Alternative Fuel Vehicle

Alternative Fuel Vehicle

Alternative Fuel Vehicle

An alternative fuel vehicle is one that is powered only by an alternative fuel. Arizona statute defines an alternative fuel as one of the following:

  • Electric
  • Natural gas / CNG or LPG
  • Hydrogen
  • Blend of 70 percent alternative fuel, 30 percent gasoline (unavailable in Arizona)
  • Solar

If a vehicle is converted to operate solely on alternative fuel, the Arizona Department of Environmental Quality must inspect the vehicle and issue an Alternative Fuel Certificate.

Emissions

Hydrogen, solar and electric powered vehicles are exempt from all emissions testing requirements.

For more information contact the Arizona Department of Environmental Quality at 877.692.9227 or visit myazcar.com.

Reduced Vehicle License Tax

In accordance with Arizona Revised Statute 28-5805, alternative fuel vehicles are assessed VLT using the same formula used for traditional vehicles. Those vehicles that were initially registered prior to 2023 will keep their current VLT formula until the vehicle ownership changes or the registration is canceled.

Prior formulas for calculating tax for alt-fuel vehicles:

HOV Lane Privileges

If you have a current AFV special plate, you can use the HOV freeway lanes at any time, regardless of the number of passengers. HOV lane privileges are authorized by Federal Code 23 U.S.C. 166. See the HOV tab for additional details on the anticipated expiration of AFV authorization.

Calculating Vehicle License Tax for Alternative Fuel Vehicles

 

FAQ

What’s happening?

A provision of federal code [23 USC 166(b)(4)] currently allows alternative fuel vehicles, including electric vehicles, to use high-occupancy vehicle (HOV) lanes regardless of the number of riders. That provision is currently scheduled to expire on Sept. 30, 2025. If it does, alternative fuel vehicles, including electric vehicles, carrying only a driver would no longer have access to HOV lanes during restricted times. 

Why is this happening?

The decision on whether to allow this provision in federal code to lapse lies with the federal government. Even though this is a federal matter, ADOT is sharing early word because the outcome affects travelers in the Phoenix area, owners and prospective buyers of alternative fuel vehicles, and businesses selling and servicing alternative fuel vehicles.

Where would this happen?

In Arizona, HOV lanes currently are used on Phoenix-area freeways.

Can anything else affect the ability of alternative fuel vehicles to use HOV lanes? 

Yes. The Federal Highway Administration requires states to produce an annual report identifying degradation of HOV lane traffic flow. HOV lane segments that are out of compliance with traffic flow requirements must receive further analysis and countermeasures designed to improve travel time. If a segment that allows low-emission or energy efficient vehicles, which includes alternative fuel vehicles, remains out of compliance, federal code [23 USC 166(d)(2)] requires local authorities to take actions that can include limiting or discontinuing use by those vehicles during restricted times. 

Where can I learn more about HOV lanes and rules governing them?

ADOT offers a resource at azdot.gov/HOV explaining what HOV lanes are for, who can use them and other topics. It also answers many common questions about HOV lanes.

I own an alternative fuel vehicle and it was registered prior to Jan. 1, 2023. Will my VLT rate change?

No. The VLT formula used at the time of initial registration stays with the vehicle as long as the registration cycle remains the same. A change in ownership, including the addition or removal of a joint owner, or cancelled registration would create a new registration cycle and trigger a change to the VLT formula that is currently effective.

If I transfer the title or sell my alternative fuel vehicle after Jan. 1, 2023, will the new owner receive the VLT rate from when the car was registered?

No. The VLT formula only stays with the vehicle as long as the registration cycle remains the same. A change in ownership or a canceled registration would create a new registration cycle and will trigger a change to the VLT formula that is currently effective.

Establishing a new registration cycle will trigger the currently effective VLT formula. What does this mean?

A new registration cycle can be triggered in a variety of ways. Here are examples:

  • The removal or addition of a joint owner creates a new registration cycle which would trigger the currently effective VLT formula. For instance, if two people are listed as owners of a vehicle and the title is changed to remove one person, this will result in a new registration cycle and the currently effective VLT formula will be used.
  • A lease buy-out would establish a new registration cycle and trigger the use of the VLT formula that is currently effective.
  • If you purchase a used AFV, the date you register the vehicle begins a new registration cycle and will trigger the currently effective VLT formula.
  • If someone moves to Arizona from out-of-state and registers their vehicle in Arizona, a new registration cycle would trigger the currently effective VLT formula, no matter when it was initially registered in the other state.
  • A salvage, flood or nonrepairable brand on a title will cancel the registration.