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All State Incentives & Laws
Alaska Incentives and LawsLast Updated May 2008 State IncentivesThere are currently no known State incentives offered in Alaska State Laws and RegulationsGlobal Warming Mitigation InitiativeThe Alaska Climate Change Sub-Cabinet is established to advise the Governor on climate change strategy, including opportunities to reduce greenhouse gas emissions through the use of alternative fuels, energy conservation, fuel efficiency, and transportation planning. (Reference Administrative Order 238, 2007) Ethanol Fuel Blend Tax Rate ReductionIn certain geographic areas and during months in which fuel containing ethanol is required to be sold, transferred, or used in an effort reduce emissions carbon monoxide and attain air quality standards as required by federal or state law, the tax rate on fuel containing at least 10% ethanol by volume is reduced by $0.06 per gallon as compared to the tax rate on other motor fuels. (Reference Alaska Statutes 43.40.010) Low-Speed Vehicle Access to RoadwaysLow-speed vehicles are not permitted on highways with maximum speed limits greater than 35 miles per hour (mph) but are permitted to cross a highway that has a maximum speed limit greater than 35 mph if the crossing is made at the intersection with a highway that is authorized for low-speed vehicle use. Operators of low-speed vehicles are subject to all traffic laws and other laws applicable to operators of passenger vehicles, including a biennial registration fee. A low-speed vehicle is defined as a motor vehicle that has four wheels, is capable of propelling itself and achieving speeds greater than 20 mph but not more than 25 mph, and that meets state and federal weight, equipment, and safety requirements. (Reference Alaska Statutes 28.10.041, 28.35.261, and 28.90.990) Alternative Fuel UseThe state Department of Transportation (DOT) is required to consider using alternative fuels for automotive purposes whenever practicable. The DOT may participate in joint ventures with public or private partners that will foster the availability of alternative fuels for all consumers of automotive fuel. (Reference Alaska Statutes 44.42.020) Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Alaska Alaska Points of Contact:
Alabama Incentives and LawsLast Updated July 2008 State IncentivesBiofuels Research and DevelopmentThe Alabama Research Alliance (ARA), administered by the Alabama Department of Economic and Community Affairs, facilitates scientific research and development, including agricultural research and development activities related to biofuels. Income received by the ARA may be used to support research and development activities. (Reference Executive Order 37, 2007) Alternative Fuels Promotion and InformationThe Center for Alternative Fuels (Center) is established within the Alabama Department of Agriculture and Industries to promote alternative fuels as a viable energy source in the state. The Center will assess the current status and development of sources of alternative fuels, ensure 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 will also administer a grant program funded by an income tax check-off program through the Alabama Alternative Fuels and Research Development Fund. (Reference Code of Alabama 2-2-90 and 2-2-91) State Laws and RegulationsAlternative Fuel TaxThe state road tax for vehicles that operate on liquefied petroleum gas (LPG) and natural gas is paid through an annual flat-fee sticker and the amount is based on the vehicle's Gross Vehicle Weight Rating. Each person owning and/or operating a vehicle that operates on LPG or natural gas must obtain an annual decal from the Alabama LPG Board. The decal must be affixed to the vehicle as directed by the LPG Board as proof that the flat fee has been paid. The issuance fee is $5 plus the decal fee. Owners of vehicles that are converted to operate on LPG or natural gas must apply for a decal within 10 days of conversion or a 20% penalty will be applied to the decal fee. Out-of-state alternative fuel vehicle operators that purchase LPG or natural gas within the state must pay the current Alabama motor fuel tax. The LPG or natural gas dealer or supplier must remit these funds to the LPG Board before the 20th of the month following the date of sale. (Reference Code of Alabama 40-17-160 through 40-17-165) Point of ContactMarilyn Franklin/Barnie Gilliland Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Alabama Alabama Points of Contact:
Arkansas Incentives and LawsLast Updated March 2007 Arkansas is the home of the Central Arkansas Clean Cities Coalition. Coordinator contact information is listed in the Points of Contact section. State IncentivesAlternative Fuel GrantsThe Arkansas Alternative Fuels Development Fund includes three types of grant incentives available beginning January 1, 2007. The grants include capital and operation incentives for alternative fuel producers and feedstock processors, production incentives for feedstock producers, and distribution incentives for alternative fuels distributors. Alternative fuel producers can receive up to $0.20 per gallon of alternative fuels produced, not exceeding $2 million. Feedstock processors can receive up to $2 million for the construction, modification, alteration, or retrofitting of feedstock processing facilities that are located and operated in Arkansas. Alternative fuel distributors can receive $50,000 to assist with the distribution and storage of alternative fuels or alternative fuels mixture at distribution facilities that are located and operated in Arkansas. Funding is available through July 1, 2009. (Reference House Bill 1379 and 1845, 2007) Idle Reduction Technology LoansThe Arkansas Department of Environmental Quality has a small business loan program that provides low-interest loans to Arkansas small businesses to institute pollution control measures as required by state and federal law or to institute pollution prevention measures that reduce the amount of pollution produced by businesses. Idle reduction technologies for heavy-duty trucking applications are eligible for this loan. An eligible business must employ no more than 100 individuals and demonstrate proof of profitability and the ability to repay the loan. Point of ContactDarren Morrissey Electric Vehicle (EV) Equipment and Fuel Cell Income Tax CreditAn income tax credit is available to Arkansas taxpayers to offset the costs of an Arkansas-based facility that designs, develops, or produces advanced technologies including EV equipment and fuel cells. The credit is equal to 50% of the amount spent during the taxable year to purchase or construct the facility, including land acquisition, infrastructure improvements, renovation, building improvements, machinery, and other manufacturing equipment. This credit does not apply to any portion of facility costs that were provided by federal, state, or local grants. (Reference Arkansas Code 15-4-2104 and 15-4-2105) State Laws and RegulationsBiofuels Use RequirementThe Arkansas Alternative Fuels Development Act establishes an annual goal of 50 million gallons of alternative fuels produced at production facilities in the state by October 6, 2008. Furthermore, by January 1, 2009, all diesel-powered motor vehicles, light trucks, and equipment owned or leased by a state agency must be operated using diesel fuel that contains a minimum of 2% biofuels by volume. Waivers to the 2% biofuels standards for state agency vehicles may be granted if the fuel is not available in certain geographic area or if the fuel is at least $0.15 cents more expensive per gallon then the petroleum equivalent. The Arkansas Bureau of Standards will work to ensure fuel quality standards. (Reference Senate Bill 237, 2007) Alternative Fuels TaxExcise taxes on alternative fuels are imposed on a gasoline gallon equivalent basis. The tax rate for each type of alternative fuel is based on the number of motor vehicles licensed in the state that use each fuel type. (Reference Arkansas Code 26-62-201) Natural Gas MeteringNo user, including an alternative fuel supplier of natural gas fuels, who utilizes natural gas for residential or other tax-free purposes, is permitted to use natural gas fuels in motor vehicles unless the natural gas fuels are removed through a separate meter installed by the alternative fuels supplier for such purposes. (Reference Arkansas Code 26-62-203) Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) User PermitAny user of LNG or LPG as an alternative fuel in vehicles must apply for and obtain a liquefied gas special fuel user's permit for each vehicle owned and operating on LNG or LPG. Applications must be submitted to the Director of the Arkansas Department of Finance and Administration. (Reference Arkansas Code 26-56-304) Liquefied Petroleum Gas (LPG) TaxLPG as a motor fuel is taxed on a per vehicle basis through a yearly flat-fee special fuel user's permit. The amount of the fee is based on the vehicle's Gross Vehicle Weight Rating. (Reference Arkansas Code 26-56-301 and 26-56-304) Alternative Fuel Vehicle (AFV) ConversionAny individual or company who converts an AFV to operate on an alternative fuel must report the conversion to the Director of the Department of Finance and Administration within 10 days of the conversion. An owner or operator who fails to report such a conversion may be subject to a penalty. (Reference Arkansas Code 26-62-214) Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Arkansas Arkansas Points of Contact:
Arizona Incentives and LawsLast Updated June 2008 Arizona is the home of the Valley of the Sun (www.cleanairaz.org) and the Tucson Clean Cities Coalitions (www.pagnet.org/cleancities). Coordinator contact information is listed in the Points of Contact section. State IncentivesHigh Occupancy Vehicle (HOV) Lane ExemptionDedicated alternative fuel vehicles (AFVs) displaying the required AFV license plate are allowed to use HOV lanes, regardless of the number of passengers, through the Energy Efficient Pilot Program. An $8 special plate administration fee applies, and a limited number of Honda Insights, Honda Civic HEVs, and Toyota Prius HEVs are eligible for HOV lane access. Qualified HEVs must display the required energy efficient license plate affixed with an HEV decal. (Reference Arizona Revised Statutes 28-2416 and 28-737B, and Executive Order No. 2007-03, 2007) Point of ContactMotor Vehicle Division Electric Vehicle (EV) Equipment Tax CreditA tax credit of up to $75 is available to individuals for the installation of EV recharging outlets in a house constructed by a taxpayer. (Reference Arizona Revised Statutes 43-1090 and 43-1176) State Laws and RegulationsBiofuels Grants and SpecificationsThe Arizona Biofuels Conversion Program was established in the Department of Weights and Measures to encourage the use of biofuels in the state through the distribution of grants to promote development of fueling infrastructure. Grants will not exceed $30,000 or 40% of conversion costs, whichever is less. Biodiesel is defined as a fuel that is produced from nonpetroleum renewable resources as defined by the U.S. Environmental Protection Agency (EPA), and meets EPA registration requirements for fuels and fuel additives established in Section 211 of the Clean Air Act. E85 is defined as a fuel ethanol gasoline blend 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 House Bill 2621, 2008, and Arizona Revised Statutes 41-1515.01, 41-2051 and 41-2083) Clean Fuel Diesel for Heavy-Duty EquipmentAny state agency that contracts for the use of on- or off-road heavy-duty diesel equipment in Maricopa, Pima, and Pinal Counties must construct its Requests for Proposals in a manner that gives incentives to bidders that use: equipment retrofitted with diesel retrofit kits; newer clean diesel technologies and fuels; or biodiesel or other cleaner petroleum diesel alternatives. (Reference Executive Order No. 2007-03, 2007) Joint Use of Government Refueling InfrastructureTo the extent practicable, a state agency or political subdivision that operates an alternative fueling station must permit the fueling of vehicles owned or operated by other state agencies or political subdivisions at the station. (Reference Arizona Revised Statutes 1-215 and 49-572) Alternative Fuel Use and Acquisition RequirementsLocal governments in defined areas of Maricopa, Pinal, Yavapai, and Pima counties with a population of more than 1,200,000 people are required to develop and implement a vehicle fleet plan for the purpose of encouraging and increasing the use of alternative and clean burning fuels in vehicles owned by a city or town. At least 75% of the local government fleet must operate on alternative and clean burning fuels. The fleet plans must include the use of alternative and clean burning fuels in the bus fleet or regional public transportation authorities operated by covered locales, and all newly purchased buses must use alternative or clean burning fuel. School districts in defined areas of these counties, with an average student population of more than 3,000 students are required to ensure that 50% of the portion of the fleet with a gross vehicle weight rating of at least 17,500 pounds operate on alternative or clean burning fuels, ultra low sulfur diesel, or meet specified emissions standards. Applications for waivers are available. At least 75% of new light-duty vehicles purchased by the state fleet must be capable of operating on alternative or clean burning fuels. For state and federal vehicles that operate primarily in counties with a population of more than 1.2 million people, at least 90% of the total state and federal fleets must operate on alternative or clean burning fuels. Pertaining to the use of an alcohol-fueled vehicle, state agencies must demonstrate that the fuel for the vehicle is available within a 10-mile radius of the primary home base of that vehicle. Vehicle acquisition credits may be earned as follows: 1) every 450 gallons of neat biodiesel (B100) or 2,250 gallons of a diesel fuel substitute is equivalent to one vehicle acquisition; 2) every 530 gallons of E85 is equivalent to one vehicle acquisition. (Reference Arizona Revised Statutes 1-215, 9-500.04, 15-349, 41-803, 49-412, 49-541, 49-474.01, 49-571, and 49-573) Alternative Fuel and Alternative Fuel Vehicle (AFV) Tax ExemptionThe Arizona use tax does not apply to the following: natural gas or liquefied petroleum gas used to propel a motor vehicle; AFVs, if the AFV was manufactured as a diesel fuel vehicle and converted to operate on an alternative fuel; and equipment that is installed in a conventional diesel fuel motor vehicle to convert the vehicle to operate on an alternative fuel. (Reference Arizona Revised Statutes 42-5159) Alternative Fuel Vehicle (AFV) Emissions Test RequirementAll AFVs, except electric, solar, and hydrogen powered vehicles, registered in, or used to commute into, the metro Phoenix or metro Tucson areas are required to have emissions testing before the vehicle can be registered. An alternate fee may be paid for Model Year 2005 and newer original equipment manufactured AFVs instead of having the emissions test performed. New AFVs being registered for the first time are not required to be tested, but emissions testing will be required before an updated registration is granted in subsequent years. For more information, visit the Arizona Department of Environmental Quality Web site. (Reference Arizona Revised Statutes 49-542) Alternative Fuel Vehicle (AFV) Special License PlateAFVs must display an AFV license plate. State or agency directors who conduct activities of a confidential nature and have a vehicle powered by an alternative fuel are exempt from the requirement of displaying an AFV special license plate. The Arizona Department of Transportation has the authority to issue regular plates to AFVs that are used by law enforcement and the federal government. (Reference Arizona Revised Statutes 28-2511 and 38-538.03B) Alternative Fuel Vehicle (AFV) License TaxThe initial annual vehicle license tax on an AFV is lower than the license tax on conventional vehicles. The vehicle license tax on an AFV is $4 for every $100 in assessed value. The assessed value of the AFV is determined as follows: during the first year after initial registration, the value of the AFV is 1% of the manufacturer's base retail price (as compared to 60% for conventional vehicles); during each succeeding year, the value of the AFV is reduced by 15%. The minimum amount of the license tax is $5 per year for each motor vehicle subject to the tax. (Reference Arizona Revised Statutes 28-5805 and 28-5801) Alternative Fuel Vehicle (AFV) ParkingAn individual driving a vehicle powered by an alternative fuel may park without penalty in parking areas that are designated for carpool operators. (Reference Arizona Revised Statutes 28-877) Electric Vehicle (EV) ParkingAn individual is not allowed to stop, stand, or park a motor vehicle within any parking space specially designated for parking and recharging EVs unless the motor vehicle is an EV and has been issued an alternative fuel vehicle special plate or sticker. A person who is found responsible for a violation of this is subject to a civil penalty of at least $350. (Reference Arizona Revised Statutes 28-876) Alternative Fuel Vehicle (AFV) Dealers Information Dissemination RequirementNew motor vehicle dealers are required to make information on AFVs and Arizona-based incentives for purchasing or leasing AFVs available to the public. (Reference Arizona Revised Statutes 28-4414) Liquefied Petroleum Gas (LPG) Device FeeThe Arizona Department of Weights and Measures collects license fees for LPG motor fuel measuring and fueling devices used for commercial purposes. A penalty equal to 20% of the fee may be imposed for late license fee payments. (Reference Arizona Revised Statutes 41-2092) Neighborhood Electric Vehicle (NEV) Access to RoadwaysNEVs may not operate at speeds greater than 25 miles per hour (mph) but are allowed access to roadways with speed limits of up to 35 mph. NEVs must display a notice of the operational restrictions (either painted or otherwise permanently attached) on the vehicle in a location that is in clear view of the driver. (Reference Arizona Revised Statutes 28-966 and 28-2157) School Bus Idle Reduction Pilot ProgramAs part of the Children's Environmental Health Project, the Arizona Department of Environmental Quality (ADEQ) runs the School Bus Idling Pilot Program to reduce bus idling near schools. ADEQ has worked with school districts to develop a draft bus idling policy. Key elements in the draft policy include: having drivers turn off buses upon reaching a school or other location and not turn on the engine until the vehicle is ready to depart; parking buses at least 100 feet from a school air intake system; and posting appropriate signage advising drivers to limit idling near the school. Idle Reduction Requirement - Maricopa CountyHeavy-duty diesel vehicles operated in Maricopa County with a gross vehicle weight rating of more than 14,000 pounds must limit idling time to no more than five minutes. Exemptions apply for emergency vehicles, certain traffic or weather conditions, driver accommodations, and idling necessary for refrigeration equipment. (Reference Arizona Revised Statutes 11-876 and Maricopa County Vehicle Idling Restriction Ordinance) Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Arizona Arizona Points of Contact:
California Incentives and LawsLast Updated October 2007 California is the home of the San Joaquin Valley (www.valleycleancities.org), Southern California Association of Governments (www.the-partnership.org/cleancities), Antelope Valley, Long Beach, Los Angeles (www.cityofla.org/EAD/EADWeb-AQD/LACleanCity.htm), East Bay, Western Riverside County (www.wr4cleanair.org), Greater Sacramento, San Diego Regional (www.sdcleanfuels.org), San Francisco, Palm Springs Regional, Central Coast (www.c-5.org), and Silicon Valley (www.svcleancities.org) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section. State IncentivesIdle Reduction IncentivesA transportation bond approved in November 2006 provides funding on a competitive basis for projects that achieve emissions reductions from truck engine idling through electrification infrastructure and the replacement, repower, and retrofit of heavy-duty diesel trucks. (Reference Assembly Bill 201, 2007, and Proposition 1B, 2006) Alternative Fuel Incentive DevelopmentThe California Air Resources Board and California Energy Commission have been asked to develop a joint plan, allocating $25 million in incentives, to promote the use and production of alternative fuels. Incentives would be provided for projects in California that promoted high efficiency, high mileage, alternative fuel light-, medium-, and heavy-duty vehicles, for both individual and public fleets. Incentives would be available to replace the current state vehicle fleet with clean, high mileage alternative fuel vehicles and for the construction of both publicly accessible alternative fuel retail fueling stations and fleet fueling facilities, including E-85. In addition, incentives would be provided for alternative fuel production in California and funding for research, development, and testing of alternative fuels and advancing vehicle technology. (Reference Assembly Bill 1811, 2006) Alternative Fuel Vehicle (AFV) Rebate ProgramThe "Driving Alternatives" vehicle rebate program has allocated $1.8 million toward vehicle incentive grants for qualifying AFVs. Grants of up to $5,000 will be made available to consumers who purchase or lease eligible zero emission vehicles (ZEVs), plug-in hybrid electric vehicles, and AFVs between May 24, 2007, and March 31, 2009. For the purposes of this program, ZEVs include full function battery electric vehicles, hydrogen fuel cell vehicles, low-speed or neighborhood electric vehicles, and zero emission motorcycles. Point of ContactMary Venables Alternative Fuel Research and DevelopmentThe Alternative and Renewable Fuel and Vehicle Technology Program will provide grants and loans to public agencies, businesses, fleet owners, consumers, and academic institutions to develop and deploy innovative technologies that transform California's fuel and vehicle types to help attain the state's climate change policies. (Reference Assembly Bill 118, 2007) High Occupancy Vehicle (HOV) Lane ExemptionQualified alternative fuel vehicles (AFVs) and hybrid electric vehicles (HEVs) can use HOV lanes regardless of the number of occupants in the vehicle. An identification sticker and FasTrak account must first be obtained from the California Department of Motor Vehicles; only 85,000 decals will be made available. Until January 1, 2011, qualified AFVs are limited to the following: 1) Super Ultra Low Emission Vehicles (SULEVs) or Zero Emission Vehicles (ZEVs) which also meet the federal Inherently Low Emission Vehicles (ILEV) evaporative emissions standards; 2) Ultra Low Emission Vehicles (ULEVs) produced during Model Year 2004 (MY2004) or earlier that also meet the federal ILEV standard; 3) HEVs produced during MY2004 or earlier that have a fuel economy rating of 45 miles per gallon or greater and also meet the state ULEV, SULEV, or Partial Zero Emission Vehicle (PZEV) standards. Enactment of the 2005 Federal transportation bill Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Public Law 109-59) allowed full implementation of this incentive. Additionally, certain vehicles registered to an address in the 9-county San Francisco Bay region are permitted to use the toll-free and reduced-rate passage privilege on specified bridges if the owner of the vehicle has obtained an automatic vehicle identification account. (Reference Assembly Bill 2600 and 1407, 2006, and California Vehicle Code Sections 5205.5 and 21655.9) Point of ContactMotor Vehicle Information Hotline Funding for Emission ReductionsThe Carl Moyer Memorial Air Quality Standards Attainment Program provides incentive-based funding for the incremental cost of purchasing cleaner than required engines and equipment. Eligible projects include cleaner on-road, off-road, marine, locomotive, and agricultural engines, as well as forklifts, airport ground support equipment, and auxiliary power units. The Carl Moyer Program provides funds for significant near-term reductions in nitrogen oxide emissions, Reactive Organic Gases, and particulate matter emissions. Additionally, the Carl Moyer program has been expanded to include heavy-duty fleet modernization projects, and projects for cars and light-duty trucks. Each local air district is responsible for distribution of the Carl Moyer funding. (Reference California Health and Safety Code Section 44280) Point of ContactDavid Salardino Alternative Fuel Vehicle (AFV) and Refueling Infrastructure Grants and LoansThe Assembly Bill 2766 program provides incentive funding for projects that reduce on-road and off-road motor vehicle pollutant emissions (focusing on nitrogen oxides emissions and particulate matter). The program provides applicants with grant money to implement activities or purchase equipment that reduces air pollution from vehicles, including purchasing alternative fuel vehicles and building alternative fuel and advanced technology infrastructure. Check with local air districts to learn how the AB 2766 Motor Vehicle Registration Funds grants are distributed. Some programs include: Yolo-Solano AQMD, South Coast AQMD, Bay Area AQMD, Antelope Valley AQMD, Feather River AQMD, Kern County AQMD, Mojave Desert AQMD, Monterey Bay Unified APCD, North Coast Unified APCD, Northern Sierra AMD , and San Luis Obispo APCD. (Reference Health and Safety Code 44220 to 44246) Point of ContactJeff Weir Lower-Emission School Bus GrantsThe Lower-Emission School Bus Program at the California Air Resources Board (ARB) provides grant funding for new school buses and for air pollution control equipment. Air pollution control devices must be verified by the ARB to reduce particulate matter emissions by at least 85% for each retrofitted school bus. The program focuses on replacing buses that were built prior to 1987. A transportation bond approved by voters in November 2006 will provide approximately $200 million in funding over two years to replace the oldest remaining public school buses and add pollution control equipment to other buses. Public school districts in California, that own their own buses, are eligible to receive funding for the replacement of older school buses and for the retrofit of in-use buses. Private school transportation providers that contract with public school districts to provide transportation services are eligible to receive funding for the retrofit of in-use buses. Alternative-fueled buses may be powered by natural gas, liquefied petroleum gas, electricity, methanol, or ethanol fuels, provided that the other program requirements are met. Commercially available hybrid school buses may be partially eligible for funding. Check with local air districts to learn how the Lower-Emission School Bus Grants are distributed. (Reference Senate Bill 1266, 2006, and California Government Code 8879.20 to 8879.37, and Proposition 1B, 2006) Point of ContactKimya Lambert Point of ContactLisa Jennings Alternative Fuel Research and DevelopmentInnovative Clean Air Technologies Program (ICAT) is a California Air Resources Board (ARB) program that co-funds demonstration projects of innovative technologies that can reduce air pollution. Its purpose is to advance such technologies toward commercial application, thereby reducing emissions and helping the economy of California. In general, the ICAT program can support any innovation in technology that focuses on preventing or controlling air pollution from any type of emission source in California. ICAT can support technologies applicable to any stationary, mobile, indoor, or agricultural emission source or consumer products. Proposals related to current ARB programs, such as increasing the alternatives to diesel fuel and diesel engines, increasing efficiency of zero-emission vehicles, and fuel cells and hydrogen technology, are of particular interest. Vehicle Emission Reduction Grants - SacramentoThe Sacramento Emergency Clean Air and Transportation Program was created to provide grants to offset the advanced introduction costs of eligible projects that reduce on-road emissions of nitrogen oxide within the Sacramento federal ozone non-attainment area. Eligibility for grant awards include projects for zero- or very low-emission covered vehicles or to replace older heavy-duty diesel vehicles. Implementation of practical, low-emission retrofit technologies and other advanced technologies may also qualify. (Reference California Health and Safety Code, Sections 44299.50 through 44299.55) Point of ContactKristian Damkier Funding for Heavy-Duty Vehicle Emission Reductions - SacramentoThe Sacramento Air Quality Management District's Heavy-Duty Low-Emission Vehicle Incentive Program offers a variety of financial incentives to entities that lower nitrogen oxide emissions from heavy-duty vehicles (both on and off-road) with Gross Vehicle Weight Ratings over 14,000 pounds. This includes purchasing new heavy-duty alternative fuel vehicles as well as retrofitting older diesel vehicles to ensure lower emissions. Private businesses and public agencies in the six-county Sacramento federal ozone non-attainment area are eligible to apply for this program. Point of ContactMike Neuenburg Funding for Air Quality Improvement Programs - Ventura CountyThe Ventura County Air Pollution Control District offers the Clean Air Fund, which is administered by the Ventura County Community Foundation. The Clean Air Fund provides grants for air quality improvement projects in the county, such as smog reduction. The Clean Air Fund Advisory Committee is interested in projects that will have significant emission impacts or support innovative air pollution reduction technologies. Currently, only earnings from the permanent endowment are available for Clean Air Fund grants, approximately $35,000 per year. Point of ContactStan Cowen Alternative Fuel Vehicle, Refueling Infrastructure and Idle Reduction Grants - San Joaquin ValleyThe San Joaquin Valley Unified Air Pollution Control District Heavy-Duty Engine Incentive Program provides funding for the incremental cost associated with purchasing reduced emission technology for heavy-duty vehicles. Eligible funding categories include heavy-duty on-road vehicles with Gross Vehicle Weight Ratings over 14,000 pounds, off-road self-propelled vehicles, locomotives, marine vessels, electric forklifts, electric airport ground support equipment, and stationary agricultural irrigation pump engines. Eligible fuel types include compressed natural gas, liquefied petroleum gas, and electricity. The Heavy-Duty Engine Program also has an Alternative Fuel Infrastructure component that provides grants for the development of infrastructure to dispense alternative fuel for heavy-duty vehicles. Additionally, the Heavy-Duty Engine Idle Reduction Incentive Program provides incentive funds for technologies that result in a significant reduction of on- and off-road heavy-duty vehicle idling in the San Joaquin Valley. Applications must be completed and approved before the engine is purchased, and funds are provided on a first come, first served basis. Point of ContactHeavy-Duty Engine Program Hotline Low-Emission Vehicle Incentives and Technical Training - San Joaquin ValleyThe REMOVE II Program provides incentives for the purchase of low-emission passenger vehicles, light-duty trucks, small buses, and trucks under 14,000 pounds Gross Vehicle Weight Rating. The purpose of this program is to encourage the early introduction of low-emission vehicles in the San Joaquin Valley. The program pays between $1,000 and $3,000 per vehicle depending on the emission certification level and size of the vehicle. Vehicles must be powered by alternative fuel, electric, or hybrid electric engines/motors. The program also has an Alternative Fuel Vehicle (AFV) Mechanic Training Component that provides incentives for the education of personnel on the mechanics, operation safety, and maintenance of AFVs, equipment structures, fueling stations, and tools involved in the implementation of alternative fuel emission reducing technologies. Point of ContactHeavy-Duty Engine Program Hotline Funding for Emission Reductions - South CoastThe South Coast Air Quality Management District (SCAQMD) administers the Air Quality Investment Program (AQIP). The AQIP is a fund created by the SCAQMD, which allows employers within SCAQMD's jurisdiction to make annual investments into an administered fund to meet employers' emission reduction targets. The revenues collected are used to fund alternative mobile source emission/trip reduction programs, including alternative fuel vehicle projects, on an on-going basis. Programs such as procurement of low-emission, alternative fuel or zero emission vehicles, and old vehicle scrapping could be considered for funding. Point of ContactShashi Singeetham Technology Advancement Funding - South CoastThe South Coast Air Quality Management District's Technology Advancement Office provides funding for research, development, demonstration, and deployment projects that are expected to help accelerate the commercialization of advanced low-emission transportation technologies. Eligible projects have included: power trains and energy storage/conversion devices (e.g., fuel cells and batteries); and implementation of clean fuels (e.g. natural gas, propane, and hydrogen), including their infrastructures. Projects are selected via specific requests for proposals on an as-needed basis or through unsolicited proposals. Approximately $10-12 million in funding is available annually with expected cost-share from other project partners and stakeholders. Point of ContactMatt Miyasato Natural Gas Vehicle Home Fueling Infrastructure Incentive - South CoastThe South Coast Air Quality Management District (SCAQMD) Governing Board approved an incentive program that matches the Mobile Source Air Pollution Reduction Review Committee (MSRC) buy-down program for the purchase of a compressed natural gas (CNG) home fueling appliance manufactured by Fuelmaker. The SCAQMD incentive program matches a $1,000 buy-down for a total of $2,000 for consumers who reside in the SCAQMD jurisdictional boundaries. The incentive buy-down program will apply to the purchase of up to 200 units through Fuelmaker and the lease of up to 200 units through Honda. Point of ContactDean Saito Alternative Fuel and Advanced Technology Vehicle and Infrastructure Incentives – VacavilleThe City of Vacaville provides incentives for any new battery-electric vehicles, dedicated compressed natural gas (CNG) vehicles, plug-in hybrid electric vehicles, and the Phill Home Refueling Appliance from FuelMaker for fueling CNG vehicles at home. Point of ContactEd Huestis Electric Vehicle (EV) Parking Incentive - SacramentoSacramento offers free parking to individuals or small businesses certified by the city's Emerging Small Business Development that own or lease EVs with an EV parking pass in downtown parking lots C, G, H, I, K, P, and R. Free charging stations are located in lot C,G, H, and I. Point of ContactParking Facilities Division Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Parking Incentive - Los AngelesLos Angeles allows free meter parking for selected HEVs and AFVs powered by electricity, compressed natural gas, and hydrogen. To qualify, the vehicle must display California Department of Motor Vehicles High Occupancy Vehicle lane access stickers. The program for HEVs expires December 31, 2007; after this date only HEVs with the California Clean Air Vehicle Decal will qualify for free parking. All other parking restrictions, including posted time limits, no parking during street cleaning times, and peak hour tow away periods, must be obeyed. Point of ContactDepartment of Transportation Clean Vehicle Parking Incentive - Hermosa BeachDowntown Hermosa Beach offers free metered parking at silver poled meters for vehicles with the California Clean Air Decal and electric vehicles, including GEM vehicles. Vehicles may park for the maximum time limit designated on the meter. Point of ContactEnnis Jackson Hybrid Electric Vehicle (HEV) and Zero Emission (ZEV) Vehicle Parking Incentive - San JoseThe City of San Jose has developed a Clean Air Vehicle Parking Program to encourage reduced auto emissions, stimulate activity in the downtown, and increase sales of clean-air vehicles at San Jose auto dealerships. For eligible vehicles, the program allows free parking at participating municipal off-street parking facilities, on-street meters, and regional park and recreation parking lots. Clean-air vehicles must display the Clean Air Vehicle Parking Permit, which is available for a $30 application fee. Only eligible vehicles purchased in San Jose after January 1, 2000, can obtain a permit. ZEVs purchased outside San Jose are also eligible to apply as long as the vehicle is registered in San Jose. Point of ContactPamela McAnally Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Parking Incentive - Santa MonicaThe City of Santa Monica offers free meter parking for dedicated electric and compressed natural gas, or hybrid electric vehicles carrying the Clean Air Decal. Vehicles may park for the maximum time limit designated on the meter per trip. Point of ContactLynne Taffert Electric Vehicle (EV) Parking Incentive - Los Angeles AirportThe Los Angeles Airport (LAX) offers free parking and recharging for EVs in the lower/arrivals level of Parking Structures 1 and 6. Point of ContactLAX Parking Services Division State Laws and RegulationsWest Coast Global Warming Mitigation InitiativeGovernors of Washington, Oregon, and California approved a series of recommendations for action to combat global warming, as detailed in the West Coast Governors' Global Warming Initiative. It was determined that Oregon, California, and Washington must act individually and regionally to reduce greenhouse gases. The initiative includes adopting standards to reduce greenhouse gas emissions from vehicles by expanding markets for efficiency, renewable energy and alternative fuels, including creating a working group on hydrogen fuel. California Global Warming Solutions Act requires the California Air Resources Board (ARB), and other agencies, to adopt regulations that require limiting statewide greenhouse gas emissions to 1990 levels by 2020 and to regulate the reporting and enforcement (including fees) for greenhouse gas emissions. In compliance with the Global Warming Solutions Act, the ARB had adopted an additional set of measures in the Early Actions Report, such as requiring truck efficiency retrofit devices that reduce aerodynamic drag, and regulations requiring tune-up, smog check, and oil change mechanics to ensure proper tire inflation as part of overall service. All these actions are captured in Executive Order S-20-06, which reiterates the leadership role of California's Secretary of Environmental Protection and the Climate Action Team's vehicle emissions standards. (Reference Assembly Bill 32, 2006, Executive Order S-20-06, 2006, and California Health and Safety Code Sections 38500 to 38599) Low-Carbon FuelsBased on California's emissions reduction goals described in the Global Warming Solutions Act, the Governor has committed California to reduce the carbon intensity of California's transportation fuels at least 10% by 2020 through establishing a low-carbon fuel standard. The California Air Resources Board has coordinated activities between the University of California, the California Energy Commission, and other state agencies to develop and propose a draft compliance schedule to meet the 2020 target. (Reference Assembly Bill 32, 2006, Executive Order S-01-07, and California Health and Safety Code Sections 38500 to 38599) Emission Reduction RequirementsA public transit bus rule adopted by the California Air Resources Board (ARB) regulates public transit fleets and sets emission reduction standards for new urban transit buses. The rule allows transit fleets to choose one of two options in order to reduce their emissions to the required levels: using alternative fuels, including zero-emission buses, or clean diesel, including retrofit devices. A solid waste collection vehicle (SWCV) rule adopted by ARB regulates SWCV with a Gross Vehicle Weight Rating of 14,000 pounds or more, operate on diesel fuel, have 1960 through 2006 engine models, and collect waste for a fee. Each year through 2011, public agency and utility vehicle owners are required to install Best Available Control Technology devices or purchase vehicles that run on alternative fuels or use advanced technologies to achieve emissions requirements. (Reference California Code of Regulations Title 13, Division 3, Chapter 1, Article 1, Section 1956.1) Point of ContactKathleen Mead Alternative Fuels PlanOn October 31, 2007, the State Energy Resources Conservation and Development Commission, in partnership with other state agencies, developed and adopted the State Alternative Fuels Plan to increase the use of alternative transportation fuels (Reference Assembly Bill 1007, 2005, Assembly Bill 1012 and 2264, 2006, and California Health and Safety Code Section 43865) Alternative Fuel Vehicle (AFV) Acquisition RequirementsWhen awarding a vehicle procurement contract, every city, county, and special district, including a school district and a community college district, is authorized to require that 75% of the passenger cars and/or light-duty trucks acquired be energy-efficient vehicles. Vehicle procurement contracts are also authorized to evaluate fuel economy and life-cycle factors. By definition, this includes hybrid vehicles or alternative fuel vehicles that meet California's advanced technology partial zero-emission vehicle (AT PZEV) standard for criteria pollutant emissions. Furthermore, by July 1, 2009, vehicles owned or leased by the state that are capable of operating on an alternative fuel must operate on that fuel unless alternative fuels are not available. The Secretary of State and Consumer Services must develop and implement a plan to reduce or displace the state fleets consumption of petroleum products on or before July 1, 2009. (Reference Assembly Bill 1660, 2005, Assembly Bill 236, 2007,California Health and Safety Code Section 43810, and California Public Resources Code Section 25725) Truck Idle Reduction RequirementThe California Air Resources Board has adopted an engine and in-use truck requirement and emission performance requirement for technologies used as alternatives to the truck's main engine idling. Model Year 2008 and newer heavy-duty diesel engines are required to be equipped with a non-programmable engine shutdown system that automatically shuts down the engine after five minutes of idling or optionally meets a 30 gram per hour nitrogen oxide idling emission standard. Operators of sleeper berth equipped trucks are required to manually shut down their engine when idling more than five minutes at any location within California beginning in 2008. The penalty for violating this measure is $300 per violation starting January 1, 2008. Furthermore, the Department of Motor Vehicles will not register, renew, or transfer registration for any vehicle operator who has received a violation until the violation is cleared. (Reference California Code of Regulations Title 13, Division 3, Chapter 10, Article 1, Section 2485 and Assembly Bill 233, 2007) Point of ContactDaniel Hawelti School Bus Idle Reduction RequirementThe California Air Resources Board has established an airborne toxic control measure (ATCM) that limits school bus idling and idling at or near schools to only when necessary for safety or operational concerns. This ATCM is intended to reduce diesel exhaust particulate matter and other toxic air contaminants from heavy-duty vehicle exhaust. (Reference California Code of Regulations Title 13, Division 3, Chapter 10, Section 2480) Hydrogen Energy PlanThe state's 21 interstate freeways are now designated as the "California Hydrogen Highway Network," and the state is committed to working with legislators, energy providers, automakers, and others to achieve the following by 2010: 1) Build a network of hydrogen fueling stations; 2) ensure that hydrogen vehicles are commercially available for purchase; 3) incorporate hydrogen vehicles into the state fleet; 4) develop safety standards for hydrogen fueling stations and vehicles; and 5) establish incentives to encourage the use of hydrogen vehicles and encourage the development of renewable sources of energy for hydrogen production. Regulations will require the reporting of the amount and method by which the hydrogen fuel is dispensed and how the fuel is produced and delivered. The Hydrogen Highway Plan must be implemented in an environmentally responsible and advantageous manner that contributes to the reduction of greenhouse gases, criteria air pollutants, and toxic emissions. (Reference Executive Order S-7-04, 2004, Senate Bill 1505, 2006, and California Health and Safety Code 43868 to 43869) Hydrogen SpecificationsBy January 1, 2008, the Department of Food and Agriculture, with the concurrence of the State Air Resources Board, is required to establish specifications for hydrogen fuels for use in internal combustion engines and fuel cells in motor vehicles until a standards development organization accredited by the American National Standards Institute formally adopts standards for hydrogen fuels for use in the internal combustion engines and fuel cells in motor vehicles. (Reference Senate Bill 76, 2005, and California Business and Professional Code 13446) Biofuels UsePublic agencies, utilities, and solid waste collection vehicle operators are permitted to use biodiesel or biodiesel fuel blends up to 20% in any retrofitted on-road or off-road vehicle or diesel engine certified by the state whether or not biodiesel is expressly identified as a fuel for use with the retrofit system. (Reference Senate Bill 975, 2005, and California Health and Safety Code 43860) Biofuels SpecificationsThe Department of Food and Agriculture, Division of
Measurement Standards, has adopted performance and drivability
specifications for E85 fuel (85% ethanol blended with 15% gasoline), M85
fuel (85% methanol blended with 15% gasoline), and biodiesel fuel as
follows: Biofuels Production Mandate and Alternative Fuel Use StudyThe State of California plans to use biomass resources from agriculture, forestry, and urban wastes to provide transportation fuels and electricity to satisfy California's fuel and energy needs. To increase the use of biomass in fuel production, the state will produce its own biofuels at a minimum of 20% by 2010, 40% by 2020, and 75% by 2050. The California Air Resources Board and the California Energy Commission, in conjunction with other agencies, have participated in the Bioenergy Interagency Working Group to prepare a Bioenergy Action Plan Bioenergy Action Plan. The Bioenergy Action Plan includes: research and development of commercially viable biofuels production and advanced biomass conversion technologies; evaluation of the potential for biofuels to provide a clean, renewable source for hydrogen fuel; and increases the purchase of flexible-fuel vehicles to 50% of total new vehicles purchased by state agencies by 2010. (Reference Executive Order S-06-06, 2006) Alternative Fuel Vehicle (AFV) Program SupportThe California Energy Commission is directed to prepare an integrated energy policy report on a biannual basis. This integrated report was first released in 2003 and contains an overview of major energy trends and issues facing the state, including those related to transportation fuels, technologies, and infrastructure. The report also examines potential effects of alternative fuels usage, vehicle efficiency improvements, and shifts in transportation modes on public health and safety, the economy, resources, the environment, and energy security. (Reference California Public Resources Code Section 25302) Zero Emission Vehicle (ZEV) Production RequirementsAll 2005 model year and subsequent model year passenger cars, light-duty trucks, and medium-duty vehicles will be certified as ZEVs if the vehicles produce zero exhaust emissions of any criteria pollutant (or precursor pollutant) under any and all possible operational modes and conditions with certain exceptions for fuel-fired heaters.Manufacturers must produce and deliver for sale in California a minimum percentage of ZEVs for each model year as follows:
Manufacturers may comply with the ZEV requirements through multiple alternative compliance options that include other low emission vehicles. (Reference California Code of Regulations Title 13, Division 3, Chapter 1, Article 1, Section 1962) Point of ContactZero Emission Vehicle Program Alternative Fuel Vehicle (AFV) LicenseIn order to equalize the vehicle license fee between AFVs and conventional fuel vehicles, the incremental cost of purchasing an AFV is exempt from the vehicle license fee (of 2%) when the costs are more than the most comparable conventional fuel vehicle, as determined by the California Energy Commission. This reduction applies to new, light-duty AFVs that are certified to meet or exceed Ultra Low Emission Vehicle standards. This program expires January 1, 2009. (Reference California Revenue and Taxation Code Section 10759.5) Alternative Fuel TaxThe excise tax imposed on compress natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG) as vehicle fuels can be paid through an annual flat-fee rate sticker tax based on the following gross vehicle weight rating:
Low-Speed Vehicle Access to RoadwaysLow-speed vehicles are defined as motor vehicles having four wheels on the ground, an unladen weight of 1,800 pounds or less, and capable of a minimum speed of 20 miles per hour (mph) and a maximum speed of 25 mph. Low-speed vehicles are subject to all the provisions applicable to a motor vehicle, and drivers of low-speed vehicles must comply with all provisions applicable to drivers of motor vehicles. The operator of a low-speed vehicle shall not operate the vehicle on any roadway with a speed limit in excess of 35 mph. (Reference California Vehicle Code Sections 385.5, 21250, 21251, and 21260) Emission Reduction Non-Attainment FeeAir Pollution Control Districts (APCD) in California that have not attained state and federal air quality standards may collect an annual surcharge of up to $6.00 per vehicle as part of the California Department of Motor Vehicle registration fee. These funds are used for projects related to reducing pollution from motor vehicles. Each APCD operates its own program and is funded at different levels. (Reference California Vehicle Code Section 9250.2) Biodiesel Blend Use Requirement - San FranciscoThe City of San Francisco has mandated that diesel vehicles used by San Francisco's public agencies must use at least 20% biodiesel (B20) blends by December 31, 2007. All departments using diesel must begin using B20 as soon as practicable in all diesel vehicles and other diesel equipment. Each department must obtain the following incremental goals for use of B20: Initiate and complete biodiesel pilot project by December 31, 2006; 25% B20 by March 31, 2007; and 100% B20 by December 31, 2007. Departments must then pursue actions to use higher biodiesel blends, up to and including neat biodiesel (B100). (Reference Executive Directive 06-02, 2006) Heavy-Duty Idle Reduction Requirement - SacramentoThe City of Sacramento has passed an ordinance prohibiting the idling of all heavy-duty on-road vehicles and all heavy-duty off-road equipment for more than five minutes at a given location. Vehicles, off-road equipment, and transport refrigeration units are also prohibited from extended idling within 100 feet of a residence or school. (Reference Sacramento City Code Chapter 8.116) Point of ContactKristian Damkier Emissions Reduction Requirements - San Joaquin ValleyThe San Joaquin Valley Air Pollution Control District is authorized to do the following: 1) Adopt rules and regulations that require the use of best available control technology for new and modified sources of pollution, promote the use of cleaner burning alternative fuels, and encourage and facilitate ridesharing for commuters; 2) Impose a $1 fee on the initial and renewal of motor vehicle registration in the district for reducing air pollution from motor vehicles through activities including the establishment of a clean fuels program; and 3) Establish expedited permit review and project assistance mechanisms for facilities or projects that are directly related to research and development, demonstration, or commercialization of electric and other clean fuel vehicle technologies. (Reference California Health and Safety Code Sections 40603 and 40605) Public Agency Fleet Emissions Reduction Requirements - South CoastThe South Coast Air Quality Management District has the authority to require government fleets and private contractors under contract with public entities to purchase cleaner, alternative fuel vehicles. The rule applies to transit buses, school buses, trash trucks, and other vehicles, and has set alternative fuel vehicle purchasing requirements for public and commercial fleets that operate in Southern California. The rules are applicable in Los Angeles, San Bernardino, Riverside, and Orange Counties. (Reference SCAQMD Rules 1191 to 1196 and 1186.1) Point of ContactDean Saito Point of ContactFleet Rule Implementation Hotline Neighborhood Electric Vehicle (NEV) Access to Roadways - Placer CountyUntil January 1, 2009, the Cities of Lincoln and Rocklin in Placer County are authorized to establish an NEV transportation plan subject to the same review process established for the golf cart transportation plan. NEVs are defined as low-speed vehicles. NEVs may be used on state highways under certain conditions. A report to the Legislature is required by January 1, 2008. Additionally, discussions are encouraged between the State Legislature, the Department of Motor Vehicles, and the California Highway Patrol regarding the adoption of a new classification for licensing motorists who use NEVs. (Reference California Streets and Highways Code 1963 to 1963.8) Utilities/Private IncentivesCity of Riverside Employee Vehicle Purchase IncentivesCity of Riverside employees are eligible to receive a rebate toward the purchase of qualified alternative fuel and hybrid electric vehicles that are purchased from a City of Riverside automobile dealership. New qualified vehicles can receive up to $2,000 and used qualified vehicles can receive up to $1,000. Point of ContactChris Durham Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (AFV) Insurance DiscountFarmers Insurance provides a discount on insurance to HEV and AFV owners. Owners can cave 10% on all major insurance coverage. To qualify, the automobile must be either: 1) A vehicle designed to use a dedicated alternative fuel as defined in the Energy Policy Act of 1992; or 2) An electric and gasoline hybrid vehicle. A complete Vehicle Identification Number (VIN) will be required to validate vehicle eligibility. Compressed Natural Gas (CNG) Taxi IncentiveThe San Francisco International Airport, in partnership with the San Francisco Taxicab Commission, allows drivers of CNG taxis a front-of-the-line incentive allowing them one jump and one trip fee waiver per shift. Electric Vehicle (EV) Recharging Rate ReductionThe Sacramento Municipal Utility District (SMUD) offers a discounted rate of approximately 75% of the regular residential rate for electricity used to charge an EV for residential customers when the EV driver signs up for the appropriate residential time of use rate. SMUD offers lower off-peak time-of-use rates for commercial customers' EV charging. Point of ContactElectric Transportation Department Electric Vehicle (EV) Recharging Rate Reduction - Los AngelesThe Los Angeles Department of Water and Power (LADWP) offers an EV charging discount of $0.025/kWh for electricity. The discount is available for a maximum of 500 kWh/month limited to the base-period rate (off-peak hours). LADWP also provides guidance on EV infrastructure to help customers determine applications for EVs in their fleet operations, EV maintenance services, and training. Point of ContactTerry Brumgart Southern California Edison Rate for Electric Vehicles (EV)Southern California Edison offers a discounted rate for electricity used to charge EVs during off-peak time periods. Electricity used to charge EVs during on-peak time periods also pay a discounted monthly customer fee. Point of ContactSouthern California Edison California Points of Contact:
Colorado Incentives and LawsLast Updated July 2008 Colorado is the home of the Denver Metro (www.lungcolorado.org/CleanCities.htm), Northern Colorado (www.northcolocleancities.com), and Southern Colorado Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section. State IncentivesBiofuels Research GrantsThe Bioscience Discovery Evaluation Grant Program, administered by the Colorado Office of Economic Development, provides grants to research institutions for biofuels research projects. Biofuels research is defined as the use of microorganisms, specialized proteins, or thermal processes to develop biofuels and the related processes that make traditional manufacturing of energy cleaner and more efficient. Biofuel is defined as a biologically based fuel product developed from plant matter or other biological material, including renewable agricultural sources. Grant limits, matching funds, and other eligibility requirements apply. (Reference House Bill 1001, 2008, and Colorado Revised Statutes 24-48.5-108) Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax CreditAn income tax credit is available from the Colorado Department of Revenue for the purchase of an AFV or the conversion of a vehicle to operate using an alternative fuel, based on the incremental or conversion cost. HEVs also qualify for this incentive. This credit is only available in the year during which the vehicle was purchased or converted, and a vehicle may only qualify for this credit one time. For an AFV purchase or conversion that permanently replaces a motor vehicle or power source that is ten or more years old, the percentage specified in the table below is doubled, up to a maximum of 100% of the incremental or conversion cost. To the extent the allowable credit exceeds the person's tax liability for that year the excess may be carried forward for up to five years. Lessees or lessors of qualifying vehicles are also eligible for the credit. The value of the credit is based on the EPA emissions classification of the vehicle as follows:
Tax credits for Model Year 2008 HEVs and AFVs are as follows:
For vehicle eligibility updates and historical credit information, see the Colorado Department of Revenue's Alternative Fuel Income Tax Credit Web site. Mild HEVs do not qualify for the credit. Additionally, neighborhood electric vehicles are not eligible because they cannot be operated on Colorado highways. (Reference Colorado Revised Statutes 39-22-516) Point of ContactTax Information Call Center Alternative Fuel Vehicle (AFV) RebateA rebate is available from the Colorado Department of Revenue for the purchase of an AFV or for the conversion of a vehicle to operate using an alternative fuel. Vehicles must be owned by the State of Colorado, a political subdivision of the state, or a tax-exempt organization, and be used in connection with the official activities of the entity. HEVs also qualify for this incentive. The rebate is a percentage of the incremental cost if used toward purchasing a new AFV, or is a percentage of the conversion cost if used towards the cost of converting a vehicle to operate using an alternative fuel. For an AFV purchase or conversion that permanently replaces a motor vehicle or power source that is ten or more years old, the percentage specified in the table below is doubled, up to a maximum of 100% of the incremental or conversion cost. Each qualified entity is limited to $350,000 per state fiscal year in total rebates paid. The rebate value is as follows:
For more information about this rebate, see the Colorado Department of Revenue's Alternative Fuel Income Tax Credits Web site. (Reference Colorado Revised Statutes 39-33-101 through 39-33-106) Point of ContactJohn Doty Alternative Fuel Infrastructure Tax CreditFor tax years beginning prior to January 1, 2011, the Colorado Department of Revenue offers an income tax credit for the cost of construction, reconstruction, or acquisition of an alternative fueling facility that is directly attributable to the storage, compression, charging, or dispensing of alternative fuels to motor vehicles. The credit value is as follows:
For an alternative fueling facility that will be generally accessible for use by the public, in addition to the person claiming the credit, the percentages specified above will be multiplied by 1.25. If at least 70% of the alternative fuel dispensed annually is derived from a renewable energy source for a period of 10 years, the credit percentages specified above will be multiplied by 1.25. Certification for the percentage of renewable energy must be presented, as requested, to the Department of Revenue. The credit has a maximum value of $400,000 in any consecutive five-year period for each fueling facility. For more information about this credit, see the Colorado Department of Revenue's Alternative Fuel Income Tax Credits Web site. (Reference Colorado Revised Statutes 39-22-516) Point of ContactTax Information Call Center High Occupancy Vehicle (HOV) Lane ExemptionVehicles that meet the definition of the U.S. Environmental Protection Agency (EPA) Inherently Low Emission Vehicle (ILEV) classification and have a gross vehicle weight rating of 26,000 pounds or less may be operated in HOV lanes regardless of the number of occupants and without payment of a special toll or fee. A special sticker must be obtained from the Colorado Department of Transportation. Flexible fuel vehicles are not eligible for the HOV exemption decal. Qualified HEVs must obtain and display an HOV lane exemption decal. Initially, only 2,000 decals will be issued. The program is scheduled to expire on September 30, 2009, unless federal authorization of HEV use of HOV lanes is extended. For more information on the use of HEVs in HOV lanes, see the Colorado Department of Transportation’s Hybrid Vehicle Use in HOV Lanes Web site. (Reference Colorado Revised Statutes 42-4-1012) Point of ContactTeresa Carrillo State Laws and RegulationsClean Energy Development AuthorityThe Colorado Clean Energy Development Authority is created and may issue bonds to finance projects that involve the production, transportation, and storage of clean energy. Clean energy includes fuels that are manufactured by, and energy derived from, 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) Funding for Alternative Fuel Feedstock ProductionThe Colorado General Assembly encourages the Governor's Office of Energy Management and Conservation to set a high priority on funding projects that assess the potential for carbon sequestration and agricultural bioenergy production in the state. Agricultural bioenergy production means the agricultural production of grain or biomass that is used to generate electricity or heat for agricultural, municipal, or industrial use, or that is converted into diesel, ethanol, hydrogen gas, or other fuels for energy production or transportation. (Reference House Bill 1203, 2007) Promulgation of Renewable Fuel Storage Tank RegulationsThe Director of the state Division of Oil and Public Safety must promulgate and enforce rules concerning the placement of an underground storage tank that contains renewable fuel. These rules must be promulgated so that the process of obtaining a permit for an underground storage tank that contains renewable fuel is more efficient and affordable. For the purpose of this regulation, a renewable fuel is a motor vehicle 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) Alternative Fuel Use and Vehicle Acquisition RequirementThe Executive Director of the Colorado Department of Personnel has adopted a policy that requires all state-owned diesel vehicles and equipment to be fueled with a fuel blend of 20% biodiesel and 80% petroleum diesel (B20), subject to the availability of the fuel and so long as the price is no greater than $0.10 more per gallon than the price of conventional diesel. Biodiesel is defined as fuel composed of mono-alkyl esters of long chain fatty acids derived from plant or animal matter that meets ASTM specifications and that is produced in Colorado. The Executive Director has adopted a policy to increase the utilization of alternative fuels and establish increasing utilization objectives for each succeeding year. Beginning January 1, 2008, the Executive Director must purchase flexible fuel vehicles or hybrid electric vehicles, subject to availability, unless the incremental cost of the vehicle is more than 10%. The Executive Director may adopt a policy to allow some vehicles to be exempt from this requirement. By January 1, 2009, the Executive Director must report to the general assembly the amount of biodiesel used in the state fleet. The report must include the number of gallons purchased since January 1, 2007, the average price of biodiesel, and a description of economic benefits (Reference Executive Order D0012 07 (PDF 31KB) and Colorado Revised Statutes 24-30-1104) Download Adobe Reader Point of ContactArt Hale Alternative Fuel DefinitionAlternative fuel is defined as compressed natural gas, propane, ethanol, or any mixture of ethanol containing 85% or more ethanol by volume 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 these other fuels make comparable reductions in carbon monoxide emissions and brown cloud pollutants as determined by the air quality control commission. 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) Alternative Fuel Vehicle (AFV) RegistrationUpon registering a motor vehicle with the Colorado Department of Revenue, Division of Motor Vehicles, the vehicle owner must report the types of alternative fuel used to operate the vehicle and whether the vehicle is dual-fueled or dedicated to one alternative fuel. Forms provided by the Department of Revenue for the purpose of registering motor vehicles must include space for the following fuel types: gasoline, diesel, propane, electricity, natural gas, methanol or M85, ethanol or E85, biodiesel, and other. (Reference Colorado Revised Statutes 42-3-113) Alternative Fuel Vehicle (AFV) Weight Limit ExemptionGross vehicle weight rating limits for AFVs are 1,000 pounds greater than corresponding conventional vehicles, as long as the AFVs operate using an alternative fuel or both alternative and conventional fuel, when operating on a highway that is not part of the interstate system. (Reference Colorado Revised Statutes 42-4-508) Alternative Fuels Tax and Vehicle DecalFuel tax exemptions are granted for compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicle owners. Owners of CNG and LPG fueled vehicles are required to purchase an annual tax decal as follows:
All CNG and LPG vehicles must display a current fuel tax decal. Non-profit transit agencies are exempt from the fuel tax. (Reference Colorado Revised Statutes 39-27-102.5) Gasoline Gallon Equivalent DefinitionThe term gasoline gallon equivalent 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 gasoline gallon equivalents shall display gasoline gallon equivalents as the primary display information provided. (Reference Colorado Revised Statutes 8-20-232.5) Idle Reduction Requirement - DenverIdling of any vehicle for more than 10 minutes in any one-hour period is prohibited within the city and county of Denver. Exemptions apply for the following: when ambient outside air temperatures have been less than 20 degrees Fahrenheit for the previous 24 hours; current ambient outside air temperature are less than 10 degrees Fahrenheit. This requirement does not apply to emergency vehicles, vehicles engaged in traffic operations, vehicles being serviced, vehicles that must idle to operate auxiliary equipment, and vehicles that are idle due to traffic congestion. (Reference Revised Municipal Code, City and County of Denver, Section 4-43) Idle Reduction Requirement - AspenIdling of any vehicle for more than five minutes within any one-hour period is prohibited in the City of Aspen. Exemptions apply for safety reasons and to maintain specified engine temperatures. Violators are subject to a penalty of up to $1,000 and/or one year imprisonment. (Reference City of Aspen Municipal Code 13.08.110) Utilities/Private IncentivesNatural Gas Fuel Rate Reduction and Infrastructure MaintenanceClean Energy Fuels offers services to the natural gas vehicle industry that include compressed natural gas (CNG) fueling station equipment maintenance, competitive fuel pricing for larger fleet customers, and alternative fuel vehicle financing. Clean Energy also operates public CNG fueling stations in Colorado. Point of ContactJames Orsulak Natural Gas Infrastructure Technical AssistanceAtmos Energy offers preliminary feasibility studies for compressed natural gas fueling stations and will assist with vendor selection on a case-by-case basis. Point of ContactWalter C. Miller Colorado Points of Contact:
Connecticut Incentives and LawsLast Updated July 2008 Connecticut is the home of the Capital Clean Cities of Connecticut, Inc., New Haven, Inc., Southwestern Area, and Norwich (www.norwichcleancities.org) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section. State IncentivesBiodiesel Production and Distribution GrantsThe Connecticut Qualified Biodiesel Producer Incentive Account, managed by the Department of Economic and Community Development, provides grants to qualified biodiesel producers and distributors. A qualified biodiesel producer is eligible for up to 60 monthly grants from the account, up to a total grant per fiscal year equal to: 1) $0.30 per gallon for the first five million gallons of biodiesel produced; 2) $0.20 per gallon for the second five million gallons of biodiesel produced; and 3) $0.10 per gallon for the third five million gallons of biodiesel produced. Any portion of biodiesel produced by a qualified biodiesel producer in excess of 15 million gallons per fiscal year is not eligible for these grants. A one-time grant for the purchase of equipment or establishment or retrofit of production facilities is also available; grants may not exceed either $3 million dollars or 25% of the equipment or construction cost. 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 to 32-324f) Biofuels SupportThe Department of Economic and Community Development is required to administer a fuel diversification grant program to provide funding to Connecticut institutions of higher education or Connecticut institutions of agricultural research for purposes which may include research to promote biofuel production from agricultural products, algae and waste grease, as well as biofuel quality testing. (Reference Connecticut General Statutes 32-324g) Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Parking - New HavenThe City of New Haven provides free parking on all city streets for HEVs and AFVs registered in New Haven. HEV and AFV vehicle owners must obtain a non-transferable pass from the Department of Traffic and Parking to place on the vehicle's dashboard or hang from the rearview mirror. AFVs and HEVs are subject to all time and other posted parking restrictions. (Reference New Haven Code of General Ordinances, Title III, Chapter 29, Article III, Division 1, Section 29-56) Point of ContactDepartment of Traffic and Parking State Laws and RegulationsVehicle Greenhouse Gas Labeling RequirementThe Commissioner of the Department of Environmental Protection is required to work with the Commissioner of the Department of Motor Vehicles to: 1) establish a greenhouse gas (GHG) labeling program for new motor vehicles with a gross vehicle weight rating of 10,000 pounds or less that are sold or leased in Connecticut beginning with Model Year 2009; and 2) educate the public about the labeling program and GHGs. (Reference Connecticut General Statutes 22a-201 through 22a-201c) Alternative Fuel Vehicle (AFV) Procurement PreferenceIn determining the lowest responsible qualified bidder for the award of state contracts, the Commissioner of Administrative Services may give a price preference of up to 10% for the purchase of AFVs, or for the purchase of vehicles powered by fuel other than a clean alternative fuel plus conversion equipment to convert the vehicles to dual or dedicated alternative fuel use. For these purposes, alternative fuel means natural gas or electricity when used as a motor vehicle fuel. (Reference Connecticut General Statutes 4a-59) Ethanol Labeling RequirementAny motor vehicle fuel sold at retail containing more than 1% ethanol must be labeled according to specifications established by the Commissioner of Consumer Protection, indicating the percentage of ethanol in the fuel. (Reference Connecticut General Statutes 16a-15) Hydrogen and Fuel Cell PromotionThe Connecticut Center for Advanced Technology (CCAT), with funding from the Department of Economic and Community Development (DECD), has established a Connecticut Hydrogen-Fuel Cell Coalition (Coalition). The Coalition works to enhance economic growth through the development, manufacture, and deployment of fuel cell and hydrogen technologies and associated fueling systems in the state. As required by Public Act 06-187, Section 64, the CCAT prepared and submitted the Plan for Fuel Cell Economic Development (PDF 3MB) to DECD, which was developed to: 1) identify and assess market conditions for fuel cell and hydrogen technology, including the economic potential for Connecticut; 2) analyze Connecticut’s hydrogen and fuel cell industry; 3) examine issues and identify solutions; and 4) identify and assess strategies to enhance Connecticut’s hydrogen and fuel cell industry for increased employment, revenues, and economic development. The Plan for Fuel Cell Economic Development suggests there are favorable market conditions for the expansion of the hydrogen and fuel cell industry in Connecticut, that public investment is appropriate and justified, that investment in hydrogen and fuel cell technology would provide a favorable return for the state, and that there are favorable sites for deployment of hydrogen and fuel cell technology in Connecticut to meet pressing energy needs, improve environmental performance, increase economic development, and create new jobs. (Reference Connecticut General Statutes 578-32-9vv and 578-32-9ww) Point of ContactJoel M. Rinebold Alternative Fuel Vehicle (AFV) Acquisition and Emissions Reduction RequirementsThe fleet of cars and/or light-duty trucks purchased by the state 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. AFVs purchased by the state to comply with these requirements must be capable of operating on an alternative fuel that is available in the state. Department of Public Safety vehicles that the Commissioner of Public Safety and Commissioner of Administrative Services designate as necessary for the Department of Public Safety to carry out its mission are exempt from these provisions. Beginning January 1, 2008, at least 50% of all cars and light-duty trucks purchased or leased by the state must be capable of using alternative fuel, hybrid electric vehicles, or plug-in electric vehicles. All AFVs purchased or leased must be certified to the California Air Resources Board's (ARB) Low Emission Vehicle II Ultra Low Emission Vehicle Standard, and all light-duty gasoline vehicles and hybrid electric vehicles purchased or leased by the state must be certified, at a minimum, to the California ARB Low Emission Vehicle II Ultra Low Emission Vehicle Standard. Beginning January 1, 2012, the required percentage increases to 100%. The Commissioner of Administrative Services is required to report annually on the composition of the state fleet, including the volume of alternative fuels used. (Reference Connecticut General Statutes 4a-67d) School Bus Emissions ReductionThe Commissioner of Environmental Protection and Commissioner of Education are required to establish a school bus emissions reduction program which will include the following: 1) establishment of 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) development of an outreach plan and educational materials regarding the program, and; 3) assistance to municipalities and local and regional boards of education and bus companies to retrofit their full-sized school buses. Prior to September 1, 2010, each full-sized school bus with an engine model year of 1994 or newer, transporting children in the state, must be equipped with specific emissions control systems, including either: 1) a closed crankcase filtration system and a level 1 device, level 2 device or level 3 device; 2) an engine certified by the U.S. Environmental Protection Agency (EPA) to meet Model Year 2007 emission standards; or 3) use compressed natural gas or other alternative fuel certified by the EPA or the California Air Resources Board to reduce particulate matter emissions by at least 85% as compared to ultra-low sulfur diesel fuel. (Reference Connecticut General Statutes 14-164o, 22a-21j, and 22a-21k) Idle Reduction RequirementSchool bus operators are prohibited from idling the engine
of any school bus for more than three consecutive minutes when the school
bus is not in motion except under the following conditions apply: Low Emission Vehicle StandardsThe Commissioner of Environmental Protection has adopted regulations to implement the light-duty motor vehicle emission standards of the state of California for vehicles with a model year of 2008 or later. (Reference Connecticut General Statutes 22a-174g) Alternative Fuel Taxicab RegulationIn compliance with any other regulations governing the use of taxicabs, any alternative fuel sedan or station wagon with a wheelbase of at least 102 inches may be used to provide taxicab service. (Reference Connecticut General Statutes 13b-96) Emissions Reduction CreditsAny state mobile emission reduction credits program must allow credit for emission reductions achieved by converting a vehicle to operate on an alternative fuel when such conversions are eligible for such a credit, even if the conversion took place before the credit program began. (Reference Connecticut General Statutes 22a-174i) Utilities/Private IncentivesNatural Gas Infrastructure and Technical AssistanceSouthern Connecticut Gas Company and Connecticut Natural Gas provide technical and advisory assistance for alternative fuel fueling station construction, fleet management, and vehicle conversions. Both utilities will assist fleet operators with natural gas vehicle planning, purchases, converting vehicles to operate on natural gas, and fueling station construction on a project-specific basis. Point of ContactMichael Smalec Connecticut Points of Contact:
District of Columbia Incentives and LawsLast Updated September 2008 The District of Columbia is the home of the Washington Metropolitan Clean Cities Coalition. Coordinator contact information is listed in the Points of Contact section. State IncentivesHybrid Electric Vehicle (HEV) and Alternative Fuel Vehicle (AFV) Tax ExemptionThe District of Columbia Department of Motor Vehicles Reform Amendment Act of 2004 allows for the exemption of vehicle excise taxes for owners of HEVs, AFVs, electric, fuel cell and lean-burn vehicles, provided that the vehicle qualifies for the federal tax credit under the Energy Policy Act of 2005. Additionally, vehicle registration fees for qualified HEVs and AFVs are reduced to $36 per year. (Reference District of Columbia Code 50-2201.03(j)(3) and 50-1501.03) Alternative Fuel Vehicle Exemption from Driving RestrictionsClean fuel vehicles are exempt from time-of-day and day-of-week restrictions and commercial vehicle bans, if part of a fleet that operates at least 10 vehicles in an ozone non-attainment 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. A clean fuel vehicle is defined as a motor vehicle that has been certified to meet a set of emission standards that classifies it as a clean fuel vehicle. (Reference District of Columbia Code 50-714) State Laws and RegulationsLow Emission Vehicle (LEV) StandardsUnder the Clean Cars Act of 2008, the Mayor must establish a LEV program by adopting the California emissions standards and compliance requirements applicable to vehicles for Model Year 2012 and each model year thereafter, as set forth in Title 13 of the California Code of Regulations. The Mayor may adopt, by rule, motor vehicle programs for emissions inspection, recall, and warranty requirements; may work in cooperation, and enter into agreements with, other states to administer requirements of the program; must work in conjunction with other states to promote and facilitate the regional adoption of similar low-emissions vehicle programs; and must educate the residents of the District on the requirements of any adopted LEV program.(Reference Legislative Bill 17-0099, 2008) Alternative Fuel Vehicle (AFV) Acquisition RequirementsFor covered fleets, 70% of newly purchased vehicles with a Gross Vehicle Weight Rating (GVWR) of 8,500 pounds (lbs.) or less, and 50% of vehicles with a GVWR between 8,500 lbs. and 26,000 lbs., must be clean fuel vehicles. A clean fuel is any fuel, including methanol, ethanol (including E85), reformulated gasoline, diesel, natural gas, liquefied petroleum gas, hydrogen, or other power source (including electricity) used in a clean fuel vehicle that complies with standards and requirements applicable to such vehicles when using these fuels or other power source. (Reference District of Columbia Code 50-703) Idle Reduction RequirementA diesel or gasoline powered motor vehicle is not be allowed to operate for more than three consecutive minutes when the vehicle is not in motion, except under the following conditions: 1) to operate power takeoff equipment including, but not limited to, cement mixers, refrigeration systems, and delivery vehicles; 2) to operate air conditioning equipment on a bus for 15 minutes when 12 or more passengers are on board; or 3) to operate heating equipment for five minutes when the ambient temperature is 32 degrees Fahrenheit or below. Violators will be issued a fine of $650, with the fine for subsequent infractions being double the initial amount up to the maximum penalty of $5,200. (Reference District of Columbia Municipal Regulations Title 20, Chapter 9, Section 900.1) Utilities/Private IncentivesNatural Gas Fueling Infrastructure AssistanceWashington Gas supports the use of natural gas vehicles and will assist with studying the feasibility of providing natural gas service to local, state, and federal government and commercial fleets interested in owning and operating compressed natural gas fueling stations. Point of ContactRene Martinez District of Columbia Points of Contact:
Delaware Incentives and LawsLast Updated August 2008 Delaware is the home of the Delaware Clean State Program. Coordinator contact information is listed in the Points of Contact section. State IncentivesThere are currently no known State incentives offered in Delaware State Laws and RegulationsLow-Speed Vehicle Access to RoadwaysA low-speed vehicle is defined as a four-wheeled motor vehicle, other than a truck, with a gross vehicle weight rating of less than 2,500 pounds that is capable of operating at a speed of at least 20 miles per hour (mph) but not greater than 25 mph. A low-speed vehicle may not operate on roads with a posted speed limit of greater than 35 mph. The vehicle must comply with safety standards contained in Title 49 of the Code of Federal Regulations, Section 571.500, and meet state insurance, titling, and registration requirements. (Reference Delaware Code Title 21, Chapter 21, Section 2113A) Alternative Fuel Tax ExemptionTaxes imposed on alternative fuels used in official vehicles for the U.S. or any Delaware state governmental agency, including volunteer fire and rescue companies, are waived. Additionally, 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) Idle Reduction RequirementAll on-road heavy-duty motor vehicles with a gross vehicle weight rating of 8,500 pounds or greater, operating in Delaware, may not idle for more than three consecutive minutes when the vehicle is stationary. Violators are subject to penalties of not less than $50 and up to $500 for each offense. Heavy-duty vehicles subject to this regulation include long-haul and delivery trucks, and transit and school buses. Emergency fire, rescue, and lifesaving vehicles are exempt. Other vehicle operating situations may fall under the exemption section of the regulation. (Reference Delaware Department of Natural Resources and Environmental Control Regulation 1145) Utilities/Private IncentivesCompressed Natural Gas (CNG) Fuel Rate ReductionChesapeake Utilities has one publicly accessible quick-fill CNG fueling station in Dover. CNG is offered at a 20% discount as compared to the American Automobile Association (AAA) list price. Point of ContactRalph Schieferstein Propane Infrastructure Assistance and Fuel Rate ReductionSchagrinGAS provides propane tanks, pumps, and meters at no cost to customers on a case-by-case basis. SchagrinGAS offers a 10% discount on propane to fleets that use the fuel to operate their vehicles. Point of ContactAndy Lambert Delaware Points of Contact:
Florida Incentives and LawsLast Updated June 2008 Florida is the home of the Space Coast (www.clean-cities.org) and the Gold Coast (www.sfrpc.com/fgcccc.htm) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section. State IncentivesAlternative Fuels Production IncentiveThe Innovation Incentive Program is created within the Office of Tourism, Trade, and Economic Development to provide resources for business projects that allow the state to effectively compete 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 provided by the applicant or other available sources; and be located in the state of Florida. Additional criteria may apply. For the purposes of this incentive, alternative and renewable energy means electrical, mechanical, or thermal energy produced from a method that uses 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. (Reference House Bill 7135, 2008, and Florida Statutes 377.804) Renewable Energy GrantsThe Renewable Energy Technologies Grants Program provides matching grants for demonstration, commercialization, research, and development projects relating to renewable energy technologies, including those generating or utilizing hydrogen or biomass resources. (Reference Florida Statutes 377.804) Hydrogen and Biofuels Tax ExemptionThrough July 1, 2010, the sale or use of the following is exempt from Florida state sales, rental, use, consumption, distribution, and storage tax: 1) hydrogen powered vehicles and related materials, and hydrogen fueling stations, up to a maximum of $2 million in taxes in each fiscal year in aggregate; 2) materials used in the distribution of biodiesel (B10-B100) and ethanol (E10-E100), including fueling infrastructure, transportation, and storage, up to a maximum of $1 million in taxes in each fiscal year for all taxpayers. Gasoline fueling station dispenser retrofits for ethanol (E10-E100) distribution also qualify for this exemption. (Reference Florida Statutes 212.08) Hydrogen and Biofuels Investment Tax CreditA credit against the state sales and use tax is available
for costs incurred between July 1, 2006, and June 30, 2010, for the
following: 1) 75% of all capital, operation and maintenance, and research
and development costs incurred in connection with an investment in
hydrogen-powered vehicles and hydrogen vehicle fueling stations in the
state, up to a maximum of $3 million in each fiscal year for all taxpayers;
and 2) 75% of all capital operation and maintenance, and research and
development costs incurred in connection with an investment in the
production, storage, and distribution of biodiesel (B10-B100) and ethanol
(E10-E100) in the state, up to a maximum of $6.5 million in each fiscal year
for all taxpayers. This includes the costs of constructing, installing, and
equipping such technologies; gasoline fueling station dispenser retrofits
for ethanol (E10-E100) distribution also qualify. High Occupancy Vehicle (HOV) Lane ExemptionInherently Low Emission Vehicles (ILEV) and hybrid electric vehicles (HEV) that are certified and labeled in accordance with federal regulations may be driven in HOV lanes at any time, regardless of the number of passengers in the vehicle. All eligible ILEVs and HEVs must comply with the minimum fuel economy standards set forth in Title 23 of the U.S. Code, section 166(f)(3)(B). The vehicle must display a decal issued by the Florida Division of Motor Vehicles, obtained for a $5 fee, and be renewed annually. Vehicles with decals may use any HOV lane designated as a HOV toll lane without requiring payment of the toll. An HEV is defined as a motor vehicle that draws propulsion energy from onboard sources of stored energy comprised of both an internal combustion engine using combustible fuel and a rechargeable energy storage system, and meets or exceeds the qualifying California standards for a low emission vehicle. (Reference House Bill 7135, 2008, Senate Bill 682, 2008, and Florida Statutes 316.0741) Point of ContactFlorida Division of Motor Vehicles State Laws and RegulationsEthanol Blend MandateBeginning December 31, 2010, all gasoline sold or offered for sale in the state by a terminal supplier, importer, blender, or wholesaler must contain 9-10% ethanol by volume (E10). The fuel mandate does not apply to fuel used in aircrafts or watercrafts, fuel sold to a blender, or fuel sold for use in collector vehicle, off-road vehicles, motorcycles, or small engines. If a terminal supplier, importer, blender, or wholesaler is unable to obtain ethanol fuel or E10 at the same or lower price as unblended gasoline, then the covered entity may apply for a waiver. (Reference House Bill 7135, 2008) Fuel-Efficient Vehicle Acquisition and Alternative Fuel Use RequirementsWhen procuring new vehicles under a state purchasing plan, all state agency, state university, community college, and local government fleets must select the vehicle with the greatest fuel efficiency available for a given use class. Exceptions may be made for emergency responder vehicles when documentation is provided. 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 procure ethanol and biodiesel fuels to use in their vehicle fleet to the greatest extent possible. (Reference House Bill 7135, 2008) Alternative Fuels StudyThe Florida Energy and Climate Commission (FECC) is required to conduct a study to evaluate and recommend lifecycle greenhouse gas (GHG) emissions associated with all renewable fuels including biodiesel, renewable diesel, biobutanol, and ethanol derived from any source. FECC must also evaluate and recommend that all renewable fuels introduced into state commerce reduce lifecycle GHG emissions by an average percentage. FECC may also evaluate and recommend the benefits associated with the creation, banking, transfer, and sale of GHG emissions credits among fuel refiners, blenders, and importers. FECC must submit specific recommendations to the state legislature no later than December 31, 2010. (Reference House Bill 7135, 2008) Biofuels PromotionThe Florida Department of Management Services (DMS), in coordination with the Florida Department of Transportation (DOT), is required to conduct an analysis of fuel additives and biofuels use by the DOT through its central fueling facilities. The DMS is required to encourage other state government entities to analyze transportation fuel usage, including the types and percentages of fuels consumed, and report such information to the DMS. (Reference House Bill 7135, 2008) Provision for Renewable Fuels InvestmentIn order to create jobs and improve the state’s general infrastructure, the Florida State Board of Administration may identify and invest up to 1.5% of the net assets of the system trust fund in technology and growth investments of businesses housed in the state of Florida, including biofuels, renewable energy, and other related applications. The State Board of Administration may offer opportunities to small, state-based investment management firms to facilitate their development and growth. (Reference Senate Bill 2310, 2008) Idle Reduction RequirementBeginning December 15, 2008, idling of any vehicle for more than five minutes is prohibited. Exemptions apply in the following circumstances: traffic conditions; emergency or law enforcement purposes; verification that a vehicle is safe to operate; power work-related operations; or prevention of safety or health emergencies. Until September 30, 2013, exemptions also apply for sleeping or resting in a sleeper berth. (Reference Florida Administrative Code 62-285-420) Low-Speed Vehicle Access to RoadwaysA low speed vehicle, including a neighborhood electric vehicle, is defined as any four-wheeled electric vehicle capable of achieving a top speed between 20 and 25 miles per hour. Low speed vehicles must comply with the safety standards in Title 49, Code of Federal Regulations, sections 571.500 and 316.2122. (Reference Florida Statutes 320.01 (42)) State Energy Task ForceThe Florida Renewable Energy Technologies and Energy Efficiency Act is established to increase the state's energy stability and protect public health by advancing the development of efficient and renewable energy technologies, including those related to hydrogen, ethanol, and biodiesel. The Act creates the Florida Energy Commission, which is responsible for developing recommendations for legislation to establish a state energy policy, focusing on energy-efficiency issues including the encouragement of in-state research, development, and deployment of alternative fuels for motor vehicles. As required by the Act, the Florida Department of Environmental Protection provided a report entitled Leadership by Example: Energy Efficiency and Conservation (PDF 188 KB), which includes a description of state programs designed to achieve energy conservation and energy efficiency through the inclusion of alternative fuel vehicles in state fleets. (Reference Florida Statutes 377.801-377.806 and 377.901) Point of ContactGeneral Inquiries Alternative Fuels TaxA person operating an alternative fuel vehicle (AFV) must purchase an annual decal from the Florida Department of Motor Vehicles in lieu of the excise tax on gasoline. Fueling stations are not allowed to fuel an AFV 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 imposed by this section, a person fueling a vehicle from their own facility is required to pay a local alternative fuel fee in lieu of each cent of excise tax levied by a county (Reference Florida Statutes 206.877) Alternative Fuel LicenseAn individual who wishes to be a wholesale distributor of an alternative fuel must first obtain a license from the Florida Department of Revenue. (Reference Florida Statutes 206.89) Electric Vehicle (EV) Surcharge ExemptionEVs are protected from insurance surcharges based on factors such as new technology, passenger payload, weight-to-horsepower ratio, and the types of material used to manufacture the vehicle, unless the Office of Insurance Regulation receives actuarial data that determines the surcharges are justified. (Reference Florida Statutes 627.06535) Ethanol Production CreditCounty governments are eligible to receive waste reduction credits for the use of yard clippings, clean wood waste, or paper waste as feedstock for the production of clean-burning fuels such as ethanol. (Reference Florida Statutes 403.706) Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Florida Florida Points of Contact:
Georgia Incentives and LawsLast Updated April 2008 Georgia is the home of the Atlanta (www.cte.tv/cca/cleancitiesatl.html) and Middle Georgia (www.mga-cleancities.com) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section. State IncentivesAlternative Fuel Production Facility Tax ExemptionTangible personal property used in or for the construction of an alternative fuel production facility dedicated to the production of ethanol, biodiesel, butanol, and their by-products are exempt from the state sales and use tax. 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 to qualify. The tax exemption does not apply to property purchased after the production and processing of alternative fuels has begun at the facility. The exemption applies to tangible personal property purchased between July 1, 2007, and June 30, 2012. (Reference Georgia Code 48-8-34.4) Zero Emission Vehicle (ZEV) Tax CreditAn income tax credit is available for up to 20% of the cost to purchase or lease a ZEV, or $5,000, whichever is less. ZEVs include, but are not limited to, battery-only electric vehicles and hydrogen fuel cell vehicles. Low-speed vehicles do not qualify for this credit. The credit cannot exceed the taxpayer's income tax liability, but any portion of the credit not used in the year the ZEV is purchased or leased can be carried over for up to five additional years. (Reference Georgia Code 48-7-40.16) Point of ContactJames Udi Alternative Fuel Vehicle (AFV) Tax CreditAn income tax credit is available for the purchase, lease, or conversion of a vehicle that operates solely on an alternative fuel and meets the U.S. Environmental Protection Agency (EPA) certification of a Low Emission Vehicle (LEV). The credit is worth up to 10% of the cost of a new AFV or up to 10% of the cost of converting the vehicle to operate on an alternative fuel, or $2,500, whichever is less. The credit cannot exceed the taxpayer's income tax liability, but any portion of the credit not used in the year the AFV is purchased or converted can be carried over for up to five additional years. This incentive does not apply to hybrid electric vehicles. (Reference Georgia Code 48-7-40.16) Point of ContactJames Udi Electric Vehicle (EV) Charger Tax CreditAn income tax credit is available to any eligible business enterprise for the purchase or lease of each EV charger that is located in the state. The amount of the credit is 10% of the cost of the charger or $2,500, whichever is less. (Reference Georgia Code 48-7-40.16) Point of ContactJames Udi Alternative Fuel Vehicle (AFV) High Occupancy Vehicle (HOV) Lane ExemptionAFVs displaying the proper alternative fuel license plate are allowed to use HOV lanes, regardless of the number of passengers. (Reference Georgia Code 32-9-4 and 40-2-76) State Laws and RegulationsEstablishment of E85 Fueling Infrastructure Grant ProgramThe Department of Community Affairs is required to establish a grant program for E85 infrastructure projects. The grant program will be administered by the Georgia Environmental Facilities Authority. Grants of up to $20,000, or 1/3 of the total planned project cost, will be made available for each approved project. Construction for any approved project must begin no later than six months after the date the grant is issued and must be complete within one year of receipt of the grant. No grants will be made after July 1, 2009. (Reference Georgia Code 50-8-170) Biodiesel Study CommitteeThe state Senate has created a Senate Biodiesel Fuel Study Committee to study the conditions, needs, and issues associated with expanding biodiesel use and production in the state of Georgia. The Committee may meet as often as necessary to carry out these duties and report their findings and recommendations, if any, on or before December 1, 2008. (Reference Senate Resolution 1201, 2008) Alternative Fuel Use and Alternative Fuel Vehicle (AFV) Acquisition RequirementsState agencies and departments are required to 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 are required to maximize the purchasing of gasoline blended with ethanol and diesel fuel blended with biodiesel for use in state vehicles when available and economically practical. On December 15, 2006, the Governor's Energy Policy Council finalized the first Comprehensive State Energy Strategy, which offers a suggested approach toward a sustainable energy future for Georgia and includes implementation strategies related to alternative fuel production and use. (Reference Executive Order 02.28.06.02, 2006) Biodiesel SpecificationsBiodiesel 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) Provision for Hybrid Electric Vehicle (HEV) High Occupancy Vehicle (HOV) Lane ExemptionThe Georgia Department of Revenue and the Georgia Department of Natural Resources are authorized to develop a list of HEV models that qualify for an HOV lane exemption regardless of the number of passengers, pending federal legislative or regulatory approval. The U.S. Environmental Protection Agency (EPA) issued a Notice of Proposed Rulemaking in May 2007. A final rule is expected in September 2008, which will include criteria for defining exempt HEVs. The Georgia Department of Transportation (GDOT) must determine whether allowing the qualifying HEVs to travel in HOV lanes would degrade the performance of the lanes. Refer to the GDOT Web site for more information. (Reference Georgia Code 32-9-4) Hybrid Electric Vehicle (HEV) DefinitionAs defined by the Georgia Code, the definition of an alternative fuel vehicle includes HEVs. An HEV is defined as a motor vehicle that draws propulsion energy from onboard sources of stored energy, which includes an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system. HEVs must meet federal Clean Air Act and California emissions standards, meet or exceed the federal Bin 5 Tier II emission levels, and have a fuel economy that is 1.5 times the Model Year 2002 U.S. Environmental Protection Agency composite class average for the same vehicle class. (Reference Georgia Code 40-2-76) Motor Fuel Excise TaxAn excise tax is imposed at the rate of $0.075 per gallon on distributors who sell or use motor fuel in Georgia. Motor fuels that are not commonly sold or measured by the gallon, and are used in any motor vehicles on public highways, may be 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) Compressed Natural Gas (CNG) PermitThere is a one-time fee of $100, collected by the state Safety Fire Commissioner, for a permit to dispense CNG for vehicle use. (Reference Georgia Code 25-2-4.1) Idle Reduction Regulation - AtlantaThe City of Atlanta prohibits the idling of a truck or bus for more than 15 minutes on any street or public place. Exceptions include emergency vehicles, utility company, construction, and maintenance vehicles where the engines must run to perform needed work, or a vehicle that is forced to remain motionless because of traffic conditions. If the ambient temperature is less than 32 degrees Fahrenheit, idling is limited to a maximum of 25 minutes. In addition, any vehicle that uses electricity or compressed natural gas as the primary fuel source is exempt from idling limitations. (Reference Atlanta Code of Ordinances 150-97(c)) Utilities/Private IncentivesCompressed Natural Gas (CNG) Infrastructure Technical AssistanceAtmos Energy offers preliminary feasibility studies and energy analysis for CNG fueling stations and assists with vendor selection on a case-by-case basis. Point of ContactWalter C. Miller Compressed Natural Gas (CNG) Infrastructure AnalysisAGL Resources and its subsidiaries (Atlanta Gas Light, Chattanooga Gas, Elkton Gas, Florida City Gas, Elizabethtown Gas, and Virginia Natural Gas) offer preliminary feasibility studies and energy analysis to assist in evaluating potential CNG fueling stations for fleet applications. Point of ContactIan Skelton Georgia Points of Contact:
Hawaii Incentives and LawsLast Updated June 2008 Hawaii is the home of the Honolulu Clean Cities Coalition (www.hawaii.gov/dbedt/ert/cc). Coordinator contact information is listed in the Points of Contact section. State IncentivesBusiness Investment Tax CreditThrough December 31, 2010, taxpayers making a high technology business investment are eligible for a tax credit the year in which the investment is made and for the proceeding four years. A "qualified high technology business" is one in which more than 50% of the activities are qualified research (75% of which is conducted in Hawaii) and in which more than 75% of the income (i.e. income from products sold from, manufactured or produced in Hawaii or from services performed in Hawaii) is derived from qualified research. "Qualified research" includes research that is related to non-fossil fuel energy-related technology. The tax credit is equal to a percentage of the investment made, up to the following maximums:
If the tax credit exceeds the taxpayer's income tax liability for any of the five years that the credit is taken, the excess of the tax credit may be used as a credit in subsequent years until exhausted. A taxpayer may continue to claim the credits if the five-year period to claim the credits commences in taxable years beginning before January 1, 2010. (Reference Hawaii Revised Statutes 235-7.3 and 235-110.9) Point of ContactHawaii State Department of Taxation Ethanol Production IncentiveAn income tax credit is available for qualifying ethanol production facilities equal to 30% of nameplate capacity between 500,000 and 15 million gallons per year. . The facility must produce at least 75% of its nameplate capacity to be eligible to receive the tax credit in that year, and the tax credit may be taken for up to eight years. The credit is only available to the first 40 million gallons of ethanol produced per year. Qualifying ethanol production facilities must be in operation prior to January 1, 2017. (Reference Hawaii Revised Statutes 235-110.3) State Laws and RegulationsAlternative Fuels PromotionThe state of Hawaii has signed a Memorandum of Understanding (MOU) with the U.S. Department of Energy (DOE) Assistant Secretary for Energy Efficiency and Renewable Energy (EERE) to establish the Hawaii Clean Energy Initiative. DOE and the state pledge to collaborate to produce 70% of the state’s energy needs from renewable sources by 2030. The goals of the partnership include defining the structural transformation required to transition the state to a clean energy-dominated economy; demonstrate and foster innovation in the use of clean energy, including alternative fuels; create opportunities for the widespread distribution of clean energy benefits; establish an open learning model for other states and entities to adopt; and build a workforce with cross-cutting skills to support a clean energy economy in the state. For more information about Hawaii Clean Energy Initiative, see the full text of the MOU (PDF 108 KB). Download Adobe Reader Biofuels Production Land Use AllowanceIn order 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 facilities must be integrated with an agricultural activity and may not adversely impact agricultural land and other agricultural uses in the vicinity. Biofuels production facilities include facilities that produce liquid or gaseous fuels from organic sources such as biomass crops, agricultural residues, food wastes, and oil crops including palm, canola, soybean, and waste cooking oils. (Reference Senate Bill 2849, 2008) Idle Reduction RegulationNo gasoline- or diesel-powered vehicle may idle at a loading zone, parking or service area, route terminal, or other off-street areas, except for the following situations: during adjustment or repair of the engine; during auxiliary vehicle operations such as cranes and certain bulk carriers, provided no visible smoke is emitted and the vehicle is being used for its intended purpose; during loading and unloading of passengers, not to exceed three minutes; and during engine start-up and cool-down, not to exceed three minutes. (Reference Hawaii Administrative Rules 11-60.1-34) Alcohol Fuel Tax ExemptionAlcohol fuel sold for consumption or use by the purchaser is exempt from state excise tax. For the purpose of this exemption, alcohol fuel is defined as neat biomass-derived alcohol liquid fuel or a mixture of petroleum-derived fuel and alcohol fuel consisting of at least 10% denatured biomass-derived alcohol that is used to fuel a motor vehicle. A producer, wholesaler, or retailer of alcohol fuels must pass any savings from this exemption on to the consumer. This exemption expires June 30, 2009. (Reference Hawaii Revised Statutes 237-27.1) Energy Feedstock ProgramThe Energy Feedstock Program was established within the Department of Agriculture to promote and support the production of energy feedstock in Hawaii and 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) Energy-Efficient Vehicle Acquisition RequirementsOnce the state has met its federal and state vehicle
purchase mandates, state agencies are required to purchase the most
fuel-efficient vehicles that meet the needs of their programs, provided that
a life-cycle cost benefit analysis of vehicle purchases includes projected
fuel costs. All state agency light-duty vehicle (LDV) procurements must
contain at least 40% energy-efficient vehicles as part of their annual
vehicle acquisition plans. For each subsequent fiscal year, the percentage
of energy-efficient vehicles must be five percent higher than the previous
year, until at least 75% of each covered fleet's newly purchased LDVs are
energy-efficient vehicles. Exclusions and exemptions may apply. Biofuels Procurement PreferenceState 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 defined as a vegetable oil-based fuel that meets ASTM specification D6751. Biofuel is defined as 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 Development SupportThe state is responsible for facilitating the development of alternative fuels and supporting the attainment of a statewide alternative fuels standard. The alternative fuels standard will be as follows: 10% of highway fuel use to be provided by alternative fuels by 2010, 15% by 2015, and 20% by 2020. For the purposes of the alternative fuels standard, ethanol produced from cellulosic materials is to be considered the equivalent of 2.5 gallons of non-cellulosic ethanol. (Reference Hawaii Revised Statutes 196-42) Hydrogen Energy Plan and FundA Hawaii Renewable Hydrogen Program has been established
within the state Department of Business, Economic Development, and Tourism
to manage the state's transition to a renewable hydrogen economy. A Hydrogen
Investment Capital Special Fund has been created to provide seed capital
for, and venture capital investments in, private sector and federal projects
for research, development, testing, and implementation of the Hawaii
Renewable Hydrogen Program. The Hawaii Renewable Hydrogen Program is
responsible for designing, implementing, and administering activities
including: Renewable Fuel StandardAt least 85% of Hawaii's unleaded gasoline must be fuel blends containing at least 10% ethanol (E10). Gasoline blended with an ethanol-based product, such as ethyl tertiary butyl ether, will be considered to be in conformance with this requirement. Retail fuel distributors must meet this requirement and report to the state Petroleum Commissioner (the Administrator of the Energy, Resources, and Technology Division of the Department of Business, Economic Development, and Tourism) on a monthly basis. (Reference Hawaii Revised Statutes 486J-10 and Hawaii Administrative Rules Title 15, Department of Business, Economic Development and Tourism, Chapter 35) Point of ContactHawaii Department of Business, Economic Development, and
Tourism Neighborhood Electric Vehicle (NEV) Access to RoadwaysAn NEV may not operate at speeds of more than 25 miles per hour (mph) and is only permitted on roads with speed limits 35 mph or less. An NEV must have a notice of the operational restrictions pertaining to the vehicle permanently attached to, or painted on, the vehicle in a location that is in clear view of the driver. An NEV is a self-propelled electrically powered motor vehicle that is emission free, has four wheels in contact with the ground, has a gross vehicle weight rating of less than 2500 pounds, and conforms to the minimum safety equipment requirements contained in Title 49 of the Code of Federal Regulations, section 571.500. (Reference Hawaii Revised Statutes Sections 286-2, 286-41, and 291C-134) Alternative Fuel Tax RateA distributor of any alternative fuel for operation in an internal combustion engine is required to pay a license tax of $0.025 for each gallon of alternative fuel sold or used by the distributor. In addition, a distributor is required to pay a license tax for each gallon of fuel sold or used by the distributor for operating a motor vehicle(s) 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. (Reference Hawaii Revised Statutes Section 243-4) Utilities/Private IncentivesPropane Vehicle Technical AssistanceThe Gas Company, LLC offers technical assistance to operators of liquefied petroleum gas vehicles. Point of ContactHoku Keolanui Hawaii Points of Contact:
Iowa Incentives and LawsLast Updated June 2008 Iowa is the home of the Iowa Clean Cities Coalition (www.energy.iowa.gov/ICCC/index.html). Coordinator contact information is listed in the Points of Contact section. State IncentivesEthanol Blend Retailer Tax CreditA tax credit is available to retail service stations at which more than 60% of their total gallons of gasoline sold and tracked through metered pumps is blended with ethanol. Once station owners surpass the 60% threshold, they are eligible for a tax credit of $0.025 for every additional gallon of gasoline blended with ethanol and sold during the tax year, through December 31, 2008. Beginning January 1, 2009, an Ethanol Promotion Tax Credit will replace the current incentive for each gallon of ethanol sold. The Ethanol Promotion Tax Credit will provide a $0.065 tax credit to any retailer meeting the renewable fuel standard (RFS) schedule for a given year. For retailers within 2% and 4% of meeting the RFS schedule, the tax credit will be $0.045 and $0.025, respectively, for every gallon of ethanol sold. (Reference Iowa Code 422.11C, 422.11N, and 422.33) E85 Retailer Tax CreditA tax credit is available to retail stations dispensing E85 for use in motor vehicles in the amount of $0.25 per gallon sold in calendar year 2008, $0.20 per gallon for calendar years 2009 and 2010, and $0.10 per gallon in calendar year 2011. After 2011, the tax credit decreases by $0.01 per year and expires after December 31, 2020. Taxpayers claiming the E85 tax credit may also claim the tax credit available for retail ethanol blends for the same tax year and same gallon of fuel. (Reference Iowa Code 422.11O) Biodiesel Tax CreditThrough December 31, 2011, retailers whose diesel sales are at least 50% biodiesel (with a minimum content of 2% biodiesel) are eligible for a $0.03 per gallon tax credit on each gallon of B2 or higher blends sold. (Reference Iowa Code 422.11P) Biofuels Infrastructure GrantsThe Renewable Fuel Infrastructure Program provides financial assistance to E85 and biodiesel distributors. Cost-share grants are available for retailers to upgrade or install new E85 or biodiesel infrastructure, up to 70% of the total cost of the project or $50,000, whichever is less. Applicants may also qualify for supplemental incentives to upgrade or replace an E85 fueling dispenser, up to 75% of the cost of making the improvement or $30,000, whichever is less. 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 a cost-share grant for infrastructure upgrades and installations at biodiesel terminal facilities. Facilities blending or dispensing B2 to B98 are eligible for up to 50% of the total project or $50,000, whichever is less. Facilities blending or dispensing B99 or B100 are eligible for up to 50% of the total project or $100,000, whichever is less. The Renewable Fuels Infrastructure Board was established under the guidance of the Iowa Department of Economic Development; this 11-member board has authority to determine the eligibility of applicants (Reference House File 2689, 2008, and Iowa Code 15G.203-15G.204) Point of ContactDick Vegors Alternative Fuel Vehicle (AFV) Demonstration GrantsThe Iowa Department of Natural Resources conducts marketing and education outreach to encourage the use of alternative fuels and, contingent upon funding, also awards demonstration grants to individuals who purchase vehicles that operate on alternative fuels, including but not limited to, high ethanol content blends, compressed natural gas, electricity, solar energy, or hydrogen. (Reference Iowa Code 214A.19) Alternative Fuel Loan ProgramThe Alternate Energy Revolving Loan Program (AERLP) for alternative energy projects is administered by the Iowa Energy Center. Through a participation agreement with the project lender, the program provides up to half the cost of biomass or alternative fuels related fuel production projects, up to a maximum of $1 million per facility. The AERLP funds are provided at 0% interest with the lender's funds bearing market interest. Fuel production facilities must be located in Iowa. (Reference Iowa Code 476.46) Point of ContactKeith Kutz Alternative Fuel Production LoansThe Value-Added Agricultural Products and Processes Financial Assistance Program offers a combination of forgivable and traditional low-interest loans for business projects involving the production of alternative fuels. The mixture of forgivable and low-interest loans varies according to the size of the award. Research and development projects are not eligible for this program. Point of ContactBusiness Finance Program Alternative Fuel Production Tax CreditsThe Enterprise Zone Program and the High Quality Job Creation 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; additional funding for training new employees; and a local property tax exemption of up to 100% of the value added to the property. Point of ContactBusiness Finance Program Alternative Fuel Research and DevelopmentThe Iowa Power Fund, administered through the Office of Energy Independence, supports research, development, commercialization, and deployment of biofuels, renewable energy technologies, and energy efficiency technologies, while seeking to cut greenhouse gas emissions. The fund will educate the public about these technologies with the goal of increasing the demand for them. The $100 million fund will be run by an 18-member board, with oversight from a seven-member committee of legislative and university leaders. (Reference Iowa Code 469.9) State Laws and RegulationsRenewable Fuels Promotion and EducationThe Iowa Office of Energy Independence (OEI) is directed to develop a renewable fuels marketing plan to promote the state’s biofuels industry and present it to the governor and the general assembly by March 15, 2009. The plan will include research efforts to identify barriers to increased use of renewable fuels, such as infrastructure limitations and consumer awareness. Additionally, the OEI will conduct a direct marketing campaign that promotes the use of ethanol and biodiesel blends and targets owners of flexible fuel vehicles (FFV) and diesel powered vehicles, which will be completed by December 15, 2008. As part of this campaign, the OEI will provide consumers with information including, but not limited to, fueling station locations, cold weather handling and use of biodiesel, and engine warranty statements. (Reference House File 2689, 2008) E85 Fuel Exclusivity Contract RegulationsAny motor fuel franchise contract entered into or renewed on or after May 30, 2006, must allow for the delivery of E85 at any time demanded by the motor fuel dealer or allow the dealer to purchase E85 from another source. If a contract is already in effect on May 30, 2006, and does not have an expiration date, the franchisor must provide for the delivery of E85 at times demanded by the franchisee or allow the franchisee to purchase those volumes of E85 at those times from another source. (Reference Iowa Code 323A) Renewable Fuel StandardThe goal of the Iowa Renewable Fuel Standard is to replace 25% of gasoline in the state with biofuels (ethanol or biodiesel) by January 1, 2020. One provision of the standard is to require retailers to sell a certain percentage of renewable fuels as part of their total gasoline sales. Both biodiesel and ethanol count towards meeting the RFS schedule as follows:
(Reference Iowa Code 422.11N) Renewable Fuel Labeling RequirementIf motor vehicle fuel blended with a renewable fuel is sold from a motor vehicle fuel dispenser, the dispenser must have a decal affixed identifying the name of the renewable fuel. The decal may be different based on the type of renewable fuel used. For the purpose of this requirement, renewable fuel includes fuel blends of biodiesel and ethanol. If fuel blends containing more than 10% ethanol (E10) are being dispensed, the decal must include the following statement: “For Flexible Fuel Vehicles Only.” The Iowa Department of Agriculture and Land Stewardship (Department) may approve an application to place a decal in a special location on a pump with special lettering or colors if the decal appears clear and conspicuous to the consumer. The application must be made in writing to the Department. (Reference House File 2689, 2008, and Iowa Code 214A.16) Regional Biofuels Promotion PlanIowa has joined Indiana, Kansas, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform) (PDF 2 MB), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85. The state transportation, agriculture, and regulatory officials were required to report their corridor implementation plans to the Midwest Governors Association by April 1, 2008. Download Adobe Reader State Fleet Biofuels Use and Fuel EfficiencyAs part of the Green Government Initiative, the Iowa Office of Energy Independence (OEI), Department of Administrative Services, Department of Natural Resources, and Department of Transportation will lead a Biofuels Task Force. The Biofuels Task Force is directed to focus on issues including: increasing the use of biofuels by state agencies to the maximum amount feasible; and increasing the fuel efficiency of the state’s vehicle fleet. The Biofuels Task Force will set specific five- and ten-year targets related to these areas, which will be included in the Green Government Master Plan. Progress toward these goals will be tracked using a reporting system developed under the Green Government Initiative, and resulting data will be made public via the OEI whenever possible. (Reference Executive Order 6, 2008) Ethanol Blended Fuel Use RequirementState fleet gasoline vehicles may not operate using fuel other than ethanol blended gasoline, unless under emergency circumstances. Vehicles must be affixed with a brightly visible sticker that notifies the public that the motor vehicle uses ethanol blended gasoline. However, the sticker is not required for unmarked vehicles used for law enforcement or security purposes. (Reference Iowa Code 8A.362) Biodiesel Decal and Fuel UseAn Iowa Department of Transportation (IDOT) motor vehicle operating on biodiesel fuel must be affixed with a brightly visible sticker that notifies the public that the motor vehicle uses biodiesel fuel. Biodiesel fuel for use in IDOT vehicles may be purchased by IDOT using the biodiesel fuel revolving fund created in the state treasury. The fund consists of money received from the sale of Energy Policy Act (EPAct) credits banked by IDOT as of April 19, 2001, and other money obtained or accepted by IDOT for deposit in the fund. (Reference Iowa Code 307.20) Flexible Fuel Vehicle (FFV) Acquisition RequirementsBy June 30, 2009, at least 60% of fuel purchased for use in the state's fleet of FFVs must be E85. A "State Government E85 Use Plan" must be created and detail how this fuel use goal will be met and how the state and retailers will work together to ensure that all E85 purchases are electronically coded and reported accurately. The Department of Administrative Services will provide regularly updated lists of E85 fueling stations to state employees. (Reference Executive Order 3, 2007) Alternative Fuel Vehicle (AFV) Acquisition RequirementsA minimum of 10% of new light-duty vehicles purchased by institutions under the control of the state fleet administrator, 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, off-road maintenance work, or to pull loaded trailers are exempt from this requirement. (Reference Iowa Code 216B.3, 260C.19A, 262.25A, 307.21 and 904.312A) Alternative Fuel Vehicle (AFV) Conversion RegistrationWhen a motor vehicle is modified to use a different fuel type or to use more than one fuel type, the person whose name the vehicle is registered under must notify the county treasurer of the new fuel type or alternative fuel types within 30 days. If the vehicle uses, or may use, a special fuel, the county treasurer will issue a special fuel identification sticker. (Reference Iowa Code 321.41) Electric Vehicle (EV) Registration FeeThe annual registration fee for an EV is $25.00 unless the vehicle is more than five model years old, in which case the annual registration fee is reduced to $15.00. This section does not apply to low-speed EVs. (Reference Iowa Code 321.116) Low-Speed Vehicle Access to RoadwaysLow-speed vehicles are allowed access to roadways with posted speed limits of up to 35 miles per hour (mph). A low-speed vehicle may cross a street with a posted speed limit greater than 35 mph. (Reference Iowa Code 321.381A) Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Iowa Iowa Points of Contact:
Idaho Incentives and LawsLast Updated April 2008 Idaho is the home of the Yellowstone/Teton Clean Energy Coalition (www.yellowstonetetoncleanenergy.org) and the Treasure Valley Clean Cities Coalition (www.tvcleancities.org). Coordinator contact information is listed in the Points of Contact section. State IncentivesBiofuel Fueling Infrastructure Tax CreditFor taxable years beginning on or after January 1, 2007, and before December 31, 2011, qualified biofuel fueling infrastructure is eligible for a credit of up to 6% of the qualified investment against the corporate income tax. The allowable credit cannot exceed 50% of the income tax liability of the taxpayer. For the purpose of this incentive, biofuel is defined as any fuel offered for sale as a transportation fuel that is agriculturally derived and meets applicable ASTM standards including, but not limited to, ethanol, ethanol blended fuels, biodiesel, and biodiesel blended fuels. (Reference Idaho Statutes 63-3029M) Biofuels Tax DeductionLicensed motor fuel distributors may be eligible for a tax deduction based on the renewable content of the fuel. For pure biodiesel (B100), distributors may deduct the number of gallons sold to any person other than a licensed distributor during the tax reporting period. For a biodiesel blend, distributors may deduct the number of gallons of biodiesel contained in the blend that was imported, blended, or received from a licensed distributor who is a biodiesel producer during the tax reporting period; in the case of a licensed distributor who is also a producer, the deduction is only available when the producer sells biodiesel blends to a person who is not a motor fuel distributor licensed in Idaho. For ethanol blended fuel, distributors may deduct the number of gallons of denatured anhydrous ethanol contained in the fuel. The deduction may not exceed 10% of the volume of blended ethanol or biodiesel reported. (Reference Idaho Statutes 63-2407) Point of ContactJohn Crockett State Laws and RegulationsState Agency Petroleum Reduction PlanAll executive branch state agencies are required to reduce the petroleum consumption of their fleets by increasing the fuel economy of their vehicles and reducing the number of miles driven by each employee. Agencies must also give priority to acquiring hybrid electric vehicles and other fuel-efficient, low-emissions vehicles. (Reference Executive Order 2007-21) Biofuel Fueling Infrastructure Grant FundThe Rural Idaho Economic Development Biofuel Infrastructure Matching Grant Fund (Fund) is established to provide grants for up to 50% of the cost of installing new fueling infrastructure dedicated to offering biofuels for retail sale, or for upgrading existing fueling infrastructure in order to be compatible with biofuels for the purpose of offering biofuels for sale. The Fund will be administered by the Energy Division of the Department of Water Resources and expires on July 1, 2012. (Reference Idaho Statutes 42-1806) Neighborhood Electric Vehicle (NEV) Access to RoadwaysAn NEV is defined as a self-propelled, electrically-powered, four-wheeled motor vehicle that does not produce emissions and conforms to the definition and requirements for low-speed vehicles as adopted in the federal motor vehicle safety standards under Title 49 of the Code of Federal Regulations, Part 571. An NEV must be titled, registered, and insured according to Idaho law and may only be operated by a licensed driver. NEVs may not be driven on or across any highway with a speed limit greater than 25 miles per hour. (Reference Idaho Statutes 49-115, 49-123, 49-402, and 49-663) Liquefied Petroleum Gas (LPG) BoardThe Idaho LPG Public Safety Act established the LPG Board and requires that LPG dealers meet educational, experience, and examination qualifications, and hold a valid individual license. LPG facilities must also be licensed. (Reference Idaho Statutes 54-5301 to 54-5317) Biodiesel DefinitionsBiodiesel is defined as any fuel that is derived in whole or in part from agricultural 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) Ethanol Blended Fuel DefinitionEthanol blended fuel, such as gasohol, is defined as any gasoline blended with 10% or more of anhydrous ethanol. (Reference Idaho Statutes 63-2401) Alternative Fuels TaxThe motor fuel tax rate of $0.25 per gallon does not apply to special fuels dispensed into a motor vehicle that uses gaseous special fuels and displays a valid gaseous special fuels permit. Special fuels include compressed and liquefied natural gas, liquefied petroleum gas, hydrogen, and fuel suitable for use in diesel engines. The state excise tax on special fuels, determined on a gasoline gallon equivalent basis, still applies. Alternatively, an annual fee in lieu of the excise tax may be collected on a vehicle powered by gaseous special fuels, according to the gross vehicle weight rating of the vehicle. State government agencies are entitled to a refund of any special fuels tax paid to the vendor from which the fuel was purchased. No refund of special fuels tax shall be paid on special fuels used while idling a registered motor vehicle. 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, 63-2423, and 63-2424) Utilities/Private IncentivesNatural Gas Technical AssistanceQuestar Gas offers technical assistance to customers wishing to convert vehicles to operate on compressed natural gas. The company provides financial analysis and fleet consulting services for alternative fuel use comparisons. Point of ContactGordon Larsen Point of ContactJim Grambihler Idaho Points of Contact:
Illinois Incentives and LawsLast Updated October 2008 Illinois is the home of the Chicago Area Clean Cities Coalition (www.chicagocleancities.org). Coordinator contact information is listed in the Points of Contact section. State IncentivesBiofuels Production Facility GrantsThe Renewable Fuels Development Program provides grants for the construction or expansion of biodiesel and ethanol production facilities in Illinois. Each new facility must have a production capacity of at least 30 million gallons per year and an existing facility must expand its production capacity by at least 30 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. (Reference 20 Illinois Compiled Statutes 689/5 and 689/15) Point of ContactNorm Marek Clean Diesel Retrofit and Idle Reduction GrantsThe Illinois Clean Diesel Grant Program (Program) provides funding for the installation of diesel oxidation catalysts, closed crankcase ventilation systems, particulate matter filters, and anti-idling equipment, including direct-fired heaters and auxiliary power units. In addition, funding may be available for diesel-electric hybrid vehicles. The Program is part of the Illinois Green Fleets Initiative and targets school buses, shuttle buses, diesel vehicles operating in residential areas, and over-the-road trucks located and spending significant driving time in Illinois. Point of ContactDarwin Burkhart E85 Fueling Infrastructure GrantsThe Illinois E85 Infrastructure Development Program (Program) provides funding to establish new E85 fueling stations at retail gasoline facilities in Illinois. The Program, administered by the Illinois Department of Commerce and Economic Opportunity, will provide up to 50% of the total cost for converting an existing facility to dispense E85 (with a maximum grant of $3,000 per fueling station), or up to 30% of the cost to construct a new E85 fueling station or for a major modification to an existing fueling station (with a maximum grant of up to $30,000 per facility). The Program is currently on hold pending additional funding. Point of ContactNorm Marek Clean School Bus ProgramThe Illinois Clean School Bus Program provides funding to assist schools and school districts to reduce emissions from diesel-powered school buses through emission control retrofits; bus replacements; implementation of cleaner fuels, including biodiesel, propane, and natural gas; and support for emissions reduction policies, including those related to idle reduction. Funding may be restricted to certain counties with further funding being secured through federal grants and other resources to implement the program on a statewide basis. Point of ContactDarwin Burkhart Alternative Fuel Vehicle (AFV) and Alternative Fuel RebatesThe 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 federally certified AFV conversions (up to $4,000), and for the incremental cost of purchasing alternative fuels. Eligible fuels for the program include E85, diesel fuel blends containing at least 20% biodiesel (B20), natural gas, propane, electricity, and hydrogen. A vehicle is only eligible to receive one rebate in its lifetime. The AFV or conversion system must be purchased from an Illinois-based company or vendor, except if the vehicle is a heavy-duty specialty vehicle that is not sold in Illinois. Only hybrid electric vehicles fueled with alternative fuels are eligible. To be eligible for a fuel rebate, the majority of fuel purchases must be made 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 open to all Illinois residents, businesses, government units (except federal government), and organizations located in Illinois. (Reference 415 Illinois Compiled Statutes 120/30) Point of ContactDarwin Burkhart Alternative Fuel Vehicle (AFV) IncentivesThe Illinois Green Fleets Program recognizes and provides additional marketing opportunities for progressive fleets in Illinois that have a significant number of AFVs and use clean, domestically produced fuels. Point of ContactDarwin Burkhart Biofuels Research and DevelopmentThe Renewable Fuels Research, Development, and Demonstration Program is administered by the Illinois Department of Commerce and Economic Opportunity. The goals of this program are to promote and expand the use of biofuels such as ethanol and biodiesel as clean, renewable transportation fuels, and accelerate the commercialization of new renewable fuel technologies and products. The Biofuels Business Planning Grant Program, a subsidiary of the Illinois Renewable Fuels Research, Development, and Demonstration Program, provides grants of up to $25,000 for the development of business plans, engineering studies, design studies, permit applications, and legal work for potential new biofuel facilities in Illinois. Point of ContactNorm Marek State Laws and RegulationsBiodiesel Production TaxBeginning July 1, 2007, if a private biodiesel producer's total biodiesel motor fuel production is less than 5,000 gallons per year, the producer is subject to the annual state motor fuel tax. The return and payment of tax for a given year are due by January 20, of the following year. If the biodiesel producer's total production is 5,000 gallons or more per year, the producer must file returns and make state motor fuel tax payments on a monthly basis. The return and payment of tax 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, which is produced exclusively for personal use and not for sale; or 2) the blending of biodiesel fuel resulting in biodiesel blends, which is produced exclusively for personal use and not for sale. (Reference Illinois Compiled Statutes 505/2, 505/2a, and 505/2d) Biofuels Labeling RequirementFueling devices that dispense retail biodiesel motor fuel in blends of 5% biodiesel or greater must identify the biodiesel and biodiesel blends by the capital letter "B" followed by the numerical value representing the volume percentage of biodiesel fuel, such as B5, B10, B20, or B100. For devices dispensing motor fuel containing between B5 and B20 blends, either the specific blend must be identified, or a phrase such as "biodiesel blend between 5% and 20%" may be used. For blends above B20, the specific blend must be identified. Specific label format and size requirements apply. Devices dispensing motor fuel containing at least 1% ethanol must also be labeled according to specific labeling and size requirements. (Reference Illinois Compiled Statutes 370/4.1) Biofuels Education and PromotionThe Promote Illinois Ethanol and Biodiesel Act requires state agencies, including state-supported universities and colleges, to provide links from their Web sites to sites containing information on ethanol and biodiesel fuels. The links must connect to Web sites maintained and operated by state agencies and may also include links to private Web sites. (Reference House Bill 271, 2008, and 505 Illinois Compiled Statutes 150/1) State Energy PlanThe Green Governments Illinois Act (Act) demonstrates the state's commitment to reducing negative environmental impacts, reducing greenhouse gases, and preserving resources for current and future generations. The Act also aims to strengthen the capacity of units of local government and educational institutions to transition to a more environmentally sustainable future. The Act established the Green Governments Coordinating Council, the purpose of which is to fully integrate cost-effective environmental sustainability measures into the ongoing management systems, long-range planning, and daily operations of state agencies. The Council will initially focus on initiatives that include those related to energy efficiency, renewable energy, and alternative fuel vehicles. Participation in the provisions of the Act by units of local government and educational institutions is voluntary. (Reference Illinois Compiled Statutes 3954/1) State Energy Independence PlanThe Governor of Illinois developed an energy independence plan that sets a goal of replacing 50% of the state's energy supply with homegrown fuels by 2017. Specifically, in relation to biofuels, the plan will: 1) invest in renewable biofuels by providing financial incentives to build up to 20 new ethanol plants and five new biodiesel plants; and 2) increase the number of gasoline stations that sell biofuels, to ensure that all gasoline stations in the state offer E85 by 2017, and to help the auto industry increase the number of flexible fuel vehicles they produce and increase public awareness about E85. Global Warming Mitigation InitiativeThe Illinois Climate Change Advisory Group was created to provide recommendations to the Office of the Governor regarding climate change policy and the statewide reduction of greenhouse gas emissions. Strategies to address these issues include development of clean, renewable, and homegrown energy resources; and reducing greenhouse gas emissions though the production and use of biofuels and other alternative fuels. (Reference Executive Order 11, 2006) Idle Reduction RequirementA person that operates a diesel powered motor vehicle in certain counties may not cause or allow the motor vehicle, when it is not in motion, to idle for more than a total of 10 minutes within any 60-minute period. Specified areas include the counties of Cook, DuPage, Lake, Kane, McHenry, Will, Madison, St. Clair, and Monroe, and the townships of Oswego (Kendall County) and Aux Sable and Goose Lake (Grundy County). Exceptions apply, including those pertaining to vehicle weight, traffic, auxiliary power use, and emergency vehicles. (Reference 625 Illinois Compiled Statutes 5/11-1429) Biodiesel Blend Use RequirementThe following entities are required to use a biodiesel blend that contains at least 2% biodiesel (B2) when refueling 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 B2 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 and 415 Illinois Compiled Statutes 120/10) Neighborhood Vehicle Access to RoadwaysNeighborhood vehicles may only be operated on streets if authorized by the local government and where the posted speed limit is 35 miles per hour (mph) or less. Neighborhood vehicles are allowed to cross a road or street at an intersection where the road or street has a posted speed limit greater than 35 mph. Neighborhood vehicles are defined as self-propelled, electronically powered, four-wheeled motor vehicles (or a self-propelled, gasoline-powered four-wheeled motor vehicle with an engine displacement under 1,200 cubic centimeters) which are capable of attaining in one mile a speed of more than 20 mph, but not more than 25 mph, and which conform to federal regulations under Title 49 of the Code of Federal Regulations, Part 571.500. (Reference 625 Illinois Compiled Statutes 5/11-1426.1) State Agency Vehicle Acquisition Priorities and Biofuels UseThe Illinois Department of Central Management Services (CMS) is directed to take all actions necessary to enable the procurement of 2% biodiesel fuel blends (B2) for the state's diesel vehicle fleet and also investigate ways to increase availability of E85 for the state's flexible fuel vehicle (FFV) fleet. The CMS is directed to advise the Illinois Department of Commerce and Economic Opportunity in developing a plan to facilitate the use of E85 and B2 in the state fleet and expand the E85 and biodiesel fueling infrastructure. Additionally, the directors of all executive agencies using the state's fleet of FFVs are directed to implement policies and procedures requiring state employees to use E85 and B2 in state vehicles whenever practical. Furthermore, state agencies are permitted to establish priorities for the acquisition of FFVs, especially hybrid electric vehicles that are capable of using E85, as well as diesel vehicles capable of using biodiesel. (Reference Executive Order 7, 2004) Advanced Vehicle Acquisition and Biodiesel Fuel Use RequirementAll gasoline-powered vehicles purchased from state funds after July 1, 2007, must be flexible fuel vehicles (FFVs) or fuel efficient hybrid electric vehicles (HEVs). FFVs are defined as automobiles or light trucks that operate on either gasoline or E85 (85% ethanol, 15% gasoline). 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 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 from state funds that is fueled by diesel fuel must be certified by the manufacturer to run on 5% biodiesel (B5) fuel. The Chief Procurement Officer is permitted to 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) Ethanol Tax ExemptionSales and use taxes do not apply to ethanol-blended fuels containing between 70% and 90% ethanol sold between July 1, 2003, and December 31, 2013. These taxes apply to 100% of the proceeds from sales made thereafter. (Reference 35 Illinois Compiled Statutes 120/2-10, 105/3-10, and 105/3-44) Biodiesel Tax ExemptionSales and use taxes apply to 80% of the proceeds from the sale of biodiesel-blended fuels containing between 1% and 10% biodiesel made between July 1, 2003, and December 31, 2013. However, if these taxes are ever imposed at a rate of 1.25%, then 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% biodiesel. The taxes will apply to 100% of the proceeds from biodiesel sales made after December 31, 2013. (Reference 35 Illinois Compiled Statutes 120/2-10 and 105/3-10) Flexible Fuel Vehicle (FFV) RegistryIn an effort to support the production of ethanol, and create and expand markets for E85 and other biofuels in the state, the Secretary of State is required to create a database of registered FFVs. The information included in this database should include, but not be limited to, information about the zip code, vehicle make and model, the vehicle identification number of each FFV, and be able to be sorted by the number of vehicles per zip code. The database must be made available to the public in both print and electronic formats. (Reference 415 Illinois Compiled Statutes 120/22) Fleet User Fee ExemptionAn annual user fee of $20 per vehicle is imposed on fleets with 10 or more vehicles in defined areas. Owners of state, county, or local government vehicles or electric vehicles are exempt from this fee. Fees are collected into the Alternate Fuels Fund. (Reference 415 Illinois Compiled Statutes 120/35) Biofuels Preference for State Vehicle ProcurementIn awarding contracts that require procurement of vehicles, state agencies are permitted to 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 fuels produced from Illinois soybeans. (Reference 30 Illinois Compiled Statutes 500/45-60) State Vehicle Fuel Economy RequirementsState contracts for the purchase or lease of new passenger automobiles must specify the procurement of a vehicle model that can achieve at least the minimum average fuel economy in miles per gallon according to federal Corporate Average Fuel Economy requirements, and the most current mileage study published by the U.S. Environmental Protection Agency. This requirement does not apply to station wagons, vans, four-wheel drive vehicles, and emergency vehicles. Additionally, the state purchasing officer may make exemptions when there is a demonstrated need for a vehicle that does not meet the minimum average fuel economy standards. (Reference 30 Illinois Compiled Statutes 500/45-40) Corn-to-Ethanol Research Pilot PlantThe Energy Conservation and Coal Development Act was amended to continue the Illinois Ethanol Research Advisory Board's responsibility of managing and operating the National Corn-to-Ethanol Research Center (NCERC) Pilot Plant. The aim of the NCERC Pilot Plant is to reduce the cost of new production technologies, equipment, processes, feedstocks, and new value added co- and by-products. The Illinois Ethanol Research Advisory Board has six main responsibilities:
(Reference 110 Illinois Compiled Statutes 520/6.5 to 520/6.6) Alternative Fuel Vehicle Labeling RequirementVehicles powered by liquefied petroleum gas or compressed natural gas must visibly display identifying decals, as established by the National Fire Protection Association. (Reference 625 Illinois Compiled Statutes 5/12-704.3) Alternative Fuel Taxicab Regulation – ChicagoChicago taxi companies with 50 or more vehicles in their fleet as of April 1, 2006, must operate at least one alternative fuel taxi. No more than 2% of the taxi fleet's licensed taxicabs may be subject to this requirement. (Reference Municipal Code of Chicago 9-112-060 and City of Chicago Rules and Regulations for Taxicab Medallion License Holders Rule 5.01 (PDF 387 KB)) Download Adobe Reader Utilities/Private IncentivesNatural Gas Infrastructure Technical AssistanceAtmos Energy offers preliminary feasibility studies for compressed natural gas fueling stations and may assist with vendor selection on a case-by-case basis. Point of ContactWalter C. Miller Illinois Points of Contact:
Indiana Incentives and LawsLast Updated April 2008 Indiana is the home of the Central Indiana Clean Cities Alliance, Inc. (www.cicca.org) and the South Shore Clean Cities Coalition (www.southshorecleancities.org). Coordinator contact information is listed in the Points of Contact section. State IncentivesAlternative Fuel Vehicle (AFV) Manufacturer Tax CreditThe Indiana Economic Development Corporation (IEDC) may award tax credits under the Hoosier AFV Manufacturer Tax Credit to foster job creation, reduce dependency on imported energy sources, and reduce air pollution resulting from the manufacture or assembly of AFVs in Indiana. AFV manufacturers are eligible for tax credits of up to 15% of the qualified investment for which the credit is claimed. Qualified investments include expenditures in the state that are reasonable and necessary for the manufacture or assembly of AFVs. For the purpose of this incentive, AFVs are defined as vehicles designed to operate on E85, natural gas, liquefied petroleum gas, hydrogen, coal-derived liquid fuels, non-alcohol fuels derived from biological material, P-Series fuels, or electricity. Applications for this incentive must be reviewed and approved by the IEDC. The credit applies to taxable years beginning after December 31, 2006, and before December 31, 2012. Unused credits may be carried forward for up to nine consecutive taxable years. (Reference Indiana Code 6-3.1-31.9) E85 Fueling Station Grant ProgramThrough the E85 Fueling Station Grant Program administered by the Indiana State Department of Agriculture (ISDA), grants of up to $20,000 per location are available toward the purchase of new E85 fueling equipment or the conversion of existing equipment to allow for E85 fueling. Applications for this grant program must be reviewed and approved by the ISDA, and the total amount of grants awarded for all fiscal years may not exceed $1 million. (Reference Senate Bill 360, 2008, and Indiana Code 15-11-11) Point of ContactAnn Schmelzer E85 Storage Tank Cleaning GrantsLicensed fuel retailers in Indiana may be eligible for grants of up to $5,000 to be used for cleaning fuel storage tanks prior to introducing E85 into the storage tank. This grant program is offered by the Indiana Corn Marketing Council. Eligible licensed fuel retailers must be willing to commit to selling and actively promoting E85 for a minimum of two years. Point of ContactMark Walters Ethanol Production Tax CreditAn ethanol producer located in Indiana is entitled to a credit of $0.125 per gallon of ethanol produced, including cellulosic ethanol. Applications for this incentive must be reviewed and approved by the Indiana Economic Development Corporation. The amount of credits granted to a single taxpayer may not exceed the following amounts for all taxable years:
(Reference Indiana Code 6-3.1-28) E85 Fuel Retailer Tax CreditAn E85 retailer is allowed to deduct $0.18 from the required state gross retail tax for every gallon of E85 sold during reporting periods ending before July 1, 2020. The Indiana Department of Revenue will publish an annual notice in the Indiana Register to indicate the total amount of funding available for reimbursement. (Reference Indiana Code 6-2.5-7-5 and 6-2.5-7-5.5) E85 Fuel Use Tax CreditA political subdivision, defined as a municipal corporation or special taxing district, is entitled to a monthly E85 incentive payment if at least 75% of the fuel purchased in the preceding calendar month by the political subdivision was E85 for use in flexible fuel vehicles (FFVs). The amount of the monthly payment is equal to $33.33 for each FFV owned by the political subdivision and only applies for FFVs that have been owned by the political subdivision for less than five calendar years. This credit expires January 1, 2015. (Reference Indiana Code 8-14-2-8) Vehicle Research and Development GrantsThe Indiana 21st Century Research and Technology Fund is administered by the Indiana Economic Development Corporation and provides grants and loans to support proposals for economic development in areas including alternative fuel technologies and fuel-efficient vehicle production. (Reference Indiana Code 5-28-16-2) Point of ContactLinda Peterson-Roe Biodiesel Price PreferenceA 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 by volume or fuels that are primarily ester-derived (other than alcohol) made from biological materials, including oilseeds and animal fats, for use in operating compression and ignition engines. (Reference Indiana Code 5-22-15-19) Biodiesel Production Tax CreditA biodiesel producer located in Indiana is entitled to a credit of $1.00 per gallon of biodiesel produced. Applications for this incentive must be reviewed and approved by the Indiana Economic Development Corporation (IEDC). The total amount of credits granted to single taxpayer may not exceed $3 million for all taxable years, but may be increased to $5 million with prior approval from the IEDC. This tax credit is contingent upon funding and is currently not available. (Reference Indiana Code 6-3.1-27-8) Biodiesel Blending Tax CreditA biodiesel blender located in Indiana is entitled to a credit of $0.02 per gallon of blended biodiesel produced at a facility located in Indiana. Applications for this incentive must be reviewed and approved by the Indiana Economic Development Corporation, and the total amount of credits granted to single taxpayer may not exceed $3 million for all taxable years. This tax credit is contingent upon funding and is currently not available. (Reference Indiana Code 6-3.1-27-9) Biodiesel Retailer Tax CreditThrough December 31, 2010, a taxpayer that is a fuel retailer and distributes blended biodiesel for retail purposes is entitled to a credit of $0.01 per gallon of blended biodiesel distributed. This tax credit is contingent upon funding and is currently not available. (Reference Indiana Code 6-3.1-27-10) State Laws and RegulationsRegional Biofuels Promotion PlanIndiana has joined Iowa, Kansas, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform) (PDF 2 MB), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85. The state transportation, agriculture, and regulatory officials were required to report their corridor implementation plans to the Midwest Governors Association by April 1, 2008. Biobased Products Purchase RequirementA state governmental body or educational institution must purchase biobased products whenever possible, provided that biobased products are available and the purchase is economically feasible. Biobased products are defined as products produced from plant or animal sources that would otherwise be produced from petroleum-based sources. (Reference Indiana Code 5-22-5-9) Immunity for Misuse of E85E85 sellers, suppliers, distributors, manufacturers, and refiners are immune from civil liability for personal injury of property damage resulting from a person fueling any vehicle with E85 that is not a flexible fuel vehicle. This includes any vehicle equipped to operate when fueled entirely by E85. This immunity does not apply if an E85 seller, supplier, distributor, manufacturer, or refiner does not display all E85 warning signs required by federal or state law. (Reference Indiana Code 34-30-24) E85 Promotion and EducationThe Department of Agriculture is required to work with automobile manufacturers to improve auto dealer and consumer awareness and labeling of E85 fuel, and will work with the appropriate companies to include E85 fueling stations in updates of global positioning navigation software. (Reference Indiana Code 15-11-2-4) E85 Retail Sales ReportingA retailer who dispenses E85 must report to the Indiana Department of Revenue the total number of gallons of E85 sold from a metered pump as prescribed in Indiana Code 6-2.5-6. (Reference Indiana Code 6-2.5-7-5) E85 and Ethanol Blend DefinitionsE85 is a fuel blend nominally consisting of gasoline and at least 75% anhydrous ethyl alcohol by volume that meets ASTM specification D5798. A gasoline-ethanol blend is fuel that is blended from gasoline and nominally anhydrous ethyl alcohol and is suitable for use in spark-ignition internal combustion engines. Gasoline-ethanol blends must meet ASTM specification D4814. (Reference Indiana Code 6-6-1.1-103 and 16-44-2-8) E85 UseAs part of the Indiana Greening the Government Initiative, all fleet vehicles based in Indianapolis that are capable of using E85 are directed to fuel with E85 at the designated City-State fueling site whenever possible. Use of other bio-based fuels and oils is also encouraged. (Reference Executive Order 05-21, 2005 (PDF 670KB)Download Adobe Reader Biodiesel Blend Fuel Tax ExemptionBiodiesel blends of at least 20% that are used for personal, noncommercial use by the individual that produced the biodiesel content of the fuel are exempt from the $0.16 per gallon license tax. The 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 6-6-2.5-30.5) Biodiesel DefinitionBiodiesel is defined as a renewable, biodegradable fuel derived from agricultural plant oils or animal fats that meets ASTM specification D6751. Blended biodiesel is a blend of biodiesel with petroleum diesel fuel so that the volume percentage of biodiesel in the blend is at least 2%. (Reference Indiana Code 6-3.1-27-2 and 6-6-2.5-1.5) Biofuels Blend UseGovernmental entities are required to fuel diesel vehicles with biodiesel blends of at least 2% and fuel gasoline vehicles with ethanol blends of at least 10% whenever possible. (Reference Indiana Code 5-22-5-8) Low-Speed Vehicle Access to RoadwaysA low-speed vehicle is defined as a four-wheeled electric vehicle capable of achieving a maximum speed of 35 miles per hour (mph) with a maximum weight of 2200 pounds that meets the standards in Title 49 of the Code of Federal Regulations, sections 571.500. The use of low-speed vehicles on local highways is subject to regulation by local transportation authorities. An individual may not operate a low-speed vehicle on a highway that has a posted speed limit greater than 35 mph. (Reference Indiana Code 9-21-5-8.5 and 9-13-2-94.5) Certified Technology Park DesignationThe 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 general welfare by encouraging investment, job creation and retention, and economic growth and diversity. A High technology activity includes 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) Alternative Fuel Vehicle (AFV) DecalsAn individual may place alternative fuel into the fuel tank of a motor vehicle only if the vehicle has a valid alternative fuel decal affixed to the front windshield. Vehicle decals must be purchased annually for all heavy-duty AFVs and for light- and heavy-duty AFVs owned by public or private utilities. The cost of the decal varies according to vehicle type and gross vehicle weight. The annual fee may be prorated if the vehicle is newly purchased, registered in Indiana, or converted to operate using an alternative fuel. (Reference Indiana Code 6-6-2.1-203 through 6-6-2.1-206) Point of ContactFuel Tax Section Natural Gas Vehicle (NGV) Safety RequirementNGVs may not operate on a highway outside the corporate limits of a municipality from a half hour after sunset to a half hour before sunrise unless the vehicle carries at least three red electric lanterns or three portable red emergency reflectors. NGVs are prohibited from carrying a flare, fuse, or signal produced by flame. (Reference Indiana Code 9-19-5-6) Utilities/Private IncentivesNatural Gas Vehicle (NGV) RebateCitizens Gas & Coke Utility offers a rebate of $1,500 per vehicle that is converted to operate on compressed natural gas (CNG) or for the purchase of an original equipment manufactured dedicated or bi-fuel CNG vehicle. Used NGVs may also qualify. Rebates are only available to fleet operators. Each project is examined on the merits of providing the rebate, based on hours of operation or miles driven, per vehicle, per year. Citizens Gas & Coke Utility also provides public vehicle fueling at several existing CNG fueling stations. Point of ContactAbed Darwish Indiana Points of Contact:
Kansas Incentives and LawsLast Updated May 2008 Kansas is the home of the Kansas City Regional Clean Cities Coalition (http://www.kcenergy.org/transportation.html). Coordinator contact information is listed in the Points of Contact section. State IncentivesCellulosic Ethanol Production IncentiveThe Kansas Development Finance Authority (KDFA) is authorized to issue revenue bonds to cover the costs of construction or expansion of a biomass-to-energy facility. A qualifying biomass-to-energy facility includes an industrial process plant that produces at least 500,000 gallons of cellulosic alcohol fuel, liquid or gaseous fuel, or energy in a quantity having a British thermal unit (BTU) value equal to, or greater than, 500,000 gallons of cellulosic alcohol fuel. In addition, any newly constructed or expanded biomass-to-energy facility is exempt from state property taxes for a period of up to 10 taxable years immediately following the taxable year in which construction or installation is completed. Expansion of an existing biomass-to-energy facility means expansion of the facility’s production capacity by at least 10%. (Reference Kansas Statutes 74-8949b, 79-32,233, and 79-229) Renewable Fuel Retailer IncentiveBeginning January 1, 2009, a licensed retail motor fuel
dealer may receive a quarterly incentive for selling and dispensing
renewable fuels, including biodiesel. Qualified motor fuel dealers are
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 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. Funds will
be allocated from the Kansas Retail Dealer Incentive Fund. Point of ContactCindy Mongold Biodiesel Production IncentiveA biodiesel production incentive is available in the amount of $0.30 per gallon of biodiesel fuel sold by a qualified Kansas biodiesel producer. The incentive is payable to producers from the Kansas Qualified Biodiesel Fuel Producer Incentive Fund. Qualified biodiesel producers may file for the incentive on a quarterly basis after July 1, 2007. (Reference Kansas Statutes 79-34,158). Alternative Fuel Vehicle (AFV) Tax CreditTThe state offers an income tax credit worth up to 40% of the incremental or conversion cost for qualified AFVs placed into service after January 1, 2005, 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 in an amount not to exceed the lesser of $750
or 5% of the cost of the AFV is available to a taxpayer who purchases 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. This tax credit
must be deducted from the taxpayer's income tax liability for the taxable
year in which the expenditures are made. In the event the credit is more
than the taxpayer's tax liability for that year, the remaining credit may be
carried over for up to three years after the year in which the expenditures
were made. Point of ContactJim Ploger Alternative Fueling Infrastructure Tax CreditThe state offers an income tax credit for alternative fueling stations placed in service after January 1, 2005, and before January 1, 2009. The tax credit, worth up to 40% of the total amount, may not exceed $160,000. For any fueling station placed in service after January 1, 2009, the credit amount is reduced and may not exceed $100,000. This tax credit must be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made. In the event the credit is more than the taxpayer's tax liability for that year, the remaining credit may be carried over for up to three years after the year in which the expenditures were made. (Reference Kansas Statutes 79-32,201) Point of ContactJim Ploger Ethanol Production IncentiveThe Kansas Qualified Agricultural Ethyl Alcohol Producer Fund enables qualified agricultural ethyl alcohol (ethanol) producers to apply for a production incentive with the state Department of Revenue. If an ethyl alcohol producer who was in production prior to July 1, 2001, increases production capacity by 5,000,000 gallons over the producer's base sales, $0.075 may be collected for each gallon sold to an alcohol blender that is in excess of the producer's base sales, up to 15,000,000 gallons. Producers who began production on or after July 1, 2001, and who have sold at least 5,000,000 gallons to an alcohol blender may receive $0.075 for each gallon sold, up to 15,000,000 gallons. (Reference Kansas Statutes 79-34,163) Point of ContactPatricia Platt State Laws and RegulationsAlternative Fuel Vehicle (AFV) Acquisition RequirementsWhen purchasing a motor vehicle, state agencies must purchase a vehicle that is capable of operating on E85 fuel unless the vehicle model to be purchased is not available with an E85-capable engine or the cost of the vehicle is $250 or more than the cost of the comparable vehicle that does not utilize E85. When leasing a motor vehicle, state agencies must lease a vehicle that is capable of operating on E85 fuel unless no such vehicle is available for lease. (Reference Kansas Statutes 75-4617) Regional Biofuels Promotion PlanKansas has joined Indiana, Iowa, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform) (PDF 2 MB), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85. The state transportation, agriculture, and regulatory officials were required to report their corridor implementation plans to the Midwest Governors Association by April 1, 2008. Idle Reduction Weight ExemptionAny vehicle or combination of vehicles equipped with idle reduction technology may exceed the state's gross and axle weight limits by up to 400 pounds to compensate for the additional weight of the added idle reduction technology. (Reference Kansas Statutes 8-1908 and 8-1917). Point of ContactTom Whitaker E85 Tax Rate Reduction and DefinitionThe minimum motor vehicle fuel tax rate on E85 is $0.17 per gallon, until July 1, 2020. Beginning July 1, 2020, the minimum tax rate on E85 will be $0.11 per gallon. E85 is defined as an alternative fuel that is a blend of denatured ethanol and hydrocarbon and typically contains 85% ethanol by volume, but must contain at least 70% ethanol by volume and complies with ASTM specification D5798-99. (Reference Kansas Statutes 79-3401 and 79-34,141) Biofuels Use RequirementState-owned diesel-powered vehicles and equipment must use a biodiesel blend that contains at least 2% biodiesel (B2), where available, as long as the incremental price of biodiesel is not more than $0.10 per gallon as compared to the price of diesel fuel. Further, 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) Alternative Fuels TaxAny individual using or selling compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (LPG) as a motor fuel is required to report fuel use annually to the Kansas Department of Revenue. The minimum tax imposed on CNG, LNG, and LPG is $0.23 per gallon, compared to the conventional motor fuel tax rate of $0.24 per gallon. Beginning July 1, 2020, the minimum tax rate imposed on LPG will be $0.17 per gallon. (Reference Kansas Statutes 79-34,141; 79-3490; and 79-3491a - 79-3492e) Low-Speed Vehicle Access to RoadwaysA low-speed vehicle is defined as any four-wheeled electric vehicle whose top speed is greater than 20 miles per hour (mph) but not greater than 25 mph and is manufactured in compliance with the national highway and traffic safety administration standards for low-speed vehicles as referenced in Title 49, Code of Federal Regulations, part 571.500. Low-speed vehicles may only travel on roads with a posted speed limit of up to 40 mph and must be appropriately licensed. (Reference Kansas Statutes 8-15,101; 8-1488; 8-1701; and 8-2118) Alternative Fuel Vehicle (AFV) Acquisition RequirementsBeginning in Model Year 2000 and each year thereafter, 75% of new light-duty motor vehicles acquired by the state fleet and its agencies, which are used primarily within a metropolitan statistical area or a consolidated metropolitan statistical area, are required to be AFVs. Light-duty motor vehicles include those with a gross vehicle weight rating of up to 8,500 pounds. (Reference Kansas Statutes 75-4616) Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Kansas Kansas Points of Contact:
Kentucky Incentives and LawsLast Updated May 2008 Kentucky is the home of the Commonwealth Clean Cities Partnership, Incorporated (www.kentuckycleanfuels.org). Coordinator contact information is listed in the Points of Contact section. State IncentivesBiodiesel Production and Blending Tax CreditQualified biodiesel producers or blenders are eligible for an income tax credit of $1.00 per gallon of pure biodiesel (B100) produced or $1.00 per gallon of biodiesel used in the blending process; re-blending of blended biodiesel does not qualify. The total amount of credit for all biodiesel producers may not exceed the annual biodiesel tax credit cap of $5 million; beginning January 1, 2009, the biodiesel tax credit cap is expanded to $10 million per taxable year. Unused credits may not be carried forward and applied to a future tax return. For the purpose of this credit, biodiesel must meet ASTM specification D6751. (Reference Kentucky Revised Statutes 141.422 to 141.424) Ethanol Production Tax CreditQualified ethanol producers are eligible for an income tax credit of $1.00 per gallon of corn- or cellulosic-based ethanol that meets ASTM standard D 4806. The total credit amount for all corn and cellulosic ethanol producers is $5 million for taxable years beginning January 1, 2008. Unused credits may not be carried forward and applied to a future tax return. However, unused ethanol credits from one ethanol-based cap, such as corn, may be applied to another ethanol-based cap, such as cellulosic, in the same taxable year. (Reference Kentucky Revised Statutes 141.4244 to 141.4248) Alternative Fuel Production Tax IncentivesThe 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. The incentives may consist of: 1) a refund of up to 100% of the state sales tax paid on the purchase 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 is generated by the project; 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 coal severance tax paid for coal used as a feedstock. The incentives expire at the time of receipt of the authorized incentives 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 and $100 million for a facility that uses coal as the primary feedstock. (Reference Kentucky Revised Statutes 154.27-010 to 154.27-090) Point of ContactDon Goodin Alternative Fuel Research, Development, and PromotionEstablished legislatively as the Kentucky Alternative Fuel and Renewable Energy Fund Program, Kentucky New Energy Ventures (KNEV) is a state program that provides project funding to companies for research, development, and commercialization of alternative fuels and renewable energy. Specifically, KNEV is designed to: 1) grow Kentucky-based alternative fuel and renewable energy companies to promote statewide, innovation-driven economic growth; 2) stimulate private investment in Kentucky-based alternative fuel and renewable energy enterprises; 3) expand the alternative fuel and renewable energy knowledge base, talent force, and industry in Kentucky; 4) develop an alternative fuel and renewable energy resource network to build the technical and business capacity of entrepreneurs through informal and formal strategic support; and 5) build statewide awareness of the economic development opportunities offered by Kentucky’s alternative fuel and renewable energy industry. Alternative Fuel and Vehicle PromotionThe Kentucky Division of Renewable Energy and Energy Efficiency (Division) 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 Division has implemented a number of projects to promote the use of AFVs and establish alternative fuel infrastructure in Kentucky. Point of ContactJames Bush State Laws and RegulationsVehicle Acquisition Priorities and Alternative Fuel Use RequirementThe Finance and Administration Cabinet (Cabinet) is required to develop a strategy to replace at least 50% of state motor fleet light-duty vehicles with energy-efficient vehicles including hybrid electric vehicles, fuel cell vehicles, and alternative fuel vehicles. The Cabinet must also develop a strategy to increase the use of ethanol, biodiesel, and other alternative fuels in state motor vehicle fleets. The Cabinet must report targeted vehicle and fuel usage amounts annually. (Reference Kentucky Revised Statutes 44.045) State Energy Plan Alternative Fuel RequirementsThe Governor's Office of Energy Policy oversees the development and implementation of Kentucky’s comprehensive energy strategy. Specifically, the Governor’s Office of Energy Policy is directed to 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 strategy must include the following: establishment or expansion of state government incentives for developing, constructing, or operating alternative transportation fuels and synthetic natural gas production facilities; support of alternative energy through awareness and technology development; and administration of grant programs to support energy-related research. (Reference Kentucky Revised Statutes 152.720) Biofuels UseThe Kentucky Transportation Cabinet and the Finance and Administration Cabinet are directed to establish procurement contracts that maximize the market availability of ethanol and biodiesel fuel blends. Additionally, employees using conventional vehicles in the Transportation Cabinet's fleet are directed to use either a 10% blend of ethanol (E10) or a 2% blend of biodiesel (B2) as their primary fueling option, and the Transportation Cabinet is directed to maximize the use of E85 in its flexible fuel vehicle fleet. The Transportation Cabinet is directed to promote clean fuels through employee education, vendor identification, and by holding employees accountable for electing to use clean fuels in state vehicles. (Reference Executive Order 2005-124 (PDF 108 KB)) Download Adobe Reader Natural Gas DeregulationThe rates, terms, and conditions of service for the sale of natural gas to a compressed natural gas fueling station, retailer, or to any end-user for use as a motor vehicle fuel are exempt from regulation by the Kentucky Public Service Commission. (Reference Kentucky Revised Statutes 278.508) Liquefied Petroleum Gas (LPG) Excise Tax ExemptionLPG is exempt from the state excise tax when it is used to operate motor vehicles on public highways, given that those vehicles are equipped with carburetion systems approved by the Natural Resources and Environmental Protection Cabinet. (Reference Kentucky Revised Statutes 234.321) Utilities/Private IncentivesNatural Gas Infrastructure Technical AssistanceAtmos Energy offers preliminary feasibility studies for compressed natural gas fueling stations and will assist with vendor selection on a case-by-case basis. Point of ContactWalter C. Miller Kentucky Points of Contact:
Louisiana Incentives and LawsLast Updated August 2008 Louisiana is the home of the Greater Baton Rouge Clean Cities Coalition (www.gbrccc.org) and the Southeast Louisiana Clean Fuel Partnership (www.cleanfuelpartnership.org). Coordinator contact information is listed in the Points of Contact section. State IncentivesAlternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax CreditThe state offers an income tax credit worth 20% of the cost of converting a vehicle to operate on an alternative fuel, 20% of the incremental cost of purchasing an Original Equipment Manufacturer (OEM) AFV or hybrid electric vehicle (HEV), and 20% of the cost of constructing an alternative fueling station. For the purchase of an OEM AFV or HEV, the tax credit cannot exceed 2% of the total cost of the vehicle or $1,500, whichever is less. Only vehicles registered in Louisiana can receive the tax credit. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol, ethanol, electricity, and any other fuels which meet or exceed federal clean air standards. (Reference Louisiana Revised Statutes 47:38 and 47:287.757) Point of ContactTaxpayer Services Division Advanced Ethanol Fuel Blend Research GrantsDemonstration grants may be awarded by the Louisiana Commissioner of Agriculture and Forestry for the purchase of fueling pumps that are able to dispense advanced biofuel blends (E10, E20, E30 and E85), and for conducting research and developing guidelines on these fueling pumps. The Commissioner may also award grants for the purchase of vehicles for the purpose of conducting research on the advanced biofuel blends and/or the vehicle while operating on advanced bifuel blends. Advanced biofuel is defined as hydrous or anhydrous ethanol derived from sugar or starch, other than corn starch. Grants are dependent on available funding and further restrictions may apply. (Reference House Bill 1270, 2008, and Louisiana Revised Statutes 39:364) Biodiesel Equipment and Fuel Tax ExemptionCertain property and equipment used to manufacture, produce, or extract unblended biodiesel, as well as unblended biodiesel used as fuel by a registered manufacturer, are exempt from state sales and use taxes. Unblended biodiesel is defined as B100 which meets ASTM standard D6751. These provisions are effective through June 30, 2012. (Reference Louisiana Revised Statutes 47:301) Advanced Ethanol Industry InitiativeIn order to develop an advanced biofuels industry in Louisiana, the following “field-to-pump” requirements must be met:
State government agencies and educational institutions that perform essential governmental functions on a statewide or local basis are entitled to purchase advanced biofuel blends of E20, E30, or E85 directly from a qualified small advanced biofuel manufacturer facility at a discounted price of 15% less than the per gallon price of unleaded gasoline. (Reference House Bill 1270, 2008, and Louisiana Revised Statutes 39:364)Advanced Ethanol Blend Pilot ProgramThe Louisiana Department of Agriculture and Forestry (DAF) will begin monitoring the blending of fuels containing higher amounts of advanced biofuel, ranging from 10% to 85%, on a trial basis until January 1, 2012. The DAF will also be responsible for monitoring the equipment used for dispensing the fuel. Advanced biofuel is defined as hydrous or anhydrous ethanol derived from sugar or starch, other than corn starch. In addition, hydrous ethanol blends of E10, E20, E30, and E85 will also be tested on a trial basis. (Reference House Bill 1270, 2008, and Louisiana Revised Statutes 39:364) Alternative Fuel and Advanced Vehicle Acquisition RequirementsThe Commissioner of Administration is required to purchase alternative fuel vehicles capable of operating on alternative fuels that meet or exceed the federal Clean Air Act (CAA) standards, including but not limited to hybrid electric vehicles. Alternative fuels include compressed natural gas, liquefied petroleum gas, reformulated gasoline, methanol, ethanol, electricity, and other fuels that meet or exceed the CAA standards. State agency vehicles may be granted a waiver and additional exemptions may apply. (Reference Senate Bill 351, 2008, and Louisiana Revised Statutes 39:364) Fuel Efficient Vehicle Acquisition RequirementAny alternative fuel vehicle, sedan, or station wagon purchased or leased by a state agency must have a minimum fuel economy of 18 miles per gallon (mpg) for city driving, 28 mpg for highway driving, or a combined city/highway driving of 24 mpg. Law enforcement vehicles, certified emergency vehicles, and state agency vehicles (with prior written authorization) are exempt from this requirement. (Reference House Bill 638, 2008, and Louisiana Revised Statutes 39:1646) State Laws and RegulationsAlternative Fuel Vehicle (AFV) TaxAll licensed on-road vehicles fueled by compressed natural gas, liquefied natural gas, or liquefied petroleum gas are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators may either pay an annual flat rate in the amount of 80% of $150 per vehicle with a gross vehicle weight rating of less than 10,000 pounds, based on a $0.16 per gallon special fuels tax rate, or a variable rate of 80% of the current special fuels tax rate. (Reference Louisiana Revised Statutes 47:802.3) Point of ContactTaxpayer Services Division Renewable Fuel StandardWithin six months following the point at which cumulative monthly production of denatured ethanol produced in the state equals or exceeds a minimum annual production volume of 50 million gallons, 2% of the total gasoline sold by volume in the state must be denatured ethanol produced from domestically grown feedstock or other biomass materials. 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 D-4806, 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. Additionally, the Legislature urges the state Department of Agriculture and Forestry not to implement the minimum ethanol requirements if the requirements raise the price of gasoline by more than $0.02 per gallon. 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, 2% of the total diesel sold by volume in the state must be biodiesel produced from domestically grown feedstock. Biodiesel is defined as a fuel comprised of mono-alkyl esters of long chain fatty acids derived from renewable resources and meeting the requirements of ASTM D-6751, or a diesel fuel substitute produced from non-petroleum renewable 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. However, these requirements may not exceed 2% of the total gasoline and 2% of the total diesel sold by volume by owners or operators of fuel distribution terminals. Within six months following the point at which cumulative monthly production of an alternate renewable fuel capable of substituting for ethanol and biodiesel produced in the state equals or exceeds a minimum annual production volume of 20 million gallons, 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 state Department of Weights and Measures determines there is an insufficient supply of ethanol or biodiesel in the state. Any combination of alternative fuels, including but not limited to 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 non-attainment areas. The Commissioner of 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. (Reference Louisiana Revised Statutes 3:4674 and 3:3712) Biofuels Feedstock RequirementsRenewable 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. (Reference Louisiana Revised Statutes 3:3712) Low-Speed Vehicle Access to RoadwaysLow-speed vehicles may only be used on roads that have a posted speed limit of 35 miles per hour (mph) or less, but may, at an intersection, cross a highway with a posted speed limit greater than 35 mph. The low-speed vehicle must be equipped with safety equipment as specified in Title 49 of the Code of Federal Regulations, section 571.500, and must be registered with the state's Office of Motor Vehicles. (Reference Louisiana Revised Statutes 32:300.1) Low-Speed Vehicle SupportThe Legislature of Louisiana supports the commercial introduction of low-speed vehicles into the state as an energy efficient and economically beneficial form of transportation. The Legislature has urged the Louisiana Office of Motor Vehicles to use the maximum authorized inspection period for low-speed vehicles and that all parishes and municipalities involved in the inspection of motor vehicles exempt low-speed vehicles from such inspection. (Reference Senate Concurrent Resolution 112, 2005) Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) Regulatory AuthorityThe Louisiana Department of Natural Resources' Office of Conservation has regulatory authority over CNG safety, including fueling stations and the installation of conversion equipment in a vehicle. Vehicles equipped for, and capable of operating on, LPG must have passed a safety inspection from the Louisiana Liquefied Petroleum Gas Commission. (Reference Louisiana Revised Statutes 30:732) Deregulation of Compressed Natural Gas (CNG) as a Motor FuelThe sale of CNG by producers, pipelines, distribution companies, or other persons when used as a transportation fuel is not regulated by the Public Service Commission. (Reference Louisiana Revised Statutes 45:1163) Utilities/Private IncentivesNatural Gas Infrastructure Technical AssistanceEntergy offers preliminary feasibility studies for compressed natural gas fueling stations and vendor selection on a case-by-case basis. Point of ContactRobert Borne Louisiana Points of Contact:
Massachusetts Incentives and LawsLast Updated September 2008 Massachusetts is the home of the Massachusetts Clean Cities Coalition (www.mass.gov/doer/cleancit/cleancit.htm). Coordinator contact information is listed in the Points of Contact section. State IncentivesThere are currently no known State incentives offered in Massachusetts State Laws and RegulationsBiodiesel Blend MandateAll 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 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. (Reference Massachusetts Session Law 206, 2008) Hybrid Electric (HEV) Alternative Fuel Vehicle (AFV) Acquisition RequirementsWhen 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 owned and operated by the Commonwealth will be HEVs or AFVs by the year 2018. (Reference Massachusetts Session Law 169, 2008) Cellulosic Biofuel Tax ExemptionFor taxable years beginning January 1, 2009, and ending December 31, 2017, fuel consisting of cellulosic biofuel or a blend of gasoline and cellulosic biofuel is eligible for an exemption of the $0.21 per gallon fuel tax, in proportion to the percentage of the fuel content consisting of cellulosic biofuel. For these purposes, eligible cellulosic biofuel includes fuel derived from cellulose, hemicellulose, or lignin derived from renewable biomass that yields at least a 60% reduction in lifecycle greenhouse gas emissions (GHG) relative to the average lifecycle GHG emissions for petroleum-based fuel sold in 2005. (Reference Massachusetts Session Law 206, 2008) Biofuels Incentives StudyA special commission is established to study the feasibility and effectiveness of various forms of incentives to promote the development and use of advanced biofuels in Massachusetts including, but not limited to, production credits, the production and harvesting of woody biomass, feedstock incentives and direct consumer credits for the use of advanced biofuels in various applications. The commission must report the results of its investigation and study and its recommendations on or before March 31, 2009. (Reference Massachusetts Session Law 206, 2008) Biofuels Use and Promotion StudyA special commission is established to investigate and develop a strategy to increase the use of advanced biofuels as alternatives to conventional carbon-based fuels by the Commonwealth of Massachusetts, its agencies and political subdivisions, and regional transit authorities. The commission will consider methods such as financing mechanisms including grants, loans, and other incentive programs for group procurement of advanced biofuels, vehicles using advanced biofuels, distribution infrastructure, and technical assistance. The commission must report the results of its investigation and study and its recommendations on or before April 15, 2009. (Reference Massachusetts Session Law 206, 2008) State Agency Energy PlanIn order to reduce the energy consumption and greenhouse gas impact of state government, Massachusetts agencies must prioritize programs and practices that result in a reduction of fossil fuel-based energy consumption and emissions from such consumption, including promoting sustainable transportation practices and switching to bio-based and other alternative fuels. (Reference Executive Order 484, 2007) State Agency Alternative Fuel Use RequirementBeginning in Fiscal Year (FY) 2008, all state agencies must use a minimum of 5% biodiesel in all on- and off-road diesel engines, increasing to 15% by FY 2010. Prior to 2010, the Division of Energy Resources (DOER) will determine if the increase to 15% biodiesel is feasible as well as which vehicles can operate using the fuel. In addition, DOER will set guidelines for a minimum required use of E85 ethanol 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 it is demonstrated 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 Bulletin 13, 2006) Idle Reduction RequirementA motor vehicle is not allowed to idle unnecessarily in excess of five minutes. This regulation does not apply under the following conditions: 1) vehicles being serviced, provided that operation of the engine is essential to the repair; 2) vehicles delivering or accepting goods or merchandise for which engine assisted power is necessary and substitute alternate power cannot be made available; or 3) vehicles requiring auxiliary power for an associate power need other than movement that cannot be substituted by an alternate power source provided that such operation does not cause or contribute to air pollution. Violators of this regulation are subject to a fine of up to $100 for the first offense, and up to $500 for each succeeding offense. Local boards of health, local police, and state and federal officials are authorized to enforce the state anti-idling law; the Massachusetts Department of Environmental Protection (DEP) enforces its own regulations. (Reference Massachusetts General Laws Chapter 90, Section 16A, and DEP Regulations 310 CMR 7.11(1)(b)) Alternative Fuel Vehicle (AFV) Acquisition RequirementState fleets must acquire AFVs according to the requirements of the Energy Policy Act (EPAct) of 1992. At least 75% of non-excluded vehicles purchased by the Massachusetts Department of Procurement and General Services (DPGS) must be the cleanest AFVs available and practical; at least 10% of the total non-excluded vehicles purchased by DPGS must be zero emission vehicles. (Reference Executive Order 388, 1997) Deregulation of Compressed Natural Gas (CNG) as a Motor FuelThe sale of CNG by a fueling station for use as fuel to operate a motor vehicle is deregulated; however, separate records, books, and accounts of such sales must be kept. Investments in related infrastructure must not reduce the availability or increase the cost of natural gas to customers who purchase natural gas for use other than as fuel to operate a motor vehicle. (Reference Massachusetts General Laws Chapter 164, Section 94.5) Utilities/Private IncentivesNatural Gas Vehicle (NGV) and Compressed Natural Gas (CNG) Infrastructure Technical AssistanceNational Grid/KeySpan Energy Delivery (KeySpan) provides technical assistance to customers interested in purchasing NGVs or building CNG fueling stations. Rebates or incentives are available on a case-by-case basis. KeySpan has 12 CNG fueling stations open to the public and has established a CNG training curriculum for mechanics, technicians, and fleet managers at Wentworth Institute of Technology in Boston. Point of ContactMike Manning Massachusetts Points of Contact:
Maryland Incentives and LawsLast Updated June 2008 Maryland is the home of the Maryland Clean Cities Coalition (www.energy.maryland.gov/incentives/transportation/cleancities/index.asp). Coordinator contact information is listed in the Points of Contact section. State IncentivesCellulosic Ethanol Research and Development Tax CreditAn individual or corporation may claim a credit against the state income tax of up to 10% for qualified research and development expenses for cellulosic ethanol technology. The total amount of approved credits may not exceed $250,000 in a single calendar year. If the credit allowed exceeds the tax liability of the individual or corporation for that taxable year, the credit may be applied to future taxable years until the credit is exhausted or for up to 15 taxable years after the qualified expenses were incurred, whichever occurs first. (Reference House Bill 140, 2008) Hybrid Electric Vehicle (HEV) and Electric Vehicle (EV) Tax CreditA tax credit is allowed against the excise tax imposed for the purchase of qualified HEVs and EVs. For qualified EVs, the tax credit may not exceed $2,000. For qualified HEVs, the credit may not exceed: a) $250 if the vehicle battery provides at least 5% but less than 10% of maximum power available; b) $500 if the vehicle battery provides at least 10% but less than 20% of maximum power available; c) $750 if the vehicle battery provides at least 20% but less than 30% of maximum power available; d) $1,000 if the vehicle battery provides at least 30% of maximum power available. A qualified EV must meet the definition set forth in the Internal Revenue Code. A qualified HEV must meet the current vehicle exhaust standard set under the federal Tier 2 program for passenger vehicles. (Reference Maryland Statutes, Transportation Code 13-815) Biofuels Production CreditsUnder the Renewable Fuels Promotion Act of 2005, qualified
ethanol and biodiesel producers are eligible for ethanol and biodiesel
production credits. To be eligible for the credits, the producer must first
apply to the Renewable Fuels Incentive Board (Board) and receive
certification as a producer. Credits may be offered to certified producers
in Maryland for ethanol or biodiesel produced on or after December 31, 2007.
The Board may not pay a credit for ethanol or biodiesel produced after
December 31, 2017. Hybrid Electric Vehicle (HEV) Exemption from Vehicle Testing RequirementsQualified HEVs and zero-emission vehicles are exempt from certain mandatory motor vehicle emissions and inspection testing requirements for the first three years after the vehicle is originally registered in the state, if the vehicle obtains a rating from the U.S. Environmental Protection Agency of at least 50 miles per gallon during city fuel economy tests. A qualified HEV must meet the current vehicle exhaust standard set under the federal Tier 2 program gasoline-powered passenger vehicles, and can draw propulsion energy from both of the following on-board sources of stored energy: 1) gasoline or diesel fuel; and 2) a rechargeable energy storage system. This exemption expires September 30, 2012. (Reference Maryland Statutes, Transportation Code 23-206.3 through 206.4) State Laws and RegulationsLow Emission Vehicle (LEV) StandardsMaryland has adopted the California motor vehicle emission standards in Title 13 of the California Code of Regulations, beginning with Model Year 2011. The Department of Environment may adopt regulations to exempt certain vehicles from the program, including motor vehicles sold for registration outside of Maryland and motor vehicles that would be exempted from the LEV program established under California law. State agencies may not adopt any regulation that requires the sale or use of California reformulated gasoline. In addition, the Maryland Clean Car and Energy Policy Task Force is established to study the activities of neighboring states, the state of California, and the U.S. Environmental Protection Agency relating to vehicle emissions standards. The Task Force may also consider strategies to develop alternative fuels and fuel efficiency measures to improve the state's air quality. (Reference Maryland Statutes, Environment Code 2-1101 through 2-1108 and Transportation Code 13-110, 13-406, 23-206.3 and 23-206.4) Biodiesel UseAt least 50% of state vehicles must use a minimum biodiesel blend of B5 beginning in fiscal year 2008. This requirement does not apply to any state vehicles for which the use of biodiesel will void the manufacturer's warranty for that vehicle. (Reference Maryland Statutes, State Finance and Procurement Code 14-408) Biofuels PromotionAmong other duties, the Incentives for Agriculture Task Force is responsible for reviewing and evaluating the overall state tax structure as it impacts agriculture and the feasibility of modifications or alternatives to the current structure that would enhance the profitability of farming. This includes recommendations regarding the creation of tax credits or exemptions applicable to the production of ethanol, biodiesel, or other bio-energy alternatives. (Reference Maryland Statutes, State Finance and Procurement Code 5-408) Alternative Fuel Vehicle (AFV) Acquisition RequirementsMaryland established an AFV goal under the plan for 'Sustaining Maryland's Future with Clean Power, Green Buildings and Energy Efficiency.' The state will revise fleet policy and purchasing guidelines to offer more flexibility in purchasing, where practical, low emission vehicles and AFVs for its fleet. The state must ensure that an average of 50% of the fuel used to operate bi-fuel and flexible fuel vehicles are alternative fuel. The state must also help develop the refueling and maintenance infrastructure required to make using certain types of AFV use practical. The state may provide technical assistance and other incentives to use clean technology, where practical, in state transit fleets. (Reference Executive Order 01.01.2001.02) Idle Reduction RequirementA motor vehicle engine may not operate for more than five consecutive minutes when the vehicle is not in motion, with the following exceptions: 1) traffic conditions or mechanical difficulties; 2) operation of heating, cooling or auxiliary equipment installed on the vehicle; 3) bring vehicle to manufacturer's recommended operating temperature; or 4) when it is necessary to accomplish the intended use of the vehicle. Violators may be subject to a fine of up to $500. (Reference Maryland Statutes, Transportation Code 22-402 and 27-101) Low-Speed Vehicle Access to RoadwaysA low-speed vehicle is defined as a four-wheeled electric vehicle that has a minimum speed capability of 20 miles per hour (mph) and a maximum of 25 mph. A low-speed vehicle must be registered with the state Motor Vehicle Administration and comply with federal safety standards contained in Title 49 of the Code of Federal Regulations, section 571.500. The State Highway Administration or any local authority may prohibit the use of low-speed vehicles on any controlled access highway in its jurisdiction. Low-speed vehicles are only permitted on highways with a maximum speed limit of up to 30 mph but may, except in certain situations, cross highways for which the maximum speed limit exceeds 45 mph. (Reference Maryland Statutes, Transportation Code 11-130.1, 21-313, 21-1125, and 22-101) Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Maryland Maryland Points of Contact:
Maine Incentives and LawsLast Updated May 2008 Maine is the home of the Maine Clean Communities Coalition (http://www.gpcog.org/Transportation_and_Land_Use/Maine_Clean_Communities.php). Coordinator contact information is listed in the Points of Contact section. State IncentivesBiofuels Production Tax CreditA certified producer of ethanol, biodiesel, or methanol derived from biomass is allowed an income tax credit of $0.05 per gallon for the commercial production of biofuels for use in motor vehicles or otherwise used as a substitute for liquid fuels. A taxpayer claiming this credit must receive a letter from the Commissioner 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 the succeeding 10 taxable years. (Reference Maine Revised Statutes Title 36, Section 5219-X) Alternative Fueling Infrastructure Tax CreditA tax credit is available for up to 25% of expenditures incurred for the construction, installation of, or improvements to any fueling or charging station for the purposes of providing clean fuels to the general public for use in motor vehicles. Clean fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, alcohol fuels containing at least 85% alcohol by volume, and electricity. This tax credit is available for tax years ending on or before December 31, 2008. Any portion of unused credits may be carried over into subsequent years as needed. (Reference Maine Revised Statutes Title 36, Section 5219-P) State Laws and RegulationsPolicy Recommendations for Biofuels PromotionThe Maine Office of Energy Independence and Security issued a report for the state legislature that recommended specific policy options aimed toward the promotion of biofuels. The recommendations included 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 fuels 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 low carbon fuel standard. The report includes suggestions for initial implementation actions and next steps. (Reference Legislative Document 1159, 1284, and 1347, 2007) Alternative Fuel and Alternative Fuel Vehicle (AFV) PromotionA responsibility of the Energy Resources Council is, in coordination with the Department of Environmental Protection, to evaluate the costs and benefits of state government actions to stimulate an increase in the use and production of alternative fuels, including biofuels, and the use of AFVs in the state. (Reference Maine Revised Statutes Title 5, Section 3327; Title 35-A, Section 3211-A; and Executive Order 11, 2004) Idle Reduction RequirementA commercial vehicle or gasoline powered vehicle is not permitted to idle for more than five minutes during any 60-minute period. Exemptions are allowed for the following: 1) a vehicle stopped in traffic or at the direction of a law enforcement official; 2) a vehicle needing auxiliary power for equipment or for climate control, including during driver rest periods; 3) a vehicle being inspected by a state or federal motor vehicle inspector; and 4) an emergency vehicle being used in the course of official business. Additionally, any owner of a location that is used for loading and unloading of commercial vehicles may not require that vehicles idle for periods longer than 30 minutes while waiting to load or unload at the location. Violators are subject to fines. (Reference Legislative Document 2056, 2008, and Maine Revised Statutes Title 38, Section 585-K) Motor Vehicle Emissions StandardsMaine has adopted the California motor vehicle emissions standards in Title 13 of the California Code of Regulations, with the exception of California's zero emission vehicle program. These regulations apply to any Model Year (MY) 2001 and subsequent MY passenger cars and light-duty trucks; MY 2003 and subsequent MY medium-duty vehicles; MY 2005 and 2006 heavy-duty vehicles and diesel engines; and all 2008 and subsequent model year heavy-duty diesel vehicles and engines. Beginning with MY 2009, manufacturers must meet the zero emissions vehicle sales requirement. (Reference Department of Environmental Protection, Chapter 127) Alternative Fuel Tax RatesThe state highway tax for each special fuel used in transportation is based on each fuel's energy content as compared to gasoline. Until June 30, 2008, the tax rates are as follows: E85 is taxed at a rate of $0.196 per gallon; propane (LPG) at $0.201 per gallon; and compressed natural gas (CNG) at $0.239 per 100 standard cubic feet. Gasoline is taxed at a rate of $0.276 per gallon and diesel is $0.288 per gallon. For more information, including fuel tax rates effective July 1, 2008, see the Maine Revenue Services Web site. (Reference Maine Revised Statutes Title 36, Section 3203) Low-Speed Vehicle Access to RoadwaysLow-speed vehicles may only be used on roadways with posted speed limits of up to 35 miles per hour. Low-speed vehicles must be registered and meet specified state and federal safety equipment requirements. (Reference Maine Revised Statutes Title 29-A, Sections 1925 and 2089) Fuel Efficient Vehicle Acquisition RequirementsThe State Purchasing Agent may not purchase or lease any car or light-duty truck for use by the state or any department or agency of the state unless, beginning January 1, 2000, the car has a manufacturer's estimated highway mileage rating of at least 45 miles per gallon and the light-duty truck has a manufacturer's estimated highway mileage rating of at least 35 miles per gallon. Cars and light-duty trucks purchased for law enforcement and other special use purposes as designated by the State Purchasing Agent are exempt from this requirement. (Reference Maine Revised Statutes Title 5, Section 1812-E) State Fleet Fuel Economy ImprovementThe Departments of Administrative and Financial Services, Transportation, Public Safety, and other agencies must continue to improve the overall fuel economy of their fleets. (Reference Executive Order 11, 2004) Alternative Fuel Vehicle (AFV) and Fueling Infrastructure LoansThe Clean Fuel Vehicle Fund is a non-lapsing revolving loan fund managed by the Finance Authority of Maine and may be used for direct loans to finance all or part of any clean fuel vehicle project. The Finance Authority of Maine may also insure up to 100% of mortgage payments with respect to mortgage loans for clean fuel vehicle projects. (Reference Maine Revised Statutes Title 10, Sections 1023-K and 1026-A) Biofuels Production IncentiveThe Agriculturally Derived Fuel Fund was developed to provide direct loans and subsidies to a business or cooperative for the design and construction of a facility that produces agriculturally derived fuel, specifically methanol and ethanol. It is a non-lapsing fund controlled by the Finance Authority of Maine. (Reference Maine Revised Statutes Title 10, Section 997-A) Provision for Establishment of Clean Fuel Vehicle Insurance IncentivesAn 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, if insurance premiums on other vehicles are not increased to fund these credits or refunds. (Reference Maine Revised Statutes Title 24-A, Section 2303-B) Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Maine Maine Points of Contact:
Michigan Incentives and LawsLast Updated December 2007 Michigan is the home of the Ann Arbor (www.aacleancities.org), Detroit Area (www.nextenergy.org/services/collaborativeprograms/wg_cleancities.aspxp), and Greater Lansing Area (www.michigancleancities.org) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section. State IncentivesHybrid Electric Vehicle Research and Development Tax CreditFor tax years beginning on or after January 1, 2008, and ending before January 1, 2016, a taxpayer engaged in research and development of a qualified hybrid system that has the primary purpose of propelling a motor vehicle may claim a tax credit under the Single Business Tax. This tax credit is equal to 3.9% of all wages, salaries, fees, bonuses, commissions, or other payments made in the taxable year for the benefit of employees for services performed in a qualified facility. The maximum amount of credit allowed for any one taxpayer is $2 million in a single tax year. The qualified taxpayer may also claim a tax credit under the Michigan Business Tax equal to 3.9% of all wages, salaries, fees, bonuses, commissions, or other payments made in the taxable year on behalf of or for the benefit of employees for services performed in a qualified facility. The maximum amount of credit allowed for any one taxpayer is $3 million in a single tax year. (Reference Senate Bill 944, 2007, House Bill 5409, 2007 and Michigan Compiled Laws 208.1101 to 208.1601 and 208.32) Alternative Fuel Research and Development Tax ExemptionThe Michigan Strategic Fund (MSF) has designated an Alternative Energy Zone (AEZ) within Wayne State University's Research and Technology Park in Detroit to promote the research, development, and manufacturing of alternative energy technologies, including alternative fuel vehicles (AFV). Businesses located within the AEZ that are engaged in qualified activities are eligible for exemption from state and local taxes, to be determined by the Michigan NextEnergy Authority (MNEA). Alternative energy technology companies located in the AEZ may also be eligible for a refundable payroll credit under the Single Business Tax. For more information, see the MNEA Web site. (Reference Michigan Compiled Laws 207.821-207.827) Alternative Fuel Fueling Infrastructure GrantsThe Michigan Strategic Fund (MSF) has created the Ethanol and Biodiesel Matching Grant Program to provide incentives to owners and operators of service stations to convert existing and install new fuel delivery systems designed to provide E85 and biodiesel blends. Grants may not exceed 75% of the costs to convert existing fueling infrastructure, up to $3,000 per facility. Grants may not exceed 50% of the new construction costs to install new fueling infrastructure, up to $12,000 per facility for E85 and $4,000 per facility for biodiesel blends. Other funding limitations may apply. For the purpose of this grant program, biodiesel must meet American Society for Testing and Materials (ASTM) D-6751 specification and be approved by the Michigan Department of Agriculture. E85 is defined as a fuel blend containing between 70% and 85% denatured ethanol and meets ASTM D-5798 specifications. (Reference Michigan Compiled Laws 125.2078) Reduced Biofuels TaxA tax of $0.12 per gallon is imposed on gasoline containing at least 70% ethanol and diesel fuel containing at least 5% biodiesel. Ethanol is defined as denatured fuel ethanol that is suitable for use in a spark-ignition engine when mixed with gasoline and must meet the American Society for Testing and Materials (ASTM) D-5798 specifications. Biodiesel is defined as a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats and, in accordance with standards specified for 100% biodiesel fuel and meets ASTM D-6571 specification, as approved by the Michigan Department of Agriculture. (Reference Michigan Compiled Laws 207.1008) Alternative Fuel Development Property Tax ExemptionA tax exemption may apply to industrial property which 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, or alternative fuel vehicles and their components. In order to qualify for the tax exemptions, an industrial facility must obtain an exemption certificate for the property from the State Tax Commission. (Reference Senate Bill 207, 2007, and Michigan Compiled Laws 207.552 and 207.803) Alternative Fuel Vehicle (AFV) Emissions Inspection ExemptionDedicated AFVs powered by compressed natural gas, propane, electricity, or any other source as defined by rule promulgated by the Michigan Department of Transportation are exempt from emissions inspection requirements. (Reference Michigan Compiled Laws 324.6311 and 324.6512) State Laws and RegulationsAcquisition and Alternative Fuel Use RequirementThe Department of Management and Budget (DMB) is required to continue to comply with the requirements of the federal Energy Policy Act of 1992. The DMB must include hybrid electric vehicles within the state's fleet if the vehicles are determined to be cost effective and capable of meeting the state's transportation needs. In addition, as the state's public alternative fuel fueling infrastructure continues to develop, state motor fleet AFVs are required to fuel with alternative fuels to the extent possible. The DMB will develop rules to encourage or require the use of diesel fuel with the highest percentage of biodiesel content available for diesel-powered vehicles in the state fleet. (Reference Executive Directive 22, 2007) Regional Biofuels Promotion PlanMichigan has joined Indiana, Iowa, Kansas, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform) (PDF 2 MB), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85. The state transportation, agriculture, and regulatory officials are required to report their corridor implementation plans to the Midwest Governors Association by April 1, 2008. Renewable Fuels CommissionThe Renewable Fuels Commission is established within the Michigan Department of Agriculture to investigate and recommend strategies that the governor and the legislature may implement to promote the use of alternative fuels and alternative fuel vehicles (AFV). The Commission will also identify mechanisms that promote alternative fuel research and effective communication and coordination of efforts between state and local governments, private industry, and institutes of higher education. The commission may also review any state regulation that may hinder the use, research, and development of alternative fuels and AFVs, and recommend changes to the governor. In June 2007, the Commission submitted a report on its investigation and recommendations to the legislature and the governor (PDF 453). The Commission must issue follow-up reports at least annually until January 1, 2010. (Reference Michigan Compiled Laws 290.581-290.586) Biofuels Blender RequirementsBlenders of ethanol and gasoline and biodiesel and diesel fuels outside of the bulk transfer terminal system must obtain a blender's license and are subject to blender reporting requirements. A licensed supplier who blends ethanol and gasoline or biodiesel and diesel fuels is also required to obtain a blender's license. (Reference Senate Bill 1074, 2006, and Michigan Compiled Laws 207.1008) Hydrogen Production and Retail RequirementsAll hydrogen fuel produced and sold in the state must meet state quality requirements. Any retailer offering hydrogen fuel for sale in the state must register with, and obtain approval from, the Michigan Department of Agriculture (MDA). A hydrogen retailer must also obtain a license from the MDA for each retail outlet they operate. (Reference Senate Bill 1079, 2006, and Michigan Compiled Laws 290.642-290.647) Biodiesel Retail and Storage RequirementsAll biodiesel and biodiesel blends sold in the state must meet state 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 is prohibited from selling 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 retail outlet they operate. (Reference Senate Bill 1079, 2006, and Michigan Compiled Laws 290.642-290.647) Utilities/Private IncentivesAlternative Energy Technology PromotionNextEnergy is an organization with a comprehensive set of actions and incentives designed to help position Michigan as the world's leading center for alternative energy technology, research and development, education, and manufacturing. NextEnergy programs support technologies for both mobile and stationary applications using renewable and distributed energy solutions. NextEnergy offers several incentives for companies that develop or utilize alternative energy applications. Point of ContactPamela Hurtt Michigan Points of Contact:
Minnesota Incentives and LawsLast Updated July 2008 Minnesota is the home of the Twin Cities Clean Cities Coalition (http://www.cleanairchoice.org/cities/tc.cfm). Coordinator contact information is listed in the Points of Contact section. State IncentivesE85 Fueling Infrastructure GrantsGrants administered by the Minnesota E85 Team are available to service stations installing equipment or converting existing equipment for dispensing E85 fuel to flexible fuel vehicles. Cost eligibility and grant amounts vary according to grant sponsorship. Point of ContactLisa Thurstin Ethanol Production IncentiveThrough June 30, 2010, an ethanol production incentive of $0.20 per gallon of ethanol produced is available to qualified facilities that began production before June 30, 2000. Annual payments are limited to $3 million to any one producer. (Reference Minnesota Statutes 41A.09) Point of ContactRalph Groschen Idle Reduction Technology Loan ProgramThe Minnesota Pollution Control Agency's Small Business Environmental Improvement Loan Program provides low-interest loans to qualified small businesses to finance environmental projects such as capital equipment upgrades that meet or exceed environmental regulations, including idle reduction technologies. Point of ContactMike Nelson State Laws and RegulationsBiodiesel Blend MandateAll diesel fuel sold or offered for sale in the state for use in internal combustion engines must contain at least 2% biodiesel fuel by volume. Beginning May 1, 2009, all diesel fuel must contain at least 5% biodiesel; 10% biodiesel by May 1, 2012; and 20% biodiesel by May 1, 2015. The minimum content levels are effective during the months of April, May, June, July, August, September, and October only. However, the commissioners of agriculture and commerce, the Pollution Control Agency, in consultation with the Biodiesel Task Force and other technical experts, may allow the specified biodiesel blend level 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. (Reference Senate File 3683, 2008, and Minnesota Statutes 239.77 and 239.75) Medium-Speed Electric Vehicle Access to RoadwayA medium-speed electric vehicle is defined as an electrically powered four-wheeled motor vehicle capable of achieving a speed of at least 25 miles per hours (mph) but not more than 35 mph on a paved, level surface and, except with respect to maximum speed, otherwise meets or exceeds regulations in Title 49 of the Code of Federal Regulations, section 571.500. A medium-speed electric vehicle may not be operated on a roadway with a speed limit greater than 35 mph, except to make a direct crossing of that roadway. A road authority, including the commissioner of transportation, may prohibit or further restrict the operation of medium-speed electric vehicles on any street or highway under the road authority's jurisdiction. (Reference House File 3800, 2008) Idle Reduction Weight ExemptionIn order to promote the reduction of fuel use and emissions due to engine idling, the maximum gross vehicle weight and axle weight limits for any motor vehicle equipped with idle reduction technology must be increased by the weight of the idle reduction equipment, not to exceed 400 pounds. The vehicle operator must provide documentation that the vehicle is equipped with idle reduction equipment. (Reference House File 3486, 2008, and Minnesota Statutes 169.824) Regional Biofuels Promotion PlanMinnesota has joined Indiana, Iowa, Kansas, Michigan, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform) (PDF 2 MB), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85. The state transportation, agriculture, and regulatory officials were required to report their corridor implementation plans to the Midwest Governors Association by April 1, 2008. Biodiesel DefinitionBiodiesel 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 D6751-07 and is produced by a person or organization certified by the BQ-9000 National Biodiesel Accreditation Program. (Reference Senate File 3683, 2008, and Minnesota Statutes 239.761 and 296A.01) Ethanol Blend MandateAll gasoline sold or offered for sale in the state must contain at least 10% ethanol by volume (E10). Effective August 30, 2013, all gasoline sold or offered for sale in the state must contain at least 20% ethanol by volume (E20), unless ethanol has already replaced 20% of all motor vehicle fuel sold in the state by December 31, 2010, or federal approval has not been granted for the use of E20. Certain exemptions apply. (Reference Minnesota Statutes 239.791) Alternative Fuel Use RequirementState agencies are required to take all reasonable actions necessary to strengthen the infrastructure for increasing 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 state's SmartFleet Committee is directed to develop a plan to facilitate the use of E85 and biodiesel in state vehicles, including actively pursuing the establishment of additional E85 fueling facilities at public retail outlets throughout the state. (Reference Executive Order 06-03, 2006) Hydrogen Energy PlanThe Minnesota Department of Administration is required to
identify opportunities for demonstrating the use of hydrogen fuel cells
within state-owned facilities, vehicle fleets, and operations. The
Department of Administration is required to purchase and demonstrate
hydrogen, fuel cells, and related technologies in ways that strategically
contribute to realizing Minnesota's hydrogen economy goals. Additionally,
the state Department of Commerce (DOC) is expected to report to the
legislature every two years with a list of proposed pilot projects that
contribute to realizing these goals, including those demonstrating
technologies such as hybrid-electric, off-road, and fleet vehicles operating
on hydrogen or fuels blended with hydrogen. Plug-In Hybrid Electric Vehicle (PHEV) and Neighborhood Electric Vehicle (NEV) InitiativesAll solicitation documents that include the purchase of
passenger automobiles issued under the jurisdiction of the Minnesota
Department of Administration after June 30, 2006, must assert the intention
of the state to begin purchasing PHEVs and NEVs as soon as they become
commercially available. The PHEVs and NEVs must first meet the state's
performance specifications and be priced no more than 10% above the price
for comparable gasoline-powered vehicles. Biodiesel Task ForceTo help reach the state's eight million gallon biodiesel production capacity goal and ensure a smooth introduction of biodiesel into the marketplace, a Biodiesel Task Force was established in March 2003 to help promote and educate possible biodiesel developers, marketers, consumers, and manufacturers. The 10-member task force advises the Minnesota Department of Agriculture on methods to increase production and use of biodiesel in Minnesota. The task force also promotes and educates potential biodiesel developers, marketers, consumers, and manufacturers about biodiesel. Point of ContactRalph Groschen Alternative Fuel Use and Alternative Fuel Vehicle (AFV) Acquisition RequirementsState agencies are required to use alternative fuels, including B20-B100 biodiesel blends, compressed or liquefied natural gas, E70-E100 ethanol blends, hydrogen, or liquefied petroleum gas, to operate state motor vehicles if the clean fuels are reasonably available at comparable costs to conventional fuels and are compatible with the intended use of the motor vehicle. Additionally, state agencies are required to purchase alternative fuel vehicles, which include those capable of being powered by the fuels listed above or motor vehicles powered by electricity or by a combination of electricity and liquid fuel, if such a motor vehicle is reasonably available at comparable costs to other vehicles and if the vehicle is capable of carrying out the purpose for which it is purchased. (Reference Minnesota Statutes 16C.135) State Agency Energy Plan and Vehicle Acquisition PrioritiesUsing 2005 as a baseline, the state is required to achieve a 25% and 50% reduction in gasoline used to operate state agency owned on-road vehicles by 2010 and 2015, respectively. Additionally, the state is required to achieve a 10% and 25% reduction in the use of petroleum-based diesel fuel for state owned on-road vehicles by 2010 and 2015, respectively. To meet these goals, each state agency will, whenever legally, technically, and economically feasible, ensure that at least 75% of all new on-road vehicles purchased operate on alternative fuels, including B20-B100 biodiesel blends, compressed or liquefied natural gas, E70-E100 ethanol blends, hydrogen, or liquefied petroleum gas. Alternatively, each state agency must ensure that at least 75% of purchases of new on-road vehicles have fuel economy ratings that exceed 30 miles per gallon (mpg) for city usage or 35 mpg for highway usage, including but not limited to hybrid electric and hydrogen vehicles. (Reference Executive Order 04-10, 2004, and Minnesota Statutes 16C.137) State Agency Emissions Reduction RequirementEach state department must seek to reduce air pollution by implementing two or more of the actions outlined in Executive Order 04-08 whenever legally, technically, and economically feasible, subject to the specific needs of the department and responsible management of agency finances. The actions include the purchase or lease of the most fuel-efficient and least polluting vehicles that meet the operational needs of the state department, and fueling state-operated vehicles with the cleanest fuel available. (Reference Executive Order 04-08, 2004) Alternative Fuel TaxAn excise tax is imposed on the first licensed distributor who receives E85 fuel products in the state and on distributors, special fuel dealers, or bulk purchasers of other alternative fuels. E85 is taxed at a rate of $0.142 per gallon, liquefied petroleum gas is taxed at $0.15 per gallon, liquefied natural gas is taxed at $0.12 per gallon, and compressed natural gas is taxed at the rate of $1.739 per thousand cubic feet or $0.20 per gasoline gallon equivalent. Gasoline is taxed at the rate of $0.20 per gallon. (Reference Minnesota Statutes 296A.07 and 296A.08) Neighborhood Electric Vehicle (NEV) Access to RoadwaysA neighborhood electric vehicle (NEV) is defined as an electric vehicle that has four wheels and is capable of achieving a speed of at least 20 miles per hours (mph) but not more than 25 mph on a paved level surface. An NEV must be titled according to state law and may be operated on public streets and highways if it meets all equipment and vehicle safety requirements in Title 49 of the Code of Federal Regulations, section 571.500, and successor requirements. An NEV may not operate on roadways with a speed limit greater than 35 miles per hour, except to make a direct crossing of that roadway. A road authority, including the commissioner of transportation, may prohibit or further restrict the operation of NEVs on any street or highway under the road authority's jurisdiction. (Reference Minnesota Statutes 169.01 and 169.224) Idle Reduction Regulation - MinneapolisVehicles may not idle in residential areas between 10 pm and 6 am, with the exception of emergency or law enforcement vehicles as well as permitted construction equipment. Violators are subject to a fine of up to a $700. (Reference Minneapolis Code of Ordinances Title 15, Chapter 389.100(7) and (8)) Utilities/Private IncentivesThere are currently no known utility or private incentives offered in Minnesota Minnesota Points of Contact:
Missouri Incentives and LawsLast Updated August 2008 Missouri is the home of the St. Louis Regional (www.stlcleancities.org) and the Kansas City Regional (www.kcenergy.org/transportation.html) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section. State IncentivesAlternative Fueling Infrastructure Tax CreditAn income tax credit is available for the costs of constructing a qualified alternative fuel vehicle fueling station. The tax credit may not exceed the lesser of $20,000 or 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment. The total amount of tax credits claimed may not exceed $3,000,000 for taxable year 2009, $2,000,000 for taxable year 2010, and $1,000,000 for taxable year 2011. Eligible fuels include those containing at least 70% of the following alternative fuels: ethanol, compressed natural gas, liquefied natural gas, liquefied petroleum gas, any mixture of biodiesel and diesel fuel, and hydrogen. (Reference Senate Bill 931, 2008) Point of ContactRobin Perso Ethanol Production IncentiveQualified ethanol producers are eligible for incentives through the Missouri Ethanol Producer Incentive Fund (Fund). The Fund provides $0.20 per gallon for the first 12.5 million gallons and $0.05 for the second 12.5 million gallons of ethanol produced from Missouri agricultural products each fiscal year. The Fund is administered by the Department of Agriculture and the incentive expires on December 31, 2015. (Reference Missouri Revised Statutes 142.028 and 142.029) Point of ContactRobin Perso Biodiesel Production IncentiveThe Missouri Qualified Biodiesel Producer Incentive Fund provides a monthly grant to qualified Missouri biodiesel producers, provided that 1) at least 51% of the production facility is owned by agricultural producers who are residents of the state and who are actively engaged in agricultural production for commercial purposes or 2) at least 80% of the feedstock used by the facility originates in-state. All of the feedstock must originate in the U.S. However, the feedstock requirement may be waived on a month-to-month basis if the facility provides verification that adequate feedstock is not available. In addition, producers must have registered with the Missouri Department of Agriculture by September 1, 2007, begun construction of the facility before November 1, 2007, and must begin production of biodiesel before March 1, 2009. The value of the grant is $0.30 per gallon for the first 15 million gallons produced in a fiscal year and $0.10 per gallon for the next 15 million gallons produced in a fiscal year, up to a total of 30 million gallons and for a maximum of 60 months per producer. This fund is administered by the Missouri Department of Agriculture. Biodiesel is defined according to ASTM standard D-6751 or its subsequent standard specifications for biodiesel fuel (B100) blend stock for distillate fuels. This incentive expires December 31, 2009. (Reference Missouri Revised Statutes 142.031) Point of ContactRobin Perso Biodiesel Fuel Use IncentiveThrough the 2011-12 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, to offset the incremental cost of purchasing the biodiesel. (Reference Missouri Revised Statutes 414.433) Fleet Biodiesel Fuel Use IncentiveThe Biodiesel Fuel Revolving Fund uses the money generated by the sale of Energy Policy Act (EPAct) credits to cover the incremental cost of purchasing fuel containing B20 or higher biodiesel blends for use by state fleet vehicles. (Reference Missouri Revised Statutes 414.407) State Laws and RegulationsIdle Reduction Weight ExemptionAny vehicle equipped with qualified idle reduction technology may exceed the state's gross and axle weight limits by up to 400 pounds to compensate for the additional weight of the added idle reduction technology. (Reference Senate Bill 930, 2008) Ethanol Blend MandateAfter January 1, 2008, all gasoline sold or offered for sale at retail stations within the state must contain 10% ethanol. This requirement is waived only if a distributor is unable to purchase ethanol or ethanol-blended gasoline at the same or lower price as unblended gasoline. Premium gasoline is exempt from this requirement. Ethanol fuel is defined as meeting ASTM specification D-4806. 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