Answer: In 2014, state legislatures and agencies developed a variety of incentives, laws, and regulations that support the use of alternative fuels, advanced vehicles, and other strategies that align with Clean Cities’ mission to cut the amount of petroleum used in transportation. As compared to 2013, however, the number of newly adopted state laws and incentives decreased, possibly indicating the effectiveness of existing state programs and a maturing alternative fuels market. In addition, several states worked to fine-tune existing programs this past year, in an effort to find the best market penetration strategy.
The majority of state actions across all alternative fuel types in 2014 involved new tax-related incentives and fuel tax regulations. Specific alternative fuels displayed their own trends as well. Laws and incentives related to the following vehicle categories showed particularly notable trends:
Plug-in electric vehicles (PEVs), including both all-electric and plug-in hybrid electric vehicles, and the associated charging infrastructure were the most popular alternative fuel technologies that received attention in the form of new state laws and incentives in 2014. States worked to streamline many aspects of PEV ownership, including allowing direct purchase of PEVs from a manufacturer, modifying rebates and incentives for electric vehicle supply equipment (EVSE), and allowing EVSE at previously restricted locations, such as state facilities and leased properties. A few states initiated studies to determine how to assess PEV owners a supplemental fee in lieu of the gasoline tax they would no longer be paying. Utilities continued to provide new incentives in 2014, including electricity rate discounts for customers using EVSE.
Natural gas vehicles (NGVs) continued to draw significant consideration in 2014, particularly in those states following the national trend of basing a compressed natural gas (CNG) motor fuel tax on the favorable gasoline gallon equivalent conversion. The NGV market and consumers will also benefit from grants, weight exemptions, fuel-training programs, and fleet requirements enacted in the last year.
The Alternative Fuels Data Center’s (AFDC) State Alternative Fuel and Advanced Vehicle Laws and Incentives: 2014 Year in Review provides a further synopsis of incentives and laws enacted in 2014 and is available at http://www.afdc.energy.gov/
In addition, the AFDC Laws & Incentives website provides a searchable database to identify and view relevant state laws and incentives by fuel type, as well as by variety of incentive or regulation. As legislative and gubernatorial actions occur, follow the AFDC website for updates at http://www.afdc.energy.gov/
As new trends and issues emerge from legislation, policy bulletins are posted to the AFDC Technology and Policy Bulletins page at http://www.afdc.energy.gov/