New York Laws and Incentives
Listed below are the summaries of all current New York laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:
Plug-In Electric Vehicle (PEV) Rebate Program
The New York State Energy Research and Development Authority (NYSERDA) provides rebates of up to $2,000 for the purchase or lease of a new eligible plug-in electric vehicle. An eligible vehicle must:
- Be a four-wheeled motor vehicle manufactured for use on public streets, roads, and highways,
- Have a gross vehicle weight rating of not more than 8,500 pounds,
- Have a maximum speed of at least 55 mph, and
- Be propelled at least in part by an electric motor and associated power electronics that draws electricity from a hydrogen fuel cell or from a battery that has a battery capacity of at least four kilowatt-hours, and is capable of being charged from an external source of electricity.
Rebate amounts vary based on a vehicle's all-electric range and manufacturer's suggested retail price. For more information, see NYSERDA's Drive Clean Rebate website.
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 Type||Garage Location||Eligible Entities||Incentive Amount|
|Class 3-8 Battery Electric Trucks & Buses||Statewide nonattainment or maintenance area||Public, private, and non-profit fleets||80% of the incremental cost, up to $150,000 per vehicle|
|Class 2-8 Battery Electric Trucks & Buses||New York City||Private and non-profit fleets||80% of the incremental cost, up to $60,000 per vehicle|
|Class 3-8 Compressed Natural Gas Trucks & Buses||New York City||Private and non-profit fleets||80% of the incremental cost, up to $50,000 per vehicle|
|Class 3-8 Hybrid Electric Trucks & Buses||New York City||Private and non-profit fleets||80% of the incremental cost, up to $40,000 per vehicle|
|Diesel Emission Reduction Equipment||New York City||Private and non-profit fleets||80% 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 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)
Biofuel Production Tax Credit
Biofuel producers in New York State may qualify for a state tax credit of $0.15 per gallon of biodiesel (B100) or denatured ethanol produced after the production facility has produced, and made available for sale, 40,000 gallons of biofuel per year. The maximum annual credit available is $2.5 million per taxpayer for no more than four consecutive taxable years per production facility. If the taxpayer is in a partnership or is a shareholder of a New York S corporation, the maximum credit amount is applied at the entity level, so the aggregate credit allowed to all partners or shareholders may not exceed $2.5 million. Additional requirements may apply. This credit expires December 31, 2019. (Reference New York Tax Law 28*2 and 187-c)
Clean Truck Replacement Program
The Regional Truck Replacement Program (Program) through the Port Authority of New York & New Jersey provides funding for up to 50% of the cost to replace a heavily emitting truck, up to $25,000. Eligible recipients include independent owner operators and licensed motor carriers servicing the port with drayage trucks equipped with Model Year 1994 to 2003 engines. Funding is limited to two replacement trucks per eligible applicant. Additional rules and conditions apply. For more information, see the Program website.
Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemption
Any motor vehicle equipped with qualified idle reduction technology may exceed the state's vehicle weight limits by up to 400 pounds (lbs.) to compensate for the additional weight of the idle reduction technology. The vehicle's operator must maintain written certification of the device's weight and proof that it is fully functional and must provide this proof to a law enforcement officer upon request. Any NGV may exceed the limits by up to 2,000 lbs. (Reference New York Vehicle and Traffic Law 385)
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.
Zero Emission Vehicle (ZEV) and Fueling Infrastructure Rebates for Municipalities
The New York State Department of Environmental Conservation's (NYSDEC) Municipal ZEV Rebate Program offers rebates to cities, towns, villages, counties, and New York City boroughs for the purchase or lease of eligible ZEVs and the installation of eligible ZEV refueling infrastructure. To qualify, ZEVs must be purchased or leased at a dealership within the state, and leases must be at least 36 months in length. ZEV fueling infrastructure must be installed primarily for public refueling. Rebate amounts are as follows:
|Maximum Rebate Amount|
|ZEV Purchase or Lease||$5,000 per vehicle (50 miles or greater electric range); $2,500 per vehicle (10 to 50 mile electric range)|
|Electric Vehicle Supply Equipment (EVSE)||$250,000 per facility|
|Hydrogen Fuel Cell Infrastructure||$250,000 per facility|
A single municipality may receive up to 50% of the total available funds towards ZEVs and EVSE, and up to 75% of the total available funds for hydrogen fuel cell infrastructure. Rebates are available on a first-come, first-served basis through May 31, 2018, or until funds are exhausted, whichever occurs first. Additional rules and conditions apply. For more information, including eligible projects and application instructions, see the NYSDEC's Funding for Municipalities website.
Electric Vehicle Emissions Inspection Exemption
Vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections. For more information, see the New York Vehicle Inspection Program (NYVIP2) website. (Reference New York State Department of Environmental Conservation Regulations Chapter III, Part 217-6)
High Occupancy Vehicle (HOV) Lane Exemption
Through the Clean Pass Program, eligible plug-in electric and hybrid electric vehicles may use the Long Island Expressway HOV lanes, regardless of the number of occupants in the vehicle. Vehicles must display the Clean Pass vehicle sticker, which is available from the New York State Department of Motor Vehicles. This exemption expires September 30, 2019. For a list of eligible vehicles and Clean Pass sticker application instructions, see the Clean Pass Program website.
Plug-in Electric Vehicle (PEV) Toll Discount Program
Vehicles eligible for the New York Clean Pass Program, including PEVs and hybrid electric vehicles, receive a discounted toll rate on all Port Authority of New York & New Jersey (PANYNJ) off-peak hour crossings. Vehicles must register with E-ZPass New York. Drivers of qualified vehicles may also receive a 10% discount on established E-ZPass accounts with proof of registration. This exemption expires September 30, 2019. For more information, including a complete list of eligible vehicles and application instructions, see the PANYNJ E-ZPass and Green Pass Discount Plan websites.
Plug-in Electric Vehicles (PEVs) Discount - EZ-EV
EZ-EV, an Exelon program, offers discounts for the purchase or lease of select PEVs through participating dealers. For information on discount amounts, eligible makes and models, and availability, see the EZ-EV website.
Electric Vehicle Supply Equipment (EVSE) Rebates - EV Connect
The New York State Energy Research and Development Authority, in partnership with EV Connect, offers rebates for municipalities, businesses, workplaces, retail locations, universities, schools, hospitals, and public parking facilities to purchase and install General Electric EVSE. Rebate amounts are up to $8,000 per EVSE unit. EV Connect will also provide EVSE management services. EVSE must be installed within the state of New York. For more information, including application instructions, see the EV Connect New York State of Opportunity website.
Plug-In Electric Vehicle (PEV) Voluntary Time of Use (TOU) Rate Price Guarantee - Con Edison
Under the voluntary TOU rate, residential customers will pay a reduced price for electricity used during the designated off-peak period. Customers who register a PEV with Con Edison and are participating in the voluntary TOU rate are guaranteed to pay no more than the standard electric rate for one year after registration with Con Edison. For more information, including how to enroll, see the Electric Vehicle Rates website.
Laws and Regulations
Plug-In Electric Vehicle (PEV) Charging Tariff
Each investor-owned utility selling electricity must file a tariff with the New York Public Service Commission (PSC) by April 1, 2018 to allow a customer to purchase electricity solely for the purpose of charging a PEV. The utility must make the tariff available to customers within 60 days of PSC approval. At any time, the utility may make revisions to the tariff based on changing costs or conditions. Each utility providing a PEV charging tariff must report periodically to the PSC on the number of customers who have participated in the tariff, the total amount of electricity sold under the tariff, and any other data required by the PSC. (Reference Assembly Bill 288, 2017, and New York State Public Service Law Section 66-O)
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)
Zero Emission Vehicle (ZEV) Deployment Support
New York joined California, Connecticut, Maryland, Massachusetts, Oregon, Rhode Island, and Vermont in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle supply equipment (EVSE) and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs. Each state also committed to:
- Support ZEV commercialization through consistent statewide building codes and standards for installing EVSE, streamlined metering options for homes equipped with EVSE, opportunities to reduce vehicle operating costs, increased electric system efficiency through time-of-use electricity rates and net metering for electric vehicles, and integrating ZEVs with renewable energy initiatives;
- Establish ZEV purchase targets for governmental agency fleets, explore opportunities for coordinated vehicle and fueling station equipment procurement, work to provide public access to government fleet fueling stations, and include commitments to use ZEVs in state contracts with auto dealers and car rental companies where appropriate;
- Evaluate the need for, and effectiveness of, monetary incentives to reduce the upfront purchase price of ZEVs as well as non-monetary incentives, such as high occupancy vehicle lane access, reduced tolls, and preferential parking, and pursue these incentives as appropriate;
- Work to develop uniform standards to promote ZEV consumer acceptance and awareness, industry compliance, and economies of scale, including adopting universal signage, common methods of payment and interoperability of EVSE networks, and reciprocity among states for non-monetary ZEV incentives;
- Cooperate with vehicle manufacturers, electricity and hydrogen providers, the fueling infrastructure industry, corporate fleet owners, financial institutions, and others to encourage ZEV market growth;
- Share research and develop a coordinated education and outreach campaign to highlight the benefits of ZEVs, including collaboration with related national and regional initiatives; and
- Assess and develop potential deployment strategies and infrastructure requirements for the commercialization of hydrogen fuel cell vehicles.
For more information, see the Multi-State ZEV Task Force website.
Autonomous Vehicle (AV) Testing and Operation Authorization
The New York State Department of Motor Vehicles (DMV) may approve demonstrations of AVs on public roads for the purpose of evaluating the potential impacts of AV technology on safety, traffic control, traffic enforcement, emergency services, and other areas the DMV identifies. To be considered, a proposed AV demonstration must meet, at minimum, the following requirements:
- The demonstration application includes a law enforcement interaction plan, which provides information for law enforcement and first responders regarding how to interact with the AV in an emergency or traffic enforcement situation;
- The demonstration takes place under the supervision of the New York State Police and in a manner consistent with their direction;
- A licensed vehicle operator is seated inside the AV while it is being operated on public highways; and
- The AV meets all applicable Federal Motor Vehicle Safety Standards and New York State Motor Vehicle Inspection Standards.
An AV is defined as any vehicle that is equipped with a technology that has the capability to operate the vehicle without the direct control of the driver.
By June 1, 2018, the DMV, in partnership with the State Police, must submit a report to the governor and other relevant government officials including information about each of the demonstrations that have been authorized. For more information, including how to apply for a testing and demonstration permit, see the DMV AV Technology website. (Reference Senate Bill 7508-C, 2018)
School Bus Idle Reduction Policy
School bus drivers or drivers of other vehicles that the school district owns, leases, or contracts must turn off the vehicle engine while loading or unloading passengers on school grounds or near a school. Exceptions include idling for mechanical work, to maintain a comfortable temperature in the vehicle, or in emergency evacuations where it is necessary to operate wheelchair lifts. Drivers should also instruct pupils on the necessity to load and unload promptly, park their vehicles diagonally to minimize exhaust from entering another bus or the school, and turn off their vehicle during sporting or other events. School districts must provide personnel with a notice outlining these provisions no later than five days after the start of the school year. These regulations remain effective until June 30, 2019. For more information, see the New York State Education Department website. (Reference New York Education Law 3637)
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.
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)
Electric Corporation Definition
According to the New York Public Service Commission (PSC), electric vehicle charging stations are not defined as an electric plant, therefore the owners and operators of charging stations are not defined as an electric corporation. The PSC does not have jurisdiction over publicly available electric vehicle charging stations, the owners and operators of the stations, or the transactions between the owners and operators of the stations, as long as the owners and operators do not fall within the definition of an electric corporation. (Reference New York State Department of Public Service Case 13-E-0199)
Electric Drive Vehicle Taxicabs
Plug-in electric and hybrid electric vehicles that meet all requirements for use as a for-hire vehicle may be used as taxicabs. (Reference Assembly Bill 7963, 2017, and New York City Administrative Code 19-502 and 19-533).
Low Emission Vehicle (LEV) Standards
Any new light-duty passenger car, light-duty truck, or medium-duty passenger vehicle sold, leased, imported, delivered, purchased, or acquired in New York State must be certified to the California emissions standards set forth in Title 13 of the California Code of Regulations. Original equipment manufacturers (OEMs) must meet a fleet average greenhouse gas emissions standard, as defined in the California Code of Regulations, which will become more stringent for each model year through 2025. In addition, each OEM's fleet of passenger cars and light-duty trucks produced and delivered for sale in the state must meet at least the same percentage requirements for Zero Emission Vehicles (ZEVs) set forth in Title 13 of the California Code of Regulations, Section 1962. (Reference New York State Department of Environmental Conservation Regulations Chapter III, Part 218)
Aftermarket Alternative Fuel Vehicle (AFV) Conversion Requirements
Conventional original equipment manufacturer vehicles altered to operate on propane, natural gas, methane, ethanol, or electricity are classified as aftermarket AFV conversions. All vehicle conversions must meet current applicable California Air Resources Board standards for aftermarket conversions. (Reference New York State Department of Environmental Conservation Regulations Chapter III, Subpart 218)
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.
Low-Speed Vehicle Definition
A low-speed vehicle is defined as a limited use automobile or truck that has a maximum speed greater than 20 miles per hour (mph) but not more than 25 mph and has a gross vehicle weight rating less than 3,000 pounds. All low-speed vehicles must comply with the safety standards established in Title 49 of the U.S. Code of Federal Regulations, section 571.500. (Reference New York Vehicle and Traffic Law 121-f)
Heavy-Duty Idle Reduction Requirement
Heavy-duty vehicles with a gross vehicle weight rating greater than 8,500 pounds may not idle for more than five consecutive minutes when the vehicle is not in motion. Exceptions apply, including when idling is necessary due to traffic conditions; to maintain temperatures (under regulation) for passenger comfort; to provide auxiliary power or for maintenance purposes; to recharge batteries in hybrid electric vehicles; and for emergency service vehicles. (Reference New York State Department of Environmental Conservation Regulations Chapter III, Subpart 217-3)