Utah Incentives and Laws for Natural Gas

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

State Incentives

Clean Fuel Vehicle Tax Credit

The state provides an income tax credit of 35% of the vehicle purchase price or $2,500, whichever is less, for an original equipment manufactured compressed natural gas vehicle registered in Utah. Other new clean fuel vehicles that meet required air quality and fuel economy standards may be eligible for a credit of up to $750. The state also provides a credit of 50% of the cost of converting a vehicle to operate using a clean fuel (including propane, natural gas, or electricity), up to a maximum of $2,500 per vehicle. Documentation must be provided as described in the Utah state tax form TC-40V. This incentive expires December 31, 2013. (Reference Utah Code 59-7-605 and 59-10-1009)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants and Loans

The Utah Clean Fuels and Vehicle Technology Grant and Loan Program (Program), funded through the Clean Fuels and Vehicle Technology Fund, provides grants and loans to assist businesses and government entities in covering: 1) the cost of converting vehicles to operate on clean fuels; 2) the incremental cost of purchasing original equipment manufactured clean fuel vehicles; and 3) the cost of retrofitting diesel vehicles with U.S. Environmental Protection Agency verified closed crankcase filtration devices, diesel oxidation catalysts, and/or diesel particulate filters. These grants and loans may serve as matching funds for federal and non-federal grants. The Program also provides loans for the purchase of fueling equipment for public/private sector business and government vehicles. The Program also provides loans for the purchase of fueling equipment for public/private sector business and government vehicles. The Program does not support E85 or biodiesel projects. (Reference Utah Code 19-1-401 through 19-1-405)

High Occupancy Vehicle (HOV) Lane Exemption

Vehicles with clean fuel license plates are authorized to travel in HOV lanes regardless of the number of occupants, to the extent authorized or permitted by federal law or federal regulation. The clean fuel plate must be purchased from a Utah Motor Vehicles office for a fee of $15. Vehicle owners must first obtain a C Plate permit from the Utah Department of Transportation. To be eligible for a clean fuel license plate, a vehicle must meet the definition of a clean fuel vehicle as defined in Utah Code 59-13-102. (Reference Utah Code 41-1a-418, 41-1a-1211, 41-6a-702 and 59-13-102)

Incentive for Airport Alternative Fuels Use

The Salt Lake City Department of Airports provides incentives to commercial ground transportation providers who purchase and operate clean fuel vehicles that exclusively operate on approved clean fuels (as designated by Utah Code 59-13-102). Eligible vehicles are those that operate on compressed natural gas, propane, hydrogen, electricity, or hybrid electric vehicles. The incentives are in the form of a credit against ground transportation fees. Incentive credit amounts are $2,500 for each Original Equipment Manufacturer vehicle or certified vehicle converted to operate on an alternative fuel. (Reference Salt Lake City Department of Airports Clean Fuel Policy Number 10.07.100)

Alternative Fuel Vehicle (AFV) Parking Incentive - Salt Lake City

Salt Lake City offers free metered parking program for Green Vehicles. Green Vehicles are vehicles that qualify for a Utah Clean Fuel license plate and meet the definition of a clean fuel vehicle as defined by Utah Code 19-1-402, or qualify for a Salt Lake City Green Vehicle parking permit by being a top performer in regards to city fuel economy or emissions. To park free at meters, vehicles must display a Utah Clean Fuel license plate or Green Vehicle parking permit. Green Vehicle parking permits are available from the Salt Lake City Transportation Division for vehicles meeting at least one of the following criteria: 1) achieve a city fuel economy of at least 41 miles per gallon as determined by the U.S. Environmental Protection Agency (EPA), or 2) achieve an EPA Green Vehicle Guide pollution score of at least eight for Utah. (Reference Salt Lake City Code 12.56.205)

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 and fleet consulting services for alternative fuel comparisons.

Laws and Regulations

Natural Gas Vehicle Conversion Promotion

In order to encourage the use of natural gas in the transportation sector, the state of Utah encourages the U.S. Environmental Protection Agency (EPA) to take action to facilitate vehicle conversions. Specifically, the state recommends that EPA revise certification requirements for small volume conversion manufacturers, provide guidance to those manufacturers regarding the conversion of older vehicle models, and continue a natural gas vehicle research, development, and demonstration funding program. The state also encourages the formation of public and private partnerships to increase the states' vehicle fueling infrastructure. (Reference House Concurrent Resolution 1, 2009)

Public Access to State Compressed Natural Gas (CNG) Fueling Stations

The Utah Department of Administrative Services Division of Fleet Services may allow a private individual or entity to purchase CNG from the state's fueling network if there is no commercial fuel site that meets the geographical CNG distribution needs of the individual or entity, and there is no emergency that requires CNG to be reserved for use by state or emergency vehicles. The Division of Fleet Services provides information on obtaining a GasCard for fueling as well as state fueling network stations that are available to private individuals and entities. (Reference Utah Code 63A-9-702)

Natural Gas Rate Authorization

The Public Service Commission is authorized to find that a gas corporation's request for a natural gas vehicle rate that is less than full cost of service may be just and reasonable in the interest of the public. If the commission approves such a request, the remaining costs may be spread to other customers of the gas corporation. (Reference Utah Code 54-4-13.1)

Alternative Fuels Tax

The tax imposed on clean special fuels used to operate motor vehicles, including propane and electricity, is 3/19 of the rate of $0.0245 which is imposed on traditional motor fuels. The tax on compressed natural gas is $0.085 per gasoline gallon equivalent; this rate will be modified proportionally with any changes to the traditional motor fuel rate. Vehicles that operate on special fuels and have a gross vehicle weight rating of more than 26,000 pounds, or have more than three axels are required to obtain a special fuel user permit from the State Tax Commission. The Revenue and Tax Code provides for a reduction of motor and special fuel taxes if the motor or special fuel is already taxed by the Navajo Nation. Retailers, wholesalers, and suppliers of special fuel are eligible for a refund of the special fuel tax if dyed diesel fuel is mixed with special fuel and the mixed special fuel is returned to the refinery for re-refining. Documentation must be provided as described in the Utah state tax form TC-129. (Reference Utah Code 59-13-102, 59-13-201, 59-13-301, 59-13-303, 59-13-304, and 59-13-322)

Provision for Establishment of Alternative Fuel Use Mandate

The Utah Air Quality Board is authorized to mandate fleet vehicles to use clean fuels, if such a mandate is necessary in order to meet national air quality standards. (Reference Utah Code 19-2-105.3)

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Content Last Updated: 02/19/2010