Alternative Fuels -- State Regulations for Kentucky

This page contains selected data from the Alternative Fuels Data Center (AFDC) at the U. S. Department of Energy. Additional details and the latest updates may be found at the AFDC summary page for Kentucky.

Vehicle Acquisition

State agency vehicles (strategy)

The Kentucky Finance and Administration Cabinet (Cabinet) must develop a strategy to replace at least 50% of commonwealth motor fleet light-duty vehicles with energy-efficient vehicles including hybrid electric, advanced lean burn, fuel cell, and alternative fuel vehicles. The Cabinet must report targeted vehicle and fuel usage amounts annually. (Reference Kentucky Revised Statutes 45A.625)

Fuel Use

State agency vehicles (strategy)

The�Kentucky Finance and Administration Cabinet�(Cabinet) must develop a strategy to increase the use of ethanol, biodiesel, and other alternative fuels in commonwealth motor vehicle fleets. The Cabinet must report targeted vehicle and fuel usage amounts annually. (Reference Kentucky Revised Statutes 45A.625)

General

Deregulation (natural gas used as vehicle fuel)

The Kentucky Public Service Commission may not regulate the rates, terms, or conditions of service for the sale of natural gas to a compressed natural gas fueling station, retailer, or to any end-user for use as a motor vehicle fuel. (Reference Kentucky Revised Statutes 278.508)

Tax Exemption (propane used as vehicle fuel)

Propane is exempt from the state excise tax when it is used to operate motor vehicles on public highways provided that vehicles are equipped with carburetion systems approved by the Kentucky Energy and Environment Cabinet. (Reference Kentucky Revised Statutes 234.321)