Electricity Laws and Incentives in Arizona

The list below contains summaries of all Arizona laws and incentives related to electricity.

Laws and Regulations

Alternative Fuel Vehicle (AFV) Dealer Information Dissemination Requirement

New motor vehicle dealers must make information about AFVs and Arizona-based incentives for purchasing or leasing AFVs available to the public. For the purpose of these requirements, alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 28-4414)

Alternative Fuel Vehicle (AFV) Special License Plate

The Arizona Department of Transportation (ADOT) must issue a special license plate to dedicated AFVs. Dedicated AFVs include vehicles powered exclusively by propane, compressed natural gas, electricity, hydrogen, a blend of hydrogen with propane or natural gas. AFVs may not be capable of operating on any other fuel type. There is no limit to the number of AFV license plates ADOT can issue. The Arizona Department of Environmental Quality (ADEQ) must inspect vehicles converted to operate solely on alternative fuel and issue an Alternative Fuel Certificate before converted vehicles may receive the AFV special plate. State or agency directors who conduct activities of a confidential nature and use AFVs are exempt from the requirement to display an AFV special license plate. For more information, see the ADOT Specialty Plates website.

(Reference Arizona Revised Statutes 1-215 and 28-2416)

Electric School Bus Purchase Authorization

School districts may establish contracts for vehicles and other transportation services as an alternative to maintaining and operating a transportation program. A school district may select a pre-approved or private contractor that:

  • Provides electric school buses, electric school bus infrastructure, charging and charging management services, or electric school bus services; and,
  • Is approved by the Arizona School Bus Advisory Council.

(Reference Arizona Revised Statutes 15-923 and 28-3053)

Electric Vehicle (EV) Definition and Implementation Plan

The Arizona Corporation Commission (Commission) defines EVs as transportation vehicles that use electricity for propulsion. The Commission issued an EV policy statement that provides guidelines on EVs, charging infrastructure, and transportation electrification to utilities the Commission regulates. The policy addresses the state of EVs in Arizona, EV benefits, and barriers to adoption. This policy purposefully does not define the Commission’s role with respect to EV charging infrastructure operated by non-utilities at this time, but the Commission will explore it in the future. For more information, see the Commission’s EV policy statement and the Corporation Commission website.

(Reference Docket RU-00000A-18-0284 decision number 77044)

Electric Vehicle (EV) Parking Space Regulation

An individual is not allowed to stop, stand, or park a motor vehicle within any parking space specifically designated for parking and charging EVs unless the motor vehicle is an EV and has been issued an alternative fuel vehicle special plate or sticker. Violators may be subject to a civil penalty of at least $350.

(Reference Arizona Revised Statutes 28-876)

Federal Fleet Operation Regulations

Federal fleets based in Arizona that operate primarily in counties with a population of more than 1.2 million people must be comprised of at least 90% alternative fuel vehicles. Alternatively, federal fleets may meet acquisition requirements through alternative fuel use or apply for waivers. For the purpose of these requirements, alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 49-573)

Joint Use of Government Fueling Infrastructure

To the extent practical, an Arizona state agency or political subdivision that operates an alternative fueling station must allow vehicles, other state agencies, or political subdivisions to fuel at the station. For the purpose of this requirement, alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 49-572)

Municipal Alternative Fuel Vehicle (AFV) Acquisition Requirements

Local governments in Maricopa, Pinal, and Yavapai counties with a population of more than 1.2 million people must develop and implement vehicle fleet plans to encourage and increase the use of alternative fuels in municipal fleets. At least 75% of the total municipal fleet must operate on alternative fuels. Alternatively, municipal fleets may meet AFV acquisition requirements through biodiesel or other alternative fuel use or apply for waivers. Local governments in counties with populations of more than 500,000 people with bus fleets must purchase or convert buses to operate on alternative fuels. For the purpose of these requirements, alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, E85, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 9-500.04, 49-474.01, 49-541, and 49-571)

Public Utility Definition

A company that sells electricity for the purpose of electric vehicle charging is not considered a public service corporation. Companies may charge a flat or time-based fee for this electricity.

(Reference Arizona Revised Statutes 40-213)

Regional Electric Vehicle (REV) West Plan

Arizona joined Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming (Signatory States) in signing the REV West memorandum of understanding (MOU) to create an Intermountain West Electric Vehicle (EV) Corridor that will make it possible to seamlessly drive an EV across the Signatory States' major transportation corridors.

In 2019, the Signatory States signed a revised REV West MOU to update their EV corridor goals based on progress to date. Signatory States are committed to:
  • Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption;
  • Coordinate on EV charging station locations to achieve a consistent user experience across Signatory States;
  • Use and promote the REV West Voluntary Minimum Standards for EV charging stations and explore opportunities for implementing the standards in Signatory States;
  • Identify and develop opportunities to incorporate EV charging stations into planning and development processes such as building codes, metering policies, and renewable energy generation projects;
  • Encourage EV manufacturers to stock and market a wide variety of EVs within the Signatory States;
  • Identify, respond to, and collaborate on funding opportunities to support the development of the plan; and
  • Support the build-out of direct current (DC) fast charging stations along EV corridors through investments, partnerships, and other mechanisms.
The Signatory States maintain a coordination group composed of senior leadership from each state who meet on a quarterly basis and report on the above actions. For more information, see the REV West website.

School Transportation Advisory Council

The Student Transportation Advisory Council must advise the Arizona Department of Administration on increasing public safety, transportation efficiencies, and transportation options related to modernizing and innovating K-12 student transportation. Recommendations may include electric transportation and charging infrastructure.

(Reference Arizona Revised Statutes 28-900 and 28-3053)

State Incentives

Alternative Fuel Vehicle (AFV) Parking Incentive

An individual driving a dedicated AFV may park without penalty in parking areas that are designated for carpool operators, provided the vehicle is using alternative fuel. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 28-877)

Alternative Fuel and Alternative Fuel Vehicle (AFV) Use Tax Exemption

Arizona use taxes do not apply to natural gas or propane used in an AFV, AFVs converted to operate on alternative fuels, or the equipment used to convert a diesel vehicle to an AFV. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas.

(Reference Arizona Revised Statutes 1-215 and 42-5159)

Arizona's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Arizona Department of Transportation (ADOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Arizona’s NEVI planning process, see the ADOT Arizona Electric Vehicle Program website. To review Arizona’s NEVI plan, see the Joint Office State Plans for EV Charging website.

High Occupancy Vehicle (HOV) Lane Exemption

The Arizona Department of Transportation (ADOT) allows qualified alternative fuel vehicles (AFV) with an AFV license plate to use HOV lanes, regardless of the number of occupants. Qualified AFVs include vehicles powered exclusively by electricity, propane, natural gas, hydrogen, or a blend of hydrogen with propane or natural gas. This exemption expires September 20, 2025. For more information about vehicle eligibility and HOV access, visit the ADOT AFV website.

Reduced Alternative Fuel Vehicle (AFV) License Tax

The vehicle license tax for an AFV registered in Arizona is $4 for every $100 in assessed value. The minimum amount of the annual AFV license tax is $5. AFV assessed values are determined as follows:

  • For AFVs initially registered between January 1, 2022, and December 31, 2022, the assessed value of the AFV is 20% of the manufacturer’s suggested retail price (MSRP);
  • For each succeeding year, for the purpose of calculating the license tax, the assessed value of the AFV is reduced by 15% from the value from the preceding year.

For the purpose of this tax, AFVs include those powered exclusively by propane, natural gas, electricity, hydrogen, or a blend of hydrogen with propane or natural gas. For more information, see the ADOT AFV website. The reduced alternative fuel vehicle license tax does not apply to any vehicle purchased on or after December 31, 2022.

(Reference Arizona Revised Statutes 1-215, 28-5801, 28-5805)

Zero Emission Vehicle Emissions Test Exemption

Electric vehicles registered in Arizona are not required to complete annual emissions testing. All alternative fuel vehicles, excluding electric and hydrogen vehicles, used to commute into Phoenix or Tucson are required to be emissions tested before they are registered. For more information, visit the Arizona Department of Environmental Quality website.

(Reference Arizona Revised Statutes 49-541, 49-542 and 49-542.05)

Utility / Private Incentives

Commercial Electric Vehicle (EV) Charging Station Rebate - Salt River Project (SRP)

SRP offers rebates to commercial customers who install networked Level 2 or direct current fast charging (DCFC) stations. Government, non-profit, school, and multifamily customers are eligible for higher rebate amounts. Rebates are available in the following amounts:

EV Charging Station Type Standard Rebate Increased Rebate
Networked Level 2 $1,500 per port; up to 75 ports $4,000 per port; up to 75 ports
DCFC $15,000 per port; up to three ports $20,000 per port; up to three ports

EV charging stations must be installed between May 1, 2022, and April 30, 2023. Rebates are available on a first-come, first-served basis. For more information, including how to apply, see the SRP Business EV Charger Rebate website.

Commercial Electric Vehicle (EV) Charging Station Rebate – Tucson Electric Power (TEP)

TEP offers rebates and technical support to businesses, multifamily dwellings, and non-profit customers that purchase and install between two to six EV charging station ports. TEP will evaluate the electrical capacity and supporting EV charging infrastructure at locations that install six or more ports on a case-by-case basis. Higher rebates are available for commercial customers located in underserved communities. Underserved communities are defined as U.S. Census tracts where the average household income does not exceed 80% of the median Arizona household income. Rebates are available in the following amounts:

EV Charging Station Type Location Rebate Underserved Community Rebate
Level 2 Workplace $4,000 per port; up to 75% of project cost $6,000 per port; up to 75% of project cost
Level 2 Multi-Family Dwelling or Non-profit Organization $5,400 per port; up to 85% of project cost $9,000 per port; up to 85% of project cost
Direct Current (DC) Fast Charger All $20,500 per port; up to 75% of project cost $40,000 per port; up to 75% of project cost

For more information, including project eligibility and how to apply, see the TEP Smart EV Charging Program website.

Commercial Electrification Assessment Incentives - Salt River Project (SRP)

SRP offers commercial customers rebates of up to $20,000 for completing an electrification fleet assessment through the Fleet Advisory Services Program. Eligible fleets include may include light-, medium-, and heavy-duty vehicles. Rebate amounts vary by fleet size and vehicle classification. For more information, including eligibility requirements, visit the Electrification Rebates and Business EV Charger Rebate website.

Commercial Electrification Rebates - Salt River Project (SRP)

SRP offers commercial customers rebates for the purchase or lease of electric forklifts, electric truck refrigeration units (TRUs) charging infrastructure, truck charging bays, electric vehicle (EV) charging stations, and custom electrification projects. Equipment must be installed between May 1, 2021 and April 30, 2022. Rebate amounts for each technology type are as follows:

Technology Rebate Amounts
Class 1 or 2 Electric Forklift Up to $2,000 per forklift
Electric Forklift Charger $150 per charger
Scrubbers and Sweepers $450 per scrubber or sweeper
Scissor and Boom Lift $750 per scissor or boom lift
Electric TRU Charger $1,000 per port
Truck Stop and Truck Fleet Charging Bay $1,000 per bay
Custom Electrification Project $0.10 per annual kilowatt-hour load added by each piece of medium- or heavy-duty equipment

Applicants may receive up $50,000 in rebates. For more information, including eligibility requirements, see the SRP Electrification Rebates website.

Electric Vehicle (EV) Charging Rates - Tuscon Electric Power (TEP)

TEP offers three time-of-use (TOU) rates for residential customers with EVs. For more information, see the TEP EVs website.

Electric Vehicle (EV) Charging Station Infrastructure Support

Arizona utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.

Electric Vehicle (EV) Charging Station Pilot Program - Arizona Public Service Company (APS)

APS offers free EV charging stations, installation, maintenance, and educational services to its workplace, fleet, and multi-unit dwelling customers through the Take Charge AZ pilot program. Commercial customers that provide a 50% cost share may also be eligible. For more information, including eligibility, see the APS Take Charge AZ website.

Electric Vehicle (EV) Charging Station Rebate - Arizona Public Service Company (APS)

APS offers residential customers a $250 rebate for the purchase of a qualifying Level 2 EV charging station. Additionally, customers who enroll in the APS Smart Charge Program may earn an $25 bill credit and an additional $5 annual credit. For more information, including eligibility requirements, see the APS EV Smart Charger Rebate and SmartCharge websites.

Electric Vehicle (EV) Charging Station Rebate - Mohave Electric Cooperative (MEH)

MEH offers residential and commercial customers rebates for the purchase of networked Level 2 or direct current fast charging (DCFC) stations. Residential and commercial customers are eligible for rebates of $1,000 and $2,750, respectively. For more information, see the MEH EV Charging Rebate website.

Electric Vehicle (EV) Charging Station Rebate - Tucson Electric Power (TEP)

TEP offers residential customers a rebate of up to $500 for the purchase of a Level 2 or direct current fast charging (DCFC) station. Rebate amounts vary by EV charging station amperage. For more information, including how to apply, see the TEP EV Charger Rebates website.

Electric Vehicle (EV) Time-Of-Use (TOU) Rate - Arizona Public Service Company (APS)

APS offers a TOU rate for residential customers that own an EV. For more information, see the APS EVs and Rates, Schedules and Adjustors websites.

Electric Vehicle (EV) Time-Of-Use (TOU) Rate - Salt River Project (SRP)

SRP offers a TOU rate for residential customers that own or lease an EV. For more information, including how to enroll, see the SRP EV Price Plan website.

Residential Electric Vehicle (EV) Charging Station Rebate - Salt River Project (SRP)

SRP offers residential customers a $250 rebate for the purchase of a qualifying Level 2 EV charging station. A $50 bill credit is available for customers who join the SRP EV Community. For more information, including eligibility requirements, see the SRP EV Benefits and Savings website.

More Laws and Incentives

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