The list below contains summaries of all Virginia incentives and laws related to Natural Gas.
The Alternative Fuels Revolving Fund is used to distribute loans and grants to municipal, county, and commonwealth government agencies 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 vehicles (AFVs) displaying the Virginia Clean Special Fuels license plate may use Virginia HOV lanes, regardless of the number of occupants. 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 85, 2012, and Virginia Code 33.1-46.2 and 46.2-749.3)
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 Virginia Code 58.1-439.1)
Qualified employers are eligible for a $500 tax credit for each new green job created that offers a salary of at least $50,000, for up to 350 jobs per employer. The credit is allowed for the first five years that the job is continuously filled. For the purposes of this tax credit, a green job is defined as employment in industries relating to renewable or alternative energy, including hydrogen and fuel cell technology, landfill gas, and biofuels. The tax credit expires on January 1, 2015. (Reference Virginia Code 58.1-439.12:05)
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 emissions inspection program, which requires biennial inspections of motor vehicles, does not apply to vehicles powered by compressed or liquefied natural gas, liquefied petroleum gas (propane), hydrogen, a combination of compressed natural gas and hydrogen, or electricity. Qualified HEVs with U.S. Environmental Protection Agency fuel economy ratings of at least 50 miles per gallon (city) are also exempt from the emissions inspection program unless remote sensing devices indicate the HEV may not meet current emissions standards. (Reference Virginia Code 46.2-1177 through 46.2-1178)
The AFV Conversion Fund (Fund) is created to assist commonwealth agencies with the incremental cost of commonwealth-owned AFVs, both original equipment manufacturer vehicles and aftermarket conversions. Funding may be used in conjunction with or as matching funds for any eligible federal grants for the same purpose. The Virginia Department of General Services and the Department of Mines, Minerals and Energy must establish guidelines for contributions and reimbursements from the Fund for the purchase or conversion of commonwealth-owned vehicles. The Fund will include appropriations from the Virginia General Assembly as well as donations, grants, in-kind contributions, and other funding. (Reference (Reference Senate Bill 485, 2012, and Virginia Code 2.2-1176.1)
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. 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)
Virginia Department of General Services (DGS) policies and procedures must include guidelines for the purchase of fuel-efficient, low emissions, commonwealth-owned vehicles, as well as guidelines for leasing vehicles that give a preference to compact, fuel-efficient, and low emissions vehicles. By January 1, 2012, DGS was required to establish a plan to replace commonwealth-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 commonwealth agencies and institutions must cooperate with DGS in developing and implementing the plan. (Reference Virginia Code 2.2-1176 and Executive Order 19, 2010)
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 23-300 through 23-303)
Liquid alternative fuels used to operate on-road vehicles are taxed at a rate of $0.175 per gallon. EVs registered in Virginia are subject to a $50.00 per vehicle annual license tax. (Reference House Bill 1248, 2012, and 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 State Corporation Commission may refrain from regulating and setting rates, charges, and fees for retail CNG service provided by corporations other than public service corporations. (Reference Virginia Code 56-232.2)
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)
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)