New York Laws and Incentives
Listed below are the summaries of all current New York 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:
Plug-In Electric Vehicle (PEV) Rebate Program
The New York State Energy Research and Development Authority (NYSERDA) provides rebates of up to $2,000 for the purchase or lease of a new eligible PEV. An eligible vehicle must:
- Be a four-wheeled motor vehicle manufactured for use on public streets, roads, and highways,
- Have a gross vehicle weight rating of not more than 8,500 pounds,
- Have a maximum speed of at least 55 miles per hour, and
- Be propelled at least in part by an electric motor and associated power electronics that draws electricity from a hydrogen fuel cell or from a battery that has a battery capacity of at least four kilowatt-hours, and is capable of being charged from an external source of electricity.
Rebate amounts vary based on a vehicle's all-electric range and manufacturer's suggested retail price. For more information, see NYSERDA's Drive Clean Rebate website.
Electric Vehicle Supply Equipment (EVSE) Rebate
The New York State Energy Research and Development Authority's (NYSERDA) Charge Ready NY program offers rebates for public and private entities toward the purchase and installation of Level 2 EVSE at public parking facilities, workplaces, and multi-unit dwellings. Rebates are available for $4,000 per port. Additional terms and conditions apply. For more information, including application guidelines, see the NYSERDA Charge Ready NY website.
Heavy-Duty Alternative Fuel and Advanced Vehicle Purchase Vouchers
The New York State Energy Research and Development Authority (NYSERDA) provides incentives for alternative fuel trucks, alternative fuel buses, and diesel emission controls. Incentives are released on a staggered schedule and are distributed based on the following criteria:
|Technology Type||Garage Location||Eligible Entities||Incentive Amount|
|Class 3-8 Battery Electric Trucks & Buses||Statewide nonattainment or maintenance area||Public, private, and non-profit fleets||80% of the incremental cost, up to $150,000 per vehicle|
|Class 2-8 Battery Electric Trucks & Buses||New York City||Private and non-profit fleets||80% of the incremental cost, up to $60,000 per vehicle|
|Class 3-8 Compressed Natural Gas Trucks & Buses||New York City||Private and non-profit fleets||80% of the incremental cost, up to $50,000 per vehicle|
|Class 3-8 Hybrid Electric Trucks & Buses||New York City||Private and non-profit fleets||80% of the incremental cost, up to $40,000 per vehicle|
|Diesel Emission Reduction Equipment||New York City||Private and non-profit fleets||80% of the cost of purchase and installation, up to $500,000 per recipient|
Eligible vehicles must be in operation 70% of the time and be garaged in the program area. Funding for this program is not currently available (verified November 2018). For information about voucher availability and vehicle eligibility, see the NYSERDA New York Truck Voucher Incentive Program website.
Alternative Fueling Infrastructure Tax Credit
An income tax credit is available for 50% of the cost of alternative fueling infrastructure, up to $5,000. Qualifying infrastructure includes electric vehicle supply equipment and equipment to dispense fuel that is 85% or more natural gas, propane, or hydrogen. Unused credits may be carried over into future tax years. The credit expires December 31, 2022. For additional information, including information on how to claim the credit, please see the New York State Department of Taxation and Finance page. (Reference New York Tax Law 187-b)
Biofuel Production Tax Credit
Biofuel producers in New York State may qualify for a tax credit of $0.15 per gallon of pure biodiesel (B100) or denatured ethanol produced. To qualify, the production facility must produce, and make available for sale, at least 40,000 gallons of biofuel per year. The maximum annual credit available is $2.5 million per taxpayer for no more than four consecutive taxable years per production facility. If the taxpayer is in a partnership or is a shareholder of a New York S corporation, the maximum credit amount is applied at the entity level; the aggregate credit allowed to all partners or shareholders may not exceed $2.5 million. Additional requirements may apply. This credit expires December 31, 2019. (Reference New York Tax Law 28*2 and 187-c)
Clean Truck Replacement Program
The Port Authority of New York & New Jersey’s Regional Truck Replacement Program (Program) provides funding for up to 50% of the cost to replace a heavily emitting truck, up to $25,000. Eligible recipients include independent owner operators and licensed motor carriers servicing the port with drayage trucks equipped with Model Year 1994 to 2006 engines. Funding is limited to two replacement trucks per eligible applicant. Additional rules and conditions apply. For more information, see the Program website.
Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemption
Any motor vehicle equipped with qualified idle reduction technology may exceed the state's vehicle weight limits by up to 400 pounds (lbs.) to compensate for the additional weight of the idle reduction technology. The vehicle's operator must maintain written certification of the device's weight and proof that it is fully functional and must provide this proof to a law enforcement officer upon request. Any NGV may exceed the limits by up to 2,000 lbs. (Reference New York Vehicle and Traffic Law 385)
Alternative Fuel Vehicle Research and Development Funding
The New York State Energy Research and Development Authority's (NYSERDA) Clean Transportation Program provides funding for projects that enhance mobility, improve efficiency, reduce congestion, and diversity transportation methods and fuels through research and development of advanced technologies. NYSERDA offers annual solicitations that support new product development and demonstration as well as research on new transportation policies and strategies. NYSERDA also supports projects that demonstrate the benefits of commercially available products that are underutilized in New York State. Once developed, NYSERDA provides incentives to accelerate the market introduction of emerging technologies through its Alternative Fuel Vehicle Program. For more information and funding opportunities, see the NYSERDA Clean Transportation Program website.
Zero Emission Vehicle (ZEV) and Fueling Infrastructure Rebates for Municipalities
The New York State Department of Environmental Conservation's (DEC) Municipal ZEV Rebate Program offers rebates to cities, towns, villages, counties, and New York City boroughs for the purchase or lease of eligible ZEVs and the installation of eligible ZEV fueling infrastructure. To qualify, ZEVs must be purchased or leased on or after May 1, 2018, at a dealership within the state, and leases must be at least 36 months in length. ZEV fueling infrastructure must be installed primarily for public use. Rebate amounts are as follows:
|Maximum Rebate Amount|
|ZEV Purchase or Lease||$5,000 per vehicle (50 miles or greater electric range); $2,500 per vehicle (10 to 50 mile electric range)|
|Electric Vehicle Supply Equipment (EVSE)||$250,000 per facility|
|Hydrogen Fueling Infrastructure||$250,000 per facility|
A single municipality may receive up to 50% of the total available funds towards ZEVs and EVSE, and up to 75% of the total available funds for hydrogen fueling infrastructure. Additional rules and conditions apply. For more information, including eligible projects and application instructions, see the DEC Grant Funding for Municipalities website.
Workplace Electric Vehicle Supply Equipment (EVSE) and Plug-In Electric Vehicle (PEV) Incentives
The New York State Energy Research and Development Authority is offering employers in the greater New York City region $8,000 rebate per dual-connector EVSE installed. Employees of organizations that receive the rebate are eligible for a $500 rebate toward the purchase or lease of a qualified PEV. For more information, see the Charge to Work NY website.
Electric Vehicle Emissions Inspection Exemption
Vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections. For more information, see the New York Vehicle Inspection Program (NYVIP2) website. (Reference New York State Department of Environmental Conservation Regulations Chapter III, Part 217-6)
High Occupancy Vehicle (HOV) Lane Exemption
Through the Clean Pass Program, eligible plug-in electric and hybrid electric vehicles may use the Long Island Expressway HOV lanes, regardless of the number of occupants in the vehicle. Vehicles must display the Clean Pass vehicle sticker, which is available from the New York State Department of Motor Vehicles. This exemption expires September 30, 2019. For a list of eligible vehicles and Clean Pass sticker application instructions, see the Clean Pass Program website.
Plug-in Electric Vehicle (PEV) Toll Discount Program
Vehicles eligible for the New York Clean Pass Program, including PEVs and hybrid electric vehicles, receive a discounted toll rate on all Port Authority of New York & New Jersey (PANYNJ) off-peak hour crossings. Vehicles must register with E-ZPass New York. Drivers of qualified vehicles may also receive a 10% discount on established E-ZPass accounts with proof of registration. This exemption expires September 30, 2019. For more information, including a complete list of eligible vehicles and application instructions, see the PANYNJ E-ZPass and Green Pass Discount Plan websites.
Workplace Electric Vehicle Supply Equipment (EVSE) Rebate - PSEG Long Island
Public Service Enterprise Group (PSEG) Long Island offers rebates of 80% of the invoice price, up to $4,000 per port, for customers toward the purchase of up to ten Level 2 workplace EVSE units. For more information, including application guidelines, see the PSEG Long Island Workplace Charging Rebate website.
Public Electric Vehicle Supply Equipment (EVSE) Rebate - Greater Rochester Clean Cities (GRCC)
GRCC offers rebates of up to $2,000 toward the purchase and installation of public Level 2 EVSE. Eligible applicants include municipal government entities, public school districts, universities, and hospitals. For more information, including application guidelines, see the GRCC Public EV Charging Infrastructure website.
Plug-In Electric Vehicle (PEV) Voluntary Time of Use (TOU) Rate Price Guarantee - Con Edison
Under the voluntary TOU rate, residential customers will pay a reduced price for electricity used during the designated off-peak period. Customers who register a PEV with Con Edison and are participating in the voluntary TOU rate are guaranteed to pay no more than the standard electric rate for one year after registration with Con Edison. For more information, including how to enroll, see the Electric Vehicles & Your Bill website.
Plug-In Electric Vehicle Charging Rate Incentive for Businesses - Con Edison
Con Edison offers an electric rate reduction ranging from 34% to 39% for businesses in New York City and Westchester County that install a publicly accessible direct current (DC) fast charger. To qualify, the charger must have a power output of at least 100 kilowatts. Additional terms apply. The rate reduction is available through April 2025. For more information, including how to apply, see the Con Edison Business Incentive Rate website.
Smart Charging and Time-of-Use Incentives – Con Edison
Eligible plug-in electric vehicle customers can receive up to $500 in incentives annually by installing a connected car device provided by Con Edison that tracks driving and charging habits, and by charging during off-peak hours. For more information, including how to apply, see the SmartCharge New York website.
Laws and Regulations
Plug-In Electric Vehicle (PEV) and Charging Infrastructure Support
The New York Power Authority's (NYPA) EVolve NY program has allocated up to $250 million to support PEVs and address charging infrastructure gaps throughout the state. EVolve NY will implement this funding in phases. The initial phase directs $40 million to fund three initiatives through 2019, including programs for interstate direct current (DC) fast chargers, airport charging hubs, and PEV model communities. For more information, see NYPA's EVolve NY website.
Plug-In Electric Vehicle (PEV) Charging Tariff
Each investor-owned utility selling electricity was required to file a tariff with the New York Public Service Commission (PSC) by April 1, 2018, to allow a customer to purchase electricity solely for the purpose of charging a PEV. The utility must make the tariff available to customers within 60 days of PSC approval. At any time, the utility may make revisions to the tariff based on changing costs or conditions. Each utility providing a PEV charging tariff must report periodically to the PSC on the number of customers who have participated in the tariff, the total amount of electricity sold under the tariff, and any other data required by the PSC. (Reference New York State Public Service Law Section 66-O)
Liquefied Natural Gas (LNG) Facility and Transportation Regulations
The New York State Department of Environmental Conservation (DEC) is responsible for LNG fueling facility siting, construction, and operation. Facility permit application fees range from $100 to $1,000 depending on the facility capacity. Trucks transporting LNG must meet state and federal hazardous material transportation requirements and use routes the New York State Department of Transportation has certified. These regulations do not affect New York City's moratorium on new LNG facilities. For more information, including regulations, permit application, and supporting documentation, see the DEC LNG regulation website. (Reference New York State Department of Environmental Conservation Regulations Chapter V, Part 570)
Zero Emission Vehicle (ZEV) Deployment Support
New York joined California, Connecticut, Maryland, Massachusetts, New Jersey, Oregon, Rhode Island, and Vermont in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle supply equipment (EVSE) and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.
In June 2018, the Task Force published a new ZEV Action Plan for 2018-2021. Building on the 2014 Action Plan, the 2018 Action Plan makes recommendations for states and other key partners in five priority areas:
- Raising consumer awareness and interest in electric vehicle technology;
- Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
- Continuing and improving access to consumer purchase and non-financial incentives;
- Expanding public and private sector fleet adoption; and
- Supporting dealership efforts to increase ZEV sales.
For more information, see the Multi-State ZEV Task Force website.
Autonomous Vehicle (AV) Testing and Operation Authorization
The New York State Department of Motor Vehicles (DMV) may approve demonstrations of AVs on public roads for the purpose of evaluating the potential impacts of AV technology on safety, traffic control, traffic enforcement, emergency services, and other areas the DMV identifies. To be considered, a proposed AV demonstration must meet, at minimum, the following requirements:
- The demonstration application includes a law enforcement interaction plan, which provides information for law enforcement and first responders regarding how to interact with the AV in an emergency or traffic enforcement situation;
- The demonstration takes place under the supervision of the New York State Police and in a manner consistent with their direction;
- A licensed vehicle operator is seated inside the AV while it is being operated on public highways; and
- The AV meets all applicable Federal Motor Vehicle Safety Standards and New York State Motor Vehicle Inspection Standards.
An AV is defined as any vehicle that is equipped with a technology that has the capability to operate the vehicle without the direct control of the driver.
On or before June 1, 2019, the DMV, in partnership with the State Police, must submit a report to the governor and other relevant government officials including information about each of the demonstrations that have been authorized. For more information, including how to apply for a testing and demonstration permit, see the DMV AV Technology website. (Reference Senate Bill 7508-C, 2018)
School Bus Idle Reduction Policy
School bus drivers or drivers of other vehicles that the school district owns, leases, or contracts must turn off the vehicle engine while loading or unloading passengers on school grounds or near a school. Exceptions include idling for mechanical work, to maintain a comfortable temperature in the vehicle, or in emergency evacuations where it is necessary to operate wheelchair lifts. Drivers should also instruct pupils on the necessity to load and unload promptly, park their vehicles diagonally to minimize exhaust from entering another bus or the school, and turn off their vehicle during sporting or other events. School districts must provide personnel with a notice outlining these provisions no later than five days after the start of the school year. These regulations remain effective until June 30, 2019. For more information, see the New York State Education Department website. (Reference New York Education Law 3637)
Clean Truck Port Requirements
Port drayage trucks must meet or exceed Model Year 2007 engine federal emissions standards to access the Port Authority of New York & New Jersey (PANYNJ) marine terminals. Drayage trucks operating on liquefied or compressed natural gas, electricity, or hybrid electric technology are exempt from these requirements. For purposes of this rule, drayage trucks are defined as on-road vehicles with a gross vehicle weight rating of 33,001 pounds or greater and intended to load, unload, or transport cargo from PANYNJ terminals. Additional rules apply. For more information, see the PANYNJ website.
Fuel Exclusivity Contract Regulation
Motor fuel franchise dealers may obtain alternative fuels from a supplier other than a franchise distributor. Any franchise provision that prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, or compressed natural gas from a firm or individual other than the distributor is null and void as it pertains to that particular alternative fuel if the distributor does not supply or offer to supply the dealer with the alternative fuel. Distributors who violate the law by entering into exclusivity contracts will be subject to a $1,000 fine. If the distributor does offer alternative fuels, they may require the station to use their brands. (Reference New York General Business Law 199-j)
Electric Corporation Definition
According to the New York Public Service Commission (PSC), plug-in electric vehicle (PEV) charging stations are not defined as electric plants and owners and operators of charging stations are not defined as electric corporations. The PSC does not have jurisdiction over publicly available PEV charging stations, the owners and operators of the stations, or the transactions between the owners and operators of the stations, as long as the owners and operators do not fall within the definition of an electric corporation. (Reference New York State Department of Public Service Case 13-E-0199)
Hybrid Electric Vehicle (HEV) Taxicabs
By February 3, 2019, the New York City Taxi and Limousine Commission (Commission) must approve one or more HEV models for immediate use as a taxicab by taxicab medallion owners. Approved HEV models must meet all requirements of for-hire vehicles. The Commission must also allocate 1,350 clean air taxicab medallions to HEVs. (Reference Senate Bill 7331, 2018, and New York City Administrative Code19-533).
Zero Emission Vehicle (ZEV) Sales Requirements and Low Emission Vehicle (LEV) Standards
Any new light-duty passenger car, light-duty truck, or medium-duty passenger vehicle sold, leased, imported, delivered, purchased, or acquired in New York State must be certified to 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. (Reference New York State Department of Environmental Conservation Regulations Chapter III, Part 218)
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 must meet current applicable California Air Resources Board standards for aftermarket conversions. (Reference New York State Department of Environmental Conservation Regulations Chapter III, Subpart 218)
Vehicle Retrofit Requirements
State agencies and state and regional public authorities must install the best available retrofit technology to reduce air pollutant emissions on all heavy-duty diesel vehicles that they own, operate, or lease on or before December 31, 2019. Heavy-duty diesel vehicles that are retired from use in the state on or before December 31, 2020, may be granted a waiver from this requirement. (Reference Assembly Bill 9508, 2018, and New York State Environmental Conservation Law 19-0323)
Alternative Fuel Vehicle (AFV) Access to Tunnels
An AFV powered by propane or natural gas may only use Port Authority of New York and New Jersey (PANYNJ) tunnels and the lower level of the George Washington Bridge if the vehicle conforms to applicable federal regulations and industry standards, displays required markings to identify its alternative fuel system, and has a fuel capacity that does not exceed 150 pounds. For more information, see the PANYNJ Truckers' Resources website.
Low-Speed Vehicle Definition
A low-speed vehicle is defined as a limited use automobile or truck that has a maximum speed greater than 20 miles per hour (mph) but not more than 25 mph and has a gross vehicle weight rating less than 3,000 pounds. All low-speed vehicles must comply with the safety standards established in Title 49 of the U.S. Code of Federal Regulations, section 571.500. (Reference New York Vehicle and Traffic Law 121-f)
Heavy-Duty Idle Reduction Requirement
Heavy-duty vehicles with a gross vehicle weight rating greater than 8,500 pounds may not idle for more than five consecutive minutes when the vehicle is not in motion. Exceptions apply, including when idling is necessary due to traffic conditions; to maintain temperatures (under regulation) for passenger comfort; to provide auxiliary power or for maintenance purposes; to recharge batteries in hybrid electric vehicles; for electric vehicles; and for emergency service vehicles. (Reference New York State Department of Environmental Conservation Regulations Chapter III, Subpart 217-3)