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New York Electric Laws and Incentives


State Incentives

Alternative Fueling Infrastructure Tax Credit

A state tax credit is available for the installation of clean fuel vehicle fueling infrastructure located in the state. The tax credit is equal to 50% of the cost of the infrastructure. This includes infrastructure for storing or dispensing a clean-burning fuel into the fuel tank of a motor vehicle powered by that fuel, as well as infrastructure used for recharging electric vehicles. Eligible clean fuels include natural gas, liquefied petroleum gas, hydrogen, electricity, and any other fuel that is a least 85% ethanol or other alcohol. This credit does not apply after December 31, 2010. (Reference New York Tax Law Section 187-b)

Alternative Fuel Bus Funding

The Clean Fueled Bus Program, administered by the New York State Energy Research and Development Authority (NYSERDA), provides funds to state and local transit agencies, municipalities, and schools for up to 100% of the incremental cost of purchasing new alternative fuel buses and associated infrastructure. For the purposes of this program, an alternative fuel bus is any motor vehicle with a seating capacity of 15 or more passengers used for the transportation of persons on public highways that is powered by compressed natural gas (CNG) (including dual-fuel technology with a minimum of 75% use of CNG during typical operation), propane, methanol, hydrogen, biodiesel, or ethanol, or uses electricity as a primary motive force (e.g., hybrid electric). Project selection is based on the emissions reduction potential. Funding for this program comes from the Clean Water/Clean Air Bond Act.

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Funding

The New York State Clean Cities Challenge, administered by the New York State Energy Research and Development Authority (NYSERDA), awards funds to members of New York's Clean Cities Coalitions that acquire AFVs or install AFV fueling or recharging infrastructure. Funds are awarded on a competitive basis, and can be used to cost-share up to 75% of the proposed project, including the incremental cost of purchasing AFVs, the cost of installing fueling and recharging equipment, and the incremental costs associated with bulk alternative fuel purchases.

Alternative Fuel Technical Assistance

The New York State Clean Cities Sharing Network (Network), which provides technical, policy, and program information about alternative fuel vehicles (AFVs), is managed by the New York State Energy Research and Development Authority (NYSERDA). Membership is open to all organizations, businesses, and individuals interested in AFVs and members are notified about upcoming funding opportunities and events. The Network publishes information about tax incentives, fueling stations, case studies, and contact information for the Clean Cities program and other industry leaders. The Network also organizes and sponsors technical workshops.

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Technical Assistance

The New York State Energy Research and Development Authority's (NYSERDA) Flexible Technical (Flex-Tech) Assistance Program provides assistance to fleet managers who want to evaluate the feasibility and cost of adding AFVs and fueling facilities to their operations. Low-cost training for vehicle mechanics is available through certified institutions.

Alternative Fuel Product Development Funding

The New York State Energy Research and Development Authority's (NYSERDA) Transportation Research Program sponsors a wide variety of product development efforts aimed at improving efficiency and increasing the use of alternative fuels. Program Opportunity Notices are issued periodically to solicit proposals for cost-share development efforts leading to the manufacture and sale of innovative products that provide energy, environmental and economic development benefits. For more information about this program visit the NYSERDA Transportation Projects Web site.

Alternative Fuel Vehicle (AFV) and Electric Vehicle (EV) Funding - New York City

The New York City Private Fleet Alternative Fuel/Electric Vehicle Program, administered by the New York State Energy Research and Development Authority (NYSERDA) in cooperation with New York City Department of Transportation, helps private companies operating vehicles in New York City to acquire AFVs. Funds are awarded on a competitive basis for up to 50% of the incremental cost of purchasing new light-duty natural gas vehicles (NGVs) or EVs, and up to 80% of the incremental cost for purchasing new or converting medium- and heavy-duty NGVs (dedicated and bi-fuel), EVs, or hybrid electric vehicles. Eligible projects may also include installation of AFV fueling or recharging station infrastructure.

State Laws and Regulations

Alternative Fuel Fueling Infrastructure Feasibility Study

The New York State Energy Research and Development Authority (NYSERDA), the New York State Thruway Authority, and the New York Department of Environmental Conservation have undertaken a study regarding the feasibility and construction of alternative fuel fueling facilities at gasoline stations located along the New York State Thruway. Once finalized, NYSERDA will prepare and deliver to the governor a report that will include, but not be limited to, the following: 1) the current availability of the various alternative fuels and associated technologies which use alternative fuels for transportation purposes; 2) the projected growth in the availability and use of alternative fuel vehicles (AFVs) for the next 10 years; 3) the current and projected price of the various alternative fuels, AFVs, and alternative fuel fueling equipment for the next 10 years as well as the current and projected cost of operation of alternative fuel vehicles, including incremental cost comparisons; 4) the feasibility of each thruway public facility containing a gasoline station to accommodate one or more alternative fuel facilities. (Reference Assembly Bill 11331, 2006)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

State agencies and other affected entities must procure increasing percentages of AFVs as part of their annual vehicle acquisition plans; hybrid electric vehicles qualify under these requirements. By 2010, 100% of all new light-duty vehicles must be AFVs, with the exception of designated specialty, police, or emergency vehicles. State agencies and other affected entities that operate medium- and heavy-duty vehicles must implement strategies to reduce petroleum consumption and emissions by using alternative fuels and improving vehicle fleet fuel efficiency. State agencies and other affected entities may substitute the use of 450 gallons of B100 for the acquisition of one AFV. Alternatively, the use of 2,250 gallons of B20 or use of 9,000 gallons of B5 may also be substituted in place of purchasing one AFV. No more than 50% of a given state agency fleet's AFV purchase requirement may be met by substituting B100, B20, or B5 in accordance with this Executive Order. (Reference Executive Order 111, 2001, and Executive Order 142, 2005 (PDF 238KB)) Download Adobe Reader

Low Emission Vehicle (LEV) Standards

Each Original Equipment Manufacturer's (OEM) sales fleet of passenger cars and light-duty trucks produced and delivered for sale in New York State must be made up of at least the same percentage of Zero Emission Vehicles (ZEVs) set forth in Title 13 of the California Code of Regulations, Section 1962. An alternative compliance program has been instituted to expand the options available to OEMs in order to meet the mandate. Under this program, OEMs must make the following commitments:

Beginning in MY 2009, no individual or company may sell, lease, import, deliver, purchase, or acquire any new light-duty passenger car, light-duty truck, or medium-duty passenger vehicle in the state unless the vehicle is certified to the California emission standards stated in the California Code of Regulations. Also beginning in MY 2009, OEMs must meet a fleet average greenhouse gas emissions standard, as defined in the California Code of Regulations, which will become more stringent each year through 2016.

(Reference New York State Department of Environmental Conservation Regulations Chapter III - Air Resources, Part 218)

Low Speed Vehicle Definition

A low speed vehicle is defined as a limited use automobile which has a maximum speed greater than 20 miles per hour (mph), but not greater than 25 mph, or a truck which has a maximum speed greater than 20 mph by not greater than 25 mph and whose Gross Vehicle Weight Rating is less than 3,000 pounds. All low speed vehicles must comply with the safety standards established in Title 49 of the Code of Federal Regulations, Section 571.500. (Reference New York Vehicle and Traffic Law 121-f)

Alternative Fuel Vehicle (AFV) Acquisition Requirements - New York City

At least 80% of the New York City light-duty, non-emergency fleet, and 20% of bus fleets operated in New York City are required to be AFVs. (Reference New York City Administrative Code 24-163.1 and 24-163.2)