Fuel Tax Exemption for Propane and Natural Gas Vehicles  Washington State offers a state highway fuel tax exemption for liquefied petroleum gas (LPG) and compressed natural gas (CNG) vehicles. Owners of CNG and LPG powered vehicles are required to pay an annual fee, based on gross vehicle weight, instead of motor fuel excise taxes.  

Incentives for Production, Distribution and Retail Sale of Biodiesel and Ethanol Fuels  Washington State provides various tax incentives to encourage the development of in-state production facilities, distribution services and retail sales facilities for biodiesel and ethanol fuels. 

Alt Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Exemption New passenger cars, light-duty trucks and medium-duty passenger vehicles that are dedicated AFVs will soon be exempt from state sales and use tax. Vehicles must operate solely on natural gas, propane, hydrogen or electricity, meet California motor vehicle emissions standards (as of Jan. 1, 2005) and comply with Ecology rules. HEVs that have an EPA highway fuel economy of at least 40 mpg will also soon be exempt from state sales and use tax. The tax exemption will be in effect from Jan. 1, 2009 until Jan. 1, 2011.

Funding for Clean Fuel and Alternative Fuel Vehicle Projects  Senate Bill 6072 from the 2003 legislative session provides funds for clean fuel and alternative fuel vehicle projects.

Emissions Testing Exemption  Electric, natural gas and propane vehicles are exempt from emission control inspections. Effective June 13, 2002, hybrid motor vehicles that obtain a rating by the U.S. Environmental Protection Agency of at least 50 miles per gallon of gas during city driving are also exempt from these inspections. (Reference RCW 46.16.015)

State Regulations Washington State has several laws and regulations concerning alternative fuels and vehicles.