Title 42, The Public Health and WelfareRelease 119-110

§13235 State and Local Incentives Programs

Title 42 › CHAPTER 134 — ENERGY POLICY › SUBCHAPTER II — ALTERNATIVE FUELS—NON-FEDERAL PROGRAMS › § 13235

Last updated Sep 23, 2026|Official source

Summary

The Secretary must write rules within one year after October 24, 1992 to guide State plans that speed up the use of alternative fuels and vehicles. After those rules take effect, each Governor has one year to send a plan. Plans must aim to put substantial numbers of alternative fueled vehicles into use by the year 2000 and must include a cost estimate. To get federal help, a plan must show how the State will work with federal and local governments and must examine about 11 kinds of actions, including tax breaks, putting alternative fueled vehicles into state fleets, special parking, public education, how alternative fuels are sold, making fuels and electric charging available, allowing utilities to include certain costs in rates (only if it is fair), other incentives, needed legal changes, transit services, and effects on programs under the Intermodal Surface Transportation Efficiency Act of 1991. If a Governor’s approved plan asks for help, the Secretary may give information and technical aid, grants to carry out the plan, and grants to buy alternative fueled vehicles. The Secretary will consider life-cycle energy and environmental impacts, the number of vehicles expected by 2000, and other factors when approving plans and grant amounts. The State must pay at least 20 percent of the cost of any activity the federal government helps. The Secretary must consult with the Transportation Secretary, report each year to the President and Congress with specific information about state participation and benefits, and help States buy vehicles. Governor = the State’s chief executive. State = the 50 States, DC, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, and other U.S. territories. $10,000,000 is authorized for each of the 5 fiscal years beginning after October 24, 1992.

Full Legal Text

Title 42, §13235

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Establishment of program
(1)The Secretary shall, within one year after October 24, 1992, issue regulations establishing guidelines for comprehensive State alternative fuels and alternative fueled vehicle incentives and program plans designed to accelerate the introduction and use of such fuels and vehicles. Such guideline shall address the development, modification, and implementation of such State plans and shall describe those program elements, as described in paragraph (3), to be addressed in such plans.
(2)The Secretary, after consultation with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall invite the Governor of each State to submit to the Secretary a State plan within one year after the effective date of the regulations issued under paragraph (1). Such plan shall include—
(A)provisions designed to result in scheduled progress toward, and achievement of, the goal of introducing substantial numbers of alternative fueled vehicles in such State by the year 2000; and
(B)a detailed description of the requirements, including the estimated cost of implementation, of such plan.
(3)Each proposed State plan, in order to be eligible for Federal assistance under this section, shall describe the manner in which coordination shall be achieved with Federal and local governmental entities in implementing such plan, and shall include an examination of—
(A)exemption from State sales tax or other State or local taxes or surcharges (other than such taxes or surcharges which are dedicated for transportation purposes) with respect to alternative fueled vehicles, alternative fuels, or alternative fueling facilities;
(B)the introduction of alternative fueled vehicles into State-owned or operated motor vehicle fleets;
(C)special parking at public buildings and airport and transportation facilities;
(D)programs of public education to promote the use of alternative fueled vehicles;
(E)the treatment of sales of alternative fuels for use in alternative fueled vehicles;
(F)methods by which State and local governments might facilitate—
(i)the availability of alternative fuels; and
(ii)the ability to recharge electric motor vehicles at public locations;
(G)allowing public utilities to include in rates the incremental cost of—
(i)new alternative fueled vehicles;
(ii)converting conventional vehicles to operate on alternative fuels; and
(iii)installing alternative fuel fueling facilities,
but only to the extent that the inclusion of such costs in rates would not create competitive disadvantages for other market participants, and taking into consideration the effect inclusion of such costs would have on rates, service, and reliability to other utility customers;
(H)such other programs and incentives as the State may describe;
(I)whether accomplishing any of the goals in this subsection would require amendment to State law or regulation, including traffic safety prohibitions;
(J)services provided by municipal, county, and regional transit authorities; and
(K)effects of such plan on programs authorized by the Intermodal Surface Transportation Efficiency Act of 1991 and amendments made by that Act.
(b)Federal assistance to States
(1)Upon request of the Governor of any State with a plan approved under this section, the Secretary may provide to such State—
(A)information and technical assistance, including model State laws and proposed regulations relating to alternative fueled vehicles;
(B)grants of Federal financial assistance for the purpose of assisting such State in the implementation of such plan or any part thereof; and
(C)grants of Federal financial assistance for the acquisition of alternative fueled vehicles.
(2)In determining whether to approve a State plan submitted under subsection (a), and in determining the amount of Federal financial assistance, if any, to be provided to any State under this subsection, the Secretary shall take into account—
(A)the energy-related and environmental-related impacts, on a life cycle basis, of the introduction and use of alternative fueled vehicles included in the plan compared to conventional motor vehicles;
(B)the number of alternative fueled vehicles likely to be introduced by the year 2000, as a result of successful implementation of the plan; and
(C)such other factors as the Secretary considers appropriate.
(3)The Secretary, in consultation with the Administrator of General Services, shall provide assistance to States in procuring alternative fueled vehicles, including coordination with Federal procurements of such vehicles.
(4)The Secretary may not approve a State plan submitted under subsection (a) unless the State agrees to provide at least 20 percent of the cost of activities for which assistance is provided under paragraph (1).
(c)General provisions
(1)In carrying out this section, the Secretary shall consult with the Secretary of Transportation on matters relating to transportation and with other appropriate Federal and State departments and agencies.
(2)The Secretary shall report annually to the President and the Congress, and shall furnish copies of such report to the Governor of each State participating in the program, on the operation of the program under this section. Such report shall include—
(A)an estimate of the number of alternative fueled vehicles in use in each State;
(B)the degree of each State’s participation in the program;
(C)a description of Federal, State, and local programs undertaken in the various States, whether pursuant to a State plan under this section or not, to provide incentives for introduction of alternative fueled vehicles;
(D)an estimate of the energy and environmental benefits of the program; and
(E)the recommendations of the Secretary, if any, for additional action by the Federal Government.
(d)Definitions
For the purposes of this section, the following definitions apply:
(1)Governor (2) State
The term “Governor” means the chief executive of a State.
(e)Authorization of appropriations
There are authorized to be appropriated for carrying out this section, $10,000,000 for each of the 5 fiscal years beginning after October 24, 1992.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Intermodal Surface Transportation Efficiency Act of 1991, referred to in subsec. (a)(3)(K), is Pub. L. 102–240, Dec. 18, 1991, 105 Stat. 1914. For complete classification of this Act to the Code, see

Short Title

of 1991 Amendment note set out under section 101 of Title 49, Transportation, and Tables.

Statutory Notes and Related Subsidiaries

Termination of Reporting RequirementsFor termination, effective May 15, 2000, of provisions in subsec. (c)(2) of this section relating to annual reports to Congress, see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance, and the 8th item on page 86 of House Document No. 103–7.

Reference

Citations & Metadata

Citation

42 U.S.C. § 13235

Title 42, The Public Health and Welfare

Last Updated

Sep 23, 2026

Release point: 119-110