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Research Memo 1/19/2009 Research Memo 09 RM 005 Date: January 19, 2009 Author: Kelley Shepp, Associate Research Analyst Re: Alternative Energy for Vehicles and Homes. QUESTIONS 1. How do other states define which hybrid or alternative energy vehicles are eligible for financial or other exemptions? a. What type of exemptions do other states provide? 2. Provide a list of hybrid or alternative energy using vehicles and their respective miles per gallon. 3. What is the cost of installing alternative energy sources, such as solar panels, on homes? ANSWERS 1. In order to qualify for financial or other exemptions, many states require that hybrid or alternative energy vehicles be certified and labeled in accordance with federal regulations. These vehicles must comply with minimum fuel economy standards provided by the federal government. According to United States Code 23, Section 166(f)(3)(b), these standards include: • Achieving not less than a 50 percent increase in city fuel economy; or • Not less than a 25 percent increase in combined city-highway fuel economy; or • A greater percentage of city or city-highway fuel economy as may be determined by a state; or • Is an alternative fuel vehicle. These vehicles must also comply with the Tier II emission level established by the Clean Air Act. Some states have requirements in addition to federal standards. Table 1, below, depicts states’ qualifications for hybrid or alternative energy vehicles and incentives for those who purchase or convert vehicles to hybrids. Table 1. States Qualifications and Incentives for Purchasing Hybrid or Alternative Energy Vehicles. State Qualifications Incentives California Hybrids are eligible if they were produced Grants of up to $5,000 for purchase or during model year 2004 or earlier, have a fuel lease of such vehicles, qualified hybrids economy rating of 45 miles per gallon or or alternative fuel vehicles can use HOV greater, and meet specified state vehicle lanes regardless of the number of emission standards. occupants in the vehicle after obtaining an identification sticker. Source: LSO staff summary of a National Conference of State Legislatures (NCSL) article on State Incentives for Hybrid Vehicles. WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX (307) 777-5466 • EMAIL • [email protected] • WEBSITE http://legisweb.state.wy.us PAGE 2 OF 4 Table 1. States Qualifications and Incentives for Purchasing Hybrid or Alternative Energy Vehicles, Cont’d. Colorado Vehicles must be classified as inherently low Qualifying vehicles may drive in the emission vehicles by the U.S. Environmental HOV lanes regardless of the number of Protection Agency (EPA) and have a gross occupants and without payment of a vehicle weight of 26,000 pounds or less. special toll or fee. The Dept. of Revenue will give rebates on hybrid vehicles owned by the state, a political subdivision of the state, or a tax-exempt organization, and used in connection with its official activities. Florida Hybrids must be certified and labeled in Qualifying vehicles may be driven in accordance with federal regulations and HOV lanes at any time, regardless of the minimum fuel economy standards as set forth number of passengers, and without in U.S. Code. payment of tolls. Maryland A qualified hybrid must meet the current Qualifying vehicles are exempt from vehicle exhaust standard set under the federal vehicle emissions and inspection testing Tier II program for gasoline-powered requirements for the first three years after passenger vehicles and draw propulsion the vehicle is originally registered in the energy from both gasoline or diesel fuel and a state. A tax credit is also allowed against rechargeable energy storage system. The the excise tax for the purchase of vehicle must obtain a rating from the EPA of qualified hybrids. at least 50 mpg during city fuel economy tests. New Mexico Hybrids need a U.S. EPA estimated combined Qualifying vehicles are eligible for a one- fuel economy rating of at least 27.5 miles per time exemption from the motor vehicle gallon. excise tax if the original certificate of title for the vehicle is issued through June 30, 2009. New York Vehicles whose estimated U.S.EPA fuel Eligible vehicles will be allowed to use economy rating averages at least 45 miles per the Long Island Expressway HOV lanes, gallon and meets EPA emission standards are regardless of the number of passengers. eligible. Pennsylvania Vehicles must be the cleanest and most fuel A $500 rebate for the purchase or lease of efficient “full hybrids” that use hybrid a hybrid vehicle registered in the state technology to significantly increase fuel that operates primarily within the state. economy while significantly reducing emissions. The vehicle must have a combined city and highway fuel efficiency of more than 55 miles per gallon and emit less than 7.0 tons per year of carbon dioxide. South Carolina A hybrid vehicle is defined as a gasoline- The state provides a tax rebate of up to electric vehicle that is partially powered by a $300 for the in-state purchase or lease of large onboard battery. Plug-in hybrids that a hybrid vehicle. In addition, the state share the same benefit of an internal provides a $2,000 tax credit against the combustion and electric engine with an all- income tax for the in-state purchase or electric range of at least nine miles, also lease of a plug-in hybrid vehicle. qualify for incentives. Source: LSO staff summary of a National Conference of State Legislatures (NCSL) article on State Incentives for Hybrid Vehicles. WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX (307) 777-5466 • EMAIL • [email protected] • WEBSITE http://legisweb.state.wy.us PAGE 3 OF 4 Table 1. States Qualifications and Incentives for Purchasing Hybrid or Alternative Energy Vehicles, Cont’d. Virginia In order for a vehicle to qualify as clean fuel, Eligible vehicles may use Virginia HOV it must be exclusively powered by clean lanes, regardless of the number of special fuel. Not all hybrids qualify. The occupants. following are qualifying types of fuel: • Compressed Natural Gas • Electricity • Ethane • Hybrid Gasoline/Electric • Hydrogen • Hythane • Liquefied Natural Gas • Liquefied Petroleum Gas • Methane • Solar • Or a combination of two types of clean special fuel. Washington All new passenger cars, light-duty trucks, and Hybrid vehicles with a U.S. EPA medium-duty passenger vehicles that use estimated highway fuel economy of at hybrid electric technology and have a U.S. least 40 miles per gallon are exempt from EPA estimated highway fuel economy of at state sales and use tax. Vehicles with an least 40 miles per gallon qualify for EPA fuel economy rating of at least 50 exemptions. Hybrids with an EPA fuel miles per gallon are exempt from economy rating of at least 50 miles per gallon emission control inspections. of gasoline during city driving are also eligible. Source: LSO staff summary of a National Conference of State Legislatures (NCSL) article on State Incentives for Hybrid Vehicles. WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX (307) 777-5466 • EMAIL • [email protected] • WEBSITE http://legisweb.state.wy.us PAGE 4 OF 4 2. Table 2, below, depicts a list of hybrid vehicles and their respective fuel economy. Table 2. Hybrid Vehicle Models and Respective Fuel Economy. Model City Miles Per Gallon Highway Miles Per Gallon Toyota Prius 48 45 Honda Civic Hybrid 40 45 Nissan Altima Hybrid 35 33 Ford Escape Hybrid FWD 34 31 Mazda Tribute Hybrid 2WD 34 31 Mercury Mariner Hybrid FWD 34 31 Toyota Camry Hybrid 33 34 Ford Escape Hybrid 4WD 29 27 Mazda Tribute Hybrid 4WD 29 27 Mercury Mariner Hybrid 4WD 29 27 Toyota Highlander Hybrid 4WD 27 25 Chevrolet Malibu Hybrid 26 34 Saturn Aura Hybrid 26 34 Saturn Vue Hybrid 25 32 Lexus GS 450h 22 25 Chevrolet Silverado 15 Hybrid 2WD 21 22 GMC Sierra 15 Hybrid 2WD 21 22 Chevrolet Tahoe Hybrid 2WD 21 22 GMC Yukon 1500 Hybrid 2WD 21 22 Dodge Durango HEV 20 22 Chrysler Aspen HEV 20 22 Lexus LS 600h L 20 22 Cadillac Escalade Hybrid 2WD 20 21 Chevrolet Silverado 15 Hybrid 4WD 20 20 GMC Sierra 15 Hybrid 4WD 20 20 Chevrolet Tahoe Hybrid 4WD 20 20 GMC Yukon 1500 Hybrid 4WD 20 20 Source: LSO staff summary of 2009 EPA Estimated Fuel Economy of Vehicles. 3. The current cost of solar energy, or electricity, is 21.19 cents per kWh, or $4.84 per Watt. Some estimates put the price of installing solar panels on a home at between $10-$12 per Watt installed, or approximately $20,000/home. Another option for alternative energy in homes is using Photovoltaics. According to the U.S. Department of Energy, Photovoltaic (PV) cells use semiconductor materials similar to those used in computer chips to convert sunlight into electricity. Photovoltaics are primarily used for homes, telecommunications, security and lighting systems, water pumps and load management. The Department of Energy estimates that a home installation requiring batteries or a generator may need 2-5 kilowatts of power at approximately $12 per watt, or as much as $60,000/home. If you need anything further, please contact LSO Research at 777-7881. WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX (307) 777-5466 • EMAIL • [email protected] • WEBSITE http://legisweb.state.wy.us .
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