U.S. Department of Energy - Energy Efficiency and Renewable Energy 

### Alternative Fuels and Advanced Vehicles Data Center



## Advanced Search
Search incentives and laws related to alternative fuels and adva nced vehicles. Choose one or more jurisdictions to start your search. Select additional options to narrow your search.

305 Results for: Jurisdiction: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Dist. of Columbia, Florida, Geor g ia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missour i, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsy lvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wy oming Technology/Fuel: Biodiesel Incentive/Regulation: Acquisition / Fuel Use, Grants, Tax Incentives, Fuel Taxes, Fuel Production / Quality, Rebates, Renewable Fuel Standard / Mandate, Air Quality / Emissions, Exemptions, Climate Change / Energy Initiatives, Other, Other User: Fleet Purchaser/Manager, Fueling / TSE Infrastructure Owner, Alternative Fuel Producer, Alternative Fuel Dealer, Alternative F uel Purchaser All

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Last Updated May 2012



### State Incentives

Biodiesel Fuel Storage Grants The Alabama Biodiesel Incentive Program , administered by the Alabama Department of Economic and Community Affairs (ADECA) Energy Division, provides grants of up to $2,500 to cover the cost of cleaning existing fuel tanks in preparation for storing biodiesel blends of at least 20% (B20) for use in public school, state college and university, and local government fleets. Successful applicants must provide B20 for a minimum of three years. Grantees must also provide information to ADECA Energy Division about the number of gallons of B20 dispensed and used to fuel fleet vehicles during this time period.

Point of Contact Kathy Hornsby Program Manager Alabama Department of Economic and Community Affairs Phone: (334) 242-5284 Fax: (334) 242-0552 kathy.hornsby@adeca.alabama.gov

Biofuel Production Facility Tax Credit Companies that invest in the development of a biofuel production facility may be eligible for a tax credit of up to 5% of the capital costs of the project. Companies may claim this credit against the state income tax or the financial institution excise tax liability that the project generates each year for up to 20 years. For the purposes of the credit, biofuel is defined as a motor vehicle fuel that is produced from grain, starch, oilseeds, vegetable, algae, animal, or fish materials including fats, greases and oils, sugarcane, sugar beets, sugar components, tobacco, potatoes, and lignocellulosic or other biomass. To be eligible for the tax credit, the capital co sts of the production facility must be at least $2,000,000 if the facility is not located in a favored geographic area and $500,000 if the facility is located in a favored geographic area. A favored geographic area is defined as an area or county that is designated as an enterprise zone or that the Alabama Department of Industrial Relations considers to be less developed. The credit expires December 31, 2018. Additional restrictions apply. (Reference Code of Alabama 2-2-90, 40-18-190 through 40-18-194, and 40-18-202.1)



### Laws and Regulations

Fuel-Efficient Green Fleets Policy The Alabama Legislature will establish a Green Fleets Policy (Policy) outlining a procedure for procuring state vehicles based on criteria that includes fuel economy and lifecycle costing. State fleet managers must classify their vehicle inventory for compliance with the Policy and submit annual plans for procuring fuel-efficient vehicles. These plans must reflect a 4% annual increase in average fleet fuel economy for light-duty vehicles, a 3% annual increase in average fleet fuel economy for medium-duty vehicles, and a 2% annual increase in average fleet fuel economy for heavy-duty vehicles per fiscal year. The Policy will also require that government entities manage and operate their fleets in a manner that is energy efficient, minimizes emissions, and reduces petroleum dependency by using specified proven technology the Green Fleet Review Committee identifies. (Reference Code of Alabama 41-17A-1 through 41-17A-6) 

## Alabama 

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...Alternative Fuels Promotion and Information The Center for Alternative Fuels (Center) promotes alternative fuels as viable energy sources in the state. The Center must assess the current status and development of sources of alternative fuels, ensuring that all alternative fuels sold in the state meet ASTM standards, and act as an information center for alternative fuels and a clearinghouse for available federal grant funding for alternative fuel development. The Center may administer a grant program using income tax check-off program funds from the Alabama Alternative Fuels and Research Development Fund. (Reference Code of Alabama 2-2-90 and 2-2-91)



### State Incentives

Biofuel Infrastructure Grants The Arizona Biofuel Conversion Program distributes grants to encourage the use of biofuels in the state and to promote the development of fueling infrastructure. Up to $75,000 is av ailable to public and private entities for the incremental cost of projects that result in new or converted biofuel storage and dispensing equipment. Applicants must complete projects within six months of the grant award date. Biofuel is a biomass-derived fuel used directly as a motor fuel. The program ends July 1, 2015. (Reference Arizona Revised Statutes 41-1515.01)



### Laws and Regulations

Biofuels Definitions and Specifications Biodiesel is a fuel that is produced from nonpetroleum renewable resources and meets the U.S. Environmental Protection Agency registration requirements for fuels and fuel additi ves established in Section 211 of the Clean Air Act. E85 is defined as a blend of fuel ethanol and gasoline that meets ASTM specification D5798. The Arizona Department of Weights and Measures must adopt rules to establish and enforce federal standards and ASTM test methods for biofuels and biofuel blends, and blenders of biodiesel must follow the established reporting requirements. (Reference Arizona Revised Statutes 41-2051 and 41-2083)

State Vehicle Acquisition and Fuel Use Requirements Arizona state agencies, boards, and commissions must purchase hybrid electric vehicles (HEVs), alternative fuel vehicles (AFVs), or vehicles that meet greenhouse gas emissions standards; or use alternative fuels; with the goal that all state vehicles be HEVs, meet low emissions standards, or be AF Vs by January 2012. At least 75% of light-duty state fleet vehicles operating in counties with a population of more than 250,000 people must be capable of operating on alternative fuels. If the AFVs operate in counties with populations of more than 1.2 million people, those vehicles must meet U.S. Environmental Protection Agency emissions standards for Low Emission Vehicles. Alternatively, the state fleet may meet AFV acquisition requirements through biodiesel or alternative fuel use or apply for waivers. For the purpose of these requirements, alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, E85, and a blend of hydrogen with propane or natural gas. (Reference Executive Order 2010

- 14 , 2010, and Arizona Revised Statutes 41-803)

Municipal Alternative Fuel Vehicle (AFV) Acquisition Requirements Local governments in defined areas of Maricopa, Pinal, and Yavapai counties that have a population of more than 1.2 million people must develop and implement vehicle fleet plans for the purpose of encouraging and increasing the use of alternative fuels in vehicles the city or town owns. At least 75% of the total local government fleet must operate on alternative fuels. Alternatively, local government fleets may meet AFV acquisition requirements through biodiesel or alternative fuel use or apply for waivers. Any local governments that purchase buses for use in counties with populations of more than 500,000 people must purchase or convert buses to operate on alternative fuels. For the purpose of these requirements, alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, E85, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 9-500.04, 49-474.01, 49-541, and 49-571)

School District Alternative Fuel Vehicle Acquisition Requirements Within defined areas of Maricopa, Pinal, and Yavapai counties, school districts with an average student population of more than 3,000 students must ensure that 50% of the portion of th e fleet with a gross vehicle weight rating of at least 17,500 pounds per vehicle operates on alternative fuels, ultra low sulfur diesel, or meets specified emissions standards. Alternatively, school districts may meet acquisition requirements through alternative fuel use. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, E85, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 15-349 and 49-541)

Federal Fleet Operation Regulations Federal fleets based in Arizona that operate primarily in counties with a population of more than 1.2 million people must be comprised of at least 90% alternative fuel vehicles. Alternatively, federal fleets may meet acquisition requirements through alternative fuel use or apply for waivers. Recognized alternative fuels include propane, natural gas, electricity, hydrogen, qualified diesel fuel substitutes, E85, and a blend of hydrogen with propane or natural gas. (Reference Arizona Revised Statutes 49-573) 

## Arizona 

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### State Incentives

Alternative Fuel Grants and Rebates The Arkansas Alternative Fuels Development Program (Program) provides grants to alternative fuel producers, feedstock processors, and alternative fuel distributors. Producers may be eligible to receive $0.20 per gallon of alternative fuels produced, not to exceed $2 million. Feedstock processors may be eligible to receive up to $3 million or 50% of the project cost, whichever is less, for the construction, modification, alteration, or retrofitting of a feedstock processing facility that is located and operated in Arkansas. Alternative fu el distributors may be eligible to receive up to $300,000 or 50% of the project cost, whichever is less, for assisting with the distribution and storage of alternative fuels or alternative fuel mixtures at distribution facilities that are located and operated in Arkansas.Alternative fuels include biofuel, ethanol, compressed natural gas, or a synthetic transportation fuel.

The Program also provides rebates for the cost of converting diesel or gasoline school buses to dedicated or bi-fuel compressed natural gas school buses. The rebate amount is 75% of the conversion system and incremental conversion costs. School districts may receive up to $50,000 per fiscal ye ar for school bus conversion costs. Other restrictions and requirements may apply.As of March 2012, funding for the Program is not available.

(Reference Arkansas Code 15-13-101, 15-13-102, 15-13-301 to 15-13-306, and 19-6-809)



### Laws and Regulations

Alternative Fuel Definition and Specifications Alternative fuels include biofuel, ethanol, compressed natural gas, propane gas, or a synthetic transportation fuel. Biofuel is defined as a renewable, biodegradable, combustible liquid or gaseous fuel derived from biomass or other renewable resources that can be used as transportation fuel, combustion fuel, or refinery feedstock and that meets ASTM specifications and federal quality requirements for each category or grade of fuel. Biofuel includes biodiesel or renewable diesel, renewable gasoline, renewable naphtha, biocrude, biog as, and other renewable, biodegradable, mono alkyl ester combustible fuel derived from biomass. Ethanol is ethyl alcohol derived from biomass that meets ASTM D4806-04a and federal quality requirements. Synthetic transportation fuel is a liquid fuel produced from biomass by a gasification process or other refining process that meets any applicable state or federal environmental requirement. (Reference Arkansas Code 15-13-102)

Biodiesel Use Requirement All diesel-powered motor vehicles, light trucks, and equipment owned or leased by a state agency must operate using diesel fuel that contains a minimum of 2% biodiesel (B2). For the purpose of this requirement, biodiesel includes renewable diesel and other renewable, biodegradable mono al kyl ester combustible fuel derived from biomass. Waivers to the B2 requirement for state agency vehicles may be granted if the fuel is not available in certain geographic areas, the fuel price is at least $0.15 cents more per gallon then the petroleum equivalent, or compliance with the standard is not otherwise economically feasible. (Reference Arkansas Code 15-13-101, 15-13-102, and 15-13-202 to 15-13-205)

Alternative Fuels Tax Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent basis. The tax rate for each alternative fuel type is based on the number of motor vehicles licensed in the state that use the specific fuel, not including vehicles the federal government owns or leases. (Reference Arkansas Code 26-62-201)



### State Incentives

Alternative Fuel and Advanced Vehicle Career Training The Clean Technology and Renewable Energy Job Training, Career Technical Education, and Dropout Prevention Program provides grant funding to school districts for occupational training programs that focus on employment in clean technology businesses or renewable energy businesses, such as clean vehicle technologies, or cellulosic ethanol, biodiesel, biomass power, green waste, and fuel cell production. (Reference Senate Bill X1 1, 2011, and California Education Code 54690-54699)

Alternative Fuel and Vehicle Incentives The California Energy Commission (CEC) administers the Alternative and Renewable Fuel and Vehicle Technology Program (Program) to provide financial incentives for businesses, vehicle and technology manufacturers, workforce training partners, fleet owners, consumers, and academic institutions with the goal of developing and deploying alternative and renewable fuels and advanced transportation technologies. The CEC must prepare and adopt an annual Investment Plan for the Program to establish funding priorities and opportunities that reflect program goals and to describe how program funding will be used to complement other public and private investments. Funded projects include: 

## Arkansas

California 

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...z Commercial alternative fuel vehicle (AFV) demonstrations and deployment;

z Alternative and renewable fuel production;

z Research and development of alternative and renewable fuels and innovative technologies;

z AFV manufacturing;

z Workforce training; and

z Public education, outreach, and promotion.
(Reference California Code of Regulations , Title 13, Chapter 8.1 and California Health and Safety Code 44270-44274.7)

Low Emissions School Bus Grants The Lower

- Emission School Bus Program provides grant funding for the replacement of older school buses and for the purchase of air pollution control equipment for in-use buses. The California Air Resources Board must verify that the air pollution control devices reduce particulate matter emissions by at least 85% for each retrofitted school bus. Public school districts in California that own their buses are eligible to receive funding. Private school transportation providers that contract with public school districts in California to provide transportation services are also eligible to receive fundin g for the retrofit of in-use buses. New buses purchased to replace older buses may be fueled with diesel or an alternative fuel, provided that the required emissions standards specified in the current guidelines for the Lower-Emission School Bus Program are met. Funds are also available for replacing on-board natural gas tanks on older school buses and for updating deteriorating natural gas fueling infrastructure. Commercially available hybrid electric school buses may be eligible for partial funding. Contact local air districts for more information about grant funding availability and distribution from the Lower-Emission School Bus Program. (Reference Assembly Bill 462, 2011; Senate Bill 570, 2011; and California Health and Safety Code 41081 and 44099))

Point of Contact Lisa Jennings Air Pollution Specialist, Lower-Emission School Bus Program California Air Resources Board Phone: (916) 322-6913 Fax: (916) 322-3923 ljenning@arb.ca.gov http://www.arb.ca.gov/msprog/schoolbus/schoolbus.htm

Employer Invested Emissions Reduction Funding - South Coast The South Coast Air Quality Management District (SCAQMD) administers the Air Quality Investment Program (AQIP). The AQIP provides funding to allow employers within SCAQMD's jurisdiction to make annual investments into an administered fund to meet employers' emissions reduction targets. The revenues collected are used to fund alternative mobile source emissions/trip reduction programs, including alternative fuel vehicle projects, on an on-going basis. Programs such as low emission, alternative fuel, or zero emission vehicle procurement, and old vehicle scrapping may be considered for funding. Current requests for proposals and funding opportunities are listed on the AQIP website.

Point of Contact Shashi Singeetham Air Quality Specialist South Coast Air Quality Management District Phone: (909) 396-3298 Fax: (909) 396-3608 ssingeetham@aqmd.gov http://www.aqmd.gov/trans/aqip.html

Heavy-Duty Diesel Vehicle Vouchers - San Joaquin Valley The San Joaquin Valley Air Pollution Control District (SJVAPCD) administers two voucher incentive programs to reduce vehicle emissions from heavy-duty diesel trucks. The Voucher Incentive Program (VIP) provides funding for fleets with three or less trucks to replace or retrofit heavy-duty diesel trucks. The Diesel Emissions Reduction Act Voucher Program provides funding for fleets with four or more trucks to replace heavy-duty diesel trucks. Vouchers funded under these programs must achieve emissions reductions beyond those required by law or regulation. Applications for these voucher programs can only be obtained and submitted at an SJVAPCD certified dealership or retrofit installer. Applications will be accepted on a continual basis until funding for the program is exhausted. Applicants must be awarded a voucher from the SJVAPCD prior to ordering and/or purchasing the replacement truck or equipment.

Low Emission Vehicle Incentives and Technical Training - San Joaquin Valley The San Joaquin Valley Air Pollution Control District administers the REMOVE II program, which provides incentives for the purchase of low emission passenger vehicles, light-duty trucks, small buses, and trucks with gross vehicle weight ratings of 14,000 pounds or less. The purpose of REMOVE II is to encourage the early introduction of low emission vehicles in the San Joaquin Valley. Funding in the amount of $1,000 to $3,000 is available per vehicle according to the emissions certification level and size of the vehicle. Vehicles must be powered by alternative fuel or electric or hybrid electric engines/motors. REMOVE II also includes an Alternative Fuel Vehicle (AFV) Mechanic Training Component that provides incentives to educate personnel on the mechanics, operation safety, and maintenance of AFVs, fueling stations, and tools involved in the implementation of alternative fuel technologies.



### Utility/Private Incentives

Biofuel Volume Rebate Program - Propel Fuels Propel Fuels offers a rebate to qualified fleet customers for monthly purchases of more than 500 gallons of biodiesel blends and E85. Fleet customers must purchase the fuel directly from Propel public retail locations using the Propel CleanDrive Wright Express fl eet card. The program offers a rebate of $0.03 per gallon for purchases of less than 1,000 

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...gallons of biofuel per month, and $.05 per gallon for purchases of 1,000 gallons or more per month. The rebate is applied at the end of each monthly billing cycle.

Point of Contact Jake Millan Fleet Sales Manager Propel Fuels Inc. Phone: (206) 409-5606 jake@propelfuels.com



### Laws and Regulations

Fleet Fuel Use and Vehicle Acquisition Requirements - San Francisco, CA The City of San Francisco (City) requires that diesel vehicles in the City's municipal fleet operate using biodiesel blends of at least 20% (B20). City departments must also pursue actions to use higher biodiesel blends, up to and including neat biodiesel (B100). Additionally, bi-fuel vehicles owned by the City must not use petroleum-based fuels while operating within the City and County of San Francisco. All vehicles purchased or leased by City departments must meet or exceed specified emissions standards. For more information, see the May 2006 Executive Directive on Biodiesel for Municipal Fleets and the City and County of San Francisco Environmental Code (Sections 406 and 407).

Low Carbon Fuel Standard California's Low Carbon Fuel Standard (LCFS) Program requires a reduction in the carbon intensity of transportation fuels that are sold, supplied, or offered for sale in the state by a minimum of 10% by 2020. The California Air Resources Board (ARB) regulations require transportation fuel producers and importers to meet specified average carbon intensity requirements for fuel in each calendar year beginning January 1, 2011. In the regulations, carbon intensity reductions are based on reformulated gasoline mixed with 10% corn-derived ethanol and low-sulfur diesel fuel. Liquefied petroleum gas (propane) is exempt from LCFS requirements, as are non-biomass-based alternative fuels that are supplied in California for use in transportation at an aggregated volume of less than 3.6 million gasoline gallon equivalents per year. Other exemptions apply for transportation fuel used in specific applications. The LCFS Program allows producers and importers to generate, acquire, transfer, bank, borrow, and trade credits. Fuel producers and importers regulated under the LCFS must meet quarterly and annual reporting requirements.

In December 2011, the U.S. District Court issued an injuncti on preventing ARB from implementing the LCFS because it violates the Commerce Clause of the U.S. Constitution by interfering with and discriminating against interstate commerce. In January 2012, ARB filed a notice of appeal of th e U.S. District Court ruling, but is withholding enforcement of the LCFS requirements until a final decision is made.

(Reference California Code of Regulations Title 17, Section 95480-95490; Executive Order S-01-07, 2007; and California Health and Safety Code 38500-38599)

Alternative Fuel and Plug-in Hybrid Electric Vehicle Retrofit Regulations Converting a vehicle to operate on an alternative fuel in lieu of the original gasoline or diesel fuel is prohibited unless the California Air Resources Board (ARB) has evaluated and certified the retrofit system. ARB will issue certification to the manufacturer of the system in the form of an Executive Order once the manufacturer demonstrates compliance with the emissions, warranty, and durability requirements. A manufacturer is defined as a person or company who manufactures or assembles an alternative fuel retrofit system for sale in California; this definition does not include individuals wishing to convert vehicles for personal use. Individuals interested in converting their vehicles to operate on an alternative fuel must ensure that the alternative fuel retrofit systems used for their vehicles have been ARB certified. For more information, see the ARB Alternative Fuel Retrofit System website.

A hybrid electric vehicle that is Model Year 2000 or newer and is a passenger car, light-duty truck, or medium-duty vehicle may be converted to incorporate off-vehicle charging capability if the manufacturer demonstrates compliance with emissions, warranty, and durability requirements. ARB issues certification to the manufacturer and the vehicle must meet California emissions standards for the model year of the original vehicle.

(Reference California Code of Regulations Title 13, Section 2030-2032, and California Vehicle Code 27156)

Vehicle Acquisition and Petroleum Reduction Requirements The California Department of General Services (DGS) is responsible for maintaining specifications and standards for passenger cars and light-duty trucks that are purchased or leased for state office, agency, and department use. These specifications include minimum vehicle emissions standards and encourage the purchase or lease of fuel-efficient and alternative fuel vehicles (AFVs). On an annual basis, DGS must compile information including, but not limited to, the number of AFVs and hybrid electric vehicles acquired, the locations of the alternative fuel pumps available for those vehicles, and the total amount of alternative fuels used.

Vehicles the state owns or leases that are capable of operating on alternative fuel must operate on that fuel unless the alternative fuel is not available. Additionally, the California State and Consumer Services Agency, in consultation with DGS and other appropriate state agencies, must develop, implement, and submit to the California Legislature and governor a plan to increase the state fleet's use of alternat ive fuels, synthetic lubricants, and fuel-efficient vehicles. This must be done by reducing or displacing the fleet's consumption of petroleum products by 10% by January 1, 2012, and 20% by January 1, 2020, as compared to the 2003 consumption level. DGS must also take steps to transfer vehicles between agencies and departments to ensure that the most fuel-efficient vehicles are used and to eliminate the least fuel-efficient vehicles from the state's motor vehicle fleet. DGS must submit annual progress reports to the California Department of Finance, related legislative committees, and the general public via the DGS website. 

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...(Reference Executive Order S

- 14

- 09, 2009 , and California Public Resources Code 25722.5, 25722.6, and 25722.8)

Mobile Source Emissions Reduction Requirements Through its Mobile Sources Program , the California Air Resources Board has developed programs and policies to reduce emissions from on-road heavy-duty diesel vehicles through the installation of verified diesel emission control strategies (VDECS) and vehicle replacements.

An on

- road heavy

- duty diesel vehicle rule requires the retrofit and replacement of nearly all privately owned vehicles operated in California with a gross vehicle weight rating (GVWR) greater than 14,000 pounds. School buses owned by private and public entities and federal government owned vehicles are also included in the scope of the rule. The requirements phase in the installation of VDECS on certain heavier in-use vehicles beginning January 1, 2012, and require the replacement of older vehicles starting January 1, 2015. By January 1, 2023, nearly all vehicles must have engines certified to the 2010 engine standard or equivalent. A drayage/port truck rule regulates heavy-duty diesel-fueled vehicles that transport cargo to and from California's ports and intermodal rail facilities. The rule requires that certain drayage trucks be equipped with VDECS and that all applicab le vehicles have engines certified to the 2007 emissions standards by January 1, 2014. A public transit agency fleet rule regulates public transit fleets and sets emissions reduction standards for new transit vehicles. A solid waste collection vehicle rule regulates solid waste collection vehicles with a gross vehicle weight rating of 14,000 pounds or more that operate on diesel fuel, have 1960 through 2006 engine models, and collect waste for a fee. The fleet rule for public agencies and utilities requires fleets to install VDECS on vehicles or purchase vehicles that run on alternative fuels or use advanced technologies to achieve emissions requirements by specified implementation dates.

A summary of Requirements for Diesel Truck and Equipment Owners can be found in the Multi

- Rule Summary Fact Sheet

. (Reference California Code of Regulations Title 13, 2021-2027)

Point of Contact Diesel Hotline California Air Resources Board Phone: (866) 6DIESEL (634-3735) 8666diesel@arb.ca.gov http://www.arb.ca.gov/cc/hdghg/hdghg.htm

Fleet Emissions Reduction Requirements - South Coast The South Coast Air Quality Management District (SCAQMD) requires government fleets and private contractors under contract with public entities to purchase lower emission and alternative fuel vehicles. The rule applies to transit bus, school bus, refuse hauler, and other vehicle fleets of at least 15 vehicles that operate in Los Angeles, San Bernardino, Riverside, and Orange counties. (Reference SCAQMD Rules 1186.1 and 1191-1196)

Point of Contact Fleet Rule Implementation Hotline South Coast Air Quality Management District Phone: (909) 396-3044 fleetrules@aqmd.gov http://www.aqmd.gov/tao/FleetRules



### Laws and Regulations

Clean Energy Development Authority The Colorado Clean Energy Development Authority may issue bonds to finance projects that involve the production, transportation, and storage of clean energy. Clean energy is defined as fuels that are produced, and energy that is derived, from sources including but not limited to the following: biodiesel; biomass resources such as biogas, agricultural or animal waste, landfill gas, and anaerobically digested waste biomass; biomass resources that do not include energy generated by use of fossil fuel; fuel cells that do not use fossil fuels; and zero-emissions generation technology, including emission of carbon dioxide, with long-term production potential. (Reference Colorado Revised Statutes 40-9.7-101 through 110)

Promulgation of Renewable Fuel Storage Tank Regulations The Colorado Division of Oil and Public Safety is responsible for enforcing rules concerning the placement of underground and aboveground storage tanks that contain renewable fuel. These rules must be promulgated so that the process of obtaining a permit for an underground storage tank that contai ns renewable fuel is more efficient and affordable. For the purpose of this regulation, a renewable fuel is a motor vehicl e fuel that is produced from plant or animal products or wastes, as opposed to fossil fuel sources. (Reference Colorado Revised Statutes 8-20.5-202 and 8-20.5-302)

State Agency Alternative Fuel Use and Vehicle Acquisition Requirement The Colorado Department of Personnel and Administration (DPA) has adopted a policy that requires all state-owned diesel vehicles and equipment to be fueled with a fuel blend of 20% biodiesel (B20), subject to the availability of the fuel and so long as the price differential is not greater than $0.10 more per gallon as compared to conventional diesel. Biodiesel is defined as fuel composed of mono-alkyl esters of long chai n fatty acids derived from plant or animal matter that meets ASTM specifications and is produced in Colorado. 

## Colorado 

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...Additionally, DPA has adopted a policy to increase the use of alternative fuels and establish objectives to increase its use for each succeeding year. DPA must purchase motor vehicles that operate on compressed natural gas (CNG), subject to the availability of vehicles and adequate fueling infrastructure. If purchases of CNG vehicles are not possible due to the incremental cost being more than 10%, DPA must purchase anothe r type of flexible fuel, hybrid electric, or all-electric vehicle, also subject to availability and incremental costs. DPA may adopt a policy to allow some vehicles to be exempt from this requirement.

Lastly, each state agency must develop a plan to improve commuting options for its employees. The plans should evaluate opportunities including plug-in electric vehicle charging.

(Reference Executive Order D0012 07, 2007, and Colorado Revised Statutes 24-30-1104)

Point of Contact Art Hale Colorado State Fleet Manager Colorado Department of Personnel and Admi nistration, Division of Central Services Phone: (303) 866-5531 Fax: (303) 866-5511 art.hale@state.co.us

Alternative Fuel Definition Alternative fuel is defined as compressed natural gas, propane, ethanol, or any mixture containing 85% or more ethanol (E85) with gasoline or other fuels, electricity, or any other fuels, which may include, but are not limited to, clean diesel and reformulated gasoline, so long as the Colorado Air Quality Control Commission determines that these other fuels result in comparable reductions in carbon monoxide emissions and brown cloud pollutants. Alternative fuel does not include any fuel product that contains or is treated with methyl tertiary butyl ether (MTBE). (Reference Colorado Revised Statutes 25-7-106.8)

Gasoline Gallon Equivalent (GGE) Definition The term GGE is defined to equate the energy content of any motor fuel, including alternative fuels, to that of a gallon of gasoline. Any dispenser used for the sale of motor fuel in GGEs must display GGEs as the primary display information provided. (Reference Colorado Revised Statutes 8-20-232.5)



### State Incentives

Biodiesel Production and Distribution Grants The Department of Economic and Community Development manages the Connecticut Qualified Biodiesel Producer Incentive Account and provides grants through the Biodiesel Production and Distribution Grant Program . A qualified biodiesel producer is eligible for up to 60 monthly payments, up to a total grant per fiscal year equal to: $0.30 per gallon for the first five million gallons of biodiesel produced; $0.20 per gallon for the second five million gallons of biodiesel produced; and $0.10 per gallon for the third five million gallons of biodiesel produced. If the total amount of funding available for the grant program is between $100,000 and $200,000, a qualified biodiesel producer is eligible for no more than $0.20 per gallon regardless of the number of gallons of biodiesel produced. If the total funding available equals $100,000 or less, the producer is eligible for no more than $0.10 per gallon, regardless of the total number of gallons of biodiesel produced. Any portion of biodiesel produced in excess of 15 million gallons per fiscal year is not eligible for these grants.

A qualified biodiesel producer that is not yet actively engaged in production may also receive a one-time grant for the purchase of equipment, cost of construction, or retrofit of a biodiesel production facility. The grant may not exceed $3 million, regardless of the number of facilities the producer owns. Additional grant funding up to $50,000 per distributor/site is available for the actual costs of creating storage and distribution capacity for biodiesel.

(Reference Connecticut General Statutes 32-324a through 32-324f)

Biofuels Research Grants The Connecticut Department of Economic and Community Development (DECD) administers a fuel diversification grant program to provide funding to Connecticut institutions of higher education or institutions of agricultural research for purposes including research to promote biofuel production from agricultural products, algae and waste grease, as well as biofuel quality testing. DECD must report on the performance of the grant program on an annual basis. (Reference Connecticut General Statutes 32-324g)

School Bus Retrofit Program The Connecticut Clean School Bus Program was created to: 1) establish grants for municipalities and local and regional school boards for reimbursement of the cost of retrofitting full-sized school buses that are projected to be in service on or after September 1, 2010; 2) develop and implement an outr each plan and educational materials, and; 3) assist municipalities and local and regional boards of education and bus companies in retrofitting their full-sized school buses. (Reference Connecticut General Statutes 22a-21j through 22a-21k) 

## Connecticut 

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### Laws and Regulations

Alternative Fuel and Fuel-Efficient Vehicle Acquisition and Emissions Reduction Requirements Cars and light-duty trucks that a state agency purchases must: 1) have an average U.S. Environmental Protection Agency estimated fuel economy of at least 40 miles per gallon; 2) comply with state fleet vehicle acquisition requirements set forth under the Energy Policy Act of 1992; and 3) obtain the best achievable fuel economy per pound of carbon dioxide emitted for the applicable vehicle classes. Alternative fuel vehicles (AFVs) that the state purchases to comply with these requirements must be capable of operatin g on an alternative fuel that is available in the state.

In addition, at least 50% of all cars and light-duty trucks that the state purchases or leases must be hybrid electric vehicles, plug-in hybrid electric vehicles, or capable of using alternative fuel. All AFVs purchased or leased must be certified to the California Air Resources Board's (ARB) Ultra Low Emission Vehicle II (ULEV II) standard, and all light-duty gasoline vehicles and hybrid electric vehicles the state purchases or leases must be certified, at a minimum, to the California ARB ULEV II standard. Beginning January 1, 2012, the required percentage of alternative fuel or advanced vehicles increases to 100%. The Connecticut Department of Administrative Services mu st report annually on the composition of the state fleet, including the volume of alternative fuels used.

Vehicles that the Connecticut Department of Public Safety designates as necessary for the Department of Public Safety to carry out its mission are exempt from these provisions.

(Reference Executive Order 22, 2009, and Connecticut General Statutes 4a-67d)

School Bus Emissions Reduction Each full-sized school bus with an engine model year of 1994 or newer that transports children in the state must be equipped with specific emissions control systems, including either: 1) a closed crankcase filtration system and a level 1, level 2, or level 3 device; 2) an engine that the U.S. Environmental Protection Agency (EPA) has certified as meeting Model Year 2007 emissions standards; or 3) use of compresse d natural gas or other alternative fuel that EPA or theCalifornia Air Resources Board has certified to reduce particulate matter emissions by at least 85% as compared to ultralow sulfur diesel fuel. (Reference Connecticut General Statutes 14-164o)



### State Incentives

Alternative Fuel Tax Exemption Taxes imposed on alternative fuels used in official vehicles for the United States government or any Delaware state governmental agency, including volunteer fire and rescue companies, are waived. Alternative fuel retailers must obtain a fuel supplier's license from the Delaware Department of Transportation (DelDOT), and operators or owners of vehicles using alternative fuel must obtain either a special fuel user's license from DelDOT or pay the special fuel tax. (Reference Delaware Code Title 30, Chapter 51, Subchapter II)



### Laws and Regulations

State Agency Energy Plan To improve air quality and reduce operating expenses from state vehicle use, all state agencies must reduce petroleum consumption by 25%, vehicle emissions by 25%, and vehicle miles traveled by 15% by the end of 2012 as compared to Fiscal Year 2008 levels. This will be achieved through alternativ e fuel vehicle acquisition, the use of alternative fuels, and implementation of idle reduction measures. (Reference Executive Order 18, 2010)

Alternative Fuel and Advanced Vehicle Acquisition Requirements All new light-duty vehicles state agencies, departments, and offices purchase must be hybrid electric, alternative fuel, fuel-efficient, or low emission vehicles, unless such a purchase compromises health, safety, or law enforcement needs. Additionally, the state must develop procedures for diesel fleet vehicles to use biodiesel fuel blends of the highest percent content that is practical. (Reference Executive Order 18, 2010)



### State Incentives

Alternative Fuel Vehicle Exemption from Driving Restrictions Certified clean fuel vehicles are exempt from time-of-day and day-of-week restrictions and commercial vehicle bans, if these vehicles are part of a fleet that operates at least 10 vehicles in an ozone nonattainment area, as defined by the Clean Air Act. This exemption does not permit unrestricted access to High Occupancy Vehicle lanes, except for covered fleet vehicles that have been certified by the U.S. Environmental Protection Agency as Inherently Low Emission Vehicles (ILEV) and continue to be in compliance with applicable ILEV emission standards. (Reference District of Columbia Code 

## Delaware

Dist. of Columbia 

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### State Incentives

Alternative Fuels Production Incentive The Innovation Incentive Program within the Florida Office of Tourism, Trade, and Economic Development provides resources for business projects that allow the state to compete effectively for high-value research and development, including alternative and renewable energy projects. To qualify, an alternative and renewable energy project must involve collaboration with an institution of higher education; provide the state a minimum full return on investment within a 20-year period; include matching funds from the applicant or other available sources; and be located in Florida. Additional criteria may apply. For the purpose of this incentive, alternative and renewable energy means electrical, mechanical, or thermal energy produced using one or more of the following energy sources: ethanol, cellulosic ethanol, biobutanol, biodiesel, biomass, biogas, hydrogen fuel cells, ocean energy, hydrogen, solar, hydro, wind, or geothermal. Incentive awards are subject to state funding availability. (Reference Florida Statutes 288.1089)

Excise Tax Exemption for Biodiesel Production at Schools Biodiesel fuel that a public or private secondary school manufactures is exempt from the diesel fuel excise tax and the associated registration requirements. To qualify for the exemption, total annual production of biodiesel must be less than 1,000 gallons and may only be used by the school, its employees, or its students. (Reference Florida Statutes 206.874)

Renewable Energy Grants The Renewable Energy and Energy

- Efficient Technologies Grants Program and Farm to Fuel Grants Program provide matching grants for demonstration, commercialization, research, and development projects related to renewable energy technologies or bioenergy. Incentive awards are subject to state funding availab ility. As of June 2011, these programs have not been funded for 2011; however, federal funding may be available through the Florida Energy and Climate Commission to support selected state energy grant programs. (Reference Florida Statutes 377.804 and 570.954)



### Laws and Regulations

Alternative Fuel Economic Development To stimulate local economic development, landowners may apply to amend the local government comprehensive plan to expand existing uses of rural agricultural industrial centers to include facilities that prepare biomass materials that can be used for the production of fuel, renewable energy, bioenergy, or alternative fuel. In addition, permit applications and local comprehensive plan amendments submitted for projects resulting in the production of biofuels or construction of a biofuel processing facility may be expedited. (Reference Florida Statutes 163.3177 and 403.973)

Fuel-Efficient Vehicle Acquisition and Alternative Fuel Use Requirements When procuring new vehicles under a state purchasing plan, all Florida state agency, state university, community college, and local government fleets must select the vehicles with th e greatest fuel efficiency available for a given use class. Exceptions may be made for emergency responder vehicles if these entities provide documentation. In addition, all state agencies must use ethanol and biodiesel blended fuels when available. State agencies administering central fueling operations for state-owned vehicles must purchase ethanol and biodiesel fuels to use in their vehicle fleet as much as possible. (Reference Florida Statutes 286.29)

Biofuels Promotion The Florida Department of Management Services (DMS), in coordination with the Florida Department of Transportation (DOT), must conduct an analysis of fuel additives and biofuels the DOT uses through its central fueling facilities. The DMS must also encourage other state government entities to analyze transportation fuel usage, including the types and percentages of fuels consumed, and report this information to the DMS. (Reference Florida Statutes 287.16)

Provision for Renewable Fuels Investment To create jobs and improve the state's general infrastructure, the Florida State Board of Administration may invest up to 1.5% of the net assets of the system trust fund in technology and growth investments of businesses operating in Florida, including businesses related to biofuels, renewable energy, and other related applications. (Reference Florida Statutes 215.47)

Alternative Fuels Tax A person operating an alternative fuel vehicle (AFV) must purchase an annual decal from the Florida Department of Motor Vehicles to be exempt from the excise tax on gasoline. Fueling stations may not fuel a vehicle with propane or compressed natural gas that does not display the proper decal. State and local government AFV fleets are exempt from paying the decal fee. In addition to the state alternative fuel fee, a person fueling a vehicle from their own facility must pay a local alternative fuel fee instead of the excise tax a county levies. (Reference Florida Statutes 206.877) 

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### State Incentives

Alternative Fuel Vehicle (AFV) Tax Credit An income tax credit is available to individuals who purchase or lease a new dedicated AFV or convert a vehicle to operate solely on an alternative fuel. The amount of the tax credit is 10% of the vehicle cost, up to $2,500. Qualified vehicles must meet emissions standards defined by the Geor gia Board of Natural Resources. Eligible alternative fuels include natural gas, propane, hydrogen, coal derived liquid fuels, fuels other than alcohol derived from biological materials, and electricity. Any portion of the credit not used in the year the AFV is purchased or converted may be carried over for up to five years. This incentive does not apply to hybrid electric vehicles. (Reference Georgia Code 48-7- 40.16)

Point of Contact James Udi Environmental Specialist Georgia Environmental Protection Division Phone: (404) 363-7046 Fax: (404) 362-2534 james.udi@dnr.state.ga.us

Alternative Fuels Production Assistance The Georgia Division of Energy Resources and the Georgia Environmental Finance Authority (GEFA) provide assistance to companies that are considering locating alternative fuels production facilities in Georgia. Using a broad network of biomass and energy industry representatives, as well as state and local government leaders, GEFA may provide prospective businesses with useful information and connect businesses with the appropriate contacts. For more information, see the GEFA Renewable Energy and Alternative Fuels Development website.

Alternative Fuel Production Facility Tax Exemption Tangible personal property used in or for the construction of a facility dedicated to the production and processing of ethanol, biodiesel, butanol, and their by-products are exempt from the state sales and use tax. To qualify, alternative fuels produced in the facility must be derived from biomass materials such as agricultural products, animal fats, or the wastes of such products or fats. The tax exemption does not apply to property purchased after alternative fuel production and processing has begun at the facility. The exemption applies to tangible personal property purchased between July 1, 2007, and June 30, 2012. (Reference Georgia Code 48-8-3)



### Laws and Regulations

Alternative Fuel Use and Alternative Fuel Vehicle (AFV) Acquisition Requirements State agencies and departments must prioritize the procurement of high fuel efficiency and flexible fuel vehicles when such technologies are commercially available and economically practical. Additionally, all state-owned fueling facilities must purchase gasoline blended with ethanol and diesel fuel blended with biodiesel for use in state vehicles when available and economically practical. (Reference Executive Order 02.28.06.02, 2006)

Biodiesel Specifications Biodiesel produced or sold in the state, including for the purpose of blending with petroleum diesel, must meet ASTM specification D6751. (Reference Georgia Code 10-1-151.1)

Alternative Fuel Excise Tax Distributors who sell or use motor fuel, including special fuels, are subject to an excise tax of $0.075 per gallon. Motor fuels that are not commonly sold or measured by the gallon and are used in motor vehicles on public highways are taxed according to their gasoline gallon equivalent. Propane and special fuels sold in bulk to a licensed consumer distributor are exempt from this tax. (Reference Georgia Code 48-9-3)



### Laws and Regulations

Alternative Fuel and Advanced Vehicle Acquisition Requirements State and county agencies must purchase light-duty vehicles that reduce petroleum consumption and meet the needs of the agency. The priority to be used for purchasing such vehicles is as follows:

1. Electric or plug-in hybrid electric vehicles; 2. Hydrogen or fuel cell vehicles; 

## Georgia

Hawaii 

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...3. Other alternative fuel vehicles; 4. Hybrid electric vehicles; and 5. Vehicles identified as top performers for fuel economy in the U.S. Environmental Protection Agency's annual "Fuel Economy Leaders" report.

Exemptions may apply. State agencies must purchase altern ative fuels and ethanol blended gasoline when available, evaluate a purchase preference for biodiesel blends, and promote the efficient operation of vehicles. For the purpose of this requirement, an alternative fuel is defined as an alcoho l fuel, an alcohol fuel blend containing at least 85% alcohol, natural gas, liquefied petroleum gas (propane), hydrogen, biodiesel, a biodiesel blend containing at least 20% biodiesel, a fuel derived from biological materials, and electricity from off-board energy sources.

(Reference Hawaii Revised Statutes 103D-412 and 196-9)

Biofuels Production Land Use Allowance and Exemption To reduce dependence on petroleum, achieve environmental sustainability, and create jobs, the state of Hawaii permits the use of lands originally zoned as agricultural land use districts to be used for renewable energy production, storage, and distribution, including the production of biofuels. Biofuels production or distribution facilities must be integrated with an agricultural activity and may not adversely impact agricultural land and other agricultural uses in the vicinity. Biofuels production or distribution facilities include those that produce or distribute liquid or gaseous fuels from organic sources such as biomass crops, agricultural residues, food wastes, animal residues and wastes, and oil crops including palm, canola, soybean, and waste cooking oils. Additionally, biofuels production or distribution facilities are exempt from subdivision requirements for leases and easements within agricultural land use districts. To qualify for the exemption, a biofuels facility must have the capacity to produce or distribute at least 100,000 gallons of fuel annually and be designated as a renewable energy facility. (Reference Senate Bill 1244, 2011, and Hawaii Revised Statutes 201N-14, 205-2, and 205-4.5)

Energy Feedstock Program The Hawaii Department of Agriculture established the Energy Feedstock Program to promote and support the production of energy feedstock development in Hawaii and to establish milestones and objectives for energy feedstock to be grown in the state to meet its energy requirements. Energy feedstock includes feedstock used to produce biofuels. (Reference Hawaii Revised Statutes 141-9)

Biofuels Procurement Preference State and county agency contracts for the purchase of diesel fuel are to be awarded with preference given to bids for biofuels or blends of biofuel and petroleum fuel. When purchasing fuel for use in diesel engines, the preference price is $0.05 per gallon of B100. For blends containing both biodiesel and petroleum-based diesel, the preference is applied only to the biodiesel portion of the blend. Biodiesel is a vegetable oil-based fuel that meets ASTM specification D6751. Biofuel is a fuel from non-petroleum plant or animal based sources that can be used for the generation of heat or power. (Reference Hawaii Revised Statutes 103D-1012)

Alternative Fuel Tax Rate A distributor of any alternative fuel used to operate an inte rnal combustion engine must pay a license tax of $0.0025 for each gallon of alternative fuel the distributor sells or uses. In addition, a distributor must pay a license tax for each gallo n of fuel sold or used by the distributor for operating a motor vehicle on state public highways according to the following rates:

For other alternative fuels, the rate is based on the energy content of the fuels as compared to diesel fuel, using a lower heating value of 130,000 British thermal units per gallon as a standard for diesel, so that the tax rate, on an energy content basis, is equal to one-quarter the rate for diesel fuel. Counties may also impose additional taxes.

(Reference Hawaii Revised Statutes 243-4) Fuel Type Tax

Ethanol 0.145 times the rate for diesel
Methanol 0.11 times the rate for diesel
Biodiesel 0.25 times the rate for diesel Propane 0.33 times the rate for diesel

Last Updated April 2012



### State Incentives

Exemptions for Biodiesel Production for Personal Use A biodiesel producer that produces up to 5,000 gallons of biodiesel fuel in a calendar year for personal consumption is exempt from the $0.01 per gallon petroleum transfer fee and the requirement to obtain an Idaho motor fuel distributor's license. (Reference Idaho Statutes 63-2421 and 63-2427A) 

## Idaho 

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...Alternative Fuels Tax Refund State excise tax paid on special fuels used in motor vehicles that the state or federal government owns or leases may be refunded, as long as the tax was originally paid directly to a special fuel vendor. Special fuels include compressed and liquefied natural gas, liquefied petroleum gas (propane), hydrogen, and fuel suitable for use in diesel engines. The tax refund is not available for special fuels a registered motor vehicle uses while idling. Idling means a period of time greater than 15 minutes when the motor vehicle is stationary with the engine operating. (Reference Idaho Statutes 63-2401, 63- 2402, and 63-2423)



### Laws and Regulations

Biodiesel Definitions Biodiesel is defined as any fuel derived in whole or in part from agricultural products, animal fats, or the wastes from these products, and is suitable for use in diesel engines. A biodiesel blend is defined as any fuel produced by blending biodiesel with petroleum-based diesel to produce a fuel suitable for use in diesel engines. (Reference Idaho Statutes 63- 2401)



### State Incentives

Alternative Fuel Vehicle (AFV) and Alternative Fuel Rebates The Illinois Alternate Fuels Rebate Program (Program) provides a rebate for 80% of the incremental cost of purchasing an AFV (up to $4,000), 80% of the cost of converting a conventi onal vehicle or a hybrid electric vehicle to an AFV using a federally certified conversion (up to $4,000), and for the incremental cost of purchasing alternative fuels. Eligible fuels for the program include E85, fuel blends containing at least 20% biodiesel (B20), natural gas, propane, electricity, andhydrogen. A vehicle may receive one rebate in its lifetime. Only AFVs or conversion systems purchased from an Illinoisbased company or vendor are eligible, except if the vehicle is a heavy-duty specialty vehicle that is not sold in Illinois, but the conversion does have to take place in Illinois. Only hybrid electric vehicles fueled with alternative fuels are eligible. To be eligible for a fuel rebate, the entity or indivi dual must purchase the majority of E85 or biodiesel fuel from Illinois retail stations or fuel suppliers. The E85 fuel rebate is up to $450 per year (depending on vehicle miles traveled) for up to three years for each flexible fuel vehicle that uses E85 at least half the time. The biodiesel fuel rebate (for B20 and higher blends) is for 80% of the incremental cost of the biodiesel fuel, as compared to conventional diesel. The Program is part of the Illinois Green Fleets Program and is open to all Illinois residents, businesses, government units (except federal government), and organizations located in Illinois. (Reference House Bill 6047, 2010, and 415 Illinois Compiled Statutes 120/30)

Point of Contact Darwin Burkhart Manager, Clean Air Programs Illinois Environmental Protection Agency and Chicago Area Clean Cities Coalition Phone: (217) 524-5008 Fax: (217) 557-2559 darwin.burkhart@illinois.gov http://www.illinoisgreenfleets.org

Biofuels Production Facility Grants The Renewable Fuels Development Program provides grants for the construction or expansion of biodiesel and ethanol production facilities. Each new facility must have a production capacity of at least five million gallons per year and an existing facility must expand its production capacity by at least five million gallons per year to be eligible for funding. The total amount of the grant awarded may be up to 10% of the total construction costs of the facility or $4 million, whichever is less. (Reference 20 Illinois Compiled Statutes 689/1 through 689/99)

Point of Contact Norm Marek Renewable Fuels Development Program Manager Illinois Department of Commerce and Economic Opportunity Phone: (217) 785-5082 Fax: (217) 785-2618 norm.marek@illinois.gov

Alternative Fuel Vehicle (AFV) Fleet Incentives The Illinois Green Fleets Program recognizes and provides additional marketing opportunities for fleets in Illinois that have a significant number of AFVs and use clean, domestically produced fuels.

Point of Contact Darwin Burkhart Manager, Clean Air Programs Illinois Environmental Protection Agency and Chicago Area Clean Cities Coalition Phone: (217) 524-5008 Fax: (217) 557-2559 darwin.burkhart@illinois.gov http://www.illinoisgreenfleets.org 

## Illinois 

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...School Bus Retrofit Reimbursement The Illinois Department of Education will reimburse any qualifying school district for the cost of converting gasoline buses to more fuel-efficient engines or to engines using alte rnative fuels. Restrictions may apply. (Reference 105 Illinois Compiled Statutes 5/29-5)

Biodiesel Tax Exemption Sales and use taxes apply to 80% of the proceeds from the sale of biodiesel fuel blends containing between 1% and 10% biodiesel made between July 1, 2003, and December 31, 2018. If these taxes are ever imposed at a rate of 1.25%, the tax on these biodiesel blends will apply to 100% of the proceeds of sales. These taxes do not apply to the proceeds from the sale of biodiesel blends containing more than 10% bi odiesel. The taxes will apply to 100% of the proceeds from biodiesel sales made after December 31, 2018. (Reference Senate Bill 397, 2011, and 35 Illinois Compiled Statutes 120/2-10 and 105/3-10)



### Laws and Regulations

Alternative Fuel Taxicab Regulation - Chicago, IL Chicago taxi companies with 50 or more vehicles in their fleet must operate at least one alternative fuel taxi. Alternative fuel taxis include vehicles designed to operate on compressed natural gas, biodiesel (20% blend or higher), propane, hydrogen, or electricity. No more than 2% of the taxi fleet's licensed taxicabs are subject to this requirement. In addition, an alternative fuel vehicle can be licensed as a taxi for an additional year beyond the age limit of a conventional vehicle. For more information, see the City of Chicago Rules and Regulations for Taxicab Medallion License Holders Rule 5.01

.

Fuel-Efficient Vehicle Acquisition Goals To help achieve the statewide goal of reducing petroleum use by 20% by July 1, 2012, as compared to 2008 petroleum use, Illinois state agencies must work towards meeting the following goals:

z By July 1, 2015, at least 20% of new passenger vehicles purchased must be hybrid electric vehicles (HEVs) and 5%

must be battery electric vehicles (EVs);

z By July 1, 2025, at least 60% of new passenger vehicles purchased must be HEVs and 15% must be EVs;

Agencies that operate medium- and heavy-duty vehicles must implement strategies to reduce fuel consumption through diesel emission control devices, HEV and EVs technologies, alternative fuel use, and fuel-efficient technologies. Agencies must also implement strategies to promote the use of biofuels in state vehicles; reduce the environmental impacts of employee travel; and encourage employees to adopt alternative travel methods, such as carpooling.

(Reference Executive Order 11, 2009)

Biofuels Production Promotion The state legislature supports the federal '25x25' initiative, under which 25% of the total energy the United States consumes in 2025 would be produced from domestic agriculture. (Reference Senate Joint Resolution 42, 2009)

Creation of Green Career Grants Program The Illinois State Board of Education will establish a grant program to develop two-year pilot programs to assist in the creation and promotion of green career and technical education programs in public secondary schools. Green industries include the production and distribution of biofuels and vehicle retrofits to operate using biofuels. (Reference Illinois Compiled Statutes 5/2-3.151)

Biodiesel Production Tax A private biodiesel producer that produces less than 5,000 gallons of biodiesel annually is subject to the annual state motor fuel tax. The return and payment of taxes for a given year are due by January 20 of the following year. A private biodiesel producer that produces more than 5,000 gallons of biodiesel annually must file returns and make state motor fuel tax payments on a monthly basis. The return and payment of taxes are due by the 20th day of each calendar month for the preceding calendar month. A private biodiesel fuel producer is defined as a person whose only activities with respect to motor fuel are: 1) the conversion of any biomass materials into biodiesel fuel that is produced exclusively for personal use and not for sale; or 2) the blending of biodiesel fuel resulting in biodiesel blends that are produced exclusively for personal use and not for sale. (Reference 35 Illinois Compiled Statutes 505/2, 505/2a, and 505/2d)

Biodiesel Definition and Specification Biodiesel is defined as a fuel that is comprised of mono-alkyl esters of long-chain fatty acids derived from vegetable oils or animal fats and that conforms to ASTM standard D6751. All fuel consisting of at least 99% biodiesel (B99) that is sold or offered for sale should conform to ASTM standard D6751. (Reference 815 Illinois Compiled Statutes 370/4)

Biodiesel Blend Use Requirement The following entities are required to use a biodiesel blend that contains at least 5% biodiesel (B5) when fueling at a bulk central fueling facility: any diesel powered vehicle owned or operated by the state, county or local government, school district, community college, public college or university, or mass transit agency. These entities are required to use B5 

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...where available, unless the vehicle engine is designed or retrofitted to operate on a higher percentage of biodiesel or on ultra low sulfur diesel fuel. Biodiesel is defined as a renewable fuel conforming to ASTM standard D6751 and registered with the U.S. Environmental Protection Agency. (Reference 625 Illinois Compiled Statutes 5/12-705.1, 415 Illinois Compiled Statutes 120/10, and 815 Illinois Compiled Statutes 370/4)

Advanced Vehicle Acquisition and Biodiesel Fuel Use Requirement All gasoline-powered vehicles purchased with state funds must be flexible fuel vehicles (FFVs) or fuel-efficient hybrid electric vehicles (HEVs). Fuel-efficient HEVs are defined as automobiles or light trucks that use a gasoline or diesel engine and an electric motor to provide power and that gain at least a 20% increase in combined U.S. Environmental Protection Agency city-highway fuel economy over the equivalent or most-similar conventionally-powered model. Furthermore, any vehicle purchased with state funds that is fueled with diesel fuel must be certified by the manufacturer to run on 5% biodiesel (B5) fuel. The Chief Procurement Officer may determine that certain vehicle procurements are exempt from these requirements based on intended use or other reasonable considerations such as health and safety of Illinois citizens. (Reference 30 Illinois Compiled Statutes 500/25-75)

Biofuels Preference for State Vehicle Procurement In awarding contracts that require vehicle procurement, stat e agencies may give preference to an otherwise qualified bidder who will fulfill the contract through the use of vehicles powered by ethanol produced from Illinois corn or biodiesel produced from Illinois soybeans. (Reference 30 Illinois Compiled Statutes 500/45-60)



### State Incentives

Biodiesel Production Tax Credit A biodiesel producer located in Indiana may receive a credit of $1.00 per gallon of biodiesel produced. The Indiana Economic Development Corporation (IEDC) must review and approve applications for this incentive. The IEDC may grant a single taxpayer no more than $3 million total for all taxable years; this maximum incentive may be increased to $5 million with prior approval from IEDC. As of April 2012, no funds have been appropriated for this incentive. (Reference Indiana Code 6-3.1-27-8)

Biodiesel Blending Tax Credit A biodiesel blender located in Indiana may receive a credit of $0.02 per gallon of blended biodiesel produced at a facility located in Indiana. The Indiana Economic Development Corporation must review and approve applications for this incentive. The IEDC may grant a single taxpayer no more than $3 million total for all taxable years. As of April 2012, no funds have been appropriated for this incentive. (Reference Indiana Code 6-3.1-27-9)

Biodiesel Price Preference A governmental body, state educational institution, or instrumentality of the state that performs essential governmental functions on a statewide or local basis is entitled to a 10% price preference for the purchase of fuels containing at least 20% biodiesel (B20) by volume or fuels that are primarily ester-derived (other than alcohol) made from biological materials, such as oilseeds and animal fats, for use in operating compression and ignition engines. (Reference Indiana Code 5-22-15-1, 5-22-15-7, and 5-22-15-19)

Biodiesel Blend Tax Exemption Biodiesel blends of at least 20% (B20) that are used for personal, noncommercial use by the individual that produced the biodiesel portion of the fuel are exempt from the $0.16 per gallon license tax. The maximum number of gallons of fuel for which the exemption may be claimed is based on the percentage volume of biodiesel in each gallon used. (Reference Indiana Code 6-6-2.5-1.5, 6-6-2.5-28, and 6-6-2.5-30.5)



### Laws and Regulations

Biodiesel Definition Biodiesel is defined as a renewable, biodegradable fuel derived from agricultural plant oils or animal fats that meet ASTM specification D6751. Blended biodiesel is a blend of biodiesel wi th petroleum diesel fuel so that the volume percentage of biodiesel in the blend is at least 2% (B2). (Reference Indiana Code 6-3.1-27-1, 6-3.1-27-2, and 6-6-2.5-1.5)

Biofuels Blend Use Requirement Whenever possible, governmental entities and state educational institutions must fuel diesel vehicles with biodiesel blends containing at least 2% biodiesel (B2), gasoline vehicles with mid-level ethanol blends between 20% and 73%, and flexible fuel vehicles with E85. This requirement does not apply if such blends are prohibited under federal regulations or have not been approved by the vehicle manufacturer. Additional exemptions apply. (Reference Indiana Code 5-22-5-8 and 21-31-9-3) 

## Indiana 

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...Certified Technology Park Designation The Indiana Economic Development Corporation may designate an area as a certified technology park if certain criteria are met, including a commitment from at least one business engaged in a high technology activity that creates a significant number of jobs. The establishment of high technology activities and public facilities within a technology park serves a public purpose and benefits the public's general welfare by encouraging investment, job creation and retention, and economic growth and diversity. High technology activities include advanced vehicles technology, which is any technology that involves electric vehicles, hybrid electric vehicles, or alternative fuel vehicles, or components used in the construction of these vehicles. (Reference Indiana Code 36-7-32)

Last Updated May 2012



### State Incentives

Biodiesel Blend Retailer Tax Credit Retailers whose total diesel sales consist of at least 50% biodiesel blends containing a minimum of 2% biodiesel (B2) are eligible for a state income tax credit based on each gallon of biodiesel sold. The credit amounts vary by the sales year and biodiesel blend level as follows:

This tax credit expires December 31, 2017. (Reference Iowa Code 422.11P) Calendar Year Tax Credit Rate (B2 to B5) Tax Credit Rate (B5 or above)

2012 $0.02 $0.045

2013-2017 $0.00 $0.045

Biofuels Infrastructure Grants The Renewable Fuel Infrastructure Program provides financial assistance to qualified E85 and biodiesel retailers. Costshare grants are available for up to 70% of the total cost of the project, up to $50,000, to upgrade or install new E85 or biodiesel infrastructure. Applicants may also qualify for supplemental incentives of up to 75% of the cost of improvements, up to $30,000, to upgrade or replace an E 85 fueling dispenser that has not been approved by an independent testing laboratory. The supplemental incentive is available only to applicants who made the improvement no later than 60 days after the date of the publication in the Iowa administrative bulletin of the state fire marshal's order providing that a commercially available fueling dispenser is listed as compatible for use with E85 by an independent testing laboratory.

Biodiesel distributors may apply for cost-share grants for infrastructure upgrades and installations at biodiesel terminal facilities. Facilities blending or dispensing blends ranging from 2% biodiesel (B2) to 98% biodiesel (B98) are eligible for up to 50% of the total project, up to $50,000. Facilities blending or dispensing B99 or B100 are eligible for up to 50% of the total project, up to $100,000.

The Renewable Fuels Infrastructure Board receives administra tive support from staff with in the Iowa Department of Agriculture and Land Stewardship and the 11-member board has authority to determine the eligibility of applicants. (Reference (Reference Iowa Code 15G.202-15G.204)

Point of Contact Harold Hommes Marketing and Renewable Fuels Program Iowa Department of Agriculture and Land Stewardship Phone: (515) 242-6237 Fax: (515) 281-8025 harold.hommes@iowaagriculture.gov http://www.iowaagriculture.gov/

Biodiesel Producer Tax Refund A biodiesel producer may apply for a refund of Iowa state sales or use taxes paid on purchases. To qualify, the producer must be registered with the U.S. Environmental Protection Agency and biodiesel produced must be used in biodiesel fuel blends. The refund amount is based on the total gallons of biodiesel produced in the state multiplied by a designated rate, as follows:

A biodiesel producer is only eligible to receive a refund for up to 25 million gallons of biodiesel produced during each calendar year through 2014. The producer must file refund cl aims with the Iowa Department of Revenue on a quarterly basis. Refunds received may not be included as income for Iowa individual and corporation income tax purposes. This incentive expires December 31, 2014. (Reference Iowa Code 423.4) Calendar Year Refund per Gallon

2012 $0.03

2013 $0.025

2014 $0.02 

## Iowa 

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...Alternative Fuel Vehicle (AFV) Demonstration Grants The Iowa Department of Natural Resources conducts marketing and education outreach to encourage the use of alternative fuels and, contingent upon funding, awards demonstration grants to individuals who purchase vehicles that operate on alternative fuels, including but not limited to E85, biodiesel, compressed natural gas, electricity, solar energy, or hydrogen. Individuals may use grants to conduct research connected with the fuel or the vehicle and to purchase the vehicle if the Department of Natural Resources retains the title of the vehicle, the vehicle is used for research, and the proceeds from the eventual sale of the vehicle are used for additional research. (Reference Iowa Code 214A.19)

Alternative Fuel Production Tax Credits The Enterprise Zone Program and the High Quality Jobs Program offer state tax incentives to business projects for the production of biomass or alternative fuels. Depending on the program, incentives may include: an investment tax credit equal to a percentage of the qualifying investment, amortized over five years; a refund of state sales, service, or use taxes paid to contractors or subcontractors during construction; a doubling of the state's refundable research activities credit; and a local property tax exemption of up to 100% of the value added to the property. (Reference House File 2473, 2012)

Point of Contact Business Finance Program Program Coordinator Iowa Economic Development Authority Phone: (515) 725-3134 Fax: (515) 725-3010 businessfinance@iowa.gov



### Laws and Regulations

Biodiesel and Ethanol Specifications Ethanol-blended gasoline must conform to ASTM D4814, E85 must conform to ASTM D5768, and biodiesel-blended fuel containing at least 6%, but no more than 20%, biodiesel must conform to ASTM D7467. The state defers to the U.S. Environmental Protection Agency for potential changes in specifications. (Reference Senate File 214A.2)

Biodiesel Fuel Use The Iowa Department of Transportation (IDOT) may purchase biodiesel for use in IDOT vehicles through the biodiesel fuel revolving fund created in the state treasury. The fund consists of money received from the sale of Energy Policy Act of 1992 (EPAct) credits IDOT has banked and other money ID OT has obtained or accepted for deposit in the fund. (Reference Iowa Code 307.20)

Alternative Fuel Vehicle (AFV) Acquisition Requirements At least 10% of new light-duty vehicles purchased by institutions under the control of the state fleet administrator, including the Iowa Department of Transportation administrator, board of directors of community colleges, state board of regents, commission for the blind, and department of corrections must be capable of using alternative fuels. Vehicles and trucks purchased and directly used for law enforcement and off-road maintenance work are exempt from this requirement. (Reference Iowa Code 8A.362, 216B.3, 260C.19A, 262.25A, 307.21 and 904.312A)



### State Incentives

Alternative Fuel Vehicle (AFV) Tax Credit An income tax credit is available for 40% of the incremental or conversion cost for qualified AFVs, based on gross vehicle weight rating (GVWR) as outlined in the table below. Qualified AFVs include vehicles that operate on a combustible liquid derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source.

Alternatively, a tax credit of 5% of the cost of the AFV, up to $750, is available for the purchase of an original equipment manufacturer AFV. This credit is allowed only to the first individual to take title of the vehicle. For motor vehicles capable of operating on E85, the individual claiming the credit must provide evidence of purchasing at least 500 gallons of E85 between the time the vehicle was purchased and December 31, of the following calendar year. Excess credits may be carried over for up to three years after the year in which the expenditures were made.

(Reference Kansas Statutes 79-32,201) GVWR Credit
Less than 10,000 pounds (lbs.) Up to $2,400

10,000 to 26,000 lbs. Up to $4,000

Over 26,000 lbs. Up to $40,000 

## Kansas 

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...Alternative Fueling Infrastructure Tax Credit An income tax credit is available for 40% of the total cost to install alternative fueling infrastructure after January 1, 2009. Qualified property must be directly related to the deliver y of alternative fuel into the fuel tank of a motor vehicle propelled by such fuel. The tax credit may not exceed $100, 000 per fueling station. Alternative fuels are defined as combustible liquids derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source. Excess credits may be carried over for up to three years after the year in which the expenditures were made. (Reference Kansas Statutes 79-32,201)

Renewable Fuel Retailer Tax Incentive A licensed retail motor fuel dealer may receive a quarterly incentive for selling and dispensing renewable fuels, including biodiesel. A qualified motor fuel dealer is eligible for up to $0.065 for every gallon of renewable fuel sold and up to $0.03 for every gallon of biodiesel sold, if the required threshold percentage is met. The threshold percentage for the incentive payment will increase incrementally on an annual basis from 10% for renewable fuel and 2% for biodiesel in 2009 to 25% for each fuel type beginning on January 1, 2024. As of June 2011, this incentive is on hold until further notice. (Reference Kansas Statutes 79-34,171 through 79-34,176)

Point of Contact Cindy Mongold Public Service Administrator II Kansas Department of Revenue Phone: (785) 296-7048 Fax: (785) 296-4993 cindy_mongold@kdor.state.ks.us

Biofuel Blending Equipment Tax Exemption Qualified equipment used for storing and blending petroleum-based fuel and biodiesel, ethanol, or other biofuel is exempt from state property taxes. The exemption begins at the time of installation at a fuel terminal, refinery, or biofuel production plant, and ends 10 taxable years following the year in which the equipment was installed. Equipment used only for denaturing ethyl alcohol is not eligible. (Reference Kansas Statutes 79-232 and 79-32,251)

Biodiesel Production Incentive A qualified Kansas biodiesel producer is eligible for a production incentive of $0.30 per gallon of biodiesel sold. The incentive is payable from the Kansas Qualified Biodiesel Fuel Producer Incentive Fund. Producers must file for the incentive on a quarterly basis through the Kansas Department of Revenue. (Reference Kansas Statutes 79-34,158)



### Laws and Regulations

Biofuels Use Requirement State-owned diesel-powered vehicles and equipment must use a biodiesel blend that contains at least 2% biodiesel (B2), where available, as long as the price of biodiesel is not more than $0.10 per gallon as compared to the price of diesel fuel. Individuals operating state-owned motor vehicles must purchase fuel blends containing at least 10% ethanol (E10), as long as these fuel blends are not more than $0.10 per gallon as compared to the price per gallon of regular gasoline fuel. (Reference Kansas Statutes 75-3744a)

Biodiesel and Renewable Fuel Definitions Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from vegetable oils or animal fats and meets the specifications adopted by rules and regulations of the Kansas Department of Agriculture pursuant to current law. The specification must meet the ASTM D6751-07 specification for biodiesel fuel (B100) blend stock for distillate fuels, but may be more st ringent regarding biodiesel quality and usability. Renewable fuels are defined as combustible liquids derived from grain starch, oil seed, animal fats, or other biomass; or produced from a biogas source, including any non-fossilized, decaying, organic matter capable of powering spark ignition machinery. (Reference Kansas Statutes 79-34,155 and 79-34,170)



### State Incentives

Biodiesel Production and Blending Tax Credit Qualified biodiesel producers or blenders are eligible for an income tax credit of $1.00 per gallon of pure biodiesel (B100) or renewable diesel produced or used in the blending process. Re-blending of blended biodiesel does not qualify for the tax credit. The total amount of credits claimed by all biodiesel producers may not exceed the annual biodiesel tax credit cap of $10 million. Unused credits may not be carried forward. For the purpose of this credit, biodiesel must meet ASTM specification D6751, and renewable diesel is defined as a renewable, biodegradable, non-ester combustible liquid derived from biomass resources that meets ASTM specification D975 or D396. (Reference Kentucky Revised Statutes 141.422 to 141.424) 

## Kentucky 

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...Alternative Fuel Production Tax Incentives The Kentucky Economic Development and Finance Authority (KEDFA) provides tax incentives to construct, retrofit, or upgrade an alternative fuel production or gasification facility that uses coal or biomass as a feedstock. KEDFA also provides tax incentives for energy-efficient alternative fuel production facilities and for up to five alternative fuel production facilities that use natural gas or natural gas li quids as a feedstock. Energy-efficient alternative fuels are defined as homogeneous fuels that are produced from processes designed to densify feedstocks such as coal, waste coal, or biomass resources, and have an energy content that is greater than the feedstock. The incentives may consist of: 1) a refund of up to 100% of the state sales tax paid on the purcha se of personal property used to construct the facility; 2) a credit of up to 100% of an approved company's state income tax and limited liability entity tax that the project generates; 3) up to 4% of the wage assessment of employees whose jobs were created as a result of the construction, retrofit, upgrade, or operation of a qualified facility; and 4) a credit for up to 80% of the severance tax paid for coal, natural gas, or natural gas liquids used as a feedstock.

The incentives expire at the time of receipt of the authorized amount or 25 years from activation of the project, whichever occurs first. Approved companies may recover up to 50% of their capital investment via the authorized tax incentives. The minimum capital investment for incentive eligibility is $25 million for an alternative fuel or gasification facility that uses biomass as the primary feedstock; $100 million for an alternative fuel or gasification facility that uses coal, oil shale, or tar sands as the primary feedstock; $25 mil lion for an energy-efficient alternative fuel facility; and $1 million for a facility that uses natural gas or natural gas liquids as the primary feedstock.

(Reference Kentucky Revised Statutes 154.27-010 to 154.27-090)

Point of Contact Don Goodin Kentucky Economic Development Finance Authority Phone: (502) 564-4554 Fax: (502) 564-7697 don.goodin@ky.gov http://www.thinkkentucky.com/

Alternative Fuel and Vehicle Promotion The Kentucky Department for Energy Development and Independence (Department) encourages the responsible use of transportation fuels by supporting academic research, public education, and collaborative partnerships involving alternative fuels and alternative fuel vehicles (AFVs). The Department facilitates projects that promote the use of AFVs and establish alternative fuel infrastructure in Kentucky.

Point of Contact Tim Hughes Director, Division of Biofuels Kentucky Department for Energy Development and Independence Phone: (502) 564-7192 Fax: (502) 564-7406 timd.hughes@ky.gov http://energy.ky.gov/Pages/default.aspx



### Laws and Regulations

Biomass and Biofuels Industry Development The Executive Task Force on Biomass and Biofuels Development must facilitate the development of a sustainable biomass and biofuels industry in Kentucky. The Executive Task Force Final Report recommends key strategic actions to develop the industry, including identifying a single agency to coordinate development efforts, developing policies to mitigate demand and supply risks, ensuring the industry's sustainability, and developing capitalization mechanisms. (Reference Executive Order 2009-817, 2009)

Vehicle Acquisition Priorities and Alternative Fuel Use Requirement The Kentucky Finance and Administration Cabinet (Cabinet) must develop a strategy to replace at least 50% of commonwealth motor fleet light-duty vehicles with energy-efficient vehicles including hybrid electric, advanced lean burn, fuel cell, and alternative fuel vehicles. The Cabinet must also develop a strategy to increase the use of ethanol, biodiesel, and other alternative fuels in commonwealth motor vehicle fleets. The Cabinet must report targeted vehicle and fuel usage amounts annually. (Reference Kentucky Revised Statutes 45A.625)

State Energy Plan Alternative Fuel Requirements The Governor's Office of Energy Policy (Office) oversees the development and implementation of Kentucky's comprehensive energy strategy. Specifically, the Office must develop and implement a strategy for the production of alternative transportation fuels and synthetic natural gas from fossil energy resources and biomass resources, including biodiesel and ethanol. The Office developed a commonwealth energy plan, Intelligent Energy Choices for Kentucky's Future, in 2008. This plan proposes seven strategies to su pport a renewable and efficiency portfolio standard and to develop an alternative transportation fuel standard and set fuel production goals. (Reference Kentucky Revised Statutes 152.720) 

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### State Incentives

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit The state offers an income tax credit of 50% of the cost of converting a vehicle to operate on an alternative fuel, 50% of the incremental cost of purchasing an original equipment manufacturer AFV, and 50% of the cost of constructing an alternative fueling station. Only dedicated AFVs registered in Louisiana may receive the tax credit. Alternatively, a taxpayer may take a tax credit of 10% of the cost of the motor vehicle, up to $3,000. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas (propane), biofuel, biodiesel, methanol, ethanol, electricity, and any other fuels that meet or exceed federal clean air standards. (Reference Louisiana Revised Statutes 47:6035)

Green Jobs Tax Credit The state offers a corporate or income tax credit for qualified capital infrastructure projects in Louisiana that are directly related to industries including but not limited to the energy efficient and advanced drivetrain vehicle industry and the biofuels industry. The tax credit is for 10% to 25% of the project costs, calculated based on the investment costs, up to $1 million per state-certified green project. The portion of the base investment expended on payroll for Louisiana residents employed in connection with the construction of the project may be eligible for an additional 10% tax credit on the payroll. Restrictions may apply. (Reference Louisiana Revised Statutes 47:6037)

Biodiesel Equipment and Fuel Tax Exemption Certain property and equipment used to manufacture, produce, or extract unblended biodiesel are exempt from state sales and use taxes. Unblended biodiesel used as fuel by a registered manufacturer is also exempt from state sales and use taxes until June 30, 2015. Unblended biodiesel is de fined as B100 fuel that meets ASTM specification D6751. (Reference House Bill 282, 2011, and Louisiana Revised Statutes 47:301)



### Laws and Regulations

Biodiesel Use in School Buses Study The State Board of Education and Secondary Education (Board) must study the use of biodiesel in school buses and report its findings to the Louisiana Legislature at least 60 days before the 2012 legislative session convenes. The Board will consider the environmental and economic advantages and disadvantages of using biodiesel in school buses. (Reference House Resolution 72, 2011)

Authorization for Alternative Fuel Vehicle (AFV) Loans The Louisiana Department of Natural Resources (Department) will administer the Alternative Fuel Vehicle Revolving Load Fund to provide loan assistance to local government entities, including cities, parishes, school boards, and local municipal subdivisions for the cost of converting conventional vehicles to operate on alternative fuels, or the incremental cost of purchasing new AFVs. Eligible alternative fuels must meet or exceed federal emissions standards and include compressed natural gas, liquefied natural gas (propane), biodiesel, ethanol, methanol, and electricity. The Department must promulgate rules and regulations necessary to implement the loan program. As of September 2011, funding has not been appropriated. (Reference Louisiana Revised Statutes 33:1419.1-33:1419.6)

Renewable Fuel Standard Within six months following the point at which cumulative monthly production of denatured ethanol produced in Louisiana equals or exceeds a minimum annual production volume of 50 million gallons, at least 2% of the total gasoline sold by volume in the state must be denatured ethanol. Ethanol is defined an ethyl alcohol that has a purity of at least 99%, exclusive of added denaturants; meets U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and ASTM specification D4806; and is produced from domestic agricultural or biomass products. This requirement will not be effective until six months after the average wholesale price of a gallon of Louisiana-manufactured ethanol, less any federal tax incentives or credits, is equal to or below the average wholesale price of a gallon of regular unleaded gasoline in Louisiana for a period of not less than 60 days, as determined by the Louisiana Biofuel Panel.

Within six months following the point at which cumulative monthly production of biodiesel produced in the state equals or exceeds a minimum annual production volume of 10 million gallons, at least 2% of the total diesel sold by volume in the state must be biodiesel produced from domestically grown feedstock. Biodiesel is a fuel comprised of mono-alkyl esters of long chain fatty acids derived from renewable resources and meeting the requirements of ASTM specification D6751, or a diesel fuel substitute produced from non-petroleum rene wable resources such as vegetable oils and animal fats that meet U.S. Environmental Protection Agency fuel and fuel additive requirements.

Alternatively, these requirements may be met through the production of an alternate renewable fuel, defined as a liquid fuel that is domestically produced from renewable biomass, can be used in place of ethanol or biodiesel, and meets the definition of renewable fuel in the Energy Policy Act of 2005. Within six months following the point at which cumulative monthly production of an alternate renewable fuel produced in the state equals or exceeds a minimum annual production volume of 20 million gallons, at least 2% of the total motor fuel sold by volume in the state must be the alternate renewable fuel produced from domestically grown feedstock. This requirement may not exceed 2% of the total motor fuel sold by volume by owners or operators of fuel distribution terminals.

Blenders and retailers will have six months to meet the new minimum ethanol, biodiesel, or alternate renewable fuel content requirements, unless the Department of Weights and Measures determines that the quality or supply of ethanol or biodiesel in the state is insufficient or fuel distributors are unable to blend ethanol due to delays in obtaining permits or constructing ethanol blending or storage equipment. Any combination of alternative fuels, including but not limited to 

## Louisiana 

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...denatured ethanol, biodiesel, and alternative renewable fuel may be used to meet these requirements. Fuels containing ethanol or biodiesel will not be required to be sold in ozone nonattainment areas. The Department of Agriculture and Forestry will adopt rules and regulations requiring incentives to compensate for any costs associated with achieving the minimum ethanol and biodiesel standards.

The Louisiana Legislature encourages in-state restaurants to provide their waste fats, oils, and grease to biodiesel production facilities and store their waste fats, oils, and grease in a manner that facilitates the use of these products in a biodiesel production facility.

(Reference Louisiana Revised Statutes 3:4674, 3:4674.1, and 3:3712)

Biofuels Feedstock Requirements Renewable fuel production plants operating in Louisiana and deriving ethanol from the distillation of corn must use corn crops harvested in Louisiana to meet at least 20% of the facility's total feedstock requirement. Renewable fuel plants operating in Louisiana and deriving biodiesel from soybeans and other crops must use soybean crops harvested in Louisiana to meet at least 2.5% of the facility's total feedstock requirement. In succeeding years, the minimum percentage of Louisiana-harvested corn and soybeans used to produce renewable fuel in Louisiana facilities must be at least the same percentage of corn and soybeans used nationally to produce renewable fuel as reported by the U.S. Department of Agriculture's Office of the Chief Economist. To ensure that the appropriate amounts of Louisiana-harvested feedstocks are available for renewable fuel production, re newable fuel manufacturing facilities are responsible for communicating their anticipated production levels and specific feedstock requirements to the Department of Agriculture and Forestry 180 days before the start of commercial operation and on an annual basis thereafter. (Reference Louisiana Revised Statutes 3:3712)

Last Updated June 2011



### State Incentives

Biofuels Production Tax Credit A certified commercial biofuel producer is eligible for an income tax credit of $0.05 per gasoline gallon equivalent of biofuel produced for use in motor vehicles or otherwise used as a substitute for liquid fuels. Biofuel is defined as ethanol, biodiesel, hydrogen, methanol, or any other transportation fuel derived from agricultural crops or residues, or from forest products or byproducts. A taxpayer claiming this credit must receive a letter from the Maine Department of Environmental Protection that certifies the biofuels produced during the taxable year are eligible for the tax credit. For biofuels blended with petroleum or other non-biofuels, the credit is allowed only on the biofuels portion of that blend. Any portion of unused credits may be carried over for up to 10 taxable years. (Reference Maine Revised Statutes Title 36, Section 5219-X)

Biodiesel Fuel Tax Exemption An individual that produces biodiesel for personal use or use by a member of his or her immediate family is exempt from the state fuel excise tax. (Reference Maine Revised Statutes Title 36, Section 3203 and 3204-A)



### Laws and Regulations

Policy Recommendations for Biofuels Promotion The Maine Office of Energy Independence and Security issued a report, Liquid Biofuels Policy for Maine: A Report to the State Legislature , which recommended specific policy options aimed toward the promotion of biofuels. The recommendations include the following: a) combine existing, unfunded, alternative fuels funds into one Clean Fuel Fund; b) study sustainability measures for biofuels; c) improve implementation of existing policies related to alternative fuels; d) support research and development; e) exempt alternative fu els from exclusivity contracts; f) revise and reinstate an excise tax cut for biofuels; g) institute a biodiesel purchasing requirement for the Maine Department of Transportation; and h) pursue a regional renewable fuels standard and/or lo w carbon fuel standard. The report includes suggestions for initial implementation actions and next steps. (Reference Legislative Documents 1159, 1284, and 1347, 2007)

Alternative Fuel Tax Rates Blended fuels that contain at least 10% gasoline or diesel are now taxed at the full tax rates of gasoline ($0.30 per gallon) or diesel ($0.312 per gallon). Alternative fuel tax rates are as follows:

Fuel Tax Rate

E85 $0.30 per gallon Biodiesel blends of up to 90% $0.312 per gallon

Biodiesel blends of 90-100% $0.287 per gallon

Pro p ane/li q uefied p etroleum g as $0.219 per gallon Compressed natural gas (CNG) $0.243 per 100 cubic feet Hydrogen $0.07 per 100 cubic feet Hydrogen CNG $0.208 per 100 cubic feet 

## Maine 

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...For more information see the Maine Revenue Services website. (Reference Legislative Document 1468, 2011, and Maine Revised Statutes Title 36, Section 3203)

Transportation Efficiency Fund The Transportation Efficiency Fund is a non-lapsing fund managed by the Maine Department of Transportation to increase energy efficiency and reduce reliance on fossil fuels within the state's transportation system. Funding may be used for zero emission vehicles, biofuel and other alternative fuel vehicles, congestion mitigation and air quality initiatives, rail, public transit, and car or van pooling. (Reference Maine Revised Statutes Title 23, Section 4210-E)

Provision for Establishment of Clean Fuel Vehicle Insurance Incentives An insurer may credit or refund any portion of the premium charged for an insurance policy on a clean fuel vehicle in order to encourage its policyholders to use clean fuel vehicles, as long as insurance premiums on other vehicles are not increased to fund these credits or refunds. (Reference Maine Revised Statutes Title 10, Sections 963-A, and Title 24-A, Section 2303-B)



### State Incentives

Biofuels Production Incentive Qualified ethanol and biodiesel producers are eligible for production incentives on a per gallon basis. To be eligible for the incentive, the producer must first apply for and receive certification from the Renewable Fuels Incentive Board (Board). Credits are offered to certified producers in Maryland for ethanol or biodiesel produced between December 31, 2007, and December 31, 2017.

Ethanol production credits are as follows: a) $0.20 per gallon of ethanol produced from small grains such as wheat, rye, triticale, oats, and hulled or hull-less barley; or b) $0.05 per gallon of ethanol produced from other agricultural products. The Board may not certify ethanol production credits for more than a total of 15 million gallons per calendar year, of which at least 10 million gallons must be produced from small grains.

Biodiesel production credits are as follows: a) $0.20 per gallon of biodiesel produced from soybean oil (the soybean oil must be produced in a facility or through expanded capacity of a facility that began operating after December 31, 2004), or b) $0.05 per gallon for biodiesel produced from other feedstocks, including soybean oil produced in a facility that began operating on or before December 31, 2004. The Board ma y not certify biodiesel production credits for more than a total of five million gallons per calendar year, of which at least two million gallons must be from soybean oil produced in a facility as described above.

(Reference Maryland Statutes , Agriculture Code 10-1501 through 10-1507)



### Laws and Regulations

Alternative Fuel Use Requirement At least 50% of state vehicles must use a minimum biodiesel blend of 5% (B5). This requirement does not apply to any state vehicles for which the use of biodiesel will void the manufacturer's warranty for that vehicle. Additionally, bi-fuel and flexible fuel vehicles capable of operating on either alte rnative fuel or conventional fu el must use alternative fuel when it is available. (Reference Maryland Statutes , State Finance and Procurement Code 14-408, and Policies and Procedures for Vehicle Fleet Management )



### Laws and Regulations

Biodiesel Blend Mandate Pursuant to state law, all diesel motor vehicle fuel and all other liquid fuel used to operate motor vehicle diesel engines must contain at least 2% renewable diesel fuel by July 1, 2010; 3% renewable diesel fuel by July 1, 2011; 4% renewable diesel fuel by July 1, 2012; and 5% renewable diesel fuel by July 1, 2013. For these purposes, eligible renewable diesel fuel includes diesel fuel that is derived predominantly from renewable biomass and yields at least a 50% reduction in lifecycle greenhouse gas (GHG) emissions relative to the average lifecycle GHG emissions for petroleum-based diesel fuel sold in 2005. The Massachusetts Department of Energy Resources (DOER) must also study the feasibility, benefits, and costs of applying the percentage mandates on a statewide average basis rather than for every gallon of diesel motor fuel sold.

DOER may delay the implementation of the biodiesel blend mandate if DOER determines that it is not feasible to meet the mandate due to lack of supply, lack of blending facilitie s, or unreasonable cost. As of June 2010, DOER suspended the formal requirement on grounds of unreasonable cost.

(Reference Massachusetts General Laws Chapter 94, Section 295G1/2) 

## Maryland

Massachusetts 

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...Voluntary Biofuels Program In place of the formal Biodiesel Blend Mandate , the Massachusetts Department of Energy Resources (DOER) is launching a voluntary biofuels program through which DOER will work with biodiesel suppliers to certify biofuels. Lessons learned from this voluntary program will provide the basis for future expansion and full implementation of a state biofuels mandate. For more information, refer to the June 2010 Massachusetts Advanced Biofuels Mandate Program Announcement

.

Hybrid Electric (HEV) Alternative Fuel Vehicle (AFV) Acquisition Requirements When purchasing new motor vehicles, the Commonwealth of Massachusetts must purchase HEVs or AFVs to the maximum extent feasible and consistent with the ability of such vehicles to perform their intended functions. HEVs and AFVs must be acquired at a rate of at least 5% annually for all new motor vehicle purchases so that not less than 50% of the motor vehicles the Commonwealth owns and operates will be HEVs or AFVs by 2018. (Reference Massachusetts General Laws Chapter 7, Section 9A)

State Agency Alternative Fuel Use Requirement All Massachusetts agencies must use a minimum of 15% biodiesel (B15) in all on- and off-road diesel engines, provided that the Commonwealth Office of Vehicle Management and othe r appropriate agencies have determined that a B15 goal is appropriate. The Massachusetts Department of Energy Resources (DOER) will set guidelines for a minimum required use of E85 in state flexible fuel vehicles, depending on the availability of the fuel in the state. Agencies may apply for exemptions from the biodiesel and E85 fuel use requirements if the agencies demonstrate that the alternative fuel is not available within a reasonable distance and/or the price of the alternative fuel is cost prohibitive, as determined by DOER. (Reference Massachusetts Executive Office of Administration and Finance Administrative Bulletin 13, 2006)

State Agency Alternative Fuel Vehicle (AFV) Acquisition Requirement State fleets must acquire AFVs according to the requir ements of the Energy Policy Act (EPAct) of 1992 and the Massachusetts Office of Vehicle Management (OVM) must approve any light-duty vehicle acquisition. All agencies must purchase the most economical, fuel-efficient, and low emission vehicles appropriate to their mission. OVM, in collaboration with the Massachusetts Department of Energy Resources, will set new minimum standards for vehicle mileage and work with agencies to acquire vehicles that provide the best value for the Commonwealth on a total cost of ownership basis. (Reference Executive Order 388, 1996, and Massachusetts Executive Office of Administration and Finance Administrative Bulletin 10, 2010)



### State Incentives

Reduced Biofuels Tax A tax of $0.12 per gallon is imposed on gasoline containing at least 70% ethanol (E70) and diesel fuel containing at least 5% biodiesel (B5). This is a $0.07 discount compared to the conventional gasoline tax of $0.19 per gallon and a $0.03 discount compared to the conventional diesel tax of $0.15 per gallon. Ethanol is defined as denatured ethanol fuel that is suitable for use in a spark-ignition engine when mixed with gasoline and must meet ASTM D5798 specification. Biodiesel is defined as a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats and meets ASTM D6571 specification, as approved by the Michigan Department of Agriculture. Funding for this tax reduction is subject to appropriation. (Reference Michigan Compiled Laws 207.1008)

Alternative Fuel Development Property Tax Exemption A tax exemption may apply to industrial property that is used for, among other purposes, high-technology activities or the creation or synthesis of biodiesel fuel. High-technology activities include those related to advanced vehicle technologies such as electric, hybrid electric, or alternative fuel vehicles and their components. To qualify for the tax exemption, an industrial facility must obtain an exemption certificate for the property from the Michigan State Tax Commission. (Reference Michigan Compiled Laws 207.552 and 207.803)



### Laws and Regulations

Biodiesel Retail and Storage Requirements All biodiesel and biodiesel blends sold in Michigan must meet state fuel quality requirements. A refiner, distributor, or retailer cannot transfer or dispense biodiesel or biodiesel blends unless the fuel is visibly free of undissolved water, sediments, and other suspended matter. Additionally, a biodiesel retailer may not sell biodiesel or biodiesel blends drawn from a storage tank that has more than two inches of water or water-alcohol at the bottom. Any retailer of biodiesel or biodiesel blends must obtain a license from the Michigan Department of Agriculture for each operating retail location. (Reference Michigan Compiled Laws 290.642-290.647) 

## Michigan 

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### State Incentives

Alternative Fuel and Technology Grants The University of Minnesota's Initiative for Renewable Energy and the Environment offers various types of grants to promote statewide economic development; sustainable, healthy and diverse ecosystems; and national energy security through development of biobased and other renewable resources and processes. Eligible projects include those focused on environmentally sound production of energy, including transportation fuels such as hydrogen and biofuels, from renewable sources; development of energy conservation and efficient energy utilization technologies; energy storage technologies; and analysis of policy options to facilitate adoption of technologies that use or produce low-carbon renewable energy. Funds are available through 2012. (Reference Minnesota Statutes 116C.779)



### Laws and Regulations

Biodiesel Blend Mandate Diesel fuel sold or offered for sale in the state for use in internal combustion engines must contain at least 5% biodiesel (B5). Beginning May 1, 2012 or when certain conditions have been met, during the months of April through October, diesel fuel must contain at least 10% biodiesel (B10). By May 1, 2015, diesel fuel must contain 20% biodiesel (B20) during these months. Diesel fuel sold during the remainder of the year must be B5. The Minnesota Department of Agriculture, Department of Commerce, and the Pollution Control Agency, in consultation with the Biodiesel Task Force and other technical experts, may allow the higher specified biodiesel blend levels to be effective year round if determined that an ASTM specification or equivalent federal standard exists for the specified biodiesel blend level that adequately addresses technical issues associated with Minnesota's cold weather and publish a notice in the State Register to that effect. Additional exceptions may apply. As of May 2012, th e B10 mandate implementation has been delayed. (Reference Minnesota Statutes 239.75 and 239.77)

State Agency Sustainability Plan and Requirements State agencies must establish interagency teams to develop and implement sustainability goals that reduce state vehicle petroleum consumption. In addition, each state department or agency must prepare an annual sustainability plan that includes ways to modify vehicle use practices, and report annually on progress towards implementing their plan. Each state agency plan must be based on following targets and mandates:

z Using 2005 as a baseline, the state must achieve a 50% redu ction in gasoline used to operate state agency owned

on-road vehicles by 2015;

z Using 2005 as a baseline, the state must achieve a 25% redu ction in the use of petroleum-based diesel fuel for

state owned on-road vehicles by 2015;

z When reasonably possible, state agencies must purchase on-road vehicles that use alternative fuels, including

biodiesel blends of 20% (B20) or greater, compressed or liquefied natural gas, ethanol blends of 70% (E70) or greater, hydrogen, propane, or electricity, or (with the exception of buses, snowplows, and construction vehicles) have a fuel economy rating that exceeds 30 miles per gallon (mpg) in the city and 35 mpg on the highway;

z When reasonably possible, state employees must fuel vehicles capable of operating on an alternative fuel with that

fuel;

z State agencies must increase the use of renewable fuels derived from agricultural products or waste products; and

z State agencies must increase the use of technology for delivering information and services in order to reduce

reliance on the state's fleet.
(Reference Executive Order 11-13, 2011, and Minnesota Statutes 16C.135 and 16C.137)

Biofuel Use Requirement State agencies must take all reasonable actions to develop th e infrastructure necessary to increase the availability and use of E85 and biodiesel throughout the state. Employees using state vehicles are expected to use E85 fuel when operating flexible fuel vehicles, whenever E85 is reasonably available. The Minnesota's SmartFleet Committee sets goals for reducing state government consumption of petroleum-based transportation fuels and reports annually on the use of E85 in the state fleet. (Reference Executive Orders 04-10, 2004, and 06-03, 2006)

Biodiesel Definition Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and meets ASTM specification D6751-08. A biodiesel blend is a blend of diesel fuel and biodiesel fuel (between 6% and 20%) for on-road and off-road diesel vehicle use. Biodiesel blends must comply with ASTM specification D7467-08. Biodiesel produced from palm oil is not considered biodiesel fuel, unless the palm oil is waste oil and grease collected from within the United States or Canada. (Reference Minnesota Statutes 239.761 and 239.77)

Last Updated May 2012



### State Incentives

Biofuels Production Incentive The Mississippi Department of Agriculture and Commerce (Department) provides incentive payments to qualified ethanol and biodiesel producers located in Mississippi. The Department may issue payments of $0.20 per gallon for up to 30 

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...million gallons per year per producer for a period of up to 10 years following the start date of production. The Department will not make payments for production after June 30, 2015, and the maximum total annual payment to a single producer per fiscal year is $6 million. (Reference Mississippi Code 69-51-5)



### Laws and Regulations

Fuel-Efficient and Alternative Fuel Vehicle Use The State Bureau of Fleet Management (Bureau), operated through the Mississippi Department of Finance and Administration, coordinates and promotes fuel efficiency and economy when state agencies purchase, lease, rent, acquire, use, maintain, and dispose of vehicles. The Bureau encourages state agencies to use fuel-efficient or hybrid electric vehicles as appropriate and, when feasible, use alternative fuels, including ethanol, biodiesel, natural gas, or electricity to operate the vehicles. By July 1, 2014, at least 75% of all vehicles titled under the Bureau must have a U.S. Environmental Protection Agency estimated fuel economy rating of at least 40 miles per gallon for highway driving. (Reference Mississippi Code 25-1-77)

State Employee Travel Policy All state agencies and institutions must develop and adopt travel policies that include strategies to reduce petroleum consumption, such as carpooling to meetings and purchasing alternative fuels where available. (Reference Executive Order 82, 2009)



### State Incentives

Alternative Fueling Infrastructure Tax Credit For tax years beginning before January 1, 2012, an income tax credit is available for the cost of constructing a qualified alternative fueling station. The amount of the credit is 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment, up to $20,000. The total amount of tax credits claimed may not exceed $1 million for the 2011 tax year. Tax credits may be carried forward for two years and may be transferred or sold, but will be forfeited if a tax credit recipient stops selling alternative fuel. Eligible fuels include any mixture of biodiesel and diesel fuel, as well as fuel containi ng at least 70% of the following alternative fuels: ethanol, compressed natural gas, liquefied natural gas, liquefied petroleum gas or propane, and hydrogen. (Reference Missouri Revised Statutes 135.710)

Point of Contact Cindy Carroll Energy Specialist Missouri Department of Natural Resources, Missouri Energy Center Phone: (573) 751-3443 Fax: (573) 751-6860 cindy.carroll@dnr.mo.gov

Biodiesel Fuel Use Incentive Through the 2011-2012 school year, school districts are allowed to establish contracts with nonprofit, farmer-owned, new generation cooperatives to purchase biodiesel blends of 20% (B20) or higher for use in operating buses. Every school district that contracts with an eligible new generation cooperative for biodiesel will receive an additional payment through its state transportation aid payment if there is an incremental cost to purchase the biodiesel. (Reference Missouri Revised Statutes 414.433)

State Fleet Biodiesel Fuel Use Incentive The Missouri Biodiesel Fuel Revolving Fund uses the money generated by the sale of Energy Policy Act of 1992 (EPAct) credits to cover the incremental cost of purchasing fuel containing biodiesel blends of at least 20% (B20) for state fleet vehicle use. (Reference Missouri Revised Statutes 414.407)



### Laws and Regulations

Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements A state agency that operates a vehicle fleet consisting of 15 vehicles or more must ensure that at least 50% of new vehicles purchased over a defined biennial period are capable of operating using an alternative fuel. Excess acquisitions of AFVs may be credited towards future biennial goals. If a state agency fails to meet a biennial acquisition goal, purchases of any non-AFVs are not permitted until the goals are met or an exemption or goal reduction has been granted. In addition, 30% of the fuel purchased annually for use in operating state fleet vehicles must be alternative fuels. (Reference Missouri Revised Statutes 414.400 and 414.410)

Biodiesel Use Requirement At least 75% of the Missouri Department of Transportation (MoDOT) vehicles and heavy equipment that use diesel fuel must be fueled with biodiesel blends of at least 20% (B20), if such fuel is commercially available. The blended biodiesel 

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...fuel will be considered commercially available if the incremental purchase cost is not more than $0.25 compared to conventional diesel fuel. To the maximum extent practicable, MoDOT may obtain funding for the incremental cost of the blended biodiesel fuel from the state's Biodiesel Fuel Revolving Fund. (Reference Missouri Revised Statutes 414.407 and 414.365)

Alternative Fuel Vehicle (AFV) Decal The $0.17 per gallon motor fuel tax does not apply to passenger vehicles, certain buses, or commercial vehicles that are powered by an alternative fuel. The owners or operators of such vehicles are required to pay an annual alternative fuel decal fee as follows (certain restrictions apply):

A vehicle that requires an alternative fuel decal may not operate on state highways without a valid decal. No person may fuel an AFV with liquefied petroleum gas (propane) or natural gas unless the vehicle has a valid decal. Motor vehicles licensed as historic vehicles that are powered by alternative fuels are exempt from the motor fuels tax as well as the alternative fuel decal requirement.

(Reference Missouri Revised Statutes 142.803 and 142.869) Gross Vehicle Weight Type of Vehicle Decal Fee

18,000 pounds (lbs.) or less Passenger, School Bus, or Commercial $75

18,000 lbs.-36,000 lbs. Farm or Farming Transportation with an 'F' License Plate $100

18,000 lbs.-36,000 lbs. Passenger-Carrying and Other Motor Vehicles $150

36,000 lbs. or more Farm or Farming Transportation with an 'F' License Plate $250

36,000 lbs. or more All Other Motor Vehicles $1,000



### State Incentives

Biodiesel Blending Tax Credit Businesses and individuals are eligible for a tax credit of up to 15% of the cost of qualified equipment used for storing or blending biodiesel with petroleum diesel offered for sale. Th e credit may not exceed $52,500 for a special fuel distributor and $7,500 for an owner or operator of a motor fuel outlet. The credit can be claimed in the two tax years before the year in which the business or individual begins blending biodiesel for fuel or sale. (Reference Montana Code Annotated 15-32-703)

Biodiesel Production Facility Tax Credit Businesses and individuals are eligible for a tax credit of up to 15% of the cost of constructing and equipping a facility to be used for biodiesel or bio-lubricant production. The producer must claim the credit in the tax year in which the facility begins production, and the facility must be in operation before January 1, 2015. Additionally, a tax credit is available for property used primarily to crush oilseed crops for purposes of biodiesel production. (Reference Montana Code Annotated 15-32-701 and 15-32-702)

Biodiesel Tax Refund A licensed distributor who pays the special fuel tax on biodiesel may claim a refund equal to $0.02 per gallon of biodiesel sold during the previous quarter if the biodiesel is produced entirely from biodiesel components made in Montana. The owner or operator of a retail motor fuel outlet may claim a refund equal to $0.01 per gallon of biodiesel purchased from a licensed distributor if the biodiesel is created entirely from biodiesel components produced in Montana. (Reference Montana Code Annotated 15-70-369)

Alternative Fuel Vehicle (AFV) Conversion Tax Credit Businesses or individuals are eligible for an income tax credit of up to 50% of the equipment and labor costs for converting vehicles to operate using alternative fuels. Qual ified alternative fuels are compressed and liquefied natural gas, liquefied petroleum gas (propane), hydrogen, electricity, and fuel containing at least 85% ethanol or methanol. The maximum credit is $500 for the conversion of vehicles with a gross vehicle weight rating (GVWR) of 10,000 pounds (lbs.) or less, and $1,000 for vehicles with a GVWR of more than 10,000 lbs. The credit is only available during the year that the business or entity converts the vehicle. An alternative fuel seller may not receive a credit for converting its own vehicles to operate on the alternative fuel they sell. (Reference Montana Code Annotated 15-30-2320)

Alternative Fuel Production Property Tax Incentive Property tax rate abatements are available for qualified biodiesel, biomass, biogas, and ethanol production facilities. These incentives are available during facility construction and for the first 15 years after the facility begins operation or the related equipment is purchased. The total time of th e qualifying period may not exceed 19 years. (Reference Montana Code Annotated 15-24-3111) 

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...Biodiesel Tax Exemption Biodiesel producers that produce biodiesel from waste vegetable oil feedstock are exempt from the state special fuel tax. (Reference Montana Code Annotated 15-70-301 and 15-70-320)

Last Updated September 2011



### State Incentives

Biodiesel Production Investment Tax Credit Investors in Nebraska biodiesel production facilities are eligible to receive a tax credit of 30% of the amount invested in the facility between January 1, 2008, and January 1, 2015, not to exceed $250,000. The credit is only available for facilities that produce B100, perform all processing in Nebraska, and are at least 51% owned by Nebraska individuals or entities. The state may reclaim the tax credit if the biodiesel production facility remains in operation for less than three years. B100 is a pure biodiesel containing mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that meets ASTM standard D6751. (Reference Nebraska Statutes 77-27,236)

Ethanol and Biodiesel Tax Exemption Motor fuels sold to an ethanol or biodiesel production facility and motor fuels manufactured at an ethanol or biodiesel facility are exempt from certain motor fuel tax laws the Motor Fuels Division of the Nebraska Department of Revenue enforces. (Reference Nebraska Statutes 66-489 and 66-496)



### Laws and Regulations

Alternative Fuel Use All state employees operating flexible fuel or diesel vehicles as part of the state fleet must use E85 or biodiesel blends whenever reasonably available. Additionally, the Nebraska Tr ansportation Services Bureau and Nebraska Department of Roads must take steps to increase access to E85 and blends of 2% biodiesel (B2) for state vehicle operators. (Reference Executive Order 05-03, 2005)



### Laws and Regulations

Biodiesel Producer Requirements Biodiesel is defined as a fuel composed of mono-alkyl esters of long-chain fatty acids or any other fuel sold or labeled asbiodiesel which is suitable for use as a fuel in a motor vehicle. A biodiesel blend is a blend of biodiesel and petroleumbased product suitable for use in a motor vehicle. A special fuel manufacturer is a person who manufactures, blends, produces, refines, prepares, distills, or compounds only special fuel containing biodiesel or biodiesel blends in Nevada for personal use in the state or for sale or delivery in or outside of the state. Special fuel manufacturers must obtain a license from the Nevada Department of Motor Vehicles (DMV) and report quantities of biodiesel fuel produced or blended in the state as well as contact information for biodiesel purchasers or recipients. Manufacturers must ensure that biodiesel blends produced do not exceed total volumes the DMV has established. (Reference Nevada Revised Statutes 366)

Alternative Fuel Use in County School Districts Transportation equipment purchased with county school district general funds and used for transporting pupils must fall into one of the following categories: 1) motor vehicles that use biodiesel, compressed natural gas, or similar fuels that reduce emissions; 2) equipment to retrofit motor vehicles to use these fuels; or 3) equipment for the transportation, storage, or dispensing of these fuels. (Reference Nevada Revised Statutes 387.335)

Funds for School District Alternative Fuel Use A portion of any penalty assessed for violations of air pollution control laws must be deposited in the county school district fund where the violation occurred. The local air pollution control board must approve expenditures from the fund, which are limited to education programs on topics relating to air quality and projects to improve air quality, including purchasing and installing equipment to retrofit district school buses to operate on biodiesel, compressed natural gas, or a similar fuel that reduces emissions. (Reference Nevada Revised Statutes 445B.500)

Provision for Establishment of Alternative Fuel Incentives In conjunction with the Nevada Department of Business and Industry, the Nevada Department of Conservation and Natural Resources may develop and administer a program to provide incentives to encourage alternative fuel use in motor vehicles, specifically by individuals and others not required by state statute to purchase alternative fuel vehicles. The program may also educate the general public about the benefits of using alternative fuel vehicles. (Reference 

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...Nevada Revised Statutes 486A.200)

Alternative Fuel Vehicle (AFV) Acquisition Requirement Fleets containing 50 or more vehicles that are owned, leased, or operated by the state, a state agency, or a political subdivision of the state in a county with a population of 100,000 or more must acquire AFVs or U.S. Environmental Protection Agency certified Ultra Low Emission Vehicles (ULEVs). Covered fleets are required to purchase either AFVs or certified ULEVs for 90% of new vehicles obtained. A fleet may meet the acquisition requirements by converting existing or newly acquired vehicles to operate on alternative fuels. An AFV acquired in compliance with this mandate must operate solely on the alternative fuel except when operating in an area where the appropriate alternative fuel is unavailable. Fleets with buses or heavy-duty vehicles are included. (Reference Nevada Administrative Code 486A.010-486A.250, and Nevada Revised Statutes 486A.010-486A.180)

Last Updated October 2011



### State Incentives

Alternative Fuel and Advanced Vehicle Project Funding The New Hampshire Department of Environmental Services and the Granite State Clean Cities Coalition (GSCCC) provide competitive funding on a cost reimbursement basis for qualif ied alternative fuel and advanced vehicle projects. Only projects located in ozone nonattainment or maintenance areas in the state are eligible for funding. For more information see the GSCCC website.



### Laws and Regulations

Biodiesel Blend Purchase Requirement Diesel fuel that the New Hampshire Department of Transportation (Department) purchases under the Motor Fuel Inventory Fund must contain at least 5% biodiesel (B5), unless the fuel is unavailable or more expensive than 100% petroleum diesel, in which case the purchase will be at the Department's discretion. The Department is encouraged to purchase diesel fuel containing up to 20% biodiesel (B20) wh en the fuel is acceptable for use. The Department may sell the fuel to all state departments and institutions, political subdivisions of the state, and eligible nonprofit corporations under contract with the Department to transport the general public and federal government agencies. (Reference New Hampshire Revised Statutes 228:24-a)

Biodiesel Definition Biodiesel is a renewable special fuel that is composed of mono-alkyl esters of long chain fatty acids, derived from vegetable oils or animal fats, and meets the requirements of the ASTM specification D6751. (Reference New Hampshire Revised Statutes 259:6-a)

Biodiesel Distributor License and Recordkeeping Requirements Any person who refines, distills, prepares, blends, manufactures, or purchases biodiesel on which the road toll has not been paid and who is not a licensed and bonded distributor must become licensed with the New Hampshire Department of Safety (Department). An annual license fee of $25 applies. Any licensed biodiesel refiner, distiller, blender, manufacturer, or purchaser of more than 10,000 gallons of bi odiesel per month must file a bond with the Department. All biodiesel distributors must maintain and keep records for a period of four years that demonstrate that all biodiesel sold within the state meets ASTM specification D6751. Failure to demonstrate compliance with the appropriate ASTM standard may result in loss of the license. (Reference New Hampshire Revised Statutes 260:36-d and 260:43-b)

Idle Reduction and Fuel-Efficient, Low Emission Vehicle Acquisition Requirements New Hampshire state agencies and departments must implement a Clean Fleets Program in accordance with the recommendations of the Energy Efficiency in State Government Steering Committee, including but not limited to the following components:

a. An anti-idling policy;b. A highway fuel economy rating requirement of at least 27.5 miles per gallon (mpg) for all new passenger and lightduty vehicles and at least 20 mpg for all new light-duty trucks except for emergency and law enforcement vehicles; c. A requirement that new passenger and light-duty vehicles are certified as low emission vehicles in accordance with the recommendations of the Energy Efficiency in State Government Steering Committee; d. A policy ensuring that the appropriate vehicle is selected for the intended use of the vehicle; e. A requirement that vehicle purchases be in compliance wi th the Energy Policy Act of 1992 (EPAct) if applicable; f. A waiver procedure for requesting vehicles not on the approved New Hampshire Department of Administrative Services vehicle list; g. Additional measures to promote fuel conservation.

(Reference Executive Order 2005-4) 

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### Laws and Regulations

Biofuel Use Requirements To reduce fossil fuel dependence and statewide greenhouse gas emissions, New Jersey state departments, agencies, offices, universities, and colleges must purchase biofuels for use in motor vehicles if the cost of biofuel is the same or less than the cost of gasoline or diesel, and if the fuel replacement is found reasonable. For the purpose of this regulation, a biofuel is a liquid or gaseous fuel produced from organic sources, including native noninvasive energy crops, agricultural residues, and non-recycled organic waste, such as waste cooking oil, grease, food wastes, sewage, and algae. (Reference New Jersey Statutes 52:34-6.6-6.8)

Low Emission or Alternative Fuel Bus Acquisition Requirement All buses purchased by the New Jersey Transit Corporation (NJTC) must be: 1) equipped with improved pollution controls that reduce particulate emissions; or 2) powered by a fuel other than conventional diesel. Qualifying vehicles include compressed natural gas vehicles, hybrid electric vehicles, fuel cell vehicles, vehicles operating on biodiesel or ultra low sulfur fuel, or vehicles operating on any other bus fuel approved by the U.S. Environmental Protection Agency. If the NJTC is unable to meet the bus purchase requirement, a report must be submitted to the New Jersey Senate and General Assembly detailing the reasons and an exemption may be granted by the state legislature.(Reference New Jersey Statutes 27:1B-22)



### State Incentives

Biodiesel Blend Tax Credit A tax credit against the state corporate income tax liability is available for each gallon of blended biodiesel fuel containing a minimum of 2% biodiesel (B2), as long as the state special fuel excise tax was paid on the fuel. From January 1, 2012, through December 31, 2012, the credit amount is $0.01 per gallon. (Reference New Mexico Statutes 7- 2A-23)

Biodiesel Blending Facility Tax Credit A tax credit is available for up to 30% of the cost of purchasing or installing equipment used to produce biodiesel blends containing at least 2% biodiesel (B2). The tax credit is limited to $50,000 per facility and is claimed against gross receipts tax or compensating tax. Individuals or organizations must apply for and obtain a certificate of eligibility from the New Mexico Energy, Minerals, and Natural Resources Department before claiming the credit. (Reference New Mexico Statutes 7-9-79.2)

Biofuels Production Tax Deduction The cost associated with purchasing qualified biomass feedst ocks to be processed into biofuels may be deducted in computing the compensating tax due under the New Mexico Gross Receipts and Compensating Tax Act. For the purpose of this incentive, biofuels include ethanol, methanol, methane, and hydrogen. (Reference New Mexico Statutes 7-9-98)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants The New Mexico Energy, Minerals, and Natural Resources Department administers the Clean Energy Grants Program, which provides grants for projects using clean energy technologies (including alternative fuel vehicles and fueling infrastructure) and projects that provide clean energy education, technical assistance, and training programs. These grants are provided on a competitive basis to qualifying entities such as municipalities and county governments, state agencies, state universities, public schools, post-secondary educational institutions, and Indian nations, tribes, and pueblos. As of April 2012, funding for this program is unavailable. (Reference New Mexico Statutes 71-7-1 to 71-7-7)

Point of Contact Colin Messer Program Manager Energy, Mineral, and Natural Resources Department, Energy Conservation and Management Division Phone: (505) 476-3314 Fax: (505) 476-3322 colinj.messer@state.nm.us

Alternative Fuel Tax Exemption Alternative fuel distributed by or used for U.S. governme nt, state government, or Indian nation, tribe or pueblo purposes, is exempt from the state excise tax. (Reference New Mexico Statutes 7-16B-5)



### Laws and Regulations

Alternative Fuel Vehicle (AFV) Acquisition Requirements - Albuquerque, NM All motor vehicles purchased by the City of Albuquerque must be dedicated, flexible fuel, or dual-fuel AFVs. Alternative 

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...fuels are defined as fuels other than gasoline and 100% petroleum diesel and may include ethanol, biodiesel, natural gas, electricity, propane, or other alternative fuels approved by the city's Chief Administrative Officer. For more information, see the City of Albuquerque Executive Instruction No. 26

.

Biodiesel Blend Mandate All diesel fuel sold to state agencies, political subdivisions of the state, and public schools for use in on-road motor vehicles must contain at least 5% biodiesel (B5). After July 1, 2012, all diesel fuel sold to consumers for use in on-road motor vehicles must contain at least B5. The New Mexico Department of Agriculture and the Energy, Minerals, and Natural Resources Department may suspend these requirements for up to six months if there are insufficient amounts of biodiesel available or if the price of biodiesel significantly exceeds the price of diesel fuel for at least two months. (Reference New Mexico Statutes 57-19-28 and 57-19-29)

Green Jobs Training Program Under the Green Jobs Act, the New Mexico Higher Education Department (Department) must establish a state plan for the development of green jobs training programs focusing on rural and tribal communities, including biofuel production and distribution. In addition, the Department must develop a state research program in partnership with the Workforce Solutions Department to collect labor market data for renewable energy industries. The New Mexico Green Jobs Portal was created to support job seekers through education and career development resources and the New Mexico Department of Finance and Administration administers a green jobs fund to support the programs. (Reference New Mexico Statutes 9-15D)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Acquisition Requirements A minimum of 75% of state government and educational institution fleet vehicles purchased must be HEVs or bi-fuel or dedicated AFVs, which includes plug-in electric vehicles. Vehicles must meet or exceed the federal corporate average fuel economy standards. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from this requirement. The New Mexico Energy, Minerals and Natura l Resources Department may grant additional exemptions based on the availability and suitability of vehicles, as well as fuel availability and cost.

Up to $5 million is authorized for a revolving loan fund for AFV acquisitions by state agencies, political subdivisions, and educational institutions. The maximum amount of a loan per vehicle must not exceed the actual cost of acquiring the vehicle, or $3,000, whichever is less. Projected fuel cost savings from using the AFV is considered when the loan repayment schedule is developed.

(Reference New Mexico Statutes 13-1B)

Alternative Fuel Definition The definition of an alternative fuel includes natural gas, liquefied petroleum gas, electricity, hydrogen, fuel mixtures containing not less than 85% ethanol or methanol, and fuel mixtures containing not less than 20% vegetable oil, or a water-phased hydrocarbon fuel emulsion in an amount not le ss than 20% by volume. Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and meets current ASTM biodiesel standards. (Reference New Mexico Statutes 13-1B-2 and 57-19-27)

Alternative Fuels Tax The excise tax imposed on an alternative fuel distributed in New Mexico is $0.12 per gallon. Alternative fuels subject to the excise tax include liquefied petroleum gas or propane, compressed natural gas, and liquefied natural gas. Alternative fuel purchased for distribution is not subject to the excise tax at the time of purchase or acquisition, but the tax is due on any alternative fuel at the time it is dispensed or delivered into the tank of a motor vehicle. Alternative fuel distributors must be licensed by the state.

In lieu of the per gallon tax, owners of alternative fuel vehicles with a gross vehicle weight rating (GVWR) not exceeding 54,000 pounds (lbs.) may pay an annual tax according to the following schedule:

(Reference New Mexico Statutes 7-16B) GVWR Annual Tax
0 to 6,000 lbs. $60
6,001 to 16,000 lbs. $100

16,001 to 26,000 lbs. $300
26,001 to 40,000 lbs. $700
40,001 to 54,000 lbs. $1,100



### State Incentives

Biofuel Production Tax Credit Biofuel producers in New York State are eligible for a state tax credit of $0.15 per gallon of biodiesel (B100) or ethanol produced after the production facility has produced, and made available for sale, 40,000 gallons of biofuel per year. The 

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...maximum credit available is $2.5 million per taxpayer per taxable year for no more than four consecutive taxable years per production facility. If the taxpayer is in a partnership or is a shareholder of a New York S corporation, the maximum credit amount is applied at the entity level, so the aggregate credit allowed to all partners or shareholders may not exceed $2.5 million. Additional requirements may apply. This credit expires December 31, 2011. (Reference New York Tax Law 28*2 and 187-c)

Biofuel Fueling Infrastructure Funding The New York State Energy Research and Development Authority (NYSERDA) administers the Biofuel Station Initiative Program , which provides funding to retail fueling stations offering E85 and biodiesel blends in the state, and to petroleum terminal operators to store, blend, and dispense biofuels. NYSERDA provides a reimbursement of up to 50% of new biofuel dispensing installation costs, including equipment, storage tanks, and associated piping equipment, up to $50,000 per site. NYSERDA also provides a cost reimbursement of up to 50% for new biofuel storage, handling, blending, and rack dispensing equipment, including installation costs, up to $150,000 per site. NYSERDA accepts applications from public access retail fueling station owners and operators in the state. Funding is limited and does not cover facility permitting or engineering costs. A 50% cost-shared technical assistance is also available for the following: technical review of design and construction specifications for the biofuel equipment; analysis of existing and proposed equipment; preparation and submission of requests for biofuel specific permits and waivers to local and state code officials; and facility staff training. For more information, see the NYSERDA Transportation Programs website.

Alternative Fuel Bus and Infrastructure Funding The New York State Energy Research and Development Authority (NYSERDA) administers the Clean Fueled Bus Program

, which provides funds to state and local transit agencies, municipalities, and schools for up to 100% of the incremental cost of purchasing new alternative fuel buses and associated infrastructure. For the purposes of this program, an alternative fuel bus is any motor vehicle with a seating capacity of at least 15 passengers used to transport passengers on public highways that is powered by compressed natural gas (CNG) (including dual-fuel technology that is factory built and certified or a new diesel engine with a minimum of 75% use of CNG during typical operation), propane, methanol, hydrogen, biodiesel, or ethanol, or uses electricity as a primary fuel source (e.g., hybrid electric). Eligible infrastructure projects include fueling equipment installations including, but not limited to, electric vehicle battery charging stations and natural gas fueling stations and depots. A qualified infrastructure project must be necessary to introduce or expand an alternative fuel bus fleet and the funding only covers the cost for items directly associated with making the facility capable of dispensing the fuel. For more information, see the NYSERDA Transportation Programs website.

Alternative Fuel Vehicle (AFV) Technical Assistance The New York State Energy Research and Development Authority (NYSERDA) manages the New York State Clean Cities Sharing Network (Network) , which provides technical, policy, and program information about AFVs. Membership is open to all organizations, businesses, and individuals interested in AFVs and members are notified about upcoming funding opportunities and events. The Network publishes information about tax incentives, fueling stations, case studies, and contact information for the Clean Cities program and other in dustry leaders. The Network also organizes and sponsors technical workshops. For more information, see the NYSERDA Transportation Programs website.

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Technical Assistance The New York State Energy Research and Development Authority's (NYSERDA) Flexible Technical (FlexTech) Assistance Program provides assistance to public, private, and not-for-profit organization fleet managers who want to evaluate the feasibility and cost of adding AFVs and fueling facilities to their operations. Low-cost training for vehicle mechanics is also available through certified institutions. For more information, see the NYSERDA Transportation Programs website.

Alternative Fuel Product Development Funding The New York State Energy Research and Development Authority's (NYSERDA) Transportation Research Program sponsors a wide variety of product development efforts aimed at improving efficiency and increasing the use of alternative fuels. Program Opportunity Notices are issued periodically to solicit proposals for cost-share development efforts leading to the manufacture and sale of innovative products that provide energy, environmental and economic development benefits. For more information, see the NYSERDA Transportation and Power Systems website.



### Laws and Regulations

Fuel Exclusivity Contract Regulation Motor fuel franchise dealers may obtain alternative fuels from a supplier other than a franchise distributor. Any franchise provision that prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, or compressed natural gas from a firm or individual other than the distributor is null and void as it pertains to that particular alternative fuel if the distributor does not supply or offer to supply the dealer with the alternative fuel. Distributors who violate the law by entering into exclusivity contracts will be subject to a $1000 fine. If the distributor does offer renewable fuels, they may require the station to use their brands. (Reference New York General Business Law 199-j)

Alternative Fuel Vehicle (AFV) Acquisition Requirements All new light-duty vehicles that state agencies and other affected entities procure must be AFVs, with the exception of designated specialty, police, or emergency vehicles. Hybrid electric vehicles qualify under these requirements. State agencies and other affected entities that operate medium- and heavy-duty vehicles must implement strategies to reduce petroleum consumption and emissions by using alternative fuels and improving vehicle fleet fuel efficiency. State agencies and other affected entities may substitute the use of 450 gallons of 100% biodiesl (B100) for the acquisition of one AFV. Alternatively, using 2,250 gallons of biodiesel blends of 20% (B20) or 9,000 gallons of biodiesel blends of 5% 

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...(B5) may also be substituted in place of purchasing one AFV. No more than 50% of a given state agency fleet's AFV purchase requirement may be met by substituting B100, B20, or B5. (Reference Executive Orders 111, 2001, and 42, 2005, and Executive Order 9,2008)

Last Updated September 2011



### State Incentives

Biofuels Industry Development Grants The North Carolina Green Business Fund (Fund) provides grants to private businesses with fewer than 100 employees, nonprofit organizations, local governments, and state agencies to encourage the expansion of small and medium sized businesses and to help grow a green economy. One of the Fund's priority areas is the development of the biofuels industry in the state. The North Carolina Department of Commerce may make grants available to maximize development, production, distribution, retail infrastructure, and consumer purchase of biofuels, including grants to enhance biofuels workforce development. (Reference North Carolina General Statutes 143B-437.4)

Renewable Fuel Production Facility Tax Credit A taxpayer that constructs and places into service three or more commercial facilities for processing biodiesel, ethanol, or ethanol/gasoline blends consisting of at least 70% ethanol (E70) in North Carolina and invests at least $400 million in total in the facilities is eligible for a credit equal to 35% of the cost of constructing and equipping the facilities. To clai m the credit, the taxpayer must obtain a written determination from the North Carolina Department of Commerce that the taxpayer is expected to invest at least $400 million in three or more facilities within a five-year period. The credit applies to qualified facilities placed into service before January 1, 2013. (Reference North Carolina General Statutes 105- 129.16D)

Renewable Energy Property Tax Credit Taxpayers who construct, purchase, or lease renewable energy property are eligible for a tax credit equal to 35% of the cost of the property. Renewable energy property includes equipment that uses renewable biomass resources to produce ethanol, methanol, biodiesel, or methane produced from anaerobic biogas, using agricultural and animal waste or garbage; and related devices for converting, conditioning, and storing the liquid fuels and gas produced with the biomass equipment. The taxpayer must take the credit in five equal installments beginning with the taxable year in which the property is placed into service. There is a maximum credit amount of $2.5 million per installation, which applies to renewable energy property placed in service for any purpose other than residential. Property must be placed into service before January 1, 2016. (Reference North Carolina General Statutes 105-129.15 and 105-129.16A)

Biofuels Commercialization Grants The Biofuels Center of North Carolina (Center) is a private, nonprofit corporation the Legislature funds to implement the goal that by 2017, 10% of liquid fuels sold in North Carolina will come from biofuels grown and produced within the state. The Center awards funds to academic institutions, economic development organizations, nonprofit corporations, and other entities through an annual competitive awards process. Grants and contracts are designed to identify and bridge gaps in knowledge and information, speed up the development of technology, and create a seamless continuum between agriculture and transportation fuels.

Alternative Fuel and Idle Reduction Grants Diesel Emission Reduction Grants are available from the North Carolina Department of Environment and Natural Resources Division of Air Quality for the incremental cost of purchasing original equipment manufacturer alternative fuel vehicles, vehicle conversions, implementing idle reduction programs, and constructing or installing public alternative fueling facilities. As of September 2011, funding availability for the 2012 grant cycle is unknown.

Point of Contact Anne Galamb Environmental Specialist North Carolina Department of En vironment and Natural Resources Phone: (919) 707-8423 Fax: (919) 707-8423 anne.galamb@ncdenr.gov

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Support The Clean Fuel Advanced Technology project focuses on reducing transportation related emissions in non-attainment and maintenance counties for National Ambient Air Quality Standards. Projects that are adjacent to areas may also be eligible if the project will reduce emissions in eligible counties. The North Carolina Department of Transportation funds the CFAT project, which covers three broad areas: education and outreach; project funding; and recognition of exemplary activities. As of September 2011, funding is not available. Future financial support is anticipated to be available in 2013 for AFVs, fueling infrastructure, idle reduction technologies, heavy-duty HEVs, heavy-duty buses, and diesel retrofits.

Point of Contact Anne Tazewell Clean Transportation Program Manager North Carolina Solar Center, North Carolina State University 

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...Phone: (919) 513-7831 Fax: (919) 515-6159 cleantransportation@ncsu.edu http://www.ncsc.ncsu.edu/cleantransportation/

Alternative Fuel and Alternative Fuel Vehicle (AFV) Fund The North Carolina State Energy Office administers the Energy Policy Act (EPAct) Credit Banking and Selling Program, which enables the state to generate funds from the sale of EPAct 1992 credits. The funds EPAct credit sales generate are deposited into the Alternative Fuel Revolving Fund (Fund) for state agencies to offset the incremental costs of purchasing biodiesel blends of at least 20% (B20) or ethanol blends of at least 85% (E85), developing alternative fueling infrastructure, and purchasing AFVs and hybrid electric vehicles. Funds are distributed to state departments, institutions, and agencies in proportion to the number of EPAct credits generated by each. For the purposes of this program, the definition of alternative fuel includes 100% biodiesel (B100), biodiesel blends of at least B20, ethanol blends of at least E85, compressed natural gas, propane, and electricity. The Fund also covers additional projects approved by the Energy Policy Council. (Reference North Carolina General Statutes 143-58.4, 143-58.5, 143-341(8)i, and 136-28.13)

Alternative Fuel Tax Exemption The retail sale, use, storage, and consumption of alternative fuels is exempt from the state retail sales and use tax. (Reference North Carolina General Statutes 105-164.13(11))

Biodiesel Tax Exemption An individual who produces biodiesel for use in that individual's private passenger vehicle is exempt from the state motor fuel excise tax. (Reference North Carolina General Statutes 105-449.88(9))

Bond Exemption for Small Biofuels Suppliers Fuel blenders or suppliers of ethanol or biodiesel are not required to file a bond with the North Carolina Department of Revenue when the expected motor fuel tax liability is less than $2,000. (Reference North Carolina General Statutes 105- 449.72(a))



### Laws and Regulations

Biodiesel Requirement for School Buses Every school bus that is capable of operating on diesel fuel must be capable of operating using blends of at least 20% biodiesel (B20). At least 2% of the total volume of fuel purchased annually by local school districts statewide for use in diesel school buses must be a minimum of B20, to the extent that biodiesel blends are available and compatible with the technology of the vehicles and the equipment used. (Reference North Carolina General Statutes 115C-240(c) and 115C249(a))

Alternative Fuel Vehicle (AFV) Acquisition Requirements At least 75% of new or replacement state government light-duty cars and trucks with a gross vehicle weight rating of 8,500 pounds or less must be AFVs or low emission vehicles. (Reference North Carolina General Statutes 143-215.107C)



### State Incentives

Biofuels Infrastructure Grants Through the Biofuels Blender Pump Program , the North Dakota Department of Commerce offers cost-share grants of up to $5,000 per fueling pump, up to $20,000 per retail location, to motor fuel retailers who install qualified biofuel blender pumps and associated equipment. Qualified retailers are also e ligible for grants of up to $14,000 at each retail location for tanks and piping installed at the same time the blender pump is installed. A qualified ethanol retail blender pump must: 1) dispense a blend of gasoline and ethanol in the ratio the purchaser selects; 2) meet an industry standard and carry a warranty for compatibility with dispenser components and storage and piping systems; 3) have at least four hoses and dispense either a blend of 10% ethanol (E10) or the minimum blend percentage the U.S. Environmental Protection Agency has approved for use in all vehicles, a blend of at least 20% ethanol (E20), and E85; and 4) comply with all alternative fuel, biofuel, and flexible fuel requirements established by law. A qualified biodiesel retail blender pump must dispense varying blends of biodiesel and diesel fuels in the ratio the purchaser selects, and comply with all alternative fuel, biofuel, and flexible fuel requirements established by law. Grant recipients must continue to sell biofuel blends for at least 12 months after receiving funding. This incentive is available through April 30, 2013. (Reference North Dakota Century Code 17-80)

Point of Contact Andrea Pfennig Program Administrator North Dakota Department of Co mmerce, Office of Renewable Energy and Energy Efficiency Phone: (701) 328-2687 ahpfennig@nd.gov 

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...Biodiesel Blender Tax Credit A licensed fuel supplier who blends biodiesel or green diesel with diesel fuel may claim an income tax credit of $0.05 per gallon for fuel containing at least 5% biodiesel or green diesel. The biodiesel or green diesel fuel must meet the applicable ASTM specifications. The tax credit may not exceed the taxpayer's liability for the taxable year and each year's unused credit amount may be carried forward for up to five taxable years. (Reference Senate Bill 2034, 2011, and North Dakota Century Code 57-38-01.22 and 57-43.2-01)

Biodiesel Sales Equipment Tax Credit Qualified retailers may be eligible for a corporate income tax credit of 10% of the direct costs incurred to adapt or add equipment to a facility so that it may sell diesel fuel containing at least 2% biodiesel or green diesel. Eligible direct costs must have been incurred after December 31, 2004. A retailer may only claim the credit for up to five years and is limited to $50,000 in cumulative credits for all taxable years. The biodiesel or green diesel fuel must meet applicable ASTM specifications. (Reference Senate Bill 2034, 2011, and North Dakota Century Code 57-38-01.23 and 57-43.2-01)

Biodiesel Production and Blending Equipment Tax Credit Qualified producers or blenders may be eligible for a corporate income tax credit of 10% of the direct costs incurred to add equipment to retrofit an existing facility or construct a new facility in the state for the purpose of producing or blending diesel fuel containing at least 2% biodiesel or green diesel. Eligible direct costs must have been incurred after December 31, 2002. A taxpayer may only claim the credit for up to five years and is limited to $250,000 in cumulative credits for all taxable years. The biodiesel or green diesel fuel must meet applicable ASTM specifications. (Reference Senate Bill 2031, 2011, and North Dakota Century Code 57-38-30.6 and 57-43.2-01)

Biodiesel Equipment Tax Exemption Equipment sold to a facility that enables the facility to sell di esel fuel containing at least 2% biodiesel or green diesel is exempt from sales tax. The biodiesel or green diesel must meet applicable ASTM specifications. (Reference Senate Bill 2034, 2011, and North Dakota Century Code 57-39.2-04 and 57-43.2-01)

Agriculturally-Based Fuel Production Wage and Salary Tax Credit New ethanol, biodiesel, green diesel, and biogas producers may be eligible for an income tax credit equal to a percentage of wages and salaries paid each year. A corporation involved in processing an agricultural product, including ethanol, biodiesel, and biogas feedstocks, may claim an income tax credit equal to 1% of wages and salaries paid during the tax year for each of the first three years of operation and 0.5% of wages and salaries paid during the tax year for the fourth and fifth years. Only corporations doing business in North Dakota for the first time are eligible. A corporation created from the reorganization or acquisition of an existing business does not qualify, nor does a business that receives a property or income tax exemption under North Dakota Century Code 40-57.1. (Reference North Dakota Century Code 57- 38-30.1)



### Laws and Regulations

Alternative Fuel Labeling Requirement Alternative fuel retailers must label retail dispensing units with the price, name, and main components of the alternative fuel or alternative fuel blend being sold. The labeling must follow established labeling specifications for petroleum-based fuels. An alternative fuel producer may provide the retailer with a label promoting the benefits of the alternative fuel if the label meets the specified requirements. Alternative fuel is defined as a fuel used in an engine or vehicle other than a petroleum-based fuel, including biodiesel and green diesel. Alcohol fuel blends containing at least 1% of alcohol by volume must also be clearly labeled at the dispenser and on any price advertisements. (Reference Senate Bills 2034 and 2127, 2011, and North Dakota Century Code 19-10-03.1 and 19-10-03.3)

Biodiesel and Green Diesel Definitions Biodiesel is defined as a fuel that is comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oil or animal fats and that meets ASTM D6751. Green diesel is defi ned as a fuel produced from non-fossil renewable resources, including agricultural or silvicultural plants, animal fats, residue, and waste generated from the production, processing, and marketing of agricultural products, silvicultural produc ts, and other renewable resources. Green diesel must meet applicable ASTM specifications. (Reference Senate Bill 2034, 2011, and North Dakota Century Code 57-43.2-01)

Alternative Fuel Tax Rates A special excise tax rate of 2% is imposed on the sale of propane (liquefied petroleum gas) and a tax of $0.04 per gallon is imposed on all special fuels sales, including compressed natural gas. Retailers must obtain a license from the Office of the State Tax Commissioner to sell special fuels. Exceptions apply. (Reference Senate Bill 2197, 2011, and North Dakota Century Code 57-43.2-02 through 57-43.2-05)



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### State Incentives

School Bus Retrofit Grant Program The Ohio Environmental Protection Agency administers the Clean Diesel School Bus Fund Retrofits Grant Program , which offers grants to retrofit school buses operating on diesel fuel. Priority is given to school districts in communities that do not meet the federal air quality standards for fine air particul ates, and districts that employ additional measures, such as anti-idling programs, to reduce emissions from their school bus fleets

Point of Contact Carolyn Watkins Chief, Office of Environmental Education; Administrator, Diesel Emission Reduction Grants Ohio Environmental Protection Agency Phone: (614) 644-3768 Fax: (614) 728-1275 carolyn.watkins@epa.state.oh.us

Alternative Fuel and Fueling Infrastructure Grants The Alternative Fuel Transportation Grant Program (Program) provides funding for up to 80% of the cost of purchasing and installing fueling facilities offering E85, fuel blends co ntaining at least 20% biodiesel (B20), natural gas; liquefied petroleum gas or propane; hydrogen; electricity; or any fuel that the U.S. Department of Energy determines, by final rule, to be substantially not petroleum. The Program also provides funding for up to 80% of the incremental cost of purchasing and using alternative fuel for businesses, nonprofit organizations, public school systems, and local governments. (Reference Ohio Revised Code 122.075)



### Laws and Regulations

Alternative Fuel Signage The Ohio Turnpike Commission allows businesses to place their logos on directional signs within the right-of-way of state turnpikes. An alternative fuel retailer may include a marking or symbol within their logo indicating that it sells one or more types of alternative fuel. Alternative fuels are defined as E85, fuel blends containing at least 20% biodiesel (B20), natural gas, propane, or hydrogen. (Reference Ohio Revised Code 125.831 and 5537.30)

Alternative Fuel Vehicle (AFV) Acquisition and Fuel Use Requirements With the exception of law enforcement vehicles, all newly acquired state agency vehicles must be capable of using an alternative fuel and must use the relevant alternative fuel if it is reasonably priced and available. Alternative fuel is defined as E85, fuel blends containing at least 20% biodiesel (B20), natural gas, propane, hydrogen, electricity, or any other fuel that the U.S. Department of Energy has determined is substantially not petroleum and would yield substantial energy use and environmental benefits. The Department of Administrative Services issues credits for vehicle acquisition in accordance with the Energy Policy Act of 1992. Any additi onal credits that an agency earns above their requirements may be sold, with proceeds going to the Ohio Biodiesel Revolving Fund to pay for the incremental cost of biodiesel for use in vehicles the state owns or leases. (Reference Ohio Revised Code 125.831-125.832, 125.834 and 125.836 and Executive Order 2007-02)

Alternative Fuel Vehicle Conversion Vehicle emissions control systems may not be tampered with unless the action is for the purpose of converting a motor vehicle to operate on an alternative fuel and is in compliance with the standards adopted under the Clean Air Act Amendments. (Reference Ohio Revised Code 3704.16-3704.162)

Last Updated July 2011



### State Incentives

Biodiesel Production Tax Credit For tax years beginning before January 1, 2013, a biodiesel pr oduction facility is allowed a tax credit of $0.20 per gallon of biodiesel produced for up to 60 months, beginning with the first month for which the facility is eligible for the credit. An eligible biodiesel facility must have produced at least 25% of its original design capacity on or before December 31, 2008, and must maintain a production rate of at least 25% of its original design capacity for at least six months after the first month for which it is eligible to receive the credit. Producers are also eligible for an expansion credit of $0.20 per gallon of biodiesel produced in excess of the original design capacity that results from expansion of the facility before December 31, 2008. This expansion tax credit can be used for up to 60 months beginning with the first month for which production from the expanded facility is eligible and ending before January 1, 2013.

Beginning January 1, 2013, a new or expanded biodiesel facility may receive a credit of $0.075 per gallon of biodiesel for new production for up to 36 consecutive months. To be eligible for this credit, the facility must not have received credits before January 1, 2013, or must have expanded the capaci ty by at least two million gallons, and must have begun operation after January 1, 2013. If the credit allowed exceeds the amount of income taxes due, the excess amount may be carried forward as a credit against subsequent income tax liability for up to five years. Additional restrictions apply. Due to a moratorium on certain state tax incentives, producers may not claim this tax credit for biodiesel produced between July 1, 2010, and June 30, 2012. 

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...(Reference Oklahoma Statutes 68-2357.67)

Biofuels Tax Exemption An individual that produces biodiesel or other biofuels from feedstocks grown on their property and uses that fuel in a vehicle they own is exempt from the state motor fuel excise tax. (Reference Oklahoma Statutes 68-500.4 and 68- 500.10)



### Laws and Regulations

Access to State Alternative Fueling Stations The Oklahoma Department of Central Services Fleet Management Division may construct, install, acquire, operate, and provide alternative fueling infrastructure for state agencies and local government use as well as the public in areas of the state where public access to alternative fuel infrastructure is not readily available. The Department of Central Servicesmust discontinue public access to their fueling stations if a privately owned alternative fueling station opens within a fivemile radius. Alternative fuels include natural gas, liquefied petroleum gas (propane), ethanol, methanol, biodiesel, electricity, and hydrogen. (Reference Oklahoma Statutes 74-78)

Biodiesel Definition and Specifications Biodiesel is defined as a fuel that is comprised only of mono-alkyl esters of long chain fatty acids, is produced from vegetable oils or animal fats, and meets ASTM specificatio n D6751. A biodiesel blend is a blend of biodiesel meeting ASTM specification D6751 and petroleum-based diesel fuel. (Reference Oklahoma Statutes 52-325)

Alternative Fuel Vehicle (AFV) Acquisition Requirements All school and government fleets may convert their vehicles to operate on alternative fuels, and all school districts should consider purchasing only vehicles able to operate on alternative fuels. School and government vehicles capable of operating on an alternative fuel must use the fuel whenever a fueling station is located within a five-mile radius of the respective department or district and the price of the alternative fuel is cost competitive. If school and government vehicles must be fueled outside the five-mile radius and no fueling station is reasonably available, the school and government vehicles are exempt from this requirement. (Reference Oklahoma Statutes 74-130.3)



### State Incentives

Biofuels Use Tax Credit Oregon residents are eligible for an income tax credit of $0.50 per gallon of gasoline blended with at least 85% ethanol (E85) or diesel blended with at least 99% biodiesel (B99) purchased for use in an alternative fuel vehicle (AFV), up to $200 per tax year for each AFV that is registered in Oregon an d owned or leased by the resident. For the purpose of this tax credit, an AFV is a motor vehicle that can operate using E 85 or B99. This incentive is applicable until January 1, 2013. (Reference Oregon Revised Statutes 315.465)

Alternative Fuel School Bus Grant and Loan Program The Oregon Department of Energy (ODOE) must establish the Clean Energy Deployment Program. Under this program, school districts may be eligible for grants and loans to retrofit school bus fleets to operate on compressed natural gas, propane, or other alternative fuels, or to operate with highly efficient engine technologies, such as hybrid electric engines. Funds may also be used to replace school buses with buses that operate on these fuels or technologies. (Reference House Bill 2960, 2011)

Biofuels Production Property Tax Exemption Property used to produce biofuels may be eligible for a property tax exemption if it is located in a designated Renewable Energy Development Zone. The Oregon Business Development Department must receive and approve an application from a qualified rural area to designate the area as a Rural Renewable Energy Development Zone. (Reference Oregon Revised Statutes 285C.350 through 285C.370)



### Laws and Regulations

Renewable Fuels Mandate All gasoline sold in the state must be blended with 10% ethanol (E10). Gasoline with an octane rating of 91 or above is exempt from this mandate, as is gasoline sold for use in certain nonroad applications. Gasoline that contains at least 9.2% agriculturally derived ethanol that meets ASTM specification D4806 complies with the mandate. For the purpose of the mandate, the ethanol must meet ASTM specification D 4806. The governor may suspend the renewable fuels mandate for ethanol if the Oregon Department of Energy finds that a sufficient amount of ethanol is not available.

All diesel fuel sold in the state must be blended with at least 5% biodiesel (B5). For the purpose of this mandate, biodiesel is defined as a motor vehicle fuel derived from vegeta ble oil, animal fat, or other non-petroleum resources, that 

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...is designated as B100 and complies with ASTM specificatio n D6751. Diesel fuel blends sold between October 1 and February 28 may contain additives to prevent congealing or gelling. Beginning January 2, 2012, renewable diesel will qualify as a substitute for biodiesel in the blending requirement.

(Reference House Bill 3693, 2010, House Bills 2827, 2011, Oregon Revised Statutes 646.913-646.923, and Oregon Administrative Rules 603-027-0410 and 603-027-0420)

Renewable Fuels Mandate - Portland, OR All gasoline sold within the Portland city limits must contain a minimum of 10% ethanol (E10), and diesel fuel must contain a minimum of 5% biodiesel (B5) and meet ASTM D6751 standards. Fuel vendors must place signage denoting the type of biofuels mixture available for sale. A retailer who offers a biodiesel blend of 20% (B20) or greater is exempt from the requirement and is allowed to provide for sale, on the same site or a contiguous site, diesel fuel that does not contain biodiesel. For more information, see the City of Portland Development Services Biofuels Portland website.

Biodiesel Quality Testing Procedures Each biodiesel or other renewable diesel producer, distributor, or importer must retain the certificate of analysis for each batch or production lot of B100 sold or delivered in the state for at least one year. The Oregon Department of Agriculture (ODA) or authorized agents may examine these records as necessary. The ODA or authorized agents may also perform on-site testing or obtain samples of biodiesel or other renewable diesel from any producer, bulk facility, or retail location that sells, distributes, transports, hauls, delivers, or stores biodiesel or other renewable diesel. The related testing cost i s the responsibility of the business providing the sample. (Reference Oregon Revised Statutes 646.923)

Alternative Fuel Vehicle (AFV) Acquisition, Fuel Use, and Emissions Reductions Requirements All state agencies and transit districts must purchase AFVs and use alternative fuels to operate those vehicles to the maximum extent possible, except when it is not economically or logistically possible to purchase or fuel an AFV. Each state agency must develop and report a greenhouse gas reduction baseline and determine annual reduction targets. Reports to the Oregon Department of Administrative Services must include the volume of ethanol and biodiesel used by state agency fleets, as well as any cost savings attributable to driving more fuel-efficient vehicles and using alternative fuels. (Reference Oregon Revised Statutes 283.327 and 267.030, and Executive Order 06-02, 2006)

Last Updated October 2011



### State Incentives

Alternative Fuel Production Tax Credits The Alternative Energy Production Tax Credit Program provides a credit of 15%, up to $1 million per taxpayer, of the net cost of projects related to the production of alternative fuels and the research and development of technology to provide alternative fuels. An eligible applicant must develop or construct an alternative energy production project located in Pennsylvania that has a minimum useful life of four years. Funding is contingent upon annual legislative appropriations. As of October 2011, the program is closed but may reopen in the future. (Reference Title 73 Pennsylvania Statutes

, Chapter 18G, Section 1649.701-1649.711)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Funding The Alternative Fuels Incentive Grant (AFIG) Program provides financial assistance programs; information on alternative fuels, AFVs, HEVs, plug-in hybrid electric vehicles, and anti-idling technologies that use alternatives to diesel fuel for heavy-duty trucks; and advanced vehicle technology research, development, and demonstration. Projects that result in product commercialization and the expansion of Pennsylvania companies are favored in the selection process. As of October 2011, the annual AFIG Program application period is closed.

The AFIG Program also offers Alternative Fuel Vehicle Rebates to assist eligible residents with the incremental cost of the purchase of new AFVs, including electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), natural gas vehicles (NGVs), and propane vehicles. As of October 2011, rebates of $3,500 are available for qualified EVs and PHEVs, and rebates of $1,000 are available for NGVs and propane vehicles.

(Reference Title 73 Pennsylvania Statutes , Chapter 18E, Section 1647.3)

Point of Contact Carmen La Rosa Alternative Fuels Incentive Grant Program Manager Pennsylvania Department of Environmental Protection, Office of Energy and Technology Deployment Phone: (717) 783-9242 Fax: (717) 783-2703 clarosa@state.pa.us

Alternative Fuel Development and Deployment Grants Pennsylvania Energy Development Authority (PEDA) provides grants of up to $1,000,000 for alternative energy projects and research related to deployment projects or manufacturing. PEDA funding is available for projects involving biomass, fuel cells, and clean and alternative fuels for transportation, and may be used for equipment purchases, construction, 

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...contractor expenses, and engineering design necessary for construction or installation. Pure research is not eligible for funding. As of October 2011, the PEDA grant program is closed and no longer accepting applications, but interested applicants may sign up for notifications about the program status via the PEDA website.

Alternative Fuel Project Grants Pennsylvania Energy Harvest Grant seeks to deploy cleaner energy sources by providing funding for alternative energy projects, including those involving clean, alternative fuels for transportation. Projects must address both energy and environmental concerns; projects that are primarily education, outreach, feasibility, assessment, planning, or research and development are not eligible. Eligible applicants include an incorporated 501(c)(3) non-profit organizations that is also registered with the Pennsylvania Bureau of Charitable Organizations; county or municipal government; county conservation district; Council of Governments; a school, school district, college or university; or an incorporated watershed organization recognized by the Pennsylvania Department of Environmental Protection. As of October 2011, this grant program is closed but interested applicants may sign up for notifications about the program status via the Energy Harvest website.



### Laws and Regulations

Renewable Fuels Mandate One year after in-state production has reached 350 million gall ons of cellulosic ethanol and sustained this volume for 3 months, all gasoline sold in Pennsylvania must contain at least 10% cellulosic ethanol. All diesel fuel sold in Pennsylvania must contain at least 2% biodiesel (B2) one year after in-s tate production of biodiesel reaches 40 million gallons. The mandated biodiesel blend level will continue to increase according to the following schedule:

z 5% biodiesel (B5) one year after in-state production of biodiesel reaches 100 million gallons;

z 10% biodiesel (B10) one year after in-state production of biodiesel reaches 200 million gallons; and

z 20% biodiesel (B20) one year after in-state production of biodiesel reaches 400 million gallons.

All biodiesel retailers in Pennsylvania must register with the Pennsylvania Department of Agriculture each year.

(Reference Title 73 Pennsylvania Statutes , Chapter 18H, Sections 1650.3 and 1650.4)

Alternative Fuels Tax Alternative fuels used to propel vehicles of any kind on public highways are taxed at a rate determined on a gasoline gallon equivalent basis. The tax rates are posted in the Pennsylvania Bulletin . (Reference Title 75 Pennsylvania Statutes

, Chapter 90, Section 9004)



### State Incentives

Biodiesel Tax Exemption Biodiesel is exempt from the $0.30 per gallon state motor fuel tax. Biodiesel may be blended with other fuel for use in motor vehicles, but only the biodiesel portion of the blended fuel is tax exempt. Biodiesel is defined as fuel that is derived from vegetable oils or animal fats and conforms to ASTM D6751 specifications for use in diesel engines and results in employment at a manufacturing facility for biodiesel fuel. (Reference Rhode Island General Laws 31-36-1)



### Laws and Regulations

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Acquisition Requirements To reduce fuel consumption and pollution emissions, and purchase vehicles that provide the best value on a lifecycle cost basis, the state must take the following actions:

1. At least 75% of state motor vehicle acquisitions must be AFVs, and the remaining 25% must be HEVs to the greatest extent possible; 2. All new light-duty trucks in the state fleet must achieve a minimum city fuel economy of 19 miles per gallon (mpg) and achieve at least a Low Emission Vehicle certification, and all new passenger vehicles in the state fleet must achieve a minimum city fuel economy of 23 mpg; 3. All state agencies must purchase the most economical, fuel-efficient, and lowest emissions vehicles appropriate to meet any needed requirements and discourage the purchase of sport utility vehicles; 4. All state agencies must purchase low rolling resistance tires with superior tread life for state vehicles when possible; and 5. All state vehicles must be maintained according to manufacturer specifications, including specified tire pressures and ratings.

The state must also prepare an annual report to the governor on compliance with these goals. (Reference Executive Order 05

- 13 , 2005)

Biofuels Promotion The Biofuels Study Commission (Commission) is established to study the feasibility and effectiveness of incentives that 

## Rhode Island 

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...promote the development and use of advanced biofuels in the state, including production credits, feedstock incentives, and direct use consumer credits. The Commission will also ex plore the possibility of entering into an agreement with the states participating in the Regional Greenhouse Gas Initiative to develop and implement a low carbon fuel standard for transportation fuels. The Commission must report results and recommendations to the General Assembly by January 23, 2012, and report at least every two years thereafter. The Co mmission must also continue to make recommendations to the General Assembly as necessary. (Reference House Bill 5390, 2011, and Rhode Island General Laws 31-37.3)

Last Updated September 2011



### State Incentives

Biofuels Retail Incentive Ethanol retailers selling fuel blends of at least 70% ethanol (E70) are eligible for a $0.05 incentive per gallon of ethanol blended fuel sold, provided that the fuel is subject to the South Carolina motor fuel user fee. Additionally, biodiesel retailers are eligible for a $0.25 incentive per gallon of biodiesel (B100) sold as pure biodiesel or as part of a biodiesel blend, provided that the blend contains at least 2% biodiesel (B2). These incentives apply only to fuel sold before July 1, 2012. Biodiesel is defined as a fuel for motor vehicle diesel engines comprised of vegetable oils or animal fats and meeting ASTM specifications D6751 or D975. (Reference South Carolina Code of Laws 12-63-20)

Biofuels Production Tax Credit Qualified corn-based ethanol and soy-based biodiesel producers are eligible for an income tax credit of $0.20 per gallon of fuel produced through 2016. Producers using feedstocks other than corn or soy oil are eligible for $0.30 per gallon tax credit. An eligible production facility must be operating at a production rate of at least 25% of its name plate design capacity and must maintain that production rate for at least six months, before denaturing, on or before December 31, 2011. The credit is allowed for up to 60 months beginning with the first month for which the facility is eligible to receive the credit and ending before December 31, 2016. Beginning January 1, 2017, the credit changes to $0.075 per gallon of fuel produced. The credit may be carried forward for ten years. Additional restrictions apply. (Reference South Carolina Code of Laws 12-6-3600)

Biofuels Distribution Infrastructure Tax Credit A taxpayer that purchases, constructs, or installs, and places into service a qualified commercial facility for distributing or dispensing of biofuels is eligible for an income tax credit of up to 25% of the purchase, construction, and installation costs. Eligible property includes pumps, storage tanks, and related equipment used exclusively for distribution, dispensing, and storing biofuels. A qualified facility must clearly label the equipment used to store or dispense the fuel as being associated with the biofuel. The credit must be taken in three equal annual installments beginning with the taxable year in which the facility is placed into service. Qualifying fuels include blends containing at least 70% ethanol (E70) dispensed at the retail level for use in motor vehicles, and pure ethanol or biodiesel fuel dispensed by a distributor or facility that blends these non-petroleum liquids with gasoline or diesel fuel for use in motor vehicles. (Reference South Carolina Code of Laws 12-6-3610)

Biofuels Production Facility Tax Credit A taxpayer that constructs and places into service a commercial facility for the production of biofuel is eligible for a tax credit of up to 25% of the cost of constructing or renovating a building and equipping the facility. Production of biofuel includes intermediate steps such as milling, crushing, and handling feedstock and the distillation and manufacturing of the final product. The entire credit must be taken in seven equal annual installments beginning with the taxable year in which the facility is placed into service. Qualifying fuels include liquid non-petroleum based fuel that can be placed in motor vehicle fuel tanks and used to operate on-road vehicles, including all forms of fuel commonly or commercially known or sold as biodiesel and ethanol. (Reference South Carolina Code of Laws 12-6-3610)



### Laws and Regulations

Biofuel Blending Capability Requirements and Regulations Fuel retailers that offer gasoline or diesel that is not blended with ethanol or biodiesel must ensure that their fuel is suitable for subsequent blending with biofuels. Retailers must also ensure that gasoline contains additives typically found in a product pre-blended with ethanol. Retailers, however, are not liable for fines, penalties, injuries, or damages resulting from subsequent blending of fuel sold at their locations. Furthermore, no individual or entity can deny a distributor and retailer from blending biofuels for sale in Sout h Carolina, as long as the individual or entity is registered with the U.S. Internal Revenue Service. (Reference South Carolina Code of Laws 39-41-235)

Biodiesel Blend Distribution Mandate All state-owned diesel fueling facilities must provide fuel containing at least 5% biodiesel (B5) at all diesel pumps. (Reference South Carolina Code of Laws 12-63-30)

State Agency Preference for Alternative Fuel and Advanced Vehicles State agencies purchasing motor vehicles must give preference to hybrid, plug-in hybrid electric, biodiesel, hydrogen, fuel cell, or flexible fuel vehicles when the performance, quality, and anticipated lifecycle costs are comparable to other 

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...available motor vehicles. (Reference South Carolina Code of Laws 1-11-310)

State Agency Alternative Fuel Use Requirement Whenever practical and economically feasible, all state agenci es operating alternative fuel vehicles must use alternative fuels in those vehicles. Private businesses are encouraged to increase the use of alternative fuels in the state. (Reference Executive Order 2001-35)

Biodiesel Use in School Buses The South Carolina Department of Education must fuel state school bus fleets with biodiesel when feasible. (Reference South Carolina Code of Laws 59-67-585)

Alternative Fuel Tax Alternative fuels and blended fuels are exempt from the state sales and use tax. These fuels are, however, subject to a state fuels user fee of $0.16 per gallon. Alternative fuels include liquefied petroleum gas (propane) and compressed natural gas. Blended fuels are defined as mixtures composed of gasoline or diesel fuel and another liquid, other than products such as carburetor detergent or oxidation inhibitor, that can be used as a fuel to operate a highway vehicle. (Reference South Carolina Code of Laws 12-28-110, 12-28-310, and 12-36-2120(15))

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### State Incentives

Biodiesel Blend Tax Credit Licensed biodiesel blenders are eligible for a tax credit for special fuel, including diesel, blended with biodiesel to create a biodiesel blend. The tax credit is granted on a per gallon basis in the amount that the rate for special fuel exceeds the rate for the biodiesel blend. The purpose of the credit is to offset any tax liability resulting from the blending of previousl y untaxed biodiesel. (Reference South Dakota Statutes 10-47B-121.1)

Tax Refund for Methanol Used in Biodiesel Production A licensed biodiesel producer may apply for and obtain a tax refund for state fuel taxes paid on methanol used to produce biodiesel. (Reference South Dakota Statutes 10-47B-120.1)



### Laws and Regulations

Biofuels Production Protection The South Dakota Legislature urges the U.S. Congress and federal agencies to resist implementing indirect land use change provisions that may unfairly impact biofuels production in the United States. (Reference House Concurrent Resolution 1016, 2010)

Biodiesel Fuel Use The South Dakota Department of Transportation and employees using state diesel vehicles must stock and use fuel blends containing a minimum of 2% biodiesel (B2) that meet s or exceeds the most current ASTM specification D6751, so long as it is available and financially prudent to do so. (Reference Executive Order 2006-01)

Fuel Quality Standards The South Dakota Department of Public Safety may promulgate rules establishing:

z Standards for the maximum volume percentages of ethanol and methanol in alcohol blended fuels;

z A program and prescribed methods for the inspection and testing of alcohol blended fuels, petroleum products,

biodiesel, and biodiesel blends;

z Labeling requirements for devices dispensing alcohol blended fuels, biodiesel, and biodiesel blends;

z Standards setting the specifications and tolerance requirements for petroleum products, biodiesel, and biodiesel

blends; and

z Regulations for filtering systems used on devices dispensing alcohol blended fuels.

All rules must conform to appropriate ASTM standards. (Reference South Dakota Statutes 37-2-6)

Biodiesel Tax Biodiesel and biodiesel blends are taxed at the motor fuel excise tax rate of $0.22 per gallon. Beginning the fiscal quarter after which a biodiesel production facility in the state reaches a name plate capacity of at least 20 million gallons per year and fully produces at least 10 million gallons of biodiesel within one year, the tax on biodiesel and biodiesel blends is reduced to $0.20 per gallon. Biodiesel is defined as a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats. Biodiesel must meet the requirements of ASTM specification D6751 and the 

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...U.S. Environmental Protection Agency registration and heal th effects testing program, as it read January 1, 2008. Biodiesel blends are defined as blended special fuel containing a minimum of 5% biodiesel (B5). (Reference South Dakota Statutes 10-47B-3 through 10-47B-10)

Biofuel Franchising Contract Regulations Franchise documents may not restrict a franchisee from any of the following activities:

z Installing a biofuel pump or tank, except property leased from the franchisor;

z Converting an existing tank or pump for biofuels use;

z Advertising the sale of biofuels, including listing biofuel availability or prices on signage;

z Selling biofuels;

z Purchasing biofuel from other sources if the franchisor does not offer biofuel;

z Installing or operating an ethanol blender pump, if the pump is approved for use by the appropriate jurisdictional

authority; or

z Selling a biofuel in place of one grade of gasoline, if the franchisee is required to sell three grades of gasoline.

Biofuels include biodiesel, biodiesel blends, ethanol, or ethanol blends. (Reference South Dakota Statutes 37-2-34, 37-2- 35, and 37-2-37)

Last Updated June 2011



### State Incentives

Biofuel Fueling Infrastructure Grants The Tennessee Department of Transportation (TDOT) engages in public-private partnerships with transportation fuel providers to install biofuel fueling facilities. Fueling facilities include storage tanks and fuel pumps dedicated to dispensin g E85 and biodiesel blends of 20% (B20). TDOT administers the Biofuel Green Island Corridor Grant Project (Project) to provide financial assistance for purchasing, preparing, and installing fuel storage tanks and fuel pumps for biofuels at private sector fuel stations. The goal of the Project is to help establish biofuel stations within 100 miles of each other along Tennessee's interstate system and major highways. (Reference Tennessee Code 54-1-136 and Executive Order 33, 2006)

Point of Contact Linda Tidwell Air Quality Projects Coordinator Tennessee Department of Transportation Phone: (615) 253-2860 Fax: (615) 532-8451 linda.tidwell@tn.gov http://www.tdot.state.tn.us/biofuel/application.htm

Biofuel Innovations Grants The Tennessee Department of Environment and Conservation administers a grant program to support local government and public university use of E85 and biodiesel blends of at least 20% (B20). Eligible projects include incremental fuel costs; engine maintenance; conversion or installation of infrastructure; and promotional materials.

Point of Contact Greg Riggs Grant Coordinator Tennessee Department of Environment and Conservation Phone: (615) 532-0567 greg.riggs@state.tn.us

Alternative Fuel Infrastructure Development Program The Tennessee Department of Environment and Conservation provides funding for alternative fueling infrastructure improvements through the FastTrack Infrastructure Development Program . Private sector businesses may use funds to locate or expand fueling infrastructure in the state and to create or retain jobs for Tennesseans. Other restrictions may apply.

Biodiesel Production Incentive The Tennessee Department of Revenue administers the biodiesel manufacturers' incentive fund, which provides Tennessee biodiesel producers with payments for biodiesel fuel produced and sold to Tennessee distributors. Each manufacturer may receive incentives for up to 10 million gallons of biodiesel produced annually. This incentive is available through June 30, 2013, and funding must be appropriated each year. (Reference Tennessee Code 67-3-103 and 67-3-423)



### Laws and Regulations

Biofuel Blending Contract Regulation 

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...Any provision in a contract between a fuel wholesaler and a refiner or supplier that limits or restricts the wholesaler's ability to blend petroleum products with ethanol or biodiesel is null and void. This regulation applies to contracts executed or renewed on or after January 1, 2010. (Reference Tennessee Code 47-25-2004)

Supply of Petroleum Products for Blending with Biofuels Petroleum product refiners and suppliers must make all grades of gasoline and diesel fuel available to any wholesaler in a condition that allows for the fuel to be blended with ethanol or other biobased products and sold in Tennessee. In addition, gasoline products must be available with detergent additives in sufficient concentrations such that after the addition of ethanol, the final product meets or exceeds the lowest additive concentrations that the U.S. Environmental Protection Agency requires. (Reference Tennessee Code 47-25-20)

Biodiesel and Ethanol Definitions and Retail Requirements Biodiesel blend stock must be at least 99% biodiesel (no more than 1% diesel fuel) and meet ASTM specification D6751. Biodiesel blends must meet ASTM specification D975. Biodiese l blends made available for public use at a retail location may not exceed 20% biodiesel (B20), and biodiesel blends containing more than 5% biodiesel (B5) must be labeled as a biodiesel blend at the pump.

Ethanol is defined as nominally anhydrous ethyl alcoho l meeting ASTM specification D4806. Ethanol blends made available for public use at a retail location must be labeled accordingly (e.g., E85).

(Reference Rules of the Tennessee Department of Agriculture 0080-5-12-.01, 0080-5-12-.02, and 0080-5-12-.03)

Alternative Fuel and Fuel-Efficient Vehicle Acquisition and Use Requirements The Tennessee Department of General Services must ensure that at least 25% of newly purchased passenger motor vehicles procured for use in areas designated as ozone nonattainment areas are hybrid electric vehicles (HEVs), provided that such vehicles are available at the time of procurement. If HEVs are not available, conventional gasoline vehicles achieving an average fuel economy of at least 25 miles per gallon (mpg) may satisfy the requirement. In areas not designated as ozone nonattainment areas, at least 25% of newly purchased passenger motor vehicles must be either HEVs or conventional gasoline vehicles achieving an average fuel economy of at least 25 mpg.

State fleets must make every effort to achieve the goal that 100% of newly purchased motor vehicles are energyefficient vehicles. Energy-efficient vehicles are defined as pa ssenger vehicles that are alternative fuel vehicles using alternative fuels, as defined by the Energy Policy Act of 19 92; HEVs; conventional gasoline vehicles achieving an average fuel economy of at least 25 mpg; or vehicles powered by ultra-low sulfur diesel achieving an average fuel economy of at least 30 mpg. Additionally, state agencies should strive to use ethanol and biodiesel in appropriate state-owned vehicles whenever possible and should support the development of biofuels fueling infrastructure.

(Reference Tennessee Code 4-3-1109 and Executive Order 33, 2006)

Provision for Establishing an Alternative Fuel Research and Development Program The Tennessee Department of Agriculture may develop and implement an alternative fuel research program to stimulate public and private research in fuel-related conversion technology. This research should address converting Tennessee agricultural products, such as soybeans, switchgrass, and other biomass, into alternative fuels, as well as the production capabilities needed to deliver such alternative fuels to consumers. (Reference Tennessee Code 54-1-136)

Biofuel Quality Specifications The Tennessee Department of Agriculture may inspect and test biofuels under the Kerosene and Motor Fuels Quality Inspection Act of 1989. (Reference Tennessee Code 47-18-1306 and 54-1-136)



### State Incentives

Alternative Fuel Vehicle (AFV) Grants - Houston - Galveston, TX The Houston-Galveston Area Council provides Congestion Mitigation and Air Quality (CMAQ) program grants through the Greater Houston Clean Cities Coalition for 33% of the cost of a new original equipment manufacturer clean fuel vehicle, 75% of the cost of a clean fuel vehicle conversion/repower, or 50% of eligible equipment and installation costs toestablish publicly-accessible alternative fueling infrastructure. This grant is for public and private entities in the eightcounty Houston-Galveston nonattainment area. For more information, contact Kelli Angelone (713-993-2444) at the Greater Houston Clean Cities Coalition

.

Clean Vehicle and Infrastructure Grants The Texas Commission on Environmental Quality administers the Emissions Reduction Incentive Grants (ERIG) Program

, part of the Texas Emissions Reduction Plan, which provides grants for various types of clean air projects to improve air quality in the state's nonattainment areas. Eligible projects include those that involve heavy-duty vehicle replacement, retrofit, or repower; alternative fuel dispensing infrastructure; idle reduction and electrification infrastructure; and alternative fuel use. As of July 2011, the latest ERIG application period has closed. (Reference Texas Statutes , Health and 

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...Safety Code 386)

Alternative Fuel and Advanced Vehicle Research and Development Grants The Texas Council on Environmental Quality administers the New Technology Research and Development (NTRD) Program , part of the Texas Emissions Reduction Plan, which provides grants for alternative fuel and advanced technology demonstration and infrastructure projects to encourage and support research, development, and commercialization of technologies that reduce pollution. As of July 2011, the la test NTRD grant application period has closed. (Reference Texas Statutes , Health and Safety Code 387)

Clean School Bus Program - North Central TX The North Central Texas Council of Governments administers the North Central Texas Clean School Bus Program, which is a fuel- and technology-neutral program. The Clean School Bus Program serves as a clearinghouse for information on technology, legislation, best practices for school bus operators, and clean school bus funding opportunities. The Clean School Bus Program aims to reduce emissions from school bus fleets by encouraging and assisting in the expedited purchase of clean school buses as well as the adoption and enforcement of idle reduction policies. In addition, the Clean School Bus Program seeks to gather community resources to assist schools, school districts, and school bus operators in improving air quality and protecting the health of school-aged children. For more information, see the North Central Texas Clean School Bus Program website or contact Amanda Brimmer (817-608-2353) at North Central Texas Council of Governments.

Diesel Fuel Blend Tax Exemption The biodiesel or ethanol portion of blended fuel containing taxable diesel is exempt from the diesel fuel tax. The biodiesel or ethanol fuel blend must be clearly identified on the retail pump, storage tank, and sales invoice in order to be eligible for the exemption. (Reference Texas Statutes , Tax Code 162.204)



### Laws and Regulations

Alternative Fuel Use and Vehicle Acquisition Requirements State agency fleets with more than 15 vehicles, excluding emergency and law enforcement vehicles, may not purchase or lease a motor vehicle unless the vehicle uses compressed or liquefied natural gas, propane, ethanol or fuel blends of at least 85% ethanol (E85), methanol or fuel blends of at leas t 85% methanol (M85), biodiesel or fuel blends of at least 20% biodiesel (B20), or electricity including plug-in hybrid electric vehicles. Waivers may be granted for fleets under the following circumstances: 1) the fleet will operate primarily in areas where neither the state agency or a supplier can reasonably be expected to establish adequate fueling infrastructure for these fuels, or 2) the agency is unable to obtain equipment or fueling facilities necessary to operate alternative fuel vehicles at a cost that is no greater than the net costs of using conventional fuels.

Covered state agency fleets must consist of at least 50% of vehicles that are able to operate on alternative fuels and use these fuels at least 80% of the time the vehicles are driven. Covered state agencies may meet these requirements through the purchase of new vehicles or the conversion of existing vehicles. State agencies that purchase passenger vehicles or other ground transportation vehicles for general use must ensure that at least 25% of the vehicles purchased during any state fiscal biennium, other than exempted vehicles, meet or exceed federal Tier II, Bin 3 emissions standards.

(Reference Texas Statutes , Government Code 2158.004-2158.009)

Renewable Fuel Promotion The Texas Bioenergy Policy Council and the Texas Bioenergy Research Committee were established to promote the goal of making biofuels a significant part of the energy industry in Texas by January 1, 2019. The Policy Council is tasked with the following: 1) provide a vision for unifying the state's agricultural, energy, and research strengths in a successful launch of a cellulosic biofuel and bioenergy industry; 2) foster development of cellulosic and bio-based fuels; 3) pursue the creation of a next-generation biofuels energy research program at a university in the state; 4) pursue federal and other funding to position the state as a bioenergy leader; 5) study the feasibility and economic development effect of a blending requirement for biodiesel or cellulosic fuels; 6) pursue the development and use of thermochemical process technologies to produce alternative chemical feedstocks; and 7) study the feasibility of the requirements for renewable natural gas. (Reference Texas Statutes , Agriculture Code 50D)



### Laws and Regulations

Provision for Establishment of Alternative Fuel Use Mandate The Utah Air Quality Board may require fleets that own 10 or more vehicles that are capable of being fueled at a central location to use clean fuels, if such a mandate is necessary to meet national air quality standards. Clean fuels are defined as propane, compressed natural gas, and electricity. Additional restrictions apply. (Reference Utah Code 19-2-105.3) 

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### Laws and Regulations

Alternative Fuel Vehicle (AFV) Acquisition Requirements The Vermont Department of Buildings and General Services must consider AFVs when purchasing vehicles for state use, provided that the alternative fuel is suitable for the vehicle's operation, is available in the region where the vehicle will b e used, and is competitively priced with conventional fuels. (Reference Vermont Statutes Title 29, Chapter 49, Section 903)

Alternative Fuel Vehicle (AFV) Promotion The Vermont Climate Cabinet is responsible for, among other duties, identifying strategies to reduce Vermont's greenhouse gas emissions and dependence on fossil fuel for transportation by encouraging AFVs and more efficient vehicle and mobility choices. (Reference Executive Order 05-11, 2011)

State Agency Energy Plan Transportation Requirements The Vermont Agency of Administration developed and oversees the implementation of the State Agency Energy Plan (Plan). The Agency of Administration must modify the Plan as necessary and re-adopt it on or before January 15 of each fifth year. As specified in the 2010 Plan , the Vermont Agency of Transportation must continue to use 5% biodiesel (B5) in its fleet of heavy-duty vehicles. The Vermont Department of Buildings and General Services must continue to use hybrid electric vehicles and Partial Zero Emission Vehicles in its fleet, while adjusting purchases based on annual fleet selection monitoring and available vehicle technology. All state agencies must investigate the use of additional alternative fuel and advanced technology vehicles, as well as the necessary fueling infrastructure, such as incorporating electric vehicle supply equipment at appropriate state facilities.

The Plan specifies the responsibilities of the Climate Neutral Working Group (Working Group). All state government agencies, offices, and departments must purchase the most fuel-efficient vehicles available in each vehicle class according to specifications set by the Working Group. The Working Group must consider vehicles that meet high fuel economy standards and emit reduced levels of greenhouse gases, criteria pollutants, and hazardous air contaminants. Additionally, the Working Group must expand education and tracking related to anti-idling campaigns for state fleet vehicles and private sector vehicles operating on state owned property, and conduct a survey to determine the level of government employee participating in carpooling, vanpooling, and other commuting options.

(Reference Vermont Statutes Title 3, Chapter 45, Section 2291, and Executive Order 14-03, 2003)



### State Incentives

Biodiesel Production Tax Credit Qualified biodiesel and green diesel producers are eligible for a tax credit of $0.01 per gallon of biodiesel or green diesel fuels produced. This credit is available for producers who generate up to two million gallons of biodiesel or green diesel fuel per year. The annual credit may not exceed $5,000, and producers are only eligible for the credit for the first three years of production. The Virginia Department of Mines, Minerals and Energy must certify qualified producers. (Reference Virginia Code 58.1-439.12:02)

Biofuels Production Grants The Biofuels Production Incentive Grant Program provides grants to producers of advanced biofuels, specifically fuels derived from any cellulose, hemicellulose, or lignin from renewable biomass or algae. A qualified advanced biofuelsproducer is eligible for a grant of $0.125 for each gallon of neat (100%) advanced biofuel sold. A producer of nonadvanced biofuels, including biodiesel, green diesel, and ethanol fuel, is eligible for a grant of $0.10 per gallon of neat biofuel sold in the commonwealth. To qualify, a producer must have begun selling neat biofuels on or after January 1, 2008, and must have produced at least one million gallons of neat biofuels before September 30, 2011. If a producer began selling neat biofuels before January 1, 2008, the producer is only eligible for a grant if its production of neat biofuels for the given calendar year exceeds its production in the 2007 calendar year by at least one million gallons and, in future years, continues to meet or exceed that amount. Each producer is only eligible for six calendar years of grants. This program expires June 30, 2017. (Reference Virginia Code 45.1-393 and 45.1-394)

Alternative Fuels Grants and Loans The Alternative Fuels Revolving Fund is used to distribute loans and grants to municipal, county, and commonwealth government agencies to support alternative fuel vehicle (AFV) programs; pay for AFV maintenance, operation, evaluation, or testing; pay for vehicle conversions; or improv e alternative fuel infrastructure. Eligible alternative fuels include electricity, hydrogen, and natural gas. Projects with a funding match are given priority in the evaluation process. (Reference Virginia Code 33.1-223.4 and 33.1-223.7)

Alternative Fuel Job Creation Tax Credit Businesses involved in alternative fuel vehicle (AFV) an d component manufacturing, alternative fueling equipment component manufacturing, AFV conversions, and advanced biofuels production are eligible for a job creation tax credit of up to $700 per full-time employee. The credit is allowed in the taxable year in which the job is created and in each of the 

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...two succeeding years in which the job is continued. Qualified AFVs include vehicles that operate using natural gas, propane, hydrogen, electricity, or advanced biofuels. This credit is effective for taxable years through December 31, 2014. (Reference Virginia Code 58.1-439.1)

Green Jobs Tax Credit Qualified employers are eligible for a $500 tax credit for each new green job created that offers a salary of at least $50,000, for up to 350 jobs per employer. The credit is allowed for the first five years that the job is continuously filled. For the purposes of this tax credit, a green job is defined as employment in industries relating to renewable or alternative energy, including hydrogen and fuel cell technology, landfill gas, and biofuels. The tax credit expires on January 1, 2015. (Reference Virginia Code 58.1-439.12:05)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans The Virginia Board of Education may use funding from the Literary Fund to provide loans to school boards that convert school buses to operate on alternative fuels or construct alternative fueling stations. (Reference Virginia Code 22.1-146)

Biofuel Feedstock Registration Exemption Individuals that transport waste kitchen grease for conversion to biofuel are exempt from Virginia Department of Health registration and the associated annual a pplication fee of $100 per vehicle. This exemption only applies if the individual transports the waste kitchen grease in a container with a ca pacity of less than 275 gallons; and possesses no more than 1,320 gallons of waste kitchen grease, biofuel feedstock de rived from kitchen grease, or biofuel at any one time, excluding biofuel contained in vehicle fuel tanks. Other restrictions apply. (Reference Virginia Code 3.2-5508 through 3.2- 5516)



### Laws and Regulations

Alternative Fuel Vehicle (AFV) Fund The AFV Conversion Fund (Fund) is created to assist commonwealth agencies with the incremental cost of commonwealth-owned AFVs, both original equipment manufacturer vehicles and aftermarket conversions. Funding may be used in conjunction with or as matching funds for any eligible federal grants for the same purpose. The Virginia Department of General Services and the Department of Mines, Minerals and Energy must establish guidelines for contributions and reimbursements from the Fund for the purchase or conversion of commonwealth-owned vehicles. The Fund will include appropriations from the Virginia General Assembly as well as donations, grants, in-kind contributions, and other funding. (Reference (Reference Senate Bill 485, 2012, and Virginia Code 2.2-1176.1)

Alternative Fuel Public-Private Partnerships The Virginia Offices of the Secretary of Administration and the Secretary of Natural Resources released a public

- private partnership solicitation outlining their interest in forming partnershi ps with and among alternative fuel providers, infrastructure developers, vehicle manufacturers, and other al ternative fuel industry stakeholders to expand fueling infrastructure and to support alternative fuel use in the commonwealth fleet. By May 2012, the Virginia Department of General Services and the Department of Mines, Minerals, and Energy must make a recommendation on whether the commonwealth should establish more formal public-private partnership agreements to accomplish the overall goal of transitioning commonwealth vehicles to alternative fuels. (Reference Executive Order 36, 2011)

Alternative Fuel and Fuel-Efficient Vehicle Acquisition PlanVirginia Department of General Services (DGS) policies and procedures must include guidelines for the purchase of fuelefficient, low emissions, commonwealth-owned vehicles, as well as guidelines for leasing vehicles that give a preference to compact, fuel-efficient, and low emissions vehicles. By January 1, 2012, DGS was required to establish a plan to replace commonwealth-owned or operated vehicles with vehicles that operate using natural gas, electricity, or other alternative fuels, to the greatest extent reasonable, considering available infrastructure, vehicle location and use, capital and operating costs, and potential for fuel savings. All commonwealth agencies and institutions must cooperate with DGS in developing and implementing the plan. (Reference Virginia Code 2.2-1176 and Executive Order 19, 2010)

Biodiesel and Green Diesel Fuel Use Requirement Commonwealth agencies and institutions must procure only diesel fuel containing at least 2% biodiesel (B2) or green diesel fuel for use in on-road diesel internal combustion engines; this requirement does not apply if supply is not readily available or the cost of the fuel exceeds the cost of conventional diesel by 5% or more. The Virginia Department of General Services must establish conditions under which commonwealth agencies and institutions may procure these blended fuels, taking into consideration the availability of the fuel and cost of biodiesel compared to diesel fuel. (Reference Virginia Code 2.2-1111 and Executive Order 19, 2010)

Biofuels and Green Diesel Definitions Advanced biofuels are defined as fuels derived from any cellulose, hemicellulose, or lignin from renewable biomass or algae. Biofuels are defined as neat biodiesel, green diesel, or ethanol fuels that are not blended with a conventional fuel such as gasoline or diesel. Biodiesel is defined as a fuel composed of mono-alkyl esters of long-chain fatty acids derived from vegetable oils or animal fats that is designated B100 and meets the requirements of ASTM D6751. Green diesel is a fuel produced from non-fossil renewable resources, including ag ricultural or silvicultural plants; animal fats; residue and waste generated from the production, processing, and marketing of agricultural products, silvicultural products; and other renewable resources; that meets applicable ASTM specifications. Ethanol is defined as denatured alcohol fuel that is derived from agricultural products or other renewable resources and meets applicable ASTM standards. (Reference 

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Alternative Fuels and Electric Vehicle (EV) Tax Liquid alternative fuels used to operate on-road vehicles ar e taxed at a rate of $0.175 per gallon. EVs registered in Virginia are subject to a $50.00 per vehicle annual license tax. (Reference House Bill 1248, 2012, and Virginia Code 58.1- 2249)



### State Incentives

Alternative Fuel Loans and Grants The Washington Department of Commerce administers the Energy Freedom Program (Program) in consultation with other state agencies. The Program includes the Energy Freedom Acco unt, which provides financial and technical assistance for bioenergy production, research, and market development, primarily in the form of loans used to convert farm products, organic wastes, cellulose and biogas into electricity, biofuel, and related co-products. The Program also includes the Green Energy Incentive Account, which provides financial assistance for alternative fueling infrastructure along interstate corridors. As of April 2012, no new funds have been appropriated for these accounts, which are set to expire after June 30, 2016. (Reference Revised Code of Washington 43.325)

Point of Contact Peter Moulton Senior Energy Policy Specialist - Bioenergy Coordinator Washington Department of Commerce Phone: (360) 725-3116 peter.moulton@commerce.wa.gov

Biofuels Distribution Tax Exemption Fuel delivery vehicles, machinery, equipment, and related services that are used for the retail sale or distribution of biodiesel blends of 20% biodiesel (B20) or greater or E85 moto r fuel are exempt from state retail fuel sales and use taxes until July 1, 2015. (Reference Revised Code of Washington 82.08.955 and 82.12.955)

Biofuels Tax Deduction A business and occupation tax deduction is available for the sale or distribution of biodiesel or E85 motor fuel. This deduction is available until July 1, 2015. (Reference Revised Code of Washington 82.04.4334)

Biofuels Production Tax Exemption Qualifying buildings, equipment, and land used in the manufacturing of alcohol fuel, biodiesel, or biodiesel feedstocks, or the operation of an anaerobic digester, are exempt from state and local property and leasehold excise taxes for a period of six years from the date the facility or addition to the existing facility becomes operational. This incentive expires after December 31, 2015, except for the credit for anaerobic digesters, which expires December 31, 2012. (Reference Revised Code of Washington 82.29A.135 and 84.36.635)

Biodiesel Feedstock Tax Exemption Waste vegetable oil, specifically cooking oil gathered from restaurants or commercial food processors, an individual uses to produce biodiesel for personal use is exempt from state sales and use taxes. (Reference Revised Code of Washington 82.08.0205 and 82.12.0205)



### Utility/Private Incentives

Clean and Efficient Fleet Assistance The Western Washington Clean Cities Coalition, in partnership with the Puget Sound Clean Air Agency, offers the Evergreen Fleets program, a comprehensive greening plan and certification system for fleets. Evergreen Fleets provides fleet managers with tools to help "green" public and private fleets, reduce pollution, and save money. Evergreen Fleets provides a step-by-step guide to identify the most effective way for fleet managers to green their fleets, including buying greener vehicles, switching to cleaner fuels, or improving fleet efficiency.

Point of Contact Stephanie Meyn Clean Cities Coordinator Western Washington Clean Cities Coalition Phone: (206) 689-4055 Fax: (206) 343-7522 stephaniem@pscleanair.org http://www.wwcleancities.org/ 

## Washington 

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...Biofuel Volume Rebate Program - Propel Fuels Propel Fuels offers a rebate to qualified fleet customers for monthly purchases of more than 500 gallons of biodiesel blends and E85. Fleet customers must purchase the fuel directly from Propel public retail locations using the Propel CleanDrive Wright Express fl eet card. The program offers a rebate of $0.03 per gallon for purchases of less than 1,000 gallons of biofuel per month, and $.05 per gallon for purchases of 1,000 gallons or more per month. The rebate is applied at the end of each monthly billing cycle.

Point of Contact Jake Millan Fleet Sales Manager Propel Fuels Inc. Phone: (206) 409-5606 jake@propelfuels.com



### Laws and Regulations

Climate Change Mitigation Initiative - King County, WA As directed by local Executive Orders and the King County Acting Locally Initiative, King County departments must increase their use of "green" power and biodiesel. At least 50% of King County's total energy use must be generated from renewable energy sources by 2012 for non-transit uses and 2020 for transit uses. Additionally, biodiesel blends used in the county's vehicles must increase from 5% biodiesel (B5) to 20% biodiesel (B20) such that the county uses 2.5 million gallons of biofuels annually. For more information, see the King County Executive Press Release and the 2010 King County Energy Plan

.

Renewable Fuel Standard At least 2% of all diesel fuel sold in Washington must be biodiesel or renewable diesel. This requirement will increase to5%, 180 days after the Washington State Department of Agriculture (WSDA) determines that in-state feedstocks and oilseed crushing capacity can meet a 3% requirement. Renewable diesel is defined as a diesel fuel substitute produced from non-petroleum renewable sources, including vegetable oils and animal fats, meets the federal registration requirements for fuels and fuel additives and ASTM specification D975.

Additionally, at least 2% of the total gasoline sold in the state must be denatured ethanol. The ethanol requirement may be increased if the Washington Department of Ecology determines that this increase would not jeopardize continued attainment of federal Clean Air Act standards and WSDA determines that the state can economically support the production of higher ethanol blends.

All state agencies with jurisdiction over renewable fuel infrastructure, specifically storage, blending, and dispensing equipment, are required to expedite related application and permitting processes. The governor may suspend these requirements by Executive Order if the standard is temporarily technically or economically infeasible, or poses a significant risk to public safety.

(Reference Revised Code of Washington 19.112.010 and 19.112.110 through 19.112.180)

Provision for Alternative Fuels Corridor Pilot Projects The Washington Department of Transportation may enter into partnership agreements with other public and private entities to use land for alternative fuel corridor pilot projects. Minimum requirements apply and these agreements are subject to funding availability. (Reference Revised Code of Washington 47.38.070)

Biofuel Quality Program The Washington State Department of Agriculture (WSDA) Biofuels Quality Program tests and assesses biofuel quality and quantity to resolve any quality issues before the product reaches the consumer. WSDA is currently sampling biofuel throughout the state on a quarterly basis, monitoring and tracking the quality of biofuel, and working with producers and manufacturers to help supply the highest biofuel quality fuel available to consumers. The goal of the program is to create equity in the biofuel marketplace for refiners, suppliers, distributors, and retailers, and protect consumers. (Reference Revised Code of Washington 19.112)

Biodiesel Definition Biodiesel fuel is defined as a mono alkyl ester of long chain fatty acids derived from vegetable oils or animal fats for use in compression-ignition engines and meets the requirements of the ASTM specification D6751 in effect as of January 1, 2003. (Reference Revised Code of Washington 19.112.010 and 82.04.4334)

Biodiesel Use Requirement At least 20% of all diesel fuel used to fuel state agency vehicles, vessels, and construction equipment must be biodiesel. The Washington Department of Enterprise Development must assist state agencies by coordinating the purchase and delivery of biodiesel if requested, using long-term contracts if necessary, to secure a sufficient and stable supply of biodiesel. For state agencies complying with the U.S. Environmental Protection Agency's ultra-low sulfur diesel (ULSD) mandate, at least 2% biodiesel (B2) must be used as an additive to ULSD for lubricity, provided that the use of a lubricity additive is appropriate and that performance and cost are comparable with other available lubricity additives. (Reference House Bill 2190, 2012, and Revised Code of Washington 43.19.642 and 43.19.646) 

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...Alternative Fuel Use Requirement Effective June 1, 2015, all state agencies must use 100% biofue ls or electricity to operate all publicly owned vehicles. To phase in this requirement, all state agencies must achieve 40% biofuel or electricity use by June 1, 2013. In addition, effective June 1, 2018, all local government agencies must use 100% biofuels or electricity to operate all publically owned vehicles. Transit agencies using compressed natural gas (CNG) are exempt from this requirement. To allow the motor vehicle fuel needs of state and local government to be satisfied by Washington-produced biofuels, the Washington Department of Enterprise Services and local governments may contract in advance and execute contracts with public or private producers and suppliers for the purchase of appropriate biofuels. Government agencies may substitute CNG, liquefied natural gas, or propane in vehicles if the Washington Department of Commerce determines that biofuels and electricity are not reasonably available. (Reference House Bill 2545, 2012, and Revised Code of Washington 43.19.647 through 43.19.648)

State Vehicle Purchasing Guidance The Washington Department of Enterprise Services must develop guidelines and criteria for the purchase of high mileage gasoline vehicles, as well as alternative fuel vehicles and systems that reduce the overall costs and energy use in the state. The guidance should include investigations into all opportunities to aggregate the purchasing of clean technologies with state and local governments, as well as federal fuel economy standards. (Reference House Bill 2452, 2012)



### State Incentives

Alternative Fuel School Bus Incentive Any county that uses alternative fuel for the operation of any portion of its school bus fleet is eligible for a 10% reimbursement from the West Virginia Department of Educatio n to help offset the cost of maintenance, operation, and other costs incurred from using the alternatively fueled school buses. Any county qualifying for this allowance must submit a plan that includes the future use of the alternatively fueled school buses to the Department of Education. Acceptable alternative fuels include compressed natural gas. (Reference West Virginia Code 18-9A-7)

Point of Contact Benjamin Shew Executive Director West Virginia Department of Education, Office of School Transportation Phone: (304) 558-2711 Fax: (304) 558-8867 bshew@access.k12.wv.us



### Laws and Regulations

Alternative Fuel Production Subsidy Prohibition Incentives or subsidies from political subdivisions for the production of alternative fuels are prohibited by law, with exceptions for certain coal-based liquid fuels. (Reference West Virginia Code 8-27A-3 and 11-13D-3D)

Provision for Establishment of Alternative Fuel Vehicle (AFV) Acquisition Requirements The West Virginia Department of Administ ration may require that up to 75% of a state agency's fleet consist of AFVs. To meet these requirements, agencies may purchase or lease AFVs , or convert existing vehicles to operate using alternative fuels. The Department of Administration may waive this requirement if an agency's vehicles are operating in an area where the agency cannot reasonably establish a central alternative fueling station or the lifetime cost of the vehicle or fueling infrastructure is significantly higher as compared to conventional vehicles or fuels. In addition, this requirement does not apply to law enforcement, emergency, public transit authority, state rail authority, non-road vehicles, or school buses. (Reference West Virginia Code 5A-2A-1 and 5A-2A-2)



### State Incentives

Renewable Fuel Infrastructure Tax Credit A tax credit is available for 25% of the cost to install or retrofit fueling pumps that dispense gasoline fuel blends of at least 85% ethanol or diesel fuel blends of at least 20% biod iesel fuel, or that mix fuel from separate storage tanks and allow the user to select the percentage of renewable fuel. The maximum credit amount is $5,000 per taxable year for each fueling station that has installed or retrofitted a pump. The credit must be claimed within four years of the tax return. The credit expires December 31, 2017. (Reference Wisconsin Statutes 71.07 (5j), 71.21(4), 71.26(2)(a), 71.34 (1)(g), 71.45(2)(a)10, 77.92(4), 71.28(5j), 71.30(3)(ed), 71.47(5j), and 71.49(1)(ds))

Alternative Fuel Tax Exemption 

## West Virginia

Wisconsin 

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...AFDC Home | EERE Home | U.S. Department of Energy Webmaster | Web Site Policies | Security & Privacy | AFDC Disclaimer | USA.gov Content Last Updated: 06/15/2011 No county, city, village, town, or other political subdivision is allowed to levy or collect any excise, license, privilege, or occupational tax on motor vehicle fuel or alternative fuels, or on the purchase, sale, handling, or consumption of motor vehicle fuel or alternative fuels. (Reference Wisconsin Statutes 78.82)

Biodiesel Fuel Use Incentive The Wisconsin Department of Public Instruction (DPI) may provide financial aid to school districts that use biodiesel fuel to operate school buses to cover the incremental cost of purchasing biodiesel as compared to the cost of petroleum diesel fuel. If, in any fiscal year, insufficient funds are available to provide school districts with the full amount of reimbursement for which a school district qualifies, DPI will prorate the available funds among the entitled school districts on a per pupil basis. (Reference Wisconsin Statutes 121.575)



### Laws and Regulations

Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements The Wisconsin Department of Administration (DOA) encourages state employees operating state-owned or leased motor vehicles to use hybrid electric vehicles or vehicles that operate on gasohol (a motor fuel containing at least 10% alcohol) or alternative fuels whenever feasible and cost effective. Th e DOA must place a list of gasohol and alternative fuel station locations in each state-owned or state-leased motor vehicle for driver reference. The DOA also encourages Wisconsin residents and state employees who use personal motor vehicles on state business to use gasohol and alternative fuels. (Reference Assembly Bill 40, 2011; Wisconsin Statutes 16.045; and Executive Order 141, 2006)

Petroleum Reduction Requirements The Wisconsin Department of Administration's fleet management policy requires all state agencies to collectively reduce gasoline use in state-owned vehicles by at least 50% by 2015 as compared to the total amount used in 2006. In addition, state agencies must reduce petroleum-based diesel fuel use by 25% by 2015. (Reference Wisconsin Statutes 16.045, and Executive Order 141, 2006)

Alternative Fueling Infrastructure Development The Wisconsin Department of Administration must pursue, in cooperation with the Department of Agriculture, Trade and Consumer Protection, the establishment and maintenance of sufficient alternative fueling infrastructure at public retail outlets to meet the public's traveling needs. (Reference Wisconsin Statutes 16.956(3)(f))

Biodiesel Definition Biodiesel is defined as a fuel comprised of monoalkyl esters of long chain fatty acids derived from vegetable oils or animal fats, either in pure form or mixed in any combination with petroleum-based diesel fuel. The definition of biodiesel is expanded for purposes of existing provisions that encourage alternative fuels use in state-owned vehicles. (Reference Wisconsin Statutes 16.045(1)(c)) 

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