Skip Navigation to main content U.S. Department of Energy U.S. Department of Energy Energy Efficiency and Renewable Energy
Bringing you a prosperous future where energy is clean, abundant, reliable, and affordableEERE HomeEERE Home
Alternative Fuels & Advanced Vehicles Data Center
About the AFDCFuelsVehiclesFleetsIncentives and LawsData, Analysis and TrendsInformation ResourcesHome
State and Federal Incentives and Laws

Washington State Flag

Washington

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)

Alternative Fuel Vehicle (AFV) Annual Fee

To encourage the use of nonpolluting fuels, owners of compressed natural gas and liquefied petroleum gas powered vehicles are required to pay an annual license fee, based on gross vehicle weight rating (GVWR), instead of motor fuel excise taxes. The fee is calculated as follows:

GVWRFee
Less than 10,000 pounds (lbs.)$45
10,001 - 18,000 lbs.$80
18,001 - 28,000 lbs.$110
28,001 - 36,000 lbs.$150
More than 36,000 lbs.$250

To determine the actual annual license fee imposed by this section for a registration year, the appropriate dollar amount given in the above schedule must be multiplied by the motor vehicle fuel tax rate in cents per gallon (as established by Revised Code of Washington 82.36.025) effective on July 1 of the preceding calendar year, and the resulting amount be divided by $0.12. In addition, there is a $5 handling fee for each license issued.

(Reference Revised Code of Washington 82.38.075)

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)

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)

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

Point of Contact

Mark H. Brady
Clean Cities Coordinator
Puget Sound Clean Cities Coalition
Phone (206) 689-4055
Fax (206) 343-7522
markb@pscleanair.org
http://pugetsoundcleancities.org/

Natural Gas Technical Assistance

Puget Sound Energy (PSE) is a partner in the Puget Sound Clean Cities Coalition. PSE, a gas and electric utility, operates its own compressed natural gas (CNG) station and provides technical support and assistance to customers wishing to purchase natural gas for use in CNG vehicles.

Point of Contact

Chuck Dougherty
Program Manager for Alternative Fuel Vehicles
Puget Sound Energy
Phone (253) 476-6202
Fax (253) 476-6415
chuck.dougherty@pse.com