Expired, Repealed, and Archived Virginia Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Transit Emissions Reduction Grants

Archived: 02/21/2023

The Virginia Department of Rail and Public Transportation’s (DRPT) Making Efficient + Responsible Investments in Transit (MERIT) program provides funding for capital improvement projects, including the purchase or lease of new electric, hybrid electric, or propane vehicles. Funding amounts vary based on the project type.

In addition, as part of the MERIT program, the Clean Transportation Voucher Program (Program) offers grants of up to 100% of the incremental cost for transit agencies to replace model year 2009 or older Class 7 and Class 8 diesel transit buses with all-electric buses and up to 100% of the purchase cost of associated charging infrastructure. Awards are capped at $300,000 per electric bus, including charging infrastructure, and $15,000 per propane bus. The Program is funded by Virginia’s portion of the Volkswagen Environmental Mitigation Trust.

For more information, including program guidance and the application, see the DRPT MERIT website and the Virginia Department of Environmental Quality Volkswagen Settlement Agreements website.

Regional Transportation and Climate Initiative (TCI)

Archived: 11/19/2021

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

State Energy Plan

Repealed: 10/01/2021

Virginia Energy is responsible for creating the Virginia Energy Plan (Plan) to assess the commonwealth’s primary energy sources and recommends actions to meet state energy goals. The Plan must include policies to promote alternative fuel use, transportation electrification, efficient driving techniques, and reducing vehicle miles traveled. The Plan must assess statewide electric vehicle (EV) charging infrastructure and consider the impact of statewide policies, EV market projections, and statewide EV registration data to support the state’s 2045 net-zero carbon target in the transportation sector. Virginia Energy must submit the Plan to the governor, the State Corporation Commission, and the General Assembly by October 1 of each year following the election of a new governor. For more information, see the 2018 Virginia Energy Plan, 2022 Virginia Energy Plan, and the Virginia Energy Energy Efficiency website.

(Reference Virginia Code 67-203)

Natural Gas Vehicle (NGV) Technician Certification

Expired: 07/01/2020

The Virginia Department of Professional and Occupational Regulation (DPOR) administers a program to certify NGV mechanics and technicians. For application and certification information, see the DPOR Natural Gas Automobile Mechanics and Technicians Advisory Board website. (Reference Virginia Code 54.1-2355 through 54.1-2358 and Virginia Administrative Code 18-120-50)

Authorization for Plug-In Electric Vehicle Charging Rate Incentives

Archived: 03/01/2018

The Virginia State Corporation Commission (SCC) directs public utilities to evaluate time-differentiated rates and other incentives to encourage off-peak all-electric (EV) and plug-in hybrid electric vehicle charging. The SCC may authorize public utilities to conduct pilot programs to determine the feasibility and implications of offering off-peak rates and other incentives. Pilot programs may include voluntary load control options, rate structures with financial incentives, rebates, or other incentives that offset the cost of purchasing or installing electric vehicle supply equipment for users who elect off-peak rate structures. An electric utility that participates in an approved pilot program may be entitled to recover annually the costs of its participation in any pilot program conducted on or after January 1, 2011. (Reference Virginia Code 56-232.2:1)

Biodiesel and Green Diesel Fuel Use Requirement

Repealed: 07/01/2017

Commonwealth agencies and institutions must procure only diesel fuel containing at least 2% biodiesel (B2) or green diesel fuel for use in on-road diesel internal combustion engines; this requirement does not apply if supply is not readily available or the cost of the fuel exceeds the cost of conventional diesel by 5% or more. The Virginia Department of General Services must establish conditions under which commonwealth agencies and institutions may procure these blended fuels, taking into consideration the availability of the fuel and cost of biodiesel compared to diesel fuel. (Reference Executive Order 19, 2010, and Virginia Code 45.1-394)

Natural Gas Vehicle (NGV) Production Support and Procurement

Archived: 04/01/2016

In 2012, Virginia joined Arkansas, Colorado, Kentucky, Louisiana, Maine, Mississippi, New Mexico, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, West Virginia, and Wyoming in signing a memorandum of understanding (MOU) to stimulate the production and demand for original equipment manufacturer (OEM) NGVs. The MOU aims to encourage OEMs to offer functional and affordable light- and medium-duty NGVs, aggregate state vehicle procurement through a joint request for proposals (RFP), boost private investment in natural gas fueling infrastructure, and encourage greater coordination between state and local agencies. In 2012, National Association of State Procurement Officials coordinated the solicitation of a joint RFP, which the Oklahoma Department of Central Services (DCS) issued on behalf of the MOU signatories and additional states. As a result, state fleets have access to more affordable NGVs through dealerships now included in state vehicle purchasing bids. For more information, including awarded vehicles by state and vehicle purchase information for state fleets, see the DCS Statewide Contract for NGVs solicitation page.

Clean Energy Manufacturing Grants

Repealed: 04/30/2015

The Clean Energy Manufacturing Incentive Grant Program provides financial incentives to clean energy manufacturers, including biofuel producers. A producer is eligible for grant if it commences or expands operations in Virginia on or after July 1, 2011. Producers must make a capital investment greater than $50 million and create at least 200 full-time jobs that pay at least the prevailing wage. For more information, see the Virginia Department of Mines, Minerals and Energy website.

Alternative Fuel Job Creation Tax Credit

Expired: 12/31/2014

Businesses involved in alternative fuel vehicle (AFV) and component manufacturing, alternative fueling equipment component manufacturing, AFV conversions, and advanced biofuels production are eligible for a job creation tax credit of up to $700 per full-time employee. The credit is allowed in the taxable year in which the job is created and in each of the two succeeding years in which the job is continued. Qualified AFVs include vehicles that operate using natural gas, propane, hydrogen, electricity, or advanced biofuels. This credit is effective for taxable years through December 31, 2014. For more information, see the Virginia Department of Taxation website. (Reference Virginia Code 58.1-439.1)

Alternative Fuels Grants and Loans

Repealed: 10/23/2014

The following was repealed as a result of Virginia Department of Transportation action: The Alternative Fuels Revolving Fund is used to distribute loans and grants to municipal, county, and commonwealth government agencies to support alternative fuel vehicle (AFV) programs; pay for AFV maintenance, operation, evaluation, or testing; pay for vehicle conversions; or improve alternative fuel infrastructure. Eligible alternative fuels include electricity, hydrogen, and natural gas. Projects with a funding match are given priority in the evaluation process. (Reference Virginia Code 33.1-223.4 and 33.1-223.7)

Alternative Fuel Research and Development Funding

Archived: 02/01/2014

The Virginia Universities Clean Energy Development and Economic Stimulus Foundation will identify, obtain, disburse, and administer funding for alternative fuel and related technology research, development, and commercialization. The funds may be distributed as grants, loans, or through other methods. (Reference Virginia Code 23-300 through 23-303)

Alternative Fuel Public-Private Partnerships (PPPs)

Archived: 03/01/2013

The Virginia Offices of the Secretary of Administration and the Secretary of Natural Resources released a PPP solicitation outlining their interest in forming partnerships with and among alternative fuel providers, infrastructure developers, vehicle manufacturers, and other alternative fuel industry stakeholders to expand fueling infrastructure and to support alternative fuel use in the commonwealth fleet. By May 2012, the Virginia Department of General Services and the Department of Mines, Minerals, and Energy was required to make a recommendation on whether the commonwealth should establish more formal PPP agreements to accomplish the overall goal of transitioning commonwealth vehicles to alternative fuels. As a result of that solicitation, the commonwealth entered into contracts with two companies to provide compressed natural gas (CNG) and propane fuel, fueling infrastructure, vehicle conversions, maintenance and training. The governor also issued an Executive Directive to implement a plan for using the contracts to transition the commonwealth’s vehicles from gasoline to CNG and propane. (Reference Executive Directive 5, 2012, and Executive Order 36, 2011)

Alternative Fuel and Fuel-Efficient Vehicle Acquisition Plan

Archived: 03/01/2013

Virginia Department of General Services (DGS) policies and procedures must include guidelines for the purchase of fuel-efficient, low emissions, commonwealth-owned vehicles, as well as guidelines for leasing vehicles that give a preference to compact, fuel-efficient, and low emissions vehicles. By January 1, 2012, DGS was required to establish a plan to replace commonwealth-owned or operated vehicles with vehicles that operate using natural gas, electricity, or other alternative fuels, to the greatest extent reasonable, considering available infrastructure, vehicle location and use, capital and operating costs, and potential for fuel savings. All commonwealth agencies and institutions must cooperate with DGS in developing and implementing the plan. (Reference Virginia Code 2.2-1176 and Executive Order 19, 2010)

Biodiesel Fuel Use Requirement

Archived: 01/01/2008

State agencies are requested to implement the use of biodiesel fuels, where feasible, in fleet vehicles owned or operated by the agency. During the 2007 Regular Session of the General Assembly, the Secretary of Administration submitted House Document No. 18 to the Division of Legislative Automated Systems, which included an executive summary and report of each agency's progress related to biodiesel use. (Reference House Joint Resolution 148, 2006)

Alternative Fuel Vehicle (AFV) and Refueling Infrastructure Tax Credit

Expired: 03/01/2006

The Commonwealth of Virginia provides individuals, private entities, and corporations a state tax credit equal to 10% of the amount allowed as a federal tax deduction for clean-fuel vehicles and related refueling property (under Section 179A of the Internal Revenue Code). The tax credit was amended in 1994 to specify that it is for the purchase of clean fuel vehicles that are principally garaged in Virginia and for certain refueling property placed in service in Virginia. (Reference Virginia Code 58.1-438.1)