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Federal and State Incentives and Laws

Idaho Incentives and Laws

Listed below are the summaries of all current Idaho 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:

State Incentives

Hybrid Electric Vehicle (HEV) and Electric Vehicle (EV) Exemption from Vehicle Testing Requirements

HEVs and EVs are exempt from state motor vehicle inspection and maintenance programs. (Reference Idaho Statutes 39-116B)

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 $0.01 per gallon petroleum transfer fee and the requirement to obtain an Idaho motor fuel distributor's license. (Reference Idaho Statutes 63-2421 and 63-2427A)

Alternative Fuels Tax Refund

State excise tax paid on special fuels used in motor vehicles that the state or federal government owns or leases may be refunded, as long as the tax was originally paid directly to a special fuel vendor. Special fuels include compressed and liquefied natural gas, liquefied petroleum gas (propane), hydrogen, and fuel suitable for use in diesel engines. The tax refund is not available for special fuels a registered motor vehicle uses while idling. Idling means a period of time greater than 15 minutes when the motor vehicle is stationary with the engine operating. (Reference Idaho Statutes 63-2401, 63-2402, and 63-2423)

Utility/Private Incentives

Natural Gas Technical Assistance

Questar Gas offers technical assistance to customers interested in converting their vehicles to operate on compressed natural gas. The company provides financial analysis, fleet consulting, and fueling solutions.

Point of Contact
Jim Grambihler
Natural Gas Vehicle Program
Questar Gas
Phone: (801) 324-5119
Fax: (801) 324-3713
jim.grambihler@questar.com

Laws and Regulations

State Agency Petroleum Reduction Plan

All state agencies must reduce their fleets' petroleum consumption by increasing vehicle fuel economy and operating efficiency and reducing the number of miles driven by each employee. Agencies must also give priority to the purchase and use of hybrid electric vehicles and other fuel-efficient, low emission vehicles. (Reference Executive Order 2007-21)

Propane Board and Dealer Requirements

The Idaho Liquefied Petroleum Gas (LPG) Public Safety Act established the LPG Board and requires that LPG (propane) dealers 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)

Biodiesel Definitions

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)

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)

Alternative Fuels Tax

A state excise tax applies to special fuels at a rate of $0.25 per gallon on a gasoline gallon equivalent basis. Special fuels include compressed natural gas (CNG), liquefied natural gas, liquefied petroleum gas (propane), hydrogen, and fuel suitable for use in diesel engines. In lieu of paying an excise tax on gaseous motor fuels, owners of vehicles powered by CNG, propane, or hydrogen may pay an annual fee. The fee is based on gross vehicle weight rating (GVWR) as follows:

GVWRFee
Less than or equal to 8,000 pounds (lbs.)$60
8,001-16,000 lbs.$89
16,001-26,000 lbs.$179
26,001 lbs. or more$208

Vehicle owners must purchase permits from gaseous fuels vendors and display the provided decal as evidence that the annual fee has been paid in lieu of the excise tax. Permits for vehicles that are converted to gaseous fuels after July 1 in any year are subject to a prorated fee.

(Reference Idaho Statutes 63-2401 and 63-2424)

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 49-115, 49-123, 49-402, and 49-663)