Washington Incentives and Laws

Listed below are the summaries of all current Washington 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 (12)
• Utility/Private Incentives (4)
• Laws and Regulations (26)

State Incentives

Alternative Fuel Vehicle (AFV) Tax Exemption

New passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated AFVs are exempt from the state motor vehicle sales and use taxes. Qualified vehicles must operate exclusively on natural gas, propane, hydrogen, or electricity; meet the California motor vehicle emissions standards; and comply with the rules of the Washington Department of Ecology. This exemption also applies to qualified used vehicles that are modified with a U.S. Environmental Protection Agency certified aftermarket conversion, as long as the vehicle is being sold for the first time after modification. The converted vehicle must be part of a fleet of at least five vehicles owned by the same person and have an odometer reading of less than 30,000 miles. This tax exemption expires July 1, 2015. (Reference Revised Code of Washington 82.08.809 and 82.12.809)

Electric Vehicle (EV) Infrastructure and Battery Tax Exemptions

Public lands used for installing, maintaining, and operating EV infrastructure are exempt from leasehold excise taxes until January 1, 2020. Additionally, the state sales and use taxes do not apply to EV batteries; labor and services for installing, repairing, altering, or improving EV batteries and EV infrastructure; and the sale of property used for EV infrastructure. (Reference Revised Code of Washington 82.29A.125, 82.08.816, and 82.12.816)

Alternative Fuel Loans and Grants

The Washington Department of Commerce administers the Energy Freedom Program (Program) in consultation with other state agencies. The Program includes the Energy Freedom Account, which provides financial and technical assistance for bioenergy production, research, and market development, primarily in the form of loans used to convert farm products, organic wastes, cellulose and biogas into electricity, biofuel, and related co-products. The Program also includes the Green Energy Incentive Account, which provides financial assistance for alternative fueling infrastructure along interstate corridors. As of April 2012, no new funds have been appropriated for these accounts, which are set to expire after June 30, 2016. (Reference Revised Code of Washington 43.325)

Plug-In Electric Vehicle (PEV) Demonstration Grants

The Washington Department of Commerce administers the Vehicle Electrification Demonstration Grant Program, part of the Energy Freedom Program. Eligible applicants are state agencies, public school districts, public utility districts, or political subdivisions of the state. Grants may be awarded for projects involving the purchase or conversion of existing vehicles to PEVs for use in an applicant's fleet or operations; additional eligibility requirements apply. As of April 2012, funding is not available. (Reference Revised Code of Washington 43.325.110)

Electric Vehicle Supply Equipment (EVSE) Project Funding

The Washington Departments of Commerce and Transportation are partnering to fund the installation of qualified EVSE along the I-5 and US-2 corridors. Competitive funding is available to businesses wishing to host EVSE. For more information see the Electric Highways Project website.

Biofuels Distribution Tax Exemption

Fuel delivery vehicles, machinery, equipment, and related services that are used for the retail sale or distribution of biodiesel blends of 20% biodiesel (B20) or greater or E85 motor fuel are exempt from state retail fuel sales and use taxes until July 1, 2015. (Reference Revised Code of Washington 82.08.955 and 82.12.955)

Biofuels Tax Deduction

A business and occupation tax deduction is available for the sale or distribution of biodiesel or E85 motor fuel. This deduction is available until July 1, 2015. (Reference Revised Code of Washington 82.04.4334)

Biofuels Production Tax Exemption

Qualifying buildings, equipment, and land used in the manufacturing of alcohol fuel, biodiesel, or biodiesel feedstocks, or the operation of an anaerobic digester, are exempt from state and local property and leasehold excise taxes for a period of six years from the date the facility or addition to the existing facility becomes operational. This incentive expires after December 31, 2015, except for the credit for anaerobic digesters, which expires December 31, 2012. (Reference Revised Code of Washington 82.29A.135 and 84.36.635)

Biodiesel Feedstock Tax Exemption

Waste vegetable oil, specifically cooking oil gathered from restaurants or commercial food processors, an individual uses to produce biodiesel for personal use is exempt from state sales and use taxes. (Reference Revised Code of Washington 82.08.0205 and 82.12.0205)

Idle Reduction Tax Incentives and Exemptions

Tax incentives are available for the infrastructure and services that support the use of auxiliary power for vehicles with gross vehicle weight ratings of more than 14,000 pounds through on-board or stand-alone electrification systems. These incentives include a business and occupation tax deduction and a sales and tax exemption for machinery and equipment used to provide auxiliary power at truck stops. Sales and use tax exemptions are also available for any parts and labor necessary to enable heavy-duty diesel trucks to accept power for onboard electrification systems. These exemptions expire July 1, 2015. (Reference Revised Code of Washington 82.04.4338, 82.08.815, 82.08.825, 82.15.815, and 82.12.825)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Emissions Inspection Exemption

Dedicated electric, compressed natural gas, and propane vehicles are exempt from state emissions control inspections. HEVs 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)

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 400 pounds to compensate for the added weight of the idle reduction technology. (Reference Washington Administrative Code 468-38-073)

Utility/Private Incentives

Clean and Efficient Fleet Assistance

The Western Washington Clean Cities Coalition, in partnership with the Puget Sound Clean Air Agency, offers the Evergreen Fleets program, a comprehensive greening plan and certification system for fleets. Evergreen Fleets provides fleet managers with tools to help "green" public and private fleets, reduce pollution, and save money. Evergreen Fleets provides a step-by-step guide to identify the most effective way for fleet managers to green their fleets, including buying greener vehicles, switching to cleaner fuels, or improving fleet efficiency.

Electric Vehicle Supply Equipment (EVSE) Incentive - Coulomb Technologies

Coulomb Technologies' ChargePoint America program offers EVSE at no cost to individuals or entities in the Bellevue and Redmond metropolitan areas, excluding Seattle. To be eligible for free home charging stations, individuals living within the specified areas must purchase a qualified plug-in electric vehicle. Application information is available on the ChargePoint America website. In most cases, the EVSE owner will pay for the installation; some cities, states, and utilities, however, will provide funding towards installation costs. All participants in the ChargePoint America program must agree to anonymous data collection after installation. Additional restrictions may apply.

Electric Vehicle Supply Equipment (EVSE) Incentive - ECOtality

Through the EV Project, ECOtality offers EVSE at no cost to individuals in the Seattle metropolitan area. To be eligible for free home charging stations, individuals living within the specified areas must purchase a qualified plug-in electric vehicle (PEV). Individuals purchasing an eligible PEV should apply at the dealership at the time of vehicle purchase. The EV Project incentive program will also cover most, if not all, of the costs of EVSE installation. All participants in the EV Project incentive program must agree to anonymous data collection after installation. Additional restrictions may apply.

Biofuel Volume Rebate Program - Propel Fuels

Propel Fuels offers a rebate to qualified fleet customers for monthly purchases of more than 500 gallons of biodiesel blends and E85. Fleet customers must purchase the fuel directly from Propel public retail locations using the Propel CleanDrive Wright Express fleet card. The program offers a rebate of $0.03 per gallon for purchases of less than 1,000 gallons of biofuel per month, and $.05 per gallon for purchases of 1,000 gallons or more per month. The rebate is applied at the end of each monthly billing cycle.

Laws and Regulations

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.

Additionally, at least 2% of the total gasoline sold in the state must be denatured ethanol. The ethanol requirement may be increased if the Washington Department of Ecology determines that this increase would 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 through 19.112.180)

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 infrastructure, and seek federal or private funding for these efforts. Collaborative planning efforts may include: 1) developing short- and long-term plans outlining how state, regional, and local governments may construct EV charging locations and ensure that the infrastructure can be electrically supported; 2) supporting public education and training programs on EVs; 3) 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 4) 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) Charging Infrastructure Availability

Publicly and privately owned EVs may be charged at state office locations where 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 by December 31, 2015. (Reference Revised Code of Washington 43.01.250, 43.19.648, and 47.38.075)

Electric Vehicle (EV) Fee

Effective February 1, 2013, EV operators must pay an annual vehicle registration renewal fee of $100. This fee expires if the legislature imposes a vehicle miles traveled fee or tax in the state. (Reference House Bill 2660, 2012)

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. This regulation applies to jurisdictions that meet specific location criteria. 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 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, and 36.70A.695)

Electric Vehicle Supply Equipment (EVSE) and Battery Exchange Station Regulations

State and local governments may lease land for installing, maintaining, and operating EVSE or electric vehicle battery exchange stations for up to 50 years. 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) Road User Assessment System Pilot

The Washington Transportation Commission must establish a steering committee to determine the feasibility of transitioning from a fuel tax to a road user assessment system in the state. Under the guidance of this steering committee, the Department of Transportation may conduct a limited scope pilot project to test the feasibility of this new system as it applies to EVs. (Reference House Bill 2190, 2012)

Electric Vehicle (EV) Infrastructure Definitions

EV infrastructure is defined as structures, machinery, and equipment necessary and integral to support an 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 an 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 an 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 19.27.540 and 19.28)

Provision for Alternative Fuels Corridor Pilot Projects

The Washington Department of Transportation may enter into partnership agreements with other public and private entities to use land for alternative fuel corridor pilot projects. Minimum requirements apply and these agreements are subject to funding availability. (Reference Revised Code of Washington 47.38.070)

State Agency Coordination to Address Climate Change

The Washington Department of Ecology worked with the Washington Departments of Commerce and Transportation to assess whether California's low carbon fuel standard (LCFS) or other state standards would help Washington meet its greenhouse gas emissions reduction target of 1990 levels by 2020. See the Department of Ecology's LCFS website for information about the assessment.

The Department of Transportation must work in consultation with the Departments of Ecology and Commerce and other interest groups to address low or zero emission vehicles. Additionally, the Office of the Governor will work with state agencies to seek funding to implement a project for the electrification of the West Coast interstate highway and associated metropolitan centers and to purchase electric vehicles and install public fueling and/or charging infrastructure for electric and other high-efficiency, zero, or low carbon vehicles.

(Reference Executive Order 09-05, 2009)

Biofuel Blend Dispenser Labeling Requirement

All motor fuel pumps dispensing alcohol blended gasoline must be labeled with the alcohol product name (e.g., ethyl alcohol) and the alcohol content. The statement must be posted in letters measuring at least half an inch high. Pumps dispensing ethanol or biodiesel blends must have a label that specifies the percentage of ethanol or biodiesel present in the fuel. Pumps dispensing biodiesel blends of 5% (B5) or less must include a label stating that the fuel "may contain up to five percent biodiesel." (Reference Revised Code of Washington 19.112.020, and Washington Administrative Code 16-657-040)

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 is currently sampling biofuel throughout the state on a quarterly basis, monitoring and tracking the quality of biofuel, and working 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)

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 and 82.04.4334)

Biodiesel Definition

Biodiesel fuel is defined as a mono alkyl 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 in effect as of January 1, 2003. (Reference Revised Code of Washington 19.112.010 and 82.04.4334)

Biodiesel Storage Regulations

Underground storage tank regulations apply to all biodiesel blends with the exception of 100% biodiesel (B100). An owner changing the use of an underground storage tank from storage of diesel to B100 must communicate the change to the Washington Department of Ecology and must first have a site assessment performed by a certified site assessor. (Reference Washington Administrative Code 173-360)

Low Emission Vehicle (LEV) Standards

Washington adopted the California motor vehicle emission standards in Title 13 of the California Code of Regulations, with the exception of California's zero emission vehicle program. 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. Each manufacturer's fleet of passenger cars and light-duty trucks delivered for sale in the state of Washington must proportionately conform to the zero emission vehicle requirements of California motor vehicle emissions standards, including credit banking provisions using Washington specific vehicle numbers. Model Year 2009 and later vehicles are exempt from state emissions inspections. (Reference Revised Code of Washington 70.120A.010 and 70.120A.020, and Washington Administrative Code 173-423)

Alternative Fuel Vehicle (AFV) 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 compressed natural gas. (Reference Revised Code of Washington 46.37.467)

Alternative Fuel Vehicle (AFV) Annual Fee

Owners of compressed natural gas 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 is calculated 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. In addition, there is a $5 handling fee for each license issued.

(Reference Revised Code of Washington 82.36.025 and 82.38.075)

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 and 46.61.723-46.61.725)

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 Development 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. (Reference House Bill 2190, 2012, and Revised Code of Washington 43.19.642 and 43.19.646)

Alternative Fuel Use Requirement

Effective June 1, 2015, all state agencies must use 100% biofuels or electricity to operate all publicly owned vehicles. To phase in this requirement, all state agencies must achieve 40% biofuel or electricity use by June 1, 2013. In addition, effective June 1, 2018, all local government agencies must use 100% biofuels or electricity to operate all publically owned vehicles. Transit agencies using compressed natural gas (CNG) 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. Government agencies may substitute CNG, liquefied natural gas, or propane in vehicles if the Washington Department of Commerce determines that biofuels and electricity are not reasonably available. (Reference House Bill 2545, 2012, and Revised Code of Washington 43.19.647 through 43.19.648)

State Vehicle Low Rolling Resistance Tire Requirement

Except for cars operated by the state patrol, when Washington state agencies replace the tires on their vehicles, they must use tires with the same or better rolling resistance as the original tires. (Reference Revised Code of Washington 43.19.647)

State Vehicle Purchasing Guidance

The Washington Department of Enterprise Services must develop guidelines and criteria for the purchase of high mileage gasoline vehicles, as well as alternative fuel vehicles and systems that reduce the overall costs and energy use in the state. The guidance should include investigations into all opportunities to aggregate the purchasing of clean technologies with state and local governments, as well as federal fuel economy standards. (Reference House Bill 2452, 2012)

Low Carbon Fuel and Fuel-Efficient Vehicle Acquisition Requirement

Washington state agencies must consider purchasing ultra low carbon fuel vehicles or converting conventional vehicles to use ultra low carbon fuels when financially comparable over the vehicle's useful life. Ultra low carbon fuels include hydrogen, biomethane, electricity, or at least 90% natural gas. State agencies must phase in fuel economy standards for motor pools and leased conventional vehicles to achieve an average fuel economy of 36 miles per gallon for passenger vehicle fleets by 2015. State agencies must purchase ultra low carbon fuel vehicles or, when purchasing new conventional vehicles, achieve an average fuel economy of 40 miles per gallon (mpg) for light-duty passenger vehicles and 27 mpg for light-duty vans and sport utility vehicles. When calculating average fuel economy, emergency response vehicles, passenger vans with a gross vehicle weight rating of 8,500 pounds or greater, off-road vehicles, ultra low carbon fuel vehicles, and vehicles driven less than 2,000 miles per year are excluded. (Reference Revised Code of Washington 43.41.130)

Biofuels Production and Distribution Contracts

Conservation districts, public development authorities, municipal utilities, and public utility districts may enter into 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)

State Emissions Reductions Requirements

Washington 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, reducing overall emissions to 50% below 1990 levels, or 70% below the state's expected emissions that year.

To reach these goals, the state will ensure that vehicles sold in the state meet stringent emissions standards; work with farmers, entrepreneurs, fuel distributors, and retailers to ensure that biofuel feedstocks are grown in Washington; ensure that refiners, blenders, and distributors of biofuels create jobs in the state; and strive to make it possible for the public to purchase fuel blends that reduce dependence on imported oil. The Washington Department of Ecology developed a comprehensive plan to reduce the state's GHG emissions.

(Reference Revised Code of Washington 70.235.020 and Executive Order 07-02, 2007)