Title 42, The Public Health and WelfareRelease 119-110

§13258 Credits

Title 42 › CHAPTER 134 — ENERGY POLICY › SUBCHAPTER III — AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE FUELS, AND ALTERNATIVE FUELED PRIVATE VEHICLES › § 13258

Last updated Sep 22, 2026|Official source

Summary

The Secretary gives credits to fleets or people who must buy alternative-fueled vehicles when they buy more than required or buy them before the required date. The law names types of vehicles that qualify: a fuel cell electric vehicle (uses a fuel cell), a hybrid electric vehicle (a new qualified hybrid), a medium- or heavy-duty electric vehicle (over 8,501 pounds), a neighborhood electric vehicle (4 wheels, top speed over 20 mph but not more than 25 mph, and has an on-board rechargeable battery), and a plug-in electric drive vehicle (battery of at least 4 kilowatt-hours that can be recharged from an outside source). The Secretary must set credit amounts by January 31, 2009 and can also give 1 to 5 extra credits for investments in new technologies and in alternative fuel equipment or infrastructure to encourage less oil use, better technology, and lower emissions. Each credit counts as one vehicle for meeting the buying rules, and if a vehicle is bought early the fleet gets one credit per vehicle for each year it is early. A credit can be used for compliance in only one year. Credits can be freely transferred to other fleets or people who must follow the rules, but for the alternative fuel provider program a transferred credit counts only if that program’s specific rule is met. Money is authorized as needed to carry out this program for fiscal years 2008 through 2013.

Full Legal Text

Title 42, §13258

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

(a)Definitions
In this section: (1) Fuel cell electric vehicle
(2)Hybrid electric vehicle
The term “hybrid electric vehicle” means a new qualified hybrid motor vehicle (as defined in section 30B(d)(3) of title 26).
(3)Medium
or heavy-duty electric vehicle
The term “medium- or heavy-duty electric vehicle” means an electric, hybrid electric, or plug-in hybrid electric vehicle with a gross vehicle weight of more than 8,501 pounds.
(4)Neighborhood electric vehicle
The term “neighborhood electric vehicle” means a 4-wheeled on-road or nonroad vehicle that—
(A)has a top attainable speed in 1 mile of more than 20 mph and not more than 25 mph on a paved level surface; and
(B)is propelled by an electric motor and on-board, rechargeable energy storage system that is rechargeable using an off-board source of electricity.
(5)Plug-in electric drive vehicle
The term “plug-in electric drive vehicle” means a vehicle that—
(A)draws motive power from a battery with a capacity of at least 4 kilowatt-hours;
(B)can be recharged from an external source of electricity for motive power; and
(C)is a light-, medium-, or heavy duty motor vehicle or nonroad vehicle (as those terms are defined in section 7550 of this title).
(b)In general
(1)Allocation
The Secretary shall allocate a credit to a fleet or covered person that is required to acquire an alternative fueled vehicle under this subchapter, if that fleet or person acquires an alternative fueled vehicle in excess of the number that fleet or person is required to acquire under this subchapter or acquires an alternative fueled vehicle before the date that fleet or person is required to acquire an alternative fueled vehicle under such subchapter.
(2)Electric vehicles
Not later than January 31, 2009, the Secretary shall—
(A)allocate credit in an amount to be determined by the Secretary for—
(i)acquisition of—
(I)a hybrid electric vehicle;
(II)a plug-in electric drive vehicle;
(III)a fuel cell electric vehicle;
(IV)a neighborhood electric vehicle; or
(V)a medium- or heavy-duty electric vehicle; and
(ii)investment in qualified alternative fuel infrastructure or nonroad equipment, as determined by the Secretary; and
(B)allocate more than 1, but not to exceed 5, credits for investment in an emerging technology relating to any vehicle described in subparagraph (A) to encourage—
(i)a reduction in petroleum demand;
(ii)technological advancement; and
(iii)a reduction in vehicle emissions.
(c)Allocation
In allocating credits under subsection (b), the Secretary shall allocate one credit for each alternative fueled vehicle the fleet or covered person acquires that exceeds the number of alternative fueled vehicles that fleet or person is required to acquire under this subchapter or that is acquired before the date that fleet or person is required to acquire an alternative fueled vehicle under such subchapter. In the event that a vehicle is acquired before the date otherwise required, the Secretary shall allocate one credit per vehicle for each year the vehicle is acquired before the required date. The credit shall be allocated for the same type vehicle as the excess vehicle or earlier acquired vehicle.
(d)Use of credits
At the request of a fleet or covered person allocated a credit under this section, the Secretary shall treat the credit as the acquisition of one alternative fueled vehicle of the type for which the credit is allocated in the year designated by that fleet or person when determining whether that fleet or person has complied with this subchapter in the year designated. A credit may be counted toward compliance for only one year.
(e)Transferability
A fleet or covered person allocated a credit under this section or to whom a credit is transferred under this section, may transfer freely the credit to another fleet or person who is required to comply with this subchapter. At the request of the fleet or person to whom a credit is transferred, the Secretary shall treat the transferred credit as the acquisition of one alternative fueled vehicle of the type for which the credit is allocated in the year designated by the fleet or person to whom the credit is transferred when determining whether that fleet or person has complied with this subchapter in the year designated. A transferred credit may be counted toward compliance for only one year. In the case of the alternative fuel provider program under section 13251 of this title, a transferred credit may be counted toward compliance only if the requirement of section 13251(a)(4) of this title is met.
(f)Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2013.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2007—Subsec. (a). Pub. L. 110–140, § 133(2), added subsec. (a). Former subsec. (a) redesignated (b). Subsec. (b). Pub. L. 110–140, § 133(1), (3), redesignated subsec. (a) as (b), designated existing provisions as par. (1), inserted par. heading, and added par. (2). Former subsec. (b) redesignated (c). Subsec. (c). Pub. L. 110–140, § 133(1), (4), redesignated subsec. (b) as (c) and substituted “subsection (b)” for “subsection (a)”. Former subsec. (c) redesignated (d). Subsecs. (d), (e). Pub. L. 110–140, § 133(1), redesignated subsecs. (c) and (d) as (d) and (e), respectively. Subsec. (f). Pub. L. 110–140, § 133(5), added subsec. (f).

Statutory Notes and Related Subsidiaries

Effective Date

of 2007 AmendmentAmendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an

Effective Date

note under section 1824 of Title 2, The Congress.

Reference

Citations & Metadata

Citation

42 U.S.C. § 13258

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110