California Laws and Incentives for Alternative Fuel Purchaser

The list below contains summaries of all California laws and incentives related to Alternative Fuel Purchaser.

State Incentives

Alternative Fuel and Vehicle Incentives

The California Energy Commission (CEC) administers the Alternative and Renewable Fuel and Vehicle Technology Program (ARFVTP) to provide financial incentives for businesses, vehicle and technology manufacturers, workforce training partners, fleet owners, consumers, and academic institutions with the goal of developing and deploying alternative and renewable fuels and advanced transportation technologies. The CEC must prepare and adopt an annual Investment Plan for the ARFVTP to establish funding priorities and opportunities that reflect program goals and to describe how program funding will be used to complement other public and private investments. Funded projects include:

  • Commercial alternative fuel vehicle (AFV) demonstrations and deployment;
  • Alternative and renewable fuel production;
  • Research and development of alternative and renewable fuels and innovative technologies;
  • AFV manufacturing;
  • Workforce training; and
  • Public education, outreach, and promotion.
For more information, see the ARFVTP website. (Reference Assembly Bill 8, 2013; California Vehicle Code 5205.5; California Health and Safety Code 44270-44274.7; and California Code of Regulations, Title 13, Chapter 8.1)

Utility/Private Incentives

Plug-In Electric Vehicle (PEV) Charging Rate Reduction - LADWP

The Los Angeles Department of Water and Power (LADWP) offers a $0.025 per kilowatt discount for electricity used to charge PEVs during off-peak times. Residential customers who install a separate time-of-use meter panel will also receive a $250 credit. For more information, see the LADWP Electric Vehicle Incentives website.

Plug-In Electric Vehicle (PEV) Charging Rate Reduction - SCE

Southern California Edison (SCE) offers a discounted rate to customers for electricity used to charge PEVs. Two rate schedules are available for PEV charging during on- and off-peak hours, the Home & Electric Vehicle Plan and the Electric Vehicle Plan. For more information, see the SCE Electric Vehicle Residential Rates website.

Clean Vehicle Electricity and Natural Gas Rate Reduction - PG&E

Pacific Gas & Electric (PG&E) offers a discounted Residential Time-of-Use rate for electricity used for plug-in electric vehicle charging and natural gas vehicle (NGV) home fueling appliances. Special rates are also available for natural gas that residential customers compress using home fueling appliances. For more information, see the PG&E EV Rate Options and NGV Rates websites.

Plug-In Electric Vehicle (PEV) and Natural Gas Infrastructure Charging Rate Reduction - SDG&E

San Diego Gas & Electric (SDG&E) offers lower rates to customers for electricity used to charge PEVs. SDG&E's PEV Time-of-Use rates are available in two variations: EV-TOU-2 bills home and vehicle electricity use on a single meter; and EV-TOU bills vehicle electricity use separately, requiring the installation of a second meter. Lower rates are also available to customers who own a natural gas vehicle and use a qualified compressed natural gas fueling appliance at home. For more information about PEV Time-of-Use rates, see the SDG&E EV Rates and NGV Rates website.

Natural Gas Rate Reduction - SoCalGas

Southern California Gas Company (SoCalGas) offers natural gas at discounted rates to customers fueling natural gas vehicles (NGVs). Schedule G-NGVR, Natural Gas Service for Home Refueling of Motor Vehicles, is available to residential customers; G-NGV, Natural Gas Service for Motor Vehicles, is available to commercial customers. For more information, see the SoCalGas NGVs website.

Biofuel Volume Rebate Program - Propel Fuels

Propel Fuels offers a rebate to qualified fleet customers for monthly purchases of more than 500 gallons of biodiesel blends and E85. Fleet customers must purchase the fuel directly from Propel public retail locations using the Propel CleanDrive Fleet Card. The program offers a rebate of $0.03 per gallon for purchases of less than 1,000 gallons of biofuel per month, and $0.05 per gallon for purchases of 1,000 gallons or more per month. The rebate is applied at the end of each monthly billing cycle. For more information, see the Propel Clean Fleet Solution website.

Laws and Regulations

Alternative Fuel Tax

The excise tax imposed on compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG or propane) used to operate a vehicle can be paid through an annual flat rate sticker tax based on the following vehicle weights:

Unladen WeightFee
All passenger cars and other vehicles 4,000 pounds (lbs.) or less$36
More than 4,000 lbs. but less than 8,001 lbs.$72
More than 8,000 lbs. but less than 12,001 lbs.$120
12,001 lbs. or more$168

Alternatively, owners and operators may pay an excise tax on CNG of $0.07 per 100 cubic feet measured at standard pressure and temperature, $0.06 per gallon of LNG, and $0.06 per gallon of propane. The excise tax on ethanol and methanol fuel blends containing up to 15% gasoline or diesel fuel is half of the current tax on gasoline and diesel.

(Reference California Revenue and Taxation Code 8651-8651.8)