Recent State Updates
Listed below are new and recently updated state laws, incentives, and regulations related to alternative fuels and advanced vehicles.
California
County sealers may inspect the functionality of EV chargers operated by public agencies within their jurisdiction. If an EV charger is inoperable, the sealer must mark the EV charger with a tag that says “out of order”. EV chargers must be repaired or corrected within 30 days and are subject to retesting and verification by the county sealer. EV chargers owned by electric utilities are also subject to inspection.
An annual registration fee may be applied for the cost of inspecting and testing an EV charger. Additional requirements and exceptions may apply.
(Reference Assembly Bill 2037, 2024)
Local agencies must develop a checklist for completing a permit application to install an EV charger in the public right-of-way. Cities with a population of 250,000 or more residents must develop a checklist by January 1, 2027, and cities with a population of fewer than 250,000 residents must develop a checklist by January 1, 2029. Additional requirements apply.
(Reference Assembly Bill 2427, 2024)
The State Energy Resources Conservation and Development Commission may require any EV to have bidirectional charging capabilities if there is a sufficiently compelling beneficial use case to the EV operator and electrical grid.
(Reference Senate Bill 59, 2024)
Cities and counties may establish a capital investment incentive program for qualified manufacturing facilities that manufacture fuels or components used in AFVs and related infrastructure. Each county or city that elects to establish a capital investment incentive program must notify the Governor’s Office of Business and Economic Development. Additional requirements apply.
(Reference Assembly Bill 2922, 2024)
The California Energy Commission (CEC) offers grants to projects that address VGI knowledge gaps; high costs of vehicle to everything or bidirectional charging equipment, as compared to unidirectional charging; and the lack of access to cost-effective, accurate, and flexible submetering solutions. The maximum grant allowed per project is $3,000,000. Eligible applicants include all public and private entities. Local publicly owned electric utilities are not eligible. Additional terms and conditions apply. For more information, see the CEC Enabling Electric Vehicles as Distributed Energy Resources website.
The California Energy Commission (CEC) offers grants through the Clean Transportation Program for the installation of Level 2 EV chargers at MFH units. Eligible applicants include all public and private entities. Investor-owned utilities are not eligible. Projects must install a minimum of 120 charging ports. A minimum of 50% of a project’s EV charging ports must be installed within underserved or low-income communities. Additional terms and conditions apply. For more information, see the CEC Reliable, Equitable, and Accessible Charging for MFH 3.0 website.
New warehouses must designate at least 50% of all passenger vehicle parking spaces as EV make-ready and at least 10% of all passenger vehicle parking spaces must be installed with EV chargers. Additionally, new warehouses must be capable of charging medium- and heavy-duty EVs.
(Reference Assembly Bill 98, 2024)
District of Columbia
A permit is required to test driverless AVs on roadways in the District of Columbia. Anyone testing driverless AVs with a testing permit is required to provide notice to the District Department of Transportation.
(Reference District of Columbia Code 25-420)
The District of Columbia Department of Transportation (DDOT) and Department of Energy and Environment (DOEE) are authorized to use federal infrastructure funding to distribute grants for EV charging infrastructure expansion. Additional data sharing and contracting requirements apply for permitholders installing more than five EV charging ports.
(Reference Council Bill 250106, 2024 and District of Columbia Code 50-921.04)
Beginning in 2026, the District of Columbia Department of Energy and Environment (DOEE) must publish an EV infrastructure deployment and management plan every three years. The plan must include:
- Total EV registrations in the District of Columbia;
- Progress toward EV charging infrastructure deployment equal to at least 5% of a ten-year forecast of EV registrations;
- Characterization of the speed and capacity of available EV charging infrastructure;
- Assessment of electric grid capacity and electric utility timelines to support EV charger deployment;
- Identification of income-based EV equity focus areas; and
- Legislation and regulatory recommendations.
By January 2026, DOEE must also establish an EV charging infrastructure incentive program.
(Reference Council Bill 250106, 2024 and District of Columbia Code 8-151.09f)
New construction of, or substantial improvements to, single family homes with off-street parking must include at least one EV-ready parking space capable of providing Level 1 charging. An EV-installed parking space is defined as a parking space with an installed EV charger, and an EV-ready parking space is defined as a parking space with sufficient electrical panel capacity and pre-wiring to support future EV chargers.
Beginning January 1, 2027, new construction of, or substantial improvements to, commercial buildings or multi-family housing (MFH) with six or more parking spaces must install EV chargers and pre-wiring capable of supporting EV chargers at the following number of parking spaces:
| Building Type | Required Share of EV-Installed Parking Spaces | Required Share of EV-Ready Parking Spaces |
|---|---|---|
| Commercial | 15% | 25% |
| MFH | No requirement | 25% |
Additional requirements for MFH apply beginning in 2031 and 2034.
(Reference Council Bill 250106, 2024 and District of Columbia Code 6-1451.01-03a)
Condominium associations may not prohibit or restrict the installation or use of EV chargers in a homeowner’s designated parking space. Condominium associations may put reasonable restrictions on EV chargers, but the policies may not significantly increase the cost of the EV charger or prohibit installation. Homeowners must comply with applicable health and safety codes and architectural standards and engage a licensed installation contractor. The homeowner is responsible for the cost of the installation, operation, maintenance, repair, removal, or replacement of the charger in their parking space, as well as any resulting damage to the EV charger or surrounding area. Additional requirements may apply.
(Reference Council Bill 250106, 2024 and District of Columbia Code 6-1451.01-03a)
New or substantially modified retail service stations projected to sell more than one million gallons of gasoline per year must install at least two direct current (DC) fast charging ports with a power output of at least 150 kilowatts for each gasoline pump.
(Reference Council Bill 250106, 2024 and District of Columbia Code 36-302.02)
Illinois
Through December 31, 2028, a sales and use tax of 6.25% applies to 90% of the proceeds from the sale of fuel blends containing 15% ethanol (E15) and to 80% of the proceeds from the sale of fuel blends containing between 20% and 50% ethanol. This tax does not apply to the proceeds from the sale of fuel blends containing between 51% and 83% ethanol (E85). If at any time the sales and use tax is 1.25%, the tax on ethanol fuel blends below 51% ethanol will apply to 100% of the proceeds of sales made after December 31, 2028. Taxes will apply to 100% of the proceeds from the sale of all ethanol fuel blends made after December 31, 2028.
Through November 30, 2030, sales and use taxes do not apply to diesel fuel blends containing at least 10% biodiesel (B10) or 10% renewable diesel from December 1 of each calendar year through March 31 of the following calendar year. From April 1, 2024, through November 30, 2030, diesel fuel blends are not subject to sales and use taxes if they adhere to the following blend amounts:
| Timeframe | Biofuel Blend Requirement |
|---|---|
| April 1, 2024, through November 30, 2024 | At least 13% biodiesel or renewable diesel |
| April 1, 2025, through November 30, 2025 | At least 16% biodiesel or renewable diesel |
| April 1, 2026, through November 30, 2030 | At least 19% biodiesel or renewable diesel |
(Reference 35 Illinois Compiled Statues 120/2-10, 105/3-5.1, 105/3-10, and 105/3-44)
Government agencies may own, construct, improve, and operate new or existing clean energy infrastructure projects, may purchase real estate or property rights to be used for clean energy infrastructure projects, and may charge for the public use of clean energy infrastructure. Eligible projects include, but are not limited to, electric vehicle (EV) chargers, EV repairs, and battery storage. The Illinois Finance Authority (IFA) may offer loans to these agencies to finance the eligible projects. Additional requirements may apply. For more information, see the IFA Climate Bank Website.
(Reference Senate Bill 3597, 2024)
The Illinois Department of Natural Resources (IDNR) may install at least one EV charger at state parks and other property owned by IDNR where adequate electrical service reasonably permits. IDNR may charge user fees for EV charging at these locations. IDNR may also adopt and publish specifications for EV charger infrastructure and fee collection at state parks and other property owned by the Department.
(Reference 20 Illinois Compiled Statutes 805/805-580 and House Bill 5511, 2024)
New Jersey
The New Jersey Board of Public Utilities’ (NJBPU) MHD EV Charging Program offers grants for the purchase and installation of eligible direct current (DC) fast chargers for community and private fleet charging. Grants of up to $25,000 are available per DC fast charger, with a maximum award of $225,000 for community charging and $175,000 for private fleet charging. Community charging programs must be located or operated within overburdened communities to qualify. This program is funded by Regional Greenhouse Gas Initiative (RGGI) proceeds. For more information, including eligibility requirements, see the NJBPU EV Incentive Program website.
A school district may enter into lease purchase agreements for electric school buses and related charging equipment that last the service life of the vehicle. School districts may purchase leased school buses and related equipment at any point during the lease or when the lease ends, with credit towards the overall purchase price.
(Reference New Jersey Statutes 18A:18A-42 and 18A:20-4.2 and Assembly Bill 1677, 2024)
The New Jersey Department of Environmental Protection (NJDEP) offers grants to school districts and school bus contractors for the purchase of electric school buses and charging infrastructure. Grants awards vary based on charger type and whether the applicant operates in an overburdened community. Grants are available in the following amounts:
| Technology | Maximum Grant Amount | Overburdened School District Maximum Grant Amount |
|---|---|---|
| Electric School Bus + Level 2 Charger | $270,000 | $300,000 |
| Electric School Bus + Direct Current Fast Charger | $290,000 | $320,000 |
| Electric School Bus + Bi-Directional Charging Option | $320,000 | $350,000 |
School bus contractors must apply in conjunction with a specified school or school district. For more information, including eligibility requirements, program evaluation criteria, and bi-directional charging details, see the NJDEP Electric School Bus Grant Program website and the Electric School Bus Grant Solicitation.
Ohio
The Ohio Environmental Protection Agency (Ohio EPA) provides Diesel Emissions Reduction Grants (DERG) for projects that reduce emissions by retiring and replacing diesel public transit buses. Eligible projects must achieve a minimum funding match of 20% from non-state and non-federal sources. Funding for this program is provided by the U.S. Department of Transportation Federal Highway Administration’s Congestion Mitigation and Air Quality Improvement (CMAQ) Program. For more information, including application periods, see the Ohio EPA DERG website.
(Reference Ohio Revised Code 122.861)
NGVs and EVs may exceed the gross vehicle weight restrictions by 2,000 pounds, except on the interstate system or a highway, road, or bridge that is subject to maximum weight restrictions.
(Reference Ohio Revised Code 5577.044)
The Ohio Office of the Governor established DriveOhio to test AVs on state highways and other public roads. The purpose of the program is to connect municipalities with industry, education, and community partners to advance smart mobility solutions. The Ohio Department of Transportation will appoint an executive director of DriveOhio to oversee activities and administration. The executive director may establish a DriveOhio Advisory Board to receive advice and recommendations. The executive director must submit an annual report to the governor.
All AVs tested in Ohio must have a designated operator responsible for the safe operation of the vehicle while in use and compliance with all traffic laws and regulations, among other requirements. The governor may pause the testing of AVs in Ohio if there is evidence that the technology is not safe.
An AV is defined as a vehicle equipped with technology that is capable of performing all of the real-time operational and tactical functions required to operate a vehicle. To test AVs, each company must register with DriveOhio and provide required information, including a summary report outlining its approach for the safe testing of its autonomous system.
(Reference Executive Order 2019-26D, 2019, and 2018-04K, 2018)
EV owners must pay an annual fee in addition to other registration fees. The fee is $200 for EVs, $150 for plug-in hybrid electric vehicles, and $100 for hybrid electric vehicles.
(Reference Ohio Revised Code 4501.01 and 4503.10)
Pennsylvania
The Pennsylvania Department of Environmental Protection (DEP) AFV Program offers rebates to assist eligible residents with the cost of the purchase or lease of new or qualifying pre-owned AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), compressed natural gas (CNG) vehicles, electric motorcycles, and propane vehicles. Applicants must meet income eligibility requirements for the program and eligible AFV purchase price not exceed $45,000. Rebates are available in the following amounts:
| Vehicle Type | Rebate Amount |
|---|---|
| EV (new or pre-owned) | $3,000 |
| PHEV (new or pre-owned) | $1,500 |
| CNG, Propane, and Electric Motorcycle (new or pre-owned) | $500 |
An additional rebate of $1,000 is available for all applicants that meet the low-income requirement, as defined by the U.S. Department of Health and Human Services. Applications much be received within six months of vehicle purchase. Rebates are awarded on a first-come, first-served basis. For more information, including forms and detailed requirements and restrictions, see the DEP AFV Rebates website.
(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)
The Small Business Advantage Grant Program provides matching grants of up to 80% of project costs, up to $12,000, to enable a Pennsylvania small business to adopt or acquire energy-efficient or pollution prevention processes or equipment. Pennsylvania trucking companies and independent truckers may use the funding to purchase U.S. Environmental Protection Agency SmartWay verified anti-idling technologies. Projects may not begin until applications are approved. Grants are available on a first-come, first-served basis. For more information, see the Small Business Advantage Grant Program website.
The AFIG Program provides financial assistance for innovative, advanced fuel and vehicle technology projects. Projects that result in product commercialization and the expansion of Pennsylvania companies are favored in the selection process. Eligible applicants include school districts, municipal authorities, political subdivisions, non-profits, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth. Projects must support:
- Incremental cost expenses relative to retrofitting vehicles to operate on alternative fuels;
- Incremental cost expenses to purchase alternative fuel vehicles;
- The cost to purchase and install the necessary fleet- or home-refueling equipment for alternative fuel vehicles; or,
- The cost to perform research, training, development and demonstration of new applications or next-phase technology related to alternative fuel vehicles.
(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)
Beginning January 1, 2025, in addition to standard vehicle registration fees, EV owners must pay an annual fee of $200, and plug-in hybrid electric vehicle owners must pay an annual fee of $50.
(Reference Senate Bill 656, 2024)
Beginning January 1, 2025, EVs that are subject to the annual EV registration fee are exempt from the Alternative Fuels Tax.
(Reference Senate Bill 656, 2024)
Texas
The Texas Commission on Environmental Quality (TCEQ) administers the Texas Hydrogen Infrastructure, Vehicle, and Equipment (THIVE) program as part of the Texas Emissions Reduction Plan (TERP). The THIVE program provides grants to individuals, state and local governments, and private entities for the repower or replacement of eligible vehicles with FCEVs. Eligible projects include heavy-duty on-road and non-road vehicles and fueling infrastructure. For more information, including application periods, see the TCEQ TERP website.
Utah
The Utah Department of Environmental Quality (DEQ) offers rebates of up to 50% of the cost to purchase and install Level 2 and direct current fast charging (DCFC) stations. Utah-based businesses and non-profit organizations are eligible for a maximum rebate of $75,000 each. Government entities are also eligible to apply. For more information, see the DEQ Workplace EV Charging Funding Assistance Program website.
Washington
The Washington EV Instant Rebate Program offers rebates to residents for the purchase or lease of a qualified new or pre-owned EV. New EVs are eligible for a rebate of up to $9,000, and pre-owned EVs are eligible for a rebate of up to $2,500. Applicants may receive one rebate, and no more than three rebates are allowed per residential address. Only applicants who have a household income at or below 300% of the current federal poverty level or who are enrolled in an eligible income qualified program are eligible for the rebate. For more information, including program eligibility and requirements, see the Washington State Department of Commerce EV Instant Rebates website.