Maryland Laws and Incentives

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

State Incentives

Electric Vehicle (EV) Corridor Charging Grant

The Maryland Department of Environment (MDE) offers grants of up to 80% of the cost for the installation of direct current fast charging (DCFC) stations along Federal Highway Administration designated alternative fuel corridors through the Electric Corridors Grant Program (ECGP). ECPG funding is available for up to $150,000 per DCFC station and $600,000 per applicant. Eligible entities include non-profits and private businesses. Grant awards vary based on total kilowatts per charging port. The program is funded by Maryland’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and application, see the MDE’s Volkswagen Settlement website.

Electric Vehicle (EV) Workplace Charging Grant

The Maryland Department of Environment (MDE) offers grants of up to 60% of the cost for the installation of EV charging stations at workplaces through the Charge Ahead Grant Program (CAGP). Grants are available for up to $4,500 per Level 2 EV charger and $600,000 per applicant. CAGP funding is available for costs directly attributable to the design, installation, and operation of eligible workplace EV charging stations. Eligible entities include non-profits, private companies, and government agencies. The program is funded by Maryland’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and application, see the MDE Volkswagen Settlement website.

Maryland’s National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Maryland Department of Transportation (MDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Maryland’s NEVI planning process, see the MDOT Zero Emission Vehicle Infrastructure Plan website. To review Maryland’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Alternative Fuel Vehicle (AFV) Grants

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

AFV Technology Vehicle Class Maximum Grant Award per Vehicle
Electric Vehicles Class 1-2 $5,000
Natural Gas, Propane, Biodiesel, and Hydrogen Vehicles Class 1-2 $7,500
Natural Gas, Propane, and Biodiesel Vehicles Class 3-8 $50,000
Electric and Hydrogen Vehicles Class 3-7 $80,000
Electric and Hydrogen Vehicles Class 8 $150,000

Eligible applicants must be a fleet vehicle operator or purchaser and may include school districts, nonprofits, commercial entities, corporations, and local and municipal governments. AFVs purchased for individual or personal use are ineligible. Vehicles receiving funding from other state programs are ineligible. Grants will be awarded on a competitive basis, with equity and environmental justice considerations as part of the evaluation criteria. For more information, including additional eligibility criteria, see MEA’s CFIP Program website.

Clean Energy Grants

The Maryland Smart Energy Communities (MSEC) program, administered by the Maryland Energy Administration (MEA), offers local governments grants for transportation-related projects, including the purchase of new electric vehicles (EVs) or alternative fuel vehicles and the installation of EV charging stations. Grants are available in the following amounts:

Project Type Maximum Grant Award
Purchase of a New EV with an All-Electric Range of up to 199 Miles $3,750 per vehicle
Purchase of a New EV with an All-Electric Range of Over 200 Miles $7,500 per vehicle
EV Charging Station Equipment and Installation $6,000 per EV charging station

Communities already participating in the MSEC program may receive a maximum award of $55,000 per project and new communities may receive up to $75,000. Additional requirements may apply. For more information, including requirements and application deadline, see the MEA MSEC website.

Electric Vehicle (EV) Charging Station Rebate Program

The Maryland Energy Administration (MEA) offers a rebate to individuals, businesses, multi-unit dwellings (MUDs), and state or local government entities for the costs of acquiring and installing qualified EV charging stations. Between July 1, 2022, and June 30, 2023, the rebate may cover 40% of the costs of acquiring and installing qualified EV charging stations, or up to the following amounts:

Qualified Entity Amount per EV Charging Station
Residential $700
Businesses, Nonprofits, Workplaces, MUDs, and State or Local Government Entities $5,000

Applicants must demonstrate compliance with state, local, and/or federal law that applies to the installation or operation of qualified EV charging stations. Other requirements may apply. MEA may award up to $1,800,000 total. Each entity that applies for a commercial rebate may receive up to 18% of the total program budget per fiscal year. Rebates will be awarded on a first-come, first-served basis. For more information, see the MEA Electric Vehicle Supply Equipment Rebate Program website.

(Reference Maryland Statutes, Business Regulation Code 10-101, Maryland Statutes, State Government Code 9-2009, and House Bill 550, 2023)

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

Beginning July 1, 2023, qualified EV and FCEV purchasers may apply for an excise tax credit of up to $3,000. The tax credit is first-come, first-served, and is limited to one vehicle per individual and 10 vehicles per business entity. Qualified vehicles must meet the following criteria:

  • Have a total purchase price not exceeding $50,000;
  • Be propelled to a significant extent by an electric motor that draws electricity from a battery with a capacity of at least 4 kilowatt-hours;
  • Have not been modified from original manufacturer specifications; and
  • Be purchased and titled for the first time between July 1, 2023, and July 1, 2027.

Additional restrictions apply.

(Reference Maryland Statutes, Transportation Code 13-815)

Solar Canopy Electric Vehicle (EV) Infrastructure Grant

The Maryland Energy Administration (MEA) offers grants of up to $125,000 for the planning and installation of solar arrays on existing public facilities and infrastructure. Eligible projects include solar canopies that support EVSE. For more information, see the MEA Public Facility Solar Grant Program website.

Electric Vehicle (EV) High Occupancy Vehicle (HOV) Lane Exemption

Permitted EVs may operate in any Maryland HOV lanes regardless of the number of occupants. Qualified EVs must have a maximum speed capability of at least 65 miles per hour. To operate in HOV lanes, EV owners must obtain a permit from the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA). Permits may cost up to $20 each. Each year the MDOT MVA and the State Highway Administration must report EV use in HOV lanes to the governor. For more information, see the MDOT MVA HOV Permit Issuance for EVs website.

(Reference Maryland Statutes, Transportation Code 25-108 and 21-314 and House Bill 123, 2023)

Zero Emission School Bus Grant Program and Study

The Maryland Department of the Environment (MDE) administers a Zero Emission School Bus Transition Grant Program to purchase zero emission school buses, install charging infrastructure, and transition to zero emission school bus fleets. MDE and the Maryland Department of Transportation also provide technical assistance to county boards of education transitioning school buses to zero emission vehicles throughout the state.

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

Idle Reduction Weight Exemption

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

(Reference Maryland Statutes, Transportation Code 24-109)

Electric Vehicle Emissions Inspection Exemption

Vehicles powered exclusively by electricity are exempt from state emissions inspections. For more information, see the Maryland Vehicle Emissions Inspection Program website.

(Reference Maryland Statutes, Transportation Code 23-206 and 23-206.4)

Utility / Private Incentives

Electric Vehicle (EV) Charging Station Residential Rebate - Potomac Edison

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

Electric Vehicle (EV) Charging Rate Incentive - Potomac Edison

Potomac Edison offers residential customers the opportunity to earn 2 cents per kilowatt-hour when charging with eligible EV charging stations during off-peak hours through the EV Driven Off-Peak Rewards Program. For more information, see the EV Driven website.

Electric Vehicle (EV) Charging Station Multifamily Rebate - Potomac Edison

Potomac Edison offers multifamily property owners a rebate of up to $20,000 for the purchase and installation of qualified Level 2 or direct current fast charging (DCFC) stations on their property through the EV Driven Program. Only customers that purchase and install eligible EV charging stations between January 1, 2020 and December 31, 2023, are eligible. For more information, including eligibility and qualifying EV charging stations, see the EV Driven website.

Public Electric Vehicle (EV) Charging Station Incentive – Potomac Edison

Potomac Edison offers to install and operate a public Level 2 or direct current fast charging (DCFC) station on government property at no cost to the government sites. A maximum of 59 EV charging stations will be installed through this program and applications will be reviewed on a first-come, first-served basis. Additional terms and conditions apply. For more information, see the Potomac Edison Public Charging Stations website.

Commercial Electric Vehicle (EV) Charging Station Rebates – BGE

Baltimore Gas and Electric (BGE) offers commercial customers a rebate for 50% of the purchase and installation cost of eligible Level 2 EV charging stations, up to $5,000 per port, and 50% of the purchase and installation cost of eligible direct current fast charging (DCFC) stations, up to $15,000 per port. Rebate awards may not exceed $30,000 per site. Eligible commercial customers include multifamily properties, homeowner’s associations, small businesses, non-profit organizations, and commercial fleets. Only chargers purchased and installed after July 1, 2019, are eligible. A total of 700 rebates are available on a first-come, first-served basis. Applicants will be placed on a waitlist once the rebate limit is reached. Additional terms and conditions apply. For more information, including how to apply, see the BGE EVsmart website.

Electric Vehicle (EV) Charging Rate Reduction - BGE

Baltimore Gas and Electric Company (BGE) offers time-of-use (TOU) rate for residential customers that own or lease an EV. Eligible customers must own a qualified Level 2 EV charging station, capable of separately tracking EV charging data. For more information, including qualifying EV charging stations, see the BGE EVsmart Vehicle Charging TOU Rate website.

Residential Electric Vehicle (EV) Charging Station Rebate - BGE

Baltimore Gas and Electric (BGE) offers residential customers an annual credit of $50 for the purchase and installation of a Level 2 EV charging station. To be eligible, residential customers must charge EVs during off-peak hours. Additional terms and conditions apply. For more information, including how to apply, see the BGE EVsmart website.

Electric Vehicle (EV) Charging Station Rebates - Delmarva Power

Delmarva Power provides rebates to residential and multifamily customers toward the purchase of qualified Level 2 EV charging stations. Delmarva Power offers residential customers a $300 rebate for a Level 2 smart EV charging station. Only EV charging stations purchased and installed after July 1, 2019, are eligible.

Delmarva Power offers customers that own or operate multifamily properties a rebate for 100% of the cost to purchase and install eligible Level 2 smart EV charging stations, up to $15,000 per station. Eligible customers may receive rebates for up to two EV charging stations. Additional terms and conditions apply. For more information, including how to apply, see the Delmarva Power EVsmart website.

Electric Vehicle (EV) Charging Station Rebate and Time-Of-Use (TOU) Rate – Delmarva Power

Delmarva Power offers residential customers a rebate of up to 50% of the cost to purchase and install an eligible Level 2 EV charging station through the Plug-In Vehicle (PIV) Managed Charger Program. Delmarva Power also offers a TOU rate to residential customers who own an EV. Customers that participate in the PIV Managed Charger Program are automatically enrolled in the EV TOU rate. A maximum of 100 customers may participate in the PIV Managed Charger Program and applications are reviewed on a first-come, first-served basis. Additional terms and conditions apply. For more information, including qualifying Level 2 EV chargers and how to apply, see the Delmarva Power PIV Managed Charger Program website.

Electric Vehicle (EV) Charging Station Credit - Pepco

Pepco offers a $50 gift card to residential customers who purchase and install an eligible Level 2 EV charging station. For more information, including qualifying Level 2 EV chargers and how to apply, see the Pepco EVsmart website.

Electric Vehicle (EV) Charging Station Rebates - Pepco

Pepco offers customers that own or operate multifamily properties a rebate for 100% of the cost to purchase and install eligible Level 2 smart EV charging stations, up to $15,000 per station. Eligible customers may receive rebates for up to two EV charging stations. Additional terms and conditions apply. For more information, including how to apply, see the Pepco EVsmart website.

Electric Vehicle (EV) Charging Station Workplace Rebate – Pepco

Pepco offers a rebate to workplaces for the purchase and installation of Level 2 EV charging stations. Rebate awards are up to $5,000 per port, and $30,000 per property. Eligible applicants include Maryland-based small businesses and nonprofit organizations. For more information, including additional eligibility requirements, see the Pepco Workplace Charger Rebate Program website.

Public Electric Vehicle (EV) Charging Station Incentive – SMECO

Southern Maryland Electric Cooperative (SMECO) offers to install and operate a public Level 2 or direct current fast charging (DCFC) station on government property at no cost to the government sites. A maximum of 60 EV charging stations will be installed through this program and applications will be reviewed on a first-come, first-served basis. Additional terms and conditions apply. For more information, see the SMECO EV Recharge website.

Electric Vehicle (EV) Infrastructure Support

Maryland utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.

Laws and Regulations

Electric Vehicle (EV) Charging Station New Construction Requirement

Beginning October 1, 2023, new construction of homes with a garage, carport, or driveway must include a Level 2 EV charging station or electric pre-wiring to support a Level 2 EV charging station.

(Reference Maryland Statutes, Public Safety Code 12-205 and House Bill 830, 2023)

Public Utility Definition

Owners and operators of electric vehicle (EV) charging stations are not subject to state regulation as electricity suppliers or public service companies. For the purpose of this regulation, owners and operators of EV charging stations are considered retail electric customers.

(Reference Maryland Statutes, Public Utility Code 1-101(j))

Electric Vehicle (EV) Information Disclosure

The Maryland Motor Vehicle Administration may provide the address of a registered EV owner and information about the vehicle to electric companies for their use. Electric companies may only use this information in planning for the electric power supply and may not use it for marketing or solicitation.

(Reference Maryland Statutes, General Provisions 4-320)

Zero Emission Vehicle (ZEV) Infrastructure Promotion

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

  • Develop policies and an action plan to promote and facilitate the integration of ZEVs into the Maryland transportation network;
  • Assist in developing and coordinating statewide standards for streamlined permitting and installation of electric vehicle charging and hydrogen fueling equipment;
  • Develop recommendations for a statewide EV charging and FCEV refueling infrastructure plan, including standard pricing information displays;
  • Increase and support consumer awareness and ownership of ZEVs through public outreach;
  • Recommend incentives to support private-sector investment in ZEVs;
  • Develop targeted policies to support fleet purchases of ZEVs;
  • Develop charging solutions for multiunit dwellings;
  • Encourage local and regional efforts to promote the use of ZEVs;
  • Develop model procurement practices for light-duty vehicles that include an evaluation of the vehicle lifecycle costs inclusive of estimated fuel cost over the anticipated life of the vehicle;
  • Recommend policies that support EV charging and FCEV fueling from clean energy sources;
  • Establish performance measures for meeting ZEV related employment, infrastructure, and regulatory goals; and
  • Pursue other policies, goals, and objectives that promote the adoption of ZEVs.

The Maryland Department of Transportation must provide staff support to ZEEVIC with the assistance of the Maryland Energy Administration and the Maryland Public Service Commission. For more information, including interim reports, see the Maryland Zero Emission Electric Vehicle Infrastructure Council website and the MarylandEV website.

(Reference Chapter 378, Acts of 2015, Chapter 213, Acts of 2019, and Chapter 118, Acts of 2020)

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

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

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Zero Emission Vehicle (ZEV) Deployment Support

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

In June 2018, the Task Force published a new ZEV Action Plan for 2018-2021. Building on the 2014 Action Plan, the 2018 Action Plan makes recommendations for states and other key partners in five priority areas:
  • Raising consumer awareness and interest in EV technology;
  • Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
  • Continuing and improving access to consumer purchase and non-financial incentives;
  • Expanding public and private sector fleet adoption; and
  • Supporting dealership efforts to increase ZEV sales.

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

Alternative Fuel Use Requirement

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

(Reference Maryland Statutes, State Finance and Procurement Code 14-408, and and Policies and Procedures for Vehicle Fleet Management)

Alternative Fuel Vehicle (AFV) Access to Tunnels

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

(Reference Code of Maryland Regulations 11.07.01.03)

Idle Reduction Requirement

A motor vehicle engine may not operate for more than five consecutive minutes when the vehicle is not in motion, with the following exceptions:

  1. when traffic conditions or mechanical difficulties do not allow the vehicle to operate;
  2. when it is necessary to operate heating, cooling or auxiliary equipment installed on the vehicle;
  3. to bring vehicle to manufacturer’s recommended operating temperature; or
  4. if idling is necessary to accomplish the intended use of the vehicle.

(Reference Maryland Statutes, Transportation Code 22-402)

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

Maryland has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. The Maryland Department of Environment may adopt regulations to exempt certain vehicles from the program, including motor vehicles sold for registration outside of Maryland and motor vehicles that would be exempt from the LEV program established under California law.

Beginning September 1, 2023, Maryland will adopt the California vehicle emissions standards and compliance requirements set forth in the California Air Resources Board Advanced Clean Cars II regulation.

For more information, see the Maryland Clean Cars Program website.

(Reference Maryland Statutes, Environment Code 2-1101 through 2-1106)

Aftermarket Alternative Fuel Vehicle (AFV) Conversion Requirements

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

(Reference Code of Maryland Regulations 26.11.34)

Low-Speed Vehicle Access to Roadways

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

(Reference Maryland Statutes, Transportation Code 11-130.1, 21-313, 21-1125, and 22-101)

Limited Speed Vehicle Access to Roadways

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

(Reference Maryland Statutes, Transportation Code 15-313, 21-804, and 21-805.1)

Electric Vehicle (EV) Charging Station Policies for Associations

Homeowner associations or condominium associations may not prohibit or restrict the installation or use of an EV charging station in a homeowner’s designated parking space. Associations may put reasonable restrictions on EV charging stations, but the association must treat EV charging station installation in the same manner as any unit architectural modification. Residents are required to comply with all relevant building codes and safety standards and engage a licensed EV charging station contractor. The residential EV charging station owner is responsible for the cost of the installation, operation, maintenance, repair, insurance, removal, or replacement of the station, as well as any resulting damage to the EV charging station or surrounding area.

(Reference Maryland Statutes, Real Property Code 11-111.4)

Zero Emission Bus Acquisition Requirement

Beginning in 2023, the Maryland Transit Administration (MTA) may only purchase zero emission buses for the state transit bus fleet. If the MTA determines that there are no zero emission buses that meet performance requirements, an alternative fuel bus may be purchased instead. The MTA must develop charging infrastructure to support zero emission buses throughout the state, provide safety and workforce development training for operations and maintenance workforces, and ensure no state government jobs are transferred to a contracting entity as a result of the transition to zero emission transit buses. For more information, including annual legislative reports, see MTA’s Zero Emissions website.

(Reference Maryland Statutes, Transportation Code 7-406)

Zero Emission Vehicle (ZEV) Financial Impact Analysis

The Maryland Energy Administration and the Maryland Department of Transportation must submit a report to the legislature that examines the fiscal impact of ZEVs registered in Maryland and a survey of measures enacted by other states or jurisdictions to minimize the impacts of ZEVs on state transportation funds.

(Reference Maryland Statutes, State Government Code 9-2009)

Electrical Distribution Emissions Reductions

The Maryland Public Service Commission (PSC) must submit a report on the status of the electric distribution system, including electric vehicles (EVs). The report must evaluate progress towards, among other things, the following goals:

  • Reduce greenhouse gas emissions from electric distribution, including EVs;
  • Prioritize vulnerable and underserved communities in the development of distributed energy resources and EV charging infrastructure; and,
  • Increase the use of distributed energy resources, including EVs.

The PSC must publish the report on an annual basis. For more information, see the Distribution System Planning Interim Report, published December 1, 2022.

(Reference Maryland Statutes, Environmental Code 2-1305)

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Grant Authorization

Beginning in fiscal year 2024, Maryland Energy Administration (MEA) is authorized to administer a MHD ZEV grant program. Grants must cover up to 20% of the cost to purchase MHD ZEVs, electric vehicle charging stations, or MHD non-road equipment. Eligible vehicles must have a gross vehicle weight rating above 8,500 pounds and be powered exclusively by electricity or hydrogen.

For funding updates, see the MEA Transportation Incentives website.

(Reference House Bill 1391, 2022)

Zero Emission School Bus Acquisition Requirements

Beginning in fiscal year 2025, county Boards of Education may only enter vehicle acquisition contracts for zero emission school buses. County Boards of Education are not required to purchase zero emission school buses if the:

  • Buses have an in-service date prior to July 1, 2024;
  • Buses do not meet performance requirements; or,
  • County Board of Education is unable to obtain funding sufficient to cover the incremental cost of the zero emission school bus.

The Maryland Department of Environment must work with county Boards of Education to develop electric vehicle charging infrastructure to support the acquisition of zero emission school buses.

(Reference Maryland Statutes, Environmental Code 2-1505)

Electric School Bus Pilot Program

The Maryland Public Service Commission (PSC) must develop and administer an electric school bus pilot program that investor-owned utilities (IOUs) may apply to implement in their service territories. To be eligible, IOU pilot programs must:

  • Begin on or before October 1, 2024;
  • Deploy a minimum of 25 electric school buses;
  • Provide rebates to participating schools for the purchase of electric school buses;
  • Incorporate vehicle-to-grid technology;
  • Provide charging equipment for the electric school buses; and,
  • Train bus drivers on how to use the electric vehicle charging stations.

Participating IOUs must report on the status of their pilot program on an annual basis.

(Reference Maryland Statutes, Public Utilities Code 7-217)

Light-Duty Zero Emission Vehicle (ZEV) Acquisition Requirements

100% of passenger vehicles in the state fleet must be ZEVs by 2031 and other light-duty vehicles must be ZEVs by 2036. To support the state fleet transition to ZEVs, state agencies must coordinate vehicle acquisition efforts to increase the share of ZEVs in the state fleet. Passenger vehicle ZEV acquisitions must increase according to the following schedule:

Fiscal Year (FY) Acquisition Requirement
2023 through 2025 25% of vehicles must be ZEVs
2026 through 2027 50% of vehicles must be ZEVs
2028 and later 100% of vehicles must be ZEVs

Other light-duty ZEV acquisitions must increase according to the following schedule:

FY Acquisition Requirement
2028 through 2030 25% of vehicles must be ZEVs
2031 through 2032 50% of vehicles must be ZEVs
2033 and later 100% of vehicles must be ZEVs

ZEVs include vehicles powered exclusively by electricity or hydrogen. If state agencies are unable to acquire ZEVs, a plug-in hybrid electric vehicle may be purchased instead. Paratransit vehicles are exempt from these acquisition requirements. The Maryland Department of General Services must deploy adequate charging and refueling infrastructure to support ZEV adoption and report vehicle acquisition progress to the General Assembly on an annual basis.

(Reference Maryland Statutes State Finance and Procurement Code 14-418)

Electric Vehicle (EV) Parking Space Regulation

Beginning October 1, 2022, individuals may not stop, stand, or park a vehicle in a designated EV charging space unless it is an EV that is actively charging. Violators may be subject to a fine of $100.

EV charging spaces must have signage that indicates the charging space is only for EV charging, day or time restrictions, states maximum violation fine, and is consistent with design and placement specifications in the Manual on Uniform Traffic Control Devices for Streets and Highways. EV charging spaces count toward the total minimum parking space requirements for zoning and parking laws.

(Reference Maryland Statutes, Transportation Code 11-145.1 and 21-1003.2)

Mid-Atlantic Region Electric Vehicle (EV) Support

Maryland joined Virginia, West Virginia, and the District of Columbia (Participating States) in creating the Mid-Atlantic Electrification Partnership (MAEP) to support the deployment of EVs and EV charging stations throughout the region. Participating States commit to creating a regional network of EV charging stations that will make it possible to seamlessly operate light-, medium-, and heavy-duty EVs across transportation corridors and in low-income communities. For more information, see the MAEP website.

Multi-Unit Dwelling (MUD) Electric Vehicle (EV) Charging Station Deployment Support

The Maryland Energy Administration must study issues related to the installation of EV parking spaces at MUDs and submit a report of findings to the Governor and the General Assembly by December 1, 2023.

(Reference House Bill 830, 2023)

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement

By December 1, 2023, Maryland must adopt the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations, requiring manufacturers to meet California ZEV production and sales requirements. Beginning with model year 2027, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in Maryland. ZEVs include all-electric and fuel cell electric vehicles.

(Reference House Bill 230, 2023, Maryland Statutes, State Government Code 9-2011, and Maryland Statutes, Environment Code 2-1103.1)

Utility Electric Vehicle (EV) Charging Station Deployment Authorization and Requirements

Investor-owned utilities (IOUs) participating in the Maryland Public Service Commission (PSC) EV Pilot Program may install public Level 2 EV charging stations on local, municipal, or state government property. Beginning October 1, 2023, IOUs that participate in the PSC EV Pilot Program may install Level 2 EV charging stations at multi-unit dwellings in underserved communities. Additionally, IOUs must maintain EV charging station uptime in accordance with the National Electric Vehicle Infrastructure Formula Program requirements or standards and requirements set by the PSC.

(Reference House Bill 834, 2023, Public Service Commission Order 88997 – Case No. 9478, and Maryland Statutes Public Utilities Code 7-901 through 7-905)