West Virginia Policy Data

Summary

As of July of 2011, West Virginia offers an AFV tax credit for either vehicle conversion (50%) or new AFV purchase (35%). There is also a tax credit offering for building AFV infrastructure (50% up to $250,000). The State also offers school districts a 10% reimbursement from the Dept. of Education for AFV school buses.

In 2010, the West Virginia Legislature put forward a resolution to begin two studies related to alternative fuels.

The Legislature also passed a ruling requiring State Agencies to convert or purchase ongoing AFVs up to 75% of their fleet. There are provisions for waiving the requirement based on available infrastructure.

Vehicles

Current Estimated Fleet-based NGVs in West Virginia

~40

Vehicles by Fuel Type

Stations

Current Public NGV Fueling Stations - 3

Private NGV Fueling Stations - 1

Fuel Taxes

West Virginia Motor Fuel Taxation Website

CNG -23.6¢ per GGE 5.66 lbs. or 126.67 cu. ft. **

LNG -15.2¢ per gallon or 24.4¢ per 1.554 gallons of LNG **

Gasoline - 32.2¢ / Gallon **

Diesel - 32.2¢ / Gallon **

** Reference 1

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

Alternative Fuel Vehicle (AFV) Tax Credit

An income tax credit is available to eligible taxpayers who convert a vehicle to operate as a dedicated or bi-fuel natural gas or propane vehicle or who purchase a new original equipment manufacturer dedicated or bi-fuel natural gas or propane vehicle. The value of the tax credit is 35% of the vehicle purchase price or 50% of the vehicle conversion cost, up to $7,500 for vehicles with a gross vehicle weight rating (GVWR) up to 26,000 pounds (lbs.) and up to $25,000 for vehicles with a GVWR greater than or equal to 26,000 lbs. This tax credit expires December 31, 2017. (Reference Senate Bill 465, 2011, and West Virginia Code 11-6D)

Alternative Fueling Infrastructure Tax Credit

An income tax credit is available to eligible taxpayers who construct or purchase and install qualified alternative fueling infrastructure. The tax credit is 20% of the total allowable costs associated with construction or purchase and installation of the equipment, up to $400,000 per facility. For the purpose of this tax credit, qualified alternative fuels include natural gas and propane. This tax credit expires December 31, 2017. (Reference Senate Bill 465, 2011, and West Virginia Code 11-6D)

Alternative Fuel School Bus Incentive

Any county that uses compressed natural gas (CNG) for the operation of any portion of its school bus fleet is eligible for a 10% reimbursement from the West Virginia Department of Education to help offset the cost of maintenance, operation, and other costs incurred from using those CNG school buses. Counties receiving this reimbursement that also use biodiesel school buses may receive an additional 7.5% reimbursement to help offset the cost of maintenance, operation, and other costs incurred from the biodiesel buses. The biodiesel bus reimbursement will decrease to 5% for the 2015-2016 school year and to 2.5% for the 2016-2017 school year, expiring after the 2016-2017 school year. Any county qualifying for this allowance must submit a plan that includes the future use of the CNG or biodiesel fueled school buses to the Department of Education. (Reference West Virginia Code 18-9A-7)

Point of Contact
Benjamin Shew
Executive Director
West Virginia Department of Education, Office of School Transportation
Phone: (304) 558-2711
Fax: (304) 558-8867
bshew@access.k12.wv.us
http://wvde.state.wv.us/

Laws & Regs

Legislative Session Dates:	January 8 - March 20
Legislature Website:	http://www.legis.state.wv.us/

Alternative Fuel Production Subsidy Prohibition

Incentives or subsidies from political subdivisions for the production of alternative fuels are prohibited by law, with exceptions for certain coal-based liquid fuels. (Reference West Virginia Code 8-27A-3 and 11-13D-3D)

Natural Gas Vehicle (NGV) and Infrastructure Initiative

The West Virginia Natural Gas Vehicle Task Force was established to: perform a cost-benefit analysis of NGVs; research and analyze the potential for the state to operate pilot public access natural gas fueling stations; communicate with executive agencies in states that are in the process of transitioning their fleets to natural gas and encourage infrastructure development; explore partnerships with the natural gas industry; examine options for modernizing the state motor fuel excise tax related to natural gas; and develop a communications strategy to educate citizens about the economic, environmental, and safety benefits of operating NGVs. (Reference Executive Order 10, 2012)

Provision for Establishment of Alternative Fuel Vehicle (AFV) Acquisition Requirements

The West Virginia Department of Administration may require that up to 75% of a state agency's fleet consist of AFVs. To meet these requirements, agencies may purchase or lease AFVs, or convert existing vehicles to operate using alternative fuels. The Department of Administration may waive this requirement if an agency's vehicles are operating in an area where the agency cannot reasonably establish a central alternative fueling station or the lifetime cost of the vehicle or fueling infrastructure is significantly higher as compared to conventional vehicles or fuels. In addition, this requirement does not apply to law enforcement, emergency, public transit authority, state rail authority, non-road vehicles, or school buses. (Reference West Virginia Code 5A-2A-1 and 5A-2A-2)

Alternative Fuel Use Requirement

West Virginia higher education governing boards must use alternative fuels to the maximum extent feasible. (Reference Senate Bill 330, 2011, and West Virginia Code 18B-5-9)

Alternative Fuels Tax

Alternative fuels are subject to an excise tax at a rate of $0.205 per gasoline gallon equivalent, with a variable component equal to at least 5% of the average wholesale price of the fuel. (Reference West Virginia Code 11-14C-2, 11-14C-5, 11-14C-6a, 11-15A-13a, and 11-15-18b)

Proposed Bills

2016 Session - Proposed Legislation

SB-505

Exempts field gas from motor vehicle excise tax if used in drilling equipment. Reference - SB505 Bill History, Reference - SB505 Bill Text

2015 Session - Proposed Legislation

HB-2478

Amends the school bus funding program to make propane eligible for 10% increase in cost allocation; this already applies to compressed natural gas. Reference - HB2478 Bill History, Reference - HB2478 Bill Text Enacted 3/31/2015

SB-87

Makes changes to requirements for conversions of vehicles to operate on alternative fuel. Requires CSA certified technicians for conversion facilities and requires that all retrofits and conversions to be EPA certified or approved except in the case of dual-fuel modifications that use mixers and not fumigation. Reference - SB87 Bill History, Reference - SB87 Bill Text

2014 Session - Proposed Legislation

HB-2044

Requires adoption of CA LEV II regulations for 2015 forward. Reference - HB2044 Bill History, Reference - HB2044 Bill Text Pending: House Roads & Transportation Committee

HB-2182

Long Bill. Economic stimulus bill intended to encourage advanced technology
industries. Provides tax benefits for new jobs created in certain industries including
alternative fuel vehicles and alternative fuel infrastructure. Reference - HB2182 Bill History, Reference - HB2182 Bill Text Pending: House Small Business, Entrepreneurship and Economic Development Committee

HB-2817

Modifies the existing alternative fuel vehicle and fueling infrastructure credits by removing incentive for certain types of vehicles (E85, Methanol, alcohols) and allowing conversions to be bi-fuel instead of only dedicated vehicles. And it allows state and local governments to qualify for tax credits so that they can sell or transfer them; subject to $2 million per year limitation on vehicles and $2 million refueling infrastructure. Must apply to the Tax Department for approval of transfers. The transferability of vehicle tax credits appears to be limited to NGVs and does not include LPG vehicles but it does include "natural gas hydrocarbon and derivative vehicles." Reference - HB2817 Bill History, Reference - HB2817 Bill Text Pending: House Roads & Transportation Committee

HB-2921

Provides a consumer sales tax exemption for natural gas vehicles including
dedicated and dual-fuel vehicles. Effective July 1, 2013. Dual-fuel limited to vehicles
that operate on natural gas and gasoline. Reference - HB2921 Bill History, Reference - HB2921 Bill Text Pending: House Roads & Transportation Committee

HB-2925

Requires Public Service Commission to authorize natural gas utility companies to invest in natural gas compression equipment to be installed in residential property for compressed natural gas fueling of automobiles. However, the Public Service Commission may not make rates for the sale and use of compressed natural gas as an alternative fuel Reference - HB2925 Bill History, Reference - HB2925 Bill Text Pending: House Energy Committee

HB-4343

Economic development bill. Provides tax credits for certain industries that create new jobs and including related to production of NGVs and natural gas fueling infrastructure. Reference - HB4343 Bill History, Reference - HB4343 Bill Text Action: 2014-03-31 - Vetoed by Governor 3/31/14

SB-312

Long economic stimulus bill. Includes provisions relating to alternative fuel vehicle production. Tax credits are tied to creating jobs in certain fields.Reference - SB312 Bill History, Reference - SB312 Bill Text Pending: Senate Finance Committee

SB-476

Requires CSA certified technicians for conversion facilities and requires that all retrofits and conversions to be EPA certified or approved except in the case of dual-fuel modifications that use mixers and not fumigation.Reference - SB476 Bill History, Reference - SB476 Bill Text Pending: House Judiciary Committee

2013 Session - Proposed Legislation

HB-2129

Amends current tax credits for AFVs and AF infrastructure credits so the credits may be transferred or assigned. This would extend to governmental entities. Reference - HB2129 Bill History, Reference - HB2129 Bill Text Pending: House Finance Committee; died in committee

HB-2182

Emerging Technology promotion. Provides preferential tax treatment for businesses that are involved in emerging technology issues. Natural gas vehicles and other alternative fuel vehicles potentially qualify. Reference - HB2182 Bill History, Reference - HB2182 Bill Text Pending: House Finance Committee; died in committee

HB-2506

Amends the current tax credits for AFVs and AF infrastructure so that after 2012 only natural gas and propane qualify. Also does away with the home fueling infrastructure credit after April 2012. It also modifies the period for the credits so that they now expire at end of 2017 instead of 2021. With respect to carry-over of unused portion of credits, bill limits this to two years. Reference - HB2506 Bill History, Reference - HB2506 Bill Text Pending: House Roads & Transportation Committee; died in committee

HB-2727

Makes changes to the funding authorization for school buses. Under WV law, school districts are authorized to spend an additional 10 percent allowance for alternative fuel school buses. This change limits this provision to compressed natural gas and propane fueled buses. Substitute 3/28/2013 provides authority to continue existing biodiesel programs. The substitute also dropped propane. Reference - HB2727 Bill History, Reference - HB2727 Bill Text Enacted 5/1/2013; Act No. 67

HB-2817

Makes changes to the funding authorization for school buses. Under WV law, school districts are authorized to spend an additional 10 percent allowance for alternative fuel school buses. This change limits this provision to compressed natural gas and propane fueled buses. Substitute 3/28/2013 provides authority to continue existing biodiesel programs. The substitute also dropped propane. Reference - HB2817 Bill History, Reference - HB2817 Bill Text Pending: House Roads & Transportation Committee; died in committee

HB-2886

Companion to SB 454. Makes various adjustments to the taxation of motor fuels including taxing CNG and LNG based on a gasoline gallon equivalent (GGE). A GGE is defined by reference to the NIST standard found in Handbook 130 or pursuant to guidelines issued by the Tax Commissioner. The bill indicates the Commissioner may set the equivalent units based on NIST, IRS, and other guidelines. The tax rate for CNG and LNG is $0.205 per gallon equivalent plus a variable component that is based on 5% of the wholesale Reference - HB2886 Bill History, Reference - HB2886 Bill Text Pending: House Roads & Transportation Committee; died in committee

HB-2921

Provides sales tax exemption for natural gas vehicles including dedicated and dual-fuel vehicles. Effective July 1, 2013 Reference - HB2921 Bill History, Reference - HB2921 Bill Text Pending: House Roads & Transportation Committee; died in committee

HB-2925

The purpose of this bill is to require the Public Service Commission to authorize natural gas utility companies to invest in natural gas compression equipment to be installed in residential property for compressed natural gas fueling of automobiles. It further provides that the Public Service Commission may not make rates for the sale and use of compressed natural gas as an alternative fuel Reference - HB2925 Bill History, Reference - HB2925 Bill Text Pending: House House Energy, Industry and Labor, Economic Development and Small Business Committee; died in committee

SB-185

Companion to HB 2506. Amendments made 3/27/2013 make some changes such as terminating the home fueling credit after 4/15/2013; and terminating the credits for other alternative fuels after 4/15/2013, also. Reference - SB185 Bill History, Reference - SB185 Bill Text Signed by Governor 5/3/2013; Act No. 184

SB-354

Study of motor fuel tax revenue and alternative revenue mechanisms. Reference - SB354 Bill History, Reference - SB354 Bill Text Pending: House Finance Committee; died in committee

SB-366

Amends current alternative fuel tax credits so that they no longer apply to ethanol or methanol fueled vehicles. Allows conversion of existing vehicles to qualify for credit. Also allows state or local government entities to qualify for the tax credits so that they can transfer or sell them to other entities, subject to an annual limit on such transfers of $2 million for AFV credits and $2 million for fueling infrastructure credits. Reference - SB366 Bill History, Reference - SB366 Bill Text Pending: Senate Transportation and Infrastructure Committee; died in committee

SB-370

WV has an allowance formula for school transportation costs and this formula allows an additional 10 percent cost allowance in the case of alternative fuel buses for alternative fuel buses; this bill would indicate that only natural gas and propane qualify. Reference - SB370 Bill History, Reference - SB370 Bill Text Pending: Senate Education Committee; died in committee

SB-454

Makes various adjustments to the taxation of motor fuels including taxing CNG and LNG based on a gasoline gallon equivalent (GGE). A GGE is defined by reference to the NIST standard found in Handbook 130 or pursuant to guidelines issued by the Tax Commissioner. The bill indicates the Commissioner may set the equivalent units based on NIST, IRS, and other guidelines. The tax rate for CNG and LNG is $0.205 per gallon equivalent plus a variable component that is based on 5% of the wholesale price of the alternative fuel. Effective Jan. 1, 2014. Reference - SB454 Bill History, Reference - SB454 Bill Text Signed by the Governor 5/3/2013; Act No. 192

SB-493

Requires CSA certified technicians for conversion facilities and requires that all retrofits and conversions to be EPA certified or approved except in the case of dual-fuel modifications that use mixers and not fumigation. Reference - SB493 Bill History, Reference - SB493 Bill Text Pending: House Judiciary Committee; died in committee

SB-520

Contains provisions similar to that found in HB 2182 - promotes emerging technologies with incentives. Reference - SB520 Bill History, Reference - SB520 Bill Text Pending: Senate Finance Committee; died in committee

This state was last examined and updated in July, 2016.