Washington Laws and Incentives for Propane (LPG)

The list below contains summaries of all Washington laws and incentives related to Propane (LPG).

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 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 sales tax exemption expires July 1, 2015. The use tax exemption is not available for vehicles purchased after July 1, 2015. A vehicle purchased or converted before July 1, 2015, is exempt from the use tax until it is retired or changes hands. (Reference Revised Code of Washington 82.08.809 and 82.12.809)

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

Dedicated 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 46.16A.060)

Utility/Private Incentives

Clean and Efficient Fleet Assistance

Western Washington Clean Cities and the Puget Sound Clean Air Agency administer 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.

Point of Contact
Stephanie Meyn
Clean Cities Coordinator
Western Washington Clean Cities Coalition
Phone: (206) 689-4055
Fax: (206) 343-7522

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:

Less than 10,000 pounds (lbs.)$45
10,001 - 18,000 lbs.$80
18,001 - 28,000 lbs.$110
28,001 - 36,000 lbs.$150
More than 36,000 lbs.$250

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. There is an additional $5 handling fee for each license issued.

(Reference Revised Code of Washington 82.36.025 and 82.38.075)

State Vehicle Purchasing Guidance

The Washington Department of Enterprise Services must develop guidelines and criteria for the purchase of high mileage gasoline vehicles as well as alternative fuel vehicles and systems that reduce the overall costs and energy use in the state. The guidance should include investigations into all opportunities to aggregate the purchasing of clean technologies with state and local governments, as well as federal fuel economy standards. (Reference Revised Code of Washington 39.26.090, 43.19.570 and 43.19.663)