Alternative Fuels -- State Regulations for Utah

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 Utah.

Fuel Use

All vehicles ("may require", fleets)

The Utah Air Quality Board may require fleets that own 10 or more vehicles that are capable of being fueled at a central location to use clean fuels, if such a mandate is necessary to meet national air quality standards. Clean fuels are defined as propane, compressed natural gas, and electricity. Additional restrictions apply. (Reference Utah Code 19-2-105.3)

General

Funding (alternative fuel vehicles, infrastructure)

The Utah Clean Fuels and Vehicle Technology Grant and Loan Program (Program), funded through the Clean Fuels and Vehicle Technology Fund, provides grants and loans to assist businesses and government entities in covering:The cost of converting vehicles to operate on clean fuels;The incremental cost of purchasing original equipment manufactured clean fuel vehicles;The cost of retrofitting diesel vehicles with U.S. Environmental Protection Agency verified closed crankcase filtration devices, diesel oxidation catalysts, and/or diesel particulate filters; andThe cost of fueling equipment for public/private sector business and government vehicles (grants require federal and non-federal matching funds).The Program does not support E85 or biodiesel projects. For the purpose of the Program, clean fuels include propane, compressed natural gas, and electricity. (Reference Utah Code 19-1-401 through 19-1-405)

Tax Credit (compressed natural gas vehicles)

The state provides an income tax credit of 35% of the vehicle purchase price, up to $2,500, for an original equipment manufacturer compressed natural gas vehicle registered in Utah. Other new clean fuel vehicles that meet air quality and fuel economy standards may be eligible for a credit of $605, including certain electric and hybrid electric vehicles. These incentives expire December 31, 2013. See the Clean Fuel Vehicle Tax Credit website for eligible vehicles, restrictions, and additional information. (Reference Utah Code 19-1-402, 59-7-605, and 59-10-1009)

Tax Reduction (alternative fuels)

Propane and electricity used to operate motor vehicles are exempt from state fuel taxes. The reduced tax on compressed natural gas and liquefied natural gas is $0.085 per gasoline gallon equivalent; this rate will be modified proportionally with any changes to the traditional motor fuel rate. The Utah Revenue and Tax Code allows a reduction of motor and special fuel taxes if the motor or special fuel is already taxed by the Navajo Nation. Retailers, wholesalers, and suppliers of special fuel are eligible for a refund of the special fuel tax if dyed diesel fuel is mixed with special fuel and the mixed special fuel is returned to the refinery for re-refining. (Reference Utah Code 59-13-102, 59-13-201, 59-13-301, and 59-13-322)

Traffic Exemption (HOV lane)

Vehicles operating on propane, compressed natural gas, liquefied natural gas, or electricity are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must display special clean fuel decal issued by the Utah Department of Transportation. (Reference Utah Code 41-1a-416, 41-1a-418, 41-6a-702, 59-13-102, and 72-6-121)