Recent State Updates
Listed below are new and recently updated state laws, incentives, and regulations related to alternative fuels and advanced vehicles.
Kentucky
In addition to standard vehicle registration fees, EV and plug-in hybrid EV owners must pay an annual fee in 2025 of $126 and electric motorcycle owners must pay an annual fee of $63. These fees are adjusted annually based on the National Highway Construction Cost Index 2.0.
(Reference Kentucky Revised Statutes 138.475)
Maine
Efficiency Maine’s Off-Peak Charging EV Rebates provides rebates to Maine residents, businesses, government entities, and Tribal governments for the purchase of new or used EVs when paired with an eligible off-peak Level 2 charger selected by Efficiency Maine and installed where the vehicle is regularly parked. Hybrid vehicles, including plug-in hybrids, are not eligible. The off-peak charger must be purchased before purchasing the eligible vehicle to receive the vehicle incentive. From 2026 to 2028, Efficiency Maine must ensure that at least half of all funding for EV rebates is distributed to low- and moderate-income residents. Rebate amounts are based on participant type and in 2025 are:
| Type of Vehicle | Qualified Low-Income Individuals | Qualified Moderate-Income Individuals | Businesses and Organizations | Government Entity, Tribal Government, and Nonprofits |
|---|---|---|---|---|
| New | $7,500 | $2,000 | $2,000 | $2,000 |
| Used | $3,500 | $1,500 | $1,500 | $1,500 |
Vehicles must be purchased (leases are ineligible) from a participating
Maine dealership or directly from the manufacturer. Vehicles must meet
price caps of $80,000 for pickup trucks or commercial vans, $55,000 for
other new vehicles, and $40,000 for used vehicles model year 2019 or
newer with fewer than 72,000 miles. This incentive can be paired with
Efficiency Maine’s Off-Peak
Charger Rebate. For more information, including eligible vehicles
and preapproval requirements, see Efficiency Maine’s EV
and Charger Incentives website.
(Reference Maine Revised Statutes Title 35-A, Section 10126 and House Bill HP611, 2025)
Efficiency Maine offers a $300 point-of-sale discount on Emporia brand, off-peak chargers. The discounted charger operates normally during off-peak hours and automatically pauses charging during peak hours (5–9 p.m. weekdays). If customers need to charge during peak hours, they can override the default for one day at a time. However, the default of only charging during off-peak hours cannot be permanently turned off. This incentive can be paired with Efficiency Maine’s Off-Peak Charging Electric Vehicle Rebate. For more information, including eligibility details, see Efficiency Maine’s Off-Peak Charger Incentives website.
Beginning Jan. 1, 2026, condominium and residential associations may not prohibit or restrict the installation or use of EV chargers in designated parking spaces. Unit owners must be able to apply to an executive board to install EV chargers in a common parking space, with the written approval of each unit owner who has use of the common parking. Unit owners must obtain approval for installation and comply with the association’s rules, including providing proof of insurance, covering all installation and electricity costs, and ensuring compliance with health, safety, and zoning standards. The homeowner is responsible for ongoing maintenance, repair, replacement, and any associated damages or liabilities, and must disclose the charger’s existence to prospective buyers. Associations may install EV chargers in common areas for shared use, create new parking spaces for EV charging, or require removal of a charger if a property is sold unless the buyer agrees to take ownership. Additional conditions apply.
(Reference Senate Bill SP457, 2025 and Maine Revised Statutes Title 33, Chapter 10, Section 576-A)
South Dakota
A licensed LPG vendor may sell LPG exempt from state fuel tax to a licensed LPG user or to a purchaser who owns an LPG-propelled motor vehicle when the fuel is delivered into a bulk storage tank that has no liquid transfer line capable of fueling a motor vehicle. The vendor must certify the tank was inspected and that no such transfer line existed at the time of inspection. Purchasers using a bulk storage tank equipped with a liquid transfer line must obtain a propane (LPG) user license before receiving LPG. For licensing and procedures, see the South Dakota Department of Revenue Motor Fuel Division website. For more information, including how to obtain a propane user license, see the South Dakota Department of Revenue Motor Fuel Excise Tax website.
(Reference South Dakota Statutes 10-47B-167)
Retailers that sell ethanol fuel blends containing at least 15% ethanol (E15) are eligible for a tax refund of $0.05 per gallon. For more information, including how to apply, see the South Dakota Department of Revenue Motor Fuel Excise Tax website.
An ethanol blend is defined as a blended motor fuel containing ethyl alcohol that is at least 99% pure, derived from agricultural products, and blended exclusively with gasoline.
(Reference South Dakota Statutes 10-47B-3 and 10-47B-192)
The Ethanol Infrastructure Incentive Fund is established to provide grants for the installation and expansion of ethanol fueling infrastructure in South Dakota. The fund may be used to:
- Award incentive grants to motor fuel retail dealers for the purchase or installation of ethanol blender pumps, associated piping, storage systems, and related equipment for public motor fuel sales;
- Provide grants to retail dealers for the purchase of pumps and dispensing equipment authorized for gasoline blends containing up to 85% ethanol (E85);
- Award incentive grants to support the purchase of flex-fuel vehicles (FFVs);
- Encourage the increased use of ethanol statewide; and
- Support installation of additional infrastructure for ethanol sales and distribution.
(Reference South Dakota Codified Laws 10-47B-164.1)
An entity that owns or operates a facility supplying electricity to the public exclusively to charge electric vehicles is not an electric utility, provided it purchases the electricity from the retail electric utility serving the assigned service area. EV charging stations selling or providing electricity under this provision are not subject to the civil fine for overcharging under state utility rate law.
(Reference South Dakota Statutes 49-34-14 and 49-34A-116)
Utah
The Utah Department of Environmental Quality (DEQ) Conversion to Alternate Fuel Grant Program provides grants to businesses and government entities that install conversion equipment on eligible vehicles that allows the vehicles to operate on alternative fuel. Award recipients are required to pass these savings along to the individual who purchases the converted vehicle. Grants may cover 50% of the cost of conversion, up to $2,500. Eligible vehicles must operate solely on alternative fuel and may include on-road vehicles and off-road equipment. Eligible alternative fuels include propane, natural gas, and electricity. For more information, see the DEQ Conversion to Alternative Fuel Grant Program website. The alternative fuel vehicle conversion grant is available through July 1, 2029.
(Reference Utah Code 19-1-403.3, 19-2-301 through 19-2-304, and 63I-1-259)
The Utah Department of Workforce Services Community Impact Fund provides grants and loans to entities that are subdivisions of the state (e.g., counties, towns, water districts, school districts) for infrastructure, including facilities for storing, distributing, or producing hydrogen for use as a fuel in zero emission motor vehicles; or a plant for the production of zero emission hydrogen fueled trucks. Zero emission motor vehicles refers to the tailpipe emissions.
(Reference Utah Code 35A-8-302)
The Utah Department of Environmental Quality (DEQ) administers the Clean Fleet Program. The Clean Fleet Program provides reimbursement grants, up to a certain percentage, to fleets to replace existing fleet vehicles and non-road diesel equipment with all-electric (up to 45% reimbursement, including charging equipment and installation), low-nitrogen oxides (NOx) (up to 35% reimbursement), or new diesel (up to 25% reimbursement) vehicles. Replacement vehicles that are low-NOx can be compressed natural gas or diesel engines pursuant to California Air Resources Board Optional Low-NOx Standards. Grants must be used to replace vehicles and equipment that meet age and operational requirements. Replaced vehicles and equipment must be permanently disabled within 90 days of putting the replacement vehicle or equipment into service. For more information, including eligibility requirements, see the Utah Clean Fleet Program website.
Virginia
Local organizations and businesses may apply for financial assistance from the Virginia Clean Energy Innovation Bank (VCEIB) to support energy projects, including alternative fuel vehicle and related infrastructure projects. Funding support may include loans, credit enhancements, and more. For more information, see the Virginia Department of Energy VCEIB website.
(Reference Virginia Code 15.2-958.3:1)
Washington
The Washington State Department of Transportation (WSDOT) administers grants for public transportation projects, including alternative fuel vehicle acquisitions and associated charging or fueling infrastructure. Relevant programs may include Green Transportation Capital, Public Transit Rideshare, Regional Mobility, State Buses and Bus Facilities, and Tribal Transit Mobility. For more information, including funding availability and program dates, see the WSDOT Public Transportation Grant Programs and Awards website.
(Reference Revised Code of Washington 46.66.500, 46.66.807, 47.66.030, and 47.66.120)
The Washington State Department of Commerce and the Washington State Department of Transportation must establish an interagency EV coordinating council (Council) to advance transportation electrification. The Council must:
- Develop a state-wide transportation electrification strategy;
- Identify electric vehicle infrastructure grant-related funding;
- Coordinate grant funding criteria across agency grant programs;
- Develop a robust public and private outreach plan that includes engaging with community organizers and local governments;
- Create an industry EV advisory committee;
- Ensure the new strategies and programs benefit vulnerable communities;
- Provide an annual report to legislature committees summarizing EV implementation progress, gaps, and resource needs, and
- Address EV charger infrastructure property crime through guidance and recommended actions.
(Reference Senate Bill 5161, 2025 and Revised Code of Washington 43.392.040 and 43.392.030)
The Washington State Department of Ecology offers grants within the Clean Diesel program to transition school bus fleets away from fossil fuels. The primary recipients are owners of school buses that transport K-12 students to public, tribal, and charter schools for the replacement of diesel school buses with zero emission school buses, including associated charging and fueling infrastructure. Grant awards may be up to 100% of the incremental cost of a zero emission school bus and up to $50,000 per bus for the cost of charging or fueling infrastructure. Applicants may receive grants for up to 10 buses per funding round. Increased funding (115% of the incremental cost and $75,000 per bus for charging or fueling infrastructure) is available for schools located in a small or rural local education agency or for schools in which 50%–94% of students are eligible for free or reduced price lunch program and there is no cap on the number of buses that may be requested. For schools that are rural or where over 95% of students are eligible for free or reduced price lunch, funding may be available for the full cost of up to three zero emission school buses per funding round and $75,000 per bus for charging or fueling infrastructure. The zero emission school bus grant defines zero emission bus as a vehicle that has a drivetrain that produces, under any possible operational mode or condition, zero exhaust emissions of any criteria air pollutant (or precursor thereof).
In addition to school buses, in some years there are grants available for other diesel vehicles (e.g., yard trucks, diesel marine engines). For more information, see the Department of Ecology Clean Diesel Grants website.
(Reference Revised Code of Washington 70A.15.4200)
The Washington State Department of Ecology must offer grants for the replacement of diesel school buses with zero emission school buses within the Clean Diesel Grants program. In June 2025, In June 2025, the Department of Ecology submitted a required report to the governor and the legislature that provides a status update and a summary of recommendations and implementation considerations.
In December 2024, the Office of the Superintendent of Public Instruction published a requires report to the legislature on its statewide survey on total cost of ownership (TCO) of existing zero emission school buses. Using this formula, once the TCO of a zero emission school bus, or vehicles used in lieu of buses, is at or below that of a diesel school bus, school districts may only receive funding to purchase zero emission school buses. Zero emission school bus refers to a school bus that produces zero exhaust emission of any air pollutant and any greenhouse gas other than water vapor.
(Reference Revised Code of Washington 28A.160.195, 28A.160.140, 70A.15.4200, and 28A.300)
Beginning on January 1, 2026, an excise tax is imposed on original equipment manufacturers (OEMs) regulated under Washington State’s ZEV program that generate surplus ZEV credits above the applicable annual ZEV requirement. Sold credits are taxed at 2% and banked credits are taxed at 10%, with proceeds funding electric vehicle incentives and state climate initiatives starting in 2027. OEMs generating fewer than 25,000 ZEV credits per model year are exempt.
Wyoming
The Wyoming Department of Environmental Quality (DEQ) offers grants for the early replacement of diesel school buses with qualifying new diesel or alternative fuel buses. Applicants may receive grant funding worth up to 25% of the new school bus purchase price. The program is funded by Wyoming’s portion of the Volkswagen (VW) Environmental Mitigation Trust and the Diesel Emissions Reduction Act. For more information, including program guidance and application deadlines, see the DEQ School Bus Replacement Program website.
The Wyoming Department of Environmental Quality (DEQ) offers grants to city and county governments to replace medium- and heavy-duty trucks and transit buses with new diesel or alternative fuel vehicles. Applicants may receive grant funding worth up to 40% of the final purchase price of new equipment. The program is funded by Wyoming’s portion of the Volkswagen (VW) Environmental Mitigation Trust and the Diesel Emissions Reduction Act. For more information, including funding amounts and application deadlines, see the DEQ Diesel Replacement Application website.
Before the last day of each month, all licensed and unlicensed suppliers, distributors, importers, transporters, or exporters must report all gallons of alternative fuel sold in the state to the Wyoming Department of Transportation. Additional terms and conditions apply.
(Reference Wyoming Statutes 39-17-307)