Washington Propane Laws and Incentives
State Incentives
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Exemption
New passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated AFVs are exempt from the state sales tax. Qualified vehicles must operate exclusively on natural gas, propane, hydrogen, or electricity, meet the California motor vehicle emissions standards effective January 1, 2005, and comply with the rules of the Washington Department of Ecology. In addition, all new passenger cars, light-duty trucks, and medium-duty passenger vehicles that utilize hybrid electric technology and have a U.S. Environmental Protection Agency estimated highway fuel economy of at least 40 miles per gallon are exempt from the 0.30% motor vehicle sales tax. These tax exemptions expire on January 1, 2011. (Reference House Bill 6170, 2009, and Revised Code of Washington 82.08.020 and 82.08.809)
Alternative Fuel Loans and Grants
The Energy Freedom Program (Program) is administered by the Washington Department of Commerce in consultation with other state agencies. The Program includes the Energy Freedom Account, which provides financial and technical assistance for bioenergy production, research, and market development, primarily in the form of loans used to convert farm products, organic wastes, cellulose and biogas into electricity, biofuel, and related coproducts. The Program also includes the Green Energy Incentive Account, which provides financial assistance for alternative fueling infrastructure along Interstate corridors. Funds have yet to be appropriated for these accounts, which are set to expire June 30, 2016. (Reference House Bill 2289, 2009, and Revised Code of Washington 43.325)
Alternative Fuel Vehicle (AFV) Annual Fee
To encourage the use of nonpolluting fuels, owners of compressed natural gas and liquefied petroleum gas powered vehicles are required to pay an annual license fee, based on gross vehicle weight rating (GVWR), instead of motor fuel excise taxes. The fee is calculated as follows:
| GVWR | Fee |
|---|---|
| Less than 10,000 pounds (lbs.) | $45 |
| 10,001 - 18,000 lbs. | $80 |
| 18,001 - 28,000 lbs. | $110 |
| 28,001 - 36,000 lbs. | $150 |
| More than 36,000 lbs. | $250 |
To determine the actual annual license fee imposed by this section for a registration year, the appropriate dollar amount given in the above schedule must be multiplied by the motor vehicle fuel tax rate in cents per gallon (as established by Revised Code of Washington 82.36.025) effective on July 1 of the preceding calendar year, and the resulting amount be divided by $0.12. In addition, there is a $5 handling fee for each license issued.
(Reference Revised Code of Washington 82.38.075)
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Emission Inspection Exemption
Electric, compressed natural gas, and liquefied petroleum gas vehicles are exempt from emission control inspections. HEVs that obtain a U.S. Environmental Protection Agency fuel economy rating of at least 50 miles per gallon of gasoline during city driving are also exempt from these inspections. (Reference Revised Code of Washington 46.16.015)
State Laws and Regulations
Alternative Fuels Corridor Pilot Project
Under the Alternative Fuels Corridor Pilot Project, the Washington Department of Transportation may enter into partnership agreements with other public and private entities to use land for alternative fuel corridor pilot projects. These agreements are subject to funding availability. (Reference House Bill 1481, 2009, and Revised Code of Washington 47.38)
Alternative Fuel Vehicle (AFV) Identification Requirement
Every automobile, truck, motorcycle, motor home, or off-road vehicle that is fueled by an alternative fuel must bear a reflective placard issued by the National Fire Protection Association indicating that the vehicle is powered by an alternative fuel. (Reference Revised Code of Washington 46.37.467)
Clean Fuel Vehicle Purchasing Requirement
At least 30% of all new vehicles purchased through a state contract must be clean fuel vehicles; this percentage will increase at the rate of 5% each year. It is preferred that dedicated clean fuel vehicles be purchased. In the event that dedicated clean fuel vehicles are not available or would not meet operation requirements, conventionally powered vehicles may be converted to operate on clean fuel or dual-fuel use. (Reference Revised Code of Washington 43.19.637)
Fleet Action Plan - Seattle
The Clean Green Fleet Action Plan (PDF 444 KB) aims to increase the use of alternative fuels, reduce fleet fuel use, reduce vehicle emissions, and improve the fuel efficiency of the City of Seattle's (Seattle's) fleet. Download Adobe Reader. Seattle's long-term intent is to continue participating in the Northwest Hybrid Medium and Heavy Duty Truck Consortium and to continue increasing the use of E85 fuel and electric vehicles. Seattle met its original goal to have a fleet that is 100% clean and green, through the use of clean fuels and vehicles that have the highest fuel efficiency and the lowest emissions and meet the needs of Seattle's operations. Seattle also met the specific measures called for in the plan, including a 5% reduction in the fleet's annual fuel use by 2005 as compared to 1999.
Utilities/Private Incentives
Clean and Efficient Fleet Assistance
The Puget Sound Clean Air Agency has launched the Evergreen Fleets program, a comprehensive greening plan and certification system for fleets. Evergreen Fleets provides fleet managers with tools to help "green" public and private fleets, reduce pollution, and save money. Evergreen Fleets provides a step-by-step guide to identify the most effective way for fleet managers to green their fleets, including buying greener vehicles, switching to greener fuels, or improving fleet efficiency.
