The list below contains summaries of all Virginia incentives and laws related to Propane (LPG).
The Virginia Department of Mines, Minerals and Energy (DMME) offers loans from a revolving loan fund for qualifying alternative fuel and advanced vehicle projects and programs. Eligible entities include state and local governments and authorities, investor-owned utilities, electric cooperatives, municipal utilities, and public bodies that received DMME grants for energy projects through the American Recovery and Reinvestment Act. Activities eligible for loans may include the purchase of alternative fuel or advanced technology vehicles, alternative fueling equipment, or vehicle energy conservation equipment.
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)
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)
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)
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)
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)
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)
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)
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 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)
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)
The Virginia Board of Education may provide for the display of signs or other markings on school buses using alternative fuels to identify the vehicle as an AFV and indicate the type of alternative fuel used. (Reference Virginia Code 46.2-1089.1)