New York Laws and Incentives for Natural Gas

The list below contains summaries of all New York laws and incentives related to Natural Gas.

State Incentives

Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for 50% of the cost of alternative fueling infrastructure, up to $5,000. Qualifying infrastructure includes electric vehicle supply equipment and equipment to dispense fuel that is 85% or more natural gas, propane, or hydrogen. Unused credits may be carried over into future tax years. The credit expires December 31, 2022. For additional information, including information on how to claim the credit, please see the New York State Department of Taxation and Finance page. (Reference New York Tax Law 187-b)

Heavy-Duty Alternative Fuel and Advanced Vehicle Purchase Vouchers

The New York State Energy Research and Development Authority (NYSERDA) provides incentives for alternative fuel trucks and buses and diesel emission controls. Incentives are released on a staggered schedule and are distributed based on the following criteria:

Technology TypeGarage LocationEligible EntitiesIncentive Amount
Class 3-8 Battery Electric Trucks & BusesStatewide nonattainment or maintenance areaPublic, private, and non-profit fleets80% of the incremental cost, up to $150,000 per vehicle
Class 2-8 Battery Electric Trucks & BusesNew York CityPrivate and non-profit fleets80% of the incremental cost, up to $60,000 per vehicle
Class 3-8 Compressed Natural Gas Trucks & BusesNew York CityPrivate and non-profit fleets80% of the incremental cost, up to $50,000 per vehicle
Class 3-8 Hybrid Electric Trucks & BusesNew York CityPrivate and non-profit fleets80% of the incremental cost, up to $40,000 per vehicle
Diesel Emission Reduction EquipmentNew York CityPrivate and non-profit fleets80% of the cost of purchase and installation, up to $500,000 per recipient

Eligible vehicles must be in operation 70% of the time and be garaged in the program area. For information about voucher availability and vehicle eligibility, see the NYSERDA New York Truck Voucher Incentive Program website.

Alternative Fuel Vehicle Research and Development Funding

The New York State Energy Research and Development Authority's (NYSERDA) Clean Transportation Program provides funding for projects that enhance mobility, improve efficiency, reduce congestion, and diversity transportation methods and fuels through research and development of advanced technologies. NYSERDA offers annual solicitations that support new product development and demonstration as well as research on new transportation policies and strategies. NYSERDA also supports projects that demonstrate the benefits of commercially available products that are underutilized in New York State. Once developed, NYSERDA provides incentives to accelerate the market introduction of emerging technologies through its Alternative Fuel Vehicle Program. For more information and funding opportunities, see the NYSERDA Clean Transportation Program website.

Laws and Regulations

Alternative Fuel Vehicle (AFV) Access to Tunnels

An AFV powered by propane or natural gas may only use Port Authority of New York and New Jersey (PANYNJ) tunnels and the lower level of the George Washington Bridge if the vehicle conforms to applicable federal regulations and industry standards, displays required markings to identify its alternative fuel system, and has a fuel capacity that does not exceed 150 pounds. For more information, see the PANYNJ Trucker's Resources website.

Fuel Exclusivity Contract Regulation

Motor fuel franchise dealers may obtain alternative fuels from a supplier other than a franchise distributor. Any franchise provision that prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, or 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 $1,000 fine. If the distributor does offer alternative fuels, they may require the station to use their brands. (Reference New York General Business Law 199-j)

Clean Truck Port Requirements

Port drayage trucks must meet or exceed Model Year 2007 engine federal emissions standards to access the Port Authority of New York & New Jersey (PANYNJ) marine terminals. Drayage trucks operating on liquefied or compressed natural gas, electricity, or hybrid electric technology are exempt from these requirements. For purposes of this rule, drayage trucks are defined as on-road vehicles with a gross vehicle weight rating of 33,001 pounds or greater and intended to load, unload, or transport cargo from PANYNJ terminals. Additional rules apply. For more information, see the PANYNJ website.

Liquefied Natural Gas (LNG) Facility and Transportation Regulations

The New York State Department of Environmental Conservation (NYSDEC) is responsible for LNG fueling facility siting, construction, and operation. Facility permit application fees range from $100 to $1,000 depending on the facility capacity. Trucks transporting LNG must meet state and federal hazardous material transportation requirements and use routes the New York State Department of Transportation has certified. These regulations do not affect New York City's moratorium on new LNG facilities. For more information, including regulations, permit application, and supporting documentation, see the NYSDEC LNG regulation website. (Reference New York State Department of Environmental Conservation Regulations Chapter V, Part 570)

  

More Laws and Incentives

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