Upvote:4
The DS-11 instructions read
Proof of Identity
You may submit items such as the following containing your signature AND a photograph that is a good likeness of you: ….You must establish your identity to the satisfaction of the acceptance agent and Passport Services. We may ask you to provide additional evidence to establish your identity
Note especially the second paragraph: the acceptance agent decides whether the person submitting the application has adequately identified him- or herself by presenting appropriate identification. The type of identification presented is of secondary importance, with some examples provided as to what might be sufficient, but which on its own is explicitly stated to not necessarily be sufficient.
I would think the state-issued in-state non-driver photo ID should be adequate, as in every state I can think of it is issued by the same authority that issues drivers' licenses, and physically produced in a substantially similar format with the same materials, and so on. But evidently your acceptance agent apparently does not agree, and I don't think arguing with them based on some advice from the Internet as to what should or should not be acceptable will get you very far.
This does not mean you need to go get a driver's license, however, as in lieu of a primary photo ID, you can submit multiple secondary IDs such as work or school IDs, Social Security or other benefits cards, and so on. Or, perhaps, you could try again with a different agent.
Upvote:6
I can't imagine what the acceptance agent was thinking, non-driver IDs are good for everything driver's licenses are good for except driving--my wife had no problem getting a passport with it. (Although she did also have to present her naturalization certificate which does have a photo on it--but she needed that to show citizenship, not who she was.)
Over the years I have seen plenty of people who do not realize they are equivalent, though, in one case having to get a bank manager involved because the teller would not accept either my wife's non-driver ID nor her passport and kept demanding a driver's license. (Hint: You can't have both a non-driver's ID and a driver's license!)