safety. For more information, see the NHTSA’s Initiative website.

Electric Vehicle (EV) Charger Standards

EV chargers funded under provisions outlined in 23 U.S. Code will be treated as Federal-aid Highway Program projects. EV chargers installed using these funds are restricted to those that implement non-proprietary charging connectors that meet applicable industry standards and allow for open access payment methods that are available to all members of the public to ensure secure, convenient, and equal access to the EV chargers.

(Reference Public Law 117-58 and 23 U.S. Code 109)

Electric Vehicle (EV) Studies

The U.S. Department of Energy (DOE) must conduct a study on the cradle-to-grave environmental impact of EVs. DOE, in coordination with the U.S. State Department and the U.S. Department of Commerce, must also study the impact of forced labor in China on the EV supply chain. Both studies must submit reports to Congress by March 15, 2022.

(Reference Public Law 117-58)

Electric Vehicle Charging on Federal Property

The U.S. General Services Administration (GSA) or any federal agency may install electric vehicle supply equipment (EVSE) for federal employees and others authorized to park at federal facilities to charge their privately owned vehicles. Employees and other users must pay to reimburse federal agencies for the EVSE procurement, installation, and use. Federal agencies may provide EVSE through a contract with a vendor. GSA must submit a report to Congress by December 2018, and annually thereafter for 10 years, on the number of EVSE installed by GSA, the number of EVSE installation requests from other federal agencies, and the status of requests for EVSE from other federal agencies.

(Reference Public Law 114-94)

Electric Vehicle Working Group (EVWG)

The Secretaries of Transportation and Energy jointly established an EVWG to make recommendations regarding the development, adoption, and integration of light-, medium-, and heavy-duty electric vehicles (EVs) into the transportation and energy system of the United States. The EVWG is comprised of 25 members from federal agencies, the automotive industry, the energy industry, state and local governments, labor organizations, and the property development industry. The EVWG will produce three reports describing the status of EV adoption, including barriers and opportunities to scale up EV adoption, and recommendations for EV issues including EV charging station needs, manufacturing and battery costs, EV adoption for low- and moderate-income individuals and underserved communities, and EV charging station permitting and regulatory issues. The first report must be submitted within 18 months of the EVWG establishment, and the second and third reports each two years thereafter. Based on the EVWG reports, the Secretaries of Transportation and Energy must jointly develop, maintain, and update an EV strategy that includes how the federal, state, and local governments, and industry can establish quantitative transportation electrification targets, overcome barriers, provide public EV education and awareness, identify areas of opportunity in research and development to lower EV cost and increase performance, and expand EV charging station deployment. The Secretaries and the Working Group will use existing federal resources such as the Alternative Fuels Data Center, the Energy Efficient Mobility Systems program, and the Clean Cities and Communities Coalition Network. The EVWG was established on June 8, 2022, and will terminate upon the submission of the third and final report. For more information, see the EVWG website.

(Reference Public Law 117-58 and 23 U.S. Code 151)

Emerging Alternative Fuel Vehicle (AFV) Study

The U.S. Department of Transportation must conduct an AFV study, focusing specifically on hydrogen, natural gas, or propane, that identifies:

  • Five-year AFV ownership forecasts;
  • AFV infrastructure siting locations, including a map, to support the forecasts;
  • Includes an evaluation and map that identifies concentrations of emerging AFVs to meet fueling infrastructure needs;
  • Barriers to deploying AFV infrastructure at the identified locations; and,
  • Additional maps and tools to allow states to compare and evaluate different AFV adoption and use scenarios.

The report must be made publicly available and submitted to Congress by November 15, 2022.

(Reference Public Law 117-58)

Federal System Alternative Funding Pilot

The U.S. Department of Transportation (DOT) will establish a Federal System Funding Alternative Advisory Board (Board) to establish a pilot program to demonstrate a national motor vehicle per-mile user fee (Fee). The pilot program will test the design, acceptance, implementation, and financial sustainability of a Fee; address the need for additional revenue for surface transportation infrastructure and a Fee; and provide recommendations relating to the adoption and implementation of a Fee.

In carrying out the pilot program, DOT shall provide different methods that volunteer participants can choose from to track motor vehicle miles traveled and solicit volunteer participants from all 50 states, the District of Columbia, and the Commonwealth of Puerto Rico. DOT shall test vehicle-miles-traveled collection tools, revenue collection methodologies, and public-awareness campaigns regarding the pilot program. DOT shall establish Fees for passenger motor vehicles, light trucks, and medium- and heavy-duty trucks. Amounts may vary between vehicle types and weight classes to reflect estimated impacts on infrastructure, safety, congestion, the environment, or other related social impacts.

DOT must report findings to Congress annually upon program commencement, with funding authorized through fiscal year 2026. For more information, see the Board Charter.

(Reference Public Law 117-58 and 23 U.S. Code 503)

Joint Office of Energy and Transportation

The U.S. Department of Transportation (DOT) and the U.S. Department of Energy (DOE) established a Joint Office of Energy and Transportation (Joint Office) to study, plan, coordinate, and implement joint issues, including:

  • Technical assistance related to the deployment, operation, and maintenance of electric vehicle (EV) chargers and hydrogen fueling infrastructure, vehicle-to-grid integration, and related programs and policies;
  • Data sharing of installation, maintenance, and utilization to continue to inform the network build out of EV chargers and hydrogen fueling infrastructure;
  • Performance of a national and regionalized study of EV chargers and hydrogen fueling infrastructure needs and deployment factors, to support grants for community resilience and EV integration;
  • Development and deployment of training and certification programs;
  • Electric infrastructure and utility accommodation planning in transportation rights-of-ways; and,
  • Research, strategies, and actions to reduce transportation-related emissions and mitigate the effects of climate change.

The Joint Office created a public database that includes EV charger data maintained on the DOE Alternative Fuels Data Center’s Alternative Fueling Station Locator and potential EV charger locations identified by eligible entities. For more information, see the Joint Office website.

(Reference Public Law 117-58 and 23 U.S. Code 151)

National Zero-Emission Freight Corridor Strategy

The U.S. Department of Transportation (DOT) and the U.S. Department of Energy’s (DOE) Joint Office of Energy and Transportation (Joint Office) published the National Zero-Emission Freight Corridor Strategy to guide the deployment of commercial zero-emission medium- and heavy-duty vehicles (ZE-MHDVs) and associated infrastructure from 2024 to 2040. The National Zero-Emission Freight Corridor Strategy prioritizes infrastructure along the National Highway Freight Network (NHFN) to be implemented through the following four-phases:

  • Establishing priority hubs based on freight volume (2024-2027);
  • Connecting hubs along freight corridors (2027-2030);
  • Expanding corridor connections and initiating network development (2030-2035); and
  • Achieving a national network by linking regional corridors (2035-2040).

The strategy is to serve as a guide for public and private deployment of ZE-MHDV infrastructure along the NHFN and connecting corridors. For more information, see the Federal Highway Administration press release and Freight Electric Vehicle (EV) Corridors website.

(Reference Public Law 112-141, Public Law 114-94, Public Law 117-58, and 23 U.S. Code 167)

Procurement Preference for Electric and Hybrid Electric Vehicles

The U.S. Department of Defense (DOD) must exhibit a preference for the lease or procurement of motor vehicles with electric or hybrid electric propulsion systems, including plug-in hybrid systems, if the vehicles are commercially available at a cost reasonably comparable to motor vehicles with internal combustion engines. Tactical vehicles designed for use in combat are excluded from the requirement. (Reference 10 U.S. Code 2922g)

Point of Contact
U.S. Department of Defense
Phone: (703) 571-3343
http://www.defense.gov/

Transportation Decarbonization Support

The U.S. Department of Energy, Transportation, U.S. Department of Housing and Urban Development, and the U.S. Environmental Protection Agency (Signatory Agencies) joined in signing a memorandum of understanding (MOU) to accelerate the development and adoption of affordable and equitable clean transportation. The Signatory Agencies must work to reduce greenhouse gas emission in the transportation sector and ensure resilient and accessible mobility options for all Americans. By December 15, 2022, the Signatory Agencies must publish a draft decarbonization strategy for the transportation sector to guide future policy, research, development, demonstration, and deployment in the public and private sectors.

Truck Leasing Task Force

The U.S. Department of Transportation Federal Motor Carrier Safety Administration (FMCSA) Truck Leasing Task Force (TLTF) examines the terms, conditions, and equitability of common truck leasing arrangements, particularly as they impact owner-operators and trucking businesses. TLTF provides written consensus concerning several aspects of truck leasing agreements, including specific agreements available to drayage drivers at ports relating to the Clean Truck Program or similar programs that aim to decrease emissions from port operations. TLTF will terminate 30 days after submitting findings and recommendations to Congress. For more information, see the FMCSA TLTF website.

(Reference Public Law 117-58)

Utility Electric Vehicle (EV) Promotion Measures

The Federal Energy Regulatory Commission requires each state to consider measures to promote greater transportation electrification, by amending rates to:

  • Promote affordable and equitable EV charging;
  • Improve customer experience with EV charging;
  • Accelerate third party investment in EV chargers; and,
  • Recover marginal costs of electricity delivery to EV chargers.

Each state regulatory authority and each nonregulated utility must commence consideration or set a hearing date for consideration no later than November 15, 2022, and must complete consideration and make a determination no later than November 15, 2024. States with existing EV rate standards are exempt.

(Reference Public Law 117-58)

Alternative Fuel Definition – Internal Revenue Code

The Internal Revenue Service (IRS) defines alternative fuels as propane, natural gas, liquefied hydrogen, liquid fuel derived from coal through the Fischer-Tropsch process, liquid hydrocarbons derived from biomass, and P-Series fuels. Biodiesel, ethanol, and renewable diesel are not considered alternative fuels by the IRS. While the term “hydrocarbons” includes liquids that contain oxygen, hydrogen, and carbon and as such “liquid hydrocarbons derived from biomass” includes ethanol, biodiesel, and renewable diesel, the IRS specifically excluded these fuels from the definition.

(Reference 26 U.S. Code 6426)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Vehicle Acquisition and Fuel Use Requirements for Federal Fleets

Under the Energy Policy Act (EPAct) of 1992, 75% of new light-duty vehicles acquired by covered federal fleets must be alternative fuel vehicles (AFVs). As amended in January 2008, Section 301 of EPAct 1992 expands the definition of AFVs to include hybrid electric vehicles, fuel cell vehicles, and advanced lean burn vehicles. Fleets that use fuel blends containing at least 20% biodiesel (B20) may earn credits toward their annual requirements. Federal fleets are also required to use alternative fuels in dual-fuel vehicles unless the U.S. Department of Energy (DOE) approves waivers for agency vehicles; grounds for a waiver include lack of alternative fuel availability and unreasonable cost (per EPAct 2005, section 701).

Additional requirements for federal fleets were included in the Energy Independence and Security Act of 2007, such as fleet management plans and petroleum reduction from 2005 levels (Section 142), low greenhouse gas (GHG) emitting vehicle acquisition requirements (Section 141), and renewable fuel infrastructure installation requirements (Section 246). For more information, see the Federal Fleet Management website.

To track progress toward meeting AFV acquisition and fuel use requirements, federal fleets must report on their percent alternative fuel increase compared to the fiscal year 2005 baseline, alternative fuel use as a percentage of total fuel consumption, AFV acquisitions as a percentage of vehicle acquisitions, and fleet-wide miles per gasoline gallon equivalent of petroleum fuels.

Executive Order 13834, issued in May 2018, requires the Secretary of Energy (Secretary), in coordination with the Secretary of Defense, the Administrator of General Services, and the heads of other agencies as appropriate, to review the existing federal vehicle fleet requirements. In April 2019, the Secretary provided a report to the Chairman of the Council on Environmental Quality and the Director of the Office of Management and Budget detailing opportunities to optimize federal fleet performance, reduce associated costs, and streamline reporting and compliance requirements. Specifically, the report recommends that federal agencies identify and implement strategies to:

  • Right-size the fleet
  • Reduce vehicle miles traveled
  • Implement more fuel efficient vehicles
  • Align the implementation of AFVs and associated fueling infrastructure
Executive Order 14008, issued in January 2021, requires the Chair of the Council on Environmental Quality, the Administrator of General Services, and the Director of the Office and Management and Budget, in coordination with the Secretary of Commerce, the Secretary of Labor, the Secretary, and the heads of other relevant agencies, to assist the National Climate Advisor in developing a comprehensive plan to facilitate clean and zero-emission vehicles for federal, state, local, and tribal government fleets, including vehicles of the U.S. Postal Service. The plan must be submitted to the National Climate Task Force by April 27, 2021.

(Reference 42 U.S. Code 13212 and Executive Order 13834 and Executive Order 14008)

Point of Contact
Federal Energy Management Program
U.S. Department of Energy
https://www.energy.gov/eere/femp/federal-energy-management-program-contacts

Vehicle Acquisition and Fuel Use Requirements for State and Alternative Fuel Provider Fleets

Under the Energy Policy Act (EPAct) of 1992, as amended, certain state government and alternative fuel provider fleets are required to acquire alternative fuel vehicles (AFVs) as a portion of their annual light-duty vehicle acquisitions. Compliance is required by fleets that operate, lease, or control 50 or more light-duty vehicles within the United States. Of those 50 vehicles, at least 20 must be used primarily within a single Metropolitan Statistical Area/Consolidated Metropolitan Statistical Area, and those same 20 vehicles must also be capable of being centrally fueled for the fleet to be subject to the regulatory requirements.

Under Standard Compliance, the AFVs that covered fleets acquire help them achieve compliance, with each AFV acquired earning the fleet one AFV-acquisition credit. Covered fleets may earn additional credits for AFVs earned in excess of their requirements, and these credits may be banked for future use toward compliance or traded with other fleets. Additionally, fleets that use fuel blends containing at least 20% biodiesel (B20) in medium- and heavy-duty vehicles may earn credits toward their annual AFV-acquisition requirements. A fleet may also earn credits that may be used toward compliance or banked once the fleet achieves compliance for investments in alternative fuel infrastructure, mobile non-road equipment, and emerging technologies associated with certain electric drive vehicle technologies.

Fleets may also opt into Alternative Compliance, which allows fleets the option to choose a petroleum reduction path in lieu of acquiring AFVs under Standard Compliance. Interested fleets must obtain from DOE a waiver from Standard Compliance by submitting a plan that demonstrates a path by which they will achieve a certain level of petroleum reduction specific to their fleet composition.

For more information, visit the EPAct State and Alternative Fuel Provider Fleets website.

(Reference 42 U.S. Code 13251 and 13263a, and 10 CFR 490)

Point of Contact
EPAct Transportation Regulatory Activities
U.S. Department of Energy
regulatory.info@nrel.gov
https://epact.energy.gov/contact-us

Vehicle Acquisition and Fuel Use Requirements for Private and Local Government Fleets

Under the Energy Policy Act (EPAct) of 1992, the U.S. Department of Energy (DOE) was directed to determine whether private and local government fleets should be mandated to acquire alternative fuel vehicles (AFVs). In January 2004, DOE published a final rule announcing its decision not to implement an AFV acquisition mandate for private and local government fleets. In response to a March 2006 ruling by a U.S. District Court, DOE issued a subsequent final rulemaking on the new Replacement Fuel Goal in March 2007, which extended the EPAct 1992 goal to 2030. The goal is to achieve a domestic production capacity for replacement fuels sufficient to replace 30% of the U.S. motor fuel consumption. In March 2008, DOE issued its determination not to implement a fleet compliance mandate for private and local government fleets, concluding that such a mandate is not necessary to achieve the Replacement Fuel Goal. For more information on the Private and Local Government Fleet Rule compliance, visit the EPAct Private and Local Government Fleet Determination website. (Reference 42 U.S. Code 13257)

Alternative Fuel Definition

The following fuels are defined as alternative fuels by the Energy Policy Act (EPAct) of 1992: pure methanol, ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline; natural gas and liquid fuels domestically produced from natural gas; propane; coal-derived liquid fuels; hydrogen; electricity; pure biodiesel (B100); fuels, other than alcohol, derived from biological materials; and P-Series fuels. In addition, the U.S. Department of Energy may designate other fuels as alternative fuels, provided that the fuel is substantially non-petroleum, yields substantial energy security benefits, and offers substantial environmental benefits. For more information, see the EPAct website. (Reference 42 U.S. Code 13211)

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov

Renewable Fuel Standard (RFS) Program

The national RFS Program was developed to increase the volume of renewable fuel that is blended into transportation fuels. As required by the Energy Policy Act of 2005, the U.S. Environmental Protection Agency (EPA) finalized RFS Program regulations, effective September 1, 2007. The Energy Independence and Security Act of 2007 (EISA) increased and expanded this standard. By 2022, 36 billion gallons of renewable fuel must be blended into domestic transportation fuels each year. A certain percentage of this renewable fuel must be advanced biofuel, which includes fuels derived from approved renewable biomass, excluding corn starch-based ethanol. Other advanced biofuels may include sugarcane-based fuels, renewable diesel co-processed with petroleum, and other biofuels that may exist in the future. All advanced biofuels must achieve a minimum of a 50% greenhouse gas (GHG) emissions reduction compared to baseline petroleum emissions. Nested within advanced biofuels are two sub-categories: cellulosic biofuel and biomass-based diesel, both of which have their own percentage requirements. Cellulosic biofuel is defined as any renewable fuel derived from cellulose, hemicellulose, or lignin that achieves a 60% GHG emissions reduction. Biomass-based diesel is defined as a renewable transportation fuel, transportation fuel additive, heating oil, or jet fuel, such as biodiesel or non-ester renewable diesel, and achieves a 50% GHG emissions reduction. If intended for use in a motor vehicle, the fuel must also be registered with EPA as a motor vehicle fuel or fuel additive.

Each year, EPA determines the annual percentage standards by dividing the annual amount of renewable fuel (gallons) required by EISA for each renewable fuel pathway by the amount of highway and non-road gasoline and petroleum diesel estimated to be supplied that year. These percentages are then applied to obligated parties’ actual fuel sales to determine their Renewable Volume Obligation (RVO). Any party that produces gasoline for use in the United States, including refiners, importers, and blenders (other than oxygenate blenders), is considered an obligated party under the RFS Program. Parties that do not produce, import, or market fuels within the 48 contiguous states are exempt from the renewable fuel tracking program.

To facilitate and track compliance with the RFS, a producer or importer of renewable fuel must generate Renewable Identification Numbers (RINs) to represent renewable fuels produced or imported by the entity on or after September 1, 2007, assigned by gallon or batch. Assigned RINs are transferred when ownership of a batch of fuel occurs, but not when fuel only changes custody. A trading program is in place to allow obligated parties to comply with their annual RVO requirements through the purchase of RINs. Obligated parties must register with EPA in order to participate in the trading program. For each calendar year, an obligated party must demonstrate that it has sufficient RINs to cover its RVO. RINs may only be used for compliance purposes in the calendar year they are generated or the following year. Obligated parties must report their ownership of RINs to EPA’s Office of Transportation and Air Quality on a quarterly and annual basis.

For more information, see the RFS Program website.

(Reference 42 U.S. Code 7545(o) and 40 CFR 80.1100-80.1167)

Point of Contact
Fuels Programs
U.S. Environmental Protection Agency
Phone: (202) 343-9755
http://www.epa.gov/fuels-registration-reporting-and-compliance-help

Fuel Economy Test Procedures and Labeling

The U.S. Environmental Protection Agency (EPA) is responsible for motor vehicle fuel economy testing. Manufacturers test their own vehicles and report the results to EPA. EPA reviews the results and confirms a portion of them using their own testing facilities. To aid consumers shopping for new vehicles, EPA redesigned the fuel economy window sticker posted on all new cars and light trucks starting with Model Year 2013 vehicles to be easier to read and understand. EPA also redesigned fuel economy window stickers for electric and other advanced vehicles. EPA is responsible for providing the posted fuel economy data and does so through the FuelEconomy.gov website. For more information, visit EPA's Fuel Economy website. (Reference 40 CFR 600)

Point of Contact
U.S. Environmental Protection Agency
Phone: (202) 272-0167
http://www.epa.gov

Tier 3 Vehicle and Gasoline Sulfur Program

The Tier 3 Vehicle and Gasoline Sulfur Program requires new passenger vehicles, including sport utility vehicles, pick-up trucks, and vans, to meet stringent emissions standards. New emissions standards apply to all light-duty vehicles, regardless of whether they run on gasoline, diesel, or alternative fuels. Additionally, this program requires gasoline refiners and importers to reduce the sulfur content of gasoline sold in the United States. For more information, see the U.S. Environmental Protection Agency Emission Standards website. (Reference 40 CFR 80, 85, and 86)

Point of Contact
U.S. Environmental Protection Agency
Phone: (202) 272-0167
http://www.epa.gov

Aftermarket Alternative Fuel Vehicle (AFV) Conversions

Conventional original equipment manufacturer vehicles altered to operate on propane, natural gas, methane gas, ethanol, or electricity are classified as aftermarket AFV conversions. All vehicle conversions, except those that are completed for a vehicle to run on electricity, must meet current applicable U.S. Environmental Protection Agency (EPA) standards. For more information about vehicle conversion certification requirements, see the Alternative Fuels Data Center's Vehicle Conversions website and EPA's Certification and Compliance for Vehicles and Engines website. (Reference 40 CFR 85 and Enforcement Policy on Vehicle and Engine Tampering and Aftermarket Defeat Devices)

Point of Contact
Regulatory Compliance
U.S. Environmental Protection Agency
Phone: (734) 214-4343
https://www.epa.gov/vehicles-and-engines

Alternative Fuel Labeling Requirements

Retailers offering alternative fuel for sale must ensure dispensers are labeled with information to help consumers make informed decisions about fueling a vehicle, including the name of the fuel and the minimum percentage of the main component of the fuel. Labels may also list the percentage of other fuel components. This requirement applies to, but is not limited to, the following fuel types: methanol, denatured ethanol, and/or other alcohols; mixtures containing 85% or more by volume of methanol and/or other alcohols; mixtures containing more than 10% but less than 83% by volume of ethanol; natural gas; propane; hydrogen; coal derived liquid biofuel; and electricity.

Fuel dispensers distributing biodiesel blends containing more than 5% biodiesel by volume must include the percentage of biodiesel included. For ethanol blends containing no greater than 50% ethanol by volume, retailers must post the exact percentage of ethanol concentration, rounded to the nearest multiple of 10. For ethanol blends containing more than 50% but no greater than 83% ethanol by volume, retailers must (1) post the exact percentage of ethanol concentration, (2) post the percentage rounded to the nearest multiple of 10, or (3) post notice that the fuel contains 51% to 83% ethanol.

Electric vehicle supply equipment (EVSE) manufacturers must determine and disclose (via a delivery ticket or permanent label or marking) kilowatt capacity, voltage, whether the voltage is alternating current or direct current, amperage, and whether the system is conductive or inductive.

(Reference 81 Federal Register 2054 and 16 CFR 306 and 309)

Point of Contact
Federal Trade Commission
Phone: (202) 326-2222
http://www.ftc.gov/

Biofuel Compatibility Requirements for Underground Storage Tanks (USTs)

Fueling station owners and operators must notify the appropriate state and local implementing agencies at least 30 days before switching USTs to store ethanol blends greater than 10%, biodiesel blends greater than 20%, or any other regulated fuel the agency has identified. This notification timeframe allows agencies to request information on UST compatibility before the owner or operator stores the fuel. Owners and operators must also demonstrate UST system compatibility and maintain records of compliance from the implementing agency for as long as the UST is used to store the fuel. For more information on compatibility requirements and implementing agencies by state, see the U.S. Environmental Protection Agency UST Compatibility website and the final rule in the Federal Register. (Reference 40 CFR 280.32)

Greenhouse Gas (GHG) Reporting Requirement

Vehicle and engine manufacturers are required to report annual GHG emissions to the U.S. Environmental Protection Agency (EPA). Vehicle and engine manufacturers outside of the light-duty sector are required to report carbon dioxide emissions levels beginning with Model Year 2011 and other GHG emissions in subsequent model years. This includes heavy trucks, motorcycles, and non-road engines and equipment. The reporting requirement also applies to suppliers of fossil fuels or industrial GHGs and facilities that emit at least 25,000 metric tons of carbon dioxide equivalent per year. For more information, see EPA's Greenhouse Gas Reporting Program website. (Reference 40 CFR 86-90, 94, 98, 1033, 1039, 1042, 1045, 1048, 1051, 1054, and 1065)

Point of Contact
Greenhouse Gas Mandatory Reporting Rule
U.S. Environmental Protection Agency
Phone: (202) 272-0167
http://www.epa.gov/ghgreporting

Vehicle Fuel Economy and Greenhouse Gas (GHG) Emissions Standards

Vehicle manufacturers must meet fuel economy and GHG emissions standards for vehicles sold in the United States. The U.S. Department of Transportation’s (DOT) National Highway Traffic Safety Administration (NHTSA) regulates fuel economy standards, while the U.S. Environmental Protection Agency (EPA) regulates GHG emissions.

NHTSA’s Corporate Average Fuel Economy (CAFE) program and EPA’s light-duty vehicle GHG emissions program set standards for passenger cars, light-duty trucks, and medium-duty passenger vehicles. By Model Year (MY) 2025, these vehicles must meet an estimated combined average fuel economy of 48.7 to 49.7 miles per gallon or higher. The standards provide flexibility to manufacturers, including the ability to earn credits for alternative fuel vehicles. For information on the standards from MY 2017 to 2025, see the final rule in the Federal Register.

Additionally, fuel efficiency standards will increase by 2% per year for MY 2027 to 2031 passenger vehicles and MY 2029 to 2031 light-duty trucks. For more information on the standards from MY 2027 to 2031, see the NHTSA final rule.

NHTSA and EPA also regulate fuel economy and GHG emissions for on-road vehicles with a gross vehicle weight rating (GVWR) of 8,500 pounds or greater and the engines that power them. For MY 2014 to 2018 medium- and heavy-duty vehicles that are not already covered by the standards described above, manufacturers must meet increasingly stringent fuel economy and GHG emissions standards tailored to each of three main regulatory subcategories: combination tractors (also known as semi trucks); heavy-duty pickup trucks and vans; and vocational vehicles (such as delivery, refuse, and tow trucks; transit, shuttle, and school buses; and emergency vehicles). The standards provide flexibility, allowing for emissions and/or fuel consumption credits to be averaged, banked, or traded. For more information, refer to the final rule in the Federal Register.

For more information, see the EPA’s Regulations and Standards website and NHTSA’s CAFE website.

(Reference 40 CFR 85-86, 600, 1033, 1036-1037, 1039, 1065-1066, and 1068, 49 CFR 523, 531, 533-534, and 537-538, and 49 U.S. Code 329)

Points of Contact
National Highway Traffic Safety Administration
U.S. Department of Transportation
Phone: (888) 327-4236
http://www.nhtsa.gov/

U.S. Environmental Protection Agency
Phone: (202) 272-0167
http://www.epa.gov

High Occupancy Vehicle (HOV) Lane Exemption

States are allowed to exempt certified alternative fuel vehicles (AFVs) and electric vehicles (EVs) from HOV lane requirements within the state. Eligible AFVs are defined as vehicles operating solely on methanol, denatured ethanol, or other alcohols; a mixture containing at least 85% methanol, denatured ethanol, or other alcohols; natural gas, propane, hydrogen, or coal derived liquid fuels; or fuels derived from biological materials. EVs are defined as vehicles that are recharged from an external source of electricity and have a battery capacity of at least 4 kilowatt-hours. States are also allowed to establish programs allowing low-emission and energy-efficient vehicles to pay a toll to access HOV lanes.

Vehicles must be certified by the U.S. Environmental Protection Agency (EPA) and appropriately labeled for use in HOV lanes. The U.S. Department of Transportation (DOT) is responsible for planning and implementing HOV programs, including the low-emission and energy-efficient vehicle criteria EPA established. States that choose to adopt these requirements will be responsible for enforcement and vehicle labeling. The HOV exemption for AFVs and EVs expires September 30, 2025 and low-emission and energy-efficient vehicle toll-access to HOV lanes expired September 30, 2019.

(Reference Public Law 114-94 and 23 U.S. Code 166)

Idle Reduction Technology Weight Exemption

States may allow heavy-duty vehicles equipped with idle reduction technology to exceed the maximum gross vehicle weight limit and the axle weight limit by up to 550 pounds to compensate for the additional weight of the idle reduction technology. This allowance does not impact state highway funding eligibility. (Reference Public Law 112-141 and 23 U.S. Code 127(a)(12))

Vehicle Incremental Cost Allocation

The U.S. General Services Administration (GSA) must allocate the incremental cost of purchasing alternative fuel vehicles (AFVs) across the entire fleet of vehicles distributed by GSA. This mandate also applies to other federal agencies that procure vehicles for federal fleets. For more information, see the GSA's AFV website. (Reference 42 U.S. Code 13212 (c))

Point of Contact
Fleet Alternative Fuel Vehicle Team
U.S. General Services Administration
gsafleetafvteam@gsa.gov
http://www.gsa.gov

Programs

Bioeconomy Development Programs

The U.S. Department of Agriculture’s (USDA) Bioeconomy, Bioenergy, Bioproduct (B3) Program provides grants for the research and development of biofuels, sustainable aviation fuel, and related products. Eligible applicants include universities, governments, and commercial entities. For more information, including additional program details, see the USDA B3 Programs website.

Community Clean Energy Support Program

The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) provides support to communities to achieve their clean energy goals through the Clean Energy to Communities (C2C) Program by offering in-depth partnerships, peer-learning cohorts, and one-on-one matches with experts. Partners in peer-learning cohorts include Clean Cities and Communities coalitions. Eligible communities include local governments, tribal governments, metropolitan and regional planning authorities, utilities, community-based organizations, and entities such as transit agencies, school districts, housing authorities, and universities. Eligible community clean energy goal topics include electric vehicles, alternative fuels, and associated infrastructure. For more information, see NREL’s C2C website.

Electric Vehicle (EV) Manufacturing Guidance Grants

The U.S. Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains (MESC) established the Industrial Assessment Centers (IAC) Program to provide clean energy resources for small- to medium-sized manufacturers, universities and career institutions, and individuals seeking hiring and training opportunities. DOE offers grants of up to $300,000 per project for IACs to develop EV conversion playbooks for small- and medium-sized manufacturers. Eligible applicants include universities, community colleges, trade schools, union training programs, and applicants supported by other public sector entities. Additional terms and conditions apply. For more information, see the DOE IAC Program and EV Conversion Playbook websites.

(Reference Public Law 117-58 and 42 U.S. Code 17116)

Innovative Vehicle Technology Loans

The U.S. Department of Energy’s Loan Programs Office (LPO) offers loans for innovative vehicle technology projects through the Title 17 Clean Energy Financing Program. Eligible projects include manufacturing facilities for fuel-efficient vehicles or their parts, sustainable aviation fuels, biofuels, alternative vehicle fuel distribution facilities, and hydrogen fuel cell technology. Loans may cover up to 80% of project costs. Additional terms and conditions apply. For more information, see the LPO Innovative Energy and Innovative Supply Chain website and the program guidance.

(Reference Public Law 109-58, Public Law 117-169, 42 U.S. Code 7254, and 42 U.S. Code 16511-16517)

National Highway Performance Program (NHPP)

The NHPP provides support to improve the condition and performance of the National Highway System (NHS), construct of new facilities on the NHS. NHPP-eligible activities include the installation of electric vehicle supply equipment (EVSE) and natural gas refueling stations along the NHS as part of the construction of fringe and corridor parking lots (e.g., park-and-ride lots), as well as truck parking rest areas. Restrictions on public fees for use of EVSE and natural gas stations on the federal Interstate System apply. (Reference Public Law 114-94, 23 U.S. Code 137, and 23 U.S. Code 111)

Propane Education, Research, and Training

The Propane Education and Research Act of 1996 established the Propane Education and Research Council (PERC) to develop programs education and training programs for safe propane use. The propane industry funds and operates PERC, and PERC helps coordinate efforts to promote the use of propane as an alternative fuel. The Propane Education and Research Enhancement Act of 2014 expanded PERC's duties by tasking the council with developing training programs to reduce the effects of future propane price spikes for propane distributors and consumers. For more information, see the PERC website. (Reference Public Laws 113-269 and 104-284)

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov

Surface Transportation Block Grant Program (STBG)

The STBG program promotes flexibility in state and local transportation decisions and provides flexible funding to best address state and local transportation needs. States may use apportioned funds for electric vehicle supply equipment and natural gas refueling stations during the construction of truck parking, as well as fringe and corridor parking facilities (e.g., park and ride facilities). Fringe and corridor parking facilities must meet specific requirements. (Reference Public Law 114-94, 23 U.S. Code 133, and 23 U.S. Code 137)

Clean Cities and Communities

The mission of Clean Cities and Communities is to foster the economic, environmental, and energy security of the United States by working locally to advance affordable, domestic transportation fuels and technologies. Nearly 100 volunteer coalitions carry out this mission by developing public/private partnerships to promote alternative and renewable fuels, idle-reduction measures, fuel economy, improvements, and emerging transportation technologies. Clean Cities and Communities provides information about funding opportunities, coordinates technical assistance projects, updates and maintains databases and websites, and publishes technical and informational materials. For more information, see the Clean Cities and Communities website.

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov

Diesel Emissions Reduction Act (DERA) Program

The U.S. Environmental Protection Agency established the DERA Program to reduce pollution emitted from diesel engines through the implementation of varied control strategies and the involvement of national, state, local, and tribal partners. DERA includes programs for existing diesel fleets, regulations for clean diesel engines and fuels, and regional collaborations and partnerships. For information on available grants and funding opportunities, see the DERA Funding website.

Point of Contact
DERA Helpline
Diesel Emissions Reduction Act
U.S. Environmental Protection Agency
Phone: (877) 623-2322
dera@epa.gov
https://www.epa.gov/dera

SmartWay Transport Partnership

The SmartWay Transport Partnership is a market-based public-private collaboration between the U.S. Environmental Protection Agency (EPA) and the domestic freight industry. This partnership is designed to reduce greenhouse gases and air pollution by accelerating the adoption of advanced technologies and operational practices which increase fuel efficiency and reduce emissions from goods movement. EPA provides partners with performance benchmarking tools, fleet management best practices, technology verification, public recognition and awards, and use of the SmartWay Transport Partner logo to demonstrate their leadership to customers, shareholders and other stakeholders. The SmartWay Transport Partnership is working with partners to test and verify advanced technologies and operational practices that save fuel and reduce emissions. Grants are available to states, non-profits, and academic institutions to demonstrate innovative idle reduction technologies for the trucking industry. For more information, see the SmartWay Transport Partnership website.

Point of Contact
SmartWay Transport Partnership
U.S. Environmental Protection Agency
Phone: (734) 214-4767
smartway_transport@epa.gov
http://www.epa.gov/smartway

Clean Construction and Agriculture

Clean Construction is a voluntary program that promotes the reduction of diesel exhaust emissions from construction equipment and vehicles by encouraging proper operations and maintenance, use of emissions-reducing technologies, and use of cleaner fuels.

Clean Agriculture is a voluntary program that promotes the reduction of diesel exhaust emissions from agricultural equipment and vehicles by encouraging proper operations and maintenance by farmers, ranchers, and agribusinesses, use of emissions-reducing technologies, and use of cleaner fuels.

Clean Construction and Clean Agriculture are part of the U.S. Environmental Protection Agency's Diesel Emissions Reduction Act (DERA) Program, which offers funding for clean diesel construction and agricultural equipment projects.

For more information, see the Reducing Diesel Emissions from Construction and Agriculture website.

Point of Contact
DERA Helpline
Diesel Emissions Reduction Act
U.S. Environmental Protection Agency
Phone: (877) 623-2322
dera@epa.gov
https://www.epa.gov/dera

Ports Initiative

The U.S. Environmental Protection Agency's (EPA) Ports Initiative is an incentive-based program designed to reduce emissions by encouraging port authorities and terminal operators to retrofit and replace older diesel engines with new technologies and use cleaner fuels. EPA's Ports Initiative offers funding to port authorities and public entities to help them overcome barriers that impede the adoption of cleaner diesel technologies and strategies. For more information, see the Ports Initiative website.

Point of Contact
Jennifer Keller
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone: (202) 343-9541
keller.jennifer@epa.gov
http://www.epa.gov/cleandiesel/

Pollution Prevention Grants Program

The Pollution Prevention (P2) Grants Program supports state and tribal technical assistance, education, and research programs that help businesses and industries identify better environmental strategies and solutions for complying with federal and state environmental regulations. Eligible applicants include states, U.S. territories, and qualified state agencies, colleges and universities. Local governments, private universities, private non-profit organizations, private businesses, and individuals are not eligible for funding. Matching funds will be awarded and managed by the U.S. Environmental Protection Agency’s regional P2 program offices. Grant amounts awarded are dependent on Congressional appropriations for this program. For more information see the P2 Program website. (Reference 42 U.S. Code 13104)

Point of Contact
U.S. Environmental Protection Agency
Phone: (202) 272-0167
http://www.epa.gov

Voluntary Airport Low Emission (VALE) Program

The goal of the VALE Program is to reduce ground level emissions at commercial service airports located in designated ozone and carbon monoxide air quality nonattainment and maintenance areas. The VALE Program provides funding through the Airport Improvement Program and the Passenger Facility Charges program for the purchase of low emission vehicles, development of fueling and recharging stations, implementing gate electrification, and other airport air quality improvements. For more information, see the VALE Program website. (Reference 49 U.S. Code 47139)