New York Incentives and Laws

Last Updated September 2006

State Incentives

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 please visit http://www.nyserda.org/programs/transportation/transp.asp.

Alternative Fuel Bus Incentives

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 (including dual-fuel technology with a minimum of 75% use of compressed natural gas 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.

Point of Contact

Patrick Bolton
Project Manager
NYSERDA
Phone (518) 862-1090 x 3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/afv.asp
 

Alternative Fuel, Alternative Fuel Vehicle (AFV) and Refueling 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 and/or refueling 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 refueling and recharging equipment, and the incremental costs associated with bulk alternative fuel purchases.

Point of Contact

Patrick Bolton
Project Manager
NYSERDA
Phone (518) 862-1090 x 3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/afv.asp
 

Compressed Natural Gas (CNG) Taxi Funding

The New York City Clean Fuel Taxi Program provides up to $8,500 towards the purchase of new CNG taxis cabs or the conversion of gasoline powered taxi cabs to operate on CNG.

Point of Contact

Patrick Bolton
Project Manager
NYSERDA
Phone (518) 862-1090 x 3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/afv.asp
 

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

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 or EVs, and up to 80% of the incremental cost for purchasing new or converting medium- and heavy-duty compressed natural gas (dedicated and bi-fuel), electric, or hybrid electric vehicles. Eligible projects may also include installation of refueling or recharging station equipment as well as the costs of installation.

Point of Contact

Patrick Bolton
Project Manager
NYSERDA
Phone (518) 862-1090 x 3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/afv.asp
 

Alternative Fuel Tax Exemption

E85, compressed natural gas, and hydrogen used exclusively to operate the engine of a motor vehicle is exempt from state sales and use taxes. This exemption expires September 1, 2011. (Reference New York Tax Law Article 28, Section 1115)

Alternative Fuel Vehicle (AFV) 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 refueling facilities to their operations. Low-cost training for vehicle mechanics is available through certified institutions.

Point of Contact

Patrick Bolton
Project Manager
NYSERDA
Phone (518) 862-1090 x 3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/afv.asp
 

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, refueling stations, case studies, and contact information for the Clean Cities program and other industry leaders. The Network also organizes and sponsors technical workshops.

Point of Contact

Patrick Bolton
Project Manager
NYSERDA
Phone (518) 862-1090 x 3322
Fax (518) 862-1091
ppb@nyserda.org
http://www.nyserda.org/programs/transportation/afv.asp
 

Alternative Fuel Refueling Infrastructure Tax Credit

A state tax credit is available for the installation of clean fuel vehicle refueling 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. This credit does not apply after December 31, 2010. (Reference Senate Bill 5565-A, 2005, and New York Tax Law Section 187-b)

State Laws and Regulations

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

At least 80% of the New York City's 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)

Fuel Exclusivity Contract Regulation

Motor fuel franchise dealers are permitted to obtain alternative fuels from a supplier other than a franchise distributor. Any provision of a franchise which prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, and compressed natural gas from a firm or individual other than the distributor is null and void as it pertains to that particular alternative fuel if the distributor does not supply or offer to supply the dealer with the alternative fuel. Distributors who violate the law by entering into exclusivity contracts will be subject to a fine of $1000. If the distributor does offer renewable fuels, they are allowed to require the station to use their brands. (Reference Senate Bill 8124-A, 2006, and New York General Business Law 199-j)

Alternative Fuel Refueling 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 will undertake a study regarding the feasibility and construction of alternative fuel refueling facilities at gasoline stations located along the New York State Thruway. By December 31, 2006, 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 refueling 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, and New York Tax Law Section 1111)

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 it 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)

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 Federal Motor Vehicle Safety Standard Number 500, Low Speed Vehicles (49 C.F.R. 571, 500). (Reference Senate Bill 7447-B, 2007, and New York Vehicle and Traffic Law 121-f)

Compressed Natural Gas (CNG) Use Requirement – Smithtown

The Town of Smithtown requires all contracted residential refuse collection operators to switch from diesel vehicles to vehicles that operate exclusively on CNG. Fore more information see the Town of Smithtown Web site.

Idle Reduction Requirement – Bethlehem Central School District

The Bethlehem Central School District has adopted a no-idling policy on school grounds for school buses and private vehicles. School buses must be turned off while waiting to load or unload passengers on school grounds. Exemptions are allowed, within the limits of state law, when necessary for mechanical or cold weather reasons. Privately owned passenger vehicles are limited to idling for no more than 30 seconds while on school grounds. For more information see the Bethlehem Central School District Web site.

Idle Reduction Requirement – New Rochelle

Light- and heavy-duty vehicles may not idle for more than 5 minutes, subject to the state exceptions for heavy-duty vehicles. (Reference Code of the City of New Rochelle, New York, Local Law No. 8)

Low Emission Vehicle (LEV) Sales Requirement

Beginning in model year 2007, each auto manufacturer's sales fleet of passenger cars and light-duty trucks (weighing up to 3,750 pounds) produced and delivered for sale in New York must be made up of at least the same percentage of Zero Emission Vehicles (ZEVs) subject to the same requirements set forth in Title 13, Section 1962 of the California Code of Regulations. An alternative compliance program has been instituted to expand the options automakers have to meet the mandate. Under this program, automakers must make the following commitments:

• By model year 2006, at least 10% of all vehicles sold must be partial ZEV (PZEV) or better;
• By model year 2007, 9% of vehicles must be PZEV and 1% must be ZEV, advanced technology partial ZEV (AT PZEV), such as hybrid electric vehicles, or some combination of the two;
• By model year 2008, 7% of vehicles must be PZEV, 2% AT PZEV and 1% ZEV, which could be battery-electric or fuel cell vehicles;
• Any ZEV or PZEV models available in California must also be made available in New York State;
• Beginning with model year 2009, new passenger cars, light-duty trucks, and medium-duty passenger vehicles must meet California greenhouse gas emissions standards; and
• Beginning with model year 2009, automakers 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 Rules and Regulations Chapter III – Air Resources, Part 218 (6 NYCRR Part 218))

Vehicle Emissions and Fuel Economy Requirements – New York City

Beginning July 1, 2006, each light- and medium-duty vehicle purchased or leased by the city must achieve the highest vehicle emissions rating available within the applicable model year that meets the requirements for the intended use by the city of such vehicle.

Additionally, the city must achieve the following minimum percentage increases in the average fuel economy for all light-duty vehicles purchased by the city, relative to the average fuel economy for all such vehicles purchased by the city during the fiscal year (FY) beginning July 1, 2004:

• For the FY beginning July 1, 2006 - 5%
• For the FY beginning July 1, 2007 - 8%
• For the FY beginning July 1, 2008 - 10%
• For the FY beginning July 1, 2009 - 12%
• For the FY beginning July 1, 2010, and July 1, 2011 - 15%
• For the FY beginning July 1, 2012, July 1, 2013, and July 1, 2014 - 18%
• For the FY beginning July 1, 2015, and for each FY thereafter – 20%

(Reference New York City Administrative Code 24-163.1)

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 alternative-fueled vehicle. 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 alternative fueled vehicle. 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 Order. (Reference Executive Order 111, 2001, and Executive Order 142, 2005)

Biofuels Use Requirement

To the extent that gasoline powered state agency vehicles use central refueling stations, all state agencies and public authorities must use E85 in flexible fuel vehicles whenever it is feasible to do so. The Governor's Clean Fueled Vehicles Council, chaired by the Commissioner of the Office of General Services and comprised of the fleet managers of state agencies and public authorities, is required to prepare a plan outlining steps that can be taken to ensure that, to the greatest extent possible, all flexible fuel vehicles in the state fleet that can use ethanol blended fuels will do so, and identify and implement measures to provide for E85 refueling. Additionally, the Council is required to detail how agencies and authorities can purchase, allocate, distribute and use biodiesel in state agency and public authority fleets. By 2007, at least 2% of fuels used in the state fleet must be biodiesel; this percentage will continue to increase annually such that by 2012, at least 10% of fuels used in the state fleet will be biodiesel. (Reference Executive Order 142, 2005)

Point of Contact

Clean Fueled Vehicles Council
New York State Office of General Services
Phone (518) 473-6594
Fax (518) 486-1734
nys.clean.fuel@ogs.state.ny.us
 

Heavy-Duty Idle Reduction Requirement

Heavy-duty vehicles (vehicles with a Gross Vehicle Weight Rating exceeding 8,500 pounds) are prohibited from idling for more than five consecutive minutes when the vehicle is not in motion. Exceptions may apply, including the following: idling due to traffic conditions; to maintain temperatures (under regulation) for passenger comfort; idling to provide auxiliary power or for maintenance purposes; hybrid electric vehicles idling to recharge batteries; and idling of emergency service vehicles. (Reference New York State Department of Environmental Conservation Rules and Regulations Chapter III – Air Resources, Subpart 217-3)

Idle Reduction Requirement - New York City

No person may permit the engine of a motor vehicle, other than a legally authorized emergency vehicle, to idle for more than three minutes while parking, standing, or stopping, unless the engine is used to operate a loading, unloading, or processing device. When the ambient temperature is greater than 40 degrees Fahrenheit, no person may permit the engine of a bus to idle while parking, standing or stopping at any terminal point, along an established route. (Reference New York City Administrative Code Section 24-163)

Utilities/Private Incentives

Natural Gas Vehicle (NGV) and Infrastructure Rebates and Technical Assistance

Keyspan Energy Delivery (KED) offers a NGV incentive program that provides rebates for NGVs on a case-by-case basis and special competitive rates for compressed natural gas (CNG) refueling. KED will also help secure CNG refueling station financing, and provide technical assistance and other services to NGV fleets on a case-by-case basis. Financial awards are made depending on the fleet size, fuel amount used, and vehicle type.

Point of Contact

Ronald J. Gulmi
Lead Account Executive
Keyspan Energy Delivery
Phone (516) 545-5164
Fax (516) 545-3250
rgulmi@keyspanenergy.com
http://www.keyspanenergy.com
 

New York Points of Contact: