Search Federal and State Laws and Incentives

Alternative Fuel and Idle Reduction Grants

The North Carolina Department of Environment and Natural Resources Division of Air Quality provides grants for the incremental cost of original equipment manufacturer alternative fuel vehicles, vehicle conversions, and implementing idle reduction programs. For more information see the Diesel Emission Reductions Grants website.

Alternative Fuel Vehicle (AFV) Acquisition Goal

North Carolina established a goal that at least 75% of new or replacement state government light-duty cars and trucks with a gross vehicle weight rating of 8,500 pounds or less must be AFVs or low emission vehicles. (Reference North Carolina General Statutes 143-215.107C)

Alternative Fuel Tax Exemption

The retail sale, use, storage, and consumption of alternative fuels is exempt from the state retail sales and use tax. (Reference North Carolina General Statutes 105-164.13)

Alternative Fuel and Alternative Fuel Vehicle (AFV) Fund

The North Carolina State Energy Office administers the Energy Policy Act (EPAct) Credit Banking and Selling Program, which enables the state to generate funds from the sale of EPAct 1992 credits. The funds that EPAct credit sales generate are deposited into the Alternative Fuel Revolving Fund (Fund) for state agencies to offset the incremental costs of purchasing biodiesel blends of at least 20% (B20) or ethanol blends of at least 85% (E85), developing alternative fueling infrastructure, and purchasing AFVs and hybrid electric vehicles. Funds are distributed to state departments, institutions, and agencies in proportion to the number of EPAct credits generated by each. For the purposes of this program, alternative fuels include 100% biodiesel (B100), biodiesel blends of at least B20, ethanol blends of at least E85, compressed natural gas, propane, and electricity. The Fund also covers additional projects approved by the Energy Policy Council. (Reference North Carolina General Statutes 143-58.4, 143-58.5, 143-341, and 136-28.13)

Alternative Fuel Use and Fuel-Efficient Vehicle Requirements

State-owned vehicle fleets must implement petroleum displacement plans to increase the use of alternative fuels and fuel-efficient vehicles. Reductions may be met by petroleum displaced through the use of biodiesel, ethanol, other alternative fuels, the use of hybrid electric vehicles, other fuel-efficient or low emission vehicles, or additional methods the North Carolina Division of Energy, Mineral and Land Resources approves. (Reference Session Law 2013-265, Section 19.5(a))

Alternative Fuel Vehicle (AFV), Idle Reduction Technologies, and Diesel Retrofits Funding

The Clean Fuel Advanced Technology (CFAT) project provides grant funding to reducing transportation-related emissions in nonattainment and maintenance counties for National Ambient Air Quality Standards. A project that is adjacent to these areas may also be eligible for funding if the project will reduce emissions in eligible counties. The North Carolina Department of Transportation funds the CFAT project, which covers three broad areas: education and outreach; project funding; and recognition of exemplary activities. For the fiscal year 2019 funding cycle, financial support is available for AFV purchases or leases, idle reduction technologies, and diesel retrofits. For more information, including current requests for proposals, see the CFAT website.

Plug-In Electric Vehicle (PEV) and Fuel Cell Electric Vehicle (FCEV) Emissions Inspection Exemption

Qualified PEVs and FCEVs are exempt from state emissions inspection requirements. Other restrictions may apply. (Reference North Carolina General Statutes 20-4.01 and 20-183.2)

Plug-In Electric Vehicle (PEV) Definition

A PEV is defined as a vehicle that:

• Draws electricity from a battery with a capacity of at least four kilowatt-hours and is capable of being charged from an external source
• Has not been modified from the original equipment manufacturer power train specifications
• Has a gross vehicle weight rating of 8,500 pounds or less
• Has a maximum speed of at least 65 miles per hour
• Meets applicable requirements in Title 49 of the U.S. Code of Federal Regulations, section 571.

State Highway Electric Vehicle Supply Equipment (EVSE) Regulations

The North Carolina Department of Transportation (NCDOT) may install and operate publicly-accessible EVSE at state-owned highway rest stops so long as it has developed a mechanism to charge EVSE users a fee to recover the costs related to electricity consumed, process the user fee, and operate and maintain the EVSE. NCDOT may consult with other state agencies and industry representatives to develop this required cost recovery mechanism. (Reference North Carolina General Statutes 136-18.02)

EVSE Rebate and Charging Rate Reduction - Randolph Electric Membership Corporation (EMC)

Randolph EMC's Electric Vehicle Utility Program (REVUP) offers rebates for residential customers of $500 towards the purchase of residential Level 2 electric vehicle supply equipment (EVSE). To qualify, residents must be a registered owner of an electric vehicle (EV), purchase and install a Wi-Fi connected Level 2 EVSE, and agree to share the data collected by the EVSE. Rebates are available to the first 25 applicants. REVUP also offers residents an EV time-of-use (TOU) rate. For more information, see the REVUP website.

Electric Vehicle Supply Equipment (EVSE) Rebate – Cape Hatteras Electric Cooperative (CHEC)

Cape Hatteras Electric Co-Op (CHEC) offers a bill credit of $100 to residential customers who install a Level 2 EVSE. For more information, including how to apply, see the CHEC Electric Vehicles website.

Plug-In Electric Vehicle (PEV) Charging Rate Incentive – Cape Hatteras Electric Cooperative (CHEC)

Cape Hatteras Electric Co-Op (CHEC) offers time-of-use (TOU) electricity rates to residential customers with a PEV. For more information, see the CHEC Electric Vehicles website.

Heavy-Duty Vehicle Emissions Reduction Funding

The North Carolina Department of Environmental Quality’s (DEQ) Diesel Bus and Vehicle Programs provide funding for heavy-duty on-road new diesel or alternative fuel vehicles or engine repowers and replacements, as well as off-road repowers and replacements. Both government and non-government entities that own and operate diesel fleets and equipment are eligible for funding. Vehicles and equipment that qualify for replacement or repower include:

• Model Year (MY) 2009 or older Class 4-8 school buses, shuttle buses, and transit buses;
• MY 1992-2009 Class 4-7 local freight trucks;
• MY 1992-2009 Class 8 local freight trucks and port drayage trucks; and
• Freight switchers, ferries and tugs, marine vessel shorepower, airport ground equipment, and forklifts and port cargo handling equipment.

Electric Vehicle Supply Equipment (EVSE) Funding

The North Carolina Department of Environmental Quality’s (DEQ) Zero Emission Vehicle Direct Current (DC) Fast Charge Infrastructure Program provides funding for the purchase and installation of public access DC fast EVSE. The program will prioritize EVSE installed along specific highway corridors. This program is funded by North Carolina’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including how to apply, see the DEQ DC Fast Charge Program website.

Public Utility Definition

A person who uses electric vehicle supply equipment to resell electricity to the public for the purposes of fueling an electric vehicle is not considered a public utility. (Reference House Bill 329, 2019)