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Federal and State Incentives and Laws

Alaska Incentives and Laws

Listed below are the summaries of all current Alaska incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

Laws and Regulations

State Compressed Natural Gas (CNG) Feasibility Study

At the direction of the Alaska Legislature, the Department of Transportation and Public Facilities issued a report on the feasibility of using CNG to power vehicles in the state. The study:

  1. Reviewed existing government programs and incentives in North America that promote the use of CNG;
  2. Reviewed and summarized relevant studies and investigations on existing public policy incentives that encourage the use of CNG;
  3. Evaluated the environmental benefits and technical merits of using CNG;
  4. Considered the economic, environmental, and technological advantages and disadvantages of using and promoting the use of CNG; and
  5. Set out a proposal for a CNG expansion program in the state.

(Reference Alaska Statutes 44.42.020(a)(3))

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 in which fuel containing ethanol must be sold, transferred, or used to operate motor vehicles in an effort to reduce carbon monoxide emissions and attain federal or state air quality standards. (Reference Alaska Statutes 43.40.010)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles are only permitted on highways with speed limits up to 35 miles per hour (mph), unless operating within certain municipalities and unorganized boroughs. Low-speed vehicles operating in these areas are permitted on highways with maximum speed limits of 45 mph. 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. 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 28.10, 28.35.261, and 28.90.990)

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)

State Energy Plan

As part of its state energy plan, Alaska promotes energy efficiency in the transportation sector. (Reference Alaska Statutes 44.99.115)

Compressed Natural Gas (CNG) Vehicle Promotion

To reduce emissions and reliance on imported petroleum, the Alaska Senate urges state and federal agencies to purchase vehicles that can be converted to run on CNG. (Reference Senate Resolution 10, 2010)