New York Incentives and Laws
Last Updated November 2008
New York is the home of the Capital District (Albany) Clean Communities (www.cdtcmpo.org/cdcc/cdcc.htm), Clean Communities of Central New York, Genesee Region Clean Communities (www.grcc.us), Greater Long Island Clean Cities Coalition, Inc. (www.gliccc.org), New York City, and Clean Communities of Western New York, Inc. (www.cleancommunitiesofwny.org) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.
State Incentives
Alternative Fueling Infrastructure Tax Credit
A state tax credit is available for the installation of alternative fuel vehicle fueling infrastructure located in the state. The tax credit is equal to 50% of the cost of the infrastructure. This includes infrastructure for storing or dispensing an alternative fuel into the fuel tank of a motor vehicle powered by that fuel, as well as infrastructure used for recharging electric vehicles. Eligible alternative fuels include natural gas, liquefied petroleum gas, hydrogen, electricity, and any other fuel that is a least 85% ethanol or other alcohol. This credit does not apply after December 31, 2010. (Reference New York Tax Law 187-b)
Biofuel Production Tax Credit
Biofuel producers in New York State are eligible for a state tax credit of up to $0.15 per gallon of biodiesel (B100) or ethanol produced after the production facility has produced and made available for sale 40,000 gallons of biofuel per year. The maximum credit available is $2.5 million per taxpayer per taxable year for no more than four consecutive taxable years per production facility. (Reference New York Tax Law 28)
Biofuel Fueling Infrastructure Funding
The objective of the Biofuel Station Initiative Program (Program), administered by the New York State Energy Research and Development Authority (NYSERDA), is to increase the number of retail fueling stations offering E85 and biodiesel blends in the state. The Program provides a reimbursement of up to 50% of the cost of new installations of biofuel dispensing equipment, storage tanks, and associated piping equipment, up to $50,000 per site. Applications are accepted from owners and operators of public access retail fueling stations in the state. Funding is limited, and the Program does not cover the cost of facility permitting or engineering. Cost-shared technical assistance is also available for the following: technical review of design and construction specifications for the biofuel equipment; analysis of existing and proposed equipment; preparation and submission of requests for biofuel specific permits and waivers to local and state code officials; and training of facility staff.
Point of Contact
Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/
Alternative Fuel Bus and Infrastructure Funding
The Clean Fueled Bus Program, administered by the New York State Energy Research and Development Authority (NYSERDA), provides funds to state and local transit agencies, municipalities, and schools for up to 100% of the incremental cost of purchasing new alternative fuel buses and associated infrastructure. For the purposes of this program, an alternative fuel bus is any motor vehicle with a seating capacity of 15 or more passengers used for the transportation of persons on public highways that is powered by compressed natural gas (CNG) (including dual-fuel technology with a minimum of 75% use of CNG during typical operation), propane, methanol, hydrogen, biodiesel, or ethanol, or uses electricity as a primary motive force (e.g., hybrid electric). Project selection is based on the emissions reduction potential.
Eligible infrastructure projects include construction and installation of equipment to fuel or recharge alternative fuel buses including, but not limited to, battery charging stations and natural gas fueling stations and depots. To be considered for funding, the project must be necessary to introduce or expand a fleet of alternative fuel buses and include only cost items directly associated with making the facility capable of dispensing the fuel.
Funding for this program comes from the Clean Water/Clean Air Bond Act.
Point of Contact
Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Funding
The New York State Clean Cities Challenge, administered by the New York State Energy Research and Development Authority (NYSERDA), awards funds to members of New York's Clean Cities Coalitions that acquire AFVs or install AFV fueling or recharging infrastructure. Funds are awarded on a competitive basis, and can be used to cost-share up to 75% of the proposed project, including the incremental cost of purchasing AFVs, the cost of installing fueling and recharging equipment, and the incremental costs associated with bulk alternative fuel purchases. Consideration, in ranking order, will be given to projects that:
- Offset the greatest amount of petroleum per year;
- Result in the greatest emissions reduction;
- Affect Clean Air non-attainment areas or areas targeted by the Energy Policy Act (EPAct) regulations;
- Result in new fueling or recharging facilities;
- Benefit more than one fleet;
- Provide a high level of visibility and innovation; and/or
- Comprise unique public/private partnerships.
Point of Contact
Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/
Alternative Fuel Vehicle (AFV) Technical Assistance
The New York State Clean Cities Sharing Network (Network), which provides technical, policy, and program information about AFVs, is managed by the New York State Energy Research and Development Authority (NYSERDA). Membership is open to all organizations, businesses, and individuals interested in AFVs and members are notified about upcoming funding opportunities and events. The Network publishes information about tax incentives, fueling stations, case studies, and contact information for the Clean Cities program and other industry leaders. The Network also organizes and sponsors technical workshops.
Point of Contact
Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Technical Assistance
The New York State Energy Research and Development Authority's (NYSERDA) Flexible Technical (Flex-Tech) Assistance Program provides assistance to fleet managers who want to evaluate the feasibility and cost of adding AFVs and fueling facilities to their operations. Low-cost training for vehicle mechanics is also available through certified institutions.
Point of Contact
Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/
Alternative Fuel Product Development Funding
The New York State Energy Research and Development Authority's (NYSERDA) Transportation Research Program sponsors a wide variety of product development efforts aimed at improving efficiency and increasing the use of alternative fuels. Program Opportunity Notices are issued periodically to solicit proposals for cost-share development efforts leading to the manufacture and sale of innovative products that provide energy, environmental and economic development benefits. For more information, see the NYSERDA Transportation Projects Web site.
High Occupancy Vehicle (HOV) Lane Access
Through the Clean Pass Program, eligible hybrid electric vehicles (HEVs) may use the Long Island Expressway HOV lanes, regardless of the number of occupants in the vehicle. Vehicles must display the Clean Pass vehicle sticker, available from the New York State Department of Motor Vehicles. For a list of eligible vehicles, see the Clean Pass Program Web site.
Alternative Fuel and Advanced Technology Vehicle Funding - New York City
The New York City Private Fleet Alternative Fuel/Electric Vehicle Program, administered by the New York State Energy Research and Development Authority (NYSERDA) in cooperation with New York City Department of Transportation, helps private companies and non-profit organizations operating vehicles in New York City to acquire alternative fuel and advanced technology vehicles. Funds are awarded on a competitive basis for up to 50% of the incremental cost of purchasing new light-duty natural gas vehicles (NGVs) or electric vehicles (EVs), and up to 80% of the incremental cost for purchasing new or converting medium- and heavy-duty NGVs (dedicated and bi-fuel), EVs, or hybrid electric vehicles. In addition, up to 50% of the costs for alternative fueling or EV charging station equipment and installation may be eligible.
Point of Contact
Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/
Compressed Natural Gas (CNG) Taxi Funding - New York City
The New York City Clean Fuel Taxi Program provides up to $8,500 towards the purchase of new CNG taxis cabs or the conversion of gasoline powered taxi cabs to operate on CNG.
Point of Contact
Patrick Bolton
Senior Project Manager, Alternative Fuels & Vehicles
NYSERDA
Phone (518) 862-1090 x3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/
State Laws and Regulations
Fuel Exclusivity Contract Regulation
Motor fuel franchise dealers are permitted to obtain alternative fuels from a supplier other than a franchise distributor. Any provision of a franchise which prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, and compressed natural gas from a firm or individual other than the distributor is null and void as it pertains to that particular alternative fuel if the distributor does not supply or offer to supply the dealer with the alternative fuel. Distributors who violate the law by entering into exclusivity contracts will be subject to a fine of $1000. If the distributor does offer renewable fuels, they are allowed to require the station to use their brands. (Reference New York General Business Law 199-j)
Alternative Fueling Infrastructure Feasibility Study
The New York State Energy Research and Development Authority (NYSERDA), the New York State Thruway Authority, and the New York Department of Environmental Conservation have undertaken a study regarding the feasibility and construction of alternative fueling facilities at gasoline stations located along the New York State Thruway. Once finalized, NYSERDA will prepare and deliver to the governor a report that will include, but not be limited to, the following: 1) the current availability of the various alternative fuels and associated technologies which use alternative fuels for transportation purposes; 2) the projected growth in the availability and use of alternative fuel vehicles (AFVs) for the next 10 years; 3) the current and projected price of the various alternative fuels, AFVs, and alternative fueling equipment for the next 10 years as well as the current and projected cost of operation of alternative fuel vehicles, including incremental cost comparisons; 4) the feasibility of each thruway public facility containing a gasoline station to accommodate one or more alternative fueling facilities. (Reference Assembly Bill 11331, 2006)
Alternative Fuel Tax Exemption and Rate Reduction
E85, compressed natural gas, and hydrogen fuel that is used exclusively to operate the engine of a motor vehicle is exempt from state sales and use taxes. Additionally, cities and counties are authorized to reduce the sales and use tax imposed on B20 to 85% of the diesel fuel tax rate. This exemption and rate reduction expires September 1, 2011. (Reference New York Tax Law 1111 and 1115)
Biofuels Use Requirement
To the extent that gasoline powered state agency vehicles use central fueling stations, all state agencies and public authorities must use E85 in flexible fuel vehicles (FFVs) whenever it is feasible to do so. The Governor's Clean Fueled Vehicles Council, chaired by the Commissioner of the Office of General Services (OGS) and comprised of the fleet managers of state agencies and public authorities, has taken steps to ensure that, to the greatest extent possible, all FFVs in the state fleet that can use E85 will do so. As a result, E85 stations are available to serve state vehicles, and the New York State Thruway Authority expects to open additional stations along the New York State Thruway, which will also serve the public. At least 10% of fuels used in the state fleet must be biodiesel by 2012. The OGS statewide biodiesel contract enables state vehicles to obtain biodiesel fuel in 41 counties. All E85 and biodiesel fueling locations available to New York State vehicles are listed on the OGS Alternative Fueled Vehicles Program Web site. (Reference Executive Order 9, 2008, and Executive Order 142, 2005 (PDF 238KB)) Download Adobe Reader
Point of Contact
Clean Fueled Vehicles Council
Alternative Fueled Vehicles Program
New York State Office of General Services
Phone (518) 473-6594
Fax (518) 486-1734
nys.alt.fuel@ogs.state.ny.us
Alternative Fuel Vehicle (AFV) Acquisition Requirements
State agencies and other affected entities must procure increasing percentages of AFVs as part of their annual vehicle acquisition plans; hybrid electric vehicles qualify under these requirements. By 2010, 100% of all new light-duty vehicles must be AFVs, with the exception of designated specialty, police, or emergency vehicles. State agencies and other affected entities that operate medium- and heavy-duty vehicles must implement strategies to reduce petroleum consumption and emissions by using alternative fuels and improving vehicle fleet fuel efficiency. State agencies and other affected entities may substitute the use of 450 gallons of B100 for the acquisition of one AFV. Alternatively, the use of 2,250 gallons of B20 or use of 9,000 gallons of B5 may also be substituted in place of purchasing one AFV. No more than 50% of a given state agency fleet's AFV purchase requirement may be met by substituting B100, B20, or B5. (Reference Executive Order 9, 2008, Executive Order 142, 2005 (PDF 238KB), and (Executive Order 111, 2001) Download Adobe Reader
Low Emission Vehicle (LEV) Standards
Each Original Equipment Manufacturer's (OEM) sales fleet of passenger cars and light-duty trucks produced and delivered for sale in New York State must be made up of at least the same percentage of Zero Emission Vehicles (ZEVs) set forth in Title 13 of the California Code of Regulations, Section 1962. An alternative compliance program has been instituted to expand the options available to OEMs in order to meet the mandate. Under this program, OEMs must make the following commitments:
- By Model Year (MY) 2008, 7% of vehicles must be partial (PZEV), 2% advanced technology PZEV, and 1% ZEV, which could be battery-electric or fuel cell vehicles;
- Any ZEV or PZEV models available in California must also be made available in New York State.
Beginning in MY 2009, no individual or company may sell, lease, import, deliver, purchase, or acquire any new light-duty passenger car, light-duty truck, or medium-duty passenger vehicle in the state unless the vehicle is certified to the California emission standards stated in the California Code of Regulations. Also beginning in MY 2009, OEMs must meet a fleet average greenhouse gas emissions standard, as defined in the California Code of Regulations, which will become more stringent each year through 2016.
(Reference New York State Department of Environmental Conservation Regulations Chapter III - Air Resources, Part 218)
Low-Speed Vehicle Definition
A low-speed vehicle is defined as a limited use automobile which has a maximum speed greater than 20 miles per hour (mph), but not greater than 25 mph, or a truck which has a maximum speed greater than 20 mph by not greater than 25 mph and whose Gross Vehicle Weight Rating is less than 3,000 pounds. All low-speed vehicles must comply with the safety standards established in Title 49 of the Code of Federal Regulations, Section 571.500. (Reference New York Vehicle and Traffic Law 121-f)
Alternative Fuel Vehicle (AFV) Acquisition Requirements - New York City
At least 80% of the New York City light-duty, non-emergency fleet, and 20% of bus fleets operated in New York City are required to be AFVs. On an annual basis, the mayor is required to submit a report detailing the city's purchase of alternative fuel buses and light-duty vehicles during the immediately preceding fiscal year. (Reference New York City Administrative Code 24-163.1 and 24-163.2)
Alternative Fuel Use Requirement - New York City
Any bi-fuel motor vehicle owned or operated by the city must use the specified alternative fuel to operate the vehicle. This regulation does not apply for vehicles that are no longer mechanically able to operate on the alternative fuel, or if the vehicle manufacturer recommends that the vehicle operate on gasoline or diesel fuel for a specified period of time. (Reference New York City Administrative Code 24-163.1)
Vehicle Emissions and Fuel Economy Requirements - New York City
Each light- and medium-duty vehicle purchased or leased by the city must achieve the highest vehicle emissions rating available within the applicable model year that meets the requirements for the intended use by the city of such vehicle. Additionally, the city must achieve the following minimum percentage increases in the average fuel economy for all light-duty vehicles purchased by the city, relative to the average fuel economy for all such vehicles purchased by the city during the fiscal year beginning July 1, 2004:
| Fiscal Year (FY) | Minimum Increase |
|---|---|
| Beginning July 1, 2008 | 10% |
| Beginning July 1, 2009 | 12% |
| Beginning July 1, 2010, and July 2, 2011 | 15% |
| Beginning July 1, 2012, July 1, 2013, and July 1, 2014 | 18% |
| Beginning July 1, 2015, and thereafter | 20% |
(Reference New York City Administrative Code 24-163.1)
Heavy-Duty Idle Reduction Requirement
Heavy-duty vehicles (defined as vehicles with a Gross Vehicle Weight Rating exceeding 8,500 pounds) are prohibited from idling for more than five consecutive minutes when the vehicle is not in motion. Exceptions may apply, including the following: idling due to traffic conditions; to maintain temperatures (under regulation) for passenger comfort; idling to provide auxiliary power or for maintenance purposes; hybrid electric vehicles idling to recharge batteries; and idling of emergency service vehicles. (Reference New York State Department of Environmental Conservation Regulations Chapter III - Air Resources, Subpart 217-3)
School Bus Idle Reduction Requirement
All public school districts must ensure that every driver of a school bus or other school vehicle turn off the vehicle's engine while waiting for passengers to load or unload. Certain exceptions are allowed when necessary for heating, mechanical or emergency circumstances. School districts are also required to provide school personnel with an annual notice of the provisions of the law and regulations, providing an overview of the regulations and the available education materials. For more information, see the State Education Department Web site. This regulation expires on June 30, 2013. (Reference Senate Bill 5973, 2007)
Idle Reduction Requirement - New York City
No person may permit the engine of a motor vehicle, other than a legally authorized emergency vehicle, to idle for more than three minutes while parking, standing, or stopping, unless the engine is used to operate a loading, unloading, or processing device. When the ambient temperature is greater than 40 degrees Fahrenheit, no person may permit the engine of a bus to idle while parking, standing or stopping at any terminal point, along an established route. In addition, a vehicle may not idle for more than one minute if adjacent to any school. Exemptions are allowed for school buses for the following: mechanical work; maintaining an appropriate temperature for passenger comfort; or in emergency evacuations where necessary to operate wheelchair lifts. (Reference New York City Administrative Code 24-163)
Idle Reduction Requirement - New Rochelle
Light- and heavy-duty vehicles may not idle for more than five minutes, subject to the exceptions for heavy-duty vehicles specified in the State of New York Codes, Rules, and Regulations. (Reference Code of the City of New Rochelle, New York, Local Law No. 8-2004)
Idle Reduction Requirement - Bethlehem Central School District
The Bethlehem Central School District has adopted a no-idling policy on school grounds for school buses and private vehicles. School buses must be turned off while waiting to load or unload passengers on school grounds. Exemptions are allowed, within the limits of state law, when necessary for mechanical or cold weather reasons. Privately owned passenger vehicles are limited to idling for no more than 30 seconds while on school grounds. For more information, see the Bethlehem Central School District Web site.
Compressed Natural Gas (CNG) Use Requirement - Smithtown
The town of Smithtown requires all contracted residential refuse collection operators to switch from diesel vehicles to vehicles that operate exclusively on CNG. For more information, see the Smithtown Web site.
Utilities/Private Incentives
Natural Gas Vehicle (NGV) and Infrastructure Rebates and Technical Assistance
National Grid offers a NGV incentive program that provides rebates for NGVs on a case-by-case basis and special competitive rates for compressed natural gas (CNG) fueling. National Grid will also help secure CNG fueling station financing, and provide technical assistance and other services to NGV fleets on a case-by-case basis. Financial awards are made depending on the fleet size, amount of fuel used, and vehicle type.
Point of Contact
Ronald J. Gulmi
Natural Gas Vehicle Program Manager
National Grid
Phone (516) 545-5164
Fax (516) 545-3250
rgulmi@keyspanenergy.com
http://www2.nationalgridus.com/
Points of Contact:
| NAME/EMAIL/TITLE | AGENCY | PHONE/FAX |
|---|---|---|
| Deborah Stacey Clean Cities Coordinator | Capital District (Albany) Clean Communities | Phone:(518) 458-2161 Fax:(518) 459-2155 | Barry Carr Clean Cities Co-Coordinator | Clean Communities of Central New York | Phone:(315) 299-2863 Fax:(315) 635-5345 | Joseph Barry Clean Cities Co-Coordinator | Clean Communities of Central New York | Phone:(315) 498-2548 Fax:(315) 498-7200 | Bill Pauly Clean Cities Coordinator | Clean Communities of Western New York, Inc. | Phone:(716) 435-5261 Fax: | Steve Carr Clean Cities Co-Coordinator | Clean Communities of Western New York, Inc. | Phone:(315) 278-6928 Fax: | David Keefe Clean Cities Coordinator | Genesee Region Clean Communities | Phone:(585) 301-2433 Fax: | Rita Ebert Clean Cities Coordinator | Greater Long Island Clean Cities Coalition, Inc. | Phone:(631) 969-3700 x25 Fax:(631) 969-4489 | Lou Calcagno Clean Cities Coordinator | New York City and Lower Hudson Valley Clean Communities | Phone:(212) 487-6820 Fax:(212) 442-7348 | Mike Scarpino Project Manager | U.S. Department of Energy, National Energy Technology Laboratory | Phone:(412) 386-4726 Fax:(412) 386-5835 | Patrick Bolton Senior Project Manager, Alternative Fuels & Vehicles | NYSERDA | Phone:(518) 862-1090 x3322 Fax:(518) 862-1091 | Ronald J. Gulmi Natural Gas Vehicle Program Manager | National Grid | Phone:(516) 545-5164 Fax:(516) 545-3250 | Clean Fueled Vehicles Council Alternative Fueled Vehicles Program | New York State Office of General Services | Phone:(518) 473-6594 Fax:(518) 486-1734 | John Shipman Chief Automotive Engineer | Con Edison, CNG Fleet Information | Phone:(718) 204-4009 Fax:(718) 777-5461 | Kerry-Jane King Senior Transportation Specialist | New York Power Authority, Research and Technology Development | Phone:(914) 390-8207 Fax:(914) 681-6860 | Joe Darling Director, Office of Fleet Administration and Support | New York Department of Transportation | Phone:(518) 457-2875 Fax:(518) 457-0413 | Matthew Laurita Environmental Engineer, Region 2 | U.S. Environmental Protection Agency | Phone:(212) 637-3895 Fax:(212) 637-3901 |
