New York Propane 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.
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
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)
Alternative Fuel Use Requirement - New York City
Any bi-fuel motor vehicle owned or operated by the city must use the alternative fuel on which the vehicle is capable of operating. This regulation does not apply for vehicles that are no longer mechanically able to operate on alternative fuel, or if the vehicle manufacturer recommends that the vehicle operate on gasoline or diesel fuel for a specified period of time. (Reference New York City Administrative Code 24-163.1)
