Washington Electric Laws and Incentives

State Incentives

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

Beginning January 1, 2009, new passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated AFVs are exempt from the state sales and use tax. Qualified vehicles must operate exclusively on natural gas, propane, hydrogen, or electricity, meet the California motor vehicle emissions standards effective January 1, 2005, and comply with the rules of the Washington Department of Ecology. In addition, all new passenger cars, light-duty trucks, and medium-duty passenger vehicles that utilize hybrid electric technology and have a U.S. Environmental Protection Agency estimated highway fuel economy of at least 40 miles per gallon are exempt from state sales and use tax. This tax exemption expires January 1, 2011. (Reference Revised Code of Washington 82.08.809 and 82.08.813)

Alternative Fuel Grant and Loan Program

The Energy Freedom Program (Program) is established within the Department of Community, Trade, and Economic Development (CTED), and administered by the Director of the CTED in consultation with other state agencies. The Program awards low-interest loans and grants through a competitive application process. Eligible projects include: research and development of new and renewable energy and biofuel sources, including biomass, solar, and wind power; renewable energy and alternative fuel infrastructure, facilities, and technologies; and research and development to develop markets for alternative fuel byproducts. Funding for the Program is provided by the Energy Freedom Loan Account and the Green Energy Incentive Account. The Program expires June 30, 2016.

Construction of new alternative fueling facilities as well as upgrades and expansion of existing fueling infrastructure offered to the public are eligible for funding of up to $50,000 per fueling infrastructure project. Funding for fueling infrastructure projects will only be awarded if the project is located within a 'green highway zone' in the state, which is a designated area within reasonable proximity of Washington Interstates 5, 90, and 82.

(Reference Revised Code of Washington 43.325)

Electric and Plug-In Hybrid Electric Vehicle Demonstration Grants

The Vehicle Electrification Demonstration Grant Program is established within the Department of Community, Trade, and Economic Development (CTED), and administered by the Director of the CTED. Eligible applicants are state agencies, public school districts, public utility districts, or political subdivisions of the state. Grants may be awarded to projects involving the purchase or conversion of existing vehicles to plug-in hybrid electric vehicles or battery electric vehicles for use in an applicant's fleet or operations; additional eligibility requirements apply. (Reference Revised Code of Washington 43.325.110)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Emission Inspection Exemption

Electric, compressed natural gas, and liquefied petroleum gas vehicles are exempt from emission control inspections. HEVs that obtain a U.S. Environmental Protection Agency fuel economy rating of at least 50 miles per gallon of gasoline during city driving are also exempt from these inspections. (Reference Revised Code of Washington 46.16.015)

State Laws and Regulations

Alternative Fuel Vehicle (AFV) Identification Requirement

Every automobile, truck, motorcycle, motor home, or off-road vehicle that is fueled by an alternative fuel must bear a reflective placard issued by the National Fire Protection Association indicating that the vehicle is powered by an alternative fuel. (Reference Revised Code of Washington 46.37.467)

Medium-Speed and Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs and medium-speed electric vehicles are defined as self-propelled, electrically powered four-wheeled motor vehicles that are permitted on roads having speed limits of up to 35 miles per hour (mph). NEVs can reach speeds greater than 20 mph but not more than 25 mph. Medium-speed electric vehicles can reach speeds greater than 30 mph but not more than 35 mph. NEVs and medium-speed electric vehicles must be in compliance with the national highway and traffic safety administration standards in Title 49 of the U.S. Code of Federal Regulations, Part 571.500. (Reference Revised Code of Washington 46.04.295, 46.04.357 and 46.61.723 through 46.61.725)

Electric Vehicle (EV) Recharging at State Buildings

Recognizing that it is in the state's interest and to the benefit of the public to encourage the use of EVs to reduce emissions and improve air quality, publicly and privately owned plug-in EVs may be recharged at state office locations where the vehicles are used for state business, commuter vehicles, or conducting business with the state. (Reference Revised Code of Washington 43.01.250)

Alternative Fuel Use Requirement

Effective June 1, 2015, all state and local government agencies are required to satisfy 100% of their fuel usage for operating publicly owned vehicles by using biofuels or electricity. To allow the motor vehicle fuel needs of state and local government to be satisfied by Washington-produced biofuels, the Department of General Administration and local governments may contract in advance and execute contracts with public or private producers and suppliers for the purchase of appropriate biofuels. (Reference Revised Code of Washington 43.19.648)

Clean Fuel Vehicle Purchasing Requirement

At least 30% of all new vehicles purchased through a state contract must be clean fuel vehicles; this percentage will increase at the rate of 5% each year. It is preferred that dedicated clean fuel vehicles be purchased. In the event that dedicated clean fuel vehicles are not available or would not meet operation requirements, conventionally powered vehicles may be converted to operate on clean fuel or dual-fuel use. (Reference Revised Code of Washington 43.19.637)

Clean School Bus Funding

Until July 1, 2020, 85% of the money from the segregated subaccount of the state treasury's air pollution control account must be distributed to air pollution control authorities. Of the money received by an air pollution control authority or the state Department of Licensing, 85% must be used for the Clean School Bus Program to retrofit school buses with exhaust emission control devices or to provide funding for fueling infrastructure needed to allow school bus fleets access to use alternative, cleaner fuels. (Reference Revised Code of Washington 70.94.017)

Fleet Action Plan - Seattle

The Clean Green Fleet Action Plan (PDF 444 KB) aims to increase the use of alternative fuels, reduce fleet fuel use, reduce vehicle emissions, and improve the fuel efficiency of the City of Seattle's (Seattle's) fleet. Seattle's long-term intent is to have a fleet that is 100% clean and green, through the use of clean fuels and vehicles that have the highest fuel efficiency and the lowest emissions and meet the needs of Seattle's operations. The specific measures called for in the plan include a 5% reduction in the fleet’s annual fuel use by 2005 as compared to 1999. Download Adobe Reader