Recent State Updates
Listed below are new and recently updated state laws, incentives, and regulations related to alternative fuels and advanced vehicles.
California
The El Dorado County Air Quality Management District (EDC AQMD) offers rebates of up to $300 to residents for the purchase of a Level 2 EV charger. For more information, including eligibility requirements, see the EDC AQMD Grants and Incentives website.
The California Pollution Control Financing Authority (CPCFA) offers three pilot loan programs to fleets looking to purchase new or pre-owned MHD ZEVs and associated fueling infrastructure. Additional terms and conditions apply. For more information, including details about each pilot program, see the CPCFA Zero-Emission Heavy-Duty Programs website.
(Reference California Health and Safety Code 44272)
Electric utilities must ensure that all new EV chargers installed in their service territory are able to be used without delays due to utility service failure.
(Reference California Public Utilities Code 933 and Senate Bill 410, 2023)
The California Air Resources Board (CARB) Advanced Technology Demonstration and Pilot Projects Program offers funding for pre-commercial demonstrations and large-scale pilots of on- and off-road ZEVs and zero emission equipment that help California meet its goals to reduce criteria pollutants, greenhouse gas emissions, and petroleum use. Eligible applicants include local air districts, California public entities, and nonprofits. Priority is given to projects located in or serving priority populations. For more information, see the CARB Advanced Technology Demonstration and Pilot Projects website.
The California Air Resources Board (CARB) Clean Mobility in Schools Project (CMIS) offers funding for zero emission shuttles, transit buses, school buses, and infrastructure to public schools, local governments, community-based organizations, amd tribal governments. All projects must be located in or serve priority populations. Additional terms and conditions apply. For more information, see the CARB CMIS website.
The California Air Resources Board (CARB) Sustainable Transportation Equity Project (STEP) offers funding for zero emission buses and infrastructure. Eligible applicants include community-based organizations, local governments, and tribal governments that serve priority populations throughout California. Additional terms and conditions apply. For more information, see the CARB STEP website.
The California Energy Commission (CEC) offers funding of up to $10 million for projects that provide publicly-accessible hydrogen fueling stations. Projects must have four or more hydrogen refueling stations that primarily serve light-duty fuel cell electric vehicles. Applicants may only receive one grant award and include all public and private entities. Additional terms and conditions apply. For more information, see the CEC LDV and Multi-Use Hydrogen Refueling Infrastructure website.
(Reference California Health and Safety Code 43018.9 and Executive Order B-48-18)
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.
Delaware
Delaware Sustainable Energy Utility is required to administer a program that provides financial assistance to residents for the purchase and installation of residential EV chargers. The program must offer increased rebate amounts for low-income applicants. Additional requirements apply.
(Reference House Bill 13, 2024)
All light-duty and passenger state fleet vehicles must be ZEVs by 2040. To support the state fleet transition to ZEVs, state agencies are required to own and operate an increasing number of ZEVs every few years, according to the following schedule:
| Year | Fleet ZEV Share |
|---|---|
| 2026 | 15% of vehicles must be ZEVs |
| 2029 | 25% of vehicles must be ZEVs |
| 2032 | 50% of vehicles must be ZEVs |
| 2040 | 100% of vehicles must be ZEVs |
For the purpose of this requirement, ZEVs include electric vehicles, hydrogen fuel cell electric vehicles, and plug-in hybrid electric vehicles. Exemptions apply.
(Reference House Bill 9, 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)
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)
Oklahoma
Ethanol fuel retailers must clearly label motor fuel pumps dispensing 15% ethanol (E15) fuel blends. The labeling must follow established, federal labeling specifications for E15, including prominent display of fuel type, blend, and vehicle applicability. All motor fuel pumps dispensing ethanol or methanol must state “Contains Ethanol” or “Contains Methanol.” Additional requirements apply.
(Reference Oklahoma Statute 17-347, Code of Federal Regulations 1090.1510, and Oklahoma Senate Bill 255, 2023)
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.