---
kind: "section"
citation: "42 U.S.C. § 13235"
title: "42"
title_heading: "The Public Health and Welfare"
number: "13235"
heading: "State and local incentives programs"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/13235"
units:
  - "Chapter 134 — Energy Policy"
  - "Subchapter II — Alternative Fuels—non-Federal Programs"
---

# §13235. State and local incentives programs

- (a) **Establishment of program—**
  - (1) The [Secretary](/usc/42/242q–4.md?p=2) shall, within one year after October 24, 1992, issue regulations establishing guidelines for comprehensive [State](/usc/42/2021b.md?p=14) [alternative fuels](/usc/42/13211.md?p=2) and [alternative fueled vehicle](/usc/42/13211.md?p=3-A) incentives and program plans designed to accelerate the introduction and use of such fuels and vehicles. Such guideline[^1] shall address the development, modification, and implementation of such [State](/usc/42/2021b.md?p=14) plans and shall describe those program elements, as described in [paragraph (3)](#a-3), to be addressed in such plans.
  - (2) The [Secretary](/usc/42/242q–4.md?p=2), after consultation with the [Secretary](/usc/42/242q–4.md?p=2) of Transportation and the [Administrator](/usc/42/13211.md?p=1) of the Environmental Protection [Agency](/usc/42/8262.md?p=1), shall invite the Governor of each [State](/usc/42/2021b.md?p=14) to submit to the [Secretary](/usc/42/242q–4.md?p=2) a [State](/usc/42/2021b.md?p=14) plan within one year after the effective date of the regulations issued under [paragraph (1)](#a-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](/usc/42/13211.md?p=3-A) in such [State](/usc/42/2021b.md?p=14) 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](/usc/42/2021b.md?p=14) 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](/usc/42/2021b.md?p=14) sales tax or other [State](/usc/42/2021b.md?p=14) or local taxes or surcharges (other than such taxes or surcharges which are dedicated for transportation purposes) with respect to [alternative fueled vehicles](/usc/42/13211.md?p=3-A), [alternative fuels](/usc/42/13211.md?p=2), or alternative fueling facilities;
    - (B) the introduction of [alternative fueled vehicles](/usc/42/13211.md?p=3-A) into [State](/usc/42/2021b.md?p=14)-owned or operated [motor vehicle](/usc/42/13211.md?p=13) [fleets](/usc/42/13211.md?p=9);
    - (C) special parking at public buildings and airport and transportation facilities;
    - (D) programs of public education to promote the use of [alternative fueled vehicles](/usc/42/13211.md?p=3-A);
    - (E) the [treatment](/usc/42/11851.md?p=11) of sales of [alternative fuels](/usc/42/13211.md?p=2) for use in [alternative fueled vehicles](/usc/42/13211.md?p=3-A);
    - (F) methods by which [State](/usc/42/2021b.md?p=14) and local governments might facilitate—
      - (i) the availability of [alternative fuels](/usc/42/13211.md?p=2); and
      - (ii) the ability to recharge electric [motor vehicles](/usc/42/13211.md?p=13) at public locations;
    - (G) allowing public utilities to include in rates the incremental cost of—
      - (i) new [alternative fueled vehicles](/usc/42/13211.md?p=3-A);
      - (ii) converting conventional vehicles to operate on [alternative fuels](/usc/42/13211.md?p=2); and
      - (iii) installing [alternative fuel](/usc/42/13211.md?p=2) 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](/usc/42/7275.md?p=5);

    - (H) such other programs and incentives as the [State](/usc/42/2021b.md?p=14) may describe;
    - (I) whether accomplishing any of the goals in this subsection would require amendment to [State](/usc/42/2021b.md?p=14) 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](/usc/42/2021b.md?p=14) with a plan approved under this section, the [Secretary](/usc/42/242q–4.md?p=2) may provide to such [State](/usc/42/2021b.md?p=14)—
    - (A) information and technical assistance, including model [State](/usc/42/2021b.md?p=14) laws and proposed regulations relating to [alternative fueled vehicles](/usc/42/13211.md?p=3-A);
    - (B) grants of Federal financial assistance for the purpose of assisting such [State](/usc/42/2021b.md?p=14) in the implementation of such plan or any part thereof; and
    - (C) grants of Federal financial assistance for the acquisition of [alternative fueled vehicles](/usc/42/13211.md?p=3-A).
  - (2) In determining whether to approve a [State](/usc/42/2021b.md?p=14) plan submitted under [subsection (a)](#a), and in determining the amount of Federal financial assistance, if any, to be provided to any [State](/usc/42/2021b.md?p=14) under this subsection, the [Secretary](/usc/42/242q–4.md?p=2) 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](/usc/42/13211.md?p=3-A) included in the plan compared to conventional [motor vehicles](/usc/42/13211.md?p=13);
    - (B) the number of [alternative fueled vehicles](/usc/42/13211.md?p=3-A) 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](/usc/42/242q–4.md?p=2) considers appropriate.
  - (3) The [Secretary](/usc/42/242q–4.md?p=2), in consultation with the [Administrator](/usc/42/13211.md?p=1) of General Services, shall provide assistance to [States](/usc/42/2021b.md?p=14) in procuring [alternative fueled vehicles](/usc/42/13211.md?p=3-A), including coordination with Federal procurements of such vehicles.
  - (4) The [Secretary](/usc/42/242q–4.md?p=2) may not approve a [State](/usc/42/2021b.md?p=14) plan submitted under [subsection (a)](#a) unless the [State](/usc/42/2021b.md?p=14) agrees to provide at least 20 percent of the cost of activities for which assistance is provided under [paragraph (1)](#b-1).
- (c) **General provisions—**
  - (1) In carrying out this section, the [Secretary](/usc/42/242q–4.md?p=2) shall consult with the [Secretary](/usc/42/242q–4.md?p=2) of Transportation on matters relating to transportation and with other appropriate Federal and State departments and [agencies](/usc/42/8262.md?p=1).
  - (2) The [Secretary](/usc/42/242q–4.md?p=2) shall report annually to the President and the Congress, and shall furnish copies of such report to the Governor of each [State](/usc/42/2021b.md?p=14) 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](/usc/42/13211.md?p=3-A) in use in each [State](/usc/42/2021b.md?p=14);
    - (B) the degree of each [State](/usc/42/2021b.md?p=14)’s participation in the program;
    - (C) a description of Federal, [State](/usc/42/2021b.md?p=14), and local programs undertaken in the various [States](/usc/42/2021b.md?p=14), whether pursuant to a [State](/usc/42/2021b.md?p=14) plan under this section or not, to provide incentives for introduction of [alternative fueled vehicles](/usc/42/13211.md?p=3-A);
    - (D) an estimate of the energy and environmental benefits of the program; and
    - (E) the recommendations of the [Secretary](/usc/42/242q–4.md?p=2), if any, for additional action by the Federal Government.
- (d) **Definitions—** For the purposes of this section, the following definitions apply:
  - (1) **Governor—** The term “Governor” means the chief executive of a [State](/usc/42/2021b.md?p=14).
  - (2) **State—** The term “[State](/usc/42/2021b.md?p=14)” means each of the several [States](/usc/42/2021b.md?p=14), the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other Commonwealth, territory, or possession of the United States.
- (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.

## Footnotes

[^1]: So in original. Probably should be “guidelines”.

## Source credit

(Pub. L. 102–486, title IV, § 409, Oct. 24, 1992, 106 Stat. 2882.)

## Notes

### 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 Requirements

For 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.