Connecticut Incentives and Laws



Last Updated July 2008


Connecticut is the home of the Capital Clean Cities of Connecticut, Inc., New Haven, Inc., Southwestern Area, and Norwich (www.norwichpublicutilities.com/efficiency-cleancities.html) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Exemption

Prior to July 1, 2008, the following purchases are exempt from sales tax: new dedicated compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), hydrogen, or electric vehicles; equipment used in dedicated or dual fuel CNG, LNG, LPG, hydrogen, or electric vehicle conversions; and equipment associated with a CNG or hydrogen filling or electric recharging station. Between October 1, 2004, and October 1, 2008, new HEVs with a U.S. Environmental Protection Agency fuel economy rating of at least 40 miles per gallon are also exempt from sales tax. An HEV is defined as a passenger car that 1) draws acceleration energy from two onboard sources of stored energy, which are both an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system, and 2) for an HEV produced during and after model year 2004, is certified to meet or exceed the Tier II Bin 5 Low Emission Vehicle classification. (Reference Connecticut General Statutes 12-412-67, 68, 69, and 115)
Point of Contact

Taxpayer Services Division
Connecticut Department of Revenue
Phone (860) 297-5962
http://www.ct.gov/drs

Biodiesel Production and Distribution Grants

The Connecticut Qualified Biodiesel Producer Incentive Account, managed by the Department of Economic and Community Development, provides grants to qualified biodiesel producers and distributors. A qualified biodiesel producer is eligible for up to 60 monthly grants from the account, up to a total grant per fiscal year equal to: 1) $0.30 per gallon for the first five million gallons of biodiesel produced; 2) $0.20 per gallon for the second five million gallons of biodiesel produced; and 3) $0.10 per gallon for the third five million gallons of biodiesel produced. Any portion of biodiesel produced by a qualified biodiesel producer in excess of 15 million gallons per fiscal year is not eligible for these grants. A one-time grant for the purchase of equipment or establishment or retrofit of production facilities is also available; grants may not exceed either $3 million dollars or 25% of the equipment or construction cost. Additional grant funding up to $50,000 per distributor/site is available for the actual costs of creating storage and distribution capacity for biodiesel. (Reference Connecticut General Statutes 32-324a to 32-324f)
Biofuels Support

The Department of Economic and Community Development is required to administer a fuel diversification grant program to provide funding to Connecticut institutions of higher education or Connecticut institutions of agricultural research for purposes which may include research to promote biofuel production from agricultural products, algae and waste grease, as well as biofuel quality testing. (Reference Connecticut General Statutes 32-324g)
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Parking – New Haven

The City of New Haven provides free parking on all city streets for HEVs and AFVs registered in New Haven. HEV and AFV vehicle owners must obtain a non-transferable pass from the Department of Traffic and Parking to place on the vehicle's dashboard or hang from the rearview mirror. AFVs and HEVs are subject to all time and other posted parking restrictions. (Reference New Haven Code of General Ordinances, Title III, Chapter 29, Article III, Division 1, Section 29-56)
Point of Contact

Department of Traffic and Parking
City of New Haven
Phone 203-946-8075
Fax 203-946-8074
http://www.cityofnewhaven.com/TrafficParking/

State Laws and Regulations

Vehicle Greenhouse Gas Labeling Requirement

The Commissioner of the Department of Environmental Protection is required to work with the Commissioner of the Department of Motor Vehicles to: 1) establish a greenhouse gas (GHG) labeling program for new motor vehicles with a gross vehicle weight rating of 10,000 pounds or less that are sold or leased in Connecticut beginning with Model Year 2009; and 2) educate the public about the labeling program and GHGs. (Reference Connecticut General Statutes 22a-201 through 22a-201c)
Alternative Fuel Vehicle (AFV) Procurement Preference

In determining the lowest responsible qualified bidder for the award of state contracts, the Commissioner of Administrative Services may give a price preference of up to 10% for the purchase of AFVs, or for the purchase of vehicles powered by fuel other than a clean alternative fuel plus conversion equipment to convert the vehicles to dual or dedicated alternative fuel use. For these purposes, alternative fuel means natural gas or electricity when used as a motor vehicle fuel. (Reference Connecticut General Statutes 4a-59)
Ethanol Labeling Requirement

Any motor vehicle fuel sold at retail containing more than 1% ethanol must be labeled according to specifications established by the Commissioner of Consumer Protection, indicating the percentage of ethanol in the fuel. (Reference Connecticut General Statutes 16a-15)
Hydrogen and Fuel Cell Promotion

The Connecticut Center for Advanced Technology (CCAT), with funding from the Department of Economic and Community Development (DECD), has established a Connecticut Hydrogen-Fuel Cell Coalition (Coalition). The Coalition works to enhance economic growth through the development, manufacture, and deployment of fuel cell and hydrogen technologies and associated fueling systems in the state. As required by Public Act 06-187, Section 64, the CCAT prepared and submitted the Plan for Fuel Cell Economic Development (PDF 3MB) to DECD, which was developed to: 1) identify and assess market conditions for fuel cell and hydrogen technology, including the economic potential for Connecticut; 2) analyze Connecticut’s hydrogen and fuel cell industry; 3) examine issues and identify solutions; and 4) identify and assess strategies to enhance Connecticut’s hydrogen and fuel cell industry for increased employment, revenues, and economic development. The Plan for Fuel Cell Economic Development suggests there are favorable market conditions for the expansion of the hydrogen and fuel cell industry in Connecticut, that public investment is appropriate and justified, that investment in hydrogen and fuel cell technology would provide a favorable return for the state, and that there are favorable sites for deployment of hydrogen and fuel cell technology in Connecticut to meet pressing energy needs, improve environmental performance, increase economic development, and create new jobs. (Reference Connecticut General Statutes 578-32-9vv and 578-32-9ww)
Point of Contact

Joel M. Rinebold
Director of Energy Initiatives
Connecticut Center for Advanced Technology
Phone (860) 291-8832
Fax (860) 291-8874
jrinebold@ccat.us
http://www.chfcc.org

Alternative Fuel Vehicle (AFV) Acquisition and Emissions Reduction Requirements


The fleet of cars and/or light-duty trucks purchased by the state must: 1) have an average U.S. Environmental Protection Agency estimated fuel economy of at least 40 miles per gallon; 2) comply with state fleet vehicle acquisition requirements set forth under the Energy Policy Act of 1992; and 3) obtain the best achievable fuel economy per pound of carbon dioxide emitted for the applicable vehicle classes. AFVs purchased by the state to comply with these requirements must be capable of operating on an alternative fuel that is available in the state. Department of Public Safety vehicles that the Commissioner of Public Safety and Commissioner of Administrative Services designate as necessary for the Department of Public Safety to carry out its mission are exempt from these provisions.
Beginning January 1, 2008, at least 50% of all cars and light-duty trucks purchased or leased by the state must be capable of using alternative fuel, hybrid electric vehicles, or plug-in electric vehicles. All AFVs purchased or leased must be certified to the California Air Resources Board's (ARB) Low Emission Vehicle II Ultra Low Emission Vehicle Standard, and all light-duty gasoline vehicles and hybrid electric vehicles purchased or leased by the state must be certified, at a minimum, to the California ARB Low Emission Vehicle II Ultra Low Emission Vehicle Standard. Beginning January 1, 2012, the required percentage increases to 100%. The Commissioner of Administrative Services is required to report annually on the composition of the state fleet, including the volume of alternative fuels used.
(Reference Connecticut General Statutes 4a-67d)

School Bus Emissions Reduction


The Commissioner of Environmental Protection and Commissioner of Education are required to establish a school bus emissions reduction program which will include the following: 1) establishment of grants for municipalities and local and regional school boards for reimbursement of the cost of retrofitting full-sized school buses that are projected to be in service on or after September 1, 2010; 2) development of an outreach plan and educational materials regarding the program, and; 3) assistance to municipalities and local and regional boards of education and bus companies to retrofit their full-sized school buses.
Prior to September 1, 2010, each full-sized school bus with an engine model year of 1994 or newer, transporting children in the state, must be equipped with specific emissions control systems, including either: 1) a closed crankcase filtration system and a level 1 device, level 2 device or level 3 device; 2) an engine certified by the U.S. Environmental Protection Agency (EPA) to meet Model Year 2007 emission standards; or 3) use compressed natural gas or other alternative fuel certified by the EPA or the California Air Resources Board to reduce particulate matter emissions by at least 85% as compared to ultra-low sulfur diesel fuel.
(Reference Connecticut General Statutes 14-164o, 22a-21j, and 22a-21k)

Idle Reduction Requirement

School bus operators are prohibited from idling the engine of any school bus for more than three consecutive minutes when the school bus is not in motion except under the following conditions apply:

1) The school bus is forced to remain motionless because of traffic conditions or mechanical difficulties over which the operator has no control;

2) It is necessary to operate heating, cooling, safety or auxiliary equipment installed on the school bus;

3) The outdoor temperature is below 20 degrees Fahrenheit;

4) It is necessary to maintain a safe temperature for students with special needs;

5) The school bus is being repaired; or

6) The operator is in the process of receiving or discharging passengers on a public highway or public road.

(Reference Connecticut General Statutes 14-277)

Low Emission Vehicle Standards

The Commissioner of Environmental Protection has adopted regulations to implement the light-duty motor vehicle emission standards of the state of California for vehicles with a model year of 2008 or later. (Reference Connecticut General Statutes 22a-174g)
Alternative Fuel Taxicab Regulation

In compliance with any other regulations governing the use of taxicabs, any alternative fuel sedan or station wagon with a wheelbase of at least 102 inches may be used to provide taxicab service. (Reference Connecticut General Statutes 13b-96)
Emissions Reduction Credits

Any state mobile emission reduction credits program must allow credit for emission reductions achieved by converting a vehicle to operate on an alternative fuel when such conversions are eligible for such a credit, even if the conversion took place before the credit program began. (Reference Connecticut General Statutes 22a-174i)
Utilities/Private Incentives

Natural Gas Infrastructure and Technical Assistance

Southern Connecticut Gas Company and Connecticut Natural Gas provide technical and advisory assistance for alternative fuel fueling station construction, fleet management, and vehicle conversions. Both utilities will assist fleet operators with natural gas vehicle planning, purchases, converting vehicles to operate on natural gas, and fueling station construction on a project-specific basis.
Point of Contact

Michael Smalec
Manager Commercial, Industrial and Key Accounts
Southern Connecticut Gas Company/ Connecticut Natural Gas Corporation
Phone (203) 795-7748 or (860) 727-3327
Fax (203) 795-7619
msmalec@soconngas.com

Points of Contact:

NAME/EMAIL	AGENCY	TITLE	PHONE/FAX
Lee Grannis lgrannis@snet.net	Greater New Haven Clean Cities Coalition, Inc.	Clean Cities Coordinator	Phone: (203) 627-3715 Fax: (203) 393-3433
Brian McGrath soggy3@aol.com	Greater New Haven Clean Cities Coalition, Inc.	Clean Cities Coordinator	Phone: (203) 946-7727 Fax: (203) 946-7808
Craig Peters craig.peters@manchesterhonda.com	Capital Clean Cities of Connecticut, Inc.	Clean Cities Coordinator	Phone: (800) 255-2631 Fax: (860) 646-8861
David Levine dave@ct.necoxmail.com	Capital Clean Cities of Connecticut, Inc.	Clean Cities Coordinator	Phone: (860) 653-7744 Fax: (860) 653-0858
Ed Boman eboman@town.fairfield.ct.us	Southwestern Area Clean Cities Coalition	Clean Cities Coordinator	Phone: (203) 256-3010 Fax: (203) 256-3080
Pete Polubiatko pete@ncdevcorp.org	Norwich Clean Cities Coalition	Clean Cities Coordinator	Phone: (860) 887-6964 Fax: (860) 887-3438
Mike Scarpino michael.scarpino@netl.doe.gov	U.S. Department of Energy, National Energy Technology Laboratory	Project Manager	Phone: (412) 386-4726 Fax: (412) 386-5835
	Connecticut Department of Revenue	Taxpayer Services Division	Phone: (860) 297-5962 Fax:
	City of New Haven	Department of Traffic and Parking	Phone: 203-946-8075 Fax: 203-946-8074
Joel M. Rinebold jrinebold@ccat.us	Connecticut Center for Advanced Technology	Director of Energy Initiatives	Phone: (860) 291-8832 Fax: (860) 291-8874
Michael Smalec msmalec@soconngas.com	Southern Connecticut Gas Company/ Connecticut Natural Gas Corporation	Manager Commercial, Industrial and Key Accounts	Phone: (203) 795-7748 or (860) 727-3327 Fax: (203) 795-7619
Richard Guggenheim srguggenheim.seccog@snet.net	Southeastern Connecticut Council of Governments	Assistant Director	Phone: (860) 889-2324 Fax: (860) 889-1222
Robert Judge judge.robert@epa.gov	U.S. Environmental Protection Agency	Environmental Engineer, Region 1	Phone: (617) 918-1045 Fax: (617) 918-0045