State Incentives

Other Sources:

This website is a great source for all alternative fuel incentives by state, including state, local, and private company incentives. DSIRE

This CRS Biofuel Incentives Summary, by the Congressional Research Service,  includes all federal alternative bio-fuel and vehicle incentives.

High Occupancy Vehicle Exemption

Alternative fuel vehicles (AFVs) displaying the Virginia Clean Special Fuels license plate may use Virginia HOV lanes, regardless of the number of occupants, until July 1, 2011. For HOV lanes serving the I-95/395 corridor, only registered vehicles displaying Clean Special Fuels license plates issued prior to July 1, 2006, are exempt from HOV lane requirements. Dedicated AFVs and some hybrid electric vehicles may qualify for the license plate and HOV exemption; see the Virginia Department of Motor Vehicles Web site for a complete list of qualifying vehicles. The annual fee for Clean Special Fuels license plates is $25 in addition to the prescribed fee for commonwealth license plates. (Reference VA Code 33.1-46.2)

NEW Alternate Fuel Revolving Fund

Virginia has a permanent revolving fund known as the Virginia Alternative Fuels Revolving Fund.  This fund is designed to reduce dependence on imported fuels, reduce alternate fuel vehicle cost, and to improve infrastructure such as refueling stations. (Reference VA Code 33.1-223.4)

Biodiesel Production Tax Credit

Qualified biodiesel and green diesel fuel producers are eligible for a tax credit of $0.01 per gallon of biodiesel or green diesel fuels produced. This credit is available for producers who generate up to two million gallons of biodiesel or green diesel fuel per year. The annual credit may not exceed $5,000, and producers are only eligible for the credit for the first three years of production. Qualified producers must be certified by the Virginia Department of Mines, Minerals and Energy. (Reference VA Code 58.1-439.12:02)

Biofuels Production Grants

The Biofuels Production Incentive Grant Program provides grants to producers of advanced biofuels, specifically fuels derived from any cellulose, hemicellulose, or lignin that is derived from renewable biomass or algae. A qualified advanced biofuels producer is eligible for a grant of $0.125 for each gallon of neat (100%) advanced biofuels sold. A qualified producer of non-advanced neat biofuels, including neat biodiesel, green diesel, and ethanol fuel, is eligible for a grant of $0.10 per gallon of neat biofuels sold in the commonwealth. To qualify, a producer must produce at least one million gallons of neat biofuels in the calendar year in which the grant is taken. If a producer began selling neat biofuels prior to January 1, 2008, the producer is only eligible for a grant if its production of neat biofuels for the given calendar year exceeds its production in the 2006 calendar year by at least one million gallons and, in future years, continues to meet or exceed that amount. Each producer is only eligible for six calendar years of grants. (Reference VA Code 45.1-393 and 45.1-394)

Alternative Fuels Grants and Loans

The Alternative Fuels Revolving Fund (Fund) is used to distribute loans or grants to municipal, county, and state governments to support alternative fuel vehicle (AFV) programs, or to pay for AFV maintenance, operation, evaluation, or testing; vehicle conversions; or to improve alternative fuel infrastructure. Eligible alternative fuels include, but are not limited to, electricity, hydrogen, and natural gas. Projects with a funding match are given priority in the evaluation process. (Reference House Bill 806, 2010, and VA Code 33.1-223.4 and 33.1-223.7)

Green Jobs Tax Credit

Beginning January 1, 2010, qualified employers are eligible for a $500 tax credit for each new green job created that offers a salary of at least $50,000, for up to 350 jobs per employer. The credit is allowed for the first five years that the job is continuously filled. For the purposes of this tax credit, a green job is defined as employment in industries relating to the field of renewable or alternative energies, including hydrogen and fuel cell technology, landfill gas, and biofuels. The tax credit expires on January 1, 2015. (Reference House Bill 803, 2010, Senate Bill 623, 2010, and VA Code 58.1-439.12:03)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans

The Virginia Board of Education may use funding from the Literary Fund to grant loans to school boards that convert school buses to operate on alternative fuels or construct alternative fueling stations. (Reference VA Code 22.1-146)

Registration Exemption for Biofuel Feedstock

Beginning September 1, 2010, individuals that transport waste kitchen grease for conversion to biofuel are exempt from Virginia Department of Health registration and the associated annual application fee of $100 per vehicle. This exemption only applies if the individual transports the waste kitchen grease in a container with a capacity of less than 275 gallons; and possesses no more than 1,320 gallons of waste kitchen grease, biofuel feedstock derived from kitchen grease, or biofuel at any one time, excluding biofuel contained in vehicle fuel tanks. Other restrictions apply. (Reference House Bill 1322, 2010, and VA Code 3.2-5508 through 3.2-5510)

2 comments

  1. Jerome says:

    Virginia has a disincentive in its Electric Vehicle Registration fees.

    From the DMV Fees

    An additional $50 fee applies to electric vehicles.

    I think this is a new fee since I never had to pay it in the previous 3 years I owned my electric vehicle (a scooter). My registration went up from $28.75 to $78.75 in one year.

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