North Carolina Incentives and Laws for HEVs / PHEVs

The list below contains summaries of all North Carolina incentives and laws related to HEVs / PHEVs.

State Incentives

High Occupancy Vehicle (HOV) Lane Exemption

Qualified plug-in electric vehicles, dedicated natural gas vehicles, and fuel cell electric vehicles may use North Carolina HOV lanes, regardless of the number of occupants. (Reference House Bill 222, 2011, Senate Bill 194, 2011, and North Carolina General Statutes 20-4.01 and 20-146.2)

Plug-In Electric Vehicle Emissions Inspection Exemption

Qualified plug-in electric vehicles are exempt from state emissions inspection requirements. Other restrictions may apply. (Reference House Bill 222, 2011, and North Carolina General Statutes 20-4.01 and 20-183.2)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Support

The Clean Fuel Advanced Technology project focuses on reducing transportation related emissions in non-attainment and maintenance counties for National Ambient Air Quality Standards. Projects that are adjacent to areas may also be eligible if the project will reduce emissions in eligible counties. The North Carolina Department of Transportation funds the CFAT project, which covers three broad areas: education and outreach; project funding; and recognition of exemplary activities. As of September 2011, funding is not available. Future financial support is anticipated to be available in 2013 for AFVs, fueling infrastructure, idle reduction technologies, heavy-duty HEVs, heavy-duty buses, and diesel retrofits.

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 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, the definition of alternative fuel includes 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(8)i, and 136-28.13)

Utility/Private Incentives

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Loans

The State Employees' Credit Union and the Local Government Federal Credit Union offer green vehicle loans to purchase qualified new and used fuel-efficient vehicles. Vehicles with a combined fuel economy rating of at least 28 miles per gallon, according to revised fuel economy ratings posted on www.fueleconomy.gov, qualify. The loan interest rates are 0.5% lower than traditional new or used vehicle loan rates.

Electric Vehicle Supply Equipment (EVSE) Incentive - Duke Energy

Duke Energy's Duke Energy Charge|Carolinas pilot program provides qualified residential customers with Level 2 EVSE and up to $1,000 for EVSE installation. Duke Energy will service the equipment and remotely access the EVSE to collect information in an effort to better understand charging habits and the impact on the power grid. At the end of the two-year pilot, participants will be able to keep the EVSE for a fee of $250 per unit.

Laws and Regulations

Plug-In Electric Vehicle Definition

A plug-in electric vehicle is defined as a vehicle that:

• Draws electricity from a battery with a capacity of at least four kilowatt hours and that is capable of being charged from an external source;
• Has not been modified from the original equipment manufacturer power train specifications;
• Has a gross vehicle weight rating of 8,500 pounds or less;
• Has a maximumspeed capacity of at least 65 miles per hour; and
• Meets applicable requirements in Title 49 of the Code of Federal Regulations, section 571.

(Reference House Bill 222, 2011, and North Carolina General Statutes 20-4.01)