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Department of Energy's Question of the Month


Question of the Month: What types of incentives and laws did state legislators and others enact in 2015?


State legislators, as well as governors and utilities, were busy in 2015 introducing and enacting new incentives, laws, and regulations related to alternative fuels, advanced vehicles, and other petroleum reduction strategies. Programs related to plug-in electric vehicles (PEVs) and natural gas vehicles (NGVs), along with the associated fueling infrastructure, were most common at the state level.

State Incentives

The most common types of incentives established in 2015 were grants and rebates. States leading the way in these areas include Delaware, most notably for its Clean Trasnportation Program rebates for vehicles and infrastructure. On the other hand, the number of tax incentives introduced at the state level decreased. In fact, Georgia repealed its successful tax incentive program. Aside from political and budgetary drivers, the decrease in new tax incentives may be the result of a call from industry to enact programs that will allow fleets and consumers to see their savings more immediately (e.g., rebates, vouchers). This would take the place of waiting until tax season when the financial benefit may get lost in other expenses and returns from the previous year.

Utility Incentives

Utilities also continue to innovate and establish incentives that go beyond the typical residential charging infrastructure rebate and electricity rate discount programs. For example, Alabama Power offers and incentive to dealerships for each new PEV sale or lease within its service territory. Public Service Electric & Gas in New Jersey provides free electric vehicle supply equipment to qualified companies in its service territory for the purpose of workplace charging.

Laws and Regulations

Registration and licensing was the most common law and regulation topic, in part due to several states introducing fees for PEV registration to account for lost revenue from fuel taxes. Several states also continued to build on a movement that begain in 2014 and changes that took place at the federal level by enacting legislation to tax natural gas and other fuels on an energy (i.e., gasoline-gallon or diesel-gallon) equivalent basis. States also continued to set targets and requirements for their own fleets many of which go above and beyond federal requirements for alternative fuel vehicle acquisition. For example, Colorado Executive Order 2015-013 established fleet purchase and pricing requirements that prioritize NGVs, annual fuel use reduction targets on a vehicle-specific basis, goals for inter-agency coordination on petroleum reduction strategies, and commitments to workplace charging.

For the most up-to-date information on incentives, laws, and regulations, the Alternative Fuels Data Center (AFDC) provides a searchable database of state and federal incentives, laws, and regulations related to alternative fuels and vehicles, air quality, vehicle efficiency, and other transportation-related topics. You can find information relevant to your state, and all others at

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