Search Federal and State Laws and Incentives

Congestion Mitigation and Air Quality (CMAQ) Improvement Program

The CMAQ Program provides funding to state departments of transportation (DOTs), local governments, and transit agencies for projects and programs that help meet the requirements of the Clean Air Act by reducing mobile source emissions and regional congestion on transportation networks. Eligible activities include transit improvements, travel demand management strategies, congestion relief efforts (such as high occupancy vehicle lanes), diesel retrofit projects, alternative fuel vehicles and infrastructure, and medium- or heavy-duty zero emission vehicles and related charging equipment. Projects supported with CMAQ funds must demonstrate emissions reductions, be located in or benefit a U.S. Environmental Protection Agency-designated nonattainment or maintenance area, and be a transportation project. For more information, see the FAST Act CMAQ fact sheet and CMAQ Improvement Program website. (Reference Public Law 117-58, Public Law 112-141, 23 U.S. Code 149, and 23 U.S. Code 151)

Clean Cities Coalition Network

The mission of Clean Cities Coalition Network is to foster the economic, environmental, and energy security of the United States by working locally to advance affordable, domestic transportation fuels and technologies. Nearly 100 volunteer coalitions carry out this mission by developing public/private partnerships to promote alternative and renewable fuels, idle-reduction measures, fuel economy, improvements, and emerging transportation technologies. The Clean Cities Coalition Network provides information about financial opportunities, coordinates technical assistance projects, updates and maintains databases and websites, and publishes technical and informational materials. For more information, see the Clean Cities Coalition Network website.

State Energy Program (SEP) Funding

The SEP provides grants to states to assist in designing, developing, and implementing renewable energy and energy efficiency programs, including programs to help reduce carbon emissions in the transportation sector by 2050 and accelerate the use of alternative transportation fuels for, and the electrification of, state government vehicles, fleet vehicles, taxis and ridesharing services, mass transit, school buses, ferries, and privately owned passenger and medium- and heavy-duty vehicles. Each state's energy office receives SEP funding and manages all SEP-funded projects. States may also receive project funding from technology programs in the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE) for SEP Special Projects. EERE distributes the funding through an annual competitive solicitation to state energy offices. SEP is authorized through fiscal year 2026. For more information, see the SEP website. (Reference Public Law 117-58 and 42 U.S. Code 6322 through 6325)

Alternative Fuel Excise Tax Credit

NOTE: This incentive was originally set to expire on December 31, 2021, but has been extended through December 31, 2024, by Public Law 117-169.

For an entity to be eligible to claim the credit they must be liable for reporting and paying the federal excise tax on the sale or use of the fuel in a motor vehicle. Tax exempt entities such as state and local governments that dispense qualified fuel from an on-site fueling station for use in vehicles qualify for the incentive. Eligible entities must be registered with the Internal Revenue Service (IRS). The incentive must first be taken as a credit against the entity’s alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS. The tax credit is not allowed if an incentive for the same alternative fuel is also determined under the rules for the ethanol or biodiesel tax credits.

For more information about claiming the credit, see IRS Form 4136, which is available on the IRS Forms and Publications website.

(Reference 26 U.S. Code 6426 and Public 117-169)

Clean School Bus

The U.S. Environmental Protection Agency’s (EPA) Clean School Bus program provides funding to eligible applicants for the replacement of existing school buses with clean, alternative fuel school buses or zero-emission school buses. EPA may award up to 100% of the cost of the replacement bus, charging equipment, or fueling infrastructure. Alternative fuels include electricity, natural gas, hydrogen, or propane. Eligible applicants are school districts, state and local government programs, federally recognized Indian tribes, non-profit organizations, and eligible contractors. EPA will prioritize funding for high-need local education agencies; low income, rural and tribal schools; and, applications that cost share through public-private partnerships, grants from other entities, or school bonds. For more information, including funding availability, timeline, and application materials, see the EPA Clean School Bus website.

(Reference Public Law 117-58 and 42 U.S. Code 16091)

Clean Construction and Agriculture

Clean Construction is a voluntary program that promotes the reduction of diesel exhaust emissions from construction equipment and vehicles by encouraging proper operations and maintenance, use of emissions-reducing technologies, and use of cleaner fuels.

Clean Agriculture is a voluntary program that promotes the reduction of diesel exhaust emissions from agricultural equipment and vehicles by encouraging proper operations and maintenance by farmers, ranchers, and agribusinesses, use of emissions-reducing technologies, and use of cleaner fuels.

Clean Construction and Clean Agriculture are part of the U.S. Environmental Protection Agency's Diesel Emissions Reduction Act (DERA) Program, which offers funding for clean diesel construction and agricultural equipment projects.

For more information, see the Reducing Diesel Emissions from Construction and Agriculture website.

Ports Initiative

The U.S. Environmental Protection Agency's (EPA) Ports Initiative is an incentive-based program designed to reduce emissions by encouraging port authorities and terminal operators to retrofit and replace older diesel engines with new technologies and use cleaner fuels. EPA's Ports Initiative offers funding to port authorities and public entities to help them overcome barriers that impede the adoption of cleaner diesel technologies and strategies. For more information, see the Ports Initiative website.

Vehicle Incremental Cost Allocation

The U.S. General Services Administration (GSA) must allocate the incremental cost of purchasing alternative fuel vehicles (AFVs) across the entire fleet of vehicles distributed by GSA. This mandate also applies to other federal agencies that procure vehicles for federal fleets. For more information, see the GSA's AFV website. (Reference 42 U.S. Code 13212 (c))

Vehicle Acquisition and Fuel Use Requirements for State and Alternative Fuel Provider Fleets

Under the Energy Policy Act (EPAct) of 1992, as amended, certain state government and alternative fuel provider fleets are required to acquire alternative fuel vehicles (AFVs) as a portion of their annual light-duty vehicle acquisitions. Compliance is required by fleets that operate, lease, or control 50 or more light-duty vehicles within the United States. Of those 50 vehicles, at least 20 must be used primarily within a single Metropolitan Statistical Area/Consolidated Metropolitan Statistical Area, and those same 20 vehicles must also be capable of being centrally fueled for the fleet to be subject to the regulatory requirements.

Under Standard Compliance, the AFVs that covered fleets acquire help them achieve compliance, with each AFV acquired earning the fleet one AFV-acquisition credit. Covered fleets may earn additional credits for AFVs earned in excess of their requirements, and these credits may be banked for future use toward compliance or traded with other fleets. Additionally, fleets that use fuel blends containing at least 20% biodiesel (B20) in medium- and heavy-duty vehicles may earn credits toward their annual AFV-acquisition requirements. A fleet may also earn credits that may be used toward compliance or banked once the fleet achieves compliance for investments in alternative fuel infrastructure, mobile non-road equipment, and emerging technologies associated with certain electric drive vehicle technologies.

Fleets may also opt into Alternative Compliance, which allows fleets the option to choose a petroleum reduction path in lieu of acquiring AFVs under Standard Compliance. Interested fleets must obtain from DOE a waiver from Standard Compliance by submitting a plan that demonstrates a path by which they will achieve a certain level of petroleum reduction specific to their fleet composition.

For more information, visit the EPAct State and Alternative Fuel Provider Fleets website.

(Reference 42 U.S. Code 13251 and 13263a, and 10 CFR 490)

Vehicle Acquisition and Fuel Use Requirements for Federal Fleets

Under the Energy Policy Act (EPAct) of 1992, 75% of new light-duty vehicles acquired by covered federal fleets must be alternative fuel vehicles (AFVs). As amended in January 2008, Section 301 of EPAct 1992 expands the definition of AFVs to include hybrid electric vehicles, fuel cell vehicles, and advanced lean burn vehicles. Fleets that use fuel blends containing at least 20% biodiesel (B20) may earn credits toward their annual requirements. Federal fleets are also required to use alternative fuels in dual-fuel vehicles unless the U.S. Department of Energy (DOE) approves waivers for agency vehicles; grounds for a waiver include lack of alternative fuel availability and unreasonable cost (per EPAct 2005, section 701).

Additional requirements for federal fleets were included in the Energy Independence and Security Act of 2007, such as fleet management plans and petroleum reduction from 2005 levels (Section 142), low greenhouse gas (GHG) emitting vehicle acquisition requirements (Section 141), and renewable fuel infrastructure installation requirements (Section 246). For more information, see the Federal Fleet Management website.

To track progress toward meeting AFV acquisition and fuel use requirements, federal fleets must report on their percent alternative fuel increase compared to the fiscal year 2005 baseline, alternative fuel use as a percentage of total fuel consumption, AFV acquisitions as a percentage of vehicle acquisitions, and fleet-wide miles per gasoline gallon equivalent of petroleum fuels.

Executive Order 13834, issued in May 2018, requires the Secretary of Energy (Secretary), in coordination with the Secretary of Defense, the Administrator of General Services, and the heads of other agencies as appropriate, to review the existing federal vehicle fleet requirements. In April 2019, the Secretary provided a report to the Chairman of the Council on Environmental Quality and the Director of the Office of Management and Budget detailing opportunities to optimize federal fleet performance, reduce associated costs, and streamline reporting and compliance requirements. Specifically, the report recommends that federal agencies identify and implement strategies to:

• Right-size the fleet
• Reduce vehicle miles traveled
• Implement more fuel efficient vehicles
• Align the implementation of AFVs and associated fueling infrastructure

(Reference 42 U.S. Code 13212 and Executive Order 13834 and Executive Order 14008)

Vehicle Acquisition and Fuel Use Requirements for Private and Local Government Fleets

Under the Energy Policy Act (EPAct) of 1992, the U.S. Department of Energy (DOE) was directed to determine whether private and local government fleets should be mandated to acquire alternative fuel vehicles (AFVs). In January 2004, DOE published a final rule announcing its decision not to implement an AFV acquisition mandate for private and local government fleets. In response to a March 2006 ruling by a U.S. District Court, DOE issued a subsequent final rulemaking on the new Replacement Fuel Goal in March 2007, which extended the EPAct 1992 goal to 2030. The goal is to achieve a domestic production capacity for replacement fuels sufficient to replace 30% of the U.S. motor fuel consumption. In March 2008, DOE issued its determination not to implement a fleet compliance mandate for private and local government fleets, concluding that such a mandate is not necessary to achieve the Replacement Fuel Goal. For more information on the Private and Local Government Fleet Rule compliance, visit the EPAct Private and Local Government Fleet Determination website. (Reference 42 U.S. Code 13257)

Voluntary Airport Low Emission (VALE) Program

The goal of the VALE Program is to reduce ground level emissions at commercial service airports located in designated ozone and carbon monoxide air quality nonattainment and maintenance areas. The VALE Program provides funding through the Airport Improvement Program and the Passenger Facility Charges program for the purchase of low emission vehicles, development of fueling and recharging stations, implementing gate electrification, and other airport air quality improvements. For more information, see the VALE Program website. (Reference 49 U.S. Code 47139)

High Occupancy Vehicle (HOV) Lane Exemption

States are allowed to exempt certified alternative fuel vehicles (AFVs) and plug-in electric vehicles (PEVs) from HOV lane requirements within the state. Eligible AFVs are defined as vehicles operating solely on methanol, denatured ethanol, or other alcohols; a mixture containing at least 85% methanol, denatured ethanol, or other alcohols; natural gas, propane, hydrogen, or coal derived liquid fuels; or fuels derived from biological materials. PEVs are defined as vehicles that are recharged from an external source of electricity and have a battery capacity of at least 4 kilowatt-hours. States are also allowed to establish programs allowing low-emission and energy-efficient vehicles to pay a toll to access HOV lanes.

Vehicles must be certified by the U.S. Environmental Protection Agency (EPA) and appropriately labeled for use in HOV lanes. The U.S. Department of Transportation (DOT) is responsible for planning and implementing HOV programs, including the low-emission and energy-efficient vehicle criteria EPA established. States that choose to adopt these requirements will be responsible for enforcement and vehicle labeling. The HOV exemption for AFVs and PEVs expires September 30, 2025 and low-emission and energy-efficient vehicle toll-access to HOV lanes expires September 30, 2019.

(Reference Public Law 114-94 and 23 U.S. Code 166)

Alternative Fuel Definition

The following fuels are defined as alternative fuels by the Energy Policy Act (EPAct) of 1992: pure methanol, ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline; natural gas and liquid fuels domestically produced from natural gas; propane; coal-derived liquid fuels; hydrogen; electricity; pure biodiesel (B100); fuels, other than alcohol, derived from biological materials; and P-Series fuels. In addition, the U.S. Department of Energy may designate other fuels as alternative fuels, provided that the fuel is substantially non-petroleum, yields substantial energy security benefits, and offers substantial environmental benefits. For more information, see the EPAct website. (Reference 42 U.S. Code 13211)

Improved Energy Technology Loans

The U.S. Department of Energy (DOE) provides loan guarantees through the Loan Guarantee Program to eligible projects that reduce air pollution and greenhouse gases and support early commercial use of advanced technologies, including biofuels and alternative fuel vehicles. The program is not intended for research and development projects. DOE may issue loan guarantees for up to 100% of the amount of the loan for an eligible project. Eligible projects may include the deployment of fueling infrastructure, including associated hardware and software, for alternative fuels. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Department's Federal Financing Bank. For more information, see the Loan Guarantee Program website and the Alternative Fuel Infrastructure fact sheet. (Reference 42 U.S. Code 16513)

Alternative Fuel Tax Exemption

Alternative fuels used in a manner that the Internal Revenue Service (IRS) deems as nontaxable are exempt from federal fuel taxes. Common nontaxable uses in a motor vehicle are: on a farm for farming purposes; in certain intercity and local buses; in a school bus; for exclusive use by a non-profit educational organization; and for exclusive use by a state, political subdivision of a state, or the District of Columbia. This exemption is not available to tax exempt entities that are not liable for excise taxes on transportation fuel. For more information, see IRS Publication 510. (Reference 26 U.S. Code 4041)

Alternative Fuel Definition - Internal Revenue Code

The Internal Revenue Service (IRS) defines alternative fuels as propane, natural gas, liquefied hydrogen, liquid fuel derived from coal through the Fischer-Tropsch process, liquid hydrocarbons derived from biomass, and P-Series fuels. Biodiesel, ethanol, and renewable diesel are not considered alternative fuels by the IRS. While the term "hydrocarbons" includes liquids that contain oxygen, hydrogen, and carbon and as such "liquid hydrocarbons derived from biomass" includes ethanol, biodiesel, and renewable diesel, the IRS specifically excluded these fuels from the definition. (Reference 26 U.S. Code 6426)

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

The Inflation Reduction Act of 2022 (Public Law 117-169) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022, with additional requirements taking place beginning January 1, 2023. More details are provided below by date and on the list of EVs with Final Assembly in North America.

Vehicle Purchases Before August 17, 2022

Qualifying EVs purchased before August 17, 2022, are eligible for a tax credit that is available for the purchase of a new qualified EV that draws propulsion using a traction battery that has at least four kilowatt-hours (kWh) of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500 based on each vehicle’s traction battery capacity and the gross vehicle weight rating. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified PEVs have been sold by that manufacturer for use in the United States. This tax credit is also available for future EV owners with a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022. For more information, including qualifying vehicles and sales by manufacturer, see the Internal Revenue Service (IRS) Qualified Plug-in Electric Drive Motor Vehicle Credit website.

Vehicle Purchases Between August 17 and December 31, 2022

Qualifying EVs purchased and delivered between August 17, 2022, and December 31, 2022, are eligible for the tax incentive as described above but are limited to vehicles with final assembly in North America. Manufacturer sales caps on vehicles apply. Note that for some manufacturers, the build location may vary based on the specific vehicle, trim, or the date in the Model Year when it was produced because some models are produced in multiple locations. The build location of a particular vehicle should be confirmed by referring to its Vehicle Identification Number (VIN) using the U.S. Department of Transportation’s VIN decoder or an information label affixed to the vehicle.

For more information, see EVs with Final Assembly in North America.

Vehicles Placed in Service After December 31, 2022

Beginning January 1, 2023, the Clean Vehicle Credit provisions remove manufacturer sales caps, expand the scope of eligible vehicles to include both EVs and FCEVs, require a traction battery that has at least seven kilowatt-hours (kWh), and establish criteria for a vehicle to be considered eligible that involve sourcing requirements for critical mineral extraction, processing, and recycling and battery component manufacturing and assembly. Vehicles that meet critical mineral requirements are eligible for $3,750 tax credit, and vehicles that meet battery component requirements are eligible for a $3,750 tax credit. Vehicles meeting both the critical mineral and the battery component requirements are eligible for a total tax credit of up to $7,500.

Critical Minerals: To be eligible for the $3,750 critical minerals portion of the tax credit, the percentage of the value of the battery’s critical minerals that are extracted or processed in the United States or a U.S. free-trade agreement partner or recycled in North America, must increase according to the following schedule:

Battery Components: To be eligible for the $3,750 battery components portion of the tax credit, the percentage of the value of the battery’s components that are manufactured or assembled in North America must increase according to the following schedule:

To be eligible for the credits under these provisions, vans, sport utility vehicles, and pickup trucks must meet the additional requirements of not having a manufacturer suggested retail price (MSRP) above $80,000, and all other vehicles may not have an MSRP above $55,000. Additionally, the eligibility of individuals for the tax credit is further limited by thresholds for modified adjusted gross income (MAGI); only individuals having a MAGI below the following thresholds are eligible for the tax credit:

• $300,000 for joint filers
• $225,000 for head-of-household filers
• $150,000 for single filers

Further guidance on these provisions is forthcoming. For more information, including additional eligibility requirements, see the IRS Plug-In Electric Drive Vehicle Credit website.

(Reference 26 U.S. Code 30D and Public Law 117-169)

Procurement Preference for Electric and Hybrid Electric Vehicles

The U.S. Department of Defense (DOD) must exhibit a preference for the lease or procurement of motor vehicles with electric or hybrid electric propulsion systems, including plug-in hybrid systems, if the vehicles are commercially available at a cost reasonably comparable to motor vehicles with internal combustion engines. Tactical vehicles designed for use in combat are excluded from the requirement. (Reference 10 U.S. Code 2922g)

Zero Emission Vehicle Emissions Test Exemption

Electric vehicles registered in Arizona are not required to complete annual emissions testing. All alternative fuel vehicles, excluding electric and hydrogen vehicles, used to commute into Phoenix or Tucson are required to be emissions tested before they are registered. For more information, visit the Arizona Department of Environmental Quality website.

(Reference Arizona Revised Statutes 49-541, 49-542 and 49-542.05)

Reduced Alternative Fuel Vehicle (AFV) License Tax

The vehicle license tax for an AFV registered in Arizona is $4 for every $100 in assessed value. The minimum amount of the annual AFV license tax is $5. AFV assessed values are determined as follows:

• For AFVs initially registered between January 1, 2022, and December 31, 2022, the assessed value of the AFV is 20% of the manufacturer’s suggested retail price (MSRP);
• For each succeeding year, for the purpose of calculating the license tax, the assessed value of the AFV is reduced by 15% from the value from the preceding year.

For the purpose of this tax, AFVs include those powered exclusively by propane, natural gas, electricity, hydrogen, or a blend of hydrogen with propane or natural gas. For more information, see the ADOT AFV website. The reduced alternative fuel vehicle license tax does not apply to any vehicle purchased on or after December 31, 2022.

(Reference Arizona Revised Statutes 1-215, 28-5801, 28-5805)

Employer Invested Emissions Reduction Funding - South Coast

The South Coast Air Quality Management District (SCAQMD) administers the Air Quality Investment Program (AQIP). AQIP provides funding to allow employers within SCAQMD's jurisdiction to make annual investments into an administered fund to meet employers' emissions reduction targets. The revenues collected are used to fund alternative mobile source emissions and trip reduction programs, including alternative fuel vehicle projects, on an on-going basis. Programs such as low emission, alternative fuel, or zero emission vehicle procurement and old vehicle scrapping may be considered for funding. For more information, including current requests for proposals and funding opportunities, see the AQIP website.

Zero Emission Vehicle (ZEV) Production Requirements

The California Air Resources Board (CARB) certifies new passenger cars, light-duty trucks, and medium-duty passenger vehicles as ZEVs if the vehicles produce zero exhaust emissions of any criteria pollutant (or precursor pollutant) under all possible operational modes and conditions. Manufacturers with annual sales between 4,501 and 60,000 vehicles may comply with the ZEV requirements through multiple alternative compliance options that include producing low emission vehicles and obtaining ZEV credits. Manufacturers with annual sales of 4,500 vehicles or less are not subject to this regulation.

CARB's emissions control program for MY 2017 through 2025 combines the control of smog, soot, and greenhouse gases (GHGs) and requirements for ZEVs into a single package of standards called Advanced Clean Cars. In December 2012, CARB finalized new regulatory requirements that allow vehicle manufacturer compliance with the U.S. Environmental Protection Agency's GHG requirements for MY 2017-2025 to serve as compliance with California's adopted GHG emissions requirements for those same model years.

The accounting procedures for MY 2018-2025 are based on a credit system as shown in the table below. The minimum ZEV requirement for each manufacturer includes the percentage of passenger cars and light-duty trucks produced by the manufacturer and delivered for sale in California. The regulation also includes opportunities for compliance with transitional zero emission vehicles, which must demonstrate certain exhaust emissions standards, evaporative emissions standards, on-board diagnostic requirements, and extended warranties.

For more information, see the CARB ZEV Program website. (Reference California Code of Regulations Title 13, Section 1962 -1962.2)

Alternative Fuel Vehicle (AFV) Weight Exemption

Gross vehicle weight rating limits for AFVs are 2,000 pounds greater than those for comparable conventional vehicles, as long as the AFVs operate using an alternative fuel or both alternative and conventional fuel, when operating on a highway that is not part of the interstate system. For the purpose of this exemption, alternative fuel is defined as compressed natural gas, propane, ethanol, or any mixture containing 85% or more ethanol (E85) with gasoline or other fuels, electricity, or any other fuels, which may include clean diesel and reformulated gasoline, so long as the Colorado Air Quality Control Commission determines that these other fuels result in comparable reductions in carbon monoxide emissions and brown cloud pollutants.

(Reference Colorado Revised Statutes 42-4-508 and 24-30-1104 (2)(c)(III)(A))

Gasoline and Diesel Gallon Equivalent Definition

Motor fuels, including alternative fuels, may be sold by gasoline gallon equivalent (GGE) or diesel gallon equivalent (DGE) as long as the dispenser used for the sale of motor fuel in GGEs or DGEs clearly displays the applicable conversion factor and other required information. (Reference Colorado Revised Statutes 8-20-232.5)

Alternative Fuel Vehicle Acquisition Requirements

Fleets that operate at least 10 vehicles in the District of Columbia must ensure that 70% of newly purchased vehicles with a gross vehicle weight rating (GVWR) of 8,500 pounds (lbs.) or less and 50% of vehicles with a GVWR between 8,500 lbs. and 26,000 lbs. are clean fuel vehicles. For this requirement, a clean fuel is any fuel, including diesel, ethanol (including E85), hydrogen, propane, natural gas, reformulated gasoline, or other power source (including electricity) used in a clean fuel vehicle that complies with standards and requirements applicable to such vehicles. Certain exemptions apply. (Reference District of Columbia Code 50-702 and 50-703)

Alternative Fuel Excise Tax

Distributors who sell or use motor fuel, including special fuels, are subject to an excise tax of $0.26 per gallon. Motor fuels that are not commonly sold or measured by the gallon and are used in motor vehicles on public highways are taxed according to their gasoline gallon equivalent (GGE). A GGE of compressed natural gas (CNG) must be at least 110,000 British thermal units and a GGE of liquefied natural gas (LNG) must be at least 6.06 pounds. CNG is defined as a mixture of hydrocarbon gases and vapors, consisting principally of methane in gaseous form that has been compressed for use as a motor fuel. LNG is defined as methane or natural gas in the form of a cryogenic or refrigerated liquid for use as a motor fuel. Propane and special fuels sold in bulk to a licensed consumer distributor are exempt from this tax. The Georgia Department of Revenue may assess, levy, and collect tax for any other motor fuels used on public highways using a GGE rate.

(Reference Georgia Code 48-9-3)

Alternative Fuel Vehicle Acquisition Requirements

At least 10% of new vehicles purchased by institutions under the control of the state fleet director, including the Iowa Department of Transportation, Board of Directors of Community Colleges, Board of Regents, Commission for the Blind, and Department of Corrections must be capable of operating on alternative fuels. Alternative fuels include E85, B20, natural gas, propane, and electricity. Vehicles and trucks purchased and directly used for law enforcement and off-road maintenance work are exempt from this requirement.

The state fleet must fuel diesel vehicles with biodiesel blends between 2% and 99%, and gasoline vehicles with ethanol blends between 15% and 85%. This requirement does not apply if such blends are not approved by the U.S. Environmental Protection Agency or the vehicle manufacturer. Additional exemptions apply. Vehicles that use the biodiesel and ethanol blends must display a brightly colored, highly visible renewable fuel sticker. Beginning July 1, 2023, and annually thereafter, the Iowa Department of Administrative Services must publish a report detailing the use of ethanol and biodiesel blends in state fleet vehicles.

(Reference Iowa Code 89A.360, 8A.362, 8A.368, 216B.3, 260C.19A, 262.25A, 307.21 and 904.312A and House File 2128, 2022)

Alternative Fuel Promotion

The Missouri Alternative Fuels Commission (Commission) promotes the continued production and use of alternative transportation fuels in Missouri. The Commission submits a report annually to the governor and general assembly that includes: - Recommendations on changes to state law to facilitate the sale and distribution of alternative fuels and alternative fuel vehicles (AFV); - Promotes the development, sale, distribution, and consumption of alternative fuels; - Promotes the development and use of AFVs and technology that will enhance the use of alternative and renewable fuels; - Educates consumers about alternative fuels; and, - Develops a long-range plan for the state to reduce consumption of petroleum fuels.

For more information, see the Missouri Alternative Fuels Commission website.

(Reference Missouri Revised Statutes 414.420)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Acquisition Requirements

A minimum of 75% of state government and educational institution fleet light-duty vehicles purchased must be HEVs or bi-fuel or dedicated AFVs. Vehicles must meet or exceed the federal corporate average fuel economy standards. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from this requirement. The New Mexico Energy, Minerals and Natural Resources Department may grant additional exemptions based on the availability and suitability of vehicles, as well as fuel availability and cost.

(Reference New Mexico Statutes 13-1B-1 through 13-1B-7)

Alternative Fuel Loans

The Oregon Department of Energy administers the Small-Scale Local Energy Loan Program which offers low-interest loans for qualifying projects. Eligible alternative fuel projects include fuel production facilities, dedicated feedstock production, fueling infrastructure, and fleet vehicles. Loan recipients must complete a loan application and pay a loan application fee. For more information, see the Energy Loan Program website. (Reference Oregon Revised Statutes 470)

Alternative Fuel Vehicle Acquisition and Fuel Use Requirements

All state agencies must purchase or lease zero-emission vehicles (ZEVs), including all-electric, plug-in hybrid electric, or hydrogen fuel cell vehicles, for at least 25% of new state light-duty vehicles to the maximum extent possible.

If ZEVs are not feasible, the state agency may purchase or lease AFVs and use alternative fuels to operate those vehicles, except in regions where it is not economically or logistically possible to fuel an AFV. Each state agency must develop and report a greenhouse gas reduction baseline and annual reduction targets to the Oregon Department of Administrative Services (DAS). Reports to DAS must include the number of purchases or leases of ZEVs, AFVs, and AFV conversions and the quantity of each type of alternative fuel used annually by state agency fleets. DAS published a plan to reduce costs for state agency ZEV purchases in September 2020.

(Reference Executive Order 20-04, 2020, and Oregon Revised Statutes 283.327, 283.337, and 267.030)

High Occupancy Vehicle (HOV) Lane Exemption

Alternative fuel vehicles (AFVs) displaying the Virginia Clean Special Fuel license plate may use Virginia HOV lanes on specified areas of I-64, I-264, the Dulles Toll Road, and in the City of Alexandria, regardless of the number of occupants. For HOV lanes serving the I-66 corridor, only registered vehicles displaying Clean Special Fuel license plates issued before July 1, 2011, are exempt from HOV lane requirements. Only dedicated AFVs are eligible; see the Virginia Department of Motor Vehicles website for a complete list of qualifying vehicles. The annual fee for Clean Special Fuel license plates is $25 in addition to the prescribed fee for commonwealth license plates. This exemption expires September 30, 2025. For more information, see the Virginia Department of Transportation HOV Lanes website. (Reference Virginia Code 33.2-501 and 46.2-749.3)

Alternative Fuel School Bus and Fueling Infrastructure Loans

The Virginia Board of Education may use funding from the Literary Fund to provide loans to school boards that convert school buses to operate on alternative fuels or construct alternative fueling stations. (Reference Virginia Code 22.1-146)

Alternative Fuel Vehicle (AFV) Tax Reduction Authorization

Local governments may reduce personal property taxes paid on AFVs and low-speed vehicles. AFVs include vehicles that operate using natural gas, liquefied petroleum gas or propane, hydrogen, or electricity. (Reference Virginia Code 58.1-3506)

Alternative Fuel Tax

Alternative fuels used to operate on-road vehicles are taxed at a rate of $0.262 per gasoline gallon equivalent (GGE). Alternative fuels are taxed at the same rate as gasoline and gasohol (5.1% of the statewide average wholesale price of a gallon of self-serve unleaded regular gasoline). Refer to the Virginia Department of Motor Vehicles (DMV) Fuels Tax Rates and Alternative Fuels Conversion website for fuel-specific GGE calculations.

(Reference Virginia Code 58.1-2217 and 58.1-2249)

Alternative Fuel Provider License

Alternative fuel providers, bulk users, and retailers, or any person who fuels an alternative fuel vehicle from a private source that does not pay the alternative fuels tax must obtain an alternative fuel license from the Virginia Department of Motor Vehicles (DMV). For more information, see the DMV Fuels Tax Licensing website. (Reference Virginia Code 58.1-2244)

Alternative Fuel Production Subsidy Prohibition

Incentives or subsidies from political subdivisions for the production of alternative fuels are prohibited by law, with exceptions for certain coal-based liquid fuels. (Reference West Virginia Code 8-27A-3 and 11-13D-3D)

Alternative Fuel Vehicle and Alternative Fuel Use Policy

The Wisconsin Department of Administration (DOA) encourages state employees operating state-owned or leased motor vehicles to use hybrid electric vehicles or vehicles that operate on gasohol (a motor fuel containing at least 10% alcohol) or alternative fuels whenever feasible and cost effective. DOA must place a list of gasohol and alternative fueling station locations in each state-owned or state-leased motor vehicle for driver reference. DOA also encourages Wisconsin residents and state employees who use personal motor vehicles on state business to use gasohol and alternative fuels. (Reference Wisconsin Statutes 16.045)

High Occupancy Vehicle (HOV) and High Occupancy Toll (HOT) Lane Exemption

Alternative fuel vehicles (AFVs) displaying the proper alternative fuel license plate may use HOV and HOT lanes, regardless of the number of passengers. Qualified AFVs may also use the HOT lanes toll-free. AFVs include electric vehicles and bi-fuel or dual-fuel vehicles that operate on natural gas or propane. Applicants must provide proof they have paid registration fees in full before receiving the license plate. This exemption expires September 30, 2025. For more information on fees and eligibility for the AFV license plate, see the Georgia Department of Public Safety websites. (Reference Georgia Code 32-9-4, 40-2-86.1, and 40-6-54)

Alternative Fuel Vehicle Acquisition Requirement

The Alaska Department of Transportation and Public Facilities (Department) must evaluate the cost, efficiency, and commercial availability of alternative fuels for automotive purposes every five years, and purchase or convert to vehicles that operate using alternative fuels whenever practical. The Department may participate in joint ventures with public or private partners to foster the availability of alternative fuels for consumers.

(Reference Alaska Statutes 44.42.020)

Certified Technology Park Designation

The Indiana Economic Development Corporation (IDEC) may designate an area as a certified technology park if certain criteria are met, including a commitment from at least one business engaged in a high technology activity that creates a significant number of jobs. The establishment of high technology activities and public facilities within a technology park serves a public purpose and benefits the public's general welfare by encouraging investment, job creation and retention, and economic growth and diversity. High technology activities include advanced vehicles technology, which is any technology that involves electric vehicles, hybrid electric vehicles, or alternative fuel vehicles, or components used in the construction of these vehicles. For more information, see the IEDC Indiana Certified Technology Parks website. (Reference Indiana Code 36-7-32)

Alternative Fuel Technician Training

The Alternative Fuels Technician Certification Act (Act) regulates the training, testing, and certification of technicians and trainees who install, modify, repair, or renovate equipment used in alternative fueling infrastructure and in the conversion of any engine to operating on an alternative fuel. Alternative fuels include propane, natural gas, methanol, ethanol, electricity, hydrogen, biodiesel, and more. This includes original equipment manufacturer engines dedicated to operating on an alternative fuel. Electric vehicles (EVs), EV charging infrastructure, and EV technicians must also comply with the rules and regulations of this Act. (Reference Oklahoma Statutes 40-142.1 through 40-142.16)

Alternative Fuel Vehicle (AFV) Demonstration Grant Authorization

The Iowa Department of Natural Resources (Department) may award demonstration grants to individuals who purchase vehicles that operate on alternative fuels, including but not limited to E85, biodiesel, compressed natural gas, electricity, solar energy, or hydrogen. Individuals may use the grants to conduct research connected with the fuel or vehicle. Grant funding to purchase the vehicle is available if the Department retains the title of the vehicle, the vehicle is used for research, and the proceeds from the eventual sale of the vehicle are used for additional research. Grants are subject to funding availability. (Reference Iowa Code 214A.19)

Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements

A state agency that operates a vehicle fleet consisting of 15 vehicles or more must ensure that at least 50% of new vehicles purchased over a defined biennial period are capable of operating using an alternative fuel. Excess acquisitions of AFVs may be credited towards future biennial goals. If a state agency fails to meet a biennial acquisition goal, purchases of any non-AFVs are not permitted until the goals are met or an exemption or goal reduction has been granted. In addition, 30% of the fuel purchased annually for use in operating state fleet vehicles must be alternative fuels.

(Reference Missouri Revised Statutes 414.4365and 414.407)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Emissions Inspection Exemption

AFVs are exempt from Nevada's emissions testing requirements. A new HEV is exempt from emissions inspection testing for the first five model years, after which the vehicle must comply with emissions inspection testing requirements on an annual basis. For more information, see the Nevada Emissions Control Program website. (Reference Nevada Revised Statutes 445B.770 and 445B.825)

Alternative Fuel and Idle Reduction Grants

The North Carolina Department of Environment Quality (DEQ) provides grants to repower, replace, and convert eligible on and off road vehicles and equipment to alternative fuels and fuel efficient technology. Equipment must be U.S. Environmental Protection Agency or California Air Resources Board verified. For more information, including a list of eligible technologies, see the DEQ Diesel Emission Reductions Grants website.

Clean Vehicle and Infrastructure Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Emissions Reduction Incentive Grants (ERIG) Program and Rebate Grants Program as part of the Texas Emissions Reduction Plan (TERP). The ERIG Program provides grants for various types of clean air projects to improve air quality in the state's nonattainment areas and other affected counties. Eligible projects include those that involve replacement, retrofit, repower, or lease or purchase of new heavy-duty vehicles; alternative fuel dispensing infrastructure; idle reduction and electrification infrastructure; and alternative fuel use. The Rebate Grants Program provides grants to upgrade or replace diesel heavy-duty vehicles and non-road equipment. Qualifying projects must reduce emissions of nitrogen oxides or other pollutants by at least 25% as compared to baseline levels and must meet operational and fuel usage requirements. For more information, including eligibility and the application form, see the TCEQ TERP website. (Reference Texas Statutes Health and Safety Code 386 and Texas Administrative Code 114.620-114.629)

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 diversify 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 ChargeNY Program. For more information and funding opportunities, see the NYSERDA Clean Transportation Program website.

Alternative Fuel Tax Exemption

Taxes imposed on alternative fuels used in official vehicles for the United States government or any Delaware state government agency, including volunteer fire and rescue companies, are waived. Alternative fuel retailers must obtain a fuel supplier's license from the Delaware Department of Transportation (DelDOT), and operators or owners of vehicles using alternative fuel must obtain either a special fuel user's license from DelDOT or pay the special fuel tax. (Reference Delaware Code Title 30, Chapter 51, Subchapter II)

Alternative Fuel Tax Exemption

A county, city, village, town, or other political subdivision may not levy or collect any excise, license, privilege, or occupational tax on motor vehicle fuel, alternative fuels, or the purchase, sale, handling, or consumption of motor vehicle fuel or alternative fuels. (Reference Wisconsin Statutes 78.82)

Alternative Fuel License

Any person acting as an alternative fuels dealer must hold a valid alternative fuel license and certificate from the Wisconsin Department of Administration. No person may use alternative fuels in the state unless the person holds a valid alternative fuel license or an authorized supplier has delivered the alternative fuel. For more information, see the Wisconsin Department of Revenue License, Permit and Registration Services website. (Reference Wisconsin Statutes 78.47)

Alternative Fuel Vehicle Conversion

It is unlawful to tamper with vehicle emissions control systems unless the action is for the purpose of converting a motor vehicle to operate on an alternative fuel and is in compliance with the standards adopted under the Clean Air Act Amendments. (Reference Ohio Revised Code 3704.16-3704.162)

High Occupancy Vehicle (HOV) and High Occupancy Toll (HOT) Lane Exemption

Compressed natural gas, hydrogen, electric, and plug-in hybrid electric vehicles meeting specified California and federal emissions standards and affixed with a California Department of Motor Vehicles (DMV) Clean Air Vehicle sticker may use HOV lanes regardless of the number of occupants in the vehicle. First-time applicants must have a household income at or below 80% of the state median income. Purple stickers expire January 1, 2023; and orange stickers issued on or after January 1, 2020, expire January 1, 2024.

The California Department of Transportation must publish a report by June 1, 2023, detailing the number of stickers issued under this program. Vehicles originally issued white or green decals prior to 2017 are no longer eligible to participate in this program. Vehicles with stickers are also eligible for reduced rates on or exemptions from toll charges imposed on HOT lanes. For more information and restrictions, including a list of qualifying vehicles, see the California Air Resources Board Carpool Stickers website.

(Reference California Vehicle Code 5205.5 and 21655.9)

Alternative Fuels Tax

Alternative fuels used to propel vehicles of any kind on public highways are taxed at a rate determined on a gasoline gallon equivalent basis. For more information, including applicable tax rates, see the Pennsylvania Department of Revenue Motor and Alternative Fuel Taxes website. Certain exemptions apply. (Reference Title 75 Pennsylvania Statutes, Part VI, Chapter 90, Section 9004)

Alternative Fuel Definition

Alternative fuels are defined as natural gas, propane, electricity, hydrogen, fuel mixtures containing not less than 85% ethanol or methanol, and fuel mixtures containing not less than 20% vegetable oil, or a water-phased hydrocarbon fuel emulsion in an amount not less than 20% by volume. Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and meets current ASTM pure biodiesel (B100) standards. (Reference New Mexico Statutes 13-1B-2 and 57-19-27)

Alternative Fuel Vehicle (AFV) Parking Incentive

An individual driving a dedicated AFV may park without penalty in parking areas that are designated for carpool operators, provided the vehicle is using alternative fuel. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 28-877)

Alternative Fuel Tax Rate

A distributor of any alternative fuel used to operate an internal combustion engine must pay a license tax of $0.0025 for each gallon of alternative fuel the distributor sells or uses. In addition, a distributor must pay a license tax for each gallon of fuel sold or used by the distributor for operating a motor vehicle on state public highways according to the following rates:

For other alternative fuels, the rate is based on the energy content of the fuels as compared to diesel fuel, using a lower heating value of 130,000 British thermal units per gallon as a standard for diesel, so that the tax rate, on an energy content basis, is equal to one-quarter the rate for diesel fuel. Counties may impose additional taxes.

(Reference Hawaii Revised Statutes 243-4 and 243-5)

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 Vehicle Exemption from Driving Restrictions

Certified clean fuel vehicles are exempt from time-of-day and day-of-week restrictions and commercial vehicle bans if the vehicles are part of a fleet that operates at least 10 vehicles in the District of Columbia. This exemption does not permit unrestricted access to High Occupancy Vehicle lanes, except for covered fleet vehicles that have been certified by the U.S. Environmental Protection Agency as Inherently Low Emission Vehicles (ILEV) and are in compliance with applicable ILEV emission standards. (Reference District of Columbia Law L22-257, 2019, and District of Columbia Code 50-702 and 50-714)

Low Emission or Alternative Fuel Bus Acquisition Requirement

All buses purchased by the New Jersey Transit Corporation (NJTC) must be: 1) equipped with improved pollution controls that reduce particulate emissions; or 2) powered by a fuel other than conventional diesel. Qualifying vehicles include compressed natural gas vehicles, hybrid electric vehicles, fuel cell vehicles, vehicles operating on biodiesel or ultra-low sulfur fuel, or vehicles operating on any other bus fuel approved by the U.S. Environmental Protection Agency. If the NJTC is unable to meet the bus purchase requirement, the organization must submit a report to the New Jersey Senate and General Assembly detailing the reasons and the state legislature may grant an exemption. (Reference New Jersey Statutes 27:1B-22)

Fleet Emissions Reduction Requirements - South Coast

The South Coast Air Quality Management District (SCAQMD) requires government fleets and private contractors under contract with public entities to purchase non-diesel lower emission and alternative fuel vehicles. The rule applies to transit bus, school bus, refuse hauler, and other vehicle fleets of at least 15 vehicles that operate in Los Angeles, San Bernardino, Riverside, and Orange counties. (Reference SCAQMD Rules 1186.1 and 1191-1196)

Alternative Fuel Vehicle (AFV) Dealer Information Dissemination Requirement

New motor vehicle dealers must make information about AFVs and Arizona-based incentives for purchasing or leasing AFVs available to the public. For the purpose of these requirements, alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 28-4414)

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

Vehicles powered exclusively by electricity, including low-speed vehicles, hydrogen, or fuels other than gasoline that are exempt from motor vehicle emissions inspection under federal regulation, are exempt from state emissions inspection requirements. (Reference Missouri Revised Statutes 643.315)

Alternative Fuel Vehicle (AFV) Decal

The state motor fuel tax does not apply to passenger vehicles, certain buses, or commercial vehicles that are powered by an alternative fuel, if the vehicles obtain an AFV decal. Owners or operators of AFVs that also own or operate a personal fueling station must pay an annual alternative fuel decal fee, as listed below. Alternative fuel motor vehicles licensed as historic vehicles are exempt from the alternative fuel decal requirement.

(Reference Missouri Revised Statutes 142.803 and 142.869)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

All school and government fleets may convert their vehicles to operate on alternative fuels, and all school districts should consider purchasing only vehicles able to operate on alternative fuels. Alternative fuels include natural gas, propane, ethanol, methanol, electricity, biodiesel, hydrogen, and more. School and government vehicles capable of operating on an alternative fuel must use the fuel whenever a fueling station is located within a five-mile radius of the respective school district or government department and the price of the alternative fuel is cost competitive with the displaced conventional fuel. If school and government vehicles must be fueled outside the five-mile radius and no fueling station is reasonably available, the school and government vehicles are exempt from this requirement. (Reference Oklahoma Statutes 74-130.2 and 74-130.3)

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 Vehicle Policy Development

The California Energy Commission (CEC) must prepare and submit an Integrated Energy Policy Report (IEPR) to the governor on a biannual basis. The IEPR provides an overview of major energy trends and issues facing the state, including those related to transportation fuels, technologies, and infrastructure. The IEPR also examines potential effects of alternative fuels use, vehicle efficiency improvements, and shifts in transportation modes on public health and safety, the economy, resources, the environment, and energy security. The IEPR's primary purpose is to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the state's economy, and protect public health and safety.

As of November 1, 2015, and every four years thereafter, the CEC must also include in the IEPR strategies to maximize the benefits of natural gas in various sectors. This includes the use of natural gas as a transportation fuel. For more information, see the 2020 Integrated Energy Policy Report. (Reference California Public Resources Code 25302 and 25303.5)

Mobile Source Emissions Reduction Requirements

Through its Mobile Sources Program, the California Air Resources Board (CARB) has developed programs and policies to reduce emissions from on-road heavy-duty diesel vehicles through the installation of verified diesel emission control strategies (VDECS) and vehicle replacements.

The on-road heavy-duty diesel vehicle rule (i.e., truck and bus regulation) requires the retrofit and replacement of nearly all privately owned vehicles operated in California with a gross vehicle weight rating (GVWR) greater than 14,000 pounds (lbs.). School buses owned by private and public entities and federal government owned vehicles are also included in the scope of the rule. By January 1, 2023, nearly all vehicles must have engines certified to the 2010 engine standard or equivalent. The drayage truck rule regulates heavy-duty diesel-fueled vehicles that transport cargo to and from California's ports and intermodal rail facilities. The rule requires that certain drayage trucks be equipped with VDECS and that all applicable vehicles have engines certified to the 2007 emissions standards. By January 1, 2023, all applicable vehicles must have engines certified to 2010 standards. The solid waste collection vehicle rule regulates solid waste collection vehicles with a gross vehicle weight rating of 14,000 lbs. or more that operate on diesel fuel, have 1960 through 2006 engine models, and collect waste for a fee. The fleet rule for public agencies and utilities requires fleets to install VDECS on vehicles or purchase vehicles that run on alternative fuels or use advanced technologies to achieve emissions requirements by specified implementation dates.

(Reference California Code of Regulations Title 13, 2021-2027)

Provision for Establishment of Clean Fuel Vehicle Insurance Incentives

An insurer may credit or refund any portion of the premium charged for an insurance policy on a clean fuel vehicle in order to encourage its policyholders to use clean fuel vehicles, as long as insurance premiums on other vehicles are not increased to fund these credits or refunds. Clean fuels include, but are not limited to, natural gas, propane, hydrogen, alcohol fuels containing not less than 85% alcohol by volume, and electricity.

(Reference Maine Revised Statutes Title 24-A, Section 2303-B)

Alternative Fuel and Fuel-Efficient Vehicle Acquisition and Emissions Reduction Requirements

Cars and light-duty trucks purchased by state agencies must meet the following requirements:

• Have an average U.S. Environmental Protection Agency estimated fuel economy of at least 40 miles per gallon;
• Comply with state fleet vehicle acquisition requirements set forth under the Energy Policy Act of 1992 (EPAct); and
• Obtain the best achievable fuel economy per pound of carbon dioxide emitted for the applicable vehicle classes.

Alternative fuel vehicles (AFVs) that the state purchases to comply with these requirements must be capable of operating on an EPAct-defined alternative fuel that is available in the state.

In addition, all cars and light-duty trucks that the state purchases or leases must be hybrid electric vehicles, plug-in hybrid electric vehicles, or capable of using alternative fuel. All AFVs purchased or leased must be certified to the California Air Resources Board’s (ARB) Ultra Low Emission Vehicle II (ULEV II) standard, and all light-duty gasoline vehicles and hybrid electric vehicles the state purchases or leases must be certified, at a minimum, to the California ARB ULEV II standard.

Beginning January 1, 2026, cars and light-duty trucks purchased by state agencies must meet the following electric vehicle (EV) acquisition goals:

• 50% of vehicle acquisitions must be EVs by 2026;
• 75% of vehicle acquisitions must be EVs by 2028; and,
• 100% of vehicle acquisitions must be EVs by 2030.

Lower EV maintenance costs must be considered when Connecticut Department of Administrative Services (DAS) leases vehicles to other state agencies. The DAS must report annually on the composition of the state fleet, including the volume of alternative fuels used. Beginning January 1, 2026, and annually thereafter, if procurement of light-duty cars and trucks purchased by the state does not meet the ZEV procurement requirements, DAS must submit an explanatory report to the General Assembly.

Vehicles that the Connecticut Department of Public Safety designates as necessary for the Department of Public Safety to carry out its mission are exempt from these provisions.

(Reference Connecticut General Statutes 4a-67d and Senate Bill 4, 2022)

Alternative Fuel Development Property Tax Exemption

Industrial property that is used for high-technology activities or the creation or synthesis of biodiesel fuel may be eligible for a tax exemption. High-technology activities include those related to advanced vehicle technologies such as electric, hybrid electric, or alternative fuel vehicles and their components. To qualify for the tax exemption, an industrial facility must obtain an exemption certificate for the property from the Michigan State Tax Commission. (Reference Michigan Compiled Laws 207.552 and 207.803-207.809)

Alternative Fuel Vehicle (AFV) Rebate

The 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 $50,000. Rebates are available in the following amounts:

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 AFV Rebates website.

(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)

Alternative Fuels Tax and Reporting

Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent (GGE) basis. The tax rate for each alternative fuel type is based on the number of motor vehicles licensed in the state that use the specific fuel, not including vehicles the federal government owns or leases. The Arkansas Department of Finance and Administration (DFA) and the Arkansas State Highways and Transportation Department must prepare an annual report with the number of alternative fuel vehicles licensed in the state and the tax revenue generated. The DFA must establish the tax rate annually by April 1. Licensed alternative fuel suppliers must pay alternative fuel taxes for product dispensed, sold to a dealer or user, or used in a motor vehicle owned or operated by the alternative fuel supplier. Alternative fuel suppliers must prepare a monthly report on the number of GGEs of alternative fuels sold and possess a sufficient number of credits (also known as sales tickets) to cover the alternative fuel sales tax. (Reference Arkansas Code 19-6-301, 26-56-502, 26-56-601, and 26-62-201 through 26-62-209)

Alternative Fuel Vehicle Conversion Notification

Any individual or company who converts a vehicle to operate on an alternative fuel must report the conversion to the Arkansas Department of Finance and Administration (DFA) within 10 days of the conversion. An owner or operator who fails to report such a conversion may be subject to a penalty. For more information, including reporting forms, see the DFA website. (Reference Arkansas Code 26-56-315 and 26-62-214)

Biofuels Production Tax Deduction

The cost of purchasing qualified biomass feedstocks to be processed into biofuels, as well as the associated equipment, may be deducted in computing the compensating tax due under the New Mexico Gross Receipts and Compensating Tax Act. For the purpose of this incentive, biofuels include ethanol, methanol, methane, and hydrogen. (Reference New Mexico Statutes 7-9-98)

Alternative Fuel Vehicle (AFV) Special License Plate

The Arizona Department of Transportation (ADOT) must issue a special license plate to dedicated AFVs. Dedicated AFVs include vehicles powered exclusively by propane, compressed natural gas, electricity, hydrogen, a blend of hydrogen with propane or natural gas. AFVs may not be capable of operating on any other fuel type. There is no limit to the number of AFV license plates ADOT can issue. The Arizona Department of Environmental Quality (ADEQ) must inspect vehicles converted to operate solely on alternative fuel and issue an Alternative Fuel Certificate before converted vehicles may receive the AFV special plate. State or agency directors who conduct activities of a confidential nature and use AFVs are exempt from the requirement to display an AFV special license plate. For more information, see the ADOT Specialty Plates website.

(Reference Arizona Revised Statutes 1-215 and 28-2416)

Alternative Fuel and Alternative Fuel Vehicle (AFV) Use Tax Exemption

Arizona use taxes do not apply to natural gas or propane used in an AFV, AFVs converted to operate on alternative fuels, or the equipment used to convert a diesel vehicle to an AFV. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 42-5159)

Alternative Fuel Vehicle (AFV) Registration

Upon registering a motor vehicle with the Colorado Department of Revenue Division of Motor Vehicles, the vehicle owner must report the type of alternative fuel used to operate the vehicle and whether the vehicle is dedicated to one alternative fuel or uses more than one fuel. The Department of Revenue provides forms for the purpose of registering motor vehicles and must include space for the following fuel types: gasoline, diesel, propane, electricity, natural gas, methanol/M85, ethanol/E85, biodiesel, and other. For more information, see the Colorado Department of Revenue Division of Motor Vehicles website.

(Reference Colorado Revised Statutes 42-3-113)

Alternative Fuel Vehicle (AFV) Tax Credit

For tax years beginning before December 31, 2028, a one-time income tax credit is available for up to $50,000 towards the cost of purchasing a new original equipment manufacturer AFV or converting a vehicle to operate on an alternative fuel. Tax credit amounts vary depending in the gross vehicle weight rating (GVWR) of the vehicle:

The state also provides a tax credit of 10% of the total vehicle cost, up to $1,500, if the incremental cost of a new AFV cannot be determined or when an AFV is resold, as long as a tax credit has not been previously taken on the vehicle. Equipment used for conversions must be new, not previously used to modify or retrofit any vehicle, meet applicable federal and state safety standards, and must be installed by a state certified alternative fuels equipment technician. Eligible alternative fuels include natural gas, propane, and hydrogen. Tax credits may be carried forward for up to five years.

(Reference Senate Bill 1857, 2022 and Oklahoma Statutes 68-2357.22)

Alternative Fueling Infrastructure Tax Credit

For tax years beginning before December 31, 2028, a tax credit is available for up to 45% of the cost of installing commercial alternative fueling infrastructure. Eligible alternative fuels include natural gas, propane, hydrogen, and electricity. The infrastructure must be new and not previously installed or used to fuel alternative fuel vehicles. A tax credit is also available for up to 50% of the cost of installing a residential propane, compressed natural gas, or liquefied natural gas fueling system for noncommercial purposes, up to $2,500. The tax credit may be carried forward for up to five years.

(Reference Senate Bill 1857, 2022 and Oklahoma Statutes 68-2357.22)

Alternative Fuel Vehicle (AFV) and Zero Emission Vehicle (ZEV) Acquisition Requirements

To reduce fuel consumption and pollution emissions, and purchase vehicles that provide the best value on a life cycle cost basis, the state must take the following actions:

• At least 75% of state motor vehicle acquisitions must be AFVs, and the remaining 25% must be HEVs to the greatest extent possible. By 2025, 25% of state motor vehicle acquisitions must be ZEVs;
• All new light-duty trucks in the state fleet must achieve a minimum city fuel economy of 19 miles per gallon (mpg) and achieve at least a Low Emission Vehicle certification, and all new passenger vehicles in the state fleet must achieve a minimum city fuel economy of 23 mpg;
• All state agencies must purchase the most economical, fuel-efficient, and lowest emission vehicles appropriate to meet requirements and discourage the purchase of sport utility vehicles;
• All state agencies must purchase low rolling resistance tires with superior tread life for state vehicles when possible; and
• All state vehicles must be maintained according to manufacturer specifications, including specified tire pressures and ratings.

Provision for Establishment of Hydrogen Program

The Texas Department of Transportation (TxDOT) may seek funding from public and private sources to acquire and operate hydrogen vehicles and establish and operate publicly accessible hydrogen fueling stations. TxDOT must ensure that data on emissions from the vehicles, fueling stations, and related hydrogen production are monitored and compared with data on emissions from control vehicles with internal combustion engines that operate on fuels other than hydrogen. TxDOT must report the results of this monitoring, analysis, and comparison to the Texas Commission on Environmental Quality. (Reference Texas Statutes, Transportation Code 201.618)

Fleet Vehicle Procurement Requirements

When awarding a vehicle procurement contract, every city, county, and special district, including school and community college districts, may require that 75% of the passenger cars and/or light-duty trucks acquired be energy-efficient vehicles. This includes hybrid electric vehicles and alternative fuel vehicles that meet California's advanced technology partial zero emission vehicle standards. Vehicle procurement contract evaluations may consider fuel economy and life cycle factors for scoring purposes. (Reference California Public Resources Code 25725-25726)

Hydrogen Fuel Specifications

The California Department of Food and Agriculture, Division of Measurement Standards (DMS) requires that hydrogen fuel used in internal combustion engines and fuel cells must meet the SAE International J2719 standard for hydrogen fuel quality. For more information, see the DMS Hydrogen Fuel website. (Reference California Code of Regulations Title 4, Section 4180-4181)

Fuel-Efficient and Alternative Fuel Vehicle Use

The State Bureau of Fleet Management (Bureau), operated through the Mississippi Department of Finance and Administration, coordinates and promotes fuel efficiency when state agencies purchase, lease, rent, acquire, use, maintain, and dispose of vehicles. The Bureau encourages state agencies to use fuel-efficient or hybrid electric vehicles as appropriate and, when feasible, use alternative fuels, including ethanol, biodiesel, natural gas, or electricity, to operate the vehicles. At least 75% of all vehicles titled under the Bureau must have a U.S. Environmental Protection Agency estimated fuel economy rating of at least 40 miles per gallon for highway driving.

(Reference Mississippi Code 25-1-77)

Alternative Fuel Standard Development

The state of Hawaii is responsible for facilitating the development of alternative fuels and supporting the attainment of a statewide alternative fuels standard. According to this standard, alternative fuels will provide 20% of highway fuel demand by 2020 and 30% by 2030. For the purposes of the alternative fuels standard, cellulosic ethanol is equivalent to 2.5 gallons of non-cellulosic ethanol. (Reference Hawaii Revised Statutes 196-42)

Renewable Hydrogen Program

The Hawaii Department of Business, Economic Development, and Tourism established the Hawaii Renewable Hydrogen Program (Program) to manage the state's transition to a renewable hydrogen economy. A Hydrogen Investment Capital Special Fund was created to provide seed capital for, and venture capital investments in, private sector and federal projects for research, development, testing, and Program implementation. The Program is responsible for designing, implementing, and administering activities including:

• Strategic partnerships for research, development, testing, and deployment;
• Demonstration projects, including infrastructure for hydrogen production, hydrogen storage, and fueling hydrogen vehicles;
• Statewide hydrogen economy public education and outreach;
• Promotion of Hawaii's renewable hydrogen resources to potential partners and investors;
• A plan, for implementation during 2010 to 2020, to transition the Island of Hawaii to a hydrogen-fueled economy and to extend the application of the plan throughout the state; and
• Evaluation of policy recommendations that will encourage the adoption of hydrogen vehicles, fund the Hydrogen Investment Capital Special Fund, and support investment in hydrogen infrastructure.

(Reference Hawaii Revised Statutes 196-10 and 206M-63)

Alternative Fuel Vehicle (AFV) Tax Exemption Authorization - Warren

The town of Warren may allow excise tax exemptions of up to $100 for qualified AFVs registered in Warren. Qualified vehicles must be primarily fueled with one of the following: an electric motor drawing current from rechargeable batteries or fuel cells; gas produced from biomass, where biomass is defined as any organic material other than oil, natural gas, and coal; liquid, gaseous or solid synthetic fuels produced from coal; or coke or coke gas. (Reference Rhode Island General Laws 44-34-14)

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)

Hydrogen Production and Retail Requirements

All hydrogen fuel produced and sold in Michigan must meet state fuel quality requirements. Any retailer offering hydrogen fuel for sale in the state must register with, and obtain approval from, the Michigan Department of Agriculture (MDA). A hydrogen retailer must also obtain a license from the MDA for each operating retail outlet. (Reference Michigan Compiled Laws 290.642 through 290.647)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants

The Motor Vehicle Registration Fee Program (Program) provides funding for projects that reduce air pollution from on- and off-road vehicles. Eligible projects include purchasing AFVs and developing alternative fueling infrastructure. For more information, including grant funding and distribution, contact local air districts and see the Program website for more information about available grant funding and distribution from the Program. (Reference California Health and Safety Code 44220 (b))

Vehicle Battery and Engine Research Tax Credits

A corporation involved in qualified research is eligible for a tax credit equal to 10% of the qualified research expenses that the corporation incurs in Wisconsin during the taxable year. Qualified research includes, but is not limited to, automotive batteries for use in hybrid electric vehicles that improve the efficiency of electricity use, and research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles. Corporations may claim an additional tax credit equal to 5% of the amount paid or incurred during the taxable year to construct and equip new facilities or expand existing facilities used in Wisconsin for qualified research. For more information see the Wisconsin State Energy Office Wisconsin Opportunities website. (Reference Wisconsin Statutes 71.28(4)(ab 2), 71.28(4)(ad 2 and 3), and 71.28(5)(ad))

Alternative Fuel Tax Refund for Taxis

A person using alternative fuel to operate a taxi used to transport passengers may be reimbursed for the cost of the Wisconsin state fuel tax. Refund claims must be filed within one year of the fuel purchase date and must be for a minimum of 100 gallons of alternative fuel. (Reference Wisconsin Statutes 78.75(1m)(a)(1) and 78.75(1m)(b))

Alternative Fuel Vehicle Acquisition and Fuel Use Requirements

With the exception of law enforcement vehicles, all newly acquired state agency vehicles must be capable of using an alternative fuel and must use the relevant alternative fuel if it is reasonably priced and available. Alternative fuel is defined as any fuel containing 85% or more ethanol (E85), fuel blends containing at least 20% biodiesel (B20), natural gas, propane, hydrogen, electricity, or any other fuel that the U.S. Department of Energy has determined is substantially not petroleum. State agencies must also meet the annual average fuel economy requirement set by the Ohio Department of Administrative Services on all passenger automobiles purchased. Law enforcement and emergency rescue work vehicles are exempt from this requirement. The Office of the Ohio Treasurer established a biodiesel revolving fund in which funds appropriated by the Ohio General Assembly can be used to pay for the incremental cost of biodiesel used in state owned or leased diesel vehicles. (Reference Ohio Revised Code 125.831-125.836)

Alternative Fuel and Advanced Vehicle System Manufacturing Incentive

The Alternative Energy Product Manufacturers Tax Credit provides credit against combined reporting taxes (gross receipts, compensating, and withholding) for qualified manufacturers of alternative energy products, including hydrogen and fuel cell vehicle systems, and electric and hybrid electric vehicles. The credit is limited to 5% of qualifying expenditures, and manufacturers must fulfill job creation requirements to be eligible. Qualified manufacturers must apply for and receive approval from the New Mexico Taxation and Revenue Department before they may claim the credit. For more information, including eligibility and application details, refer to the Alternative Energy Product Manufacturers Tax Credit website. (Reference New Mexico Statutes 7-9J-1 through 7-9J-8)

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. For more information, including current requests for proposals, see the CFAT website.

Joint Use of Government Fueling Infrastructure

To the extent practical, an Arizona state agency or political subdivision that operates an alternative fueling station must allow vehicles, other state agencies, or political subdivisions to fuel at the station. For the purpose of this requirement, alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 49-572)

Vehicle Research and Development Grants

The Indiana 21st Century Research and Technology Fund provides grants and loans to support economic development in high technology industry clusters. Incentives are available for qualified alternative fuel technologies and fuel-efficient vehicle development and production. For more information, see the Indiana Venture Development website. (Reference Indiana Code 5-28-16-2)

Alternative Fuel Production Tax Credits

The High Quality Jobs Program offers state tax incentives to business projects for the production of biomass or alternative fuels. Incentives may include an investment tax credit equal to a percentage of the qualifying investment, amortized over five years; a refund of state sales, service, or use taxes paid to contractors or subcontractors during construction; an increase of the state's refundable research activities credit; and a local property tax exemption of up to 100% of the value added to the property. For more information, refer to the High Quality Jobs Program website. (Reference Iowa Code 15.335 and 422.10)

Renewable Fuels Promotion

Recognizing that biofuels such as ethanol and biodiesel are an important part of the state's energy economy, the North Dakota Legislature adopted a low-emission technology initiative, prioritizing the use of agricultural, forestry, and other natural resources as sources of fuel and created the Energy Policy Commission (Commission) to identify and make recommendations on low-emission technologies. The Commission may also provide grants, loans, or other forms of financial assistance for research, demonstration, development, or commercialization projects related to low-emission technologies. Financial awards given by the Commission must be funded by the clean sustainable energy fund. Low-emission technology includes biofuels, hydrogen, natural gas, and energy efficiency initiatives. The Commission must provide a report to the legislature biennially. For more information, see North Dakota Department of Commerce EmPower North Dakota website. (Reference North Dakota Century Code 17-01-01)

Biofuel Labeling Requirements

Ethanol and biodiesel fuel retailers must label retail dispensing units with the price, name, and main components of the fuel or fuel blend being sold. The labeling must follow established labeling specifications for petroleum-based fuels. Suppliers of ethanol and biodiesel must provide fuel retailers with an invoice stating the fuel blend. Alcohol fuel blends containing at least 1% of alcohol by volume must also be clearly labeled at the dispenser and on any price advertisements. Biodiesel and biodiesel blends must be identified by the capital letter "B" followed by the numerical value representing the percentage of biodiesel fuel. Additional specifications may apply. (Reference North Dakota Century Code 23.1-13 and 33.1-34-01)

Alternative Fuel and Fuel-Efficient Vehicle Acquisition and Use Requirements

The Tennessee Department of General Services must ensure that at least 25% of newly purchased passenger motor vehicles procured for use in areas designated as ozone nonattainment areas are all-electric vehicles (EVs), hybrid electric vehicles (HEVs), natural gas vehicles (NGVs), or propane powered vehicles, provided that such vehicles are available at the time of procurement. If these vehicles are not available, conventional gasoline vehicles achieving an average fuel economy of at least 25 miles per gallon (mpg) may satisfy the requirement. In areas not designated as ozone nonattainment areas, at least 25% of newly purchased passenger motor vehicles must be EVs, HEVs, NGVs, propane powered vehicles, or conventional gasoline vehicles achieving an average fuel economy of at least 25 mpg. For non-passenger vehicles, state fleets must make a reasonable effort to purchase at least 5% of these vehicles as natural gas or propane vehicles.

State fleets must make every effort to ensure that 100% of newly purchased motor vehicles are energy-efficient vehicles. Energy-efficient vehicles are defined as passenger vehicles that use alternative fuels, as defined by the Energy Policy Act of 1992; HEVs; conventional gasoline vehicles achieving an average fuel economy of at least 25 mpg; or vehicles powered by ultra-low sulfur diesel achieving an average fuel economy of at least 30 mpg. Additionally, state agencies should use ethanol and biodiesel in appropriate state-owned vehicles whenever possible and support the development of biofuels fueling infrastructure.

The Tennessee Department of General Services must inventory the state’s passenger vehicle fleet and prepare annual progress reports that outline the fleet’s cost savings, pollution avoidance, and petroleum displacement.

(Reference Tennessee Code 4-3-1109)

School Bus Emissions Reduction

Each full-sized school bus with a Model Year (MY) 1994 or newer engine must be equipped with specific emissions control systems, including either: a closed crankcase filtration system and a level 1, level 2, or level 3 device; an engine that the U.S. Environmental Protection Agency (EPA) has certified as meeting MY 2007 emissions standards; or use of compressed natural gas or other alternative fuel that EPA or the California Air Resources Board has certified to reduce particulate matter emissions by at least 85% as compared to ultra-low sulfur diesel fuel. Beginning January 1, 2035, school districts may only purchase zero-emission school buses, and all school buses in Connecticut must be zero emission by 2040. School districts within environmental justice communities as of July 1, 2022, must transition to zero emission buses by January 1, 2030. School districts may enter zero-emission school bus contracts for 10 year periods.

(Reference Connecticut General Statutes 14-164o and Senate Bill 4, 2022)

Funds for School District Alternative Fuel Use

A portion of any penalty assessed for violations of air pollution control laws must be deposited in the county school district fund where the violation occurred. The local air pollution control board must approve expenditures from the fund, which are limited to education programs on topics relating to air quality and projects to improve air quality, including the purchase and installation of equipment to retrofit district school buses to operate on biodiesel, compressed natural gas, or a similar fuel that reduces emissions. (Reference Nevada Revised Statutes 445B.500)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans

The Nebraska Energy Office administers the Dollar and Energy Saving Loan Program, which makes low-cost loans available for a variety of alternative fuel projects, including the replacement of conventional vehicles with AFVs; the purchase of new AFVs; the conversion of conventional vehicles to operate on alternative fuels; and the construction or purchase of fueling stations or equipment. The maximum loan amount is $500,000 per borrower, and the interest rate is 5% or less. For more information, see the Dollar and Energy Saving Loans website.

Hydrogen and Fuel Cell Tax Exemption

The following are exempt from state sales tax: 1) any device, equipment, or machinery operated by hydrogen or fuel cells; 2) any device, equipment, or machinery used to generate, produce, or distribute hydrogen and designated specifically for hydrogen or fuel cell applications; and 3) any device, equipment, or machinery used predominantly for manufacturing, or research and development involving hydrogen or fuel cell technologies. (Reference South Carolina Code of Laws 12-36-2120(71))

Alternative Fuel and Vehicle Incentives

The California Energy Commission (CEC) administers the Clean Transportation Program (Program) to provide financial incentives for businesses, vehicle and technology manufacturers, workforce training partners, fleet owners, consumers, and academic institutions with the goal of developing and deploying alternative and renewable fuels and advanced transportation technologies. Funding areas include:

• Electric vehicles and charging infrastructure;
• Hydrogen vehicles and refueling infrastructure;
• Medium- and heavy-duty zero emission vehicles;
• Natural gas vehicles and refueling infrastructure;
• Biofuels; and,
• Workforce development.

(Reference California Health and Safety Code 44272 - 44273 and California Code of Regulations, Title 13, Chapter 8.1)

Low Carbon Fuel Standard

California's Low Carbon Fuel Standard (LCFS) Program requires a reduction in the carbon intensity of transportation fuels that are sold, supplied, or offered for sale in the state through 2030. The California Air Resources Board regulations require transportation fuel producers and importers to meet specified average carbon intensity requirements for fuel. LCFS regulated fuels include, natural gas, electricity, hydrogen, gasoline mixed with 10% corn-derived ethanol higher, biomass-based diesel, and propane. Non-biomass-based alternative fuels that are supplied in California for use in transportation at an aggregated volume of less than 3.6 million gasoline gallon equivalents per year are exempt from LCFS requirements. Other exemptions apply for transportation fuel used in specific applications. The LCFS Program allows producers and importers to generate, acquire, transfer, bank, borrow, and trade credits. Fuel producers and importers regulated under the LCFS must meet quarterly and annual reporting requirements. For more information, see the LCFS Program website. (Reference California Code of Regulations Title 17, Section 95480-95490 and California Health and Safety Code 38500-38599)

Clean Transportation Promotion

The state of Hawaii has signed a memorandum of understanding (MOU) with the U.S. Department of Energy to collaborate to produce 70% of the state’s energy needs from energy-efficient and renewable sources by 2030 and 100% of the state’s energy needs from energy-efficient and renewable sources by 2045. This effort is part of the Hawaii Clean Energy Initiative. The goals of the partnership include defining the structural transformation required to transition the state to a clean energy-dominated economy; demonstrating and fostering innovation in the use of clean energy, including alternative fuels and advanced vehicle technologies; creating opportunities for the widespread distribution of clean energy benefits; establishing an open learning model for other states and entities to adopt; and building a workforce with cross-cutting skills to support a clean energy economy in the state. For more information, see the MOU and Hawaii Clean Energy Initiative website.

(Reference Hawaii Revised Statutes 196-10.5)

State Agency Preference for Alternative Fuel and Advanced Vehicles

State agencies purchasing motor vehicles must give preference to hybrid, plug-in hybrid electric, all-electric, biodiesel, hydrogen, fuel cell, or flexible fuel vehicles when the performance, quality, and anticipated life cycle costs are comparable to other available motor vehicles. (Reference South Carolina Code of Laws 1-11-310)

State Hybrid Electric (HEV) Alternative Fuel Vehicle (AFV) Acquisition Requirements

When purchasing new motor vehicles, the Commonwealth of Massachusetts must purchase HEVs or AFVs to the maximum extent feasible and consistent with the ability of such vehicles to perform their intended functions. HEVs and AFVs must be acquired at a rate of at least 5% annually for all new motor vehicle purchases so that not less than 50% of the motor vehicles the Commonwealth owns and operates will be HEVs or AFVs by 2018.

State fleets must also acquire AFVs according to the requirements of the Energy Policy Act (EPAct) of 1992 and the Massachusetts Office of Vehicle Management (OVM) must approve any light-duty vehicle acquisition. All agencies must purchase the most economical, fuel-efficient, and low emission vehicles appropriate to their mission. OVM, in collaboration with the Massachusetts Department of Energy Resources, will set new minimum standards for vehicle fuel economy and work with agencies to acquire vehicles that provide the best value for the Commonwealth on a total cost of ownership basis.

By July 1 of each year, OVM must compile a report detailing the progress made towards these requirements.

(Reference Massachusetts General Laws Chapter 7, Section 9A)

Alternative Fuel and Hybrid Electric Vehicle Retrofit Regulations

Converting a vehicle to operate on an alternative fuel in lieu of the original gasoline or diesel fuel is prohibited unless the California Air Resources Board (CARB) has evaluated and certified the retrofit system. CARB will issue certification to the manufacturer of the system in the form of an Executive Order once the manufacturer demonstrates compliance with the emissions, warranty, and durability requirements. A manufacturer is defined as a person or company who manufactures or assembles an alternative fuel retrofit system for sale in California; this definition does not include individuals wishing to convert vehicles for personal use. Individuals interested in converting their vehicles to operate on an alternative fuel must ensure that the alternative fuel retrofit systems used for their vehicles have been CARB certified. For more information, see the CARB Alternative Fuel Retrofit Systems website.

A hybrid electric vehicle that is Model Year 2000 or newer and is a passenger car, light-duty truck, or medium-duty vehicle may be converted to incorporate off-vehicle charging capability if the manufacturer demonstrates compliance with emissions, warranty, and durability requirements. CARB issues certification to the manufacturer and the vehicle must meet California emissions standards for the model year of the original vehicle.

(Reference California Code of Regulations Title 13, Section 2030-2032, and California Vehicle Code 27156)

Vehicle Acquisition and Petroleum Reduction Requirements

The California Department of General Services (DGS) is responsible for maintaining specifications and standards for passenger cars and light-duty trucks that are purchased or leased for state office, agency, and department use. These specifications include minimum vehicle emissions standards and encourage the purchase or lease of fuel-efficient and alternative fuel vehicles (AFVs). Specifically, DGS must reduce or displace the fleet's consumption of petroleum products by 20% by January 1, 2020, as compared to the 2003 consumption level. Beginning in fiscal year 2024, DGS must also ensure that at least 50% of the light-duty vehicles purchased by the state are zero emission vehicles (ZEVs). Further, at least 15% of DGS' fleet of new vehicles with a gross vehicle weight rating of 19,000 pounds or more must be ZEVs by 2025, and at least 30% by 2030.

On an annual basis, DGS must compile information including, but not limited to, the number of AFVs and hybrid electric vehicles acquired, the locations of the alternative fuel pumps available for those vehicles, and the total amount of alternative fuels used. Vehicles the state owns or leases that are capable of operating on alternative fuel must operate on that fuel unless the alternative fuel is not available. DGS is also required to:

• Take steps to transfer vehicles between agencies and departments to ensure that the most fuel-efficient vehicles are used and to eliminate the least fuel-efficient vehicles from the state's motor vehicle fleet;
• Submit annual progress reports to the California Department of Finance, related legislative committees, and the general public via the DGSwebsite;
• Encourage other agencies to operate AFVs on the alternative fuel for which they are designed, to the extent feasible;
• Encourage the development of commercial fueling infrastructure at or near state vehicle fueling or parking sites;
• Work with other agencies to incentivize and promote state employee use of AFVs through preferential or reduced-cost parking, access to electric vehicle charging, or other means, to the extent feasible; and
• Establish a more stringent fuel economy standard than the 2007 standard.

(Reference California Public Resources Code 25722.5-25722.11 and 25724)

Low Emission Vehicle (LEV) Standards

California's LEV II exhaust emissions standards apply to Model Year (MY) 2004 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles meeting specified exhaust standards. The LEV II standards represent the maximum exhaust emissions for LEVs, Ultra LEVs, and Super Ultra LEVs, including flexible fuel, bi-fuel, and dual-fuel vehicles when operating on an alternative fuel. MY 2009 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles must meet specified fleet average greenhouse gas (GHG) exhaust emissions requirements. Each manufacturer must comply with these fleet average GHG requirements, which are based on California Air Resources Board (CARB) calculations. Bi-fuel, flexible fuel, dual-fuel, and grid-connected hybrid electric vehicles may be eligible for an alternative compliance method.

In December 2012, CARB finalized regulatory requirements, referred to as LEV III, which allow vehicle manufacturer compliance with the U.S. Environmental Protection Agency's GHG requirements for MY 2017-2025 to serve as compliance with California's adopted GHG emissions requirements for those same model years. For more information, see the CARB LEVII and LEV III Program websites for more information. (Reference California Code of Regulations Title 13, Section 1961-1961.3)

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Infrastructure and Battery Tax Credit

Public lands used for installing, maintaining, and operating EV chargers are exempt from leasehold excise taxes. Additionally, the state sales and use taxes do not apply to EV and FCEV batteries or fuel cells; labor and services for installing, repairing, altering, or improving EV and FCEV batteries fuel cells, or EV and FCEV infrastructure; the sale of property used for EV and hydrogen fueling infrastructure; and the sale of zero emission buses. (Reference Revised Code of Washington 82.29A.125, 82.08.816, and 82.12.816)

Fuel-Efficient Green Fleets Policy and Fleet Management Program Development

The Alabama Legislature established a Green Fleets Review Committee (Committee) and Green Fleets Policy (Policy) outlining a procurement procedure for state vehicles based on criteria that includes fuel economy and life cycle costing. State fleet managers must classify their vehicle inventory for compliance with the Policy and submit annual plans for procuring fuel-efficient vehicles. These plans must reflect a 4% annual increase in average fleet fuel economy for light-duty vehicles, a 3% annual increase in average fleet fuel economy for medium-duty vehicles, and a 2% annual increase in average fleet fuel economy for heavy-duty vehicles per fiscal year. Government entities must manage and operate their fleets in a manner that is energy efficient, minimizes emissions, and reduces petroleum dependency by using specified proven technology the Committee identifies.

(Reference Code of Alabama 41-17A-1 through 41-17A-6)

Alternative Fuel Economic Development

To stimulate local economic development, landowners may apply to amend the local government comprehensive plan to expand existing uses of rural agricultural industrial centers to include facilities that prepare biomass materials that can be used for the production of fuel, renewable energy, bioenergy, or alternative fuel. In addition, permitting agencies may expedite applications and local comprehensive plan amendments submitted for projects resulting in the production of biofuels or construction of a biofuel processing facility. (Reference Florida Statutes 163.3177 and 403.973)

Access to State Alternative Fueling Stations

The Oklahoma Office of Management and Enterprise Services (OMES) Fleet Management Division may construct, install, acquire, operate, and provide alternative fueling infrastructure where public access to alternative fuel infrastructure is not readily available. OMES must discontinue public access to their fueling stations if a privately owned alternative fueling station opens within a five-mile radius. Alternative fuels include natural gas, propane, ethanol, methanol, biodiesel, electricity, and hydrogen. (Reference Oklahoma Statutes 74-78 and 74-130.2)

Alternative Fuel and Advanced Vehicle Acquisition and Rental Requirements

State agencies must coordinate vehicle acquisition efforts to transition light-duty state fleet vehicles to 100% zero emission vehicles (ZEVs) by 2035. To support the state fleet transition to ZEVs, state and county agencies must purchase light-duty vehicles that reduce petroleum consumption. Vehicle purchasing priority is as follows:

1. ZEVs;
2. Plug-in hybrid electric vehicles (PHEVs);
3. Other alternative fuel vehicles; and
4. Hybrid electric vehicles (HEVs).

Exemptions may apply. State agencies must purchase the most fuel-efficient vehicle available that meets agency needs, use alternative fuels and ethanol blended gasoline when available, evaluate a purchase preference for biodiesel blends, and promote the efficient operation of vehicles. For the purpose of this requirement, an alternative fuel is defined as an alcohol fuel, an alcohol fuel blend containing at least 85% alcohol, natural gas, liquefied petroleum gas (propane), hydrogen, biodiesel, a biodiesel blend containing at least 20% biodiesel, a fuel derived from biological materials, or electricity generated from off-board energy sources.

State employees renting a vehicle for government business must rent either EVs or HEVs. Rental rates for EVs and HEVs must be comparable to that of a conventional internal combustion engine vehicle equivalent.

For more information, see the [Hawaii State Energy Offices Vehicle Purchasing Guidelines website.

(Reference Hawaii Revised Statutes 103D-412 and 196-9)

Zero Emission Bus (ZEB) Implementation Plan

The Connecticut Department of Transportation, in consultation with the Connecticut Center for Advanced Technology, developed the [Connecticut Hydrogen and Fuel Cell Deployment Transportation Strategy: 2011-2050[(http://chfcc.org/wp-content/uploads/2014/10/CT-Hydrogen-Trans-Strategy1-13-10-Final-Plan2.pdf) to identify strategies to expand the availability and use of hydrogen fuel and renewable energy sources. The strategy includes a plan to implement zero emission buses on a state-wide basis, addresses the technological, facility, and financial arrangements necessary to fully implement a zero emissions bus fleet, and identifies specific locations for hydrogen fueling stations along state highways and other locations.

(Reference Connecticut General Statutes 13b-38dd)

Clean Fleet Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Texas Clean Fleet Program (TCFP) as part of the Texas Emissions Reduction Plan (TERP). The TCFP provides grants to fleets to replace existing fleet vehicles with alternative fuel vehicles (AFVs) or hybrid electric vehicles (HEVs). An entity that operates a fleet of at least 75 vehicles and commits to placing 20 or more qualifying vehicles in service for use in the Clean Transportation Zone may be eligible. Qualifying AFV or HEV replacements must reduce emissions of nitrogen oxides or other pollutants by at least 25% as compared to baseline levels and must replace vehicles that meet operational and fuel usage requirements. Neighborhood electric vehicles do not qualify. For more information, including current application periods, see the TCEQ TERP website. (Reference Texas Statutes, Health and Safety Code 386 and 392, and Texas Administrative Code 114.650-114.658)

Authorization for High Occupancy Vehicle (HOV) Lane Exemption

The Nevada Department of Transportation, in consultation with the U.S. Department of Transportation Federal Highway Administration and U.S. Environmental Protection Agency, may establish a program allowing federally certified alternative fuel vehicles to operate in HOV lanes regardless of the number of passengers. (Reference Nevada Revised Statutes 484A.463)

Clean Transportation Fuel Standards

The Oregon Department of Environmental Quality (DEQ) administers the Oregon Clean Fuels Program (Program), which requires fuel producers and importers to register, keep records of, and report the volumes and carbon intensities of the fuels they provide in Oregon. Phase 2 of the Program, implemented in 2016, requires fuel suppliers to reduce the carbon content of transportation fuels.

In 2020, a new goal was implemented to reduce the carbon content of transportation fuels by 20% below 2015 levels by 2030, and 25% below 2015 levels by 2035.

DEQ must conduct rulemaking for the Program to support greater electric vehicle (EV) adoption. DEQ must also develop a method to aggregate and monetize all eligible EV credits in the Program to assist in achieving the state goal of 50,000 registered EVs in Oregon by 2020. For more information, see the DEQ Oregon Clean Fuels Program website.

(Reference Executive Order 20-04, 2020, Oregon Revised Statutes 468A.266, and Oregon Administrative Rules 340-253)

State Transportation Plan

The California Department of Transportation (Caltrans) must publish a California Transportation Plan (Plan) every five years, beginning December 31, 2020. The Plan must address how the state will achieve maximum feasible emissions reductions, taking into consideration the use of alternative fuels, new vehicle technology, and tailpipe emissions reductions. Caltrans must consult and coordinate with related state agencies, air quality management districts, public transit operators, and regional transportation planning agencies. Caltrans must also provide an opportunity for public input. Caltrans must submit a final draft of the Plan to the legislature and governor. A copy of the 2020 report is available on the Caltrans website. Caltrans must also review the Plan and prepare a report for the legislature and governor that includes actionable, programmatic transportation system improvement recommendations every five years. (Reference California Government Code 65070-65073)

Alternative Fuel Labeling Requirements

Retailers offering alternative fuel for sale must ensure dispensers are labeled with information to help consumers make informed decisions about fueling a vehicle, including the name of the fuel and the minimum percentage of the main component of the fuel. Labels may also list the percentage of other fuel components. This requirement applies to, but is not limited to, the following fuel types: methanol, denatured ethanol, and/or other alcohols; mixtures containing 85% or more by volume of methanol and/or other alcohols; mixtures containing more than 10% but less than 83% by volume of ethanol; natural gas; propane; hydrogen; coal derived liquid biofuel; and electricity.

Fuel dispensers distributing biodiesel blends containing more than 5% biodiesel by volume must include the percentage of biodiesel included. For ethanol blends containing no greater than 50% ethanol by volume, retailers must post the exact percentage of ethanol concentration, rounded to the nearest multiple of 10. For ethanol blends containing more than 50% but no greater than 83% ethanol by volume, retailers must (1) post the exact percentage of ethanol concentration, (2) post the percentage rounded to the nearest multiple of 10, or (3) post notice that the fuel contains 51% to 83% ethanol.

Electric vehicle supply equipment (EVSE) manufacturers must determine and disclose (via a delivery ticket or permanent label or marking) kilowatt capacity, voltage, whether the voltage is alternating current or direct current, amperage, and whether the system is conductive or inductive.

(Reference 81 Federal Register 2054 and 16 CFR 306 and 309)

Plug-In Hybrid and Zero Emission Light-Duty Vehicle Rebates

The Clean Vehicle Rebate Project (CVRP) offers rebates for the purchase or lease of qualified vehicles. Qualified vehicles are light-duty electric vehicles (EVs), fuel cell electric vehicles (FCEVs), and plug-in hybrid electric vehicles (PHEVs) the California Air Resources Board (CARB) has approved or certified. The rebates are for up to $4,500 for FCEVs, $2,000 for EVs, $1,000 for PHEVs, and $750 for zero emission motorcycles. Rebates are available on a first-come, first-served basis to California residents who purchase or lease new eligible vehicles. Residents of San Diego County may be eligible for a preapproved rebate through the CVRP Rebate Now pilot. Manufacturers must apply to CARB to have their vehicles included in the CVRP.

Individuals are eligible for the rebate based on gross annual income, as stated on the individual’s federal tax return. Individuals with a gross annual income below the following thresholds are eligible for all rebates except those that apply to FCEVs:

• $135,000 for single filers
• $175,000 for head-of-household filers
• $200,000 for joint filers

For individuals with low and moderate household incomes of less than or equal to 400% of the federal poverty level, rebates are increased by $2,500. Increased rebates are available for CARB-approved FCEVs, PHEVs, and EVs. CARB must provide outreach to low income households and communities to raise awareness about CVRP. Through January 1, 2022, CARB must prioritize rebate payments for low income applicants.

CARB determines annual funding amounts for the CVRP, which is expected to be effective through 2023. For more information, including information on income verification, a list of eligible vehicles, and instructions on how to apply, see the CVRP webiste.

(Reference California Health and Safety Code 44274 and 44258)

Low Carbon Fuel and Fuel-Efficient Vehicle Acquisition Requirement

Washington state agencies must consider purchasing low carbon fuel vehicles or converting conventional vehicles to use low carbon fuels when financially comparable over the vehicle's useful life. Low carbon fuels include hydrogen, biomethane, electricity, or natural gas blends of at least 90%. State agencies must achieve an average fuel economy of 36 miles per gallon (mpg) for passenger vehicle fleets in motor pools and leased conventional vehicles. State agencies must also purchase low carbon fuel vehicles or, when purchasing new conventional vehicles, achieve an average fuel economy of 40 mpg for light-duty passenger vehicles and 27 mpg for light-duty vans and sport utility vehicles. When calculating average fuel economy, emergency response vehicles, passenger vans with a gross vehicle weight rating of 8,500 pounds or greater, off-road vehicles, low carbon fuel vehicles, and vehicles driven less than 2,000 miles per year are excluded. (Reference Revised Code of Washington 43.19.622)

Green Jobs Tax Credit

Qualified employers are eligible for a $500 tax credit for each new green job created that offers a salary of at least $50,000, for up to 350 jobs per employer. The credit is allowed for the first five years that the job is continuously filled. For the purposes of this tax credit, a green job is defined as employment in industries relating to renewable or alternative energy, including hydrogen and fuel cell technology, landfill gas, and biofuels. For more information, see the Virginia Department of Taxation website.

(Reference Virginia Code 58.1-439.12:05)

Alternative Fuels Tax Exemption and Refund for Government Fleet Vehicles

State excise tax does not apply to special fuels, including gaseous special fuels, when used in state or federal government owned vehicles. Special fuels include natural gas, propane, hydrogen, and fuel suitable for use in diesel engines. In addition, state excise tax paid on special fuels used in state or federal government vehicles is subject to a refund, as long as the tax was originally paid directly to a special fuel vendor. The tax refund is not available for special fuels used while idling. Idling means a period of time greater than 15 minutes when the motor vehicle is stationary with the engine operating.

(Reference Idaho Statutes 63-2401, 63-2402, and 63-2423)

Municipal Alternative Fuel Vehicle (AFV) Acquisition Requirements

Local governments in Maricopa, Pinal, and Yavapai counties with a population of more than 1.2 million people must develop and implement vehicle fleet plans to encourage and increase the use of alternative fuels in municipal fleets. At least 75% of the total municipal fleet must operate on alternative fuels. Alternatively, municipal fleets may meet AFV acquisition requirements through biodiesel or other alternative fuel use or apply for waivers. Local governments in counties with populations of more than 500,000 people with bus fleets must purchase or convert buses to operate on alternative fuels. For the purpose of these requirements, alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, E85, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 9-500.04, 49-474.01, 49-541, and 49-571)

Federal Fleet Operation Regulations

Federal fleets based in Arizona that operate primarily in counties with a population of more than 1.2 million people must be comprised of at least 90% alternative fuel vehicles. Alternatively, federal fleets may meet acquisition requirements through alternative fuel use or apply for waivers. For the purpose of these requirements, alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 49-573)

Battery Manufacturing Tax Incentive

For taxation purposes, the taxable fair market value of manufacturing machinery and equipment purchased for use at a renewable energy manufacturing facility may be reduced by 20% of the original cost. Qualified renewable energy manufacturing facilities include those manufacturing batteries for hybrid electric, fuel cell, or other motor vehicles certified by the South Carolina Energy Office. Qualified facilities must invest at least $100 million in the project and create at least 200 new full-time jobs with an average compensation level of 150% of the annual per capita income in South Carolina or the county where the facility is located, whichever is less. Additional restrictions apply. (Reference South Carolina Code of Laws 12-10-30, 12-15-20, 12-15-30, 12-37-930)

Hydrogen Fueling Infrastructure Permitting and Safety

Individuals or entities must submit an application and pay a $10 fee to the State Fire Marshall or a certified designee before renovating or constructing a facility to store or dispense hydrogen fuel. The South Carolina State Fire Marshall must ensure that the state laws governing hydrogen fueling infrastructure are executed faithfully; require compliance with nationally recognized fire prevention and protection standards for hydrogen fueling infrastructure; develop training and certification requirements for county and municipal officials to permit hydrogen fueling infrastructure; develop minimum requirements for the design, construction, location, installation, and operation of equipment for storing, handling, and dispensing hydrogen; and perform random inspections of licensed fueling infrastructure. (Reference South Carolina Code of Laws 23-9-20 and 23-9-510 through 23-9-570)

Advanced Transportation Tax Exclusion

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) provides a sales and use tax exclusion for qualified manufacturers of advanced transportation products, components, or systems that reduce pollution and energy use and promote economic development. Incentives are available until December 31, 2025. For more information, including application materials, see the CAEATFA Sales and Use Tax Exclusion Program website. (Reference California Public Resources Code 26000-26017)

School Bus Retrofit Reimbursement

The Illinois Department of Education will reimburse any qualifying school district for the cost of converting gasoline buses to more fuel-efficient engines or to engines using alternative fuels. Restrictions may apply. (Reference 105 Illinois Compiled Statutes 5/29-5)

Ethanol and Hydrogen Production Facility Permits

The Illinois Environmental Protection Agency (IEPA) may issue air pollution control permits through the Bureau of Air for thermochemical conversion technology facilities that are constructed and operated to demonstrate the process of applying heat to woody biomass to produce ethanol or hydrogen for use as transportation fuel. Permit applicants must perform emissions testing during the required permit period and submit the results of that testing to the IEPA within 60 days after completion. (Reference 415 Illinois Compiled Statutes 5/39.9)

Alternative Fuel Signage

The Ohio Turnpike Commission allows businesses to place their logos on directional signs within the right-of-way of state turnpikes. An alternative fuel retailer may include a marking or symbol within their logo indicating that it sells one or more types of alternative fuel. Alternative fuels are defined as any fuel containing 85% or more ethanol (E85), fuel blends containing at least 20% biodiesel (B20), natural gas, propane, hydrogen, electricity, or any fuel that the U.S. Department of Energy has determined is substantially not petroleum. For more information, see the Ohio Turnpike Commission website. (Reference Ohio Revised Code 125.831 and 5537.30)

Alternative Fuel Tax Exemption

Alternative fuel distributed by or used for federal government, state government, or Indian nation, tribe, or pueblo purposes is exempt from the state excise tax. (Reference New Mexico Statutes 7-16B-5)

Alternative Fuel Use Requirement

West Virginia higher education governing boards must use alternative fuels to the maximum extent feasible. (Reference West Virginia Code 18B-5-9)

Zero Emission Vehicle (ZEV) Infrastructure Promotion

The Maryland Zero Emission Electric Vehicle Infrastructure Council (ZEEVIC) promotes the use of promotes the use of ZEVs, including electric vehicles (EVs) and fuel cell electric vehicles (FCEV), in the state. Specific responsibilities of ZEEVIC include the following:

• Develop policies and an action plan to promote and facilitate the integration of ZEVs into the Maryland transportation network;
• Assist in developing and coordinating statewide standards for streamlined permitting and installation of electric vehicle charging and hydrogen fueling equipment;
• Develop recommendations for a statewide EV charging and FCEV refueling infrastructure plan, including standard pricing information displays;
• Increase and support consumer awareness and ownership of ZEVs through public outreach;
• Recommend incentives to support private-sector investment in ZEVs;
• Develop targeted policies to support fleet purchases of ZEVs;
• Develop charging solutions for multiunit dwellings;
• Encourage local and regional efforts to promote the use of ZEVs;
• Develop model procurement practices for light-duty vehicles that include an evaluation of the vehicle lifecycle costs inclusive of estimated fuel cost over the anticipated life of the vehicle;
• Recommend policies that support EV charging and FCEV fueling from clean energy sources;
• Establish performance measures for meeting ZEV related employment, infrastructure, and regulatory goals; and
• Pursue other policies, goals, and objectives that promote the adoption of ZEVs.

The Maryland Department of Transportation must provide staff support to ZEEVIC with the assistance of the Maryland Energy Administration and the Maryland Public Service Commission. For more information, including interim reports, see the Maryland Zero Emission Electric Vehicle Infrastructure Council website and the MarylandEV website.

(Reference Chapter 378, Acts of 2015, Chapter 213, Acts of 2019, and Chapter 118, Acts of 2020)

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)

State Agency Sustainability Plan and Requirements

Each state department or agency must prepare an annual sustainability plan that includes ways to modify vehicle use practices and report annually on progress towards implementing their plan. Each state agency plan must be based on following targets and mandates: - When reasonably possible, state agencies must purchase on-road vehicles that use alternative fuels, including biodiesel blends of 20% (B20) or greater, compressed or liquefied natural gas, ethanol blends of 70% (E70) or greater, hydrogen, propane, or electricity, or (with the exception of buses, snowplows, and construction vehicles) have a fuel economy rating that exceeds 30 miles per gallon (mpg) in the city and 35 mpg on the highway; - When reasonably possible, state employees must fuel vehicles capable of operating on an alternative fuel with that fuel; - State agencies must increase the use of renewable fuels derived from agricultural products or waste products; and - State agencies must increase the use of technology for delivering information and services in order to reduce reliance on the state’s fleet.

(Reference Minnesota Statutes 16C.135 and 16C.137)

Public Utility Definition

A corporation or individual that owns, controls, operates, or manages a facility that supplies electricity to the public exclusively to charge light-, medium-, and heavy-duty all-electric and plug-in hybrid electric vehicles, compressed natural gas to fuel natural gas vehicles, or hydrogen as a motor vehicle fuel is not defined as a public utility. (Reference California Public Utilities Decision 20-09-025, 2020 and California Public Utilities Code 216)

Alternative Fuel Vehicle Inspection and Permit

The Utah State Tax Commission (Commission) may require vehicles operating on clean fuels to be inspected for safe operation. In addition, clean fuel vehicles that have a gross vehicle weight rating of more than 26,000 pounds or have more than three axels are required to obtain a special fuel user permit from the Commission. Clean fuels are defined as propane, natural gas, electricity, and hydrogen. (Reference Utah Code 59-13-102, 59-13-303, and 59-13-304)

Alternative Fuel and Hybrid Electric Vehicle (HEV) Emissions Testing Exemption

Vehicles powered exclusively by natural gas, propane, hydrogen, a combination of compressed natural gas and hydrogen, or electricity are exempt from the Virginia emissions inspection program. Qualified HEVs with U.S. Environmental Protection Agency fuel economy ratings of at least 50 miles per gallon (city) are also exempt from the emissions inspection program unless remote sensing devices indicate the HEV may not meet current emissions standards. For more information, including a list of HEVs that qualify, see the Virginia Department of Motor Vehicles Emissions Inspections website. (Reference Virginia Code 46.2-1177 through 46.2-1178 and 46.2-749.3)

Alternative Fuel and Advanced Vehicle Rebate - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District (SJVAPCD) administers the Drive Clean! Rebate Program, which provides rebates for the purchase or lease of eligible new vehicles, including qualified natural gas, hydrogen fuel cell, propane, all-electric, plug-in electric vehicles, and zero emission motorcycles. The program offers rebates of up to $3,000, which are available on a first-come, first-served basis for residents and businesses located in the SJVAPCD. For more information, including a list of eligible vehicles and other requirements, see the SJVAPCD Drive Clean! Rebate Program website.

Zero Emission Vehicle (ZEV) Promotion Plan

All California state agencies must support and facilitate the rapid commercialization of ZEVs in California. In particular, the Air Resources Board, Energy Commission (CEC), Public Utilities Commission, and other relevant state agencies must work with the private sector to establish benchmarks to achieve targets for ZEV commercialization and deployment. These targets include:

• By 2020, the state will have established adequate infrastructure to support one million ZEVs;
• By 2025, there will be 1.5 million ZEVs on the road in California and clean, efficient vehicles will displace 1.5 billion gallons of petroleum fuels annually;
• By 2025, there will be 200 hydrogen fueling stations and 250,000 electric vehicle (EV) chargers, including 10,000 direct current fast chargers, in California;
• By 2030, there will be 5 million ZEVs on the road in California; and
• By 2050, greenhouse gas emissions from the transportation sector will be 80% less than 1990 levels.

• Develop new criteria for clean vehicle incentive programs to encourage manufacturers to produce clean, affordable cars;
• Update the 2016 ZEV Action plan, with a focus on low income and disadvantaged communities;
• Recommend actions to increase the deployment of ZEV infrastructure through the Low Carbon Fuel Standard;
• Support and recommend policies that will facilitate the installation of EV infrastructure in homes and businesses; and
• Ensure EV charging and hydrogen fueling are affordable and accessible to all drivers.

(Reference Executive Orders N-19-19, 2019, B-48, 2018, and B-16, 2012)

Alternative Fuel Vehicle (AFV) Parking Incentive Programs

The California Department of General Services (DGS) and California Department of Transportation (Caltrans) must develop and implement AFV parking incentive programs in public parking facilities operated by DGS with 50 or more parking spaces and park-and-ride lots owned and operated by Caltrans. The incentives must provide meaningful and tangible benefits to drivers, such as preferential spaces, reduced fees, and fueling infrastructure. Fueling infrastructure built at park-and-ride lots is not subject to restricted use by those using bicycles, public transit, or ridesharing. (Reference California Public Resources Code 25722.9)

Airport Zero Emission Vehicle (ZEV) and Infrastructure Incentives

The Zero Emissions Airport Vehicle and Infrastructure Pilot Program provides funding to airports for up to 50% of the cost to acquire ZEVs and install or modify supporting infrastructure for acquired vehicles. Grant funding must be used for airport-owned, on-road vehicles used exclusively for airport purposes. Vehicles and infrastructure must meet the Federal Aviation Administration's Airport Improvement Program requirements, including Buy American requirements. To be eligible, an airport must be for public use. The program will give priority to applicants located in nonattainment areas, as defined by the Clean Air Act, and projects that achieve the greatest air quality benefits, as measured by the amount of emissions reduced per dollar of funds spent under the program. For more information, see the Zero Emissions Airport Vehicle and Infrastructure Pilot Program website. (Reference Public Law 112-95 and 49 U.S. Code 47136a)

Heavy-Duty Alternative Fuel and Advanced Vehicle Purchase Vouchers

The New York State Energy Research and Development Authority (NYSERDA) provides incentives for all-electric and hydrogen fuel cell electric trucks and buses. Incentives are released on a staggered schedule and are distributed based on the following criteria:

Eligible vehicles must be in operation 80% of the time and for a minimum of five years. School buses may only receive the maximum funding amount if the vehicle is domiciled within half a mile of a disadvantaged community. Additional terms and conditions apply. For information about voucher availability and vehicle eligibility, see the NYSERDA New York Truck Voucher Incentive Program website.

Alternative Fuel Infrastructure Tax Credit

Beginning January 1, 2023, fueling equipment for natural gas, propane, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2032, is eligible for a tax credit of 30% of the cost or 6% in the case of property subject to depreciation, not to exceed $100,000. Permitting and inspection fees are not included in covered expenses. Consumers who purchase qualified residential fueling equipment prior to December 31, 2032, may receive a tax credit of up to $1,000.

Eligible fueling equipment must be installed in locations that meet the following census tract requirements:

• A population census tract where the poverty rate is at least 20%; or

• Metropolitan and non-metropolitan area census tract where the median family income is less than 80% of the state medium family income level.

Eligible projects must also meet apprenticeships and prevailing wage requirements.

(Reference 26 U.S. Code 30D and Public Law 117-169)

Alternative Fuel Offering Requirement

The Massachusetts Department of Transportation may not enter into, renew, or renegotiate a contract with a fuel provider for services on the Massachusetts Turnpike without requiring the provider to offer alternative fuel. Alternative fuel is defined as an energy source that is used to power a vehicle and is not gasoline or diesel. (Reference Massachusetts General Laws Chapter 6C, Section 75 and Chapter 90, Section 1)

Alternative Fuel and Advanced Vehicle Technology Research and Demonstration Bonds

Qualified state, tribal, and local governments may issue Qualified Energy Conservation Bonds subsidized by the U.S. Department of Treasury at competitive rates to fund capital expenditures on qualified energy conservation projects. Eligible activities include research and demonstration projects related to cellulosic ethanol and other non-fossil fuels, as well as advanced battery manufacturing technologies. Government entities may choose to issue tax credit bonds or direct payment bonds to subsidize the borrowing costs. For information on eligibility, processes, and limitations, see IRS Notices 2009-29, 2010-35, and 2012-44 or contact local issuing agencies. (Reference 26 U.S. Code 54D)

Alternative Fuel Tax Exemption

Alternative fuel is exempt from taxes if it is sold to a government entity for its exclusive use, a non-profit charitable organization for the purpose of providing charitable services for low-income medical patients, or produced by an agricultural operation and used exclusively for farm use or vehicles of that producer. (Reference Virginia Code 58.1-2250)

Alternative Fuels Tax

Alternative fuels are subject to an excise tax at a rate of $0.205 per gasoline gallon equivalent, with a variable component equal to at least 5% of the average wholesale price of the fuel. (Reference West Virginia Code 11-14C-2, 11-14C-5, 11-14C-6a, 11-15A-13a, and 11-15-18b)

Alternative Fuel and Conversion Definitions

Clean transportation fuels include propane, compressed natural gas (CNG), liquefied natural gas (LNG), electricity, and other transportation fuels determined to be comparable with respect to emissions. Propane is defined as a hydrocarbon mixture produced as a by-product of natural gas processing and petroleum refining and condensed into liquid form for sale or use as a motor fuel. CNG is defined as pipeline-quality natural gas that is compressed and provided for sale or use as a motor vehicle fuel. LNG is defined as pipeline-quality natural gas treated to remove water, hydrogen sulfide, carbon dioxide, and other components that will freeze and condense into liquid form for sale or use as a motor vehicle fuel.

A bi-fuel system is defined as the power system for motor vehicles powered by gasoline and either CNG or LNG. Bi-fuel systems are considered clean fuel systems. Conversion is defined as repowering a motor vehicle or special mobile equipment by replacing its original gasoline or diesel powered engine with one capable of operating on clean transportation fuel or retrofitting a motor vehicle or special mobile equipment with parts that enable its original gasoline or diesel engine to operate on clean transportation fuel.

(Reference Kentucky Revised Statutes 186.750)

Diesel Vehicle Retrofit and Improvement Grants

The Indiana Department of Environmental Management (IDEM) administers the DieselWise Indiana grant programs to support projects that reduce diesel emissions. The Clean Diesel Across Indiana program provides grants ranging from $50,000 to $750,000 for projects throughout the state. Eligible applicants include private and public entities that operate equipment serving the public, including private bus fleets and sanitation fleets. Eligible projects include replacing or converting a diesel vehicle or vehicle component with one that operates on alternative fuel, as well as installing exhaust retrofit technologies, idle reduction technologies, aerodynamic technologies, and low rolling resistance tires. For more information see the IDEM DieselWise website.

Alternative Fuel Vehicle (AFV) Inspection and Maintenance Exemption

Dedicated AFVs are exempt from inspection and maintenance requirements if they operate exclusively on natural gas, propane, ethanol, hydrogen, or methanol. (Reference 326 Indiana Administrative Code 13-1.1)

Alternative Fuel and Special Fuel Definitions

The definition of alternative fuel includes propane. Special fuel is defined as all combustible gases and liquids that are suitable for powering an internal combustion engine or motor or are used exclusively for heating, industrial, or farm purposes. Special fuels include biodiesel, blended biodiesel, and natural gas products, including liquefied and compressed natural gas. (Reference Indiana Code 6-6-2.5-1 and 6-6-2.5-22)

Zero Emission Vehicle (ZEV) Deployment Support

Connecticut joined California, Maine, Maryland, Massachusetts, New Jersey, New York, 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 (EV) charging stations 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.

Zero Emission Vehicle (ZEV) Deployment Support

Maryland joined California, Connecticut, Maine, Massachusetts, New Jersey, New York, 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 (EV) charging stations and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.

• Raising consumer awareness and interest in EV 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.

Zero Emission Vehicle (ZEV) Deployment Support

Massachusetts joined California, Connecticut, Maine, Maryland, New Jersey, New York, 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 (EV) charging stations 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.

Zero Emission Vehicle (ZEV) Deployment Support

New York joined California, Connecticut, Maine, 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 (EV) charging stations 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.

Zero Emission Vehicle (ZEV) Deployment Support

Oregon joined California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, 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 (EV) charging station 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.

Zero Emission Vehicle (ZEV) Deployment Support

Rhode Island joined California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, 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.

Zero Emission Vehicle (ZEV) Deployment Support

Vermont joined California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island 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 (EV) charging stations and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.

• 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 ZEVs website.

State Energy Strategy Development

The New Hampshire Office of Energy Planning (Office), in consultation with the New Hampshire Energy Advisory Council, prepared a 10-year energy strategy for the state that addresses the impact of transportation policies and programs on electricity energy needs in the state in 2018. Strategy recommendations include enabling and encouraging adoption of plug-in electric vehicles and reducing unnecessary idling. The Office will review and update the strategy triennially. For more information, including the final strategy, visit the Energy Strategy Revision website. (Reference New Hampshire Revised Statutes 4:E1)

Hydrogen Fueling Station Evaluation

The California Air Resources Board (CARB) may not enforce any element of regulations that would require a supplier to construct, operate, or provide funding to construct or operate a publicly available hydrogen fueling station.

Annually, CARB must aggregate and share the number of hydrogen vehicles that manufacturers project will be sold or leased over the next three years and the total number of hydrogen vehicle registered in the state. Based on this information, CARB must evaluate the need for additional publicly available hydrogen fueling stations for the subsequent three years and report findings to the California Energy Commission (CEC) including the of number of stations, geographic areas where stations are needed, and minimum operating standards, such as number of dispensers and filling pressures.

The CEC will allocate up to $20 million per year to fund the number of stations deemed necessary based on CARB's evaluation and reports. The CEC may stop funding new stations if it determines, in consultation with CARB, that the private sector is developing publicly available stations without the need for government support.

The CEC and CARB must issue an annual report on progress toward establishing a hydrogen fueling station network that meets the needs of vehicles being used in the state. The review will determine the remaining cost and time required to establish a network of 100 publicly available hydrogen fueling stations and whether funding from the Clean Transportation Program is necessary to achieve this goal. For more information see CARB's Hydrogen Fueling Infrastructure website and the CEC and CARB Joint Agency Report on Assembly Bill 8.

(Reference California Health and Safety Code 43018.9)

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. For additional information, including how to claim the credit, please see the New York State Department of Taxation and Finance website. (Reference New York Tax Law 187-b)

Plug-In and Zero Emission Vehicle Rebates

Massachusetts Department of Energy Resources' Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program offers residents, non-profits, and businesses rebates of up to $2,500 toward the purchase or lease of eligible all-electric and fuel cell electric vehicles and up to $1,500 for the purchase or lease of eligible plug-in hybrid electric vehicles. Eligible non-profit and business fleet vehicles may include rental cars, company cars, and delivery vehicles. Vehicle purchase prices must be below $50,000. Applicants must apply within three months of the vehicle purchase or lease date and must retain ownership of the vehicle for a minimum of 36 months. For more information, including application and eligibility requirements, visit the MOR-EV website.

Alternative Fuel Use and Vehicle Acquisition Requirement

At least 50% of new or replacement light-duty state agency vehicles must meet Bin 2 emissions standards established in Title 40 of the U.S. Code of Federal Regulations, or be propelled to a significant extent by electricity, natural gas, propane, hydrogen, or biodiesel. (Reference Utah Code 63A-9-401 and 63A-9-403)

Alternative Fuel Tax

Alternative fuels used as vehicle fuel are taxed as follows:

• Compressed natural gas is subject to the state fuel excise tax of $0.31 per gasoline gallon equivalent, measured at 5.66 pounds (lbs.) or 126.67 cubic feet at a base temperature of 60 degrees Fahrenheit and a pressure of 14.73 lbs. per square inch;
• Liquefied natural gas is subject to the excise tax of $0.325 per diesel gallon equivalent (DGE), measured at 6.06 lbs.;
• Propane is subject to the excise tax of $0.30 per gallon;
• E85 is subject to the excise tax of $0.290 per gallon;
• B20 is subject to the excises tax of $0.295 per gallon;
• B100 is subject to the excise tax of $0.325 per gallon;
• Hydrogen is subject to the excise tax of $0.65 per DGE, measured at 2.49 lbs.; and
• Effective July 1, 2023, electricity will be subject to the excise tax of $0.026 per kilowatt-hour of fuel delivered or placed into a battery or other energy storage device of an electric motor vehicle at any location in Iowa other than a residence.

(Reference Iowa Code 452A.2, 452A.3, and 452A.86)

Zero Emission Vehicle (ZEV) Deployment Support

California joined Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, 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 (EV) charging stations 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.

Alternative Fuel Vehicle (AFV) Conversion and Infrastructure Tax Credit

Businesses and individuals are eligible for an income tax credit of 50% of the equipment and labor costs for the conversion of qualified AFVs, up to $19,000 per vehicle. A tax credit is also available for 50% of the equipment and labor costs for the purchase and installation of alternative fuel infrastructure on qualified AFV fueling property. The maximum credit is $1,000 per residential electric vehicle charging station, and $10,000 per publicly accessible AFV fueling station. Qualified alternative fuels include, ethanol blends of at least 85%, natural gas, propane, biodiesel, electricity, and hydrogen. For more information, see the Office of Tax and Revenue website. (Reference District of Columbia Code 47-1806.12 through 47-1806.13, 47-1807.10 through 47-1807.11, and 47-1808.10 through 47-1808.11)

Clean School Bus Grants

Any public school district or charter school may receive a grant through the Texas Commission on Environmental Quality (TCEQ) to pay for the incremental costs to replace school buses or install diesel oxidation catalysts, diesel particulate filters, emission-reducing add-on equipment, and other emissions reduction technologies in qualified school buses. For more information, see the TCEQ Texas Emissions Reduction Plan website. (Reference Texas Statutes, Health and Safety Code 390, and Texas Administrative Code 114.640-114.648)

Alternative Fuel Vehicle (AFV) Revolving Loan Program for Public Entities

The South Carolina Energy Office (SCEO) provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and the incremental costs of a new AFV, with qualified project payback periods. Eligible recipients include state agencies, local governments, public colleges and universities, school districts, and private non-profit organizations. Private non-profit organizations and local government entities may recieve loans of up to 100% of eligible project costs ranging from $25,000 to $500,000 per state fiscal year. State agencies and public educational institutions, may rcieve loans of up to 70% of each project's funding as a loan and entities may also be eligible for ConserFund Plus grant of up to 30% project cost. For more information, see the ConserFund website. (Reference South Carolina Code of Laws 48-52-650)

Alternative Fuel Vehicle (AFV) Revolving Loan Program for Private Entities

The South Carolina Business Development Corporation provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and incremental costs, with qualified project payback periods. Eligible recipients include businesses, industries, utilities, and non-profit organizations. Government entities may be eligible under special conditions. The loan may cover up to 100% of the project costs ranging from $50,000 to $1 million. Repayment terms vary. For more information, including application deadlines, see the Energy Efficiency Revolving Loan website. (Reference South Carolina Code of Laws 48-52-650)

State Agency Coordination to Address Climate Change

The Rhode Island Executive Climate Change Coordinating Council (EC4) was established to coordinate efforts between state agencies to reduce greenhouse gas (GHG) emissions. The EC4 will pursue GHG emissions reductions of 10% below 1990 levels by 2020, 45% below 1990 levels by 2035, and 80% below 1990 levels by 2050. State agencies must assist EC4 to develop programs to encourage state employees to reduce vehicle miles traveled and use public transportation when available. The Council will also work with municipalities to encourage sustainability; identify federal, state, and private funding opportunities that can be leveraged to reduce emissions in Rhode Island; and develop GHG emissions reduction strategies. The Council submitted a plan in December 2016 with suggested strategies for GHG emissions reduction activities to the governor. The EC4 and the State Chief Resiliency Officer submitted a statewide Action Plan to Stand Up to Climate Change and to the governor in July 2018. (Reference Executive Order 17-10, 2017, and Rhode Island General Laws 42-6.2)

Establishment of a Zero Emission Medium- and Heavy-Duty Vehicle Program

The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program (Program) will provide funding for development, demonstration, pre-commercial pilot, and early commercial implementation projects for zero and near-zero emission trucks, buses, and off-road vehicles and equipment. Eligible projects include, but are not limited to, the following:

• Technology development, demonstration, pre-commercial pilots, and early commercial implementation projects for zero and near-zero emission truck technology;
• Zero and near-zero emission bus technology development, demonstration, pre-commercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region;
• Purchase incentives for commercially available zero and near-zero emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure; and
• Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including autonomous vehicles, grid integration technology, and charge management solutions.

Zero Emission Vehicle (ZEV) Initiative

The California Air Resources Board's (CARB) Charge Ahead California Initiative was established to help place into service at least 1 million ZEVs and near-zero emission vehicles in California by January 1, 2023. In consultation with the State Energy Resources Conservation and Development Commission, CARB prepared a funding plan that includes a market and technology assessment, assessments of existing zero and near-zero emission funding programs, and programs that increase access to disadvantaged, low-income, and moderate-income communities and consumers. Potential programs under the initiative include those involving innovative financing, car sharing, charging infrastructure in multi-unit dwellings located in disadvantaged communities, public transit, and agricultural vanpool programs. The funding plan must be updated at least every three years through January 1, 2023. (Reference California Health and Safety Code 44258.4)

Public Transportation Research, Demonstration, and Deployment Funding

The U.S. Department of Transportation’s Federal Transit Administration administers the Public Transportation Innovation Program. Financial assistance is available to local, state, and federal government entities; public transportation providers; private and non-profit organizations; and higher education institutions for research, demonstration, and deployment projects involving low or zero emission public transportation vehicles. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle. For more information, see the FAST Act Section 5312 fact sheet and the MAP-21 website. (Reference Public Law 117-58, Public Law 113-159, Public Law 114-94, 49 U.S. Code 5312, and 49 U.S. Code 5339)

Electric Vehicle (EV) and Infrastructure Coaching Service

The Colorado Energy Office (CEO) administers the ReCharge Colorado program (ReCharge) to advance the adoption of EVs and installation of charging infrastructure in Colorado. ReCharge provides coaching services to consumers, local governments, workplaces, and multi-unit dwellings to help them identify monetary savings, grant opportunities, and other EV benefits. ReCharge also helps build local stakeholder support for EVs. For more information, see the CEO ReCharge Colorado website.

Natural Gas and Hydrogen Tax

Compressed natural gas (CNG) and hydrogen are taxed at a rate of $0.175 per gasoline gallon equivalent (GGE). Liquefied natural gas (LNG) is taxed at a rate of $0.175 per diesel gallon equivalent (DGE). One GGE is equal to 5.660 pounds (lbs.) of CNG or 2.198 lbs. of hydrogen. One DGE is equal to 6.06 lbs. of LNG. The tax rate for natural gas and hydrogen will be annually adjusted by the State Tax Commission (Commission) not to exceed $0.225 per GGE or DGE. The Commission will publish the adjusted fuel tax no later than 60 days prior to the effective date. For more information, see the Utah State Tax Commission Fuel Tax Rates website. (Reference Utah Code 59-13-102 and 59-13-301)

Alternative Fuel Tax

An excise tax rate of 9% of the average wholesale price on a per gallon basis applies to all special fuels, including diesel, natural gas, propane, ethanol, biodiesel, hydrogen, and any other combustible gases and liquids, excluding gasoline, used to propel motor vehicles. Additionally, a highway motor fuel tax of $0.02 per gallon applies to all special fuels. For taxation purposes, one gasoline gallon equivalent of compressed natural gas (CNG) is equal to 5.66 pounds (lbs.) or 126.67 cubic feet. One diesel gallon equivalent of liquefied natural gas (LNG) is equal to 6.06 lbs.

(Reference Kentucky Revised Statutes 131.130, 138.220, and 138.226)

Alternative Fuel Definition

Alternative fuels are defined as pure methanol, ethanol and other blends of at least 85% alcohol, natural gas, propane, coal-derived liquid fuels, hydrogen, electricity, pure biodiesel, renewable diesel, fuels other than alcohol that are derived from biological materials, and P-series fuels. Biodiesel is defined as mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that meets current ASTM biodiesel standards. (Reference Wyoming Statutes 39-17-301)

Hydrogen and Electric Vehicle (EV) Rebate

The Connecticut Hydrogen and Electric Automobile Purchase Rebate Program (CHEAPR) offers rebates for the incremental cost of the purchase or lease of a hydrogen fuel cell electric vehicle (FCEV), all-electric vehicle (EV), or plug-in hybrid electric vehicle (PHEV).

CHEAPR offers rebates of up to $9,500 for the purchase or lease a new eligible FCEV, EV, or PHEV. The manufacturer suggested retail price for new eligible vehicles may not exceed $50,000.

CHEAPR offers an additional rebate, Rebate Plus, for all applicants that participate in a state or federal income qualified program. Connecticut residents that participate in certain income qualified programs are also eligible to receive a rebate for the purchase or lease of a used eligible vehicle.

Rebates are offered in the following amounts:

Rebates are available on a first-come, first-served basis. For more information, see the Connecticut Department of Energy and Environmental Protection CHEAPR website.

(Reference House Bill 7424, 2019)

(Reference Connecticut General Statutes 22a-202)

Renewable Natural Gas (RNG) and Renewable Hydrogen Fuel Sales Regulations

Public utility districts are authorized to sell RNG and renewable hydrogen to facilities that condense or dispense natural gas or renewable hydrogen for use as a motor fuel. RNG is defined as methane gas or other hydrocarbons derived from organic materials. Renewable hydrogen is defined as hydrogen produced using renewable resources as the source of the hydrogen and the source for the energy input into the production process. (Reference Revised Code of Washington 54.04.190)

Qualified Heavy-Duty Alternative Fuel Vehicle (AFV) Tax Credit

Taxpayers may be eligible for a tax credit for the purchase of a qualified heavy-duty AFV. Qualifying fuels include natural gas, electricity, and hydrogen. Each qualified heavy-duty AFV is eligible for the following tax credit amounts:

At least 50% of the qualified vehicle's miles must be driven in the state. A single taxpayer may claim credits for up to 10 AFVs or $500,000 annually. If more than 30% of the total available tax credits in a single year have not been claimed by May 1, a taxpayer may apply for credits for an additional eight AFVs. Up to 25% of the tax credits are reserved for taxpayers with small fleets of less than 40 vehicles. Additional conditions and restrictions may apply. For more information, see the Alternative Fuel Heavy Duty Vehicle Tax Credit Program website.

(Reference Utah Code 59-7-618.1 and 59-10-1033.1)

Government Alternative Fuel Vehicle (AFV) Incentive

The Virginia Department of Mines, Minerals and Energy, in collaboration with the Virginia Department of Transportation, offers up to $10,000 to state agencies and local governments for the incremental cost of new or converted AFVs. To be eligible, vehicles must comply with Buy America provisions or qualify for a waiver from the U.S. Department of Transportation Federal Highway Administration, and must be garaged in areas of air quality nonattainment, as recognized by the federal Congestion Mitigation and Air Quality Improvement (CMAQ) program. For more information, see the Virginia CMAQ Incentive Program website.

Commercial Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit

Businesses are eligible to receive tax credits for purchasing new or used medium- and heavy-duty AFVs and medium- and heavy-duty vehicles converted to alternative fuels, and installing alternative fueling infrastructure. Eligible alternative fuels are natural gas, propane, hydrogen, dimethyl ether, and electricity. Tax credits for qualified alternative fueling infrastructure are for up to 50% of the cost to purchase and install the infrastructure. New commercial vehicle tax credit amounts vary based on gross vehicle weight rating (GVWR) and are up to 75% of the incremental cost, with maximum credit values as follows:

Leased AFVs may receive a tax credit for 75% cost, up to $25,000 per vehicle. This exemption also applies to qualified used vehicles modified with a U.S. Environmental Protection Agency-certified aftermarket conversion, if the vehicle is being sold for the first time after modification. Modified vehicles are eligible for credits equal to 50% of the commercial vehicle conversion cost, up to $25,000.

Each entity may claim up to $250,000 or credits for 25 vehicles per year. All credits earned must be used in that calendar year or the subsequent year. Tax credits are available on a first-come, first-served basis and are subject to annual limits of $2 million for vehicle credits, and $6 million for infrastructure.

(Reference Revised Code of Washington 82.16.0496 and 82.04.4496)

State Agency Low Carbon Fuel Use Requirement

At least 3% of the aggregate amount of bulk transportation fuel purchased by the state government must be from very low carbon transportation fuel sources. The required amount of very low carbon transportation fuel purchased will increase by 1% annually until January 1, 2024. Some exemptions may apply, as determined by the California Department of General Services (DGS). Very low carbon fuel is defined as a transportation fuel having no greater than 40% of the carbon intensity of the closest comparable petroleum fuel for that year, as measured by the methodology in California Code of Regulations Title 17, Sections 95480-95486. DGS will submit an annual progress report to the California Legislature. (Reference California Health and Safety Code 43870, and California Code of Regulations Title 17, Section 95480-95486)

Alternative Fuel Excise Tax

Alternative fuels are taxed equal to the motor fuel tax on a gallon equivalent basis. Alternative fuels include natural gas, propane, hydrogen, and hythane. A gallon equivalent is defined as 5.660 pounds (lbs.) of compressed natural gas, 6.06 lbs. of liquefied natural gas, 480.11 standard cubic feet of hydrogen, and 162.44 standard cubic feet of hydrogen compressed natural gas. A gallon of propane is measured as 4 quarts or 3.785 liters. (Reference Michigan Compiled Laws 207.1003, 207.1151, and 207.1152)

Alternative Fuel Dealer and Commercial User License

Alternative fuel dealers and alternative fuel commercial users must apply for a license from the Michigan Department of Treasury. Commercial users are defined as those operating vehicles with three or more axles, or two axles and a gross vehicle weight rating exceeding 26,000 pounds, that operate in more than one state. Alternative fuel dealers must pay a license fee of $500 and commercial users must pay a license fee of $50. For the purpose of this requirement, alternative fuels include natural gas, propane, hydrogen, and hythane. (Reference Michigan Compiled Laws 207.1151, 207.1153, and 207.211)

National Alternative Fuels Corridors

The U.S. Department of Transportation Federal Highway Administration (FHWA) designates a national network of plug-in electric vehicle (EV) charging and hydrogen, propane, and natural gas fueling infrastructure along national highway system corridors. To designate these Alternative Fuel Corridors (AFC), FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders.

FHWA must establish an AFC grant program to award grants to eligible entities, by November 15, 2022. During the designation and redesignation process, in consultation with the U.S. Department of Energy, FHWA will issue a report identifying charging and fueling infrastructure, best practices and guidance for predictable infrastructure deployment, analyzing standardization needs for fuel providers and purchasers, and reestablishing the goal of achieving strategic deployment of fueling infrastructure in the designated corridors.

For the 2022 Request for Nominations, state and local officials must submit nominations to FHWA by May 13, 2022. FHWA must update and redesignate corridors periodically thereafter. States are encouraged to complete EV AFCs, which are eligible for separate funding from the National Electric Vehicle Infrastructure (NEVI) Formula Program, and will be considered fully built out once they meet the conditions specified in the NEVI Formula Program Guidance.

For more information, see the FHWA Alternative Fuel Corridors website. (Reference Public Law 117-58, Public Law 114-94, and 23 U.S. Code 151)

Zero Emission Vehicle (ZEV) and Plug-In Hybrid Electric Vehicle (PHEV) Rebates

The Driving Rhode Island to Vehicle Electrification (DRIVE EV) rebate program offers rebates for the purchase or lease of ZEVs and PHEVs. Rebate amounts vary based on vehicle type:

ZEVs include all-electric vehicles and hydrogen fuel cell electric vehicles. New vehicles may not have a purchase price above $60,000, and pre-owned vehicles may not have a purchase price above $40,000. All eligible vehicles must be purchased on or after July 7, 2022. An additional rebate of up to $2,000 is available to applicants that participate in a state or federal income-qualified program. Rebates are awarded on a first-come, first-served basis. For more information, including a list of income-qualified programs, see the DRIVE EV and DRIVE EV+ websites.

Hydrogen Fueling Station Regulations

The Colorado Department of Labor and Employment, Division of Oil and Public Safety (OPS), enforces rules concerning retail hydrogen fueling stations. The rules include information regarding inspections, specifications, shipment notification, record keeping, labeling of containers, use of meters or mechanical devices for measurement, submittal of installation plans, and minimum standards for the design, construction, location, installation, and operation of stations. For more information, see the OPS Regulations and Statues website.

(Reference 7 Code of Colorado Regulations 1101-17 )

Electric Vehicle (EV) Registration Data

The Connecticut Department of Motor Vehicles (DMV) must record the number of EVs registered in Connecticut. An EV is defined as any all-electric vehicle, fuel cell electric vehicle, plug-in hybrid electric vehicle, or range-extended EV. The data must be publicly available on the DMV website and include the total number of EVs registered each year. The DMV must update the information every six months. For more information, see the DMV Number of EVs Registered in Connecticut website.

(Reference Connecticut General Statutes 14-12(I))

Utility Company Electric Vehicle (EV) Charging Load Projection Requirement

The Public Utilities Regulatory Authority requires electric distribution companies to integrate EV charging load projections into distribution planning. Projections will be based on the number of EVs registered in the state as well as projected fluctuations in EV sales. Electric distribution companies must publish annual reports detailing the EV charging load projections for the company’s distribution planning.

(Reference Connecticut General Statutes 16-19fff)

Natural Gas Vehicle and Idle Reduction Weight Exemption

A vehicle powered in whole or part by natural gas, electricity, or hydrogen may exceed the state’s gross and axle weight limits by up to 2,000 pounds (lbs.), equal to the difference between the weight of the vehicle with the natural gas tank, battery, or hydrogen fueling system and the weight of a comparable diesel tank and fueling system. The exemption is allowed on all state roads and interstate highways, as defined in Title 23 of the Code of Federal Regulations section 127(s).

Any vehicle equipped with idle reduction technology may exceed the state’s gross vehicle weight limits by up to 400 lbs. to compensate for the additional weight of the idle reduction technology. The additional weight may not exceed the actual certified weight of the idle reduction unit. Upon request, vehicle operators must provide proof or certification of the weight of the idle reduction technology and proof that the idle reduction technology is fully functional.

(Reference House Bill 3054, 2022, Oklahoma Statutes 47-14-109, and Oklahoma Statutes 47-14-109.3)

Committee of Alternative Fuels Technician Examiners

The Committee of Alternative Fuels Technician Examiners (Committee) was established to assist the Commissioner of Labor on matters relating to the formulation of rules and standards to comply with the Alternative Fuels Technician Certification Act. The Committee includes experts in the natural gas, propane, and electric vehicle industries. (Reference Oklahoma Statutes 40-142.6)

Alternative Fuels Technician Certificates

The Department of Labor (DOL) will issue a certificate to any person who has successfully passed the appropriate alternative fuels equipment, alternative fuels compression, or electric vehicle technician examination as provided in the Alternative Fuels Technician Certification Act. A certification fee applies. For companies, partnerships, or corporations involved in the business of installing, servicing, repairing, modifying, or renovating equipment used in converting or modifying engines or fueling equipment to be used with alternative fuels, DOL will issue a separate certificate. Alternative fuels include propane, natural gas, methanol, ethanol, electricity, hydrogen, biodiesel, and more.

Alternative Fuel Commercial User Tax

An alternative fuel commercial user that has not paid fuel taxes to an alternative fuel dealer must file a monthly report with the Michigan Department of Treasury (Department) to determine taxes owed under Michigan Compiled Laws 207.1152. By the twentieth day of each month, users must file the report detailing the number of gallons or gallon equivalents of alternative fuel consumed during the preceding month. Alternative fuel commercial users must pay the full amount of tax due to the Department at the time of filing the report. (Reference Michigan Compiled Laws 207.1154)

Zero Emission Vehicle (ZEV) Parking Space Regulations

A city or town may restrict certain parking areas for ZEVs, which includes all-electric vehicles, plug-in hybrid electric vehicles, and fuel cell vehicles. A person who is found responsible for a violation of the restricted parking area may be subject to a penalty of no more than $50 and the vehicle may be removed from the parking spot. (Reference Massachusetts General Laws Chapter 40, Section 22A)

Zero Emission Vehicle (ZEV) and Infrastructure Support

Zero Emission Vehicle (ZEV) Commission is established to recommend policies to expand access to ZEV infrastructure and to encourage the purchase and lease of these vehicles. The ZEV Commission, comprised of state agencies, is tasked with conducting ZEV feasibility studies on the following topics:

• Evaluating opportunities for electrification of the state fleet, including vehicles used by the regional transit authorities;
• Authorizing ZEVs, including plug-in electric vehicles, plug-in hybrid electric vehicles, or fuel cell vehicles, for use in high occupancy vehicle lanes regardless of the number of occupants in the vehicle; and
• Assessing surcharges, levies, or other assessments to offset projected gas tax revenue loss from the purchase or operation of ZEVs.

(Reference Session Law Chapter 448, Section 5, 2016)

Alternative Fuel Vehicle Conversion Grants

The Utah Conversion to Alternate Fuel Grant Program provides grants to businesses and government entities that purchase clean vehicles or install conversion equipment on eligible vehicles that allows the vehicles to operate on alternative fuel or reduces a vehicle’s emissions of regulated pollutants. Award recipients are required to pass these savings along to the individual who purchases the converted vehicle. Grants may cover 100% of the cost of purchasing a clean vehicle or 50% of the cost of conversion, up to $2,500. Eligible clean vehicles must operate solely on alternative fuel and include light- and heavy-duty vehicles and off-road equipment. Eligible alternative fuels include propane, natural gas, hydrogen, and electricity. For more information, see the Utah Conversion to Alternative Fuel Grant Program website. (Reference Senate Bill 188, 2022, and Utah Code 19-1-401 through 19-1-403.3 and 19-2-301 through 18-2-305)

Clean Diesel Grant

The Rhode Island Clean Diesel Fund provides companies with reimbursement grants to reduce emissions from heavy-duty diesel vehicles. Qualified vehicle improvements include vehicle replacements, engine repowers, conversions to alternative vehicle fuels, idle reduction technologies, and other fuel-efficient technologies. To be eligible, vehicles must be registered with the Rhode Island Department of Motor Vehicles, and 50% of the vehicle miles travelled or hours of operation must be in Rhode Island for at least five years following receiving the grant. (Reference Rhode Island General Laws 31-47.3-5.1)

Hydrogen Fuel Production Incentives

Businesses that convert natural gas to hydrogen fuel, or produce natural gas solely for use in the production of hydrogen fuel for zero emission vehicles (ZEVs), may be eligible for an oil and gas severance tax credit. Each eligible applicant may receive a tax credit equal to the amount of the severance tax owed, up to $5 million per year. Entities that produce hydrogen fuel for use in ZEVs or hydrogen fueled trucks may also qualify for grant funding or loans from the Community Impact Fund. (Reference Utah Code 35A-8-302 and 59-5-102)

Zero Emission Vehicle (ZEV) Fee

ZEV owners must pay an annual road improvement fee of $100 upon vehicle registration or registration renewal for ZEVs model year 2020 and later. The California Department of Motor Vehicles will increase the fee annually to account for inflation, equal to the increase in the California Consumer Price Index for the prior year. (Reference California Vehicle Code 9250.6)

Alternative Fueling Infrastructure Grant Program

The Washington State Department of Transportation (WSDOT) offers competitive grants to strengthen and expand the West Coast Electric Highway network by deploying Level 2 and direct current fast charging (DCFC) electric vehicle (EV) chargers and hydrogen fueling infrastructure along highway corridors in Washington. Eligible project costs include siting, equipment purchases, electrical upgrades, installation, operations, and maintenance. For more information, including funding availability and application periods, see the WSDOT Zero Emission Vehicle Grants website. (Reference Revised Code of Washington 47.04.350)

Alternative Fuel Vehicle Fee

In addition to standard registration fees, owners of vehicles fueled with natural gas, hydrogen, or electricity must pay an annual fee of $200. Plug-in hybrid electric vehicle owners must pay an annual fee of $100. (Reference West Virginia Code 17A-10-3C)

Authorization of Governmental Alternative Fuel Fleet Grant Program

The Texas Commission on Environmental Quality (TCEQ) must administer a grant program for governmental alternative fuel fleets to provide grants for the purchase or lease of a new vehicle and the purchase, lease, or installation of alternative fueling equipment. Eligible alternative fuels include natural gas, propane, hydrogen, and electricity. State agencies and political subdivisions are eligible to apply for a grant under the program if the entity operates a fleet of more than 15 vehicles. Mass transit and school transportation providers will also be eligible for grants.

TCEQ must establish standardized vehicle grant amounts based on the incremental costs associated with the purchase or lease of different categories of motor vehicle, including the fuel type, vehicle class, and other categories TCEQ considers appropriate. TCEQ will also establish standardized fueling equipment grant amounts.

(Reference Texas Statutes, Health and Safety Code 386.153)

Alternative Fuel Vehicle Fee

Owners of plug-in electric vehicles and fuel cell electric vehicles must pay a biennial fee of $120, in addition to standard registration fees. Hybrid electric vehicle owners must pay a biennial fee of $60. (Reference South Carolina Code of Laws 56-3-645 and 12-28-110(39))

Light-Duty Alternative Fuel Vehicle Rebates

The Texas Commission on Environmental Quality (TCEQ) administers the Light-Duty Motor Vehicle Purchase or Lease Incentive Program for the purchase or lease of a new light-duty vehicle powered by compressed natural gas (CNG), propane, hydrogen, or electricity. CNG and propane vehicles, including bi-fuel vehicles, are eligible for a rebate of up to $5,000. Electric drive vehicles powered by a battery or hydrogen fuel cell, including plug-in hybrid electric vehicles with a battery capacity of at least 4 kilowatt hours, are eligible for a rebate of up to $2,500. One rebate is available per eligible vehicle. Rebates are awarded on a first-come, first-served basis. For more information, including eligibility requirements and the application form, see the TCEQ Texas Emissions Reduction Plan website. (Reference Texas Statutes Health and Safety Code 386.17 and Texas Administrative Code 114.610-114.613)

Alternative Fuel Vehicle (AFV) and Infrastructure Grants Authorization

The Nevada Office of Energy administers the Nevada Clean Energy Fund to fund qualified clean energy projects, including any program, technology, product, or service that supports the deployment of AFVs and related infrastructure. Technologies that involve the combustion of fossil fuels are not eligible for funding. For more information, see the Nevada Clean Energy Fund website. (Reference Nevada Revised Statutes 701B.930-995)

Volkswagen (VW) Zero Emission Vehicle (ZEV) Investment Plan

The California Air Resources Board (CARB) approved the VW California ZEV Investment Plan. As required by the October 2016 2.0-Liter Partial Consent Decree, VW must invest $800 million over ten years to support the increased adoption of ZEV technology in California. VW will submit a series of four 30-month cycle ZEV investment plans to CARB for approval. CARB has approved the Cycle 2 plan, covering July 2019 through December 2021. The Cycle 2 plan includes building a basic charging network, public outreach, education, and marketing, and ZEV access projects. ZEV infrastructure rollouts will be focused in nine metropolitan areas. VW will continue access efforts in Sacramento, with the goal of offering residents a better quality of life through enhanced mobility and improved air quality.

Electric Vehicle and Vehicle Efficiency Fees

All-electric vehicle owners must pay an annual fee of $115 or a per-mile road use fee of $0.019 per mile through the OReGo program. Medium-speed EV owners must pay an annual fee of $63. Hybrid electric vehicles and plug-in hybrid electric vehicles must pay an annual fee in the following amounts:

These fees are in addition to standard registration fees. Drivers with electric vehicles or vehicles with ratings over 40 mpg are exempt from additional registration fees if they enroll in the OReGo program. For more information, including how to apply, visit the OReGo program website.

(Reference Oregon Revised Statutes 803.420 through 803.422)

Clean School Bus Grants

The Oregon Department of Environmental Quality must use funds awarded to Oregon through the Volkswagen (VW) Environmental Mitigation Trust and deposited in the Clean Diesel Engine Fund, to award grants to owners and operators of at least 450 school buses powered by diesel engines. Eligible vehicles include buses that have at least three years of remaining useful life. Grants will be available for 30%, up to $50,000, for the purchase of a new bus or up to 100% of the cost to retrofit a school bus with emissions-reducing parts or technology that reduce diesel particulate matter emissions by at least 85%. Any money not expended under this Clean Diesel Engine Fund will fund grants for the reduction of diesel engine emissions as matching funds under the Diesel Emissions Reduction Act program. For more information, see the VW Settlement website. (Reference Oregon Revised Statutes 468A.795 through 468A.807)

Alternative Fuel Infrastructure Funding

The Alternative Fuels Incentive Grant (AFIG) Program provides reimbursement grants for the installation of new or existing alternative fuel infrastructure for fleet, workplace, residential, or public refueling sites. Grants are available for reimbursement of 50% of the cost, up to $600,000, to install electric, hydrogen, propane, and compressed natural gas fueling infrastructure. Eligible applicants include Pennsylvania school districts, municipal authorities, political subdivisions, non-profit entities, corporations, and limited liability companies or partnerships incorporated or registered in the Commonwealth. For more information, including grant guidelines and current application periods, see the AFIG Program website.

Zero-Emission and Autonomous Vehicle Infrastructure Support

Cities and counties that receive funding from the Road Maintenance and Rehabilitation Program are encouraged to use funds towards advanced transportation technologies and communication systems, including, but not limited to, zero-emission vehicle fueling infrastructure and infrastructure-to-vehicle communications for autonomous vehicles. (Reference California Streets and Highways Code 2030)

Zero Emission Vehicle (ZEV) Rebate and ZEV Fueling Infrastructure Grant for Municipalities

The New York State Department of Environmental Conservation's (NYSDEC) Municipal ZEV Program offers rebates to cities, towns, villages, counties, and New York City boroughs for the purchase or lease of eligible ZEVs and grants for purchase and installation of eligible ZEV fueling infrastructure. To qualify, ZEVs must be purchased or leased on or after March 1, 2020, 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. Maximum rebate and grant amounts are as follows:

A municipality may apply for multiple ZEV rebates, up to $150,000, and multiple ZEV infrastructure grants, up to $500,000 per ZEV infrastructure grants. A single municipality may receive up to 50% of the total available funds towards ZEVs and infrastructure. All equipment expenses must be incurred on June 1, 2020, or later. Additional rules and conditions apply.

For more information, including eligible projects and application periods, see the NYSDEC Grant Funding for Municipalities website.

Volkswagen (VW) Settlement Allocation

The Washington State Department of Ecology (Ecology) will work with the Office of the Governor and state agencies to select projects and distribute funding to leverage 15% of Washington's portion of the VW Environmental Mitigation Trust for the acquisition, installation, operation, and maintenance of light-duty zero-emission vehicle charging infrastructure.

Ecology will establish a competitive process to identify and select projects to fund with the remaining 85% of the appropriation to maximize total air pollution reduction and health benefits, improve air quality in areas disproportionately affected by air pollution, leverage additional matching funds, achieve substantial emission reduction beyond what would occur absent the funding, accelerate fleet turnover to the cleanest engines, and accelerate adoption of electric vehicles, equipment, and vessels. As appropriate, Ecology will work with state agencies to select projects and distribute funding. For more information, see the Ecology VW Enforcement Action website.

Zero Emission Vehicle (ZEV) Deployment Support

New Jersey joined California, Connecticut, Maine, Maryland, Massachusetts, New York, 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 (EV) charging stations 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.

Electric Vehicle (EV) Charging Station and Hydrogen Fuel Cell Infrastructure Grants

The Pennsylvania Department of Environmental Protection offers competitive grants for the acquisition, installation, operation, and maintenance of publicly available direct current fast charging (DCFC) stations and hydrogen fueling infrastructure. Grant reimbursements are awarded after project completion in the following amounts:

Eligible project locations are transportation corridors, destination locations, and locations that serve as community charging or fueling hubs. This program is funded by Pennsylvania’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidelines, eligibility requirements, application deadlines, and instructions, see the Driving Pennsylvania Forward website.

Heavy-Duty Vehicle Emissions Reduction Grants

Through the Vermont Diesel Emissions Reduction Grants Program, the Vermont Department of Environmental Conservation (DEC) provides funding to local, state and regional agencies or departments, businesses, institutions, and nonprofit organizations for projects focused on reducing emissions from diesel engines and vehicles. Qualifying heavy-duty vehicles include buses and Class 5-8 trucks. Projects eligible for funding are as follows:

• Verified emission control technologies;
• Verified idle reduction technologies;
• Verified aerodynamic technologies and low rolling resistance tires;
• Certified engine replacements;
• Alternative fuel conversions; and
• Certified vehicle or equipment replacements.

All technologies and engines must be certified by the U.S. Environmental Protection Agency. Alternative fuels include, but are not limited to, natural gas, propane, and electricity. Cost share requirements vary by project. For more information, including application details, see the DEC Vermont Diesel Emissions Reduction Grants website.

Impact Assistance Program for Public Fleets

The Colorado Department of Local Affairs (DOLA) offers funding for the incremental cost of alternative fuel vehicles (AFVs) and alternative fueling infrastructure for public fleets. Eligible entities include municipalities, counties, and special districts. For more information, see the DOLA Energy Impact Assistance Fund Grant website.

Alternative Fuel Vehicle (AFV) and Infrastructure Grants for Public Fleets

Under the Creating Long-term Energy Alternatives Now by Advancing Improvements Regionally (CLEAN AIR) Grants program, the Association of Central Oklahoma Governments (ACOG) issues grants for alternative fuel and advanced technology vehicle projects in the Oklahoma City Area Regional Transportation Study (OCARTS) area. Projects must provide a reduction in vehicle equipment emissions and cannot increase the number of vehicles in applicant fleets. Eligible projects may also include AFV fueling station or charging infrastructure. Eligible applicants include OCARTS-member governments, certain public trusts and public authorities providing essential services to OCARTS-member governments, member entity public transit fleets, and public school fleets whose district boundaries are contained partially or wholly within the OCARTS area. For more information, including open solicitations, see the ACOG CLEAN AIR Grants for Public Fleets website.

Alternative Fuel Vehicle Registration Fees

All-electric vehicle (EV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV) owners are required to pay an additional registration fee as follows:

Owners of a vehicles powered by a fuel other than motor fuel, diesel fuel, electricity, natural gas, or propane are required to pay an additional $120 registration fee. A six-month registration option with fees at prorated amounts is also available.

Beginning in 2023, the additional registration fee paid by EVs and vehicles fueled exclusively by a fuel other than gasoline, diesel, natural gas, or propane must be equal to the maximum annual road usage charge.

(Reference House Bill 186, 2022, and Utah Code 41-1a-1206)

Heavy-Duty Transit Bus Grants

The Wisconsin Department of Administration (DOA) offers grants for the replacement of eligible public transit buses. Funding is available for the replacement and scrapping of model year 1992-2009 heavy-duty public transit buses with new replacement diesel or alternative fueled buses. The program is funded by Wisconsin’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including how to apply, see the DOA VW Mitigation Program website.

Zero Emission Vehicle (ZEV) and Near-ZEV Weight Exemption

ZEVs and near-ZEVs may exceed the state's gross vehicle weight limits by an amount equal to the difference of the weight of the near-zero emission or zero emission powertrain and the weight of a comparable diesel tank and fueling system, up to 2,000 pounds. A ZEV is defined as a vehicle that produces no criteria pollutant, toxic air contaminant, or greenhouse gas emissions when stationary or operating. A near-ZEV is a vehicle that uses zero emission technologies, uses technologies that provide a pathway to zero emission operations, or incorporates other technologies that significantly reduce vehicle emissions. (Reference California Business and Professions Code 12725 and California Vehicle Code 35551)

Clean Vehicle Rebate - El Dorado County

TThe El Dorado County Air Quality Management District (EDC AQMD) offers rebates of up to $599 to residents toward the purchase or lease of a new zero emission vehicle (ZEV) or partial-ZEV, as defined by the California Air Resources Board. To qualify, vehicles must be owned or leased for at least three years within El Dorado County. For more information, including eligibility requirements, see the EDC AQMD Grants and Incentives website.

Heavy-Duty Truck Emission Reduction Grants - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District (SJVAPCD) administers the Truck Replacement Program, which provides funding for fleets to replace old vehicles with lower emitting vehicles or to purchase new zero emission, hybrid, or low oxides of nitrogen (NOx) vehicles. Funding is available for the following projects:

• Replacement of model year (MY) 2009 or older diesel trucks with new trucks that meet or exceed the 2010 NOx emissions standard;
• Replacement of MY 2010 or newer trucks with new zero emission, hybrid, or low-NOx trucks; and
• Purchase of new zero emission, hybrid, or low-NOx trucks.

Alternative Fuel Vehicle (AFV) Technical Training - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District (SJVAPCD) administers the Alternative Fuel Vehicle (AFV) Mechanic Training Program, which provides incentives of up to $15,000 per fiscal year to educate personnel on the mechanics, operation safety, and maintenance of AFVs, fueling stations, and tools involved in the implementation of alternative fuel technologies. For more information, see the SJVAPCD AFV Mechanic Training Component website.

Medium- and Heavy-Duty Diesel Vehicle Replacement Rebates

The Idaho Department of Environmental Quality (IDEQ) offers rebates for the replacement of qualified medium- and heavy-duty diesel vehicles with new diesel or alternative fuel vehicles. Rebates are available for medium- and heavy-duty trucks, school, shuttle, and transit buses, freight switchers, airport ground support equipment, forklifts, and port cargo handling equipment. Vehicles must meet model year requirements, which vary by vehicle type. Funding amounts are based on vehicle type, fuel type (e.g., diesel, alternative fuel, all-electric), and applicant type (e.g., government, non-government). Funding is competitively awarded, and special consideration is given for projects located in air quality priority areas, areas with higher impact on sensitive populations, and oxides of nitrogen priority counties. The program is funded by Idaho’s portion of the Volkswagen (VW) Environmental Mitigation Trust and the Diesel Emissions Reduction Act. For more information, including program guidance and the application, see the IDEQ VW Settlement website.

Establishment of Zero Emission Vehicle (ZEV) and Near-ZEV Component Rebates

The California Air Resources Board (CARB) will establish the Zero Emission Assurance Project (ZAP) to offer rebates for the replacement of a battery, fuel cell, or other related vehicle component for eligible used ZEVs and near-ZEVs. Rebates will be limited to one per vehicle. By January 1, 2024, CARB must publish a report to the legislature detailing the number of rebates awarded, the emissions benefits of the ZAP, and the impacts of the ZAP on low-income consumer decisions to purchase zero and near-zero emissions vehicles. A ZEV is defined as a vehicle that produces no criteria pollutant, toxic air contaminant, or greenhouse gas emissions when stationary or operating. A near-ZEV is a vehicle that uses zero emission technologies, uses technologies that provide a pathway to zero emission operations, or incorporates other technologies that significantly reduce vehicle emissions. Rebates will be available through July 31, 2025. (Reference California Health and Safety Code 44274.9)

Zero Emission Vehicle (ZEV) Support

The North Carolina Department of Transportation (DOT), in coordination with the Department of Environmental Quality, developed a ZEV Plan to guide ZEV adoption in North Carolina and increase the number of ZEVs in the state to at least 80,000 by 2025. The ZEV Plan provides guidelines for establishing state-wide vehicle corridors, installing charging stations and other infrastructure, and incorporating best practices for increasing ZEV adoption. For more information, see the DOT’s Climate Change & Clean Energy: Plans & Progress website.

(Reference Executive Order 80, 2018)

Zero Emission Vehicle (ZEV) Requirements

State-owned vehicle fleets must prioritize ZEVs in the purchase or lease of new vehicles and use ZEVs for agency travel when feasible. The Department of Administration (Department) developed the North Carolina Motor Fleet ZEV Plan (Plan). The Plan identifies the types of trips for which ZEV-use is feasible, recommends infrastructure necessary to support ZEV use, and develops ZEV procurement options and strategies. The Department provides information about each agency’s ZEV acquisitions and miles driven by vehicle type annually. For more information, see the Department’s Climate Change & Clean Energy: Plans & Progress website.

(Reference Executive Order 80, 2018)

Diesel Emission Reduction Project Funding

The Iowa Department of Transportation (IowaDOT) provides funding for light-duty zero-emission fueling infrastructure. Funding is available for Level 2 and direct current fast charging (DCFC) stations located at public places, workplaces, and multi-unit dwellings. Funding is also available for public light-duty hydrogen refueling stations. This grant program is funded by Iowa’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including how to apply, see the IowaDOT Volkswagen Clean Air Act Partial Settlements website.

Alternative Fuels Incentive Grant (AFIG) Program

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 as a bi-fuel, dual-fuel, or dedicated vehicle
• Incremental cost expenses to purchase bi-fuel, dual-fuel, or dedicated vehicles
• The cost to purchase and install the necessary fleet refueling or home-refueling equipment for bi-fuel, dual-fuel, or dedicated vehicles
• 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)

Plug-In Hybrid Electric Vehicle (PHEV) and Zero Emission Vehicle Rebates

The Clean Vehicle Rebate Program provides rebates to Oregon residents, businesses, non-profit organizations, and government agencies for the purchase or lease of a new electric vehicle (EV), including a PHEV, electric motorcycle, or fuel cell electric vehicle (FCEV). New EVs and FCEVs with a battery capacity greater than 10 kilowatt-hours (kWh) are eligible for a rebate of $2,500. EVs and FCEVs with a battery capacity of less than 10 kWh are eligible for a rebate of $1,500.

Electric motorcycles are eligible for a rebate of $750. EVs may not have an MSRP of more than $50,000, and eligible FCEVs may not have an MSRP of more than $60,000. For more information, see the Clean Vehicle Rebate Program website.

(Reference Temporary Administrative Order DEQ 19-2021, and Oregon Revised Statutes 468.442 - 468.444)

State Emissions Reduction Strategy

The governor established the Climate Change Task Force (Task Force) to evaluate strategies to reduce GHG and criteria pollutant emissions in New Mexico, including potential low emission vehicle and ZEV standards. New Mexico will pursue GHG emissions reduction of at least 45% below 2005 levels by 2030. The Task Force developed a climate strategy with initial recommendations in 2019 and published a progress report in 2020. For more information, see the Task Force website. (Reference Executive Order 2019-003, 2019)

Zero Emission Vehicle (ZEV) Deployment Support

The Executive Office of the Mayor will establish a transportation electrification program that requires all public buses, light-duty vehicles associated with privately-owned fleets that can transport 50 or more passengers, commercial motor carriers, limousine service vehicles, and taxis certified to operate in the District of Columbia to be ZEVs by 2045.

Emissions Reduction Plan for Transportation Network Companies

By February 1, 2022, and every two years thereafter, each private vehicle-for-hire company must develop a greenhouse gas emissions reduction plan, including actionable proposals to reduce emissions, and submit it to the District of Columbia Public Service Commission. Plans must include strategies to increase the proportion of vehicle-for-hire drivers with zero emission vehicles (ZEVs) and to increase the proportion of vehicle miles completed by ZEVs relative to total vehicle miles traveled. (Reference District of Columbia Code 50-741)

Heavy-Duty Vehicle Replacement Grants

The Montana Department of Environmental Quality (DEQ) offers grants for the replacement of qualified medium- and heavy-duty diesel transit buses with new all-electric, diesel hybrid, compressed natural gas, or propane shuttle or transit buses. Funding is also available for the replacement of school buses and airport ground support vehicles with all-electric vehicles. The program is funded by Montana’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and the application, see the DEQ Volkswagen Settlement website.

Energy Performance Contract Authorization

Government entities in Montana are authorized to enter into energy performance contracts to pay for energy efficiency improvements with energy savings, including savings from the use of energy-efficient vehicles. (Reference Montana Code Annotated 90-4-1101)

Energy and Fuel Cost Savings Contracts

Government fleets may finance alternative fuel vehicles or related infrastructure through guaranteed utility savings contracts where vehicle operational and fuel cost savings pay for the capital investment. Guaranteed utility savings contracts must show that the cost savings resulting from the alternative fuel and infrastructure projects are equal to or higher than the annual contract payments. (Reference New Mexico Statutes 6-23-2 and 6-23-3)

Alternative Fuel Project Grants

The South Carolina Office of Regulatory Staff-Energy Office (Energy Office) offers grants of up tp $10,000 for alternative fuel demonstration projects. Eligible applicants include state agencies, local governments, public colleges and universities, K-12 public schools, and non-profit organizations. For more information, including how to apply, see the Energy Office’s Loans, Grants & Tax Incentives website.

Energy Performance Contract Authorization

Public entities in Mississippi are authorized to enter into energy services and performance contracts to pay for energy efficiency improvements with energy savings, including savings from the use of alternative fuel vehicles and related infrastructure.

(Reference Mississippi Code 31-7-14)

Green Transportation Grant Program

The Washington State Department of Transportation (WSDOT) offers grants for projects that reduce the carbon intensity of the Washington transportation system, including fleet electrification, modification or replacement of facilities to facilitate fleet electrification and hydrogen fueling, upgrades to electrical transmission and distribution systems, and constructing of charging and fueling infrastructure. To be eligible, a transit authority must provide matching funding of at least 20% of the total cost of the project. For more information, including funding availability and program dates, see the WSDOT Green Transportation Capital Grants (Reference Revised Code of Washington 47.66.120)

Alternative Fuel Vehicle (AFV) Retail Sales and Use Tax Exemption

The sale or lease of new or used passenger vehicles, light-duty trucks, and medium-duty passenger AFVs is exempt from the state retail sales and use tax. Eligible AFVs include those powered by natural gas, propane, hydrogen, or electricity. To be eligible, new vehicles may not be valued above $45,000 and used vehicles may not be valued above $30,000. The tax exemption may apply to all or a portion of the vehicle’s value. The maximum eligible amount for used purchased or leased vehicles is $16,000. The Maximum exemption amounts for vehicles are as follows:

For more information, see the Renewable Energy/Green Incentives section of Washington Department of Revenue's Incentives Programs website.

(Reference Revised Code of Washington 82.12.9999)

Alternative Fuel Vehicle (AFV) Technical Assistance and Education Program

The Washington State University (WSU) Energy Program must establish and administer a technical assistance and education program on the use of AFVs for public agencies, including state and local governments. For more information, visit the WSU Energy Program Green Transportation Program website. (Reference Revised Code of Washington 28B.30.903)

Alternative Fuel Vehicle (AFV) Registration

Owners of plug-in electric vehicles and AFVs must pay an annual fee of $50, in addition to standard registration fees. Fees contribute to the State Highway Fund.

(Reference Hawaii Revised Statutes 249-31)

Zero Emission Vehicle (ZEV) Initiative

The New Jersey Department of Environmental Protection, New Jersey Board of Public Utilities, and the New Jersey Economic Development Authority signed a memorandum of understanding (MOU) to increase the number of ZEVs in the State and meet the State’s goal of registering 330,000 ZEVs by 2025 through involvement in the New Jersey Partnership to Plug-In (Partnership). The responsibilities of the Partnership include:

• Mapping existing and potential locations for electric vehicle (EV) charging stations;
• Reviewing state- and municipal-level permit processes for the installation of EV charging stations and identifying best practices to streamline these processes;
• Expanding existing efforts to educate consumers about ZEVs;
• Evaluating strategies to finance an EV charging station network;
• Developing a rebate program to incentivize the purchase of new and used ZEVs;
• Creating a method to track the usage of EV charging stations throughout the State;
• Identifying programs and resources that can be used to attract ZEV-related companies to the State; and
• Coordinating with other state agencies and departments to further implement the goals of the Partnership.

For more information, see the Regional Greenhouse Gas Initiative website.

Fuel-Efficient Vehicle and Emission Reduction Incentives

The Vermont Agency of Transportation (VTrans) administers the High Fuel Efficiency Used-Vehicle Program, MileageSmart, which provides incentives of up to $5,000 to replace eligible vehicles with a pre-owned vehicle that has a U.S. Environmental Protection Agency (EPA) combined city/highway fuel economy of at least 40 miles per gallon (mpg).

VTrans also offers vouchers of up to $2,500 for the repair of vehicles that failed the on-board diagnostic (OBD) systems inspection. Eligible vehicles for replacement include those that have failed the OBD systems inspection or those that are more than 15 years old and have an EPA combined city/highway fuel economy of less than 25 mpg. Eligible vehicles for a repair voucher are those that have failed the OBD systems inspection, require repairs that are not under warranty, and will be able to pass the inspection once the repairs are made. For more information on the emissions repair program, visit the VTrans Statewide Vehicle Incentives Programs website. The emissions repair program must be operational by January 1, 2023.

(Reference Act 59, 2019 and Act 55, 2021)

Transportation Impacts Stakeholder Group

The Colorado Department of Transportation (CDOT) will convene and engage with a stakeholder group to examine and address impacts of new transportation technologies and business models. The topics include funding transportation infrastructure needed to support the adoption of zero-emission vehicles (ZEV) and incentivizing the adoption of ZEVs for use in commercial applications. In 2019, CDOT and the Colorado Energy Office published a report on the progress and policy recommendations of the stakeholder group.

(Reference Colorado Revised Statutes 43-1-125)

Zero-Emission Transit Bus Requirement

By 2040, all public transit agencies must transition to 100% zero-emission bus fleets. Zero-emission bus technologies include battery-electric or fuel cell electric. Transit agencies must purchase or operate a minimum number of zero-emission buses according to the following schedules:

Each transit agency will submit a plan demonstrating how it will purchase clean buses, develop infrastructure, train personnel, and other required details. Large transit agencies must submit a plan in 2020 and small agencies must submit a plan in 2023. Additional rules and requirements apply.

For more information, including definitions of large and small transit agencies and additional terms and conditions, see the California Air Resources Board’s Innovative Clean Transit website.

(Reference California Code of Regulations Title 13, Section 2023.1)

Zero-Emission Airport Shuttle Requirement

By 2035, all airport fixed-route shuttle fleets must transition to 100% zero-emission vehicles (ZEVs). Zero-emission shuttle technologies include battery-electric or fuel cell electric technologies. Starting in 2022, shuttle fleets must report the details of their vehicles to the California Air Resources Board (CARB). Starting in 2023, if fleets replace a ZEV shuttle, the replacement must be a ZEV. For additional terms and conditions, see CARB’s Zero-Emission Airport Shuttle website. (Reference Resolution Number 19-8, 2019)

Zero Emission Vehicle (ZEV) Deployment

The Oregon Department of Energy (ODOE) will monitor state ZEV adoption goal progress for registered vehicles, new vehicle purchases, and the state fleet. The state established the following goals for vehicle registrations:

• By 2020, 50,000 vehicles will be ZEV;
• By 2025, 250,000 vehicles will be ZEV; and
• By 2030, 25% of vehicles will be ZEV.

In addition, the state established the following goals for new vehicle purchases:

• By 2030, 50% of all new vehicle purchases will be ZEV; and
• By 2035, 90% of all new vehicle purchases will be ZEV.

By 2029, all state fleet vehicles should be ZEVs. ODOE must submit a biennial report by September 15 on the status of ZEV adoption. If ZEV adoption goals are not met, ODOE report must include strategies for increased adoption rates.

(Reference Oregon Revised Statutes 283.327 and 283.398)

Diesel Emission Reduction Grants

The Illinois Environmental Protection Agency (IEPA) administers the Driving a Cleaner Illinois program for diesel emission reduction projects. Projects are funded by Illinois’ portion of the Volkswagen Environmental Mitigation Trust, the U.S. Environmental Protection Agency's Diesel Emission Reduction Act (DERA) Program, and the U.S. Department of Transportation Federal Highway Administration’s Congestion Mitigation and Air Quality Improvement (CMAQ) Program. For more information, including funding availability, see the IEPA Driving a Cleaner Illinois website.

Zero-Emission Transit Bus Tax Exemption

Zero-emission transit buses are exempt from state sales and use taxes when sold to public agencies eligible for the Low Emission Truck and Bus Purchase Vouchers. This exemption expires January 1, 2024. (Reference California Revenue and Taxation Code 6377)

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Grant - Bay Area

The Bay Area Air Quality Management District’s (BAAQMD) Clean Cars for All program offers grants up to $9,500 to income-eligible residents to replace a vehicle eligible for retirement with a EV or FCEV. Eligible vehicles for replacement should be model year 2005 or older. Recipients may buy or lease a new or used EV or FCEV. Grants vary depending on the household income and vehicle technology. Vehicles that are replaced must be turned in at an authorized dismantler.

For more information, including additional eligibility requirements and how to apply, see the BAAQMD Clean Cars for All website.

Diesel Emission Reduction Funding

The New Mexico Environment Department (NMED) provides U.S. Environmental Protection Agency Diesel Emission Reduction Act (DERA) funding for heavy-duty on-road new diesel or alternative fuel repowers and replacements, as well as off-road all-electric repowers and replacements. Vehicles that qualify for replacement or repower include:

• Model Year (MY) 1992-2009 Class 8 local freight trucks and port drayage trucks;
• MY 1992-2009 Class 4-7 local freight trucks;
• MY 2009 or older Class 4-8 school buses, shuttle buses, and transit buses;
• Forklifts with greater than 8,000 pounds of lift capacity;
• Port cargo handling equipment; and
• High emissions diesel-powered or spark ignition airport ground support equipment.

Energy Master Plan

New Jersey has developed an Energy Master Plan (EMP) that will guide the State to achieve its goals of electrifying the transportation sector and achieving 100% carbon-neutral electricity generation by 2050. The EMP calls for decarbonization of the transportation sector through:

• Supporting the deployment of 330,000 light-duty electric vehicles (EVs) by 2025;
• Deploying electric vehicle (EV) charging stations throughout the state;
• Creating incentives for EV charging stations;
• Educating consumers and fleet owners on EVs;
• Transitioning state fleet vehicles to EVs;
• Partnering with industry to develop incentives for medium- and heavy-duty all-electric or fuel-cell vehicles; and
• Exploring policies that accelerate the adoption of alternative fuels.

For more information, see the Energy Master Plan website.

State Emissions Reductions and Reporting Requirements

Oregon will pursue transportation electrification as part of greenhouse gas emissions reduction targets of at least 45% below 1990 levels by 2035, and at least 80% below 1990 levels by 2050. Select state agencies must report actions to reduce emissions annually. The Oregon Department of Transportation published a report on statewide transportation electrification infrastructure analysis in June 2021. Additional requirements apply. (Reference Executive Order 20-04, 2020)

Diesel Emission Reduction Grants

The South Dakota Department of Environment and Natural Resources (DENR) administers the Clean Diesel Grant Program for bus diesel emission reduction projects. Projects are funded by South Dakota’s portion of the Volkswagen Environmental Mitigation Trust and the U.S. EPA’s Diesel Emission Reduction Act (DERA) Program. For more information, including how to apply, see the South Dakota Clean Diesel Grant Program website.

High Occupancy Vehicle (HOV) Lane Exemption

The Arizona Department of Transportation (ADOT) allows qualified alternative fuel vehicles (AFV) with an AFV license plate to use HOV lanes, regardless of the number of occupants. Qualified AFVs are defined as vehicles powered exclusively by electricity, propane, natural gas, hydrogen, or a blend of hydrogen with propane or natural gas. Qualified AFVs must not be capable of operating on any other fuel type. This exemption expires September 20, 2025. For more information about vehicle eligibility and HOV access, visit the ADOT AFV website. (Reference Arizona Revised Statutes 1-215 and 28-2416)

Vehicle Emissions Reduction and Electric Vehicle (EV) Charging Station Project Funding

The New York State Department of Environmental Conservation (NYSEDEC) provides funding for diesel vehicle replacement projects detailed in the Clean Transportation NY Beneficiary Mitigation Plan (Plan). The projects are funded by New York’s portion of the Volkswagen (VW) Environmental Mitigation Trust. The Plan provides funding for the replacement or repower of diesel medium- and heavy-duty vehicles, including Class 8 local freight or port drayage trucks, Class 4-8 school, shuttle, or transit buses, and Class 4-7 local freight trucks. The Plan also provides funding for the all-electric repower or replacement of airport ground support equipment, forklifts, and port cargo handling equipment, as well as light-duty EV charging stations. For more information, including the funding opportunity list and funding priorities, see the NYSDEC VW Funding for Diesel Replacement and EV Charging Station Projects website.

Zero Emission Vehicle (ZEV) Deployment Support

Maine joined California, Connecticut, Maryland, Massachusetts, New Jersey, New York, 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 (EV) charging stations 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.

Fuel Cell Task Force

The New Jersey Fuel Cell Task Force (Task Force) was established to increase fuel cell use in the state, including fuel cell electric vehicles. The Task Force will support the growth of fuel cell companies, increase fuel cell use in state departments and agencies, develop a plan to expand fuel cell infrastructure, as well as provide information and educational resources to the public, government, and industry on the benefits of fuel cell technology. The Task Force must submit a report to the governor and the legislature within a year after of its organization. (Reference New Jersey Statutes 26:2C-68)

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Multi-State Zero Emission Trucks and Buses Deployment Plan

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of MHD ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

The Task Force will develop a multi-state action plan to support electrification of MHD vehicles. The Task Force will consider actions to accomplish the goals of the MOU, including limiting all new MHD vehicles sales in the signatory states to ZEVs by 2050. The signatory states will also seek to accelerate the deployment of MHD ZEVs to benefit disadvantaged communities and explore opportunities to coordinate and partner with key stakeholders.

For more information, see the MHD ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement

The California Air Resources Board’s (ARB) Advanced Clean Truck Program requires all new medium- and heavy-duty vehicles sold in California to be a ZEV by 2045. Zero-emission technologies include all-electric and fuel cell electric vehicles. Beginning in 2024, manufacturers seeking ARB certification for Class 2b through Class 8 chassis or complete vehicles with combustion engines will be required to sell zero-emission trucks as an increasing percentage of their annual California sales. Manufacturers must achieve the following annual sales percentages for medium- and heavy-duty ZEVs sold in California:

Additionally, entities with annual gross revenues greater than $50 million, fleet owners with 50 or more medium- and heavy-duty vehicles, and any California government or federal agency with one or more vehicles over 8,500 pounds must report their existing fleet operations to ensure fleets are purchasing and placing zero-emission trucks in the correct service locations.

For more information, including additional requirements and exemptions, see the ARB Advanced Clean Trucks Program website.

(Reference California Code of Regulations Title 13, Sections 1963-1963.5 and 2012-2012.2)

Oklahoma Commercial Property Assessed Clean Energy (C-PACE) Program Authorization

Counties are authorized to establish C-PACE programs to facilitate loans between qualifying property owners and private lenders. Loans may be offered to commercial properties for projects related to alternative fuel vehicles and associated infrastructure. For more information, including eligibility requirements, see the Oklahoma C-PACE website.

(Reference Oklahoma Statutes 19-460.5)

Medium- and Heavy-Duty Grant Program

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) offers grants for eligible on- and off-road vehicles and equipment. Projects must reduce nitrogen oxide emissions, improve air quality, and increase adoption of zero emission or alternative fuel vehicles and equipment. Eligible vehicles and equipment include local freight vehicles (medium- and heavy-duty trucks and port drayage trucks), shuttle and transit buses, port cargo handling equipment and forklifts, airport ground support equipment, and more. The program is funded by Michigan’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including available requests for proposals, see the EGLE Fuel Transformation Program website.

Heavy-Duty Zero Emission Vehicle (ZEV) Grant – Santa Barbara County

The Santa Barbara County Air Pollution Control District (SBCAPCD) provides grants to offset the costs of zero-emission heavy-duty vehicles that reduce on-road emissions within Santa Barbara County. Eligible projects include the replacement of commercial trucks and buses, transit buses, authorized emergency vehicle, transportation refrigeration units, and more. Eligible technology includes the purchase of battery-electric or hydrogen fuel cell vehicles. Priority will be given to projects located in multi-unit dwellings or low-income communities. For more information, including current funding opportunities, see the SBCAPCD Clean Air Grants website.

Alternative Fuel Infrastructure Grant – Santa Barbara County

The Santa Barbara County Air Pollution Control District (SBCAPCD) provides grants for the installation of alternative fuel infrastructure located in Santa Barbara County. Grants may cover 80% of project cost, up to $250,000. Eligible projects include electric vehicle supply equipment, hydrogen, and natural gas fueling stations. Priority will be given to projects located at multi-unit dwellings or low-income communities. For more information, including current funding opportunities, see the SBCAPCD Clean Air Grants website.

Zero Emission Transit Funding

The California Clean Mobility Options Voucher Pilot Program offers vouchers of up to $1,000,000 per project for the purchase of zero-emission vehicles, infrastructure, planning, outreach, and operations projects in low-income and disadvantaged communities. For more information, see the Clean Mobility Options website.

Zero Emission Vehicle (ZEV) and Infrastructure Support

The California Energy Resources Conservation and Development Commission must provide technical assistance and support for the development of zero-emission fuels, fueling infrastructure, and fuel transportation technologies. Technical assistance and support may include the creation of research, development, and demonstration programs. (Reference California Public Resources Code 25617)

Bus Replacement Grant

The California Air Resources Board (CARB) offers grants for the purchase of new zero-emission buses to replace old gasoline, diesel, compressed natural gas, or propane buses. Grants are available in the following amounts:

Non-compliant school buses are vehicles that are not compliant with the CARB Truck and Bus Regulation. Eligible applicants include owners of transit, school, and shuttle buses. Grants are awarded on a first-come, first served basis. The program is funded by California’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding availability, see the CARB’s Volkswagen Settlement website.

Heavy-Duty Low Emission Vehicle Replacement and Repower Grants

The South Coast Air Quality Management District (SCAQMD) offers grants for the replacement or repower of eligible class 7 and 8 heavy-duty vehicles with low oxide of nitrogen (NOx) vehicles. Grants may cover up to 50% of non-government project costs and up to 100% of government project costs; up to $3 million per entity. Eligible vehicles include, Class 7 and 8 freight trucks, drayage trucks, dump trucks, waste haulers, and concrete mixers, freight switcher locomotives. Grants are awarded on a first-come, first-served basis. The program is funded by California’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and application, see the California Air Resources Board’s Volkswagen Settlement website.

Light-Duty Zero Emission Vehicle (ZEV) Requirement

All sales of new light-duty passenger vehicles in California must be ZEVs by 2035. ZEVs include battery-electric and fuel cell electric vehicles. The California Air Resources Board (CARB) will develop regulations related to in-state sales of new light-duty cars and trucks. CARB will also work with state agencies to develop a ZEV Market Development Strategy (Strategy) to support these regulations and assess statewide ZEV infrastructure by January 31, 2021. The Strategy will be updated triennially. (Reference Executive Order N-79-20)

Alternative Fuel Vehicle (AFV) Grants

The Clean Fuels Incentive Program (CFIP), administered by the Maryland Energy Administration (MEA), provides grants to fleets for the retrofit or purchase of new AFVs. Grant award amounts vary and may cover up to 100% of the incremental AFV cost. Grants are available in the following amounts:

Eligible applicants must be a fleet vehicle operator or purchaser and may include school districts, nonprofits, commercial entities, corporations, and local and municipal governments. AFVs purchased for individual or personal use are ineligible. Vehicles receiving funding from other state programs are ineligible. Grants will be awarded on a competitive basis, with equity and environmental justice considerations as part of the evaluation criteria. For more information, including additional eligibility criteria, see MEA’s CFIP Program website.

Zero-Emission Truck Rebates

Massachusetts Department of Energy Resources' Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Trucks Program offers rebates to public and private fleets for the purchase of all-electric and fuel cell electric trucks with a purchase price of more than $50,000 and gross vehicle weight rating (GVWR) of more than 8,500 pounds (lbs.). Rebate amounts are available in a declining three block rate structure, determined by the number of trucks per weight group. Rebates will be offered in the following amounts:

Purchasers of vehicles with a GVWR of greater than 14,000 lbs. can apply for a voucher to reserve a rebate at the current rebate block value. A voucher may be provided to an applicant who has demonstrated an intent to purchase, which may be evidenced by a completed purchase order. Applicants must apply for a rebate following the purchase and registration of the truck in Massachusetts and must retain ownership of the truck for a minimum of 36 months. MOR-EV Trucks rebates cannot be combined with funds from the Department of Environmental Protection Volkswagen Settlement-Funded Grant & Incentive Programs.

Additional terms and conditions apply. For more information, visit the MOR-EV Rebate Program website.

Medium-Duty Zero Emission Vehicle (ZEV) Voucher Program

The New Jersey Zero Emission Incentive Program (NJ ZIP) will pilot a voucher program for the purchase of new, medium-duty ZEVs registered in New Jersey. Commercial, industrial, or institutional organizations located, or primarily operating, within the Greater Camden, Newark, New Brunswick, and greater Shore areas are eligible to apply. Vouchers are available for up to 100% of purchase price amounts, based on the following weights:

Vehicles must be purchased through qualified vendors, after receiving voucher approval. Additional funding is available to qualified woman-, minority-, or veteran-owned businesses. Funding may not be combined with other state incentive programs unless applicants meet multiple requirements. This program is funded by Regional Greenhouse Gas Initiative proceeds. For more information, including eligibility requirements, see the NJ ZIP Program website.

(Reference New Jersey Administrative Code 7:27D)

Freight Efficiency and Zero-Emission Vehicle Infrastructure Grants

The U.S. Department of Transportation (DOT) Infrastructure for Rebuilding America (INFRA) grant program provides federal financial assistance to eligible transportation infrastructure projects that address climate change and environmental justice impacts, among other key objectives. Eligible projects include, but are not limited to, supporting a modal shift in freight or passenger movement to reduce vehicle miles traveled, developing zero-emission vehicle infrastructure, using one or more demand management strategies to reduce congestion and greenhouse gas emissions, and supporting the installation of electric vehicle charging stations along the National Highways System. Eligible applicants for INFRA grants are states, metropolitan planning organizations that serve urbanized areas with a population of more than 200,000 individuals, local governments, political subdivisions, port authorities, and tribal governments. Additional terms and conditions apply. For more information, including funding application deadlines, see the DOT INFRA Grants website.

Zero Emission Vehicle (ZEV) Sales Requirement and Low-Emission Vehicle (LEV) Standards

The Virginia Air Pollution Control Board has adopted the California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations. Beginning January 1, 2024, these regulations apply to all passenger cars, light-duty trucks, and medium-duty vehicles. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements.

(Reference Virginia Code 10.1-1307.04)

Low Carbon Fuel Standard

The Washington Department of Ecology will develop rules to establish a Clean Fuels Program (Program) that reduces the overall carbon intensity of transportation fuels used in the state by 20% below 2017 levels by 2035. The Program standards must be based on the carbon intensity of gasoline, gasoline substitutes, diesel, and diesel substitutes. The Program must go into effect no later than January 1, 2023. (Reference House Bill 1091, 2021)

Alternative Fuel Vehicle (AFV) Grant Authorization

Local governments are authorized to establish a green bank to promote investment in clean energy technologies, including AFVs and related infrastructure.

(Reference Virginia Code 15.2-958.3:1)

State Zero Emission Vehicle (ZEV) and Infrastructure Deployment Requirements

Massachusetts executive branch agencies and public institutions of higher education must collectively work to meet the following targets, to the extent feasible:

Acquire ZEVs so that the total state fleet consists of:

• 5% ZEVs in 2025;
• 20% ZEVs in 2030;
• 75% ZEVs in 2040; and
• 100% ZEVs in 2050

• Fiscal year (FY) 2023, all vehicles with a gross vehicle weight rating (GVWR) of 8,500 pounds (lbs.) or less.
• FY 2025, all vehicles with a GVWR of 14,000 lbs. or less.
• FY 2030, all vehicles with a GVWR of 14,000 lbs. or more.

• 350 EV charging stations in 2025; and
• 500 EV charging stations in 2030.

Police vehicles are exempt from these requirements, but public safety agencies are encouraged to meet these requirements as long as vehicles meet operational needs.

Additional conditions apply. For more information, see the Massachusetts Department of Energy Resources Leading by Example Program website.

(Reference Executive Order 594, 2021)

Zero Emission Vehicles (ZEVs) Support

The Department of Commerce must develop and maintain a publicly available mapping and forecasting tool that locates and provides information on electric vehicle charging and refueling infrastructure. Electric utilities with more than 25,000 customers must analyze how their resource plans support and account for anticipated levels of ZEV use, relevant infrastructure forecasts and associated energy impacts, and information from the utilities' transportation electrification plans. (Reference Revised Code of Washington 19.280.030)

Diesel Emissions Reductions Grants

The Massachusetts Department of Environmental Protection (MassDEP) provides U.S. Environmental Protection Agency Diesel Emissions Reduction Act (DERA) funding for projects that reduce diesel emissions in Massachusetts. Funding for eligible project costs is available for local or state agencies and public colleges and universities that reduce diesel emissions by converting engines to alternative fuels, retrofitting exhaust controls, purchasing new vehicles, or adding idle reduction equipment. MassDEP prioritizes projects that benefit environmental justice communities. Additional terms and conditions apply. For more information, including funding amounts and how to apply, see the MassDEP Apply for a DERA Open Solicitation Grant website.

Carbon Penalty Prohibition

Local governments are prohibited from imposing penalties, fees, or taxes on carbon or carbon use, including but not limited to the carbon content of fuels or electricity in the transportation sector. (Reference Senate Bill 257, 2021)

Fuel Cell Electric Vehicle (FCEV) Tax Exemption

Beginning July 1, 2022, 50% of the retail sales and state use tax does not apply to the sale or lease of the first 650 purchases of new passenger vehicles, light-duty trucks, and medium-duty passenger vehicles powered by fuel cells. The maximum value amount eligible for the tax exemption is the less of $16,000 or the fair market value of the vehicle. Additionally, all used FCEV sales and leases are exempt from the retail and state use tax. The FCEV exemption may not be combined with the Retail Sales and Use tax Exemption.

(Reference Revised Code of Washington 82.08.993 and 82.12.817)

Zero Emission Vehicle Infrastructure and Advanced Vehicle Grants

The U.S. Department of Transportation (DOT) Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program provides federal financial assistance to eligible surface transportation infrastructure projects. Eligible projects include, but are not limited to, supporting connected, electric, and automated vehicles, a modal shift in freight or passenger movement to reduce greenhouse gas emissions, and the installation of zero-emission vehicle infrastructure. Eligible applicants for RAISE grants are state, local, tribal, and U.S. territories’ governments, including transit agencies, port authorities, metropolitan planning organizations, and other political subdivisions of state or local governments. Additional terms and conditions apply. For more information, see the DOT RAISE Grants website.

Zero Emission Bus Acquisition Requirement

Beginning in 2023, the Maryland Transit Administration (MTA) may only purchase zero emission buses for the state transit bus fleet. If the MTA determines that there are no zero emission buses that meet performance requirements, an alternative fuel bus may be purchased instead. The MTA must develop charging infrastructure to support zero emission buses throughout the state, provide safety and workforce development training for operations and maintenance workforces, and ensure no state government jobs are transferred to a contracting entity as a result of the transition to zero emission transit buses. MTA must also submit an annual report to the legislature beginning on January 1, 2022.

(Reference Senate Bill 61, 2022 and Maryland Statutes, Transportation Code 7-406)

Zero Emission Vehicle (ZEV) Financial Impact Analysis

The Maryland Energy Administration and the Maryland Department of Transportation must submit a report to the legislature that examines the fiscal impact of ZEVs registered in Maryland and a survey of measures enacted by other states or jurisdictions to minimize the impacts of ZEVs on state transportation funds.

(Reference Maryland Statutes, State Government Code 9-2009)

Clean Energy Career Program

The State Council and the Colorado Department of Natural Resources must create an industry driven energy sector career pathway for implementation before the 2022-2023 academic year. The energy sector includes occupations and activities relating to the development, installation, and maintenance of products or technologies in the areas of electric vehicles, electric vehicle supply equipment, hydrogen fuel cell technology, and renewable natural gas.

(Reference Colorado Revised Statutes 42-46.3-104)

Hydrogen Infrastructure Support

The Hydrogen Production, Transportation, and Infrastructure Task Force (Task Force) must evaluate incentives to develop hydrogen technology and infrastructure and the viability of existing hydrogen resources and infrastructure. In December 2021, the The Task Force submitted a report of its findings and recommendations to the legislature.

(Reference Senate Bill 1021, 2021)

Zero Emission Vehicle (ZEV) Sales Requirements and Low Emission Vehicle (LEV) Standards

Minnesota has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. Beginning January 1, 2024, these regulations apply to all passenger cars, light-duty trucks, and medium-duty vehicles. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. For more information, see the Clean Cars Minnesota website.

(Reference Minnesota Administrative Rules Chapter 7023)

Zero Emission Vehicle (ZEV) Infrastructure Support

Any individual, business, or public entity completing infrastructure improvement projects or redeveloping residential, commercial, industrial, public, or other structures is encouraged to include ZEV fuel and charging infrastructure in redevelopment plans. ZEVs must meet emissions and compliance requirements specified in Title 13 of the California Code of Regulations for the applicable model year, including but not limited to, electric vehicles (EVs) and hydrogen fuel cell vehicles. Infrastructure projects are encouraged to:

Governmental Fleet Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Governmental Alternative Fuel Fleet Grant Program (GAFF) as part of the Texas Emissions Reduction Plan (TERP) for the purchase or lease of new vehicles powered by natural gas, propane, hydrogen, or electricity. Grants are available in the following amounts:

Up to 10% of awarded funds may be granted for the purchase, lease, or installation of refueling infrastructure or equipment, or refueling services in conjunction with an eligible vehicle purchase or lease. Special districts and government entities that operate a fleet greater than 15 vehicles are eligible. For more information, see the TCEQ GAFF website. (Reference Texas Statutes, Water Code 5.124 and 5.229, and Texas Statutes 386.153)

Clean Energy Grants

The Maryland Smart Energy Communities (MSEC) program, administered by the Maryland Energy Administration (MEA), offers local governments grants for transportation-related projects, including the purchase of new electric vehicles (EVs) or alternative fuel vehicles and the installation of EV charging stations. Grants are available in the following amounts:

Communities already participating in the MSEC program may receive a maximum award of $55,000 per project and new communities may receive up to $75,000. Additional requirements may apply. For more information, including requirements and application deadline, see the MEA MSEC website.

Clean Transportation and Infrastructure Loans

Efficiency Maine administers the Maine Clean Energy and Sustainability Accelerator (Accelerator) to provide loans for qualified alternative fuel vehicle (AFV) projects, including the purchase of electric vehicles, fuel cell electric vehicles, zero emission vehicles (ZEVs), and associated vehicle charging and fueling infrastructure. Recipients must direct 40% of funds towards low-income communities and communities of color.

(Reference Legislative Document 1659, 2021 and Title 35-A, Section 2360)

Hydrogen Demonstration Project Grants

The Hydrogen Shot was established within the U.S. Department of Energy’s Energy Earthshots Initiative with the goal to reduce the cost of clean hydrogen by 80% to $1 per kilogram in one decade. Hydrogen Shot funds hydrogen demonstration projects that can help lower the cost of hydrogen, reduce carbon emissions and local air pollution, create good-paying jobs, and provide benefits to disadvantaged communities. Hydrogen Shot focuses on various projects that bridge technical gaps in hydrogen production, storage, and distribution and utilization technologies, including fuel cells. For more information, visit the Hydrogen Shot website.

Zero Emission Vehicle (ZEV) Requirements

All sales or leases of new light-duty passenger vehicles in New York must be ZEVs by 2035, and all sales or leases of new medium- and heavy-duty vehicles must be ZEVs by 2045. All new off-road vehicle and equipment purchases must be zero emission by 2035.

• Regulations and strategies to meet the 2035 and 2045 goals;
• A ZEV market development strategy by January 31, 2023, and update it triennially;
• Strategies to accelerate deployment of affordable ZEV infrastructure that serves low-income and disadvantaged communities; and,
• Near-term actions and investment strategies to improve ZEV infrastructure by July 15, 2023.

Zero Emission Vehicle (ZEV) Sales Requirements and Low Emission Vehicle (LEV) Standards

Nevada adopted the California motor vehicle emissions 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, beginning with model year 2025. These regulations apply to all passenger cars, light-duty trucks, and medium-duty vehicles. For more information, see the Clean Cars Nevada website. (Reference Nevada Administrative Code 445B.2 through 4445B.36 and Nevada Administrative Regulation R093-20)

Zero-Emission Vehicle (ZEV) Requirements for Transportation Network Companies (TNC)

The California Air Resource Board (CARB) and the California Public Utilities Commission must develop and implement new requirements for reducing the greenhouse gas emissions (GHGs) from TNCs. By January 1, 2021, CARB must adopt annual goals requiring TNCs to phase in ZEVs by 2023 and achieving at least 90% of the miles driven by TNCs by ZEVs by 2030. For more information, see the California Clean Miles Standard website. (Reference California Health and Safety Code 44274.4 and California Public Utilities Code Section 5431 and 5450)

Alternative Fuel Corridor (AFC) Grants

The U.S. Department of Transportation (DOT) must establish a competitive grant program to strategically deploy publicly accessible electric vehicle charging and hydrogen, propane, and natural gas fueling infrastructure along designated DOT Federal Highway Administration AFCs. The grant will provide funding for designated Corridor-Pending AFCs to install infrastructure to convert to Corridor-Ready AFCs, and for Corridor-Ready AFCs to install alternative fuel infrastructure to provide station redundancy and meet higher demand. Propane fueling infrastructure is limited to use by medium- and heavy-duty vehicles. Eligible entities include states, metropolitan planning organizations, local governments, political subdivisions, and tribal governments. Additional funding eligibility and considerations will apply. The grant program must be established by November 15, 2022. (Reference Public Law 117-58 and 23 U.S. Code 151)

Community Alternative Fuel Infrastructure Grants

The U.S. Department of Transportation (DOT) shall establish a competitive grant program to fill gaps in publicly accessible electric vehicle charging and hydrogen, propane, and natural gas fueling infrastructure in community locations, such as a parking facilities, public schools, public parks, or along public roads. Funding of up to 80% of project costs will be available for both development-phase planning activities and the acquisition and installation of charging or alternative fueling infrastructure. Five percent of the grant fund awarded may be used for educational and community engagement activities to develop and implement education programs through partnerships with schools, community organizations, and vehicle dealerships to support the use of zero-emission vehicles and associated infrastructure. DOT must prioritize projects that expand access to charging and alternative fueling infrastructure within rural areas, low- and moderate-income neighborhoods, and communities with limited parking space or a high ratio of multi-unit dwellings to single-family homes. Eligible entities include states, metropolitan planning organizations, local governments, political subdivisions, and tribal governments. Additional funding eligibility and considerations will apply. (Reference Public Law 117-58 and 23 U.S. Code 151)

Port Infrastructure Development Program

The U.S. Department of Transportation (DOT) will establish the Port Infrastructure Development Program (PIDP) to fund projects that improve port resiliency to address sea-level rise, flooding, extreme weather events, earthquakes, and tsunami inundation, as well as projects that reduce or eliminate port-related criteria pollutant or greenhouse gas emissions. Funded projects may include:

• Port electrification or electrification master planning;
• Development of port or terminal micro-grids;
• Worker training to support electrification technology; and,
• Electric vehicle charging or hydrogen fueling infrastructure.

Funding is authorized through fiscal year 2026. Applications for the first funding round are due May 16, 2022. For more information, see the Notice of Funding Opportunity announcement and the PIDP website.

(Reference Public Law 117-58)

Carbon Reduction Program (CRP)

The U.S. Department of Transportation (DOT) must establish a carbon reduction formula program for states to reduce transportation emissions. Eligible state funding activities include truck stop electrification, diesel engine retrofits, vehicle-to-infrastructure communications equipment, public transportation, port electrification, and deployment of alternative fuel vehicles, including charging or fueling infrastructure and the purchase or lease of zero emission vehicles. Funding can also be used to support the development of state carbon reduction strategies, in consultation with designated metropolitan planning organizations, by November 15, 2023. At the request of a state, DOT must provide technical assistance in the development of the carbon reduction strategy. State projects will be treated as Federal-aid Highway Program projects. Additional funding eligibility and considerations will apply. For more information, see the CRP Implementation Guidance and Fact Sheet.

(Reference Public Law 117-58 and 23 U.S. Code 1)

Emerging Alternative Fuel Vehicle (AFV) Study

The U.S. Department of Transportation must conduct an AFV study, focusing specifically on hydrogen, natural gas, or propane, that identifies:

• Five-year AFV ownership forecasts;
• AFV infrastructure siting locations, including a map, to support the forecasts;
• Includes an evaluation and map that identifies concentrations of emerging AFVs to meet fueling infrastructure needs;
• Barriers to deploying AFV infrastructure at the identified locations; and,
• Additional maps and tools to allow states to compare and evaluate different AFV adoption and use scenarios.

The report must be made publicly available and submitted to Congress by November 15, 2022.

(Reference Public Law 117-58)

Truck Leasing Task Force

The Secretary of Transportation, in consultation with the Secretary of Labor, must establish the Truck Leasing Task Force (TLTF) to examine common truck leasing arrangements, including specific agreements relating to the Ports of Los Angeles and Long Beach Clean Trucks Program and similar programs to decrease port operations emissions. TLTF will terminate 30 days after submitting findings and recommendations to Congress. For more information, see the TLTF website. (Reference Public Law 117-58)

Public School Energy Program

The U.S. Department of Energy (DOE) must establish for local educational agencies competitive grant program for energy improvements upgrades, including installation of alternative fuel vehicle (AFV) fueling or charging infrastructure on school grounds and purchase or lease AFVs. AFV fueling or charging infrastructure can be exclusively for the school fleet or students, or open to the public. Eligible AFVs include school buses and school fleet vehicles. (Reference Public Law 117-58)

Low or Zero Emission Ferry Program

The U.S. Department of Transportation (DOT) must establish a pilot grant program for the purchase of electric or low-emitting ferries and the electrification of or other reduction of emissions from existing ferries. Low-emitting ferries must use an alternative fuel, such as methanol, natural gas, propane, hydrogen, and electricity. Awards must include a ferry service that serves the State with the largest number of Marine Highway System miles and a bi-state ferry service with an aging fleet. Funding is authorized through fiscal year 2026. (Reference Public Law 117-58)

National Multimodal Cooperative Freight Research Program

The U.S. Department of Transportation (DOT) will establish a national cooperative freight transportation research program (Program), administered in collaboration with the National Academy of Sciences (NAS). NAS will establish an advisory committee to recommend a national research agenda on improvements in the efficiency and resiliency of freight movement, including adapting to future trends such as zero-emissions transportation. NAS may award research contracts or grants under the Program.

DOT shall establish the Program by November 15, 2022, and publish annual reports describing the ongoing research and findings. Funding will be made available each fiscal year until November 15, 2026, and will remain available until expended for this Program.

(Reference Public Law 117-58 and 49 U.S. Code 702)

Joint Office of Energy and Transportation

The U.S. Department of Transportation (DOT) and the U.S. Department of Energy (DOE) will establish a Joint Office of Energy and Transportation (Joint Office) to study, plan, coordinate, and implement joint issues, including:

• Technical assistance related to the deployment, operation, and maintenance of electric vehicle supply equipment (EVSE) and hydrogen fueling infrastructure, vehicle-to-grid integration, and related programs and policies;
• Data sharing of installation, maintenance, and utilization to continue to inform the network build out of EVSE and hydrogen fueling infrastructure;
• Performance of a national and regionalized study of EVSE and hydrogen fueling infrastructure needs and deployment factors, to support grants for community resilience and electric vehicle (EV) integration;
• Development and deployment of training and certification programs;
• Electric infrastructure and utility accommodation planning in transportation rights-of ways; and,
• Research, strategies, and actions to reduce transportation-related emissions and mitigate the effects of climate change.

The Joint Office will create a public database that includes EVSE data maintained on the DOE Alternative Fuels Data Center's Alternative Fueling Station Locator and potential EVSE locations identified by eligible entities. For more information, see the Joint Office website.

(Reference Public Law 117-58)

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement

Oregon has adopted the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations requiring manufacturers to meet California’s ZEV production and sales requirements. Beginning with model year 2025, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in Oregon. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the Oregon Department of Environmental Quality Clean Truck Rules 2021 website.

(Reference DEQ Administrative Order 17-2021 and Oregon Administration Rules 340)

Fleet Electric Vehicle (EV) Procurement Requirements

State executive and small-cabinet agency fleets must procure EVs to replace light-, medium-, and heavy- duty internal combustion engine (ICE) vehicles once they reach the end of their useful life. Fleets must achieve the following procurement requirements:

(Reference Executive Order 21-04, 2021)

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement

New York has adopted the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations, requiring manufacturers to meet California’s ZEV production and sales requirements. Beginning with model year 2025, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in New York. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the New York Department of Environmental Conservation Emission Standards for Motor Vehicles and Motor Vehicle Engines. (Reference New York State Department of Environmental Conservation Regulations Title 6, Chapter III, Part 218)

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement

New Jersey has adopted the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations, requiring manufacturers to meet California’s ZEV production and sales requirements. Beginning with model year 2025, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in New Jersey. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the New Jersey Department of Environmental Protection Advanced Clean Trucks Program and Fleet Reporting Requirements. (Reference New Jersey Administrative Code 7:27-31, 33 and 7:27A-3.10)

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement

Washington has adopted the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations, requiring manufacturers to meet California’s ZEV production and sales requirements. Beginning with model year 2025, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in Washington. ZEVs include all-electric and fuel cell electric vehicles. For more information, see the Washington Clean Car Standards website. (Reference Washington Administrative Code 173-423 and 173-400-025)

Environmental Justice Community Technical Assistance Program

The U.S. Department of Energy (DOE) Communities Local Energy Action Program (LEAP) Pilot facilitates sustained, community-wide economic and environmental benefits through DOE’s clean energy deployment work. This technical assistance opportunity is specifically open to low-income, energy-burdened communities that are also experiencing either direct environmental justice impacts, or direct economic impacts from a shift away from historical reliance on fossil fuels. DOE will provide technical assistance services to support up to 36 communities to develop their own community-driven clean energy transition approach. For more information, visit the DOE Communities LEAP website.

Innovative Research and Development Competitive Prizes

The American-Made Challenges are a series of prize competitions, in partnership with the National Renewable Energy Laboratory, that are designed to incentivize the nation’s entrepreneurs to reenergize innovation, reassert American leadership in the energy marketplace, and connect entrepreneurs to the private sector and U.S. Department of Energy’s national laboratories. These challenges seek to lower the barriers U.S.-based innovators face by spurring manufacturing, developing innovative solutions and products, and creating new domestic jobs and opportunities through public-private partnerships. For more information, including current prize challenges, visit the American-Made Challenges website.

Zero Emission Vehicle (ZEV) Deployment and Emissions Reductions Goals

North Carolina established the following goals to reduce statewide greenhouse (GHG) emissions:

• GHG emissions must be at least 50% below 2005 levels by 2030;
• Achieve net-zero emissions by 2050;
• Register at least 1,250,000 zero emission vehicles (ZEVs) by 2030; and,
• Increase the share of new passenger vehicle sales to 50% ZEVs by 2030.

(Reference Executive Order 246, 2022)

Clean Transportation Plan

The North Carolina Department of Transportation (DOT) must develop and submit a state-wide Clean Transportation Plan (Plan) by April 7, 2023, to meet North Carolina's emission reduction and zero emission vehicle (ZEV) goals. The Plan must recommend actionable strategies for decarbonizing the transportation sector by:

• Increasing ZEV availability, sales, and usage to levels beyond current market projections;
• Reducing statewide vehicle miles traveled;
• Investing in clean transportation infrastructure;
• Increasing equitable access to clean mobility options;
• Increasing availability of non-vehicle transportation modes; and,
• Transitioning registered vehicles to zero- and low-emission fuels.

(Reference Executive Order 80, 2018, and Executive Order 246, 2022)

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Low-Emission Technology Grants

The North Dakota Industrial Commission (NDIC) administers the Clean Sustainable Energy Authority (CSEA) to provides grants to enhance the production of low-emission technology projects. Eligible projects related to biofuel, hydrogen, natural gas, and energy efficiency. CSEA may award up to $25 million between July 1, 2021, and June 30, 2023. Eligible applicants include corporations, cooperatives, associations, and others. For more information, including application materials and additional eligibility requirements, see the NDIC CSEA website and the CSEA Program Guidelines. (Reference House Bill 1452, 2021, and North Dakota Century Code 17-01 and 17-07)

Low and Zero Emission Public Transportation Funding

The Department of Transportation’s Federal Transit Administration (FTA) administers the Low or No Emission Grant (Low-No) Program. Financial assistance is available to local and state government entities for the purchase or lease of low-emission or zero-emission transit buses, in addition to the acquisition, construction, or lease of supporting facilities. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle.

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Financing Program

The California Pollution Control Financing Authority (CPCFA) must develop and implement a purchasing assistance program for MHD ZEV fleets. CPCFA must consult with stakeholders to design a program that provides financial support and technical assistance to fleet managers deploying MHD ZEVs. CPCFA must designate high-priority fleets, considering implications for climate change, pollution, environmental justice, and post-COVID economy recovery. A minimum of 75% of financing products must be directed towards operators of MHD ZEV fleets whose fleets directly impact, or operate in, underserved communities. CPCFA must establish the program by January 1, 2023, and provide annual reports on program outcomes to the California Air Resources Board. (Reference Senate Bill 372, 2021)

Zero Emission Vehicle (ZEV) Carshare Grant

The Zero-emissions Access Program (ZAP), administered by the Washington State Department of Transportation (WSDOT), offers grants to nonprofit organizations and local governments to design and create a ZEV carshare program in underserved and low-to moderate-income communities. Grant awards may range from $50,000 to $200,000. Eligible projects include:

• Contract, lease, or purchase of ZEV;
• Construction or installation of correlated charging station or refueling infrastructure; and,
• Operational costs to develop, implement, and manage a car share program.

Applicants must provide matching funds as direct contributions or gifts-in-kind for at least 10% of the total cost of the project. Additional eligibility requirements may apply. For more information, including eligible communities and program dates, see the WSDOT ZEV Grants website.

(Reference Revised Code of Washington 47.04.355)

Zero Emission Truck Support and Demonstration

The Northwest Seaport Alliance (NWSA) must establish and coordinate a zero emission truck stakeholder group to lead the development and implementation of at least one zero-emission drayage truck demonstration project and develop a roadmap to transition the NWSA cargo gateway fleet to zero-emission trucks, by 2050. (Reference Senate Bill 5689, 2022)

Electric Vehicle (EV) and Direct Current Fast Charging (DCFC) Stations and Hydrogen Fueling Station

Washington State Department of Transportation (WSDOT) must install co-located DCFC and hydrogen fueling stations in the Wenatchee or East Wenatchee area near a state route or publicly owned facility. WSDOT must contract with a public utility that produces hydrogen or provides technical assistance for hydrogen fueling stations. (Reference Senate Bill 5689, 2022)

Support for Interagency Collaboration on Hydrogen Development

The Washington Department of Commerce must establish the Office of Renewable Energy (Office) to leverage, support, and collaborate with other state agencies to:

• Accelerate market development by providing assistance along the entire life cycle of renewable fuel projects;
• Support research on the development and deployment of renewable fuel and use of renewable and green electrolytic hydrogen;
• Drive job creation, improve economic vitality, and support the transition to clean energy;
• Enhance resiliency by using renewable fuels and green electrolytic hydrogen to support climate change mitigation and adaptations; and,
• Partner with underserved communities to ensure communities equitably benefit from clean fuel efforts.

Medium- and Heavy-Duty (MDHD) Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of MDHD ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In March 2022, the Task Force released a draft multi-state action plan to support electrification of MDHD vehicles. The Task Force will consider actions to accomplish the goals of the MOU, including limiting all new MDHD vehicles sales in the signatory states to ZEVs by 2050. The signatory states will also seek to accelerate the deployment of MDHD ZEVs to benefit disadvantaged communities and explore opportunities to coordinate and partner with key stakeholders.

For more information, see the MDHD ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Grant Authorization

Beginning in fiscal year 2024, Maryland Energy Administration is authorized to administer a MHD ZEV grant program. Grants must cover up to 20% of the cost to purchase MHD ZEVs, electric vehicle charging stations, or MHD non-road equipment. Eligible vehicles must have a gross vehicle weight rating above 8,500 pounds and be powered exclusively by electricity or hydrogen.

(Reference House Bill 1391, 2022)

Light-Duty Zero Emission Vehicle (ZEV) Acquisition Requirements

100% of passenger vehicles in the state fleet must be ZEVs by 2031 and other light-duty vehicles must be ZEVs by 2036. To support the state fleet transition to ZEVs, state agencies must coordinate vehicle acquisition efforts to increase the share of ZEVs in the state fleet. Passenger vehicle ZEV acquisitions must increase according to the following schedule:

Other light-duty ZEV acquisitions must increase according to the following schedule:

ZEVs include vehicles powered exclusively by electricity or hydrogen. If state agencies are unable to acquire ZEVs, a plug-in hybrid electric vehicle may be purchased instead. Paratransit vehicles are exempt from these acquisition requirements. The Maryland Department of General Services must deploy adequate charging and refueling infrastructure to support ZEV adoption and report vehicle acquisition progress to the General Assembly on an annual basis.

(Reference Senate Bill 528, 2022)

Zero Emission School Bus Acquisition Requirements

Beginning July 1, 2027, school districts may only purchase or lease zero emission school buses when entering new purchase or lease contracts. School districts are exempt from this requirement if:

• The Commissioner of Social Services waives the requirements;
• Zero emission bus acquisition, recharging, or refueling equipment would result in unreasonable costs to the school district; or,
• Vehicles do not meet performance requirements.

Zero emission school buses may be powered by electricity or hydrogen. Before acquiring a zero emission bus, school districts must create a workforce development report that estimates the impact of zero emission buses on employment opportunities, identifies maintenance staff training needs, and estimates costs to train employees in how to operate zero emission buses and infrastructure.

(Reference Senate Bill 8006, 2022)

Zero Emission Vehicle (ZEV) Sales Requirements and Low Emission Vehicle (LEV) Standards

New Mexico has adopted the California motor vehicles emissions standards and compliance requirements in the Title 13 of the California Code of Regulations. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements, beginning with model year 2026. These regulations apply to new passenger cars, light-duty trucks, and sport utility vehicles. For more information, see the Road to Clean Cars New Mexico webpage.

(Reference New Mexico Environment Department Docketed Matters, EIB 21-66 (R) and New Mexico Administrative Code 20.2.91)

Zero Emission School Bus Funding and Technical Assistance

The Connecticut Department of Energy and Environmental Protection (DEEP) must establish and administer a grant program to provide matching funds necessary for municipalities, school districts and school bus operators for the purchase or lease of zero-emission school buses and electric vehicle charging stations. School districts within environmental justice communities will be prioritized. In addition, DEEP must provide administrative and technical assistance to municipalities, school districts, and school bus operators that are transitioning to zero-emission school buses and installing electric vehicle charging stations.

(Reference Senate Bill 4, 2022)

Zero Emission Transit Bus Acquisition Requirement

Beginning January 1, 2024, the state may not procure, purchase, or lease diesel transit buses. At least 30% of transit buses purchased or leased by the state must be zero-emission by January 1, 2030. The Commissioner of Administrative Services must study and identify barriers to implementing zero-emission buses state-wide and submit a report of the results to the General Assembly by January 1, 2024.

(Reference Senate Bill 4, 2022)

Zero Emission Vehicle (ZEV) Study and Procurement

The Connecticut Department of Administrative Services (DAS) and the Connecticut Department of Transportation must study the feasibility and cost savings of creating and implementing a bid process for the bulk procurement of light-, medium-, and heavy-duty electric vehicles, hydrogen fuel cell electric vehicles, and zero emission buses. DAS must publish the study results by January 1, 2024.

(Reference Senate Bill 4, 2022)

Hydrogen and Electric Vehicle (EV) Rebate Program

The Connecticut Department of Energy and Environmental Protection (DEEP) must further develop the Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) program by:

• Establishing an Advisory Board of various government and industry members to direct the allocation of CHEAPR funds;
• Providing at least 3 million dollars of rebates and vouchers to residents for the purchase or lease of new or pre-owned EV or fuel cell electric vehicle annually;
• Prioritizing the allocation of funds to residents of environmental justice communities;
• Beginning on June 20, 2024, reporting annually on the effectives of the program; and,
• Conducting outreach programs and marketing campaigns for the promotion of the program.

(Reference Senate Bill 4, 2022)

Alternative Fuel Access Policies for Local Governments

Local governments may not adopt an ordinance, rule, or law that limits consumer access to alternative transportation fuels including biofuel, compressed natural gas, electricity, hydrogen, propane, and renewable diesel.

(Reference Senate Bill 354, 2022 and Louisiana Revised Statutes 49:3051)

Industrial and Manufacturing Operations Emissions Reduction Grant

The Colorado Energy Office (CEO) will administer the Industrial and Manufacturing Operations Clean Air Grant Program (Program), which funds projects that reduce emissions from industrial and manufacturing operations, including transportation electrification and hydrogen projects. Eligible applicants include private entities, local and tribal governments, and public-private partnerships. Projects located in underserved communities or areas in nonattainment with the National Ambient Air Quality Standards may receive priority consideration. Additional terms and conditions apply.

(Reference Colorado Senate Bill 193, 2022)

Diesel Emissions Reduction Grant

The Colorado Department of Public Health and Environment (CDPHE) administers the Colorado Clean Diesel Program (CCDP), which provides funding to private and public entities to replace diesel vehicles and equipment with all-electric or hybrid-electric equivalents. Eligible projects include terminal tractors, construction equipment, bucket trucks, transportation refrigeration units, airport ground support equipment, lawn mowers, farm tractors, bucket trucks, snow groomers, idle-reduction technologies, and associated charging infrastructure. A minimum cost share is required and varies by project technology. CCDP is funded by the Diesel Emissions Reduction Act. For more information, see the CCDP website.

Hydrogen Fuel Production Support

The Hydrogen Study Committee (Committee) must evaluate existing state and federal laws, regulations, and funding sources for hydrogen fuel and recommend legislation related to the production, use, distribution, and storage of hydrogen. The Committee must evaluate the following topics:

• The impacts of hydrogen production from various fuel sources;
• The construction of a dedicated hydrogen pipeline for transportation fuel;
• Long-term opportunities for carbon capture and sequestration;
• Streamlined permitting processes for hydrogen facilities and infrastructure;
• Cost-effective industrial rates for hydrogen production;
• Safety standards regarding the production, use, distribution and storage of hydrogen by state agencies; and
• Economic impact analysis of the potential hydrogen value chain in Arizona.

The committee must submit a report of their evaluation and recommendations to the Arizona legislature by September 1, 2023.

(Reference Arizona Senate Bill 1396, 2022)

Hydrogen Fueling Station Rebate Authorization

The Hawaii Public Utilities Commission (PUC) is authorized to establish a rebate program for renewable hydrogen fueling systems. The program may offer rebates of up to $200,000 for the installation of a hydrogen fueling system and for upgrading the capacity of an existing hydrogen fueling system. In administering the rebate program, the PUC must prioritize projects that are publicly available, serve fuel cell electric vehicle fleets, or serve multiple tenants, employees, or customers. Renewable hydrogen means hydrogen produced from renewable sources that produce less than 50 grams of carbon dioxide per kilowatt hour. The Hawaii Legislature established a special fund within the PUC to support this rebate program. The special fund receives $0.03 of the tax collected from each barrel of petroleum product sold by a distributor to any retail dealer or end user in Hawaii. The PUC may contract with a third-party, non-government entity to administer, operate, and manage the rebate program.

(Reference Senate Bill 2570, 2022)

Fleet Zero Emission Vehicle (ZEV) Rebates

The Driving Rhode Island to Vehicle Electrification Fleet (DRIVE EV Fleet) program offers rebates of up to $2,500 for the purchase or lease of a new ZEV and $1,500 for the purchase or lease of a pre-owned ZEV. New vehicles may not have a purchase price above $60,000, and pre-owned vehicles may not have a purchase price above $40,000. All eligible vehicles must be purchased on or after July 7, 2022. An additional rebate of $1,000 per vehicle is available for applicants located in high-asthma communities. ZEVs include all-electric vehicles and hydrogen fuel cell electric vehicles. Eligible applicants include small businesses with less than 500 employees, non-profit organizations, state and local government agencies, school districts, and public libraries. Rebates are available on a first-come, first-served basis. Applicants may receive a maximum of five rebates every two years. For more information, including a list of high-asthma communities, see the DRIVE EV Fleet website.

Regional Clean Hydrogen Hubs

The U.S. Department of Energy (DOE) administers the Regional Clean Hydrogen Hubs (H2Hubs) program. H2Hubs will fund the development of at least four regional networks of hydrogen producers, potential hydrogen consumers, and connective infrastructure located in close proximity. At least one H2Hub must demonstrate the end-use of hydrogen in the transportation sector. Clean hydrogen is defined as hydrogen produced with a carbon intensity equal to or less than 2 kilograms of carbon dioxide-equivalent produced at the site of production per kilogram of hydrogen produced. DOE will evaluate lifecycle emissions for each project application and give preference to applications that reduce greenhouse gas emissions across the full project lifecycle. For more information, including funding availability, see the DOE Notice of Intent.

(Reference Public Law 117-58)

Electric Vehicle (EV) Charging and Clean Transportation Grants

The U.S. Department of Energy (DOE) provides grants for transportation decarbonization research projects. Priority will be given to projects that include:

• Cost-effective deployment of EV charging for those without access to home charging;
• Innovative solutions to improve mobility options for underserved communities;
• Community engagement to accelerate clean transportation options in underserved communities;
• Research and development to reduce EV battery size and cost, increase EV battery range, and decrease EB battery emissions;
• Electrification of off-road and non-road vehicles, including agricultural, construction, rail, marine, and aviation;
• Materials technologies to improve EV efficiency and affordability;
• Use of the alternative fuels in commercial off-road vehicle technologies, including natural gas, hydrogen, and renewable propane;
• Planning and development of medium- and heavy-duty EV charging and hydrogen fueling corridors and advanced engine and fuel technologies to improve fuel economy and reduce greenhouse gas emissions

Applicants must demonstrate how proposed projects will benefit underserved communities that lack access to clean transportation options.

(Reference Public Law 109-58 and 42 U.S. Code 16191)

Electrification Technology Grants

The Office of Future Mobility and Electrification and the Michigan Department of Transportation administer the Michigan Mobility Funding Platform which provides grants to mobility and electrification companies to deploy their technology in Michigan, including electric vehicles (EVs) and EV charging stations. To be eligible, applicants must collaborate with a Michigan-based partner, meet a local use case in Michigan, and have matching funds available. For more information, including application instructions, see the Michigan Mobility Funding Platform website.

Pre-Owned Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Beginning January 1, 2023, the Clean Vehicle Credit provides a tax credit of up to $4,000 for the purchase of a pre-owned EV or FCEV. Eligible vehicles must be of a model year at least two years prior to the year of purchase and may not have a purchase price above $25,000. Individuals with a gross annual income below the following thresholds are eligible for the tax credit:

• $150,000 for joint filers

• $112,500 for head-of-household filers

• $75,000 for single filers

Only one tax credit may be claimed per vehicle. Individuals may not claim more than one pre-owned vehicle tax credit in a three-year period.

(Reference Public Law 117-169)

Commercial Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Beginning January 1, 2023, a tax credit will be available to businesses for the purchase of new EVs and FCEVs. Vehicles with a gross vehicle weight rating (GVWR) below 14,000 pounds (lbs.) must have a battery capacity of at least seven kilowatt-hours (kWh) and vehicles with a GVWR above 14,000 lbs. must have a battery capacity of at least 15 kWh. The tax credit amount is equal to the lesser of the following amounts:

• 15% of the vehicle purchase price for plug-in hybrid electric vehicles
• 30% of the vehicle purchase price for EVs and FCEVs
• The incremental cost of the vehicle compared to an equivalent internal combustion engine vehicle

Maximum tax credits may not exceed $7,500 for vehicles under 14,000 lbs. and $40,000 for vehicles above 14,000 lbs. Businesses may not combine this tax credit with the Clean Vehicle Tax Credit.

(Reference Public Law 117-169)