Search Federal and State Laws and Incentives

Low Emission Vehicle (LEV) Sales Tax Exemption

Vehicles, vehicle power sources, or parts used for converting a vehicle power source to reduce emissions are exempt from state sales and use tax. Exempt vehicles include vehicles certified to federal LEV standards that have a gross vehicle weight rating (GVWR) of over 26,000 pounds (lbs.). The exemption also applies if the GVWR is greater than 10,000 lbs. and if the vehicle, power source, or parts used for converting the power source meet the definition of a category 4, 4A, 4B, 4C, 7, or 7A truck, as defined in Colorado Revised Statutes 39-22-516.8. The vehicle power source includes the engine or motor and associated wiring, fuel lines, engine coolant system, fuel storage containers, and other components.

(Reference Colorado Revised Statutes 39-26-719)

SmartWay Transport Partnership

The SmartWay Transport Partnership is a market-based public-private collaboration between the U.S. Environmental Protection Agency (EPA) and the domestic freight industry. This partnership is designed to reduce greenhouse gases and air pollution by accelerating the adoption of advanced technologies and operational practices which increase fuel efficiency and reduce emissions from goods movement. EPA provides partners with performance benchmarking tools, fleet management best practices, technology verification, public recognition and awards, and use of the SmartWay Transport Partner logo to demonstrate their leadership to customers, shareholders and other stakeholders. The SmartWay Transport Partnership is working with partners to test and verify advanced technologies and operational practices that save fuel and reduce emissions. Grants are available to states, non-profits, and academic institutions to demonstrate innovative idle reduction technologies for the trucking industry. For more information, see the SmartWay Transport Partnership website.

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)

Aftermarket Alternative Fuel Vehicle (AFV) Conversions

Conventional original equipment manufacturer vehicles altered to operate on propane, natural gas, methane gas, ethanol, or electricity are classified as aftermarket AFV conversions. All vehicle conversions, except those that are completed for a vehicle to run on electricity, must meet current applicable U.S. Environmental Protection Agency (EPA) standards. For more information about vehicle conversion certification requirements, see the Alternative Fuels Data Center's Vehicle Conversions website and EPA's Certification and Compliance for Vehicles and Engines website. (Reference 40 CFR 85 and Enforcement Policy on Vehicle and Engine Tampering and Aftermarket Defeat Devices)

Diesel Emissions Reduction Act (DERA) Program

The U.S. Environmental Protection Agency established the DERA Program to reduce pollution emitted from diesel engines through the implementation of varied control strategies and the involvement of national, state, and local partners. DERA includes programs for existing diesel fleets, regulations for clean diesel engines and fuels, and regional collaborations and partnerships. For information on available grants and funding opportunities, see the DERA Funding website.

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)

Alternative Fuel Mixture 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 more information about claiming the credit, see IRS Form 720, which is available on the IRS Forms and Publications website.

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

Alternative Fuel Taxes

The state road tax for vehicles that operate on propane (liquefied petroleum gas or LPG) is paid through the purchase of an annual flat fee sticker, and the amount is based on the vehicle’s gross vehicle weight rating. Each person owning and/or operating a vehicle that operates on propane must obtain a decal annually from the Alabama LPG Board. The decal must be affixed to the vehicle according to LPG Board specification as proof that the issuance fee and decal fee have been paid. Vehicle owners must apply for a decal within 10 days of converting a vehicle to operate on propane, or a 20% penalty will be applied to the decal fee. Out-of-state alternative fuel vehicle operators that purchase propane within the state must pay the current Alabama motor fuel tax or they may elect to purchase the annual flat fee decal. The propane dealer or supplier must remit these funds to the LPG Board before the 20th of the month following the date of sale.

Similarly, the Alabama Department of Revenue administers an excise tax on compressed natural gas (CNG) and liquefied natural gas (LNG) used as vehicle fuel. Taxes are applied in the following amounts: CNG: - $0.08 per gasoline gallon equivalent (GGE) until September 30, 2023; - $0.13 per GGE from October 1, 2023, until September 30, 2028; and - $0.18 per GGE from October 1, 2028 and beyond. LNG: - $0.08 per diesel gallon equivalent (DGE) until September 30, 2023; - $0.13 per DGE from October 1, 2023, until September 30, 2028; and - $0.18 per DGE from October 1, 2028 and beyond.

A GGE is equal to 5.66 pounds (lbs.) or 126.67 cubic feet of natural gas for CNG and a DGE is equal to 6.06 lbs. for LNG.

(Reference Code of Alabama 40-17-160 through 40-17-165 and 40-17-168.2)

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.

Alternative Fuel Tax

The excise tax imposed on compressed natural gas (CNG), liquefied natural gas (LNG), and propane used to operate a vehicle can be paid through an annual flat rate sticker tax based on the following vehicle weights:

Alternatively, owners and operators may pay an excise tax on CNG of $0.0887 per gasoline gallon equivalent (GGE) measured at standard pressure and temperature, $0.1017 for each diesel gallon equivalent (DGE) of LNG, and $0.06 per gallon of propane. One GGE is equal to 126.67 cubic feet or 5.66 lbs. of CNG and one DGE is equal to 6.06 lbs. of LNG. The excise tax on ethanol and methanol fuel blends containing up to 15% gasoline or diesel fuel is one-half the tax on gasoline and diesel prescribed by California Revenue and Taxation Code section 8651.

(Reference California Revenue and Taxation Code 8651-8651.8, and California Business and Professions Code 13404 and 13470)

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 Labeling Requirement

Vehicles powered by liquefied petroleum gas (propane) or compressed natural gas (CNG) must visibly display identifying decals, as established by the National Fire Protection Association's standards for the Storage and Handling of Liquefied Petroleum Gases and for CNG Vehicular Fuel Systems. (Reference 625 Illinois Compiled Statutes 5/12-704.3)

Propane Vehicle Decals

An individual may place propane into the fuel tank of a motor vehicle only if the vehicle has a valid alternative fuel decal affixed to the front windshield or the individual has applied for a decal within the last 30 days. The cost of the decal varies according to vehicle type and the gross vehicle weight rating. The annual fee may be prorated if the vehicle is newly purchased, registered in Indiana, or converted to operate using an alternative fuel. For propane vehicles registered outside of Indiana, owners must purchase a temporary trip permit from a licensed propane dealer. For more information, see the Indiana Department of Revenue Fuel Tax Forms website. (Reference Indiana Code 6-6-14 and 6-6-2.5-67)

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 Tax

The Minnesota Department of Revenue imposes an excise tax on the first licensed distributor that receives E85 fuel products in the state and on distributors, special fuel dealers, or bulk purchasers of other alternative fuels. E85 is taxed at the pump at a rate of $0.2025 per gallon, pure biodiesel (B100) is taxed at $0.285 per gallon, propane is taxed at $0.2135 per gallon, liquefied natural gas is taxed at $0.171 per gallon, and compressed natural gas is taxed at the rate of $2.50 per thousand cubic feet. Exemptions apply. For more information, see the Minnesota Fuel Excise Tax Rates and Fees website.

(Reference Minnesota Statutes 296A.07 and 296A.08)

Propane Education and Research Program

The State Liquefied Compressed Gas Board (Board), established within the Mississippi Insurance Department (MID), regulates matters regarding liquefied compressed gas within the state. The Board may issue grants for the research and development of more cost-effective uses of propane, for educational and safety programs, and for the market development of propane. The Board must review all proposals. For more information, see the MID Liquefied Compressed Gas website.

(Reference Mississippi Code 75-57-119)

Natural Gas and Propane Deregulation

The transmission, sale, or distribution of natural gas and distribution or sale of propane is deregulated when used as motor vehicle fuel.

(Reference Mississippi Code 77-3-3 and 77-3-11)

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 Tax Refund

The Nebraska Department of Revenue will refund taxes paid on compressed natural gas, liquefied natural gas, and propane when the fuel is used to operate buses capable of carrying seven or more passengers within or near a municipality. (Reference Nebraska Revised Statutes 66-6,100 and 66-6,109.01)

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 Fuels Tax

Alternative fuels subject to the New Mexico excise tax include propane, compressed natural gas (CNG), and liquefied natural gas (LNG). The excise tax imposed on propane is $0.12 per gallon, and the excise tax imposed on CNG and LNG is $0.133 and $0.206 per gallon, respectively. A gallon is measured as 3.785 liters of propane, 5.66 pounds (lbs.) or 126.67 standard cubic feet of CNG, and 6.06 lbs. of LNG. Alternative fuel purchased for distribution is not subject to the excise tax at the time of purchase or acquisition, but the tax is due on any alternative fuel at the time it is dispensed or delivered into the tank of a motor vehicle. Alternative fuel distributors must be licensed by the state. For tax forms and instructions, refer to the New Mexico Taxation and Revenue Department website. (Reference New Mexico Statutes 7-16B-1 through 7-16B-10)

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)

Propane and Natural Gas Licensing and Safety

The Railroad Commission of Texas regulates the safety of the natural gas and propane industries. Any business that engages in propane or natural gas activities in Texas must be licensed. These activities include selling, transporting, dispensing or storing propane and natural gas and manufacturing, installing, servicing or repairing propane and natural gas containers, systems and appliances. Some exceptions apply. For more information, see the Texas Safety, Licensing, Training, and Certification website. (Reference Texas Statutes, Natural Resources Code 113.011 and 116.011)

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 Vehicle Annual Fee

Owners of natural gas vehicles (NGVs) and propane powered vehicles are required to pay an annual license fee, based on gross vehicle weight rating (GVWR), instead of motor fuel excise taxes. The fee schedule is as follows:

To determine the actual annual license fee imposed per registration year, multiply the appropriate dollar amount given in the above schedule by the motor vehicle fuel tax rate in cents per gallon effective on July 1 of the preceding calendar year, and divide the resulting amount by $0.12. There is an additional $5 handling fee for each license issued.

(Reference Revised Code of Washington 82.38.075)

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

AFVs powered exclusively by electric, natural gas, and propane vehicles are exempt from state emissions control inspections. Plug-in hybrid electric vehicles that obtain a U.S. Environmental Protection Agency fuel economy rating of at least 50 miles per gallon during city driving are also exempt from these inspections. (Reference Revised Code of Washington 46.16A.060)

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)

Propane Safety and Liability

An individual involved in installing propane systems or manufacturing, distributing, selling, storing, or transporting propane is immune from the civil liability associated with injury or damage associated with these activities, as long as the individual was exercising reasonable care and took steps to warn the end user of the misuses of the propane system. (Reference South Carolina Code of Laws 15-3-690)

Propane Tax Exemption

Propane is exempt from the state fuel excise tax when sold from a licensed propane vendor to a licensed propane user or a propane vehicle owner if it is delivered into a bulk storage tank that can then be used to deliver fuel into a motor vehicle. Fuel purchasers must obtain a propane user license before propane is delivered into their storage tanks. (Reference South Dakota Statutes 10-47B-167)

Compressed Natural Gas (CNG) and Propane Tax

Retail sales for CNG and propane used to operate vehicles are subject to a modified tax based on energy content. CNG is taxed per 120 cubic feet, measured at 14.73 pounds per square inch absolute base pressure. Propane is taxed per gallon. (Reference Montana Code Annotated 15-70-711)

Alternative Fuel Vehicle (AFV) Tax Credit

An income tax credit is available for 40% of the incremental or conversion cost for qualified AFVs, based on gross vehicle weight rating (GVWR) as outlined in the following table:

Alternatively, a tax credit of 5% of the cost of the AFV, up to $750, is available for the purchase of an original equipment manufacturer AFV. Qualified AFVs include vehicles that operate on a combustible liquid derived from grain starch, oil seed, animal fat, other biomass, or produced from a biogas source. Only to the first individual to take title of the vehicle may receive this credit. For motor vehicles capable of operating on E85, the individual claiming the credit must provide evidence of purchasing at least 500 gallons of E85 between the time the vehicle was purchased and December 31, of the following calendar year. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, see the Alternative Fuel Tax Credit website.

(Reference Kansas Statutes 79-32,201)

Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for 40% of the total cost to install alternative fueling infrastructure. Qualified property must be directly related to the delivery of alternative fuel into the fuel tank of an alternative fuel vehicle. The tax credit may not exceed $100,000 per fueling station. Alternative fuels are defined as combustible liquids derived from grain starch, oil seed, animal fat, other biomass, or produced from a biogas source. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, see the Alternative Fuel Tax Credit website.

(Reference Kansas Statutes 79-32,201)

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) 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)

Propane License Requirement

Any individual that transports, handles, or sells propane at retail, or is in the business of installing or modifying related equipment, must first register with the Missouri Department of Agriculture.

Alternative Fuel Tax

Special fuels, including biodiesel, biodiesel blends, biomass-based diesel, biomass-based diesel blends, and liquefied natural gas (LNG), have a reduced tax rate of $0.27 per gallon. Liquefied petroleum gas (LPG or propane) and compressed natural gas (CNG) are taxed at a rate of $0.064 and $0.21 per gallon, respectively. For taxation purposes, a gallon is measured as 5.66 pounds (lbs.) or 126.67 cubic feet of CNG, 4.2 lbs. or 36.3 cubic feet of propane, or 6.06 lbs. of LNG. (Reference Nevada Revised Statutes 366.190, 366.197, and 373.066)

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 Excise Tax

An excise tax of $0.095 per gallon or gasoline gallon equivalent (GGE) is imposed on all compressed natural gas (CNG), liquefied natural gas (LNG), and propane sold for use in registered motor vehicles. Additionally, each retailer of such fuel must pay an excise tax of $0.068 per gallon or GGE on all CNG, LNG, and propane fuel sold for use in registered motor vehicles. Additional taxes as specified annually under these statutes may apply. (Reference Nebraska Revised Statutes 66-6,102, 66-6,107, and 66-6,109)

Compressed Natural Gas (CNG) and Propane Regulatory Authority

The Louisiana Department of Natural Resources’ Office of Conservation has regulatory authority over CNG safety, including fueling stations and the installation of conversion equipment in a vehicle. Vehicles capable of operating on, liquefied petroleum gas (propane) must have passed a safety inspection from the Louisiana Liquefied Petroleum Gas Commission.

(Reference Louisiana Revised Statutes 30:731 and 30:732)

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.

Alternative Fuel Tax Rates

Blended fuels that contain at least 10% gasoline or diesel are taxed at the full tax rates of gasoline ($0.30 per gallon) or diesel ($0.312 per gallon). Alternative fuel tax rates are as follows:

For more information, see the Maine Revenue Services website.

(Reference Maine Revised Statutes Title 36, Section 3203)

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 Fuels Tax

A state excise tax is imposed on the use of alternative fuels. Alternative fuels include propane and natural gas. The current tax rates are as follows: $0.226 per gallon of propane; $0.247 per gasoline gallon equivalent (GGE) of compressed natural gas; and $0.197 per GGE of liquefied natural gas. No tax is imposed on alternative fuels used by the U.S. government or its agencies (when presented with a valid exemption certificate) or on vehicles used for urban mass transportation of passengers. For more information, see the Wisconsin Department of Revenue Alternate Fuel Tax website. (Reference Wisconsin Statutes 78.40)

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)

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)

Propane Excise Tax Exemption

Propane is exempt from the state excise tax when it is used to operate motor vehicles on public highways provided that vehicles are equipped with carburetion systems approved by the Kentucky Energy and Environment Cabinet or fuel systems that meet Federal Motor Vehicle Safety Standards contained in Title 49 of the Code of Federal Regulations, section 571. (Reference Kentucky Revised Statutes 234.321)

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)

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

Dedicated AFVs powered by compressed natural gas, propane, electricity, or any other source as defined by the Michigan Department of Transportation are exempt from emissions inspection requirements. (Reference Michigan Compiled Laws 324.6311 and 324.6512)

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)

Reduced Propane Fuel Tax

The tax imposed on propane used to operate a motor vehicle is equal to half the tax paid on the sale or use of gasoline, or $0.0525 per gallon. (Reference New Jersey Statutes 54:39-103)

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 Labeling Requirement

Every alternative fuel automobile, truck, motorcycle, motor home, or off-road vehicle must bear a reflective placard from the National Fire Protection Association indicating that the vehicle is powered by an alternative fuel. Alternative fuels include propane and natural gas. (Reference Revised Code of Washington 46.37.467)

Alternative Fuel Vehicle (AFV) Conversion Registration

When a motor vehicle is modified to use a different fuel type or more than one type of fuel, the vehicle's registered owner must notify the county treasurer of the new fuel type or alternative fuel types within 30 days. If the vehicle is able to use a special fuel, the county treasurer will issue a special fuel identification sticker. (Reference Iowa Code 321.41)

Compressed Natural Gas (CNG) and Propane Dealer License

A person may not act as a CNG or propane dealer unless the person holds a valid CNG or propane dealer's license issued by the Montana Department of Transportation. (Reference Montana Code Annotated 15-70-702)

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 Vehicle (AFV) Tax and Fee

Compressed natural gas (CNG) used in motor vehicles is subject to a state motor fuel tax of $0.13 per gasoline gallon equivalent (GGE). Liquefied natural gas (LNG) is also subject to a state motor fuel tax rate of $0.13 per diesel gallon equivalent (DGE).

In lieu of the motor fuel tax, some AFV owners are subject to a motor vehicle fee. An annual flat fee applies to passenger automobiles, pickup trucks, vans and heavy-duty vehicles using propane, natural gas, methanol, or blends of 85% methanol and 15% gasoline (M85). Propane and natural gas vehicles with a payload capacity of less than 2,000 pounds (lbs.) are taxed at a rate of $50 per vehicle per year. Methanol and M85 vehicles with a payload capacity of less than 2,000 lbs. are taxed at a rate of $100 per vehicle per year. Propane, methanol, and M85 vehicles with a payload capacity greater than 2,000 lbs. are taxed at a rate of $150 per vehicle per year. If the owner acquires the vehicle or converts it to run on the alternative fuel after July 1 of the tax year, the flat fee is half of the above-mentioned amount. AFVs must display a decal that the Oklahoma Tax Commission issues on an annual basis.

(Reference Oklahoma Statutes 68-500.4 and 68-723)

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)

Propane Dealer Requirements

Propane dealers must meet education, experience, and examination qualifications, and hold a valid individual license. Each propane fueling facility must be licensed. A fee of up to $500 is required for each license application, original license, and annual license renewal.

(Reference Idaho Statutes 54-5301 to 54-5317)

Installation of Alternative Fuel Components in Vehicles

A propane or compressed natural gas (CNG) carburetion system installer who collects an installation service fee must hold an installer’s license from the State Liquefied Compressed Gas Board (Board) and must notify the Board of any applicable installation. The Board or the Mississippi Insurance Department must inspect propane or CNG carburetion systems not installed by a qualified installer or manufacturer. Regardless of installer, a field inspector must inspect all propane and CNG carburetion systems installed on public transportation vehicles, including school buses. The Board may require the inspection of any propane or CNG carburetion systems installed on other vehicle types as necessary, and all installations must comply with its rules and regulations.

(Reference Mississippi Code 75-57-47)

Alternative Fuel Tax Rates

An excise tax of $0.23 per gallon is imposed on alternative fuel sales and deliveries, including propane, compressed natural gas (CNG), and liquefied natural gas (LNG). One gallon of special fuel is equal to 120 cubic feet of CNG or 1.7 gallons of LNG. Retailers must obtain a license from the Office of the State Tax Commissioner to sell special fuels. Exceptions may apply. (Reference North Dakota Century Code 57-43.2-02 through 57-43.2-05)

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)

Propane and Compressed Natural Gas (CNG) Device Fee

The Arizona Department of Weights and Measures collects license fees for certain propane and CNG fueling devices used for commercial purposes. A penalty equal to 20% of the fee may be imposed for late license fee payments.

(Reference Recodified as Arizona Revised Statutes 3-3452)

Natural Gas and Propane Fuel Tax

Any individual using or selling compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (propane) as a motor fuel must report fuel use and remit taxes due to the Kansas Department of Revenue on a monthly basis. The minimum tax imposed on CNG is $0.24 per gasoline gallon equivalent (GGE), LNG is $0.26 per GGE, and propane is $0.23 per gallon. The state imposes a tax rate of $0.24 per gallon on conventional motor fuel.

Alternatively, CNG, LNG, and propane vehicle users may apply for special permit decals to pay motor fuel taxes on a mileage basis. The number of gallons used on Kansas highways is determined based on the following miles per gallon (mpg) estimates:

(Reference Kansas Statutes 79-34,141; 79-3490; and 79-3491a through 79-3492e)

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.

Alternative Fuel and Alternative Fuel Vehicle (AFV) Fund

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

Alternative Fuel Use and Fuel-Efficient Vehicle Requirements

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

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 Use Requirement

At least 50% of state vehicles using petroleum diesel fuel must use a minimum blend of 5% biodiesel (B5) or other biofuel approved by the U.S. Environmental Protection Agency as a fuel or fuel additive. This requirement does not apply to any state vehicles for which the use of biodiesel or other biofuel will void the manufacturer’s warranty for that vehicle. Biodiesel fuel is defined as a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that is designated B100 or a blend of biodiesel that meets the requirements of ASTM Standard D6751. Additionally, bi-fuel and flexible fuel vehicles capable of operating on either alternative fuel or conventional fuel must use alternative fuel when it is available.

(Reference Maryland Statutes, State Finance and Procurement Code 14-408, and and Policies and Procedures for Vehicle Fleet Management)

Propane and Natural Gas Liability Immunity

An individual or entity that supplies, handles, transports, or sells propane or natural gas at a retail station is immune from civil liability if incorrect use of the fueling equipment causes injury or damage. To be immune, the fuel provider must exercise reasonable care of the equipment and take reasonable steps to warn the customer of the hazards associated with misuse of the equipment.

(Reference Tennessee Code 29-34-202 and 29-34-207)

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)

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))

Liquefied Natural Gas (LNG) and Propane Tax and User Permit

LNG and propane are subject to a per mile excise tax of $0.075 per gallon. In lieu of the excise tax, LNG and propane users may pay an annual flat fee for a special fuel user’s permit. The fee is based on the vehicle’s gross vehicle weight rating. For each vehicle fueled by LNG or propane, the vehicle owner must apply for and obtain a liquefied gas special fuel user’s permit from the Arkansas Department of Finance and Administration (DFA). For more information, including fees and applications, see the DFA website. (Reference Arkansas Code 26-56-102, 26-56-301 and 26-56-304)

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))

Diesel Emissions Reduction Grant Program

The Ohio Environmental Protection Agency (Ohio EPA) provides Diesel Emissions Reduction Grants (DERG) for projects that reduce emissions by retiring and replacing diesel public transit buses. Eligible projects must achieve a minimum funding match of 20% from non-state and non-federal sources. Funding for this program is provided by the U.S. Department of Transportation Federal Highway Administration’s Congestion Mitigation and Air Quality Improvement (CMAQ) Program. For more information, including application periods, see the Ohio EPA DERG website. (Reference Ohio Revised Code 122.861)

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 School Bus Incentive

Any county that uses compressed natural gas (CNG), propane, or electricity for the operation of any portion of its school bus fleet is eligible for a 10% reimbursement from the West Virginia Department of Education to help offset maintenance, operation, and other costs. A county is eligible for an additional 5% reimbursement for the portion of the school bus system that is manufactured within the state of West Virginia. Any county qualifying for this allowance must submit a plan that includes the future use of the CNG, propane, or electric school buses to the Department of Education.

(Reference West Virginia Code 18-9A-7 and House Bill 4571)

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)

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.

Alternative Fuel Excise Taxes

All licensed on-road vehicles fueled with compressed natural gas (CNG) or liquefied petroleum gas (propane) are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators must pay a special fuels tax of $0.16 per gallon equivalent of natural gas at the time fuel is dispensed or delivered into the tank of a motor vehicle. A gasoline gallon equivalent is equal to 5.66 lbs. of CNG and a diesel gallon equivalent is equal to 6.06 lbs. of liquefied natural gas (LNG). A gallon of propane is subject to 73% of the state tax on a gallon of gasoline. Alternative fuel distributers must be licensed by the state.

(Reference Louisiana Revised Statutes 47:802.3 and 47.818.111)

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)

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)

Alternative Fuel and Advanced Vehicle Acquisition Requirements

The Louisiana Division of Administration must purchase dedicated alternative fuel vehicles (AFVs) capable of operating on natural gas or liquefied petroleum gas (propane), or bi-fuel vehicles capable of operating on conventional fuel or natural gas, propane, or any non-ethanol advanced biofuel. State agency vehicles may be granted a waiver if fueling stations are not available within a 25 mile radius, the agency cannot recoup the incremental cost of the vehicle within 60 months, or the available vehicles do not meet agency specifications.

Any AFV a state agency purchases or leases must have a minimum fuel economy of 18 miles per gallon (mpg) for city driving, 28 mpg for highway driving, or a combined city/highway average of 24 mpg. Law enforcement vehicles, certified emergency vehicles, and state agency vehicles with prior written authorization are exempt from this requirement.

(Reference Louisiana Revised Statutes 39:364 and 39:1646)

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)

Propane Supplier Requirements

A retail supplier may only distribute propane if the supplier holds a license from the Wisconsin Department of Commerce. Suppliers must renew the license every two years. In addition, propane retail suppliers must also provide and maintain liability insurance. Penalties for noncompliance may apply. (Reference Wisconsin Statutes 101.16)

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)

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)

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)

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)

Alternative Fuel Use and Vehicle Acquisition Requirements

State agency fleets with more than 15 vehicles, excluding emergency and law enforcement vehicles, may not purchase or lease a motor vehicle unless the vehicle uses natural gas, propane, ethanol or fuel blends of at least 85% ethanol (E85), methanol or fuel blends of at least 85% methanol (M85), biodiesel or fuel blends of at least 20% biodiesel (B20), or electricity (including plug-in hybrid electric vehicles). Waivers may be granted for fleets if the fleet will operate primarily in areas where neither the state agency or a supplier can reasonably be expected to establish adequate fueling infrastructure for these fuels or the agency is unable to obtain equipment or fueling facilities necessary to operate alternative fuel vehicles at a cost that is no greater than the net costs of using conventional fuels.

Covered state agency fleets must consist of at least 50% of vehicles that are able to operate on alternative fuels and use these fuels at least 80% of the time the vehicles are driven. Covered state agencies may meet these requirements through the purchase of new vehicles or the conversion of existing vehicles. State agencies that purchase passenger vehicles or other ground transportation vehicles for general use must ensure that at least 25% of the vehicles purchased during any state fiscal biennium, other than exempted vehicles, meet or exceed federal Tier II, Bin 3 emissions standards.

(Reference Texas Statutes, Government Code 2158.004-2158.009)

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)

Propane Infrastructure and Fuel Incentives - Sharp Energy

Sharp Energy provides fueling equipment at a reduced cost to fleets that convert to propane vehicles. For more information about this program, see the Sharp Energy Autogas website.

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)

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)

Alternative Fuel Vehicle (AFV) Access to Tunnels

An AFV powered by propane or natural gas may only use Port Authority of New York and New Jersey (PANYNJ) tunnels and the lower level of the George Washington Bridge if the vehicle conforms to applicable federal regulations and industry standards, displays required markings to identify its alternative fuel system, and has a fuel capacity that does not exceed 150 pounds. For more information, see the PANYNJ Truckers' Resources website.

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)

Alternative Fuel Vehicle (AFV) Access to Tunnels

An AFV powered by propane or natural gas may only use Port Authority of New York & New Jersey (PANYNJ) tunnels and the lower level of the George Washington Bridge if the vehicle conforms to applicable federal regulations and industry standards, displays required markings to identify its alternative fuel system, and has a fuel capacity that does not exceed 150 pounds.

For more information, see the PANYNJ Trucker's Resources website and the South Jersey Transportation Authority Rules and Regulations website.

(Reference New Jersey Administrative Code 19:2-4.3)

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)

Propane and Electricity Tax Exemptions

Propane and electricity used to operate motor vehicles are exempt from state motor fuel taxes. For more information, see the Utah State Tax Commission Fuel Taxes website. (Reference Utah Code 59-13-102, 59-13-201, and 59-13-301)

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)

Alternative Fuel Definition and Specifications

An alternative fuel is defined as biofuel, ethanol, methanol, hydrogen, coal-derived liquid fuels, electricity, natural gas, propane gas, or a synthetic transportation fuel. Biofuel is defined as a renewable, biodegradable, combustible liquid or gaseous fuel derived from biomass or other renewable resources that can be used as transportation fuel, combustion fuel, or refinery feedstock and that meets ASTM standards and federal quality requirements for each category or grade of fuel. Biofuel includes biodiesel or renewable diesel, renewable gasoline, renewable jet fuel and naphtha, biocrude, biogas, and other renewable, biodegradable, mono alkyl ester combustible fuel derived from biomass. Ethanol is ethyl alcohol derived from biomass that meets ASTM Standard D4806-04a and federal quality requirements. Synthetic transportation fuel is a liquid fuel produced from biomass by a gasification process or other refining process that meets any applicable state or federal environmental requirement. (Reference Arkansas Code 15-13-102 and 26-62-102)

Municipal Alternative Fuel Tax Regulation

A taxing jurisdiction may not levy a tax or fee, however denominated, on natural gas or propane used to propel a motor vehicle.

(Reference Arizona Revised Statutes 42-6004)

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)

Alternative Fuel Vehicle (AFV) Incentives - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District administers the Public Benefit Grant Program, which provides funding to cities, counties, special districts (such as water districts and irrigation districts), and public educational institutions for the purchase of new AFVs, including electric, hybrid electric, natural gas, and propane vehicles. The maximum grant amount allowed per vehicle is $20,000, with a limit of $100,000 per agency per year. Projects are considered on a first-come, first-serve basis. For more information, see the Public Benefit Grant Program website.

Alternative Fuel Vehicle Decal and High Occupancy Vehicle (HOV) Lane Exemption

Propane, natural gas, all-electric, and plug-in hybrid electric vehicles are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must display the special clean fuel decal issued by the Utah Department of Transportation (UDOT); a limited number of decals are available. This exemption expires September 29, 2025. For more information about qualifying vehicles and decal availability, see the UDOT Clean Fuel Vehicle Decal and Permit website. (Reference Utah Code 41-1a-416, 41-1a-418, 41-6a-702, 59-13-102, and 72-6-121)

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 Resale and Generation Regulations

A corporation or individual that resells alternative fuel supplied by a public utility for use in an alternative fuel vehicle (AFV) is not subject to regulation as a public utility. Additionally, a corporation or individual that owns, controls, operates, or manages a facility that generates electricity exclusively for use in AFV charging or fueling facilities is not subject to regulation as a public utility provided that the electricity is generated on the property where the charging or fueling facilities are located and the electricity is generated from a renewable resource. For the purposes of this definition, alternative fuel is defined as propane, liquefied natural gas, compressed natural gas, or electricity.

(Reference Colorado Revised Statutes 40-1-103.3)

Authorization for Alternative Fuel Infrastructure Incentives

Local governments may use income from the infrastructure surtax to provide loans, grants, or rebates to residential or commercial property owners to install electric vehicle supply equipment, propane fueling infrastructure, and natural gas fueling infrastructure, if a local government ordinance authorizing this use is approved by referendum. (Reference Florida Statutes 206.9951 and 212.055)

Propane Self-Service Fueling Station Regulations

Propane retailers may offer self-service, coin-operated, credit card, or any other pump-activating fuel dispensing device to the general public. The retailer must post readily-visible step-by-step instructions to the operator. The Louisiana Liquefied Petroleum Gas Commission must promulgate and adopt rules and regulations to provide education and instruction on the safe operation and use of automatic fuel dispensing devices.

(Reference Louisiana Revised Statutes 40:1853.1)

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)

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)

Natural Gas and Propane Retailer License

Natural gas and propane retailers must obtain a license from the Florida Department of Revenue. Through December 31, 2023, a retailer that does not hold a valid license is subject to a penalty of $200 per month of operation without a license. Beginning January 1, 2024, the penalty will be 25% of the tax assessed on total purchases. Exemptions may apply. (Reference Florida Statutes 206.9951 and 206.9952)

Natural Gas and Propane Tax

Effective January 1, 2024, propane, compressed natural gas (CNG), and liquefied natural gas (LNG) will be subject to an excise tax at a rate of $0.04 per gasoline gallon equivalent (GGE), plus a $0.01 ninth-cent fuel tax, a $0.01 local option fuel tax, and an additional variable component to be determined by the Florida Department of Revenue (Department) each calendar year for the following 12-month period. To determine this tax, the Department will require each propane and natural gas retailer to file monthly electronic reports beginning February 2024. For taxation purposes, one GGE is equal to 5.66 pounds (lbs.) or 126.67 standard cubic feet of CNG; 6.06 lbs. of LNG; and 1.35 gallons of propane. Exemptions may apply. (Reference Florida Statutes 206.9955, 206.9965, and 206.996)

Alternative Fuel Vehicle (AFV) Revolving Loan Program

The Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Program provides zero-interest loans for public school districts and municipalities to cover the incremental cost to purchase alternative fuel school buses and other motor vehicles, convert school buses and other motor vehicles to use U.S. Environmental Protection Agency compliant alternative fuel systems, purchase alternative fuel equipment, and install fueling stations. Loans are available for up to $300,000 for the purchase and retrofit of AFVs, and up to $500,000 for the purchase and installation of fueling station equipment and infrastructure. Eligible alternative fuels include propane and natural gas. For more information, see the Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Program website.

(Reference Mississippi Code 57-1-421)

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 Tax

Compressed natural gas (CNG), liquefied natural gas (LNG), and propane are subject to excise tax imposed on a per gallon basis as follows:

(Reference Colorado Revised Statutes 39-27-102)

Special Fuel License Tax

Certain special fuels sold or used to propel motor vehicles are subject to a license tax. Liquefied natural gas is subject to a tax per diesel gallon equivalent. Compressed natural gas, butane, and propane are subject to a tax per gasoline gallon equivalent. From July 1, 2018, through July 1, 2024, the tax rate will be determined each year based on the special fuel tax index factor. The tax does not apply to nominal biodiesel blends of at least 20% (B20); special fuel used only for a personal, noncommercial use and not for resale; and biodiesel used by a biodiesel producer holding an exemption certificate. Other exemptions apply. For the current tax rate and more information, see the Indiana Miscellaneous Tax Rates website. (Reference Indiana Code 6-6-2.5 and 6-6-1.6)

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)

Alternative Fuel Excise Tax

Compressed natural gas motor fuel is subject to the state fuel excise tax at the rate of $0.34 per 120 cubic feet, measured at 14.73 pounds per square inch and 60 degrees Fahrenheit. Propane motor fuel is subject to the excise tax $0.34 per 1.3 gallons at 60 degrees Fahrenheit. (Reference Oregon Revised Statutes 319.530)

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)

Alternative Fuel Excise Tax

Propane and compressed natural gas (CNG) are subject to a federal excise tax of $0.183 per gasoline gallon equivalent (GGE). The liquefied natural gas (LNG) tax rate is $0.243 per diesel gallon equivalent (DGE). For taxation purposes, one GGE is equal to 5.75 pounds (lbs.) of propane and 5.66 lbs. of CNG. One DGE is equal to 6.06 lbs. of LNG. (Reference Public Law 114-41 and 26 U.S. Code 4041 and 4081)

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)

Vehicle Fleet Maintenance and Fuel Cost-Savings Contracts

Government fleets may finance the lease or purchase cost of alternative fuel vehicles and alternative fueling infrastructure through energy performance contracts where vehicle operational and fuel cost savings pay for the capital investment. Energy performance contracts must show that the annual cost savings associated with the fueling and maintenance of vehicles with higher efficiency ratings or alternative fueling methods is equal to or higher than the annual contract payments.

(Reference Colorado Revised Statutes 24-30-2001 through 24-30-2003 and 29-12.5-101 through 29-12.5-104)

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)

Compressed Natural Gas (CNG) and Propane Tax

CNG and propane used in motor vehicles is subject to a state motor fuel tax rate of $0.26 per gasoline gallon equivalent (GGE). For taxation purposes, one GGE is equal to 123.57 standard cubic feet of natural gas and 35.97 cubic feet of propane. For more information, see the Connecticut Department of Revenue Services Special Notice website.

(Reference Connecticut General Statutes 12-458)

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)

Natural Gas and Propane Vehicle Weight Exemption

A vehicle powered by natural gas or propane may exceed the state's gross, axle, and bridge vehicle weight limits by up to 2,000 pounds. This exemption does not apply on interstate highways. (Reference 625 Illinois Compiled Statutes 5/15-111)

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)

Alternative Fuel Dealer License

Any person who sells natural gas and propane on which the road tax has not been paid and who is not licensed and bonded must become licensed through the New Hampshire Department of Safety. The alternative fuel dealer must collect and remit road taxes and will be subject to a penalty for noncompliance. Failure to obtain a license and demonstrate compliance may result in fines and loss of the license, respectively. (Reference New Hampshire Revised Statutes 260:36, 260:38, and 260:40)

Alternative Fuels Road Tax

Alternative fuels including, but not limited to, natural gas or propane sold by a licensed alternative fuel dealer and used in on-road vehicles is subject to a $0.222 per gallon equivalent road tax. The New Hampshire Department of Safety will define rules for the applicable conversion rates for natural gas and propane based on nationally recognized standards for weights and measures. Certain exemptions apply, including sales to government entities, between duly licensed distributors, and sales of exported motor fuel. For taxation purposes, electricity is not considered an alternative fuel. For more information, see the Road Toll Bureau website. (Reference New Hampshire Revised Statutes 259:3-d, 259:58-b, 260:32c, 260:47, and 260:52)

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)

Alternative Fuel and Idle Reduction Revolving Loan Program for Public Entities

The Alabama Department of Economic and Community Affairs (ADECA) offers low-interest energy efficiency loans through its Local Government Energy Loan program to local governments and educational institutions. Eligible energy efficiency improvement projects include those involving idle reduction equipment and natural gas and propane vehicle conversions or purchases. Dedicated and bi-fuel vehicles are eligible. Loans may cover both incremental and conversion costs. Local governments and public colleges and universities may borrow up to $350,000, and K-12 public schools may borrow up to $350,000 per campus or $500,000 per school system. The minimum loan amount is $50,000 and the maximum loan term is five years. For more information, including application availability, see the ADECA’s Energy Division website.

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.

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

Vehicles powered exclusively by electricity, propane, or natural gas are exempt from state motor vehicle emissions inspections after a one-time verification inspection. For more information, see the Ohio Environmental Protection Agency E-Check website. (Reference Ohio Administrative Code 3745-26-1 and 3745-26-12)

Propane Education, Research, and Training

The Propane Education and Research Act of 1996 established the Propane Education and Research Council (PERC) to develop programs education and training programs for safe propane use. The propane industry funds and operates PERC, and PERC helps coordinate efforts to promote the use of propane as an alternative fuel. The Propane Education and Research Enhancement Act of 2014 expanded PERC's duties by tasking the council with developing training programs to reduce the effects of future propane price spikes for propane distributors and consumers. For more information, see the PERC website. (Reference Public Laws 113-269 and 104-284)

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 Export Tax Exemption

Alternative fuel sold for use in motor vehicles and intended for export from the state by a licensed alternative fuel exporter is exempt from the alternative fuel license tax. Any person exporting alternative fuel for which the license tax has been paid is eligible for a refund of the license tax paid. The exporter must submit the refund request within one year of the date of fuel purchase. (Reference Wyoming Statutes 39-17-301, 39-17-305, and 39-17-309(c))

Alternative Fuel Tax Rate

A license tax of $0.24 per gasoline gallon equivalent (GGE) or diesel gallon equivalent (DGE) is collected on all alternative fuel used, sold, or distributed for sale or use in Wyoming. Alternative fuels include compressed natural gas (CNG), liquefied natural gas (LNG), propane, electricity, and renewable diesel. For taxation purposes, one GGE of CNG is equal to 5.66 pounds (lbs.), one DGE of LNG is equal to 6.06 lbs., one GGE of propane is equal to 1.35 gallons, and one GGE of electricity is equal to 33.56 kilowatt-hours. For more information, refer to the Wyoming Department of Transportation Tax Rates website. (Reference Wyoming Statutes 39-17-104, 39-17-204, 39-17-301. 39-17-303, and 39-17-304)

Alternative Fuel License Fee

Each alternative fuel supplier, refiner, distributor, terminal operator, importer or exporter of alternative fuel used in motor vehicles must obtain an annual license from the Wyoming Department of Transportation to conduct business in the state. The fee for each type of license is $25. (Reference Wyoming Statute 39-17-306)

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)

Alternative Fuel Vehicle (AFV) Annual Fee

All-electric, natural gas, and propane vehicles are subject to an annual licensing fee of $320.65 for commercial vehicles and $213.70 for non-commercial vehicles. These fees apply to plug-in hybrid electric vehicles and flexible fuel vehicles only if they have an AFV license plate.

AFV license plates are subject to a one-time manufacturing fee of $25, an annual $20 registration fee, and a $35 special tag fee. Electric, natural gas, propane, bi-fuel, and dual-fuel vehicles are eligible for an AFV license plate.

For more information, see the Georgia Department of Revenue Motor Vehicle Policy Bulletin and the Annual AFV Fee website.

(Reference Georgia Code 40-2-86.1 and 40-2-151)

Propane Equipment and Infrastructure Liability Exemption

Propane equipment, infrastructure, and fuel providers are exempt from civil liability for personal injury or property damage resulting from an individual who modifies, repairs, materially alters, or uses propane equipment or fuel for purposes not intended by the manufacturer or fuel producer. (Reference Indiana Code 34-31-11.2-2)

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.

Alternative Fuel Vehicle (AFV) Rebates

As part of the Delaware Clean Transportation Incentive Program, the Delaware Department of Natural Resources and Environmental Control (DNREC) offers rebates for new or leased AFVs. The following rebate amounts are applicable for vehicles purchased or leased before December 31, 2022:

Eligible applicants include Delaware residents, businesses, organizations, and government entities. Rebates are limited to six vehicles per fleet. Additional terms and conditions apply. For more information, including application guidelines and participating dealers, see the DNREC Clean Fuel and Transportation Initiatives 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)

Alternative Fuel Vehicle (AFV) Parking Space Regulation

An individual is not allowed to park a motor vehicle within any parking space specifically designated for public parking and fueling of AFVs unless the motor vehicle is an AFV fueled by electricity, natural gas, methanol, propane, gasoline blended with at least 85% ethanol (E85), or other fuel the Oregon Department of Energy approves. Eligible AFVs must also be in the process of fueling or charging to park in the space. A person found responsible for a violation is subject to traffic violation penalties. (Reference Oregon Revised Statutes 811.587 and 469B.100)

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)

Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for 25% of the cost to purchase, construct, and install qualified alternative fueling infrastructure. Qualified infrastructure includes equipment used to distribute, dispense, or store alternative fuel. Eligible fuels include natural gas and propane. The entire credit must be taken in three equal annual installments beginning with the taxable year in which the facility is placed into service. Unused credits may be carried forward for up to ten succeeding taxable years. A taxpayer may transfer the tax credit to eligible agencies after notifying the South Carolina Department of Revenue. This tax credit expires January 1, 2026. (Reference South Carolina Code of Laws 12-28-110, 12-37-2820, and 12-6-3695)

Renewable Fuel Distributor and Vehicle Manufacturer Liability Protection

Renewable fuel refiners, suppliers, terminals, wholesalers, distributors, retailers, and motor vehicle manufacturers and dealers are not liable for property damages related to a customer’s purchase of renewable fuel, including blends, if the consumer selected the fuel for use. Motor fuel blended with any amount of renewable fuel will not be considered a defective product provided the fuel compiles with motor fuel quality regulations.

(Reference Missouri Revised Statutes 414.255)

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)

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)

Alternative Fuel and Special Fuel Inventory Tax

Owners of fuel that have title to a fuel storage tank containing propane, biodiesel, blended biodiesel, or natural gas for sale to a motor carrier for highway use in Indiana are subject to an inventory tax. The tax rate is based on the number of gallons of fuel in storage at the close of business on the inventory date, minus the amount of fuel that is below the mouth of the draw pipe. To account for the fuel that will not be pumped, a fuel owner may deduct 200 gallons from the fuel inventory for a fuel storage tank with a capacity of less than 10,000 gallons, and 400 gallons for a fuel storage tank with a capacity of over 10,000 gallons. (Reference Indiana Code 6-6-4.1 and 6-6-2.5-29)

Propane Equipment Exemption

An individual that operates a propane fueling station equipped with a quick-connect nozzle may sell propane without verifying that vehicles re-fueling at the station have a valid Missouri alternative fuel decal, as long as the appropriate motor fuel tax is collected at the time of fueling. (Reference Missouri Revised Statutes142.869)

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)

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)

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.

Alternative Fuels Tax and Reporting

Alternative fuel dealers must sell liquefied natural gas (LNG) and propane used as motor fuel in diesel gallon equivalents (DGEs). For taxation purposes, LNG and propane must be reported as DGEs and are taxed at a rate of $0.467 per DGE. One DGE is equal to 6.06 pounds (lbs.) of LNG and 6.41 lbs. of propane. Alternative fuel dealers must sell compressed natural gas (CNG) used as motor fuel in gasoline gallon equivalents (GGEs). CNG must be reported in GGEs and is taxed at a rate of $0.392 GGE. One GGE is equal to 5.66 lbs. of CNG. The motor fuels tax increases annually on July 1 by an amount equal to the percentage increase of the United States Department of Labor’s Consumer Price Index for All Urban Consumers For current tax rates, see the Illinois Motor Tax Rates and Fees website. (Reference 35 Illinois Compiled Statutes 505/1.8 and 505/2)

Alternative Fuel Vehicle (AFV) Access to Tunnels

An AFV powered by propane or natural gas may only use the Baltimore Harbor Tunnel and the Fort McHenry Tunnel if the vehicle has a dedicated alternate fuel system installed by the manufacturer of the vehicle or a fuel system that has been properly converted to an alternate fuel system, conforms to applicable federal regulations and industry standards, has a fuel capacity that does not exceed 150 pounds, and displays all proper markings and symbols.

(Reference Code of Maryland Regulations 11.07.01.03)

Alternative Fuel Vehicle (AFV) Access to Massachusetts Turnpike and Tunnels

An AFV powered by propane or natural gas may only use the Massachusetts Turnpike at or between Interchange 1 in West Stockbridge and Interchange 14 in Weston if the vehicle has a special fuel transportation permit issued by the Massachusetts Department of Transportation. The AFV must conform to applicable federal and state laws and regulations. An AFV powered by compressed natural gas or propane may only use Massachusetts tunnels if the vehicle conforms to applicable federal regulations and industry standards, displays required markings to identify its alternative fuel system, and is not used to transport fuel. (Reference 700 Code of Massachusetts Regulations 7.07)

Medium- and Heavy-Duty Emissions Reduction Grants

The Ohio Environmental Protection Agency (Ohio EPA) offers grants for the replacement or repower of eligible on- and off-road vehicles and equipment. Eligible on-road projects include Class 4-8 trucks, school, shuttle, and public transit buses. Eligible off-road projects include airport ground support equipment, ferries, forklifts, port cargo handling equipment, and freight-switcher locomotives. Eligible projects may also include alternative fuel infrastructure if the applicant conducts a site assessment. All vehicles and equipment must be certified by the U.S. Environmental Protection Agency or the California Air Resources Board. Additional terms and conditions apply. This program is funded by Ohio’s portion of the Volkswagen (VW) Environmental Mitigation Trust. For more information, including application periods, see the Ohio EPA website.

Heavy-Duty Vehicle Emissions Reduction Grants

The Nevada Division of Environmental Protection (NDEP) administers Nevada's portion of the Volkswagen (VW) Environmental Mitigation Trust through the Nevada Diesel Emission Mitigation Fund. The fund assists publicly- and privately-owned fleets with the replacement or repower of model year 2009 or older medium- and heavy-duty diesel-powered vehicles. Funding amounts vary based on vehicle, applicant, and fuel type. For more information, including application periods and guidelines, see the NDEP VW Settlement Funds 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.

Natural Gas and Propane Licenses

Any person or entity that distributes, supplies, imports, exports, carries, or blends natural gas or propane must obtain a license from the Colorado Department of Revenue.

(Reference Colorado Revised Statutes 39-27-104)

Propane Dealer License

A propane dealer is defined as any person, firm, or corporation that sells or otherwise deals in propane. Every dealer must be registered with the North Carolina Board of Agriculture (Board). A dealer must obtain and maintain a general liability insurance, a bond, or equivalent protection for the public. The dealer must be able to provide verification of insurance within 10 days of the Board's request. Additional requirements apply. For more information, see the Standards Division website. (Reference North Carolina General Statutes 119-54 and 119-56)

Propane License Requirement

Any individual or business doing propane work in Oregon must obtain a license from the Oregon Office of State Fire Marshal. For additional information on license types, see the Liquefied Petroleum Gas website. (Reference Oregon Revised Statutes 480.432)

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.

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.

Alternative Fuel School Bus and Electric Vehicle (EV) Charging Station Rebate Program

The Oklahoma Department of Environmental Quality (DEQ) offers rebates for projects that repower or replace an actively used, engine model year 2009 or older, diesel school bus with an alternative fuel. Eligible alternative fuels and technologies include all-electric, electric hybrid, propane, and natural gas. Applicants may receive rebates of up to 45% of project costs. Charging infrastructure for electric buses is eligible for funding, but is subject to a per-charger maximum and project cap. The program is funded by Oklahoma’s portion of the Volkswagen Environmental Mitigation Trust. Applications must be submitted through Oklahoma’s Clean Diesel Program. For more information, see the DEQ Alternative Fuel School Bus Program 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.

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.

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.

Propane Vehicle Rebate - OPGA

Ohio Propane Gas Association (OPGA) provides $1,000 rebates to Ohio commercial fleet customers for the purchase of a new propane vehicle or a propane vehicle conversion. Customers may apply for a maximum of 5 rebates. Rebates are available on a first-come, first-served basis. For more information, including eligibility requirements and the rebate application, see the OPGA Autogas 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)

Medium- and Heavy-Duty Emissions Reductions Funding

The Delaware Department of Natural Resources and Environmental Control (DNREC) provides funding for medium- and heavy-duty on-road and limited off-road emission reduction projects. This grant program is funded by Delaware's portion of the Volkswagen Environmental Mitigation Trust (VW). For more information, including program guidance, application deadlines, and funding availability, see the DNREC VW Mitigation Plan website.

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.

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

The Louisiana Department of Environmental Quality’s (DEQ) Volkswagen Eligible Mitigation Action Project program provides up to 80% of the cost of new diesel or alternative fuel replacements and repowers for eligible government entities. For eligible non-government entities, the Program provides up to 40% of the cost of a new diesel or alternative fuel repower, up to 25% of the cost of a new diesel or alternative fuel vehicle, and up to 75% of the cost of an all-electric repower or replacement, with associated charging infrastructure. Qualifying alternative fuels include, but are not limited to, natural gas and propane. Vehicles that qualify for replacement or repower include:

Eligible government and non-government entities may also receive funding for the all-electric repower or replacement of airport ground support equipment, forklifts, and port cargo handling equipment, as well as for the purchase, installation, and maintenance of light-duty EV charging stations.

The program is funded by Louisiana’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including application guidelines, see the DEQ Louisiana Volkswagen Environmental Mitigation Trust 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)

Alternative Fuel Tax

Liquefied natural gas (LNG), ethyl alcohol, and methyl alcohol are taxed at a rate of $0.14 per gasoline gallon equivalent (GGE) when used as motor fuel. Compressed natural gas (CNG) and propane used as motor fuel are taxed at a rate of $0.10 per GGE and $0.20 per GGE, respectively. For taxation purposes, the fuels are converted to GGEs as follows:

• One GGE of LNG is equal to 1.5536 volumetric gallons of LNG
• One GGE of CNG is equal to 126.67 cubic feet of its natural service delivery line pressure
• One GGE of propane is equal to 4.24 pounds per gallon of liquid at 60 degrees Fahrenheit

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)

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

The Tennessee Department of Environment and Conservation (TDEC) provides funding for the repower or replacement of Class 4-8 school, shuttle and transit buses, Class 4-7 local freight trucks, and Class 8 local freight trucks and port drayage trucks, with alternative fuel or all-electric models. Alternative fuels include, but are not limited to, compressed natural gas, propane, and hybrid electric technologies. Funding is also available for light-duty EV charging stations. Private, public, and non-profit organizations, including state, local, and tribal governments, are eligible for funding. This grant program is funded by Tennessee’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding availability, see the TDEC Project Solicitations website.

Zero Emission School Bus Grant Program and Study

The Maryland Department of the Environment (MDE) administers a Zero Emission School Bus Transition Grant Program to purchase zero emission school buses, install charging infrastructure, and transition to zero emission school bus fleets. MDE and the Maryland Department of Transportation also provide technical assistance to county boards of education transitioning school buses to zero emission vehicles throughout the state.

(Reference Maryland Statutes, Environmental Code 2-1501 and 2-1503)

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)

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)

Propane Vehicle Conversion Rebate – Michigan Propane Gas Association

Vehicles converted to run on propane that are model year 2015 or newer are eligible for a $4,000 rebate per vehicle, up to $16,000 per customer. Rebates are awarded on a first-come, first-served basis. For more information, including vehicle restrictions and requirements, see the Michigan Propane Gas Association <a href="Vehicles converted to run on propane that are model year 2015 or newer are eligible for a $4,000 rebate per vehicle, up to $16,000 per customer. Rebates are awarded on a first-come, first-served basis. For more information, including vehicle restrictions and requirements, see the Michigan Propane Gas Association’s Incentive Programs website.

Electric Vehicle (EV) Charging Station and Medium- and Heavy-Duty Diesel Vehicle Replacement Rebates

The Alabama Department of Economic and Community Affairs (ADECA) offers grants for light-duty EV charging stations and the replacement of qualified medium- and heavy-duty diesel vehicles with new diesel or alternative fuel vehicles. Grants are available for EV charging stations; medium- and heavy-duty trucks; school, shuttle, and transit buses; freight switchers; airport ground support equipment; and forklifts and port cargo handling equipment. Vehicles must meet model year requirements. Funding amounts are based on vehicle type, fuel type, and applicant type. Grants are funded by Alabama’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and the application, see the ADECA Volkswagen Settlement website.

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.

Clean Diesel Grant Program

The Wisconsin Department of Natural Resources (DNR) provides U.S. Environmental Protection Agency Diesel Emission Reduction Act (DERA) funding for projects that reduce diesel emissions in Wisconsin. Funding for 25% to 100% of eligible projects costs is available to businesses, nonprofits, and public entities that reduce diesel emissions by replacing engines, retrofitting exhaust controls, purchasing new vehicles, or installing idle reduction equipment. For more information, including funding amounts and application details, see the DNR Clean Diesel Grant Program website.

Liquid Alternative Fuel Sale Requirement

An individual may only sell liquid alternative fuels if the seller provides the purchaser a delivery ticket with the name and address of the seller, the name and address of the purchaser, a description of the fuel delivered, and a meter reading showing the volume of liquid fuel delivered. The definition of alternative fuels includes those suitable for motor vehicles. (Reference Wisconsin Statutes 98.225(1) and (2))

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.

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.

Volkswagen (VW) Settlement Allocation

The South Dakota Department of Environment and Natural Resources may use funds awarded to South Dakota through the VW Environmental Mitigation Trust to issue grants for the reduction of nitrogen oxide air emissions from mobile sources in the state. The funds are deposited into a Clean Air Act Settlement fund.

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.

Off-Road Diesel Replacement Grants

The Minnesota Pollution Control Agency (MPCA) provides funding to public, private, and nonprofit fleet owners for the replacement of eligible off-road diesel equipment. Eligible equipment includes trailer refrigeration units, terminal tractors/drayage trucks, and more. This program is partially funded by Minnesota’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding availability, see the MPCA Diesel Emission Reduction Act website.

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)

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.

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)

Propane Vehicle Rebate – Pacific Propane Gas Association (PPGA)

PPGA offers commercial customers a rebate of $1,500 for the purchase of a new propane vehicle or propane conversion. Rebates are available until December 31, 2022, on a first-come, first-served basis. Eligible vehicles must be purchased in 2021. For more information, see the PPGA Pacific Runs on Propane website.

Propane Vehicle Rebate – Pacific Propane Gas Association (PPGA)

PPGA offers commercial customers a rebate of $1,500 for the purchase of a new propane vehicle or propane conversion. Rebates are available on a first-come, first-served basis or until December 31, 2022. Eligible vehicles must be purchased in 2022. For more information, see the PPGA Pacific Runs on Propane website.

Propane Vehicle Rebate – Pacific Propane Gas Association (PPGA)

PPGA offers commercial customers a rebate of $1,500 for the purchase of a new propane vehicle or propane conversion. Rebates are available until December 31, 2022, on a first-come, first-served basis. Eligible vehicles must be purchased in 2022. For more information, see the PPGA Pacific Runs on Propane website.

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.

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)

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)

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)

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.

Heavy-Duty Vehicle and Equipment Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Rebate Grants Program (Program) as part of the Texas Emissions Reduction Plan (TERP). The Program provides grants to eligible entities to replace or repower existing heavy-duty ,diesel-powered vehicles. Replacement vehicles and engines may not be more than three years older than the calendar year purchased and must reduce nitrogen oxide emissions by at least 25% compared to the vehicle or engine being replaced. Eligible replacement on- and off-road vehicles must be powered by diesel, natural gas, propane, or electricity. For more information, see the TCEQ Texas Emissions Reduction Plan TERP website. (Reference Texas Statutes, Health and Safety Code 386.104)

Seaport and Rail Yard Emissions Reduction Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Seaport and Rail Yard Areas Emissions Reduction Program (Program) as part of the Texas Emissions Reduction Plan (TERP). The Program provides grants to eligible entities to replace, repower, or purchase drayage and cargo handling equipment, Eligible projects include heavy-duty on-road vehicles with a gross vehicle weight rating over 26,000 pounds, off-road yard trucks, and other cargo handling equipment. Eligible engines or motors must be powered by electricity or meet federal emissions standards and reduce nitrogen oxide emissions by at least 25% compared to the engine being replaced. For more information, including current application periods, see the TCEQ TERP website. (Reference Texas Statutes, Health and Safety Code 386 Subchapter D-1)

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 Diesel Vehicle Repower and Replacement Grants

The North Dakota Department of Environmental Quality (NDDEQ) offers grants for the replacement or repower of non-road and medium- and heavy-duty vehicles with new diesel or alternative fuel vehicles. Grants may cover up to 38% of non-government project costs and up to 50% of government project costs. Eligible alternative fuels include all-electric, compressed natural gas, propane, and hybrid electric vehicles. The program is funded by North Dakota’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including eligible projects and program application, see the NDDEQ Volkswagen Settlement website.

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)

Diesel School Bus Replacement Program

The Nebraska Department of Environment and Energy (NDEE) will provide funding for the replacement of older diesel school buses. Model year 2018 and older school buses must be replaced with 2019 or newer model year propane, gasoline, or diesel engines pursuant to California Air Resources Board Optional Low-NOx Standards. The program is funded by Nebraska’s portion of the Volkswagen Environmental Mitigation Trust and the Diesel Emissions Reduction Act Program. For more information, including application details, visit the NDEE Volkswagen Settlement and Clean Diesel Rebate Program websites.

Bus and Bus Facilities Grants

The U.S. Department of Transportation’s Federal Transit Administration (FTA) administers the Grants for Buses and Bus Facilities Competitive Program. Eligible applicants include state, local, and tribal governments, fixed-route bus operators, and private nonprofit organizations engaged in public transportation. Funds may be used to replace, rehabilitate, and purchase buses, vans, and related equipment, and to construct associated bus facilities. The Bus and Bus Facilities Program is a competitive grant program. For more information, including funding availability and timelines, see the FTA Bus and Bus Facilities website.

(Reference Public Laws 117-58, 113-159, and 114-94 and 49 U.S. Code 5312 and 5339)

Propane School Bus Rebate - Minnesota Propane Association

Minnesota Propane Association offers a $5,000 rebate for the purchase of a new propane school bus. Eligible vehicles must be purchased after February 1, 2022. For more information, including how to apply, see the Minnesota Propane Association’s Incentive Program website.

Propane Engine Rebate - Minnesota Propane Association

Minnesota Propane Association offers rebates to Minnesota residents, fleets, farms, and other industry members who purchase a new propane powered irrigation engine. Vehicle engines with a manufacturer year of 2016 or newer are eligible for $300 per liter. For more information, including eligibility requirements, see the Minnesota Propane Association’s Incentive Program website.