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State and Federal Incentives and Laws

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Connecticut Fueling/Recharging Station Builder or Operator

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

Prior to July 1, 2008, the following purchases are exempt from sales tax: new dedicated compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), hydrogen, or electric vehicles; equipment used in dedicated or dual fuel CNG, LNG, LPG, hydrogen, or electric vehicle conversions; and equipment associated with a CNG or hydrogen filling or electric recharging station. Between October 1, 2004, and October 1, 2008, new HEVs with a U.S. Environmental Protection Agency fuel economy rating of at least 40 miles per gallon are also exempt from sales tax. An HEV is defined as a passenger car that 1) draws acceleration energy from two onboard sources of stored energy, which are both an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system, and 2) for an HEV produced during and after model year 2004, is certified to meet or exceed the Tier II Bin 5 Low Emission Vehicle classification. (Reference Connecticut General Statutes 12-412-67, 68, 69, and 115)

Point of Contact

Taxpayer Services Division
Connecticut Department of Revenue
Phone (860) 297-5962
http://www.ct.gov/drs

Biodiesel Production and Distribution Grants

The Connecticut Qualified Biodiesel Producer Incentive Account, managed by the Department of Economic and Community Development, provides grants to qualified biodiesel producers and distributors. A qualified biodiesel producer is eligible for up to 60 monthly grants from the account, up to a total grant per fiscal year equal to: 1) $0.30 per gallon for the first five million gallons of biodiesel produced; 2) $0.20 per gallon for the second five million gallons of biodiesel produced; and 3) $0.10 per gallon for the third five million gallons of biodiesel produced. Any portion of biodiesel produced by a qualified biodiesel producer in excess of 15 million gallons per fiscal year is not eligible for these grants. A one-time grant for the purchase of equipment or establishment or retrofit of production facilities is also available; grants may not exceed either $3 million dollars or 25% of the equipment or construction cost. Additional grant funding up to $50,000 per distributor/site is available for the actual costs of creating storage and distribution capacity for biodiesel. (Reference Connecticut General Statutes 32-324a to 32-324f)

Ethanol Labeling Requirement

Any motor vehicle fuel sold at retail containing more than 1% ethanol must be labeled according to specifications established by the Commissioner of Consumer Protection, indicating the percentage of ethanol in the fuel. (Reference Connecticut General Statutes 16a-15)

Hydrogen and Fuel Cell Promotion

The Connecticut Center for Advanced Technology (CCAT), with funding from the Department of Economic and Community Development (DECD), has established a Connecticut Hydrogen-Fuel Cell Coalition (Coalition). The Coalition works to enhance economic growth through the development, manufacture, and deployment of fuel cell and hydrogen technologies and associated fueling systems in the state. As required by Public Act 06-187, Section 64, the CCAT prepared and submitted the Plan for Fuel Cell Economic Development (PDF 3MB) to DECD, which was developed to: 1) identify and assess market conditions for fuel cell and hydrogen technology, including the economic potential for Connecticut; 2) analyze Connecticut’s hydrogen and fuel cell industry; 3) examine issues and identify solutions; and 4) identify and assess strategies to enhance Connecticut’s hydrogen and fuel cell industry for increased employment, revenues, and economic development. The Plan for Fuel Cell Economic Development suggests there are favorable market conditions for the expansion of the hydrogen and fuel cell industry in Connecticut, that public investment is appropriate and justified, that investment in hydrogen and fuel cell technology would provide a favorable return for the state, and that there are favorable sites for deployment of hydrogen and fuel cell technology in Connecticut to meet pressing energy needs, improve environmental performance, increase economic development, and create new jobs. (Reference Connecticut General Statutes 578-32-9vv and 578-32-9ww)

Point of Contact

Joel M. Rinebold
Director of Energy Initiatives
Connecticut Center for Advanced Technology
Phone (860) 291-8832
Fax (860) 291-8874
jrinebold@ccat.us
http://www.chfcc.org

Natural Gas Infrastructure and Technical Assistance

Southern Connecticut Gas Company and Connecticut Natural Gas provide technical and advisory assistance for alternative fuel fueling station construction, fleet management, and vehicle conversions. Both utilities will assist fleet operators with natural gas vehicle planning, purchases, converting vehicles to operate on natural gas, and fueling station construction on a project-specific basis.

Point of Contact

Michael Smalec
Manager Commercial, Industrial and Key Accounts
Southern Connecticut Gas Company/ Connecticut Natural Gas Corporation
Phone (203) 795-7748 or (860) 727-3327
Fax (203) 795-7619
msmalec@soconngas.com