Virginia Incentives and Laws for EVs

The list below contains summaries of all Virginia incentives and laws related to EVs.

State Incentives

High Occupancy Vehicle (HOV) Lane Exemption

Alternative fuel vehicles (AFVs) displaying the Virginia Clean Special Fuels license plate may use Virginia HOV lanes, regardless of the number of occupants, until July 1, 2012. For HOV lanes serving the I-95/I-395 corridor, only registered vehicles displaying Clean Special Fuels license plates issued before July 1, 2006, are exempt from HOV lane requirements. For HOV lanes serving the I-66 corridor, only registered vehicles displaying Clean Special Fuels license plates issued before July 1, 2011, are exempt from HOV lane requirements. Eligible vehicles include dedicated AFVs and some hybrid electric vehicles; see the Virginia Department of Motor Vehicles website for a complete list of qualifying vehicles. The annual fee for Clean Special Fuels license plates is $25 in addition to the prescribed fee for commonwealth license plates. (Reference House Bill 1432, 2011, and Virginia Code 33.1-46.2 and 46.2-749.3)

Alternative Fuels Grants and Loans

The Alternative Fuels Revolving Fund is used to distribute loans and grants to municipal, county, and state governments to support alternative fuel vehicle (AFV) programs; pay for AFV maintenance, operation, evaluation, or testing; pay for vehicle conversions; or improve alternative fuel infrastructure. Eligible alternative fuels include electricity, hydrogen, and natural gas. Projects with a funding match are given priority in the evaluation process. (Reference Virginia Code 33.1-223.4 and 33.1-223.7)

Alternative Fuel Job Creation Tax Credit

Businesses involved in alternative fuel vehicle (AFV) and component manufacturing, alternative fueling equipment component manufacturing, AFV conversions, and advanced biofuels production are eligible for a job creation tax credit of up to $700 per full-time employee. The credit is allowed in the taxable year in which the job is created and in each of the two succeeding years in which the job is continued. Qualified AFVs include vehicles that operate using natural gas, propane, hydrogen, electricity, or advanced biofuels. This credit is effective for taxable years through December 31, 2014. (Reference Senate Bill 1236, 2011, and Virginia Code 58.1-439.1)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans

The Virginia Board of Education may use funding from the Literary Fund to provide loans to school boards that convert school buses to operate on alternative fuels or construct alternative fueling stations. (Reference Virginia Code 22.1-146)

Alternative Fuel Public-Private Partnership Solicitation

The Virginia Offices of the Secretary of Administration and the Secretary of Natural Resources released a public-private partnership solicitation outlining their interest in forming partnerships with and among alternative fuel providers, infrastructure developers, vehicle manufacturers, and other alternative fuel industry stakeholders to expand fueling infrastructure and to support alternative fuel use in the commonwealth fleet. Projects proposed under the partnership solicitation may include vehicle conversions or purchases and other elements, and must include a plan for vehicle and infrastructure maintenance. Proposers are asked to outline the financing strategy for the project. Given the commonweath's limited resources, the cost of proposals will be strongly considered. By May 2012, the Virginia Department of General Services and the Department of Mines, Minerals, and Energy must make a recommendation on whether the commonwealth should establish more formal public-private partnership agreements to accomplish the overall goal of transitioning commonwealth vehicles to alternative fuels. (Reference Executive Order 36, 2011)

Utility/Private Incentives

Plug-In Electric Vehicle (PEV) Charging Rate Reduction - Virginia Dominion Power

Virginia Dominion Power offers two rates for residential customers who own qualified PEVs: the Electric Vehicle Pricing Plan and the Electric Vehicle + Home Pricing Plan. The Electric Vehicle Pricing plan allows PEV owners to take advantage of lower rates during off-peak hours. Under this plan, customers must install an additional meter specifically for their electric vehicle supply equipment (EVSE); Dominion will provide this meter at no charge. The Electric Vehicle + Home Pricing Plan is a whole-house pricing plan in which the customer's EVSE is treated as another appliance. A new meter provided by Dominion will record energy usage in 30-minute intervals, allowing Dominion to apply pricing based on time of day and encourage customers to charge their PEV during off-peak hours as hours much as possible. For more information, see the Virginia Dominion Plug-In Electric Vehicles website.

Electric Vehicle Supply Equipment (EVSE) Incentive - Coulomb Technologies

Coulomb Technologies' ChargePoint America offers EVSE at no cost to individuals or entities in the Washington, DC metropolitan area. To be eligible for a public or commercial charging system, an entity must be located within the Washington, DC metropolitan area and in defined potentially "high use" areas, and provide public access to the charging system. Companies and municipalities may apply on the ChargePoint America Web site. To be eligible for free home charging stations, individuals living within the specified area must purchase a qualified electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV). Individuals purchasing an eligible EV or PHEV should apply for the ChargePoint America program at the dealership or with the vehicle manufacturer at the time of vehicle purchase. In most cases, installation will be paid for by the EVSE owner; 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 Washington, DC metropolitan area. To be eligible for free home charging stations, individuals living within the specified areas must purchase a qualified electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV). Individuals purchasing an eligible EV or PHEV 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.

Laws and Regulations

Authorization for Plug-In Electric Vehicle Charging Rate Incentives

The Virginia State Corporation Commission (SCC) directs public utilities to evaluate time-differentiated rates and other incentives to encourage off-peak all-electric (EV) and plug-in hybrid electric vehicle charging. The SCC may authorize public utilities to conduct pilot programs to determine the feasibility and implications of offering off-peak rates and other incentives. Pilot programs may include voluntary load control options, rate structures with financial incentives, rebates, or other incentives that offset the cost of purchasing or installing electric vehicle supply equipment for users who elect off-peak rate structures. An electric utility that participates in an approved pilot program may be entitled to recover annually the costs of its participation in any pilot program conducted on or after January 1, 2011. (Reference House Bill 2105, 2011, and Virginia Code 56-232.2)

Retail Electric Vehicle (EV) Charging Regulations

Retail EV charging services provided by an individual who is not a public utility, public service corporation, or public service company, do not constitute the retail sale of electricity if the electricity is used solely for transportation purposes and the person providing the EV charging service has procured the electricity from an authorized public utility. The Virginia State Corporation Commission may not set the rates, charges, or fees for retail EV charging services provided by non-utilities. (Reference House Bill 2105, 2011, and Virginia Code 56-1.2 and 56-232.2)

Alternative Fuel Use and Fuel-Efficient Vehicle Acquisition Requirements

All agencies and institutions must maximize biodiesel and ethanol use in commonwealth fleet vehicles except where the use of biodiesel will void warranties or incur unreasonable additional costs to the agencies. The Virginia Department of General Services (DGS) must make E85 and biodiesel blends of 20% (B20) available for agency use at specified sites selected based on the locations of commonwealth-owned flexible fuel and diesel vehicles. Agencies and institutions that independently purchase fuel must use E85 and B20 fueling sites to the maximum extent reasonably possible; vehicles used for law enforcement and emergency response are exempt from these requirements. Additionally, DGS policies and procedures must include requirements for the purchase of fuel-efficient, low emissions commonwealth-owned vehicles, as well as requirements for leasing vehicles that give a preference to compact, fuel-efficient, and low emissions vehicles. By January 1, 2012, DGS must establish a plan to replace state-owned or operated vehicles with vehicles that operate using natural gas, electricity, or other alternative fuels, to the greatest extent reasonable, considering available infrastructure, vehicle location and use, capital and operating costs, and potential for fuel savings. All state agencies and institutions must cooperate with DGS in developing and implementing the plan. (Reference House Bill 2282, 2011; Executive Order 82, 2009; and Virginia Code 2.2-1176)

State Energy Plan

The Virginia Energy Plan assesses the commonwealth's primary energy sources and recommends actions to meet the following goals: make Virginia the energy capital of the East Coast by expanding traditional and alternative energy production, jobs, and investment, and increasing energy conservation and efficiency; expand public education about Virginia's energy production and consumption, its effect on the economy, and methods to increase energy efficiency; and maximize investment in clean energy research and development. The plan includes policies to promote alternative fuel and efficient vehicle use, encourage efficient driving techniques, and reduce vehicle miles traveled. (Reference Virginia Code 67-101, 67-102, 67-500, 67-501, 67-800, 67-801)

State Electric Vehicle (EV) Plan

The Virginia Get Ready: Electric Vehicle Plan aims to establish Virginia as a leader in EV adoption. The plan details how to overcome potential barriers associated with EV adoption and charging infrastructure, specifically codes, standards and processes; a communication strategy to educate appropriate partners, stakeholders, and the general public; and potential incentives to encourage businesses and individuals to purchase EVs. For additional information, refer to the Virginia Clean Cities Get Ready website.

Alternative Fuel Research and Development Funding

The Virginia Universities Clean Energy Development and Economic Stimulus Foundation will identify, obtain, disburse, and administer funding for alternative fuel and related technology research, development, and commercialization. The funds may be distributed as grants, loans, or through other methods. (Reference Virginia Code 23-299 through 23-302)

Alternative Fuels Tax

Liquid alternative fuels used to operate alternative fuel vehicles (AFVs) are taxed at a rate of $0.175 per gallon. Alternatively, AFVs fueled from a private source are subject to a $50.00 per vehicle annual license tax. (Reference Virginia Code 58.1-2249)

Alternative Fuel License

Alternative fuel providers, bulk users, and retailers; or any person who fuels an alternative fuel vehicle from a private source that does not pay the alternative fuels tax must obtain an alternative fuel license from the Virginia Department of Motor Vehicles. (Reference Virginia Code 58.1-2244)

Alternative Fuel Vehicle (AFV) Tax Reduction

Local governments may reduce personal property taxes paid on AFVs, specifically vehicles that operate using natural gas, liquefied petroleum gas or propane, hydrogen, or electricity, including low-speed vehicles. (Reference Virginia Code 58.1-3506)

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