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)

Pollution Prevention Grants Program

The Pollution Prevention (P2) Grants Program supports state and tribal technical assistance, education, and research programs that help businesses and industries identify better environmental strategies and solutions for complying with federal and state environmental regulations. Eligible applicants include states, U.S. territories, and qualified state agencies, colleges and universities. Local governments, private universities, private non-profit organizations, private businesses, and individuals are not eligible for funding. Matching funds will be awarded and managed by the U.S. Environmental Protection Agency’s regional P2 program offices. Grant amounts awarded are dependent on Congressional appropriations for this program. For more information see the P2 Program website. (Reference 42 U.S. Code 13104)

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 Bipartisan Infrastructure Law 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.

Tier 3 Vehicle and Gasoline Sulfur Program

The Tier 3 Vehicle and Gasoline Sulfur Program requires new passenger vehicles, including sport utility vehicles, pick-up trucks, and vans, to meet stringent emissions standards. New emissions standards apply to all light-duty vehicles, regardless of whether they run on gasoline, diesel, or alternative fuels. Additionally, this program requires gasoline refiners and importers to reduce the sulfur content of gasoline sold in the United States. For more information, see the U.S. Environmental Protection Agency Emission Standards website. (Reference 40 CFR 80, 85, and 86)

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 Law 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.

Small Agri-Biodiesel Producer Tax Credit

NOTE: This incentive originally expired on December 31, 2017, but was retroactively extended through December 31, 2020, by Public Law 116-94.

A small agri-biodiesel producer that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $0.10 per gallon of agri-biodiesel that is: sold and used by the purchaser in the purchaser's trade or business to produce an agri-biodiesel and diesel fuel mixture; sold and used by the purchaser as a fuel in a trade or business; sold at retail for use as a motor vehicle fuel; used by the producer in a trade or business to produce an agri-biodiesel and diesel fuel mixture; or used by the producer as a fuel in a trade or business. A small producer is one that has, at all times during the tax year, not more than 60 million gallons of productive capacity of any type of agri-biodiesel. Agri-biodiesel is defined as diesel fuel derived solely from virgin oils, including esters derived from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats; renewable diesel does not qualify for the credit. The incentive applies only to the first 15 million gallons of agri-biodiesel produced in a tax year is allowed as a credit against the producer's income tax liability.. For more information, see IRS Publication 510 and IRS Forms 637 and 8864, which are available via the IRS website. (Reference Public Law 116-94, Public Law 111-312, Section 701; and 26 U.S. Code 40A)

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))

Fuel Economy Test Procedures and Labeling

The U.S. Environmental Protection Agency (EPA) is responsible for motor vehicle fuel economy testing. Manufacturers test their own vehicles and report the results to EPA. EPA reviews the results and confirms a portion of them using their own testing facilities. To aid consumers shopping for new vehicles, EPA redesigned the fuel economy window sticker posted on all new cars and light trucks starting with Model Year 2013 vehicles to be easier to read and understand. EPA also redesigned fuel economy window stickers for electric and other advanced vehicles. EPA is responsible for providing the posted fuel economy data and does so through the FuelEconomy.gov website. For more information, visit EPA's Fuel Economy website. (Reference 40 CFR 600)

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)

Biomass Research and Development Initiative

The U.S. Department of Agriculture's National Institute of Food and Agriculture, in conjunction with U.S. Department of Energy's Office of Biomass Programs, provides grant funding for projects addressing research, development, and demonstration of biofuels and bio-based products and the methods, practices, and technologies for their production, under the Biomass Research and Development Initiative (Section 9008). The competitive award process focuses on three main technical areas: feedstock development; biofuels and bio-based products development; and biofuels development analysis. Eligible applicants are institutions of higher learning, national laboratories, federal research agencies, private sector entities, and non-profit organizations. The non-federal share of the total project cost must be at least 20% for research and development projects and 50% for demonstration projects. Renewable biomass is defined as materials, pre-commercial thinnings, or invasive species on National Forest System land that qualify as by-products of preventative treatments, are harvested in accordance with applicable laws, and would not otherwise be used for higher-value products, as well as naturally reoccurring organic matter on non-federal or non-tribal lands, including renewable plant material, feed grains, other plants and trees, algae, and vegetable and animal waste material and by-products. This program's funding is subject to congressional appropriations. For more information, see the Biomass Research & Development website. (Reference Public Law 113-79 and 7 U.S. Code 8108)

Value-Added Producer Grants (VAPG)

Value-Added Producer Grants (VAPG) are available to help independent agricultural producers enter into or expand value-added activities, including innovative uses of agricultural projects, such as biofuels production. Eligible applicants include independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures. Participants may apply for either a planning grant or a working capital grant, but not both. In addition, no more than 10% of program funds may be awarded to majority-controlled producer-based business ventures. Grants are awarded to projects determined to be economically viable and sustainable. For more information about grant eligibility, see the VAPG website and contact the appropriate State Rural Development Office. This program's funding is subject to congressional appropriations. (Reference Public Law 113-79, Section 6203; and 7 U.S. Code 1632a)

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)

Vehicle Fuel Economy and Greenhouse Gas (GHG) Emissions Standards

Vehicle manufacturers must meet fuel economy and GHG emissions standards for vehicles sold in the United States. The U.S. Department of Transportation's (DOT) National Highway Traffic Safety Administration (NHTSA) regulates fuel economy standards, while the U.S. Environmental Protection Agency (EPA) regulates GHG emissions.

NHTSA's Corporate Average Fuel Economy (CAFE) program and EPA's light-duty vehicle GHG emissions program set standards for passenger cars, light-duty trucks, and medium-duty passenger vehicles. By Model Year (MY) 2025, these vehicles must meet an estimated combined average fuel economy of 48.7 to 49.7 miles per gallon or higher. The standards provide flexibility to manufacturers, including the ability to earn credits for alternative fuel vehicles. For information on the standards from MY 2017-2025, see the final rule in the Federal Register.

NHTSA and EPA also regulate fuel economy and GHG emissions for on-road vehicles with a gross vehicle weight rating (GVWR) of 8,500 pounds or greater and the engines that power them. For MY 2014-2018 medium- and heavy-duty vehicles that are not already covered by the standards described above, manufacturers must meet increasingly stringent fuel economy and GHG emissions standards tailored to each of three main regulatory subcategories: combination tractors (also known as semi trucks); heavy-duty pickup trucks and vans; and vocational vehicles (such as delivery, refuse, and tow trucks; transit, shuttle, and school buses; and emergency vehicles). The standards provide flexibility, allowing for emissions and/or fuel consumption credits to be averaged, banked, or traded. For more information, refer to the final rule in the Federal Register.

For more information, see the EPA's Regulations and Standards website and NHTSA's CAFE website. (Reference 40 CFR 85-86, 600, 1033, 1036-1037, 1039, 1065-1066, and 1068; 49 CFR 523, 531, 533-534, and 537-538; and 49 U.S. Code Chapter 329)

High Occupancy Vehicle (HOV) Lane Exemption

States are allowed to exempt certified alternative fuel vehicles (AFVs) and electric vehicles (EVs) 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. EVs 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 EVs 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, local, and tribal 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.

Renewable Fuel Standard (RFS) Program

The national RFS Program was developed to increase the volume of renewable fuel that is blended into transportation fuels. As required by the Energy Policy Act of 2005, the U.S. Environmental Protection Agency (EPA) finalized RFS Program regulations, effective September 1, 2007. The Energy Independence and Security Act of 2007 (EISA) increased and expanded this standard. By 2022, 36 billion gallons of renewable fuel must be blended into domestic transportation fuels each year. A certain percentage of this renewable fuel must be advanced biofuel, which includes fuels derived from approved renewable biomass, excluding corn starch-based ethanol. Other advanced biofuels may include sugarcane-based fuels, renewable diesel co-processed with petroleum, and other biofuels that may exist in the future. All advanced biofuels must achieve a minimum of a 50% greenhouse gas (GHG) emissions reduction compared to baseline petroleum emissions. Nested within advanced biofuels are two sub-categories: cellulosic biofuel and biomass-based diesel, both of which have their own percentage requirements. Cellulosic biofuel is defined as any renewable fuel derived from cellulose, hemicellulose, or lignin that achieves a 60% GHG emissions reduction. Biomass-based diesel is defined as a renewable transportation fuel, transportation fuel additive, heating oil, or jet fuel, such as biodiesel or non-ester renewable diesel, and achieves a 50% GHG emissions reduction. If intended for use in a motor vehicle, the fuel must also be registered with EPA as a motor vehicle fuel or fuel additive.

Each year, EPA determines the annual percentage standards by dividing the annual amount of renewable fuel (gallons) required by EISA for each renewable fuel pathway by the amount of highway and non-road gasoline and petroleum diesel estimated to be supplied that year. These percentages are then applied to obligated parties’ actual fuel sales to determine their Renewable Volume Obligation (RVO). Any party that produces gasoline for use in the United States, including refiners, importers, and blenders (other than oxygenate blenders), is considered an obligated party under the RFS Program. Parties that do not produce, import, or market fuels within the 48 contiguous states are exempt from the renewable fuel tracking program.

For more information, see the RFS Program website.

(Reference 42 U.S. Code 7545(o) and 40 CFR 80.1100-80.1167)

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)

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Manufacturing Loans

The U.S. Department of Energy (DOE) provides grants or loan guarantees through the Loan Guarantee Program for the domestic production of efficient hybrid vehicles, plug-in hybrid electric vehicles, all-electric vehicles, and hydrogen fuel cell electric vehicles,. The program is not intended for research and development projects. DOE may issue loan guarantees for at least 50% 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 DOE Loan Guarantee Program website and the Alternative Fuel Infrastructure fact sheet.

Biodiesel Mixture Excise Tax Credit

NOTE: This incentive was originally set to expire on December 31, 2022, but has been extended through December 31, 2024, by Public Law 117-169.

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 Law 117-169)

Biodiesel Income Tax Credit

NOTE: This incentive was originally set to expire on December 31, 2022, but has been extended through December 31, 2024, by Public Law 117-169.

For more information about claiming the credit, see Internal Revenue Service (IRS) Forms 637 and 8864, which are available on the IRS Forms and Publications website. For information about registering with the EPA, see the EPA Fuels Registration, Reporting, and Compliance Help website.

(Reference 26 U.S. Code 40A and Public Law 117-169)

Alternative Fuel Tax Exemption

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

Alternative Fuel Definition - Internal Revenue Code

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

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

The Inflation Reduction Act of 2022 (Public Law 117-169) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022, with additional requirements taking place beginning January 1, 2023. For vehicles placed in service on or after January 1, 2023, the Clean Vehicle Credit provisions will be subject to updated guidance from the IRS and the U.S. Department of the Treasury. See the IRS Plug-In Electric Drive Vehicle Credit for further details. More details are provided below by date of purchase and on the list of EVs with Final Assembly in North America.

Vehicles Placed in Service After December 31, 2022

Beginning January 1, 2023, the Clean Vehicle Credit (CVC) provisions remove manufacturer sales caps, expand the scope of eligible vehicles to include both EVs and FCEVs, and require a traction battery that has at least seven kilowatt-hours (kWh). An available tax credit under the CVC may be limited by the vehicle’s MSRP and the buyer’s modified adjusted gross income (see below). The CVC provisions also establish criteria for a vehicle to be considered eligible that involve sourcing requirements for critical mineral extraction, processing, and recycling and battery component manufacturing and assembly; these critical material and battery component provisions begin to apply only after the U.S. Department of the Treasury issues guidance on these particular provisions.

Until the Treasury Department issues this critical mineral and battery component guidance, the available CVC tax credit amounts to a base amount of $2500 plus, for a vehicle that draws propulsion energy from a battery with at least 7 kWh of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kWh. The total tax credit available for a vehicle may not exceed $7,500.

Once the Treasury Department issues the critical mineral and battery component guidance, vehicles that meet the critical mineral requirements are eligible for $3,750 tax credit, and vehicles that meet the battery component requirements are eligible for a $3,750 tax credit. Vehicles meeting both the critical mineral and the battery component requirements are eligible for a total tax credit of $7,500.

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

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

To be eligible for the CVC tax credit, vans, sport utility vehicles, and pickup trucks must meet the additional requirements of not having a final manufacturer suggested retail price (MSRP) above $80,000, and all other vehicles may not have a final MSRP above $55,000. The final MSRP can be found on the vehicle’s window sticker, which is also known as the “Monroney label”; the final MSRP includes any trim, options, or accessories for the particular vehicle and excludes the destination fee.

Additionally, a taxpayer’s eligibility for the tax credit may be limited by thresholds for modified adjusted gross income (MAGI); only individuals having a MAGI below the following thresholds are eligible for the tax credit:

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

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

Vehicles Purchased Between August 17 and December 31, 2022

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

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

Vehicles Purchased Before August 17, 2022

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

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

Idle Reduction Equipment Excise Tax Exemption

Qualified on-board idle reduction devices and advanced insulation are exempt from the federal excise tax imposed on the retail sale of heavy-duty highway trucks and trailers. The exemption also applies to the installation of qualified equipment on vehicles after the vehicles have been placed into service. For a list of eligible products and additional information about product exemption eligibility criteria, see the U.S. Environmental Protection Agency's (EPA) SmartWay Technology Program Federal Excise Tax Exemption website. The exemption applies to equipment that EPA, in consultation with the U.S. Department of Energy and the U.S. Department of Transportation, identified as reducing the idling of the tractor at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary. Only equipment sold on or after October 4, 2008, is eligible. For more information, see IRS Publication 510 and the instructions for IRS Form 720, which are available on the IRS Forms and Publications website. (Reference 26 U.S. Code 4053)

Advanced Technology Vehicle (ATV) and Alternative Fuel Infrastructure Manufacturing Incentives

The U.S. Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing Loan Program may offer direct loans to eligible manufacturers for up to 30% of the cost of re-equipping, expanding, or establishing manufacturing facilities in the United States used to produce qualified ATVs, ATV components, or alternative fuel infrastructure, including associated hardware and software. Qualified ATVs are light-, medium-, and heavy-duty ultra-efficient vehicles that meet specified federal emission standards and fuel economy requirements, and emit low or zero exhaust. Ultra-efficient vehicles are fully closed compartment vehicles, designed to carry at least two adult passengers, which achieve at least 75 miles per gallon while operating on gasoline or diesel fuel, as hybrid electric vehicles operating on gasoline or diesel fuel, or as fully electric vehicles. Qualified components must be designed for ATVs and installed for the purpose of meeting ATV performance requirements, as determined by DOE. For more information, see the DOE’s ATVs Manufacturing Loan Program website and ATVs Manufacturing Loan Program fact sheet.

(Reference 42 U.S. Code 17013 and Public Law 117-169)

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 Law 117-169)

Greenhouse Gas (GHG) Reporting Requirement

Vehicle and engine manufacturers are required to report annual GHG emissions to the U.S. Environmental Protection Agency (EPA). Vehicle and engine manufacturers outside of the light-duty sector are required to report carbon dioxide emissions levels beginning with Model Year 2011 and other GHG emissions in subsequent model years. This includes heavy trucks, motorcycles, and non-road engines and equipment. The reporting requirement also applies to suppliers of fossil fuels or industrial GHGs and facilities that emit at least 25,000 metric tons of carbon dioxide equivalent per year. For more information, see EPA's Greenhouse Gas Reporting Program website. (Reference 40 CFR 86-90, 94, 98, 1033, 1039, 1042, 1045, 1048, 1051, 1054, and 1065)

Procurement Preference for Electric and Hybrid Electric Vehicles

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

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)

Zero Emission Vehicle Emissions Test Exemption

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

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

Reduced Alternative Fuel Vehicle (AFV) License Tax

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

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

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

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

Air Quality Improvement Program Funding - Ventura County

The Ventura County Air Pollution Control District (VCAPCD) administers the Clean Air Fund, which provides grants for qualified air quality improvement projects located in Ventura County. The Clean Air Fund Advisory Committee is interested in projects that will have significant emissions reduction impacts. For more information, see the VCAPCD Clean Air Fund website.

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.

Electric Vehicle (EV) Charging Rate Reduction - SMUD

The Sacramento Municipal Utility District (SMUD) offers a discounted rate to residential customers for electricity used to charge EVs. For more information, see the SMUD Rate Details 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)

Zero Emission Vehicle (ZEV) Production Requirements

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

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

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

For more information, see the CARB ZEV Program website.

(Reference California Code of Regulations Title 13, Section 1962 -1962.2)

Alternative Fuel Vehicle (AFV) Weight Exemption

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

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

Gasoline and Diesel Gallon Equivalent Definition

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

Emissions Reduction Credits

Any state mobile emissions reduction credits program must allow credits for emissions reductions achieved by converting a vehicle to operate on an alternative fuel, even if the conversion took place before the credit program began.

(Reference Connecticut General Statutes 22a-174i)

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)

Fleet User Fee Exemption

Fleets with 10 or more vehicles located in defined areas of the state must pay an annual fee of $20 per vehicle in addition to registration fees. Owners of electric vehicles are exempt from this fee. The Office of the Illinois Secretary of State deposits all fees into the Electric Vehicle Rebate Fund.

(Reference Illinois Compiled Statutes 120/35)

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)

Biodiesel Price Preference

A governmental body, state educational institution, or instrumentality of the state that performs essential governmental functions on a statewide or local basis is entitled to a 10% price preference for the purchase of fuels containing at least 20% biodiesel (B20) by volume or fuels that are primarily ester-derived (other than alcohol) made from biological materials, such as oilseeds and animal fats, for use in operating compression and ignition engines. (Reference Indiana Code 5-22-15-19)

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)

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

Maine has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. These regulations apply to all passenger cars, light-duty trucks, medium-duty vehicles, and heavy-duty diesel vehicles and engines. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements.

(Reference Department of Environmental Protection Rules, Chapter 127)

Deregulation of Compressed Natural Gas (CNG) as a Motor Fuel

The sale of CNG by a fueling station for use as fuel to operate a motor vehicle is deregulated; however, separate records, books, and accounts of such sales must be maintained. Investments in related infrastructure must not reduce the availability or increase the cost of natural gas to customers who purchase natural gas for use other than as fuel to operate a motor vehicle.

(Reference Massachusetts General Laws Chapter 164, Section 941/2)

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)

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

Any new light-duty passenger car, light-duty truck, or medium-duty passenger vehicle sold, leased, imported, delivered, purchased, or acquired in New York State must be certified to the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements.

(Reference New York State Department of Environmental Conservation Regulations Chapter III, Part 218)

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.

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

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, I-564, 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 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, 40-82, and 40-82-270)

Electric Vehicle (EV) Insurance Regulation

Insurance companies may not impose surcharges on EVs based on factors such as new technology, passenger payload, weight-to-horsepower ratio, and the types of material used to manufacture the vehicle, unless the Florida Office of Insurance Regulation receives actuarial data that determines the surcharges are justified. (Reference Florida Statutes 627.06535)

Ethanol and Biobutanol Production Incentive

Qualified and licensed ethanol and biobutanol producers are eligible for a $0.20 per gallon production incentive for ethanol and biobutanol that is fully distilled and produced in South Dakota. Ethanol must also be denatured, 99% pure, distilled from cereal grains, and blended with gasoline to create an ethanol blend. In addition, the producer must have produced ethanol on or before December 31, 2006, to be eligible. Annual production incentives paid to one facility may not exceed $1 million. Cumulative annual production incentives paid out to all facilities may not exceed $7 million per year. Funds are apportioned each month based on the claims submitted and the total funds available. This incentive expires on July 1, 2022. (Reference South Dakota Statutes 10-47B-162 and 10-47B-163)

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)

Electric Vehicle (EV) Charging Station Tax Credit

An eligible business enterprise may claim an income tax credit for the purchase and installation of qualified EV charging station. The EV charging station must be located in Georgia and accessible to the public. The tax credit is for 10% of the cost of the EV charging station, up to $2,500. For more information, including eligibility requirements, see the Georgia Department of Natural Resources Clean Vehicle Tax Credits website. (Reference Georgia Code 48-7-40.16)

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)

Ethanol Production Incentive

The Ethanol Production Incentive provides qualified ethanol producers with quarterly payments based on production volume during times when ethanol prices are unusually low or, corn prices are unusually high. The incentive amount is based on the average North Dakota wholesale ethanol price for the preceding quarter and the average North Dakota corn price for the preceding quarter. Qualified facilities include ethanol production facilities constructed after July 31, 2003. Ethanol production facilities in operation before July 1, 1995, are eligible to receive incentive payments if their production increases by 10 million gallons or by 50% of production capacity, whichever is less, during any 12-month period.

The total cumulative incentive available to all eligible producers in any single year is $1.6 million. A single eligible facility may not receive payments for longer than 10 years or more than $10 million in incentive payments over the life of the facility. For more information, see the North Dakota Department of Commerce Ethanol Production Incentive website.

(Reference North Dakota Century Code 17-02)

Biodiesel Fuel Use

The Iowa Department of Transportation (IDOT) may purchase biodiesel for use in IDOT vehicles through the biodiesel fuel revolving fund created in the state treasury. The fund consists of money received from the sale of Energy Policy Act of 1992 credits IDOT has banked and other income IDOT has obtained or accepted for deposit in the fund. (Reference Iowa Code 307.20)

Alternative Fuel Vehicle (AFV) Demonstration Grant Authorization

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

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

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

(Reference Missouri Revised Statutes 414.4365and 414.407)

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)

Deregulation of Compressed Natural Gas (CNG) as a Motor Fuel

The Public Service Commission does not regulate the sale of CNG by producers, pipelines, distribution companies, or other persons when it is to be used as a transportation fuel.

(Reference Louisiana Revised Statutes 45:1163)

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 Mobile Sources Emissions Reductions Grant 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)

Natural Gas Vehicle (NGV) Rebates - Texas Gas Service

The Texas Gas Service Conservation Program offers a rebate of up to $2,000 for the purchase of a qualified NGV or $3,000 for the conversion of a gasoline powered vehicle to operate on natural gas. The rebate is available for up to five vehicles per customer, and only centers certified by the Railroad Commission of Texas may perform conversions. These incentives are available to commercial and residential customers within the city limits of Austin, Bee Cave, Lakeway, Sunset Valley, Rollingwood, West Lake Hills, Cedar Park, and Kyle with specific gas rate codes. For more information, see the Texas Gas Service Rebate Program website.

Pollution Control Equipment Exemption

Dedicated original equipment manufacturer natural gas vehicles and all-electric vehicles are not required to be equipped with a certified pollution control system. (Reference Oregon Revised Statutes 815.300)

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)

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

Compressed natural gas, hydrogen, electric, and plug-in hybrid electric vehicles meeting specified California and federal emissions standards and affixed with a California Department of Motor Vehicles (DMV) Clean Air Vehicle sticker may use HOV lanes regardless of the number of occupants in the vehicle. Purple stickers expire January 1, 2023; orange stickers expire January 1, 2024; blue stickers expire January 1, 2025; and yellow stickers expire September 30, 2025.

Residents with an annual income at or below 80% of California’s median income level may participate in the Income-Based CAV (IB-CAV) Decal Program, which allows used vehicles with previously issued CAV decals to retain eligibility for a CAV decal. IB-CAV decals are valid through January 1, 2024. Additional requirements apply.

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

(Reference California Vehicle Code 5205.5 and 21655.9)

Alternative Fuels Tax

Alternative fuels used to propel vehicles of any kind on public highways are taxed at a rate determined on a gasoline gallon equivalent basis. For more information, including applicable tax rates, see the Pennsylvania Department of Revenue Motor and Alternative Fuel Taxes website. Certain exemptions apply. (Re

(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)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled electrically- or gas-powered vehicle capable of achieving a maximum speed of at least 20 miles per hour (mph) but not greater than 25 mph. The vehicle must comply with safety standards specified in Title 49 of the Code of Federal Regulations, section 571.500. Low-speed vehicles titled and registered with the Virginia Department of Motor Vehicles (DMV) must display designated DMV license plates. Low-speed vehicles may not operate on roads with posted speed limits of more than 35 mph or on roads where the Virginia Department of Transportation or the local governing body has prohibited their use.

(Reference Virginia Code 46.2-100, 46.2-908.2, 46.2-908.3, and 46.2-711)

Biodiesel Definition

Biodiesel is defined as any fuel derived in whole or in part from agricultural products, animal fats, or the wastes from these products, and is suitable for use in diesel engines. A biodiesel blend is defined as any fuel produced by blending biodiesel with petroleum-based diesel to produce a fuel suitable for use in diesel engines.

(Reference Idaho Statutes 63-2401)

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)

Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs may not operate at speeds greater than 25 miles per hour (mph). An NEV may not operate on a roadway with a speed limit greater than 35 mph, except to cross that roadway. NEVs must display a notice of the operational restrictions (either painted or otherwise permanently attached) on the vehicle in a location that is in clear view of the driver.

(Reference Arizona Revised Statutes 28-966 and 28-2157)

Renewable Fuel Labeling Requirement

Biodiesel, biobutanol, and ethanol blend dispensers must be affixed with decals identifying the type of fuel blend. If fuel blends containing more than 10% ethanol are being dispensed, the decal must include the statement: "For Flexible Fuel Vehicles Only." The Iowa Department of Agriculture and Land Stewardship (Department) may approve applications to place a decal in a special location on a pump with special lettering or colors that are clear and conspicuous to the consumer. (Reference Iowa Code 214A.16)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles are only allowed access to roadways with speeds limits of up to 35 miles per hour (mph), must comply with all federal and state motor vehicle regulations, and are required to display a slow-moving vehicle identification emblem on the rear of the vehicle. Low-speed vehicles are defined as four-wheel electric vehicles that are not golf carts or off-road vehicles, operate at speeds up to 25 mph, and may carry up to four passengers. Low-speed vehicles are subject to vehicle taxation requirements, including those related to special fuels and are exempt from emission inspections. (Reference Utah Code 41-6a-102, 41-6a-1508, 59-13-102, and 59-13-201)

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)

Biodiesel Blend Mandate

During the months of April through September, diesel fuel sold in the state must contain at least 20% biodiesel (B20). Diesel fuel sold during the remainder of the year must contain at least 5% biodiesel (B5). From April 1 to April 14, diesel fuel sold in the state can be a lower blend than B20, but not less than 10% biodiesel (B10).

The Minnesota Department of Agriculture, Department of Commerce, and the Pollution Control Agency, in consultation with the Biodiesel Task Force and other technical experts, must submit annual reports regarding the implementation of minimum biodiesel content requirements, including information about the price and supply of biodiesel fuel.

(Reference Minnesota Statutes 239.75 and 239.77)

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)

Biodiesel and Renewable Diesel Sales Equipment Tax Credit

Qualified retailers may be eligible for a corporate income tax credit of 10% of the direct costs incurred to adapt or add equipment to a facility so that it may sell diesel fuel containing at least 2% biodiesel or renewable diesel. A retailer may only claim the credit for up to five years and is limited to $50,000 in cumulative credits for all taxable years. The biodiesel or renewable diesel must meet applicable ASTM standards. (Reference North Dakota Century Code 57-38-01.23)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled electric vehicle capable of achieving a speed of up to 35 miles per hour (mph) that meets the standards in Title 49 of the U.S. Code of Federal Regulations, section 571.500. An individual may not operate a low-speed vehicle on a highway that has a posted speed limit greater than 35 mph. (Reference Indiana Code 9-21-5-8.5 and 9-13-2-94.5)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may only travel on roadways with a posted speed limit of up to 40 miles per hour (mph). A low-speed vehicle is any four-wheeled electric vehicle whose top speed is at least 20 mph but not more than 25 mph and is manufactured in compliance federal standards for low-speed vehicles as referenced in Title 49 of the Code of Federal Regulations, section 571.500. Additional conditions apply.

(Reference Kansas Statutes 8-1488; 8-15,101; 8-1701; and 8-2118)

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)

Electric Vehicle (EV) Parking Space Regulation

An individual is not allowed to stop, stand, or park a motor vehicle within any parking space specifically designated for parking and charging EVs unless the motor vehicle is an EV and has been issued an alternative fuel vehicle special plate or sticker. Violators may be subject to a civil penalty of at least $350.

(Reference Arizona Revised Statutes 28-876)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV may operate at speeds of up to 25 miles per hour (mph) and is only permitted on roadways with speed limits of 25 mph or less. An NEV must have a notice of the operational restrictions pertaining to the vehicle permanently attached to, or painted on, the vehicle in a location that is in clear view of the driver. An NEV is a four-wheeled self-propelled electrically-powered motor vehicle that produces no emissions, has a gross vehicle weight rating of less than 3,000 pounds, and conforms to the minimum safety equipment requirements in Title 49 of the Code of Federal Regulations, section 571.500.

(Reference Hawaii Revised Statutes 286-2, 286-41, and 291C-134)

Medium-Speed and Neighborhood Electric Vehicle (NEV) Definition and Access to Roadways

NEVs and medium-speed electric vehicles are defined as self-propelled, electrically powered four-wheeled motor vehicles. NEVs may reach speeds of at least 20 miles per hour (mph) but not more than 25 mph. Medium-speed electric vehicles may reach speeds of at least 25 mph but not more than 35 mph. NEVs and medium-speed electric vehicles must be in compliance with the national safety standards in Title 49 of the Code of Federal Regulations, section 571.500. NEVs are permitted on roads having speed limits of up to 35 mph. Medium-speed electric vehicles are permitted on roads having speed limits of up to 45 mph in counties consisting of islands that are only connected to the mainland by ferry routes. (Reference Revised Code of Washington 46.04.295, 46.04.357, 46.61.723, and 46.61.725)

Biodiesel Use Requirement

At least 75% of the Missouri Department of Transportation (MoDOT) vehicles and heavy equipment that use diesel fuel must be fueled with biodiesel blends of at least 20% (B20), if such fuel is commercially available. The blended biodiesel fuel will be considered commercially available if the incremental purchase cost compared to conventional diesel fuel is not more than $0.25. To the maximum extent practicable, MoDOT may obtain funding for the incremental cost of the blended biodiesel fuel from the state’s Biodiesel Fuel Revolving Fund.

(Reference Missouri Revised Statutes 414.365 and 414.407)

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)

State Agency Alternative Fuel Use and Vehicle Acquisition Requirement

The Colorado Department of Personnel and Administration (DPA) requires all state-owned diesel vehicles and equipment to be fueled with a diesel blend of 20% biodiesel (B20), subject to the availability of the fuel and so long as the price differential is not greater than $0.10 more per gallon compared to conventional diesel. Biodiesel is defined as fuel composed of mono-alkyl esters of long chain fatty acids derived from plant or animal matter that meets ASTM specifications and is produced in Colorado. DPA must increase the use of alternative fuels and establish objectives to increase its use for each succeeding year. DPA must purchase motor vehicles that operate on compressed natural gas (CNG), electric vehicles, or vehicles that operate on other alternative fuels, subject to the availability of vehicles and adequate fueling infrastructure and assuming the incremental base or life cycle cost of the vehicle is not more than 10% over the cost of a comparable dedicated conventional vehicle. Some vehicles may be exempt from this requirement if available alternative fuel vehicles (AFVs) do not meet application requirements. On or before November 1 of each year, DPA must submit a report to the general assembly outlining vehicle purchases, including alternative fuel and conventional vehicles; alternative fueling infrastructure availability in the state; AFV purchase exemptions; administrative policies in place to facilitate the purchase of AFVs; suggested changes to facilitate the gradual conversion of the motor vehicle fleet to AFVs; and a plan for the necessary infrastructure development.

(Reference Executive Order D 2015-013, 2015 and Colorado Revised Statutes 24-30-1104)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is defined as an electric vehicle that is designed to operate at speeds of up to 25 miles per hour (mph); carries up to four people; has at least four wheels and a gross vehicle weight rating of less than 3,000 pounds; and conforms to the minimum safety equipment requirements as adopted in Title 49 of the (https://www.govinfo.gov/app/collection/cfr)[U.S. Code of Federal Regulations], section 571.500. An NEV may only be used on roads with a posted speed limit of up to 35 mph. The operator of an NEV may cross a highway that has a speed limit of up to 50 mph if the crossing begins and ends on a road authorized for use by NEVs and the intersection has a traffic control signal. The State Traffic Committee or the legislative body of a municipality for town highways may prohibit NEVs from crossing specific intersections in their jurisdiction if the decision is made in the interest of public safety.

(Reference Vermont Statutes Title 23, Chapter 1, Section 4, and Title 23, Chapter 13, Sections 1007a and 1043)

Hybrid Electric Vehicle (HEV) and Electric Vehicle (EV) Acquisition Requirements

The Vermont Department of Buildings and General Services (Department) must, to the extent possible, purchase or lease HEVs or EVs for state use. At least 50% of the vehicles purchased or leased annually must be HEVs or EVs. Beginning July 1, 2021, at least 75% of the vehicles purchased or leased annually must be HEVs or EVs. The Department must acquire the lowest-cost make and model that meets the State’s needs.

(Reference Vermont Statutes Title 29, Chapter 49, Section 903)

Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs are defined as vehicles that can attain a maximum speed of 35 miles per hour (mph) and that must comply with the safety standards in Title 49 of the U.S. Code of Federal Regulations, section 571.500. NEVs may only be used on roadways that have a posted speed limit of 45 mph or less except to cross at an intersection. A county, municipality, or the Texas Department of Transportation may prohibit the operation of NEVs on a street or highway if the governing body determines that the prohibition is necessary in the interest of safety. (Reference Texas Statutes, Transportation Code 551.301-551.304)

Diesel Fuel Blend Tax Exemption

The biodiesel or ethanol portion of blended fuel containing taxable diesel is exempt from the diesel fuel tax. The biodiesel or ethanol fuel blend must be clearly identified on the retail pump, storage tank, and sales invoice in order to be eligible for the exemption. (Reference Texas Statutes, Tax Code 162.204)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may only be used on roads that have a posted speed limit of up to 35 miles per hour (mph), but may cross a highway with a posted speed limit greater than 35 mph. The low-speed vehicle must be equipped with safety equipment as specified in Title 49 of the Code of Federal Regulations, section 571.500, and must be registered with the Louisiana Office of Motor Vehicles.

(Reference Louisiana Revised Statutes 32:300.1)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may only be used on roadways with posted speed limits of up to 35 miles per hour. Low-speed vehicles must be registered, carry a special license plate, and meet specified state and federal safety equipment requirements.

(Reference Title 29-A, Sections 501, 1925, and 2089)

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 and 105-449.130)

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)

Biofuels Tax Exemption

Through December 31, 2023, a sales and use tax of 6.25% applies to 100% of the proceeds from the sale of fuel blends containing 10% ethanol (E10) and fuel blends containing between 1% and 10% biodiesel (B1-B10). If at any time the sales and use tax is 1.25%, the tax on biodiesel blends will apply to 100% of the proceeds of sales.

Sales and use taxes do not apply to the proceeds from the sale of biodiesel blends containing between 11% and 99% biodiesel (B11-B99) or fuels containing between 70% and 90% ethanol (E70-E90). Taxes will apply to 100% of the proceeds from the sale of biodiesel and ethanol fuel blends made after December 31, 2023.

(Reference 35 Illinois Compiled Statues 120/2-10, 105/3-10, and 105/3-44)

Biofuels Preference for State Vehicle Procurement

When awarding contracts that require vehicle procurement, state agencies may give preference to an otherwise qualified bidder who will fulfill the contract through the use of vehicles powered by ethanol produced from Illinois corn or biodiesel produced from Illinois soybeans.

(Reference 30 Illinois Compiled Statutes 500/45-60)

Neighborhood Electric Vehicle (NEV) Access to Roadways

A NEV is defined as a four-wheeled electric motor vehicle that has a maximum speed of at least 20 miles per hour (mph) but not more than 25 mph and complies with the federal requirements specified in Title 49 of the Code of Federal Regulations, section 571.500. NEVs may only be used on roads with speed limits of up to 35 mph, though NEVs may cross roads or highways with greater speed limits at intersections or permitted crossing points. A local authority or the New Mexico Department of Transportation may prohibit the operation of NEVs on any road under its jurisdiction if the governing body determines that the prohibition is necessary in the interest of safety. (Reference New Mexico Statutes 66-1-4.12 and 66-3-1103)

Biodiesel Tax

Biodiesel and biodiesel blends are taxed at the state motor fuel excise tax rate of $0.28 per gallon. Beginning the fiscal quarter after which a biodiesel production facility in the state reaches a name plate capacity of at least 20 million gallons per year and fully produces at least 10 million gallons of biodiesel within one year, the tax on biodiesel and biodiesel blends is reduced to $0.26 per gallon. Biodiesel is defined as a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats. Biodiesel must meet the requirements of ASTM Standard D6751 and the U.S. Environmental Protection Agency registration and health effects testing program, as written January 1, 2008. Biodiesel blends are defined as blended special fuel containing a minimum of 5% biodiesel (B5). (Reference South Dakota Statutes 10-47B-3 through 10-47B-10)

Biodiesel Storage Regulations

Underground storage tank (UST) regulations apply to all biodiesel blends with the exception of 100% biodiesel (B100). If a UST owner increases the percentage of biofuel in a petroleum UST, they must prove that all UST materials are compatible with that product. UST owners must submit an Alternative Fuel Installation or Conversion Checklist when the percentage of ethanol in gasoline is greater than 10% or the biodiesel percentage in diesel is greater than 20%. For more information, see the Department's Biodiesel in Underground Storage Tanks fact sheet. (Reference Washington Administrative Code 173-360)

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)

Fuel-Efficient Vehicle Acquisition Requirements

The Maine State Purchasing Agent may not purchase or lease any car or light-duty truck for use by any state department or agency unless the car or truck has a manufacturer’s estimated highway mileage rating of at least 45 miles per gallon (mpg) or 35 mpg, respectively. Cars and light-duty trucks purchased for law enforcement and other special use purposes the State Purchasing Agent designates are exempt from this requirement.

(Reference Maine Revised Statutes Title 5, Section 1812-E)

Ethanol and Biodiesel Tax Exemption

Motor fuels sold to an ethanol or biodiesel production facility and motor fuels manufactured at and sold from an ethanol or biodiesel facility are exempt from certain motor fuel tax laws enforced by the Motor Fuels Division of the Nebraska Department of Revenue. (Reference Nebraska Revised Statutes 66-489 and 66-496)

Low- and Medium-Speed Vehicle Access to Roadways

A low-speed vehicle is any four-wheeled electric vehicle, excluding golf carts, that achieves speeds of at least 20 miles per hour (mph) but not more than 25 mph. Low-speed vehicles may access roadways with speed limits of up to 35 mph. A medium-speed vehicle is any four-wheeled electric or gasoline vehicle that has a maximum speed of over 30 mph, but not more than 35 mph. Medium-speed vehicles may not operate on interstate highways. Low- and medium-speed vehicles must comply with the safety standards in Title 49 of the Code of Federal Regulations, section 571.500.

(Reference Tennessee Code 55-8-101 and 55-8-191)

Biofuels Use Requirement

State-owned diesel-powered vehicles and equipment must use a biodiesel blend that contains at least 2% biodiesel (B2), where available, as long as the price of the biodiesel blend is not more than $0.10 per gallon as compared to the price of diesel fuel. Individuals operating state-owned motor vehicles must purchase fuel blends containing at least 10% ethanol (E10), as long as these fuel blends are not more than $0.10 per gallon as compared to the price per gallon of regular gasoline fuel.

(Reference Kansas Statutes 75-3744a)

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)

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

The Connecticut LEV Program requires that all new vehicles sold in Connecticut meet California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations. These regulations apply to new vehicles with a gross vehicle weight rating of up to 14,000 pounds. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. Beginning July 1, 2022, these regulations may apply to medium- and heavy-duty vehicles. For more information, see the Connecticut LEV Program website.

(Reference Senate Bill 4, 2022, Connecticut General Statutes 22a-174g, and Reference Regulations of Connecticut State Agencies 22a-174-36b)

Biodiesel Tax Exemption

Biodiesel is exempt from the $0.34 per gallon state motor fuel tax. Biodiesel may be blended with other fuel for use in motor vehicles, but only the biodiesel portion of the blended fuel is exempt. Biodiesel is defined as fuel that is derived from vegetable oils or animal fats and conforms to ASTM Standard D6751 specifications for use in diesel engines and results in employment at a manufacturing facility for biodiesel fuel. Biodiesel must be produced at a manufacturing facility in Rhode Island.

(Reference Rhode Island General Laws 31-36-1(6))

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled vehicle with a maximum speed of 25 miles per hour (mph) that is manufactured in compliance with safety standards specified in Title 49 of the Code of Federal Regulations, section 571.500. A low-speed vehicle may not operate on a street or highway with a posted speed limit greater than 35 mph. (Reference Missouri Revised Statutes 304.029)

(Reference Missouri Revised Statutes 304.029)

Neighborhood Electric Vehicle (NEV) Access to Roadways

A NEV is any four-wheel electric vehicle capable of achieving a top speed between 20 and 25 miles per hour (mph) and complies with the federal equipment and safety standards in Title 49 of the U.S. Code of Federal Regulations, section 571.500. NEVs may only operate on roads that have a posted speed limit of 35 mph or less, but are not restricted from crossing roadways with speeds limits greater than 35 mph.

(Reference New Hampshire Revised Statutes 259:66-b, 265:158, and 266:114)

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 through 207.809)

Zero Emissions Vehicle (ZEV) Tax Exemption

ZEVs sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption does not apply to partial ZEVs, including plug-in hybrid electric vehicles. ZEVs are defined as vehicles that meet California Air Resources Board zero emission standards for that model year. For a list of qualified ZEV, see the New Jersey Department of the Treasury ZEV Sales Tax Exemption website.

(Reference New Jersey Statutes 54:32B-8.55)

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

New Jersey has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. Under the state’s LEV program, the New Jersey Department of Environmental Protection allows manufacturers who sell or lease qualified LEVs to earn and bank vehicle equivalent credits. For more information, see the New Jersey Department of Environmental Protection LEV Program website.

(Reference New Jersey Administrative Code 7:27-29.1 through 7:27-29.14)

Heavy-Duty Truck Idle Reduction Requirement

A driver of a diesel-fueled vehicle with a gross vehicle weight rating of more than 10,000 pounds may not idle the vehicle’s primary engine for more than five consecutive minutes at any location, and is not allowed to operate a diesel-fueled auxiliary power system (APS) on the vehicle for more than five minutes when located within 100 feet of a restricted area. Exceptions apply in certain situations and for certain vehicles. Any internal combustion APS used in California must comply with applicable state off-road and/or federal non-road emissions standards and test procedures for its fuel type and power category to ensure that emissions do not exceed the emissions of a truck engine operating at idle. Model Year 2008 and newer heavy-duty diesel engines must be equipped with non-programmable engine shutdown systems that automatically shut down the engine after five minutes of idling or optionally meet a stringent nitrogen oxide idling emissions standard. A heavy-duty diesel engine certified for optional idling emissions standards must have a “certified clean idle” label, issued by the engine manufacturer, affixed permanently on the driver’s side hood of the truck. Similarly, off-road diesel engine APSs fitted with a proper, verified level 3 diesel particulate filter must have a “verified clean APS” label, issued by the APS manufacturer, affixed permanently on the driver’s side hood of the truck.

Operators of trucks equipped with sleeper berths are required to shut down the engine manually when idling more than five minutes at any location within California and are subject to fines for violation. The California Department of Motor Vehicles will not register, renew, or transfer registration for any vehicle operator who has received a violation until the violation is cleared.

For more information, see the California Air Resources Board Heavy-Duty Vehicle Idling Emission Reduction Program website.

(Reference California Code of Regulations Title 13, Section 2485)

Idle Reduction Requirement at Schools

A school bus driver must turn off the engine upon stopping at a school, or within 100 feet of a school, and may not turn the engine on more than 30 seconds before departing from the location. When the bus is at least 100 feet away from a school, the driver may not idle the engine for more than five consecutive minutes, or for periods totaling more than five minutes during any one hour period. Transit and commercial vehicle operators may not idle for more than five consecutive minutes at each stop within 100 feet of a school, or for periods totaling more than five minutes during any one hour period. Exemptions apply for necessary idling while stopped in traffic, at traffic signals, and at the direction of law enforcement personnel. For more information, see the California Air Resources Board School Bus Idling Airborne Toxic Control Measure website.

(Reference California Code of Regulations Title 13, Section 2480)

Low-Speed Electric Vehicle (EV) Access to Roadways

A low-speed EV, also known as a neighborhood electric vehicle, is defined as a motor vehicle with four wheels, a gross vehicle weight rating of 3,000 pounds or less, and capable of achieving a minimum speed of 20 miles per hour (mph) and a maximum speed of 25 mph. Low-speed EVs are subject to all provisions applicable to a motor vehicle and must meet federal safety standards established in Title 49 of the Code of Federal Regulations, section 571.500. Drivers of low-speed EVs must comply with all provisions applicable to drivers of motor vehicles. The operator of a low-speed EV may not operate the vehicle on any roadway with a posted speed limit greater than 35 mph except to cross a roadway at an intersection.

(Reference California Vehicle Code 385.5 and 21250-21266)

Alternative Fuel Vehicle (AFV) Rebate

The Pennsylvania Department of Environmental Protection (DEP) AFV Program offers rebates to assist eligible residents with the cost of the purchase or lease of new or qualifying pre-owned AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), compressed natural gas (CNG) vehicles, electric motorcycles, and propane vehicles. Applicants must meet income eligibility requirements for the program and eligible AFV purchase price not exceed $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 DEP 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)

Natural Gas Metering

Individuals who use natural gas for residential or other tax-free purposes may not use natural gas in motor vehicles unless the natural gas is obtained through a separate meter which the alternative fuels supplier installed for such purposes. (Reference Arkansas Code 26-62-203)

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)

Idle Reduction Requirement

Motor vehicles licensed for commercial or public service may not idle for more than three minutes in commercial or residential urban areas, unless the engine is providing auxiliary power for purposes other than heating or air conditioning. Tour buses and diesel vehicles are not permitted to idle for more than 10 minutes.

(Reference Virginia Administrative Code 9-5-40-5670(C))

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is defined as a self-propelled, electrically-powered, four-wheeled motor vehicle that does not produce emissions and conforms to the definition and requirements for low-speed vehicles specified in Title 49 of the Code of Federal Regulations, section 571.500. An NEV must be titled, registered, and insured according to state law and may only be operated by a licensed driver. NEVs may not be driven on any highway with a speed limit greater than 35 miles per hour (mph), or across any highway with a speed limit greater than 45 mph.

(Reference Idaho Statutes 49-123, 49-402, and 49-663)

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)

Biofuels Production Tax Deduction

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

Compressed Natural Gas (CNG) Deregulation

The Kentucky Public Service Commission (Commission) may not regulate the rates, terms, or conditions of service for the sale of CNG to a fueling station, retailer, or to any end-user for use as a motor vehicle fuel. However, transporting, distributing, or delivering natural gas to a CNG retailer or end-user is subject to Commission regulations.

(Reference Kentucky Revised Statutes 278.508)

Biodiesel Production and Blending Tax Credit

Qualified biodiesel producers or blenders are eligible for an income tax credit of $1.00 per gallon of pure biodiesel (B100) or renewable diesel produced or used in the blending process. Re-blending of blended biodiesel does not qualify for the tax credit. The total amount of credits claimed by all biodiesel producers may not exceed the annual biodiesel tax credit cap of $10 million. Unused credits may not be carried forward. For the purpose of this credit, biodiesel must meet ASTM Standard D6751, and renewable diesel is defined as a renewable, biodegradable, non-ester combustible liquid derived from biomass resources that meets ASTM Standard D975.

(Reference Kentucky Revised Statutes 141.422 to 141.424)

Idle Reduction Requirement

A motor vehicle engine may not operate for more than five consecutive minutes when the vehicle is not in motion, with the following exceptions: 1) when traffic conditions or mechanical difficulties do not allow the vehicle to operate; 2) when it is necessary to operate heating, cooling or auxiliary equipment installed on the vehicle; 3) to bring vehicle to manufacturer’s recommended operating temperature; or 4) if idling is necessary to accomplish the intended use of the vehicle.

(Reference Maryland Statutes, Transportation Code 22-402)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled electric vehicle that has a maximum speed capability of 20 miles per hour (mph) to 25 mph. A low-speed vehicle must be registered with the Maryland Motor Vehicle Administration and comply with federal safety standards contained in Title 49 of the Code of Federal Regulations, section 571.500. The State Highway Administration or any local authority may prohibit the use of low-speed vehicles on any controlled access highway in its jurisdiction. Low-speed vehicles are only permitted on highways with a speed limit of up to 30 mph, but may, except in certain situations, cross highways for which the maximum speed limit exceeds 45 mph if the intersection is controlled by a traffic light or a four-way stop sign.

(Reference Maryland Statutes, Transportation Code 11-130.1, 21-313, 21-1125, and 22-101)

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)

Natural Gas Tax

Compressed natural gas (CNG) and liquefied natural gas (LNG) used as motor fuel must be sold in gasoline gallon equivalents (GGE) or diesel gallon equivalents (DGE). A GGE of CNG is equal to 5.66 pounds (lbs.) and a DGE of LNG is equal to 6.06 lbs.

Operators of motor vehicles capable of using natural gas must pay an annual flat rate privilege tax if the vehicle has a gross vehicle weight rating (GVWR) of 10,000 lbs. or less. Natural gas vehicles (NGVs) with a GVWR greater than 10,000 lbs. are subject to privilege taxes charged per hundred cubic feet of CNG and per diesel gallon equivalent of LNG; operators must prepay a portion of this tax annually. The Mississippi Department of Revenue may require the operator of five or more NGVs to pay the tax on all fuel purchased for any purpose; in this case, the fuel distributor will collect the excise tax at the time of sale or delivery. Distributors of natural gas for use in motor vehicles must also pay a privilege tax. Taxes on distributors and utilities do not apply to sales or deliveries made to persons who hold permitted compressed gas user’s decals.

(Reference Mississippi Code 27-59-11 and 75-27-114)

Biodiesel and Renewable Diesel Blender Tax Credit

A licensed fuel supplier who blends biodiesel or renewable diesel with diesel fuel may claim an income tax credit of $0.05 per gallon for fuel containing at least 5% biodiesel or renewable diesel. The tax credit may not exceed the taxpayer’s liability for the taxable year and each year’s unused credit amount may be carried forward for up to five taxable years. The biodiesel or renewable diesel must meet applicable ASTM standards. (Reference North Dakota Century Code 57-38-01.22)

Biofuel Loan Program

The Biofuels Partnership in Assisting Community Expansion (PACE) Loan Program provides an interest buy down of up to 5% below the note rate to biodiesel, ethanol, or renewable diesel production facilities; livestock operations feeding by-products produced at a biodiesel, ethanol, or renewable diesel facility; and grain handling facilities which provide storage of grain used in biofuels production. Qualified biodiesel, ethanol, and renewable diesel production facilities located in North Dakota may receive up to $500,000 of interest buy down for the purchase, construction, or expansion of a production facility, or the purchase or installation of equipment at the facility.

(Reference North Dakota Century Code 17-03)

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)

Biofuels Blend Use Requirement

Whenever possible, governmental entities and state educational institutions must fuel diesel vehicles with biodiesel blends containing at least 2% biodiesel (B2), gasoline vehicles with mid-level ethanol blends between 20% and 73%, and flexible fuel vehicles with E85. This requirement does not apply if such blends are prohibited under federal regulations or have not been approved by the vehicle manufacturer. Additional exemptions apply. (Reference Indiana Code 5-22-5-8, and 21-31-9-3)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may operate on roadways with posted speed limits of up to 35 miles per hour (mph) and may cross streets with posted speed limits greater than 35 mph. (Reference Iowa Code 321.381A)

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)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled motor vehicle, other than an all-terrain vehicle, that is capable of reaching speeds of at least 20 miles per hour (mph) but not greater than 25 mph, has a gross vehicle weight rating of less than 3,000 pounds, and meets the safety standards in Title 49 of the U.S. Code of Federal Regulations, section 571.500. A low-speed vehicle may only operate on secondary highways with a posted speed limit of up to 35 mph but may cross a highway with posted speed limits over 35 mph at an intersection. A low-speed vehicle must be registered and licensed in the same manner as a passenger vehicle and is subject to the same insurance requirements applicable to other motor vehicles. Homemade low-speed vehicles, retrofitted golf carts, or any other similar vehicles do not qualify as low-speed vehicles.

(Reference South Carolina Code of Laws 56-1-10, 56-2-100 to 56-2-130, and 56-5-820)

Idle Reduction Requirement

School bus operators may not idle a school bus engine for more than three consecutive minutes except under the following conditions: uncontrollable traffic conditions or mechanical difficulties; operation of heating, cooling, safety or auxiliary equipment; outdoor temperatures below 20 degrees Fahrenheit; maintenance of a safe temperature for students with special needs; school bus repair; or receipt or discharge of passengers on a public highway or road. An infraction applies to violators of these regulations for the first offense and a fine from $100 to $500 applies for each succeeding offense.

(Reference Connecticut General Statutes 14-277)

Biofuel Quality Inspection and Testing

The Tennessee Department of Agriculture may inspect and test biofuels under the Kerosene and Motor Fuels Quality Inspection Act of 1989.

(Reference Tennessee Code 47-18-1306 and 54-1-136)

Idle Reduction Requirement

Diesel truck or bus engines may not idle for more than 15 consecutive minutes. Exemptions apply to diesel trucks or buses for which the Nevada State Environmental Commission has issued a variance from this requirement, or diesel trucks and buses that are emergency vehicles; are used for removal of snow or to repair or maintain other vehicles; are stopped due to traffic congestion; are undergoing repair or maintenance; produce emissions contained and treated according to State Environmental Commission methods; or must idle to perform a specific task. (Reference Nevada Administrative Code 445B.576)

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.

The state must also prepare an annual report to the governor on compliance with these goals.

(Reference Executive Order 15-17 and Executive Order 05-13, 2005)

Idle Reduction Requirement

The owner or operator of a diesel-powered vehicle must limit the length of time their vehicle remains idle. The limit is based on the outside temperature, as follows: above 32 degrees Fahrenheit, 5-minute limit in any 60-minute period; between 32 and -10 degrees Fahrenheit, 15 minute limit in any 60-minute period; below -10 degrees Fahrenheit, no limit. Certain vehicles are exempt from the regulation, including vehicles in traffic, emergency vehicles, vehicles providing power take-off for refrigeration or lift gate pumps, vehicles idling for required maintenance or diagnostic purposes, and vehicles supplying heat or air conditioning for passenger comfort during transportation.

(Reference New Hampshire Department of Environmental Services, Administrative Rules Env-A 1102.02 and 1102.03)

Electric Vehicle (EV) Title Excise Tax Exemption

Qualified EVs are exempt from the excise tax imposed on an original certificate of title. The original purchaser and subsequent purchasers of the same vehicle are eligible for the excise tax exemption. The District of Columbia Department of Motor Vehicles (DMV) determines which EVs qualify. For more information, including eligible EVs, see the District of Columbia Department of Motor Vehicles website. (Reference District of Columbia Code 50-2201.03(j)(3)(J))

Idle Reduction Requirement

A diesel- or gasoline-powered motor vehicle may not idle for more than three consecutive minutes, except under the following conditions: 1) to operate power takeoff equipment including, but not limited to, cement mixers, refrigeration systems, and delivery vehicles; 2) if it is a private passenger vehicle; or 3) to operate heating equipment for five minutes when the ambient temperature is 32 degrees Fahrenheit or below. (Reference District of Columbia Municipal Regulations Title 20, Chapter 9, Section 900.1)

Low-Speed Vehicle and Medium-Speed Electric Vehicle (EV) Access to Roadways

A low-speed vehicle is defined as a four-wheeled motor vehicle capable of reaching speeds of more than 20 miles per hour (mph) but not more than 25 mph. A low-speed vehicle may not operate on a highway that has a posted speed limit of more than 35 mph. A medium-speed EV is defined as a four-wheeled electric motor vehicle that is equipped with a roll cage or a crushproof body design and is capable of reaching speeds of up to 35 mph. A medium-speed EV may not operate on a highway that has a posted speed limit of more than 45 mph. A city or county may adopt ordinances that allow the operation of low-speed vehicles or medium-speed EVs on city streets or county roads that have posted speed limits greater than 35 mph and 45 mph, respectively. Low-speed vehicles and medium-speed EVs must comply with certain standards contained in Title 49 of the U.S. Code of Federal Regulations, section 571.500. (Reference Oregon Administrative Rules 737-010-0010, and Oregon Revised Statutes 801.331, 801.341, 811.512, and 811.513)

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))

School Bus Idle Reduction Requirement

All local boards of education in North Carolina have adopted idle reduction policies prohibiting school buses from idling unnecessarily on school grounds or warming up for longer than five minutes. For more information, including a sample policy and administrative procedure, see the North Carolina School Boards Association Reduced Idling Materials website.

Idle Reduction Requirement

A gasoline-fueled motor vehicle is not allowed to operate for more than three consecutive minutes when the vehicle is not in motion, with the following exceptions: 1) a vehicle stopped in a line of traffic; 2) a vehicle being inspected by a state or federal motor vehicle inspector; 3) an emergency vehicle operating in an emergency situation; 4) a vehicle being repaired or serviced; 5) a vehicle whose primary or secondary power source is used for a mechanical operation other than propulsion; and 6) a vehicle parked in a non-residentially zoned area with a sleeper berth being used for sleeping or resting. A gasoline bus loading or unloading passengers may idle for 15 consecutive minutes in a 60-minute period.

A diesel-fueled motor vehicle is not allowed to operate for more than three consecutive minutes when the vehicle is not in motion. If the vehicle is not in a parking space equipped with idle reduction electrification technology, the following exceptions apply: 1) a vehicle stopped in a line of traffic; 2) a vehicle whose primary power source is used for a mechanical operation other than propulsion; 3) a vehicle being inspected by a state or federal motor vehicle inspector; 4) an emergency vehicle operating in an emergency situation; 5) a vehicle being repaired or serviced; 6) a vehicle with a sleeper berth that is equipped with a Model Year 2007 or newer engine and/or a functioning diesel particulate filter; and 7) a vehicle that uses a technology designed to reduce engine idling, such as auxiliary or alternate power units, generator sets, or bunk heaters. Additionally, diesel vehicles may idle for 15 consecutive minutes when the vehicle's engine has been stopped for at least three hours if the temperature is below 25 degrees Fahrenheit, and a diesel bus loading or unloading passengers may idle for 15 consecutive minutes in a 60-minute period. Violators will be issued fines.

(Reference New Jersey Administrative Code 7:27-14.3 through 7:27-14.10 and 7:27-15.8)

Provision for Establishment of Hydrogen Program

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

Biodiesel Blend Use Requirement

Any diesel-powered vehicle owned or operated by the state, county or local government, school district, community college, public college or university, or mass transit agency must use a biodiesel blend that contains at least 5% biodiesel (B5) when fueling at a bulk central fueling facility. These entities are required to use B5 where available unless the vehicle engine is designed or retrofitted to operate on a higher percentage of biodiesel or on ultra-low sulfur diesel.

(Reference 20 Illinois Compiled Statutes 689/10 and 625 Illinois Compiled Statutes 5/12-705.1)

Idle Reduction Requirement

A motor vehicle may not idle for more than five consecutive minutes. This regulation does not apply to: 1) vehicles being serviced, provided that operation of the engine is essential to the repair; 2) vehicles delivering or accepting goods or merchandise for which engine assisted power is necessary and substitute alternate power cannot be made available; or 3) vehicles requiring auxiliary power for an associate power need other than movement that cannot be substituted by an alternate power source provided that such operation does not cause or contribute to air pollution. Violators are subject to fines. Local boards of health, local police, and state and federal officials may enforce the state anti-idling law.

(Reference Massachusetts General Laws Chapter 90, Section 16A, and and Department of Environmental Protection Regulations 310 CMR 7.11(1)(b))

Alternative Fuel and Idle Reduction Grants

The Small Business Advantage Grant Program provides matching grants of 80% of project costs, up to $8,000, to enable a Pennsylvania small business to adopt or acquire energy-efficient or pollution prevention processes or equipment. Pennsylvania trucking companies and independent truckers may use the funding to purchase U.S. Environmental Protection Agency SmartWay verified anti-idling technologies. Projects may not begin until applications are approved. Grants are available on a first-come, first-served basis. For more information, see the Small Business Advantage Grant Program website.

Heavy-Duty Zero Emission Vehicle (ZEV) Grant - Sacramento

The Sacramento Emergency Clean Air and Transportation (SECAT) Program provides grants to offset the costs of zero-emission heavy-duty vehicles that reduce on-road emissions within the counties of El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba in California. Eligible projects include the purchase of battery-electric or hydrogen fuel cell trucks, buses, and shuttles. Other advanced technology implementation projects may also qualify. For more information, including current funding opportunities, see the SECAT website. (Reference California Health and Safety Code 44299.50-44299.55)

Fleet Vehicle Procurement Requirements

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

(Reference California Public Resources Code 25725-25726)

Hydrogen Fuel Specifications

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

(Reference California Code of Regulations Title 4, Section 4180-4181)

Heavy-Duty Idle Reduction Requirement

Heavy-duty vehicles with a gross vehicle weight rating greater than 8,500 pounds may not idle for more than five consecutive minutes when the vehicle is not in motion. Exceptions apply, including when idling is necessary due to traffic conditions; to maintain temperatures (under regulation) for passenger comfort; to provide auxiliary power or for maintenance purposes; to recharge batteries in hybrid electric vehicles; for electric vehicles; and for emergency service vehicles.

(Reference New York State Department of Environmental Conservation Regulations Chapter III, Subpart 217-3)

Biodiesel Fuel Use Incentive for Schools

The Wisconsin Department of Public Instruction (DPI) may provide school districts financial aid to cover the incremental cost of purchasing biodiesel to operate school buses, as compared to the cost of petroleum diesel fuel. If in any fiscal year insufficient funds are available to provide school districts with the full amount of reimbursement for which a school district qualifies, DPI will prorate the available funds among the entitled school districts on a per pupil basis. For more information, see the Wisconsin Public Service Commission’s Office of Energy Innovation Funding website.

(Reference Wisconsin Statutes 121.575)

Biodiesel Labeling Requirement

Biodiesel fuel retailers may not advertise or offer for sale fuel labeled as pure biodiesel unless the fuel contains no other type of petroleum product, is registered as biodiesel fuel with the federal government, and meets all applicable ASTM specifications. Retailers also may not sell fuel labeled as a biodiesel blend unless the fuel contains at least 2% pure biodiesel fuel, the blend percentage is identified, and the fuel meets all applicable ASTM standards.

(Reference Wisconsin Statutes 168.14(2)-168.14(3))

Immunity for Misuse of E85

E85 sellers, suppliers, distributors, manufacturers, and refiners are immune from civil liability for personal injury or property damage resulting from a person fueling any vehicle with E85 that is not a flexible fuel vehicle. This includes any vehicle equipped to operate when fueled entirely with E85. This immunity does not apply if an E85 seller, supplier, distributor, manufacturer, or refiner does not display all E85 warning signs that federal or state laws require. (Reference Indiana Code 34-30-24)

E85 Promotion and Education

The Indiana State Department of Agriculture must work with automobile manufacturers to improve awareness and labeling of E85 and must coordinate with the appropriate companies to include E85 fueling stations in updates of global positioning navigation software. (Reference Indiana Code 15-11-2-4)

E85 Definition

E85 is a fuel blend nominally consisting of 85% ethanol and 15% gasoline by volume that meets ASTM specification D5798. (Reference Indiana Code 6-6-1.1-103)

Biodiesel Definition

Biodiesel is defined as a renewable, biodegradable fuel derived from agricultural plant oils or animal fats that meet ASTM specification D6751. Blended biodiesel is a blend of biodiesel with petroleum diesel fuel so that the volume percentage of biodiesel in the blend is at least 2% (B2). (Reference Indiana Code 6-6-2.5-1.5)

Renewable Fuel Standard

At least 2% of all diesel fuel sold in Washington must be biodiesel or renewable diesel. This requirement will increase to 5% 180 days after the Washington State Department of Agriculture (WSDA) determines that in-state feedstocks and oil-seed crushing capacity can meet a 3% requirement. Renewable diesel is defined as a diesel fuel substitute produced from non-petroleum renewable sources, including vegetable oils and animal fats, meets the federal registration requirements for fuels and fuel additives and ASTM specification D975.

At least 2% of the total gasoline sold in the state must be denatured ethanol. The ethanol requirement increases if the Washington Department of Ecology determines that this increase will not jeopardize continued attainment of federal Clean Air Act standards, and WSDA determines that the state can economically support the production of higher ethanol blends.

All state agencies with jurisdiction over renewable fuel infrastructure, specifically storage, blending, and dispensing equipment, are required to expedite related application and permitting processes. The governor may suspend these requirements by Executive Order if the standard is temporarily technically or economically infeasible, or poses a significant risk to public safety.

(Reference Revised Code of Washington 19.112.010 and 19.112.110 -19.112.180)

Biodiesel Use Requirement

At least 20% of all diesel fuel used to fuel state agency vehicles, vessels, and construction equipment must be biodiesel. The Washington Department of Enterprise Services (WDES) must assist state agencies by coordinating the purchase and delivery of biodiesel if requested, using long-term contracts if necessary, to secure a sufficient and stable supply of biodiesel. For state agencies complying with the U.S. Environmental Protection Agency's ultra-low sulfur diesel (ULSD) mandate, at least 2% biodiesel (B2) must be used as an additive to ULSD for lubricity, provided that the use of a lubricity additive is appropriate and that performance and cost are comparable with other available lubricity additives. All agencies using biodiesel must submit annual consumption reports to WDES. (Reference Revised Code of Washington 43.19.642 and 43.19.646)

Compressed Natural Gas (CNG) Permit

Individuals or businesses dispensing CNG for use in vehicles must obtain a permit from the Georgia Safety Fire Commissioner and pay a one-time fee of $150. (Reference Georgia Code 25-2-4.1)

Biodiesel Specifications

Biodiesel produced or sold in the state, including for the purpose of blending with petroleum diesel, must meet ASTM Standard D6751. (Reference Georgia Code 10-1-151.1)

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)

State Energy Plan

Virginia Energy is responsible for creating the Virginia Energy Plan (Plan) to assess the commonwealth’s primary energy sources and recommends actions to meet state energy goals. The Plan must include policies to promote alternative fuel use, transportation electrification, efficient driving techniques, and reducing vehicle miles traveled. The Plan must assess statewide electric vehicle (EV) charging infrastructure and consider the impact of statewide policies, EV market projections, and statewide EV registration data to support the state’s 2045 net-zero carbon target in the transportation sector. Virginia Energy must submit the Plan to the governor, the State Corporation Commission, and the General Assembly by October 1 of each year following the election of a new governor. For more information, see the 2018 Virginia Energy Plan, 2022 Virginia Energy Plan, and the Virginia Energy Energy Efficiency website.

(Reference Virginia Code 67-203)

Alternative Fuel Vehicle (AFV) Procurement Preference

In determining the lowest responsible qualified bidder for the award of state contracts, the Connecticut Department of Administrative Services may give a price preference of up to 10% for the purchase of AFVs or for the purchase of conventional vehicles plus the conversion equipment to convert the vehicles to dual or dedicated alternative fuel use. For these purposes, alternative fuels include natural gas, hydrogen, propane, or electricity used to operate a motor vehicle.

(Reference Connecticut General Statutes 4a-59)

Ethanol Labeling Requirement

Any motor vehicle fuel sold at retail containing more than 1% ethanol or methanol must be labeled according to Connecticut Department of Consumer Protection specifications to indicate the percentage of ethanol in the fuel.

(Reference Connecticut General Statutes 16a-15)

Biofuels Procurement Preference

State and county agency contracts awarded for the purchase of diesel fuel must give preference to bids for biofuels or blends of biofuel and petroleum fuel. When purchasing fuel for use in diesel engines, the price preference is $0.05 per gallon of B100. For blends containing both biodiesel and petroleum-based diesel, the preference is applied only to the biodiesel portion of the blend. For the purpose of this requirement, biodiesel is a vegetable oil-based fuel that meets ASTM specification D6751 and biofuel is a fuel from non-petroleum plant- or animal-based sources that can be used for the generation of heat or power.

(Reference Hawaii Revised Statutes 103D-1012)

Alternative Fuel Standard Development

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

Renewable Hydrogen Program

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

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

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

Biofuel Infrastructure Grants

The Renewable Fuels Infrastructure Program provides financial assistance to qualified 70%-85% ethanol (E85) or dual 15% ethanol (E15) and biodiesel retailers. Cost-share grants are available to upgrade or install new E85 or dual E15 and biodiesel infrastructure. Three-year cost-share grants are available for up to 50% of the total cost of the total project, up to $30,000. Five-year cost-share grants are available for up to 70% of the total cost of the project, up to $50,000.

Biodiesel distributors may apply for cost-share grants for infrastructure upgrades and installations at biodiesel terminal facilities. Facilities blending or dispensing blends ranging from 2% biodiesel (B2) to 98% biodiesel (B98) are eligible for up to 50% of the total project, up to $50,000. Facilities blending or dispensing B99 or B100 are eligible for up to 50% of the total project, up to $100,000.

The Renewable Fuels Infrastructure Board receives administrative support from staff within the Iowa Department of Agriculture and Land Stewardship and has the authority to determine the eligibility of applicants. For more information, refer to the Renewable Fuels Infrastructure Program website.

(Reference Iowa Code 159A.13-159A.15)

Biodiesel Blend Retailer Tax Credit

Retailers selling biodiesel blends containing a minimum of 5% biodiesel (B5) are eligible for a state income tax credit of $0.035 per gallon of biodiesel sold. Biodiesel blends containing a minimum of 11% biodiesel (B11) are eligible for a state income tax of $0.055 per gallon sold. The tax credit expires December 31, 2027.

(Reference Iowa Code 422.11P)

Ethanol Blend Mandate

All gasoline offered for sale at retail stations within the state must contain 10% ethanol (E10). This requirement is waived only if a distributor is unable to purchase ethanol or ethanol-blended gasoline at the same or lower price as unblended gasoline. Premium gasoline is exempt from this requirement. Ethanol is defined as fuel that is derived from an agricultural source and that meets ASTM Standard D4806.

(Reference Missouri Revised Statutes 414.255)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles are only permitted on highways with speed limits up to 35 miles per hour (mph) or up to 45 mph in some municipalities or boroughs. Low-speed vehicles may cross highways that have maximum speed limits greater than 35 mph at an intersection with a highway that allows low-speed vehicle use. Operators of low-speed vehicles are subject to all traffic laws and other laws applicable to operators of passenger vehicles, including a biennial registration fee. For purposes of this regulation, a low-speed vehicle is a motor vehicle that has four wheels, can achieve speeds greater than 20 mph but not more than 25 mph, and meets state and federal weight, equipment, and safety requirements.

(Reference Alaska Statutes 28.01.010, 28.35.261, and 28.90.990)

Ethanol Fuel Retailer Tax Credit

Retailers that sell fuel blends of gasoline containing up to 15% ethanol by volume (E15) are eligible for a motor fuel tax credit of $0.016 per gallon of ethanol blended into gasoline and sold in Oklahoma, as long as the retailer provides a price reduction to the purchaser of the ethanol fuel in the same amount. This incentive is effective unless the federal government mandates the use of reformulated fuel in an area within Oklahoma that is in nonattainment with the National Ambient Air Quality Standards. (Reference Oklahoma Statutes 68-500.10-1)

Biofuel Blend Mandate

All gasoline sold or offered for sale in Minnesota must contain at least: - 10% corn-based ethanol by volume or the maximum percent by volume of corn-based ethanol authorized in a waiver issued by the U.S. Environmental Protection Agency (EPA), whichever is greater; or - 10% other biofuel authorized in an EPA waiver by volume, or a biofuel formulation registered by EPA under Title 42 of the Code of Federal Regulations, section 7545.

Biofuel is defined as renewable fuel with an approved fuel pathway under the Energy Policy Act of 2005, as amended under the Energy Independence and Security Act of 2007.

(Reference Minnesota Statutes 239.761 and 239.791)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is an electric vehicle that has three or four wheels and is capable of achieving speeds between 20 miles per hours (mph) and 25 mph on a paved level surface. An NEV must be titled according to state law and may be operated on public streets and highways if it meets all equipment and vehicle safety requirements in Title 49 of the Code of Federal Regulations, section 571.500, and successor requirements. An NEV may not operate on a roadway with a speed limit greater than 35 mph, except to cross that roadway. A road authority may prohibit or further restrict the operation of NEVs on any street or highway under the road authority’s jurisdiction.

(Reference Minnesota Statutes 169.011 and 169.224)

Electric Vehicle (EV) and Natural Gas Vehicle (NGV) Initiatives

All solicitation documents that include the purchase of passenger automobiles issued under the jurisdiction of the Minnesota Department of Administration must assert the intention of the state to begin purchasing all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), neighborhood electric vehicles, and natural gas vehicles (NGVs). For this requirement to apply, vehicles must meet the state’s performance specifications and have a total life-cycle cost of ownership less than or comparable to that of gasoline-powered vehicles.

An EV is defined as a motor vehicle that can be powered by an electric motor drawing current from rechargeable storage batteries, fuel cells, or other portable sources of electrical current, and meets or exceeds applicable requirements in Title 49 of the Code of Federal Regulations, section 571, and future regulations. A PHEV is defined as an EV that contains an internal combustion engine and uses a battery-powered electric motor to deliver power to the drive wheels. When connected to the electrical grid via an electrical outlet, the vehicle must be able to recharge its battery. The vehicle must have the ability to travel at least 20 miles powered substantially by electricity. An NGV is defined as motor vehicle that is capable of being propelled by natural gas, including compressed natural gas and liquefied natural gas.

(Reference Minnesota Statutes 16C.138 and 169.011)

Biodiesel Definition

Biodiesel is a renewable special fuel that is composed of mono-alkyl esters of long chain fatty acids, derived from vegetable oils or animal fats, and meets the requirements of the ASTM Standard D6751.

(Reference New Hampshire Revised Statutes 259:6-a)

Renewable Fuel Standard

Within six months following the point at which monthly production of denatured ethanol produced in Louisiana equals or exceeds a minimum annualized production volume of 50 million gallons, at least 2% of the total gasoline sold by volume in the state must be denatured ethanol. Ethanol is defined an ethyl alcohol that has a purity of at least 99%, exclusive of added denaturants; meets U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and ASTM specification D4806; and is produced from domestic agricultural or biomass products. This requirement will not be effective until six months after the average wholesale price of a gallon of Louisiana-manufactured ethanol, less any federal tax incentives or credits, is equal to or below the average wholesale price of a gallon of regular unleaded gasoline in Louisiana for a period of not less than 60 days, as determined by the Louisiana Department of Agriculture and Forestry (Department).

Within six months following the point at which monthly production of biodiesel produced in the state equals or exceeds a minimum annualized production volume of 10 million gallons, at least 2% of the total diesel sold by volume in the state must be biodiesel produced from domestically grown feedstock. Biodiesel is a fuel comprised of mono-alkyl esters of long chain fatty acids derived from renewable resources and meeting the requirements of ASTM specification D6751, or a diesel fuel substitute produced from non-petroleum renewable resources such as vegetable oils and animal fats that meet U.S. Environmental Protection Agency fuel and fuel additive requirements.

Alternatively, these requirements may be met through the production of an alternate renewable fuel, defined as a liquid fuel that is domestically produced from renewable biomass, can be used in place of ethanol or biodiesel, and meets the definition of renewable fuel in the Energy Policy Act of 2005. Within six months following the point at which cumulative monthly production of an alternate renewable fuel produced in the state equals or exceeds a minimum annual production volume of 20 million gallons, at least 2% of the total motor fuel sold by volume in the state must be the alternate renewable fuel produced from domestically grown feedstock. This requirement may not exceed 2% of the total motor fuel sold by volume by owners or operators of fuel distribution terminals.

Blenders and retailers will have six months to meet the new minimum ethanol, biodiesel, or alternate renewable fuel content requirements, unless the Louisiana Commission of Weights and Measures determines that the quality or supply of ethanol or biodiesel in the state is insufficient or fuel distributors are unable to blend ethanol due to delays in obtaining permits or constructing ethanol blending or storage equipment. Any combination of alternative fuels, including but not limited to denatured ethanol, biodiesel, and alternative renewable fuel may be used to meet these requirements. Fuels containing ethanol or biodiesel will not be required to be sold in ozone nonattainment areas. The Department will adopt rules and regulations requiring incentives to compensate for any costs associated with achieving the minimum ethanol and biodiesel standards. The Department defines domestically grown feedstock to include any feedstock produced in the United States. Because in-state volume requirements are currently being met through the U.S. Renewable Fuel Standard, the state has not implemented any formal procedures to enforce the regulation.

The Louisiana Legislature encourages in-state restaurants to provide their waste fats, oils, and grease to biodiesel production facilities and store their waste fats, oils, and grease in a manner that facilitates the use of these products in a biodiesel production facility

(Reference Louisiana Revised Statutes 3:4674, 3:4674.1, and 3:3712)

Biofuels Feedstock Requirements

The minimum percentage of Louisiana-harvested corn and soybeans used to produce renewable fuel in Louisiana facilities must be at least the same percentage of corn and soybeans used nationally to produce renewable fuel as reported by the U.S. Department of Agriculture’s Office of the Chief Economist. To ensure that the appropriate amounts of Louisiana-harvested feedstocks are available for renewable fuel production, renewable fuel manufacturing facilities are responsible for communicating their anticipated production levels and specific feedstock requirements to the Department of Agriculture and Forestry 180 days before the start of commercial operation and on an annual basis thereafter. Additionally, all renewable fuel manufacturing plants must provide an annual report to the state that includes certification that the plant has purchased Louisiana feedstock; production levels; the amount, type, and origination of feedstock used; and any financial benefits the state has provided, including grants, financing, and exemptions.

(Reference Louisiana Revised Statutes 3:3712)

Alternative Fuel Vehicle (AFV) Tax Exemption Authorization - Warren

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

(Reference Rhode Island General Laws 44-34-14)

Idle Reduction Requirement

Motor vehicles may not idle unnecessarily for longer than five consecutive minutes during any 60-minute period. This includes heavy-duty diesel vehicles used to perform any state public works contracts. Unnecessary idling does not include circumstances exempted by regulations the Rhode Island Department of Environmental Management (DEM) has adopted, such as when it is necessary to operate heating and cooling equipment to ensure the health or safety of drivers and passengers. Other vehicles exempt from these requirements include, but are not limited to, the following:

• Emergency response, public safety, or military vehicles
• Armored vehicles being loaded or unloaded
• Non-road vehicles
• Vehicles making deliveries of fuel or energy products.

Violators of these regulations will be fined up to $100 for the first offense and up to $500 for each succeeding offense.

(Reference Rhode Island General Laws 23-23-29.2, 31-16.1 and 31-41.1-4)

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

Rhode Island has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. These regulations apply to passenger vehicles, light-duty trucks, and medium-duty vehicles. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements.

(Reference Rhode Island Department of Environmental Management Regulation Chapter 12-05-37)

Fuel Exclusivity Contract Regulation

Motor fuel franchise dealers may obtain alternative fuels from a supplier other than a franchise distributor. Any franchise provision that prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, or compressed natural gas from a firm or individual other than the distributor is null and void as it pertains to that particular alternative fuel if the distributor does not supply or offer to supply the dealer with the alternative fuel. Distributors who violate the law by entering into exclusivity contracts will be subject to a $1,000 fine. If the distributor does offer alternative fuels, they may require the station to use their brands. (Reference New York General Business Law 199-j)

Low-Speed Vehicle Definition

A low-speed vehicle is defined as a limited use automobile or truck that has a maximum speed greater than 20 miles per hour (mph) but not more than 25 mph and has a gross vehicle weight rating less than 3,000 pounds. All low-speed vehicles must comply with the safety standards established in Title 49 of the U.S. Code of Federal Regulations, section 571.500. (Reference New York Vehicle and Traffic Law 121-f)

E85 Fuel Exclusivity Contract Regulations

Any motor fuel franchisor must provide for the delivery of E85 as requested by the motor fuel dealer or allow the franchisee to purchase E85 from another source. (Reference Iowa Code 323A)

Hydrogen Production and Retail Requirements

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

(Reference Michigan Compiled Laws 290.642 through 290.647)

Biodiesel Retail and Storage Requirements

All biodiesel and biodiesel blends sold in Michigan must meet state fuel quality requirements, including ASTM D6751 specification. A refiner, distributor, or retailer cannot transfer or dispense biodiesel or biodiesel blends unless the fuel is visibly free of undissolved water, sediments, and other suspended matter. Additionally, a biodiesel retailer may not sell biodiesel or biodiesel blends drawn from a storage tank that has more than two inches of water or water-alcohol at the bottom. Any retailer of biodiesel or biodiesel blends must obtain a license from the Michigan Department of Agriculture for each operating retail location.

(Reference Michigan Compiled Laws 290.644a and 290.642 through 290.647)

Emissions Reductions Grants

The Carl Moyer Memorial Air Quality Standards Attainment Program (Program) provides incentives to cover the incremental cost of purchasing engines and equipment that are cleaner than required by law. Eligible projects include heavy-duty fleet modernization, light-duty vehicle replacements and retrofits, idle reduction technology, off-road vehicle and equipment purchases, and alternative fuel and electric vehicle infrastructure projects. The Program provides funds for significant near-term reductions in nitrogen oxide emissions, reactive organic gases, and particulate matter emissions. Funding is available until January 1, 2024. The California Air Resources Board, in consultation with local air districts, must convene working groups to evaluate the Program’s policies and goals.

(Reference California Health and Safety Code 44275-44299.2)

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))

Electric Vehicle (EV) Charging Rate Reduction - SCE

Southern California Edison (SCE) offers a discounted electricity rate to customers that own or lease an EV. Two rate schedules are available for EV charging during on- and off-peak hours. For more information, see the SCE EV Plans website.

Idle Reduction Requirement

A person that operates a diesel powered motor vehicle with a gross vehicle weight rating (GVWR) of less than 8,000 pounds may not cause or allow the motor vehicle, when it is not in motion, to idle for more than a total of 10 minutes within any one-hour period. If the vehicle is waiting to weigh, load, or unload cargo or freight, it may idle for up to 30 minutes within any one-hour period. Applicable areas include the counties of Cook, DuPage, Lake, Kane, McHenry, Will, Madison, St. Clair, and Monroe, and the townships of Oswego (Kendall County) and Aux Sable and Goose Lake (Grundy County, as well as any other county with more than 3 million people but outside a municipality with less than 2 million people when within 200 feet of a residential area). Exceptions apply, including those pertaining to emergency vehicles, vehicle weight, traffic, auxiliary power unit use, remote starter systems, school buses, outside temperature, and more.

(Reference 625 Illinois Compiled Statutes 5/11-1429)

State Vehicle Fuel Economy Requirements

State contracts for the purchase or lease of new passenger automobiles must require the procurement of vehicle models that, according to the most current ratings published by the U.S. Environmental Protection Agency, can achieve at least the minimum average fuel economy in miles per gallon as specified in the federal Corporate Average Fuel Economy requirements. This requirement does not apply to station wagons, vans, four-wheel drive vehicles, and emergency vehicles. Additionally, the Chief Procurement Officer may make exemptions when there is a demonstrated need for a vehicle that does not meet the minimum average fuel economy standards.

(Reference 30 Illinois Compiled Statutes 500/45-40)

Idle Reduction Technology Loans

The Arkansas Department of Environmental Quality (ADEQ) provides small business loans to institute pollution control and prevention measures. Idle reduction technologies for heavy-duty trucking applications are eligible. The maximum loan amount is $45,000, with a $65,000 lifetime maximum for one business, with loan terms up to 10 years. An eligible business must employ 100 individuals or less and demonstrate proof of profitability and the ability to repay the loan. For more information, including a loan application, see the ADEQ Environmental Assistance Low-Interest Loans for Small Businesses website.

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)

Vehicle Battery and Engine Research Tax Credits

A corporation involved in qualified research is eligible for a tax credit equal to 11.5% of the qualified research expenses that the corporation incurs in Wisconsin during the taxable year. Qualified research includes, but is not limited to, automotive batteries for use in hybrid electric vehicles that improve the efficiency of electricity use, and research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles. For the purpose of the tax credit, internal combustion engines include fuel cell, electric, and hybrid electric vehicles. Corporations may claim an additional tax credit equal to 5% of the amount paid or incurred during the taxable year to construct and equip new facilities or expand existing facilities used in Wisconsin for qualified research. For more information see the Wisconsin Department of Revenue Research Credits website

(Reference 71.28(4)(ab)(2), 71.28(4)(ad), and 71.28(5)(ad))

Alternative Fuel Tax Refund for Taxis

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

(Reference Wisconsin Statutes 78.75(1m)(a)(1) and 78.75(1m)(b))

Biodiesel Definition

Biodiesel is defined as a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, either in pure form or mixed in any combination with petroleum-based diesel fuel. The definition of biodiesel is expanded for purposes of existing provisions that encourage alternative fuels use in state-owned vehicles.

(Reference Wisconsin Statutes 16.045(1)(c))

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a self-propelled motor vehicle that conforms to the definition and requirements in the Federal Motor Vehicle Safety standards under Title 49 of the Code of Federal Regulations, section 571.500. A golf cart is not considered a low-speed vehicle. The governing body of any municipality may, by ordinance, allow a low-speed vehicle to operate on any roadway within the municipality that has a speed limit of 35 miles per hour or less, regardless of whether the municipality has jurisdiction over the roadway.

(Reference Wisconsin Statutes 349.26 and 340.01(27h))

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)

Ethanol Production Incentive

Montana-based ethanol producers are eligible for a tax incentive of $0.20 per gallon of ethanol produced solely from Montana agricultural products or ethanol produced from non-Montana agricultural products when Montana products are unavailable. If the producer uses non-Montana based agricultural products, the amount of the tax incentive per gallon is reduced proportionately, based on the percentage of non-Montana based agricultural or wood products used in production. The tax incentive is available to a facility for the first six years from the date production begins.

Ethanol eligible for the incentive must be blended with gasoline for sale as ethanol-blended gasoline in Montana, exported from Montana for sale as ethanol-blended gasoline, or used in the production of ethyl butyl ether for use in reformulated gasoline. To receive the tax incentive, an ethanol producer must use at least 20% Montana products to produce the ethanol in the first year of production, must use at least 25% Montana products in the second year of production, and must increase the amount of Montana products by 10% each year thereafter.

(Reference Montana Code Annotated 15-70-522)

Biodiesel and Renewable Production and Blending Equipment Tax Credit

Qualified producers or blenders may be eligible for a corporate income tax credit of 10% of the direct costs incurred to add equipment to retrofit an existing facility or construct a new facility in the state for the purpose of producing or blending diesel fuel containing at least 2% biodiesel or renewable diesel. A taxpayer may only claim the credit for up to five years and is limited to $250,000 in cumulative credits for all taxable years. The biodiesel or renewable diesel must meet applicable ASTM standards. (Reference North Dakota Century Code 57-38-30.6)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled motor vehicle with an unladen weight of 3,000 pounds or less, that is capable of operating at a speed of at least 20 miles per hour (mph) but not greater than 25 mph, and that complies with Title 49 of the U.S. Code of Federal Regulations, section 571.500. Low-speed vehicles may not operate on any roadway with a speed limit greater than 35 mph, except to cross a highway at an intersection. (Reference Nevada Revised Statutes 482.480 and 484B.637)

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)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may only operate on private and public roads and streets where the speed limit is up to 25 miles per hour. All low-speed vehicles must comply with federal safety standards established in Title 49 of the U.S. Code of Federal Regulations, section 571.500. Any person operating a low-speed vehicle must hold a valid driver's license. (Reference West Virginia Code 17A-3-2)

Alternative Fuel and Advanced Vehicle System Manufacturing Incentive

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

Biodiesel Blend Mandate

All diesel fuel sold for use in on-road motor vehicles to state agencies, political subdivisions of the state, and public schools must contain at least 5% biodiesel (B5). All diesel fuel sold to consumers for use in on-road motor vehicles is mandated to contain at least B5. As of October 12, 2022, the biodiesel blend mandate is suspended through April 15, 2023. (Reference New Mexico Statutes 57-19-27 through 57-19-29)

Ethanol Blended Fuel Definition

Ethanol blended fuel, such as gasohol, is defined as any gasoline blended with 10% or more of anhydrous ethanol.

(Reference Idaho Statutes 63-2401)

Ethanol Blend Definition

An ethanol blend is defined as a blended motor fuel containing ethyl alcohol that is at least 99% pure, derived from agricultural products, and blended exclusively with gasoline. (Reference South Dakota Statutes 10-47B-3)

Fuel Quality Standards

The South Dakota Department of Public Safety may authorize fuel quality standards and enforce fuel rules that conform to appropriate ASTM standards, including:

• Standards for the maximum volume percentages of ethanol and methanol in alcohol blended fuels;
• A program and prescribed methods for the inspection and testing of alcohol blended fuels, petroleum products, biodiesel, and biodiesel blends;
• Labeling requirements for devices dispensing alcohol blended fuels, biodiesel, and biodiesel blends;
• Standards setting the specifications and tolerance requirements for petroleum products, biodiesel, and biodiesel blends; and
• Regulations for filtering systems used on devices dispensing alcohol blended fuels.

(Reference South Dakota Statutes 37-2-6)

Ethanol Production Facility Fee

The cost to submit an air quality permit application for an ethanol production plant is $1,000. An annual renewal fee is also required for the duration of the air quality permit. The annual renewal fee includes an administrative fee of $1,000 and an emissions fee equaling $40 per ton of particulate matter, sulfur dioxide, nitrogen oxide, volatile organic compounds, and hazardous air pollutants emitted during the previous calendar year. The annual fee must be paid to the South Dakota Department of Revenue and Regulation by July 31 following the year in which the permit is issued and annually thereafter. (Reference South Dakota Statutes 34A-1-58.1)

Biodiesel Use Requirement

All diesel-powered motor vehicles, light trucks, and equipment owned or leased by a state agency must operate using diesel fuel that contains a minimum of 2% biodiesel (B2). For the purpose of this requirement, biodiesel includes renewable diesel and other renewable, biodegradable mono alkyl ester combustible fuel derived from biomass. The Department of Finance and Administration may grant waivers to the B2 requirement for state agency vehicles if the fuel is not available in certain geographic areas, the fuel price is at least $0.15 more per gallon then the petroleum equivalent, or compliance with the standard is not otherwise economically feasible. (Reference Arkansas Code 15-13-101, 15-13-102, and 15-13-202 to 15-13-203)

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

The Clean Fuel Advanced Technology (CFAT) project provides grant funding to reduce transportation-related emissions for areas in nonattainment with the 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.

Alternative Fuel and Vehicle Production Property Tax Incentive

Alternative fuel production facilities, including biodiesel, biomass, biogas, and ethanol production facilities, may qualify for a reduced property tax rate of 3% of market value. Renewable energy manufacturing facilities, including those manufacturing plug-in electric vehicles or hybrid electric vehicles, also qualify. In addition, temporary property tax rate abatements are available for qualified biodiesel, biomass, biogas, and ethanol production facilities. The tax abatements are available during facility construction and for the first 15 years after the facility begins operation. The total time of the qualifying period may not exceed 19 years. For more information, see the Montana Department of Environmental Quality "Clean and Green" Property Tax Incentives website. (Reference Montana Code Annotated 15-6-157, 15-6-158, and 15-24-3111)

Fuel-Efficient Vehicle Acquisition Requirements

All vehicles purchased for state agency use must meet or exceed the current federal Corporate Average Fuel Economy standard and agencies must develop and implement programs to reduce fuel consumption in agency vehicles. Certain state vehicles are exempt from these requirements. (Reference Montana Code Annotated 2-17-416 and 2-17-417)

Medium-Speed Electric Vehicle (EV) Access to Roadways

A medium-speed EV may operate only on highways with posted speed limits up to 45 miles per hour (mph). A medium-speed EV must be treated as a light-duty vehicle for purposes of titling and registration. A medium-speed vehicle is one that has a maximum speed of 45 mph, a gross vehicle weight rating of 5,000 pounds or less, and complies with Title 49 of the Code of Federal Regulations, section 565. (Reference Montana Code Annotated 61-1-101 and 61-8-377)

Ethanol Fuel Blend Use Requirement

State government agencies and universities owning or operating motor vehicles capable of using ethanol-blended gasoline must take all reasonable steps to ensure that the operators of those vehicles fuel with ethanol-blended gasoline if it is commercially available within the vehicle's operating area and competitively priced as compared to conventional gasoline. (Reference Montana Code Annotated 2-17-414)

Renewable Fuel Retailer Tax Incentive

A licensed retail motor fuel dealer may receive a quarterly incentive from the Kansas Retail Dealer Incentive Fund for selling and dispensing renewable fuels, including biodiesel. A qualified motor fuel dealer is eligible for up to $0.065 for every gallon of renewable fuel sold and up to $0.03 for every gallon of biodiesel sold, if the required threshold percentage is met. The threshold is determined by calculating the percent of total gasoline sales that are renewable fuel or biodiesel. For renewable fuel, the threshold increases incrementally on an annual basis from 10% in 2009 to 25% beginning on January 1, 2024. For biodiesel, the threshold increases incrementally on an annual basis from 2% in 2009 to 25% in 2025. Renewable fuels are defined as combustible liquids derived from grain starch, oil seed, animal fat, other biomass, or produced from a biogas source.

(Reference Kansas Statutes 79-34,171 through 79-34,176)

Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemption

Any diesel vehicle or combination of vehicles equipped with idle reduction technology may exceed the state’s gross and axle weight limits by up to 400 pounds (lbs.) to compensate for the additional weight of the idle reduction technology. Upon request, vehicle operators must be able to provide written proof of the technology’s weight and that the idle reduction technology is fully functional at all times. A vehicle primarily powered by natural gas may exceed the state’s gross vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system and the weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 lbs.

(Reference Kansas Statutes 8-1908, 8-1909, and 8-1917)

E85 Tax Rate and Definition

The minimum motor vehicle fuel tax rate on E85 is $0.17 per gallon, compared to the conventional motor fuel tax rate of $0.24 per gallon. E85 is defined as an alternative fuel that is a blend of denatured ethanol and hydrocarbon and typically contains 85% ethanol by volume, but must contain at least 70% ethanol by volume, and complies with ASTM Standard D5798-99.

(Reference Kansas Statutes 79-3401 and 79-34,141)

School Bus Idle Reduction Pilot Program

As part of the Children’s Environmental Health Project, the Arizona Department of Environmental Quality (ADEQ) administers the School Bus Idling Pilot Program (Program) to reduce bus idling near schools. ADEQ has worked with school districts to develop a draft bus idling policy, which many of the school districts involved in the pilot program have implemented. The Program’s best practices include: having drivers turn off buses upon reaching a school or other location and not turn on the engine until the vehicle is ready to depart; parking buses at least 100 feet from a school air intake system; and posting appropriate signage advising drivers to limit idling near the school. For more information, refer to the ADEQ School Bus Idling Pilot Program 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)

E85 Definition

E85 motor fuel is defined as an alternative fuel that is a blend of ethanol and hydrocarbon, of which the ethanol portion is 75-85% denatured fuel ethanol by volume and complies with the most current ASTM specification D5798. (Reference Revised Code of Washington 19.112.010)

Biodiesel Definition

Biodiesel fuel is defined as a monoalkyl ester of long chain fatty acids derived from vegetable oils or animal fats for use in compression-ignition engines and meets the requirements of the ASTM specification D6751. (Reference Revised Code of Washington 19.112.010 and 43.19.643)

State Electric Vehicle (EV) Charging Infrastructure Availability

Publicly and privately owned EVs may charge at state office locations if the vehicles are used for state business, conducting business with the state, or as commuter vehicles. Additionally, contingent upon funding, the state must install electrical outlets suitable for charging EVs in each of the state’s fleet parking and maintenance facilities as well as every state-operated highway rest stop. The Washington Department of Enterprise Services may report to the governor and the legislature on the amount of electricity consumed and the number of EVs using state-owned charging equipment if it represents a significant cost to the state. (Reference Revised Code of Washington 43.01.250, 43.19.648, and 47.38.075)

Biofuels Production and Distribution Contracts

Conservation districts, public development authorities, municipal utilities, and public utility districts may enter crop purchase contracts to produce, sell, and distribute biodiesel produced from Washington feedstocks, cellulosic ethanol, and cellulosic ethanol blended fuels for utility and public use. Additionally, municipal utilities and public utility districts may produce and distribute biodiesel, ethanol, and ethanol blended fuels. (Reference Revised Code of Washington 35.21.465, 35.92.440, 54.04.190, and 89.08.570)

Alternative Fuel Use Requirement

All state agencies must, to the extent practicable, use 100% biofuels or electricity to operate all publicly owned vehicles. Agencies must prioritize all-electric vehicles (EVs) when leasing or purchasing new vehicles, and all trips that may feasibly use EVs must employ them. For vehicle classes without EV model options, agencies must prioritize the most cost-efficient, low-emission vehicle option available. Agencies may substitute natural gas or propane for electricity or biofuel if the Washington State Department of Commerce (Department) determines that electricity and biofuel are not reasonably available. Practicability and measures of compliance are defined in rules adopted by the Department. The governor has established a cross-agency Governing Council, which must adopt and implement standards, measures, targets, and tools to support agencies in reducing greenhouse gas emissions and prioritizing EV adoption.

In addition, all local government agencies must, to the extent practicable, use 100% biofuels or electricity to operate all publicly owned vehicles. Transit agencies using compressed natural gas and engine retrofits that would void vehicle warranties are exempt from this requirement. To allow the motor vehicle fuel needs of state and local government to be satisfied by Washington-produced biofuels, the Washington Department of Enterprise Services and local governments may contract in advance and execute contracts with public or private producers and suppliers for the purchase of appropriate biofuels. Agencies may substitute natural gas or propane in vehicles if the Department determines that biofuels and electricity are not reasonably available. Practicability and measures of compliance are defined in rules adopted by the Department.

(Reference Executive Order 18-01, 2018, Washington Administrative Code 194-28 and 194-29, and Revised Code of Washington 43.19.647 and 43.19.648)

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

Washington adopted the California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations. The Washington Department of Ecology adopted rules to implement these emissions standards for passenger cars, light-duty trucks, and medium-duty passenger vehicles, known as the Clean Car Law. For more information, see the Washington Clean Car Standards website. (Reference Revised Code of Washington 70.120A.010 and 70.120A.020 and Washington Administrative Code 173-423-010 - 173-423-150)

State Emissions Reductions Requirements

Washington State must limit greenhouse gas (GHG) emissions to achieve the following reductions:

• By 2020, reduce overall GHG emissions in the state to 1990 levels;
• By 2035, reduce overall GHG emissions in the state to 25% below 1990 levels; and
• By 2050, reduce overall emissions to 50% below 1990 levels or 70% below the state's expected emissions that year.

(Reference Revised Code of Washington 70A.45.020)

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)

Biodiesel Blend Tax Exemption

Biodiesel blends of at least 20% (B20) that are used for personal, noncommercial use by the individual that produced the biodiesel portion of the fuel are exempt from the special fuel license tax. The maximum number of gallons of fuel for which the exemption may be claimed is based on the percentage volume of biodiesel in each gallon used. For more information, see the Indiana Department of Revenue Fuel Tax Forms website. (Reference Indiana Code 6-6-2.5-1.5, 6-6-2.5-28, and 6-6-2.5-30.5)

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)

School Bus Idle Reduction Requirement

School bus operators must turn off the bus engine immediately after arriving at a student loading and unloading area located on school grounds and may not start the engine until the bus is ready to leave the school grounds. In addition, operators may not idle the engine for more than five minutes in a 60-minute period on school grounds. Exceptions include periods when the engine is necessary to operate special equipment for disabled persons; to address safety, traffic, health, or emergency concerns; or to service the vehicle.

(Reference Vermont Statutes Title 23, Chapter 13, Section 1282 and Vermont State Board of Education Rules and Practices 6001 through 6005)

Energy Feedstock Program

The Hawaii Department of Agriculture (Department) established the Energy Feedstock Program to promote and support the production of energy feedstock development in Hawaii and to establish milestones and objectives for production of energy feedstock in the state to meet its energy requirements. Energy feedstock includes feedstock used to produce biofuels. For more information, see the Department’s 2017 and 2020 Energy Feedstock Program reports.

(Reference Hawaii Revised Statutes 141-9)

Renewable Fuels Promotion

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

Biofuel Labeling Requirements

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

Low-Speed Vehicle Access to Roadways

A low-speed vehicle, including a neighborhood electric vehicle, is defined as any four-wheeled vehicle that is capable of operating at a speed of at least 20 miles per hour (mph), but not greater than 25 mph. Low-speed vehicle operators must comply with the safety standards in Title 49 of the U.S. Code of Federal Regulations, section 571.500, and Florida Statutes 316.2122, and license the vehicle as required under state guidelines. Seasonal delivery personnel may only use low-speed vehicles during certain yearly timeframes. Additional safety standards and conditions apply. (Reference Florida Statutes 316.2122, 316.2126, 320.01, and 320.0847)

Idle Reduction Technology Loan Program

The Minnesota Pollution Control Agency’s Small Business Environmental Assistance Program provides low-interest loans up to $75,000 to qualified small businesses to finance environmental projects such as capital equipment upgrades that meet or exceed environmental regulations, including idle reduction technologies. For more information, including eligibility requirements, see the Low-Interest Environmental Loans website.

Biodiesel Definition

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 ASTM Standard D6751-11b for pure biodiesel (B100). A biodiesel blend is a blend of diesel fuel and biodiesel fuel (between 6% and 20%) for on-road and off-road diesel vehicle use. Biodiesel blends must comply with ASTM Standard D7467-10. Biodiesel produced from palm oil is not considered biodiesel fuel unless the palm oil is waste oil or grease collected from within the United States or Canada. (Reference Minnesota Statutes 239.761 and 239.77)

(Reference Minnesota Statutes 239.761 and 239.77)

Fuel Dispenser Labeling Requirement

All equipment used to dispense motor fuel containing at least 1% ethanol or methanol must be clearly labeled to inform customers that the fuel contains ethanol or methanol. (Reference Texas Statutes, Agriculture Code 17.051)

Biofuels Tax Exemption

Biodiesel or other biofuels produced by an individual from feedstocks grown on the individual's property and used in the individual's own vehicle are exempt from the state motor fuel excise tax. (Reference Oklahoma Statutes 68-500.4 and 68-500.10)

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.

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled motor vehicle, other than a truck, with a gross vehicle weight rating of less than 2,500 pounds that is capable of operating at a speed of at least 20 miles per hour (mph) but not greater than 25 mph on a paved surface. A low-speed vehicle may not operate on roads with a posted speed limit greater than 35 mph but may cross a highway that has a posted speed limit greater than 35 mph. The vehicle must comply with safety standards contained in Title 49 of the Code of Federal Regulations, section 571.500, and meet state insurance, titling, and registration requirements.

(Reference Delaware Code Title 21, Chapter 21, Subchapter I, Section 2113A)

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)

Biodiesel Blend Distribution Mandate

All state-owned diesel fueling facilities must provide fuel containing at least 5% biodiesel (B5) at all diesel pumps.

(Reference South Carolina Code of Laws 12-63-30)

Hydrogen and Fuel Cell Tax Exemption

The following are exempt from state sales tax: 1) any device, equipment, or machinery operated by hydrogen or fuel cells; 2) any device, equipment, or machinery used to generate, produce, or distribute hydrogen and designated specifically for hydrogen or fuel cell applications; and 3) any device, equipment, or machinery used predominantly for manufacturing, or research and development involving hydrogen or fuel cell technologies.

(Reference South Carolina Code of Laws 12-36-2120(71))

Biodiesel Use in School Buses

The South Carolina Department of Education must fuel state school bus fleets with biodiesel when feasible.

(Reference South Carolina Code of Laws 59-67-585)

Clean School Bus Requirements

Full-size school buses equipped with an engine from Model Year (MY) 1993 or older may not be used to transport school children in Rhode Island. Additionally, provided that there is sufficient federal or state funding, all full-size school buses transporting children in the state must be retrofitted with a closed crankcase ventilation system and either: 1) be equipped with a Level 1, Level 2, or Level 3 emissions control retrofit device that the U.S. Environmental Protection Agency (EPA) or the California Air Resources Board (CARB) has verified; 2) be equipped with a MY 2007 or newer engine; or 3) achieve the same or greater reductions in diesel particulate matter as compared to an alternative fuel, such as compressed natural gas, and be verified by CARB or EPA to reduce diesel particulate matter emissions at a level equivalent to or greater than a MY 2007 or newer engine.

(Reference Rhode Island General Laws 31-47.3-3)

State Agency Alternative Fuel Use Requirement

All Massachusetts agencies must use a minimum of 15% biodiesel (B15) in all on- and off-road diesel engines, provided that the Commonwealth Office of Vehicle Management and other appropriate agencies have determined that a B15 goal is appropriate. Each year, the Executive Office for Administration and Finance and the Massachusetts Department of Energy Resources (DOER) must set minimum percentage requirements for E85 use in state flexible fuel vehicles, depending on the availability of the fuel in the state. Agencies may apply for exemptions from the biodiesel and E85 fuel use requirements if the agencies demonstrate that the alternative fuel is not available within a reasonable distance, cannot be purchased by state vehicle operators through state procurement, or the price of the alternative fuel is cost prohibitive, as determined by DOER.

(Reference Massachusetts Executive Office of Administration and Finance Administrative Bulletin 13, 2006)

Biofuels Production Property Tax Exemption

Property used to produce biofuels, including ethanol and biodiesel, may be eligible for a property tax exemption if it is located in a designated Rural Renewable Energy Development Zone. The Oregon Business Development Department must receive and approve an application from a qualified rural area to designate the area as a Rural Renewable Energy Development Zone. For more information, see the Business Oregon Rural Renewable Energy Development Zone website. (Reference Oregon Revised Statutes 285C.350 through 285C.370)

Renewable Fuels Mandate

All gasoline sold in the state must be blended with at least 10% ethanol (E10). Gasoline with an octane rating of 91 or above is exempt from this mandate, as is gasoline sold for use in certain non-road applications. Gasoline that contains at least 9.2% agriculturally derived ethanol that meets ASTM Standard D4806 complies with the mandate. For the purpose of the mandate, ethanol must meet ASTM Standard D4806. The governor may suspend the renewable fuels mandate for ethanol if the Oregon Department of Energy finds that a sufficient amount of ethanol is not available.

All diesel fuel sold in the state must be blended with at least 5% biodiesel (B5). For the purpose of this mandate, biodiesel is defined as a motor vehicle fuel derived from vegetable oil, animal fat, or other non-petroleum resources, that is designated as B100 and complies with ASTM Standard D6751. Renewable diesel qualifies as a substitute for biodiesel in the blending requirement. In addition, diesel fuel blends sold between October 1 and February 28 may contain additives to prevent congealing or gelling. At any time, the Oregon Department of Energy may request a certificate of fuel analysis for biodiesel sold at any non-retail and wholesale biodiesel dealer.

(Reference Oregon Revised Statutes 646.913 through 646.923 and Oregon Administrative Rules 603-027-0410 and 603-027-0420)

Biodiesel Quality Testing Procedures

Each biodiesel or other renewable diesel producer, distributor, or importer must retain the certificate of analysis for each batch or production lot of B100 sold or delivered in the state for at least one year. The Oregon Department of Agriculture (ODA) or authorized agents may examine these records as necessary. The ODA or authorized agents may also perform on-site testing or obtain samples of biodiesel or other renewable diesel from any producer, bulk facility, or retail location that sells, distributes, transports, hauls, delivers, or stores biodiesel or other renewable diesel. The related testing cost is the responsibility of the business providing the sample. (Reference Oregon Revised Statutes 646.923)

Biofuels Program Impact Studies

The Oregon Department of Energy (ODOE) must conduct periodic impact studies related to the biofuels industry in the state. These studies should evaluate such criteria as: jobs created; current and projected feedstock availability; amount of biofuels blends produced and consumed in the state; cost comparison of biofuels blends and petroleum fuel; environmental impacts; and the extent to which Oregon producers import biofuels or biofuels feedstocks from outside the state. ODOE issued the first Biofuels Impact Study in 2010 and will conduct a study every two years through January 1, 2025. (Reference Oregon Revised Statutes 469B.400)

Alternative Fuel Technology Weight Exemption

A vehicle equipped with a fully functional idle reduction system designed to reduce fuel use and emissions from engine idling may exceed the maximum weight limitations by up to 550 pounds (lbs.) to accommodate the added weight of the idle reduction technology. Any natural gas vehicle or electric vehicle may exceed the limits by up to 2,000 lbs. (Reference Oregon Revised Statutes 818.030)

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

Under the Oregon LEV Program, all new passenger cars, light-duty trucks, and medium-duty vehicles sold, leased, licensed, or delivered for sale in the state must meet California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations. Exemptions may apply. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. The Oregon Department of Environmental Quality (DEQ) must work with the Environmental Quality Commission to maintain consistency with California’s zero ZEV regulation, including any ZEV sales requirement increases. DEQ must also work with the Oregon Department of Justice and take appropriate steps to retain California’s exemption for vehicle standards that are more protective of air quality under the Federal Clean Air Act. For more information, see the Oregon Clean Car Standards website.

(Reference Executive Order 17-21, 2017, Oregon Revised Statutes 468A.360, and Oregon Administrative Rules 340-257)

Bond Exemption for Small Biofuels Suppliers

Fuel blenders or suppliers of ethanol or biodiesel are not required to file a bond with the North Carolina Department of Revenue when the expected motor fuel tax liability is less than $2,000.

(Reference North Carolina General Statutes 105-449.60 and 105-449.72)

Biodiesel Warranty Requirement

All new state government diesel vehicles must have a manufacturer’s warranty that allows the use of biodiesel blends of 20% (B20) in the vehicle. This requirement does not apply if the North Carolina Department of Administration determines that there is no vehicle available that is suited for the intended use and that has a manufacturer’s warranty allowing the use of B20.

(Reference North Carolina General Statutes 20-351.11, 136-28.15, 143-58.4 and 143-341)

Biodiesel Requirement for School Buses

Every school bus capable of operating on diesel fuel must be capable of operating using blends of at least 20% biodiesel (B20). At least 2% of the total volume of fuel purchased annually by local school districts statewide for use in diesel school buses must be a minimum of B20, to the extent that biodiesel blends are available and compatible with the technology of the vehicles and the equipment used.

(Reference North Carolina General Statutes 115C-240(c) and 115C-249(a))

Biodiesel Tax Exemption

An individual who produces biodiesel for use in that individual's private passenger vehicle is exempt from the state motor fuel excise tax. (Reference North Carolina General Statutes 105-449.88)

Renewable and Alternative Fuel Storage Tank Regulations

The Colorado Department of Labor and Employment, Division of Oil and Public Safety, enforces rules concerning the placement of underground and aboveground storage tanks that contain alternative and renewable fuel. For the purpose of these regulations, an alternative fuel is a motor fuel that combines petroleum-based fuel products with renewable fuels; a renewable fuel is a motor vehicle fuel produced from plant or animal products or wastes. (Reference 7 Code of Colorado Regulations 1101-14 and Colorado Revised Statutes 8-20.5-202 and 8-20.5-302)

High Occupancy Vehicle (HOV) Lane Exemption

Through the Clean Pass Program, eligible electric-drive vehicles may use the Long Island Expressway (LIE) HOV lanes, regardless of the number of occupants in the vehicle. Vehicles must display the Clean Pass vehicle sticker, which is available from the New York State Department of Motor Vehicles. To apply for the Clean Pass vehicle sticker, visit the Clean Pass Stickers for HOV Lanes on the LIE website. This exemption expires September 30, 2025. For more information, including a list of eligible vehicles and Clean Pass sticker application instructions, see the Clean Pass Program website.

Heavy-Duty Vehicle Emissions Reduction Grants

The Goods Movement Emission Reduction Program (Program) provides funding for projects that reduce emissions from freight movement in the state, including truck stop electrification infrastructure development and heavy-duty truck replacement, repower, or retrofit. For more information about funding application opportunities, see the Program website.

(Reference California Health and Safety Code 39625-39627.5)

Alternative Fuel and Vehicle Incentives

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

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

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

Low Carbon Fuel Standard

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

(Reference California Code of Regulations Title 17, Section 95480-95490; and California Health and Safety Code 38500-38599)

Biodiesel Production Tax

A private biodiesel producer that produces less than 5,000 gallons of biodiesel annually is subject to the annual state motor fuel tax. The return and payment of taxes for a given year are due by January 20 of the following year. A private biodiesel producer that produces more than 5,000 gallons of biodiesel annually must file returns and make monthly state motor fuel tax payments. The return and payment of taxes are due by the 20th day of each calendar month for the preceding calendar month. A private biodiesel fuel producer is defined as a person who converts biomass materials into biodiesel fuel or blends biodiesel fuel exclusively for personal use and not for sale.

(Reference 35 Illinois Compiled Statutes 505/2, 505/2a, and 505/2d)

Alternative Fuel Labeling Requirement

Vehicles powered by liquefied petroleum gas 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)

Advanced Vehicle Acquisition and Biodiesel Fuel Use Requirement

All gasoline-powered vehicles purchased with state funds must be flex fuel vehicles (FFVs) or fuel-efficient hybrid electric vehicles (HEVs). FFVs are defined as automobiles or light trucks that operate on either gasoline or 85% ethanol (E85) fuel. Fuel-efficient HEVs are defined as automobiles or light trucks that use a gasoline or diesel engine and an electric motor to provide power and that gain at least a 20% increase in combined U.S. Environmental Protection Agency city-highway fuel economy over a comparable conventionally-powered model. Any vehicle purchased with state funds that is fueled with diesel fuel must be certified by the manufacturer to run on 5% biodiesel (B5) fuel.

15% of all vehicles purchased with state funds must be fueled by electricity, natural gas, or liquefied petroleum gas, with the exception of Department of Corrections, Department of State Police patrol, and Secretary of State vehicles. Additional exemptions may apply.

The Chief Procurement Officer may determine that certain vehicle procurements are exempt from these requirements based on intended use or other reasonable considerations such as health and safety of Illinois citizens.

(Reference 30 Illinois Compiled Statutes 500/25-75)

School Bus Idle Reduction Regulations

School bus drivers must turn off bus engines as soon as possible at loading and unloading areas and only restart the engine when it is time to depart. Exceptions include extreme weather conditions and idling in traffic. At bus depots, drivers are required to limit engine warm-up to the time recommended by the engine manufacturer. All school bus drivers in the state receive a minimum of 30 minutes of idling reduction instruction during their annual service training. In addition, school districts must revise bus schedules to maximize efficiency and assign the cleanest buses to the longest routes. For more information, see the Utah State Board of Education Pupil Transportation website and the Utah School Bus Idling Standards.

(Reference Utah Code 41-6a-1308 and and Utah Administrative Code 277-601-1 through 277-601-3)

Biodiesel Production Tax Credit

Qualified biodiesel and green diesel producers are eligible for a tax credit of $0.01 per gallon of biodiesel or renewable diesel fuels produced. This credit is available for producers who generate up to two million gallons of biodiesel or renewable diesel fuel per year. The annual credit may not exceed $5,000, and producers are only eligible for the credit for the first three years of production. The Virginia Department of Mines, Minerals and Energy must certify qualified producers. For more information, see the Virginia Department of Taxation Environmental Credits website.

(Reference Virginia Code 58.1-439.12:02)

Biodiesel and Renewable Diesel Definitions

Biodiesel 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 and meets the requirements of ASTM D6751. Renewable diesel is a fuel produced from non-fossil renewable resources, including agricultural or silvicultural plants; animal fats; residue and waste generated from the production, processing, and marketing of agricultural products, silvicultural products; and other renewable resources; that meets applicable ASTM standards.

(Reference Virginia Code 45.1-394 and 58.1-439.12:02)

Ethanol Fuel Blend Tax Rate

The tax rate on fuel containing ethanol is $0.06 per gallon less than the tax rate on other motor fuels in certain geographic areas. This reduced rate is in effect during months ethanol fuel blends must be sold, transferred, or used to operate motor vehicles to reduce carbon monoxide emissions and attain federal or state air quality standards.

(Reference Alaska Statutes 43.40.010)

Cellulosic Ethanol Production Financing

The Kansas Development Finance Authority may issue revenue bonds to cover the costs of construction or expansion of a biomass-to-energy facility. A qualifying biomass-to-energy facility includes any industrial process plant that uses biomass to produce at least 500,000 gallons of cellulosic alcohol fuel, liquid or gaseous fuel, or other source of energy in a quantity with energy content at least equal to that of 500,000 gallons of cellulosic alcohol fuel. Expansion of an existing biomass-to-energy facility is defined as expansion of the facility’s production capacity by a minimum of 10%.

(Reference Kansas Statutes 74-8949b and 79-32,233)

Flexible Fuel Vehicle (FFV) Acquisition Requirements

State agencies must purchase FFVs unless the desired vehicle model is not available with an E85-capable engine or the incremental cost of the FFV exceeds $250. When leasing motor vehicles, state agencies must lease FFVs unless no such vehicles are available for lease. Certain restrictions apply.

(Reference Kansas Statutes 75-4617)

Idle Reduction Requirement

A commercial vehicle or gasoline powered vehicle may not idle for more than five minutes during any 60-minute period. Exemptions are allowed for the following: 1) a vehicle stopped in traffic or at the direction of a law enforcement official; 2) a vehicle needing auxiliary power for equipment or for climate control to prevent a safety or health emergency; 3) a vehicle being inspected by a state or federal motor vehicle inspector; 4) an emergency vehicle being used in the course of official business; 5) a commercial vehicle using air conditioning or heating during a driver rest period or while waiting to load or unload; and 6) when the ambient outside air temperature is less than zero degrees Fahrenheit. When the outside ambient air temperature is between zero and 32 degrees Fahrenheit, vehicles may idle for up to 15 minutes during a 60-minute period. In addition, a passenger bus my idle for up to 15 minutes during a 60-minute period while passengers are on board. Any owner of a location that is used for loading and unloading of commercial vehicles may not require that vehicles idle for periods longer than 30 minutes while waiting to load or unload at the location. Violators are subject to fines.

(Reference Maine Revised Statutes Title 38, Section 585-L)

Ethanol Production Tax Credit

Qualified ethanol producers are eligible for an income tax credit of $1.00 per gallon of corn- or cellulosic-based ethanol that meets ASTM Standard D4806. The total credit amount available for producers is $5 million for each fuel type in each taxable year. Unused ethanol credits from one ethanol-based cap, such as corn, may be applied to another ethanol-based cap, such as cellulosic, in the same taxable year. Unused credits may not be carried forward. Feedstock eligibility restrictions may apply.

(Reference Kentucky Revised Statutes 141.422 and 141.4242 to 141.4248)

Biofuel Quality Program

The Washington State Department of Agriculture (WSDA) Biofuels Quality Program tests and assesses biofuel quality and quantity to resolve any quality issues before the product reaches the consumer. WSDA samples biofuel throughout the state, monitors and tracks the quality of biofuel, and works with producers and manufacturers to help supply the highest biofuel quality fuel available to consumers. The goal of the program is to create equity in the biofuel marketplace for refiners, suppliers, distributors, and retailers, and protect consumers. (Reference Revised Code of Washington 19.112.005 through 19.112.080)

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

Maryland has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements. The Maryland Department of Environment may adopt regulations to exempt certain vehicles from the program, including motor vehicles sold for registration outside of Maryland and motor vehicles that would be exempt from the LEV program established under California law. For more information, see the Maryland Clean Cars Program website.

(Reference Maryland Statutes, Environment Code 2-1101 through 2-1106)

Idle Reduction Weight Exemption

A motor vehicle equipped with a fully functional idle reduction system designed to reduce fuel use and emissions from engine idling may exceed the state maximum weight limitations by up to 550 pounds to compensate for the added weight of the idle reduction technology. The vehicle operator must provide written certification of the weight of the technology and demonstrate the technology is fully functional. (Reference Washington Administrative Code 468-38-073)

Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemption

Any vehicle or combination of vehicles equipped with idle reduction technology may exceed the state's gross and axle weight limits by up to 400 pounds (lbs.) to compensate for the additional weight of the idle reduction technology. A vehicle primarily powered by natural gas may exceed the state's gross vehicle weight limits by a weight equal to the difference between the average weight of the vehicle with the natural gas tank and fueling system and the average weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 lbs. (Reference New Mexico Statutes 66-7-410)

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)

Idle Reduction Requirement

A vehicle may not idle at a loading zone, parking or service area, route terminal, or other off-street areas, except for the following situations: during adjustment or repair of the engine; during auxiliary equipment operation such as operation of cranes and certain bulk carriers, provided no visible smoke is emitted and the equipment is being used for its intended purpose; during loading and unloading of passengers, not to exceed three minutes; and during engine start-up and cool-down, not to exceed three minutes.

(Reference Hawaii Administrative Rules Title 11, Chapter 60.1-34)

Fuel-Efficient Vehicle Acquisition and Alternative Fuel Use Requirements

When procuring new vehicles under a state purchasing plan, all Florida state agency, state university, community college, and local government fleets must select the vehicles with the greatest fuel efficiency available for a given use class, when fuel economy data is available. Exceptions may be made for emergency responder vehicles if these entities provide documentation. In addition, all state agencies must use ethanol and biodiesel blended fuels when available. State agencies administering central fueling operations for state-owned vehicles must purchase ethanol and biodiesel fuels to use in their vehicle fleet as much as possible. (Reference Florida Statutes 286.29)

Biofuels Promotion

The Florida Department of Management Services (DMS), in coordination with the Florida Department of Transportation (DOT), must conduct an analysis of fuel additives and biofuels DOT uses through its central fueling facilities. The DMS must also encourage other state government entities to analyze transportation fuel usage, including the types and percentages of fuels consumed, and report this information to the DMS. (Reference Florida Statutes 287.16)

Provision for Renewable Fuels Investment

To create jobs and improve the state's general infrastructure, the Florida State Board of Administration may invest up to 1.5% of the net assets of the system trust fund in technology and growth investments of businesses operating in Florida, including businesses related to biofuels, renewable energy, and other related applications. (Reference Florida Statutes 215.47)

E85 Retailer Tax Credit

Retail stations dispensing gasoline fuel blends of E85 for use in motor vehicles may be eligible for a tax credit in the amount of $0.16 per gallon sold. The tax credit expires after December 31, 2027. Eligible taxpayers may also claim the mid-level ethanol blend retailer tax credit for the same tax year.

(Reference Iowa Code 422.11O)

Natural Gas Vehicle and Idle Reduction Weight Exemption

The maximum gross weight for any vehicle fueled primarily by natural gas may exceed the state's gross weight limit by the difference between the weight of the natural gas fueling tank and fueling system and the weight of a comparable diesel fueling tank and fueling system, up to 2,000 pounds per vehicle.

The maximum gross weight limit and axle weight limit for any vehicle or combination of vehicles equipped with idle reduction technology may exceed the state's gross weight limit by up to 550 pounds per vehicle to compensate for the additional weight of the idle reduction technology.

(Reference Nebraska Revised Statutes 60-6,294)

Biodiesel and Ethanol Definitions and Retail Requirements

Commercial biodiesel stock used for biodiesel blends must be at least 99% biodiesel (no more than 1% diesel fuel) and meet ASTM Standard D6751. Biodiesel blends must meet ASTM Standard D975. Biodiesel blends made available for public use at retail locations may not exceed 20% biodiesel (B20), and biodiesel blends containing more than 5% biodiesel (B5) must be labeled as a biodiesel blend at the pump.

Ethanol is defined as nominally anhydrous ethyl alcohol that meets ASTM Standard D4806. Ethanol blends made available for public use at a retail location must be labeled accordingly (e.g., E85).

(Reference Rules of the Tennessee Department of Agriculture 0080-5-12-.01, 0080-5-12-.02, and 0080-5-12-.03)

Medium-Speed Electric Vehicle (EV) Access to Roadways

A medium-speed EV is defined as a four-wheeled motor vehicle powered by electricity that is equipped with a roll cage or a crushproof body design and is capable of achieving a maximum speed of 35 miles per hour (mph) on a paved, level surface. Except with respect to maximum speed, a medium-speed EV must meet or exceed regulations in Title 49 of the Code of Federal Regulations, section 571.500, and successor requirements. A medium-speed EV may not operate on a roadway with a speed limit greater than 35 mph, except to cross that roadway. A road authority may prohibit or further restrict the operation of medium-speed EVs on any street or highway under the road authority’s jurisdiction.

(Reference Minnesota Statutes 169.011 and 169.224)

Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemption

A motor vehicle equipped with idle reduction or emissions reduction technology may exceed the maximum gross vehicle weight and axle weight limits by up to 550 pounds (lbs.) to compensate for the additional weight of the technology.

NGVs may exceed the state’s gross vehicle and axle weight limits by the amount of weight calculated as provided under Code of Federal Regulations Title 23, section 127(s), not to exceed 2,000 lbs.

The vehicle operator must be able to provide documentation or demonstrate that the vehicle meets these requirements.

(Reference Minnesota Statutes 169.824)

Low- and Medium-Speed Vehicle Access to Roadways

A low-speed electric vehicle (EV) is any four-wheeled EV powered by an electric motor that draws current from rechargeable storage batteries or other sources of electric current and whose top speed is greater than 20 miles per hour (mph) but not greater than 25 mph. Low-speed EVs may not operate on streets or highways with posted speed limits greater than 35 mph but may cross a street or highway with a posted speed limit greater than 35 mph.

Idle Reduction Requirement

On-road heavy-duty motor vehicles with a gross vehicle weight rating of greater than 8,500 pounds may not idle for more than three consecutive minutes when the vehicle is stationary. Violators are subject to penalties of up to $500 for each offense. Heavy-duty vehicles subject to this regulation include long-haul and delivery trucks as well as transit and school buses. Emergency fire, rescue, and lifesaving vehicles are exempt. Additional exemptions may also apply.

(Reference Delaware Administrative Code Title 7, Section 1145-5.0)

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 Agency Preference for Alternative Fuel and Advanced Vehicles

State agencies purchasing motor vehicles must give preference to hybrid, plug-in hybrid electric, all-electric, biodiesel, hydrogen, fuel cell, or flexible fuel vehicles when the performance, quality, and anticipated life cycle costs are comparable to other available motor vehicles.

(Reference South Carolina Code of Laws 1-11-310)

Idle Reduction Requirement

Vehicle operators may not idle any commercial diesel vehicle with a gross vehicle weight rating of more than 10,000 pounds for more than 10 minutes in any one-hour period. Exemptions apply for the following: traffic conditions; prevention of safety or health emergencies; emergency or law enforcement; maintenance, service, repair, or diagnostic purposes; state or federal inspections; power work-related operations; loading or unloading; sleeper berth temperature control during 1) rest or sleep periods, 2) times when the ambient outside air temperature is less than 40 degrees Fahrenheit or greater than 80 degrees Fahrenheit, or 3) at rest areas, terminals, truck stops, or legal parking locations greater than 500 feet from homes, schools, hospitals, or daycare facilities. Violators are subject to a $75 fine for each offense. A portion of the fine will go towards the Diesel Idling Reduction Fund operated by the South Carolina Department of Health and Environmental Control to develop an idling awareness program.

(Reference South Carolina Code of Laws 56-35-10 to 56-35-80)

Idle Reduction Requirement

Idling of any unattended vehicle is prohibited in Utah. Violators are subject to a penalty of up to $750 and/or up to 90 days imprisonment. Drivers on state roads are also encouraged to avoid excessive idling, which, as a general rule, is defined as more than 10 to 15 seconds for passenger vehicles. Specifically, drivers are encouraged to turn off engines when loading or unloading, delivering, and picking up or dropping off passengers. Drivers of gasoline powered passenger vehicles are encouraged to limit engine warm-up time to 30 seconds and drivers of diesel powered passenger vehicles, buses, and trucks are encouraged to limit engine warm-up to the time the vehicle manufacturer recommends, which is generally less than five minutes. Businesses, schools, airport authorities, and governmental entities are encouraged to post signs to discourage customer idling. (Reference Utah Code 41-6a-202, 41-6a-1401, 14-6a-1403, 76-3-204, and 76-3-301)

Idle Reduction Requirement

A vehicle may not idle for more than five minutes from April through October in cities and counties where the local government has signed a Memorandum of Agreement with the Texas Commission on Environmental Quality (TCEQ). Exemptions apply for the following: vehicles with a gross vehicle weight rating (GVWR) of 14,000 pounds (lbs.) or less; emergency or law enforcement vehicles; airport ground support vehicles; rented/leased vehicles; to perform needed work, including roadway construction, maintenance and diagnostics; to defrost a windshield; traffic conditions; and hours of service compliance activities. Vehicles may idle for up to 30 minutes for bus passenger comfort or transit operations. Fines vary by jurisdiction.

TCEQ may not prohibit or limit the idling of any vehicle with a GVWR greater than 8,500 lbs. provided that the vehicle is equipped with a 2008 or subsequent model year heavy-duty diesel or natural gas engine that is certified by the U.S. Environmental Protection Agency or another state agency to emit no more than 30 grams of nitrogen oxides per hour when idling.

(Reference Texas Statutes, Health and Safety Code 382.0191; and Texas Administrative Code 30.114.510-30.114.517)

Low Emission Vehicle (LEV) Standards

The Mayor of the District of Columbia adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. The Mayor:

• May adopt, by rule, motor vehicle programs for emissions inspection, recall, and warranty requirements;
• May work in cooperation, and enter into agreements with, other states to administer requirements of the program;
• Must work in conjunction with other states to promote and facilitate the regional adoption of similar LEV programs; and
• Must educate District residents on the requirements of any adopted LEV program.

(Reference District of Columbia Code 50-731)

State Hybrid Electric Vehicle (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)

Biodiesel Blend Purchase Requirement

Diesel fuel that the New Hampshire Department of Transportation (DOT) purchases through the Motor Fuel Inventory Fund must contain at least 5% biodiesel (B5). Compliance with this requirement is at DOT’s discretion only if the fuel is unavailable or more expensive than 100% petroleum diesel. DOT is encouraged to purchase diesel fuel containing up to 20% biodiesel (B20) when the fuel is acceptable for use. DOT may sell the fuel to all state departments and institutions, political subdivisions of the state, eligible non-profit corporations under contract with DOT to transport the general public, and federal government agencies.

(Reference New Hampshire Revised Statutes 228:24-a)

Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemption

Any vehicle or combination of vehicles equipped with fully functional idle reduction technology may exceed the state’s gross and axle weight limits by up to 550 pounds (lbs.) to compensate for the additional weight of the idle reduction technology. To qualify, the vehicle operator must be able to prove the weight of the idle reduction technology with written certification and demonstrate that the idle reduction technology is fully functional at all times.

NGVs may exceed the weight limits by an amount equal to the difference of the weight of the natural gas tank and fueling system and the weight of a comparable diesel tank and fueling system or by up to 2,000 lbs., whichever is less.

(Reference Wisconsin Statutes 348.15(3)(f) and 348.15(3)(h))

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)

Ethanol Blend Requirement

Suppliers that import gasoline for sale in North Carolina must offer fuel that is not pre-blended with fuel alcohol but that is suitable for future blending. Future contract provisions that restrict distributors or retailers from blending gasoline with fuel alcohol are void. (Reference North Carolina General Statutes 75-90 and 105-449.60)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled vehicle that is capable of achieving speeds of up to 20 miles per hour (mph) but not more than 25 mph on a paved surface, is not powered by gas or diesel fuel, and complies with federal safety standards as noted in Title 49 of the U.S. Code of Federal Regulations, section 571.500. A low-speed vehicle may operate on roadways with posted speed of up to 25 mph, or up to 35 mph in a municipality or county that has received a special ordinance or resolution. Additional registration and other requirements apply.

(Reference New Jersey Statutes 39:4-31.1 and 39:4-31.2)

Idle Reduction Requirement

Diesel vehicles with a gross vehicle weight rating over 10,000 pounds may not idle for more than five minutes in any continuous 60-minute period. Exemptions include: uncontrollable traffic conditions; prevention of safety or health emergencies; emergency or law enforcement purposes; verification that a vehicle is safe to operate; vehicle maintenance; power work-related operations; sampling, weighing, or loading; bus passenger comfort; vehicles actively engaged in solid waste or recyclable material collection; vehicles complying with manufacturer specifications; and vehicles meeting California Air Resources Board oxides of nitrogen idling emission standards.

(Reference Title 35 Pennsylvania Statutes, Chapter 23B, Section 4603)

Biofuels Education and Promotion

State agencies, including state-supported universities and colleges, must provide links from their websites to websites containing information on ethanol and biodiesel fuels. The links must connect to websites maintained and operated by state agencies and may also include links to private websites.

(Reference 505 Illinois Compiled Statutes 150/5)

Renewable Fuels Mandate

One year after in-state production has reached 350 million gallons of cellulosic ethanol and sustained this volume for three months, all gasoline sold in Pennsylvania must contain at least 10% cellulosic ethanol. All diesel fuel sold in Pennsylvania must contain at least 2% biodiesel (B2) one year after in-state production of biodiesel reaches 40 million gallons. The mandated biodiesel blend level will continue to increase according to the following schedule:

• 5% biodiesel (B5) one year after in-state production of biodiesel reaches and sustains 100 million gallons for three months;
• 10% biodiesel (B10) one year after in-state production of biodiesel reaches and sustains 200 million gallons for three months; and
• 20% biodiesel (B20) one year after in-state production of biodiesel reaches and sustains 400 million gallons for three months.

(Reference Title 74 Pennsylvania Statutes, Chapter 18H, Sections 1650.3, 1650.4, and 1650.4.1)

Low-Speed Electric Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled vehicle propelled by an electric motor, combustion-driven motor, or a combination of the two and designed to operate at speeds of up to 25 miles per hour (mph). Low-speed vehicles may operate on roads with posted speed limits of up to 35 mph provided that the vehicle has not been modified to increase its speed above the original standard manufactured limit. Low-speed vehicles may only cross roads with posted speed limits above 35 mph if the intersection is equipped with a traffic signal. Low-speed vehicles must display a vehicle identification number; be titled, registered, and insured as motor vehicles; and meet safety standards specified in Title 49 of the Code of Federal Regulations, section 571.500. (Reference Kentucky Revised Statutes 186.010 and 189.282)

(Reference Kentucky Revised Statutes 186.010 and 189.282)

Electric Vehicle (EV) and Compressed Natural Gas (CNG) Rate Reduction - PG&E

Pacific Gas & Electric (PG&E) offers discounted residential time-of-use rates for electricity used to charge EVs during off-peak hours. Discounted rates are also available for CNG or uncompressed natural gas used in vehicle home fueling appliances. For more information, see the PG&E EV Rate Plans and CNG for Vehicles websites.

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)

Compressed Natural Gas (CNG) and Electricity Tax Exemption for Transit Use

CNG and electricity that local agencies or public transit operators use as motor vehicle fuel to operate public transit services is exempt from applicable user taxes a county imposes.

(Reference California Revenue and Taxation Code 7284.3)

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.

Beginning January 1, 2024, DGS must develop criteria to evaluate commercial car rental service contracts based on the number of ZEVs or PHEVs available in the service’s fleet.

(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.

In August 2022, CARB approved LEV IV standards, which updates regulations for light- and medium-duty internal combustion engine vehicles by reducing allowable exhaust emissions and emissions caused by evaporation. LEV IV also changes the calculation procedure for new vehicle fleet-average emissions and prohibits zero emissions vehicles from being considered in fleet-average emissions calculations by MY 2029.

For more information, see the CARB LEV website for more information.

(Reference California Code of Regulations Title 13, Section 1961-1961.3)

Biodiesel Tax Refund

A licensed distributor who pays the special fuel tax on biodiesel may claim a refund equal to $0.02 per gallon of biodiesel sold during the previous quarter if the biodiesel is made entirely from components produced in Montana. Additionally, the owner or operator of a retail motor fuel outlet may claim a refund equal to $0.01 per gallon of biodiesel purchased from a licensed distributor if the biodiesel is made entirely from components produced in the state. Refund requests must be filed on a quarterly basis. (Reference Montana Code Annotated 15-70-433)

Low Emission Vehicle (LEV) Standards

The Pennsylvania Clean Vehicles Program requires that all new passenger cars and light-duty trucks sold, leased, titled, or registered in the Commonwealth must meet California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations, with the exception of the zero emission vehicle sales requirements and the emissions control system warranty statement. For more information, see the Pennsylvania Clean Vehicles Program website.

(Reference Title 25 Pennsylvania Code 126.401-126.451)

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

Vermont has adopted the California motor vehicle emissions standards and compliance requirements specified in Title 13 of the California Code of Regulations. These regulations apply to new vehicles with a gross vehicle weight rating of up to 14,000 pounds. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements.

(Reference Vermont Air Pollution Control Regulations 5-1101 through 5-1109)

Idle Reduction and Alternative Fuel Vehicle Weight Exemption

Any motor vehicle equipped with an auxiliary power unit or other idle reduction technology may exceed the gross, single axle, tandem axle, or bridge formula weight limits by up to 550 pounds (lbs.) to compensate for the added weight of the idle reduction technology. Furthermore, any natural gas or electric vehicle may exceed the limits by up to 2,000 lbs. To be eligible for the weight exemption, certification of the weight of the auxiliary power unit or proof that the vehicle operates on natural gas, and a demonstration that the vehicle is fully functional must be available to law enforcement officials.

(Reference Virginia Code 46.2-1129.1 through 46.2-1129.2)

Natural Gas Rate and Cost Recovery Authorization

The Utah Public Service Commission (Commission) may allow a gas corporation to set a natural gas vehicle fuel rate that is less than full cost of service if it is reasonable and in the interest of the public. If the Commission approves such a request, the remaining costs may be spread to other customers of the gas corporation.

The Commission may also allow a gas corporation to recover expenditures directly related to the construction, operation, and maintenance of natural gas fueling stations and related facilities through an incremental surcharge to all of its rate classes. The Commission may allow this only if it finds that the expenditures are reasonable, do not exceed $5 million in any calendar year, are in the interest of the public, and will result in an annual incremental increase in revenue greater than 50% of the corporation's annual revenue requirement for the stations and facilities.

The Commission may also allow a gas corporation to establish a natural gas incentive or program to support the use of natural gas, including renewable natural gas, if it is reasonable and in the interest of the public. If the Commission approves such a request, the remaining costs may be spread to other customers of the gas corporation.

(Reference Utah Code 54-4-13.1 and 54-4-13.4)

Ethanol Blending Regulation

Gasoline suppliers who provide fuel to distributors in the state must offer gasoline that is suitable for blending with fuel alcohol. Suppliers may not prevent or inhibit a gasoline distributor from being a blender or from qualifying for any federal or state tax credit offered to blenders. (Reference Georgia Code 10-1-234.1)

License Exemptions for Biodiesel Production for Personal Use

A biodiesel producer that produces up to 5,000 gallons of biodiesel fuel in a calendar year for personal consumption is exempt from the requirement to obtain an Idaho motor fuel distributor’s license.

Biodiesel Blend Tax Credit

Licensed biodiesel blenders are eligible for a tax credit for special fuel, including diesel that is blended with biodiesel. The tax credit is granted on a per gallon basis in the amount that the rate for special fuel exceeds the rate for the biodiesel blend. The purpose of the credit is to offset any tax liability resulting from the blending of previously untaxed biodiesel. (Reference South Dakota Statutes 10-47B-121.1)

Tax Refund for Methanol Used in Biodiesel Production

A licensed biodiesel producer may apply for and obtain a tax refund for state fuel taxes paid on methanol used to produce biodiesel. (Reference South Dakota Statutes 10-47B-120.1)

Clean Vehicle Acquisition Requirements

Each state entity must purchase or lease a clean energy vehicle, unless the Indiana Department of Administration (Department) determines that the purchase or lease of the vehicle is inappropriate for its intended use, or the purchase or lease would cost 20% more than a comparable non-clean energy vehicle. Additional exemptions apply. A clean energy vehicle is defined as a vehicle that operates on one or more alternative energy sources, including a rechargeable energy storage system, electricity, ethanol, biodiesel, hydrogen, natural gas, and propane. Each state entity must annually submit to the Department information regarding its use of clean energy vehicles. (Reference Indiana Code 5-22-5-8.5)

Electric Vehicle (EV) Promotion and Infrastructure Development

Any regional transportation planning organization containing a county with a population greater than one million must collaborate with state and local governments to promote EV use, invest in EV charging infrastructure, and seek federal or private funding for these efforts. Collaborative planning efforts may include:

• Developing short- and long-term plans outlining how state, regional, and local governments may construct electric vehicle supply equipment locations and ensure that the infrastructure can be electrically supported;
• Supporting public education and training programs on EVs;
• Developing an implementation plan for counties with a population greater than 500,000 to have 10% of public and private parking spaces ready for EV charging by December 31, 2018; and
• Developing model ordinances and guidance for local governments for site assessment and installing EV infrastructure.

(Reference Revised Code of Washington 47.80.090)

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

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

Electric Vehicle (EV) and Battery Exchange Station Regulations

State and local governments may lease land for installing, maintaining, and operating EV charging stations or electric vehicle battery exchange stations for up to 50 years for at least $1 per year. Additionally, the installation of battery charging and exchange stations is categorically exempt from the Washington Environmental Policy Act. (Reference Revised Code of Washington 79.13.100 and 43.21C.410)

Electric Vehicle (EV) Infrastructure Definitions

EV infrastructure is defined as structures, machinery, and equipment necessary and integral to support a EV, including battery charging stations, rapid charging stations, and battery exchange stations. A battery charging station is defined as an electrical component assembly or cluster of component assemblies designed specifically to charge batteries within a EV. A rapid charging station is defined as an industrial grade electrical outlet that allows for faster recharging of EV batteries through higher power levels. A battery exchange station is defined as a fully automated facility that will enable a EV with a swappable battery to enter a drive lane and exchange the depleted battery with a fully charged battery through a fully automated process. Infrastructure must meet or exceed any applicable state building standards, codes, and regulations. (Reference Revised Code of Washington 19.28.281 and 47.80.090)

Biofuel Blend Dispenser Labeling Requirement

Pumps dispensing ethanol or biodiesel blends must have a label that specifies the percentage of ethanol or biodiesel present in the fuel. Ethanol pumps distributing between 1% and 10% must include a label stating that the fuel "contains up to 10% ethanol" and those distributing blends greater than 10% must be labeled with the capital letter E, followed by the numerical value volume of ethanol and the word "ethanol." Pumps dispensing biodiesel blends of 5% (B5) or less must include a label stating that the fuel "may contain up to five percent biodiesel" and those distributing blends greater than 5% must be labeled with the capital letter B, followed by the numerical value volume of biodiesel and the words "biodiesel" or "biodiesel blend." (Reference Revised Code of Washington 19.112.020, and Washington Administrative Code 16-662-115)

Local Government Electric Vehicle (EV) Infrastructure Requirements

Jurisdictions must develop regulations to allow the use of EV infrastructure and battery charging stations in all areas except critical areas or areas zoned for residential or resource use. The Washington Department of Commerce included a model ordinance, development regulations, and guidance for local governments for site assessment and installing EV infrastructure in Electric Vehicle Infrastructure: A Guide for Local Governments in Washington State. This requirement applies to jurisdictions that meet specific location criteria and is contingent upon federal funding. Additionally, cities or municipalities may adopt incentive programs to encourage retrofitting of existing structures capable of charging EVs. (Reference Revised Code of Washington 35.63.126, 35.63.127, 35A.63.107, 36.70.695, 36.70A.695, and 43.31.970)

Biodiesel and Renewable Fuel Definitions

Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from vegetable oils or animal fats and meets the specifications adopted by rules and regulations of the Kansas Department of Agriculture pursuant to current law. The Kansas specification must meet the ASTM D6751-07 specification for biodiesel fuel (B100) blend stock for distillate fuels, but may be more stringent regarding biodiesel quality and usability. Renewable fuels are defined as combustible liquids derived from grain starch, oil seed, animal fats, or other biomass; or produced from a biogas source, including any non-fossilized, decaying, organic matter capable of powering spark ignition machinery.