Washington Incentives and Laws

Last Updated May 2009

Washington is the home of the Puget Sound Clean Cities Coalition (http://pugetsoundcleancities.org). Coordinator contact information is listed in the Points of Contact section.

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)

Electric Vehicle (EV) Battery and Infrastructure Tax Exemptions

Public lands used for installing, maintaining, and operating EV infrastructure are exempt from leasehold excise taxes until January 1, 2020. Additionally, the state sales and use taxes do not apply to EV batteries; labor and services for installing, repairing, altering, or improving EV batteries and EV infrastructure; and the sale of property on land used for EV infrastructure. (Reference House Bill 1481, 2009, and Revised Code of Washington 82.29A, 82.08, and 82.12)

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)

Point of Contact

Peter Moulton
Senior Energy Policy Specialist - Bioenergy Coordinator
Washington Department of Community, Trade, and Economic Development
Phone (360) 725-3116
petermo@cted.wa.gov

Electric and Plug-In Hybrid Electric Vehicle Demonstration Grants

The Vehicle Electrification Demonstration Grant Program is administered by the Washington Department of Community, Trade, and Economic Development. Eligible applicants are state agencies, public school districts, public utility districts, or political subdivisions of the state. Grants may be awarded to projects involving the purchase or conversion of existing vehicles to plug-in hybrid electric vehicles or battery electric vehicles for use in an applicant's fleet or operations; additional eligibility requirements apply. (Reference Revised Code of Washington 43.325.110)

Biofuels Retail Tax Exemption

Fuel delivery vehicles and machinery, equipment, and related services that are used for the retail sale or distribution of a biodiesel blend or E85 motor fuel are exempt from state retail fuel sales and use taxes until July 1, 2015. (Reference Revised Code of Washington 82.08.955 and 82.12.955)

Biofuels Tax Deduction

A tax deduction is available for the sale or distribution of biodiesel or E85 motor fuel. This deduction is available until July 1, 2015. (Reference Revised Code of Washington 82.04.4334)

Biofuels Production Tax Exemption

Qualifying buildings, equipment, and land used in the manufacturing of alcohol fuel, biodiesel, or biodiesel feedstocks are exempt from state and local property and leasehold excise taxes for a period of six years. In addition, a reduced Business and Occupation tax rate of 0.138% applies to individuals engaged in alcohol fuel, biodiesel fuel, or biodiesel feedstock manufacturing and is available until July 1, 2009. (Reference Revised Code of Washington 82.04.260, 82.29A.135, and 84.36.635)

Idle Reduction Tax Incentives

Tax incentives are available for the infrastructure and services that support the use of auxiliary power for vehicles with gross vehicle weight ratings of more than 14,000 pounds through on-board or stand-alone electrification systems. These incentives include a business and occupation tax deduction and a sales and tax exemption for machinery and equipment used to provide auxiliary power at truck stops. Sales and use tax exemptions are also available for parts and labor necessary to enable heavy-duty diesel trucks to accept power for onboard electrification systems. These exemptions expire July 1, 2015. (Reference Revised Code of Washington 82.04.4338, 82.08.815, 82.08.825, 82.15.815, and 82.12.825)

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:

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

Renewable Fuel Standard

At least 2% of all diesel fuel sold in Washington must be biodiesel or renewable diesel. This requirement will increase to 5% 180 days after the Director of the Washington Department of Agriculture has determined that in-state feedstocks and oil-seed crushing capacity can meet a 3% requirement. Renewable diesel is defined as a diesel fuel substitute produced from non-petroleum renewable sources, including vegetable oils and animal fats, meets the federal registration requirements for fuels and fuel additives and ASTM specification D975. Additionally, at least 2% of the total gasoline sold in the state must be denatured ethanol. The ethanol requirement may be increased if the Director of the Department of Ecology determines that this increase would not jeopardize continued attainment of federal Clean Air Act standards and the Director of the Department of Agriculture determines that the state can economically support the production of higher ethanol blends. All state agencies with jurisdiction over renewable fuel infrastructure, specifically storage, blending, and dispensing equipment, are required to expedite related application and permitting processes. The Governor may suspend these requirements by Executive Order if the standard is temporarily technically or economically infeasible, or poses a significant risk to public safety. (Reference House Bill 1010, 2009, and Revised Code of Washington 19.112.010, 19.112.110 through 19.112.180, and 43.21C)

Electric Vehicle (EV) Infrastructure Development

In an effort to foster economic growth and reduce emissions, the Washington Legislature encourages EV use and the development of EV infrastructure. Any regional transportation planning organization containing a county with a population greater than one million must collaborate with state and local governments to promote EV use, invest in EV infrastructure, and seek federal or private funding for these efforts. Collaborative planning efforts may include: 1) developing short-term and long-term plans outlining how state, regional, and local governments may construct EV charging locations and ensure that the infrastructure can be electrically supported; 2) supporting public education and training programs on EVs; 3) developing an implementation plan for counties with a population greater than 500,000 to have 10% of public and private parking spaces ready for EV charging by December 31, 2018; and 4) developing model ordinances and guidance for local governments for site assessment and installing EV infrastructure. (Reference House Bill 1481, 2009)

Electric Vehicle (EV) Charging Infrastructure Availability

Recognizing that it is in the State of Washington's interest and to the benefit of the public to encourage the use of EVs to reduce emissions and improve air quality, publicly and privately owned EVs may be charged at state office locations where the vehicles are used for state business, commuter vehicles, or conducting business with the state. Additionally, contingent upon funding, the state must install electrical outlets suitable for charging EVs in each of the state's fleet parking and maintenance facilities as well as every state-operated highway rest stop by December 31, 2015. (Reference House Bill 1481, 2009, and Revised Code of Washington 43.01.250, 43.19.648, and 47.38)

Local Government Electric Vehicle (EV) Charging Infrastructure Requirements

A jurisdiction meeting specific location criteria (as defined in Revised Code of Washington 35.63) must develop regulations to allow the use of EV charging infrastructure in all areas except critical areas or areas zoned for residential or resource use. These regulations must be developed six months after the Washington Department of Community, Trade, and Economic Development distributes model ordinances, development regulations, and guidance for local governments for site assessment and installing EV infrastructure, or by July 1, 2010, whichever is later. This requirement is contingent upon federal funding. Additionally, cities or municipalities are authorized to adopt incentive programs to encourage retrofitting of existing structures capable of charging EVs. (Reference House Bill 1481, 2009, and Revised Code of Washington 35.63, 35A.63, 36.70, and 36.70A)

Electric Vehicle (EV) Charging and Battery Exchange Station Regulations

State and local governments are authorized to lease land for installing, maintaining, and operating EV charging stations or battery exchange stations for up to 50 years. Additionally, the installation of battery charging and exchange stations is categorically exempt from the Washington Environmental Policy Act. (Reference House Bill 1481, 2009, and Revised Code of Washington 79.13 and 43.21C)

Electric Vehicle (EV) Infrastructure Definitions

EV infrastructure is defined as structures, machinery, and equipment necessary and integral to support an EV, including battering charging stations, rapid charging stations, and battery exchange stations. A battery charging station is defined as an electrical component assembly or cluster of component assemblies designed specifically to charge batteries within an EV. A rapid charging station is defined as an industrial grade electrical outlet that allows for faster recharging of EV batteries through higher power levels. A battery exchange station is defined as a fully automated facility that will enable an EV with a swappable battery to enter a drive lane and exchange the depleted battery with a fully charged battery through a fully automated process. Infrastructure must meet or exceed any applicable state building standards, codes, and regulations. (Reference House Bill 1481, 2009, and Revised Code of Washington 19.28)

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)

State Agency Coordination to Address Climate Change

The Director of the Washington Department of Ecology must work with the Washington Departments of Commerce and Transportation to assess whether the California low-carbon fuel standard or other state standards would help Washington meet its greenhouse gas emission reduction target of 1990 levels by 2020. The Secretary of the Washington Department of Transportation must also work in consultation with the Washington Departments of Ecology and Commerce and other interest groups to address low or zero emission vehicles. Additionally, the Office of the Governor will work with state agencies to seek funding to implement a project for the electrification of the West Coast interstate highway and associated metropolitan centers and to purchase electric vehicles and install public fueling and/or charging infrastructure for electric and other high-efficiency, zero- or low-carbon vehicles. (Reference Executive Order 09-05, 2009)

Ethanol Dispenser Labeling Requirement

All motor fuel devices dispensing alcohol blended gasoline must be labeled with the alcohol product name (e.g., ethyl alcohol) and the alcohol content. The statement must be posted in letters measuring at least half an inch high. (Reference Washington Administrative Code 16-657-040)

Biofuel Quality Program

Through the Biofuels Standards Program (Program), the Washington State Department of Agriculture tests and assesses biofuel quality and quantity in order to resolve any quality issues before the product reaches the consumer. The Program is currently sampling biofuel throughout Washington on a quarterly basis, monitoring and tracking the quality of biofuel, and working with producers and manufacturers to help supply the highest biofuel quality fuel available to consumers. The goal of the program is to create equity in the biofuel marketplace for refiners, suppliers, distributors, and retailers, and protect consumers. (Reference Revised Code of Washington 19.112)

Point of Contact

Kirk Robinson
Program Manager
Washington State Department of Agriculture, Weights and Measures Program
Phone (360) 902-1856
krobinson@agr.wa.gov
http://agr.wa.gov/bioenergy/standards.aspx

E85 Definition

E85 motor fuel is defined as an alternative fuel that is a blend of ethanol and hydrocarbon, of which the ethanol portion is 75-85% denatured fuel ethanol by volume and complies with the most current ASTM specification D5798. (Reference Revised Code of Washington 19.112.010 and 82.04.4334)

Biodiesel Definition

Biodiesel fuel is defined as a mono alkyl ester of long chain fatty acids derived from vegetable oils or animal fats for use in compression-ignition engines and meets the requirements of the ASTM specification D6751 in effect as of January 1, 2003. (Reference Revised Code of Washington 19.112.010 and 82.04.4334)

Biodiesel Storage Regulations

Underground storage tank regulations apply to biodiesel blends but not to 100% biodiesel (B100). An owner changing the use of an underground storage tank from storage of diesel to B100 must communicate the change to the Washington State Department of Ecology and must first have a site assessment performed by a certified site assessor. (Reference Washington Administrative Code 173-360)

Point of Contact

Mike Blum
Underground Storage Tank Coordinator
Washington State Department of Ecology
Phone (360) 407-6913
Fax (360) 407-7154
mblu461@ecy.wa.gov
http://www.ecy.wa.gov/pubs/0309103.pdf

Low Emission Vehicle Standards

Washington has adopted the California motor vehicle emission standards in Title 13 of the California Code of Regulations, effective January 1, 2005, with the exception of California's zero emission vehicle program. The Washington Department of Ecology will adopt rules to implement these emission standards for passenger cars, light-duty trucks, and medium-duty passenger vehicles. Rules developed and adopted by the Washington Department of Ecology will be effective only for those model years for which the state of Oregon has adopted the California motor vehicle emission standards. Recognizing the minimum phase-in period of three vehicle model years for adoption of California motor vehicle emission standards, the implementing rules will include a system of credit banking for manufacturers. Beginning with the model year in which the new standards become effective, each manufacturer's fleet of passenger cars and light-duty trucks delivered for sale in the state of Washington must proportionately conform to the zero emission vehicle requirements of California motor vehicle emission standards, including credit banking provisions using Washington specific vehicle numbers. Motor vehicles with a model year equal to or later than the first model year for which new vehicles sold to Washington state residents are required to comply with California motor vehicle emission standards are exempt from state emission inspections. (Reference Revised Code of Washington 70.120A.010 and 70.120A.020)

Idle Reduction Weight Exemption

The state's maximum weight limitations do not apply to a vehicle equipped with a fully functional idle reduction system designed to reduce fuel use and emissions from engine idling. The vehicle may exceed the weight limitations by up to 400 pounds. (Reference Washington Administrative Code 468-38-073)

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)

Medium-Speed and Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs and medium-speed electric vehicles are defined as self-propelled, electrically powered four-wheeled motor vehicles that are permitted on roads having speed limits of up to 35 miles per hour (mph). NEVs can reach speeds greater than 20 mph but not more than 25 mph. Medium-speed electric vehicles can reach speeds greater than 30 mph but not more than 35 mph. NEVs and medium-speed electric vehicles must be in compliance with the national highway and traffic safety administration standards in Title 49 of the Code of Federal Regulations, Part 571.500. (Reference Revised Code of Washington 46.04.295, 46.04.357 and 46.61.723 through 46.61.725)

Biodiesel Use Requirement

At least 20% of all diesel fuel used by state agency vehicles must be biodiesel. The Washington Department of General Administration must assist state agencies by coordinating the purchase and delivery of biodiesel if requested by a state agency, using long-term contracts if necessary, to secure a sufficient and stable supply of biodiesel. For state agencies complying with the U.S. Environmental Protection Agency's ultra-low sulfur diesel (ULSD) mandate, at least 2% biodiesel must be used as an additive to USLD for lubricity, provided that the use of a lubricity additive is appropriate and that performance and cost are comparable with other available lubricity additives. (Reference Revised Code of Washington 43.19.642 and 43.19.646)

Alternative Fuel Use Requirement

Effective June 1, 2015, all state and local government agencies are required to use 100% biofuels or electricity to operate all publicly owned vehicles. To phase in this requirement, all state agencies must achieve 40% biofuel or electricity use by June 1, 2013. To allow the motor vehicle fuel needs of state and local government to be satisfied by Washington-produced biofuels, the Department of General Administration and local governments may contract in advance and execute contracts with public or private producers and suppliers for the purchase of appropriate biofuels. (Reference House Bill 1481, 2009, and Revised Code of Washington 43.19.647 and 43.19.648)

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)

State Fleet Petroleum Reduction

State agencies must take all reasonable actions to achieve a 20% reduction in petroleum use in all state and privately owned vehicles used for state business by September 1, 2009. Strategies to achieve this goal include energy-efficient use of state resources and giving priority to the purchase and use of hybrid electric and other fuel-efficient, low emission vehicles (those that achieve a minimum of 30 miles per gallon and meet U.S. Environmental Protection Agency Tier 2 emission standards). Additionally, beginning with the 2009 Model Year, vehicles sold in the state must meet more stringent emissions standards. Furthermore, the state is directed to support the growth of biofuel feedstocks and the blending and distribution of biofuels for use by state fleets and the public. (Reference Executive Order 05-01, 2005, and Executive Order 07-02, 2007)

Biofuels Production Contracts

Conservation districts and public development authorities are authorized to enter into crop purchase contracts to produce, sell, and distribute biodiesel produced from Washington feedstocks, cellulosic ethanol, and cellulosic ethanol blended fuels. Additionally, municipal utilities and public utility districts are authorized to produce and distribute biodiesel, ethanol, and ethanol blended fuels, as well as enter into crop purchase contracts for the purpose of producing biodiesel produced from Washington feedstocks, cellulosic ethanol, and cellulosic ethanol blended fuels for use by the utilities and the public. (Reference Revised Code of Washington 35.21.465, 35.92.440, 54.04.190, and 89.08.570)

Climate Change Initiative

The State of Washington has committed to reduce greenhouse gas emissions in the state to 1990 levels by 2020. To reach this goal, the state will do the following: work to ensure that cars sold in the state meet stringent emissions standards, beginning with Model Year 2009 vehicles; work with farmers, entrepreneurs, fuel distributors, and retailers to ensure that biofuels feedstocks are grown in Washington; ensure that refiners, blenders, and distributors of biofuels create jobs in the state; and strive to make it possible for the public to purchase fuel blends that reduce dependence on imported oil. (Reference Executive Order 07-02, 2007)

Regional Climate Change Initiative

The West Coast Governors' Global Warming Initiative was established by the governors of Washington, Oregon, and California to help facilitate regional and statewide reduction of greenhouse gas emissions, including those attributed to vehicles. This initiative led to the production of the West Coast Report on Global Warming (PDF 734 KB) and also provided a foundation for the development of the Western Climate Initiative, a collaboration launched in 2007 by states and provinces in western North America to develop regional strategies to address climate change. Download Adobe Reader

Global Warming Mitigation Initiative - King County

As directed by local Executive Orders and the King County Acting Locally Initiative, King County departments are required to increase their use of "green" power and biodiesel. At least 50% of King County's total energy use must be generated from renewable energy sources by 2012 for non-transit uses and 2020 for transit uses. Additionally, the amount of biodiesel blends used in the county's vehicles must be increased from the current use of B5 to B20 such that the county uses 2.5 million gallons of biofuels annually.

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.

Point of Contact

Stephanie Meyn
Clean Cities Coordinator
Puget Sound Clean Cities Coalition
Phone (206) 689-4055
Fax (206) 343-7522
stephaniem@pscleanair.org
http://pugetsoundcleancities.org/

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.

Point of Contact

Stephanie Meyn
Clean Cities Coordinator
Puget Sound Clean Cities Coalition
Phone (206) 689-4055
Fax (206) 343-7522
stephaniem@pscleanair.org
http://pugetsoundcleancities.org/

Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Stephanie Meyn Clean Cities Coordinator	Puget Sound Clean Cities Coalition	Phone:(206) 689-4055 Fax:(206) 343-7522
Kay Kelly Project Manager	U.S. Department of Energy, Golden Office	Phone:(303) 275-6037 Fax:
Peter Moulton Senior Energy Policy Specialist - Bioenergy Coordinator	Washington Department of Community, Trade, and Economic Development	Phone:(360) 725-3116 Fax:
Kirk Robinson Program Manager	Washington State Department of Agriculture, Weights and Measures Program	Phone:(360) 902-1856 Fax:
Kim Lyons Renewable Fuels Specialist	Washington State University Energy Program	Phone:(360) 956-2083 Fax:(360) 236-2083
Dean Lookingbill Transportation Director	Southwest Washington Regional Transportation Council	Phone:(360) 397-6067 x5208 Fax:(360) 397-6132
Kelly McGourty Program Manager	Puget Sound Regional Council	Phone:(206) 971-3601 Fax:(206) 587-4825
Tim Sexton Air Quality, Acoustics, and Energy Policy Manager	Washington State Department of Transportation	Phone:(206) 440-4549 Fax:(206) 440-4805
Bob Saunders Air Quality Program Strategic Planner	Washington State Department of Ecology	Phone:(360) 407-6888 Fax:(360) 407-7534
Mike Blum Underground Storage Tank Coordinator	Washington State Department of Ecology	Phone:(360) 407-6913 Fax:(360) 407-7154
Chris Wiley Green Fleets Coordinator	City of Seattle Department of Fleets and Facilities	Phone:(206) 233-7912 Fax:(206) 684-0656
Julie Shain Fleet Manager (Central/Eastern Washington)	U.S. General Services Administration	Phone:(208) 321-9150 Fax:(208) 321-9518