Washington Incentives and Laws for Natural Gas

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

State Incentives

Alternative Fuel Vehicle (AFV) Tax Exemption

New passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated AFVs are exempt from the state motor vehicle sales and use taxes. Qualified vehicles must operate exclusively on natural gas, propane, hydrogen, or electricity, meet the California motor vehicle emissions standards, and comply with the rules of the Washington Department of Ecology. This exemption also applies to qualified used vehicles that are modified with a U.S. Environmental Protection Agency certified aftermarket conversion, as long as the vehicle is being sold for the first time after modification. The converted vehicle must be part of a fleet of at least five vehicles owned by the same person and have an odometer reading of less than 30,000 miles. This tax exemption expires July 1, 2015. (Reference Revised Code of Washington 82.08.809 and 82.12.809)

Alternative Fuel Loans and Grants

The Washington Department of Commerce administers the Energy Freedom Program (Program) 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 co-products. The Program also includes the Green Energy Incentive Account, which provides financial assistance for alternative fueling infrastructure along Interstate corridors. As of March 2011, funds have yet to be appropriated for these accounts, which are set to expire after June 30, 2016. (Reference Revised Code of Washington 43.325)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Emissions Inspection Exemption

Electric, compressed natural gas, and propane vehicles are exempt from state emissions control inspections. HEVs that obtain a U.S. Environmental Protection Agency fuel economy rating of at least 50 miles per gallon during city driving are also exempt from these inspections. (Reference Revised Code of Washington 46.16.015)

Utility/Private Incentives

Clean and Efficient Fleet Assistance

The Puget Sound Clean Cities Coalition, in partnership with the Puget Sound Clean Air Agency, offers 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 cleaner fuels, or improving fleet efficiency.

Laws and Regulations

Provision for Alternative Fuels Corridor Pilot Projects

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. Minimum requirements apply and these agreements are subject to funding availability. (Reference Revised Code of Washington 47.38.070)

Alternative Fuel Vehicle (AFV) Labeling Requirement

Every alternative fuel automobile, truck, motorcycle, motor home, or off-road vehicle must bear a reflective placard from the National Fire Protection Association indicating that the vehicle is powered by an alternative fuel. Alternative fuels include propane and compressed natural gas. (Reference Revised Code of Washington 46.37.467)

Alternative Fuel Vehicle (AFV) Annual Fee

Owners of compressed natural gas and propane 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:

To determine the actual annual license fee imposed per registration year, multiply the appropriate dollar amount given in the above schedule by the motor vehicle fuel tax rate in cents per gallon effective on July 1 of the preceding calendar year, and divide the resulting amount by $0.12. In addition, there is a $5 handling fee for each license issued.

(Reference Revised Code of Washington 82.36.025 and 82.38.075)

Clean Fuel Vehicle Purchasing Requirement

At least 30% of all new vehicles purchased through a state contract must be clean fuel vehicles, based on the Washington Department of Ecology definitions. The percentage of clean fuel vehicles purchased must increase at the rate of 5% each year. Dedicated clean fuel vehicles are preferred. 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)

Low Carbon Fuel and Fuel-Efficient Vehicle Acquisition Requirement

Washington state agencies must consider purchasing ultra low carbon fuel vehicles or converting conventional vehicles to use ultra low carbon fuels when financially comparable over the vehicle's useful life. Ultra low carbon fuels include hydrogen, biomethane, electricity, or at least 90% natural gas. State agencies must phase in fuel economy standards for motor pools and leased conventional vehicles to achieve an average fuel economy of 36 miles per gallon for passenger vehicle fleets by 2015. State agencies must purchase ultra low carbon fuel vehicles or, when purchasing new conventional vehicles, achieve an average fuel economy of 40 miles per gallon (mpg) for light-duty passenger vehicles and 27 mpg for light-duty vans and sport utility vehicles. When calculating average fuel economy, emergency response vehicles, passenger vans with a gross vehicle weight rating of 8,500 pounds or greater, off-road vehicles, ultra low carbon fuel vehicles, and vehicles driven less than 2,000 miles per year are excluded. (Reference Revised Code of Washington 43.41.130)

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