New York Incentives and Laws for Natural Gas

The list below contains summaries of all New York incentives and laws related to Natural Gas.

State Incentives

Alternative Fueling Infrastructure Tax Credit

A state tax credit is available for the installation of alternative fuel vehicle fueling infrastructure located in the state. The tax credit is equal to 50% of the cost of the infrastructure. This includes infrastructure for storing or dispensing an alternative fuel into the fuel tank of a motor vehicle powered by that fuel, as well as infrastructure used for charging electric vehicles. Eligible alternative fuels include natural gas, liquefied petroleum gas, hydrogen, electricity, and any other fuel that is a least 85% ethanol or other alcohol. This credit does not apply after December 31, 2010. (Reference New York Tax Law 187-b)

Alternative Fuel Bus and Infrastructure Funding

The Clean Fueled Bus Program, administered by the New York State Energy Research and Development Authority (NYSERDA), provides funds to state and local transit agencies, municipalities, and schools for up to 100% of the incremental cost of purchasing new alternative fuel buses and associated infrastructure. For the purposes of this program, an alternative fuel bus is any motor vehicle with a seating capacity of 15 or more passengers used for the transportation of persons on public highways that is powered by compressed natural gas (CNG) (including dual-fuel technology that is factory built and certified or a new diesel engine with a minimum of 75% use of CNG during typical operation), propane, methanol, hydrogen, biodiesel, or ethanol, or uses electricity as a primary motive force (e.g., hybrid electric). Eligible infrastructure projects include construction and installation of equipment to fuel or recharge alternative fuel buses including, but not limited to, battery charging stations and natural gas fueling stations and depots. To be considered for funding, the project must be necessary to introduce or expand a fleet of alternative fuel buses and include only cost items directly associated with making the facility capable of dispensing the fuel. Funding for this program is provided by the Clean Water/Clean Air Bond Act. For more information, see the NYSERDA Transportation Projects Web site.

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Funding

The New York State Clean Cities Challenge, administered by the New York State Energy Research and Development Authority (NYSERDA), awards funds to members of New York's Clean Cities Coalitions that acquire AFVs or install AFV fueling or recharging infrastructure. Funds are awarded on a competitive basis, and can be used to cost-share up to 75% of the proposed project, including the incremental cost of purchasing AFVs, the cost of installing fueling and recharging equipment, and the incremental costs associated with bulk alternative fuel purchases. Consideration will be given to projects that result in new fueling or charging facilities, benefit more than one fleet, provide a high level of visibility and innovation, and/or comprise unique public/private partnerships. For more information, see the NYSERDA Transportation Projects Web site.

Alternative Fuel Vehicle (AFV) Technical Assistance

The New York State Clean Cities Sharing Network (Network), which provides technical, policy, and program information about AFVs, is managed by the New York State Energy Research and Development Authority (NYSERDA). Membership is open to all organizations, businesses, and individuals interested in AFVs and members are notified about upcoming funding opportunities and events. The Network publishes information about tax incentives, fueling stations, case studies, and contact information for the Clean Cities program and other industry leaders. The Network also organizes and sponsors technical workshops. For more information, see the NYSERDA Transportation Projects Web site.

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Technical Assistance

The New York State Energy Research and Development Authority's (NYSERDA) Flexible Technical (Flex-Tech) Assistance Program provides assistance to fleet managers who want to evaluate the feasibility and cost of adding AFVs and fueling facilities to their operations. Low-cost training for vehicle mechanics is also available through certified institutions. For more information, see the NYSERDA Transportation Projects Web site.

Alternative Fuel Product Development Funding

The New York State Energy Research and Development Authority's (NYSERDA) Transportation Research Program sponsors a wide variety of product development efforts aimed at improving efficiency and increasing the use of alternative fuels. Program Opportunity Notices are issued periodically to solicit proposals for cost-share development efforts leading to the manufacture and sale of innovative products that provide energy, environmental and economic development benefits. For more information, see the NYSERDA Transportation Projects Web site.

Alternative Fuel Vehicle Support

The Alternative Fueled Vehicles Program (Program) was developed within the New York State Office of General Services (OGS) to:

For more information, see the OGS Alternative Fueled Vehicles Program Web site.

Point of Contact
Karin Slivernale
Assistant Director, Alternative Fueled Vehicles Program
New York State Office of General Services
Phone: (518) 473-6594
Fax: (518) 486-1734
nys.alt.fuel@ogs.state.ny.us
http://www.ogs.state.ny.us/supportServices/vehicles/defaultCFV.html

Alternative Fuel and Advanced Technology Vehicle Funding - New York City

The New York City Private Fleet Alternative Fuel/Electric Vehicle Program, administered by the New York State Energy Research and Development Authority (NYSERDA) in cooperation with New York City Department of Transportation, helps private companies and non-profit organizations operating vehicles in New York City to acquire alternative fuel and advanced technology vehicles. Funds are awarded on a competitive basis for up to 50% of the incremental cost of purchasing new light-duty natural gas vehicles (NGVs) or electric vehicles (EVs), and up to 80% of the incremental cost for purchasing new or converting medium- and heavy-duty NGVs (dedicated and bi-fuel), EVs, or hybrid electric vehicles. In addition, up to 50% of the costs for alternative fueling or EV charging station equipment and installation may be eligible. For more information, see the NYSERDA Transportation Projects Web site.

Compressed Natural Gas (CNG) Taxi Funding - New York City

The New York City Clean Fuel Taxi Program provides funding towards the purchase of new CNG taxis cabs or the conversion of gasoline powered taxi cabs to operate on CNG. For more information, see the NYSERDA Transportation Projects Web site.

Utility/Private Incentives

Natural Gas Vehicle (NGV) and Infrastructure Rebates and Technical Assistance

National Grid offers a NGV incentive program that provides rebates for NGVs on a case-by-case basis and special rates for compressed natural gas (CNG) fueling. National Grid will also help secure CNG fueling station financing, and provide technical assistance and other services to NGV fleets on a case-by-case basis. Financial awards are made depending on the fleet size, amount of fuel used, and vehicle type.

Point of Contact
Ronald J. Gulmi
Natural Gas Vehicle Program Manager
National Grid
Phone: (516) 545-5164
Fax: (516) 545-3250
rgulmi@keyspanenergy.com
http://www2.nationalgridus.com/

Laws and Regulations

Fuel Exclusivity Contract Regulation

Motor fuel franchise dealers are permitted to obtain alternative fuels from a supplier other than a franchise distributor. Any provision of a franchise which prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, and compressed natural gas from a firm or individual other than the distributor is null and void as it pertains to that particular alternative fuel if the distributor does not supply or offer to supply the dealer with the alternative fuel. Distributors who violate the law by entering into exclusivity contracts will be subject to a fine of $1000. If the distributor does offer renewable fuels, they are allowed to require the station to use their brands. (Reference New York General Business Law 199-j)

Alternative Fuel Tax Exemption and Rate Reduction

E85, compressed natural gas, and hydrogen fuel that is used exclusively to operate the engine of a motor vehicle is exempt from state sales and use taxes. Additionally, cities and counties are authorized to reduce the sales and use tax imposed on B20 to 85% of the diesel fuel tax rate. This exemption and rate reduction expires September 1, 2011. (Reference New York Tax Law 1111 and 1115)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

State agencies and other affected entities must procure increasing percentages of AFVs as part of their annual vehicle acquisition plans; hybrid electric vehicles qualify under these requirements. By 2010, 100% of all new light-duty vehicles must be AFVs, with the exception of designated specialty, police, or emergency vehicles. State agencies and other affected entities that operate medium- and heavy-duty vehicles must implement strategies to reduce petroleum consumption and emissions by using alternative fuels and improving vehicle fleet fuel efficiency. State agencies and other affected entities may substitute the use of 450 gallons of B100 for the acquisition of one AFV. Alternatively, the use of 2,250 gallons of B20 or use of 9,000 gallons of B5 may also be substituted in place of purchasing one AFV. No more than 50% of a given state agency fleet's AFV purchase requirement may be met by substituting B100, B20, or B5. (Reference Executive Order 9, 2008, Executive Order 142, 2005 (PDF 238KB), and (Executive Order 111, 2001) Download Adobe Reader

Alternative Fuel Vehicle (AFV) Acquisition Requirements - New York City

At least 80% of the New York City light-duty, non-emergency fleet, and 20% of bus fleets operated in New York City are required to be AFVs. On an annual basis, the mayor is required to submit a report to the city's comptroller detailing the city's purchase of alternative fuel buses and light-duty vehicles during the immediately preceding fiscal year. (Reference New York City Administrative Code 24-163.1 and 24-163.2)

Alternative Fuel Use Requirement - New York City

Any bi-fuel motor vehicle owned or operated by the city must use the specified alternative fuel to operate the vehicle. This regulation does not apply for vehicles that are no longer mechanically able to operate on the alternative fuel, or if the vehicle manufacturer recommends that the vehicle operate on gasoline or diesel fuel for a specified period of time. (Reference New York City Administrative Code 24-163.1)

Compressed Natural Gas (CNG) Use Requirement - Smithtown

The town of Smithtown requires all contracted residential refuse collection operators to switch from diesel vehicles to vehicles that operate exclusively on CNG. For more information, see the Smithtown Web site.