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Connecticut Natural Gas Laws and Incentives


State Incentives

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Exemption

Prior to July 1, 2008, the following purchases are exempt from sales tax: new dedicated compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), hydrogen, or electric vehicles; equipment used in dedicated or dual fuel CNG, LNG, LPG, hydrogen, or electric vehicle conversions; and equipment associated with a CNG or hydrogen filling or electric recharging station. Between October 1, 2004 and October 1, 2008, new HEVs with a U.S. Environmental Protection Agency fuel economy rating of at least 40 miles per gallon are also exempt from sales tax. An HEV is defined as a passenger car that 1) draws acceleration energy from two onboard sources of stored energy, which are both an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system, and 2) for an HEV produced during and after model year 2004, is certified to meet or exceed the Tier II Bin 5 Low Emission Vehicle classification. (Reference Connecticut General Statutes 12-412-67, 68, 69, and 115)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Parking

The City of New Haven provides free parking on all city streets for HEVs and AFVs registered in New Haven. HEV and AFV vehicle owners must obtain a non-transferable pass from the Department of Traffic and Parking to place on the vehicle's dashboard or hang from the rearview mirror. AFVs and HEVs are subject to all time and other posted parking restrictions. (Reference New Haven Code of General Ordinances, , Title III, Chapter 29, Article III, Division 1, Section 29-56)

State Laws and Regulations

Alternative Fuel Vehicle (AFV) Procurement Preference

In determining the lowest responsible qualified bidder for the award of state contracts, the Commissioner of Administrative Services may give a price preference of up to 10% for the purchase of AFVs, or for the purchase of vehicles powered by fuel other than a clean alternative fuel plus conversion equipment to convert the vehicles to dual or dedicated alternative fuel use. For these purposes, "alternative fuel" means natural gas or electricity when used as a motor vehicle fuel. (Reference Connecticut General Statutes 4a-59)

Alternative Fuel Vehicle (AFV) Acquisition and Emissions Reduction Requirements

The fleet average for cars or light-duty trucks purchased by the state must: 1) have a U.S. Environmental Protection Agency estimated fuel economy of at least 40 miles per gallon; 2) comply with state fleet vehicle acquisition requirements set forth under the Energy Policy Act of 1992 (Title 10 of the Code of Federal Regulations, Part 490); and 3) obtain the best achievable fuel economy per pound of carbon dioxide emitted in its vehicle class. AFVs purchased by the state to comply with these requirements must be capable of operating on an alternative fuel that is available in the state. Department of Public Safety vehicles that the Commissioner of Public Safety and Commissioner of Administrative Services designate as necessary for the Department of Public Safety to carry out its mission are exempt from these provisions.

Beginning January 1, 2008, at least 50% of all cars and light-duty trucks purchased or leased by the state must be alternative fuel, hybrid electric or plug-in electric vehicles. All AFVs purchased or leased must be certified to the California Air Resources Board's (CARB) Low Emission Vehicle II Ultra Low Emission Vehicle Standard, and all light-duty gasoline vehicles and hybrid electric vehicles purchased or leased by the state must be certified, at a minimum, to the CARB Low Emission Vehicle II Ultra Low Emission Vehicle Standard. Beginning January 1, 2012, the required percentage increases to 100%. The Commissioner of Administrative Services is required to report annually on the composition of the state fleet, including the volume of alternative fuels used.

(Reference Connecticut General Statutes 4a-67d and Senate Bill 1500, 2007)

School Bus Emissions Reduction

The Commissioner of Environmental Protection and Commissioner of Education are required to establish a school bus emissions reduction program which will include the following: 1) establishment of grants for municipalities and local and regional school boards for reimbursement of the cost of retrofitting full-sized school buses that are projected to be in service on or after September 1, 2010; 2) development of an outreach plan and educational materials regarding the program, and; 3) assistance to municipalities and local and regional boards of education and bus companies to retrofit their full-sized school buses.

Prior to September 1, 2010, each full-sized school bus with an engine model year of 1994 or newer transporting children in the state must be equipped with specific emissions control systems, including either: 1) a closed crankcase filtration system and a level 1 device, level 2 device or level 3 device; 2) an engine certified by the U.S. Environmental Protection Agency (EPA) to meet Model Year 2007 emission standards; or 3) use compressed natural gas or other alternative fuel certified by the EPA or the California Air Resources Board to reduce particulate matter emissions by at least 85% as compared to ultra-low sulfur diesel fuel.

(Reference Senate Bill 1500, 2007)

Alternative Fuel Taxicab Regulation

In compliance with any other regulations governing the use of taxicabs, any alternative fuel sedan or station wagon with a wheelbase of at least 102 inches may be used to provide taxicab service. (Reference Connecticut General Statutes 13b-96)

Alternative Fuel Tax Exemptions

Natural gas or propane sold as a motor fuel by a public utility company in a taxable quarter commencing prior to June 30, 2008 is exempt from the gross earnings tax on the sale of petroleum products. Prior to July 1, 2008, petroleum products sold for use as fuel in fuel cells and propane sold for use as a fuel in motor vehicles are exempt from the petroleum gross earnings tax. Finally, between July 1, 1994, and July 1, 2008, compressed natural gas, liquefied petroleum gas, and liquefied natural gas are not subject to the motor fuels tax. (Reference Connecticut General Statutes 12-264, 12-587, and 12-458f)

Utilities/Private Incentives

Natural Gas Infrastructure and Technical Assistance

Southern Connecticut Gas Company and Connecticut Natural Gas provide technical and advisory assistance for alternative fuel refueling station construction, fleet management, and vehicle conversions. Both utilities will assist fleet operators with natural gas vehicle planning, purchases, converting vehicles to operate on natural gas, and refueling station construction on a project-specific basis.