42 U.S.C. § 13235 — State and local incentives programs

(a) Establishment of program: (1) Within one year of October 24, 1992, the Secretary^* had to issue regulations setting guidelines for comprehensive state alternative fuels and alternative fueled vehicle incentive and program plans, meant to speed up bringing these fuels and vehicles into use. The guidelines had to cover developing, changing, and carrying out such state plans, and describe what elements — listed in paragraph (3) — those plans should address. (2) After consulting the Secretary of Transportation and the EPA Administrator^*, the Secretary had to invite each state's governor to submit a state plan within one year of the guidelines taking effect. That plan had to include (A) provisions aimed at making scheduled progress toward getting substantial numbers of alternative fueled vehicles into that state by the year 2000, and (B) a detailed description of the plan's requirements, including estimated implementation cost. (3) To qualify for federal assistance, each proposed state plan had to describe how it would coordinate with federal and local governments, and examine: (A) exempting alternative fueled vehicles, alternative fuels, or fueling facilities from state sales tax or other state/local taxes or surcharges (other than ones dedicated to transportation); (B) bringing alternative fueled vehicles into state-owned or state-operated fleets; (C) special parking at public buildings, airports, and transportation facilities; (D) public education programs promoting alternative fueled vehicles; (E) how sales of alternative fuels for these vehicles would be taxed or treated; (F) ways state and local governments could make alternative fuels more available and make it easier to recharge electric vehicles in public places; (G) letting public utilities include in their rates the extra cost of new alternative fueled vehicles, converting conventional vehicles, and installing alternative fueling facilities — but only as far as doing so would not put other market players at a competitive disadvantage, and considering the effect on rates, service, and reliability for other utility customers; (H) any other programs or incentives the state wants to describe; (I) whether meeting any of these goals would require changing state law or regulation, including traffic safety rules; (J) services provided by municipal, county, and regional transit authorities; and (K) how the plan would affect programs under the Intermodal Surface Transportation Efficiency Act of 1991.

(b) Federal assistance to States: (1) At a governor's request, if their state's plan is approved, the Secretary may provide (A) information and technical help, including model state laws and proposed regulations on alternative fueled vehicles; (B) federal grants to help the state carry out all or part of its plan; and (C) federal grants to help the state buy alternative fueled vehicles. (2) In deciding whether to approve a state plan and how much federal money to give, the Secretary must consider (A) the plan's energy and environmental impacts, over the full life cycle, from bringing in alternative fueled vehicles compared to conventional ones; (B) how many alternative fueled vehicles the plan will likely bring in by 2000 if it succeeds; and (C) any other factors the Secretary thinks are appropriate. (3) The Secretary, working with the Administrator of General Services, must help states buy alternative fueled vehicles, including coordinating with federal vehicle purchases. (4) The Secretary cannot approve a state plan unless the state agrees to pay at least 20 percent of the cost of the assisted activities itself.

(c) General provisions: (1) In carrying out this section, the Secretary must consult the Secretary of Transportation on transportation matters, and other relevant federal and state agencies. (2) The Secretary must report annually to the President and Congress — and send a copy to each participating state's governor — on how the program is running. That report must include (A) an estimate of how many alternative fueled vehicles are in use in each state; (B) how much each state is participating in the program; (C) a description of federal, state, and local incentive programs for alternative fueled vehicles, whether or not tied to a state plan under this section; (D) an estimate of the program's energy and environmental benefits; and (E) any recommendations the Secretary has for further federal action.

(d) Definitions: For this section, (1) "Governor" means a state's chief executive. (2) "State" means each of the 50 states, D.C., Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, and any other U.S. commonwealth, territory, or possession.

(e) Authorization of appropriations: Congress may appropriate $10,000,000 for each of the 5 fiscal years beginning after October 24, 1992, to carry out this section.