All State Incentives & Laws

Alaska Incentives and Laws

Last Updated May 2009

State Incentives

There are currently no known State incentives offered in Alaska

State Laws and Regulations

Ethanol Fuel Blend Tax Rate Reduction

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 in certain geographic areas and during months in which fuel containing ethanol is required to be sold, transferred, or used to operate a motor vehicle in an effort to reduce carbon monoxide emissions and attain air quality standards as required by federal or state law. (Reference Alaska Statutes 43.40.010)

Low-Speed Vehicle Access to Roadways

Low-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 Use

The Alaska Department of Transportation (DOT) is required to evaluate the cost, efficiency, and commercial availability of alternative fuels for automotive purposes every five years, and convert to or purchase vehicles that operate using alternative fuels 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)

Global Warming Mitigation Initiative

The 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)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Alaska

Alaska Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Kay Kelly Project Manager	U.S. Department of Energy, Golden Office	Phone:(303) 275-6037 Fax:
Scott Sloane Environmental Program Specialist	State of Alaska Environmental Conservation - Air Nonpoint and Mobile Sources	Phone:(907) 465-5176 Fax:(907) 465-5129
Steve Morris Air Quality Program Manager	Municipality of Anchorage	Phone:(907) 343-6976 Fax:(907) 249-7959
Craig Lyon Transportation Planning Manager/AMATS Coordinator	Anchorage Metropolitan Area Transportation Solutions (AMATS)	Phone:(907) 343-7991 Fax:(907) 343-7998
Bonnie Richard Alaska Fleet Manager	U.S. General Services Administration, Alaska Fleet Management Center	Phone:(907) 271-3940 Fax:(907) 271-3971

Alabama Incentives and Laws

Last Updated June 2009

Georgia is the home of the Alabama Clean Fuels Coalition (www.alabamacleanfuels.org). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Biofuels for Schools Grants

The Alabama Department of Economic and Community Affairs - Energy, Weatherization and Technology (ADECA-EWT) Division developed the Alabama Biofuels for Schools Grant Program (PDF 55 KB) to increase the availability and use of biodiesel blends in school buses in the state. Download Adobe Reader. Grants are available to cover up to $2,500 of the cost of cleaning existing fuel tanks in preparation for storing B20. Successful applicants will be required to provide B20 for a minimum of three years. Grantees will also be required to provide information to ADECA-EWT on the number of gallons of B20 dispensed and used to fuel school buses during this time period.

Point of Contact

Kathy Hornsby
Program Manager
Alabama State Energy Office, Alabama Department of Economic and Community Affairs
Phone (334) 242-5284
Fax (334) 242-0552
kathy.hornsby@adeca.alabama.gov

Biofuel Production Facility Tax Credit

Companies that invest in the development of a biofuel production facility may be eligible for a tax credit against the state income tax or financial institution excise tax liability generated by the project each year for up to 20 years in the amount equal to 5% of the capital costs of the project. For the purposes of the credit, biofuel is defined as a motor vehicle fuel that is produced from grain, starch, oilseeds, vegetable, algae, animal, or fish materials including fats, greases and oils, sugarcane, sugar beets, sugar components, tobacco, potatoes, and lignocellulosic or other biomass. In order to be eligible for the tax credit, the capital costs of the production facility must be at least $2,000,000 if the facility is not located in a favored geographic area, and $500,000 if the facility is located in a favored geographic area. A favored geographic area is defined as an area or county that is designated as an enterprise zone or is considered to be less developed by the Alabama Department of Industrial Relations. (Reference House Bill 568, 2009)

Biofuels Research and Development Support

The 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 Information

The Center for Alternative Fuels (Center) was established within the Alabama Department of Agriculture and Industries to promote alternative fuels as a viable energy source in the state. The Center has been tasked with assessing the current status and development of sources of alternative fuels, ensuring that all alternative fuels sold in the state meet ASTM standards, and acting as an information center for alternative fuels and a clearinghouse for available federal grant funding for alternative fuel development. The Center has also been designated to 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 Regulations

Fuel-Efficient Green Fleets Policy

The Alabama Green Fleets Policy (Policy) will be developed to outline a procedure for procuring state vehicles based on criteria that include fuel economy and life cycle costing. State fleet managers will be required to classify their vehicle inventory for compliance with the Policy and submit annual plans for procuring fuel-efficient vehicles. These plans must reflect a 4% annual increase in average fleet fuel economy for light-duty vehicles, a 3% annual increase in average fleet fuel economy for medium-duty vehicles, and a 2% annual increase in average fleet fuel economy for heavy-duty vehicles per fiscal year. The Policy will also require that government entities manage and operate their fleets in a manner that is energy efficient, minimizes emissions, and reduces petroleum dependency by utilizing specified proven technology identified by the Green Fleet Review Committee. (Reference House Bill 185, 2009)

Biodiesel Use in School Buses and Government Vehicles

The Alabama Legislature encourages the use of biodiesel blends in the state. Public school systems are urged to use B20 in all diesel-powered school buses and state entities are encouraged to use biodiesel blends of at least B5 in diesel-powered motor vehicles. (Reference Senate Joint Resolution 14 and 15, 2009)

Interagency Alternative Fuels Working Group

The Alabama Legislature urges the Alabama Department of Finance to invite all state agencies, commissions, boards, counties, and municipalities to join an interagency Alternative Fuels Working Group to promote education, research and development, production, and consumption of alternative fuels. (Reference Senate Joint Resolution 16, 2009)

Alternative Fuel Tax

The state road tax for vehicles that operate on liquefied petroleum gas (LPG) and natural gas is paid through the purchase of 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 Contact

Marilyn Franklin/Barnie Gilliland
License and Fees Secretary
Liquefied Petroleum Gas Board
Phone (334) 242-5649
Fax (334) 240-3255
marilyn.franklin@lpgb.alabama.gov

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Alabama

Alabama Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Mark Bentley Executive Director	Alabama Clean Fuels Coalition	Phone:(205) 402-2755 Fax:(205) 402-9907
Keith Fordham Clean Cities Coordinator	South Alabama Regional Planning Commission/Clean Cities of Lower Alabama (Not Yet Designated)	Phone:(251) 232-0152 or (251) 343-6512 Fax:
Steven Richardson Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(304) 285-4185 Fax:(304) 285-4777
Kathy Hornsby Program Manager	Alabama State Energy Office, Alabama Department of Economic and Community Affairs	Phone:(334) 242-5284 Fax:(334) 242-0552
Marilyn Franklin/Barnie Gilliland License and Fees Secretary	Liquefied Petroleum Gas Board	Phone:(334) 242-5649 Fax:(334) 240-3255
Dale Aspy Environmental Engineer, Region 4	U.S. Environmental Protection Agency	Phone:(404) 562-9041 Fax:(404) 562-9019

Arkansas Incentives and Laws

Last Updated March 2009

Arkansas is the home of the Central Arkansas Clean Cities Coalition. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fuel Grants

The Arkansas Alternative Fuels Development Fund includes three types of grant incentives, including capital and operation incentives for alternative fuel producers and feedstock processors, production incentives for feedstock producers, and distribution incentives for alternative fuel distributors. Alternative fuel producers can receive $0.20 per gallon of alternative fuels produced, not to exceed $2 million. Feedstock processors can receive up to $3 million or 50% of the project cost, whichever is less, for the construction, modification, alteration, or retrofitting of feedstock processing facilities that are located and operated in Arkansas. Alternative fuel distributors can receive up to $300,000 or 50% of the project cost, whichever is less, to assist with the distribution and storage of alternative fuels or alternative fuel mixtures at distribution facilities that are located and operated in Arkansas. (Reference House Bill 2002, 2009, and Arkansas Code 15-13-101, 15-13-102, 15-13-301 to 15-13-305, and 19-6-809)

Idle Reduction Technology Loans

The 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 to reduce the amount of pollution produced by businesses as required by state and federal law. Idle reduction technologies for heavy-duty trucking applications are eligible for this loan. The maximum loan amount is $45,000, with a $65,000 lifetime maximum for any specific business. An eligible business must employ no more than 100 individuals and demonstrate proof of profitability and the ability to repay the loan.

Point of Contact

Amanda Leamons
Loan Program
Arkansas Department of Environmental Quality
Phone (501) 682-0923
Fax (501) 682-0880
leamonsa@adeq.state.ar.us
http://www.adeq.state.ar.us/poa/envloans.htm

State Laws and Regulations

Idle Reduction Weight Exemption

Any vehicle equipped with idle reduction technology may exceed the state's axle and gross vehicle weight limits by up to 400 pounds to compensate for the additional weight of the added idle reduction technology. (Reference Arkansas Highway Police Enforcement Policy 07-03-030)

Biofuels Use Requirement

All diesel-powered motor vehicles, light trucks, and equipment owned or leased by a state agency are required to operate using diesel fuel that contains a minimum of 2% biofuel by volume. For the purpose of this requirement, biofuel includes: biodiesel; renewable diesel; and other renewable, biodegradable mono alkyl ester combustible fuel derived from biomass. Waivers to the 2% biofuel standards for state agency vehicles may be granted if the fuel is not available in certain geographic area, if the fuel price is at least $0.15 cents more per gallon then the petroleum equivalent, or if compliance with the standard is not otherwise economically feasible. The Arkansas Bureau of Standards will work to ensure fuel quality standards. (Reference Arkansas Code 15-13-101, 15-13-102, and 15-13-202 to 15-13-205)

Alternative Fuels Tax

Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent basis. The tax rate for each 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 Metering

No 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 fuel in motor vehicles unless the natural gas fuel is 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 Permit

Any user of LNG or LPG to operate a vehicle 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) Tax

LPG used as a motor fuel is taxed on a per vehicle basis through an annual flat fee special fuel user's permit. 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) Conversion

Any individual or company who converts an AFV to operate on an alternative fuel must report the conversion to the Director of the Arkansas 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 Incentives

There are currently no known utility or private incentives offered in Arkansas

Arkansas Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Annett Pagan Clean Cities Coordinator	Central Arkansas Clean Cities Coalition	Phone:(501) 280-3079 Fax:(501) 280-3094
Steven Richardson Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(304) 285-4185 Fax:(304) 285-4777
Amanda Leamons Loan Program	Arkansas Department of Environmental Quality	Phone:(501) 682-0923 Fax:(501) 682-0880
Jenny Ahlen Renewable Energy Programs Coordinator	Arkansas Energy Office	Phone:(800) 558-2633 or (501) 682-2460 Fax:(501) 682-2703
Sandra Rennie Mobile Source Team Leader, Region 6	U.S. Environmental Protection Agency	Phone:(214) 665-7367 Fax:(214) 665-7263
Anna Friend Transportation Operations Specialist	U.S. General Services Administration	Phone:(303) 236-7221 Fax:(303) 236-7590

Arizona Incentives and Laws

Last Updated July 2009

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 Incentives

High Occupancy Vehicle (HOV) Lane Exemption

Contingent upon approval from the federal government, qualified low-emission and energy-efficient vehicles are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must meet specified fuel economy requirements and are required to display the low-emission and energy-efficient vehicle license plate. However, use of HOV lanes may be restricted if certain traffic volume and speed criteria are not met. A low-emission and energy-efficient vehicle is defined as a vehicle that has been certified by the U.S. Environmental Protection Agency in accordance with U.S. Code Section 166, or that is part of a federally approved pilot program. (Reference Senate Bill 1320, 2009, and Arizona Revised Statutes 28-337 and 28-2416)

Electric Vehicle (EV) Equipment Tax Credit

A tax credit of up to $75 is available to individuals for the installation of EV charging outlets in a house constructed by a taxpayer. (Reference Arizona Revised Statutes 43-1090 and 43-1176)

Alternative Fuel Vehicle (AFV) Parking Incentive

An 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)

State Laws and Regulations

Biodiesel Blend Labeling Requirement

Motor fuel dispensers used to dispense biodiesel blends of up to 5% must be labeled to indicate that the fuel dispensed may contain up to 5% biodiesel. (Reference House Bill 2330, 2009, and Arizona Revised Statutes 41-2083)

Idle Reduction Weight Exemption

A heavy-duty vehicle that is equipped with qualified idle reduction technology may exceed the Arizona weight limitations specified in Arizona Revised Statutes 28-110A by up to 400 pounds or the weight of the idle reduction technology, whichever is less. (Reference Senate Bill 1320, 2009, and Arizona Revised Statutes 28-1100)

Low Emission Vehicle (LEV) Standards

The Arizona Department of Environmental Quality (ADEQ) has adopted the LEV standards as set forth in Title 13 of the California Code of Regulations including the Zero Emission Vehicle sales and greenhouse gas emissions requirements. These regulations will apply to passenger cars and light-duty trucks beginning with Model Year 2012. (Reference Arizona Administrative Code Title 18, Article 18)

Biofuels Infrastructure Grants and Specifications

The Arizona Biofuels Conversion Program distributes grants to encourage the use of biofuels in the state and to promote development of fueling infrastructure. Once the program has been funded, 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 Arizona Revised Statutes 41-1515.01, 41-2051 and 41-2083)

Clean Fuel Contracts for Heavy-Duty Equipment

Any 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 Fueling Infrastructure

To the extent practical, a state agency or political subdivision that operates an alternative fueling station must allow vehicles owned or operated by other state agencies or political subdivisions to fuel at the station. (Reference Arizona Revised Statutes 1-215 and 49-572)

Alternative Fuel Use and Acquisition Requirements

Local governments in defined areas of Maricopa, Pinal, and Yavapai counties with a population of more than 1.2 million 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 Exemption

The 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 Requirement

All AFVs, except electric, solar, and hydrogen powered vehicles, registered in, or used to commute into, the metro areas of Phoenix or Tucson are required to complete emissions testing before the vehicle can be registered. An alternate fee may be paid for Model Year 2007 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 Plate

AFVs 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 Tax

The 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)

Electric Vehicle (EV) Parking

An 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 may be subject to a civil penalty of at least $350. (Reference Arizona Revised Statutes 28-876)

Alternative Fuel Vehicle (AFV) Dealers Information Dissemination Requirement

New 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) and Compressed Natural Gas (CNG) Device Fee

The Arizona Department of Weights and Measures collects license fees for LPG motor fuel measuring and CNG 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 Roadways

NEVs 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 Program

As 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 County

Heavy-duty diesel vehicles operating 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 Incentives

There are currently no known utility or private incentives offered in Arizona

Arizona Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Bill Sheaffer Executive Director	Valley of the Sun Clean Cities Coalition	Phone:(480) 314-0360 Fax:(480) 314-2457
Colleen Crowninshield Clean Cities Manager	Tucson Clean Cities Coalition	Phone:(520) 792-1093 x426 Fax:(520) 620-6981
Neil Kirschner Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-5793 Fax:
Collette Craig AFV Contact, Region 9	U.S. General Services Administration	Phone:(928) 524-3975 Fax:(928) 524-2324

California Incentives and Laws

Last Updated October 2009

California is the home of the Antelope Valley, Central Coast (www.c-5.org), Coachella Valley Region (www.c3vr.org), East Bay (www.cleancitieseastbay.org), Long Beach (www.longbeach.gov/pw/longbeachcleancities), Los Angeles (www.environmentla.org/clean cities/cleancitieshome.htm), Greater Sacramento (www.cleancitiessacramento.org), San Diego Regional (www.sdcleanfuels.org), San Francisco (www.sfenvironment.org/sfccc), San Joaquin Valley, Silicon Valley (www.svcleancities.org), Southern California (www.the-partnership.org/cleancities), and Western Riverside County (www.wrcog.cog.ca.us) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fuel and Vehicle Research and Development Incentives

The Alternative and Renewable Fuel and Vehicle Technology Program, established by Assembly Bill 118 and administered by the California Energy Commission, aims to increase the use of alternative and renewable fuels and innovative technologies. Grants and loans are available for projects that:

• develop and improve alternative and renewable low-carbon fuels;
• optimize alternative and renewable fuels for existing and developing engine technologies;
• produce alternative and renewable low-carbon fuels in California;
• decrease the overall impact of an alternative and renewable fuel's life-cycle carbon footprint and increase sustainability;
• expand fuel infrastructure, fueling stations, and equipment;
• improve light-, medium-, and heavy-duty vehicle technologies;
• retrofit medium- and heavy-duty on-road and non-road vehicle fleets;
• expand infrastructure connected with existing fleets, public transit, and transportation corridors; and
• establish workforce training programs, conduct public education and promotion, and create technology centers.

(Reference California Health and Safety Code 44270-44274.7)

Point of Contact

Peter Ward
Manager, Alternative and Renewable Fuel & Vehicle Technology Program
California Energy Commission
Phone (916) 654-4639
Fax (916) 654-4676
pward@energy.state.ca.us
http://www.energy.ca.gov/altfuels/index.html

High Occupancy Vehicle (HOV) Lane Exemption

Qualified compressed natural gas, hydrogen, electric, and hybrid electric vehicles (HEV) meeting specified California and federal emissions standards may use HOV lanes regardless of the number of occupants in the vehicle. Vehicles must be affixed with a Clean Air Vehicle sticker issued by the California Department of Motor Vehicles, which expire January 1, 2011. A limited number of Clean Air Vehicle stickers are available. Drivers of qualified HEVs registered to an address in the nine-county San Francisco Bay region must also obtain a Bay Area FasTrak account before using HOV lanes. For more information about qualified vehicles, see the California Air Resources Board Carpool Lane Use Stickers Web site. (Reference California Vehicle Code 5205.5 and 21655.9)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants

The Assembly Bill (AB) 2766 Motor Vehicle Registration Fee Program provides funding for projects that reduce air pollution from on- and off-road vehicles. Eligible projects include purchasing AFVs and developing alternative fueling infrastructure. Contact local air districts for more information about available grant funding and distribution from the AB 2766 Motor Vehicle Registration Fee Program. (Reference Health and Safety Code 44220 (b))

Emissions Reductions Grants

The 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 heavy-duty fleet modernization, light-duty vehicle replacements and retrofits, idle reduction, and the purchase of cleaner off-road vehicles and equipment. The Carl Moyer Program provides funds for significant near-term reductions in nitrogen oxide emissions, reactive organic gases, and particulate matter emissions. Contact local air districts for more information about grant funding availability and distribution from the Carl Moyer Program. (Reference California Health and Safety Code 44280)

Point of Contact

Carl Moyer Program
California Air Resources Board
Phone (877) 564-7268
http://www.arb.ca.gov/msprog/moyer/moyer.htm

Heavy-Duty Vehicle Emissions Reduction Grants

The Goods Movement Emission Reduction Program provides funding for projects that reduce emissions from freight movement in the state, including but not limited to heavy-duty truck replacement, repower, or retrofit; and truck stop electrification infrastructure development. Contact local air districts for more information about funding availability and distribution. (Reference California Health and Safety Code 39625-39627.5)

Point of Contact

Goods Movement Emission Reduction Program
California Air Resources Board
Phone (916) 44-GOODS (444-6637)
gmbond@arb.ca.gov
http://www.arb.ca.gov/bonds/gmbond/gmbond.htm

Lower-Emission School Bus Grants

The Lower-Emission School Bus Program provides grant funding for the replacement of older school buses and for the purchase of air pollution control equipment for in-use buses. Air pollution control devices must be verified by the California Air Resources Board to reduce particulate matter emissions by at least 85% for each retrofitted school bus. Public school districts in California, that own their own buses, are eligible to receive funding. Private school transportation providers that contract with public school districts in California to provide transportation services are also eligible to receive funding for the retrofit of in-use buses. New buses purchased to replace older buses may be fueled by diesel or an alternative fuel, provided that the required emissions standards specified in the current Lower-Emissions School Bus Program Guidelines are met. Commercially available hybrid school buses may be partially eligible for funding. Contact local air districts for more information about grant funding availability and distribution from the Lower-Emission School Bus Program. (Reference California Health and Safety Code 44299.90-44299.91)

Point of Contact

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

Alternative Fuel and Advanced Technology Research and Development

The Innovative Clean Air Technologies (ICAT) Program was developed by the California Air Resources Board (ARB) and co-funds demonstration projects of innovative technologies that will improve emission prevention or control while promoting new industries and jobs in California. Proposals related to current ARB programs, such as developing alternatives to diesel fuel and diesel engines, increasing efficiency of zero-emission vehicles, and developing fuel cells and hydrogen technology, are of particular interest. The ICAT Program is currently on hold but is expected to resume for future solicitations.

Vehicle Emission Reduction Grants - Sacramento

The Sacramento Emergency Clean Air and Transportation Program provides grants to offset the costs of projects that reduce on-road emissions of nitrogen oxide within the Sacramento federal ozone non-attainment area. Eligible projects include, but are not limited to, heavy-duty diesel vehicle upgrades and exchanges. Implementation of other advanced technologies may also qualify. (Reference California Health and Safety Code 44299.50-44299.55)

Point of Contact

Kristian Damkier
Associate Air Quality Engineer
Sacramento Metropolitan Air Quality Management District
Phone (916) 874-4892
kdamkier@airquality.org
http://www.4secat.com/index1.html

Electric Vehicle (EV) Parking Incentive - Sacramento

Sacramento offers free parking to individuals or small businesses certified by the city's Office of Small Business Development that own or lease EVs with an EV parking pass in designated downtown parking garages and surface lots. Free EV charging is also provided in several parking garages.

Point of Contact

Parking Services Division
City of Sacramento
Phone (916) 808-5110
Fax (916) 808-5115
http://www.cityofsacramento.org/transportation/parking

Employer Invested Emission Reduction Funding - South Coast

The South Coast Air Quality Management District (SCAQMD) administers the Air Quality Investment Program (AQIP). The AQIP provides funding to allow employers within SCAQMD's jurisdiction to make annual investments into an administered fund to meet employers' 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 may be considered for funding.

Point of Contact

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

Technology Advancement Funding - South Coast

The South Coast Air Quality Management District's Clean Fuels Program 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 million in funding is available annually with expected cost-share from other project partners and stakeholders.

Point of Contact

Dipankar Sarkar
Technology Demonstration Manager
South Coast Air Quality Management District
Phone (909) 396-2273
Fax (909) 396-3252
dsarkar@aqmd.gov
http://www.aqmd.gov/tao/Demonstration/index.htm

Low-Emission Vehicle Incentives and Technical Training - San Joaquin Valley

The REMOVE II Program (Program) is administered by the San Joaquin Valley Air Pollution Control District (APCD) and provides incentives for the purchase of low-emission passenger vehicles, light-duty trucks, small buses, and trucks with Gross Vehicle Weight Ratings of 14,000 pounds or less. The purpose of the Program is to encourage the early introduction of low-emission vehicles in the San Joaquin Valley. The Program offers between $1,000 and $3,000 per vehicle and varies according to 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 includes 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, fueling stations, and tools involved in the implementation of alternative fuel technologies.

Air Quality Improvement Program Funding - Ventura County

The Ventura County Air Pollution Control District (APCD) 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 located in Ventura 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.

Point of Contact

Stan Cowen
Air Quality Engineer
Ventura County Air Pollution Control District
Phone (805) 645-1408
Fax (805) 645-1444
stan@vcapcd.org
http://www.vcapcd.org/grant_programs.htm

Alternative Fuel and Advanced Vehicle and Infrastructure Incentives - Vacaville

The City of Vacaville provides incentives for the purchase of new qualified battery electric vehicles, dedicated compressed natural gas (CNG) vehicles, plug-in hybrid electric vehicles, and CNG vehicle home fueling appliances.

Point of Contact

Ed Huestis
Transportation Systems Manager
City of Vacaville
Phone (707) 449-5424
Fax (707) 449-5346
ehuestis@cityofvacaville.com
http://www.cityofvacaville.com/departments/public_works/e_cng_vehicles.php

Clean Vehicle Parking Incentive - Hermosa Beach

Downtown 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 free for the maximum time limit designated on the meter.

Point of Contact

Ennis Jackson
Administrative Services Coordinator
City of Hermosa Beach Police
Phone (310) 318-0249
ejackson@hermosabch.org

Clean Vehicle Parking Incentive - San Jose

The City of San Jose has developed a Clean Air Vehicle Parking Program to reduce vehicle 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. 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. Zero Emission Vehicles purchased outside San Jose are also eligible to apply as long as the vehicle is registered in San Jose.

Point of Contact

Pamela McAnally
Clean Air Vehicle Parking Program Manager
City of San Jose Department of Transportation
Phone (408) 535-3850
pamela.mcanally@sanjoseca.gov
http://www.sjdowntownparking.com/clean_air_program.php

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Parking Incentive - Santa Monica

The City of Santa Monica offers free meter parking for dedicated electric vehicles displaying the Zero Emission Vehicle decal, and compressed natural gas and HEVs displaying properly affixed California Clean Air Vehicle Decals. Vehicles may park free for the maximum time limit posted on the meter per trip.

Point of Contact

Lynne Taffert
Traffic Services
Santa Monica Police Department
Phone (310) 458-2226
lynne.taffert@smgov.net

Electric Vehicle (EV) Parking Incentive - Los Angeles Airport

The Los Angeles Airport (LAX) offers free parking and charging for EVs in the lower/arrivals level of Parking Structures 1 and 6.

State Laws and Regulations

Electric Vehicle (EV) Infrastructure Evaluation

The California Public Utilities Commission (Commission), in consultation with the California Energy Commission, California Air Resources Board, electrical corporations, and the motor vehicle industry, must evaluate policies in an effort to develop infrastructure sufficient to overcome any barriers to the widespread deployment and use of EVs and plug-in hybrid electric vehicles (PHEVs). By July 1, 2011, the Commission is required to adopt rules to address the following:

• The impacts on electrical infrastructure and any infrastructure upgrades necessary for widespread use of EVs and PHEVs, including the role and development of public charging infrastructure;
• The impact of EVs and PHEVs on grid stability and the integration of renewable energy resources;
• The technological advances necessary to ensure the widespread use of EVs and PHEVs and what role the state should take to support the development of this technology;
• The existing code and permit requirements that will impact the widespread use of EVs and PHEVs and any recommended changes to existing policies that may be a barrier to the widespread use of EVs and PHEVs;
• expand fuel infrastructure, fueling stations, and equipment;
• The role the state should take to ensure that technologies employed in EVs and PHEVs work harmoniously and across service territories; and
• The impact of widespread use of EVs and PHEVs on achieving the state's greenhouse gas emissions reductions goals and renewables portfolio standard program, and what steps should be taken to address the possibility of shifting emissions reductions responsibilities from the transportation sector to the electrical industry.

(Reference Senate Bill 626, 2009, and California Public Utilities Code 740.2)

State Transportation Plan

The California Department of Transportation (Caltrans) is required to update the California Transportation Plan (Plan) by December 31, 2015, and every five years thereafter. The Plan must address how the state will achieve maximum feasible emissions reductions, taking into consideration the use of alternative fuels, new vehicle technology, and tailpipe emissions reductions. Caltrans must prepare and submit an interim report to the California Transportation Commission and to the Chairs of the Senate and Assembly committees related to transportation, environmental quality, natural resources, and local government by December 31, 2012. Caltrans must consult and coordinate with related state agencies, air quality management districts, public transit operators, and regional transportation planning agencies. Caltrans must also provide an opportunity for input by the general public. A final draft of the Plan must be submitted to the Legislature and Governor. (Reference Senate Bill 391, 2009, and California Government Code 65071-65073)

Electric Vehicle (EV) Charging Requirements

New EVs and plug-in hybrid electric vehicles (PHEVs) must be equipped with a conductive charger inlet port that meets the specifications contained in Society of Automotive Engineers (SAE) standard J1772. EVs and PHEVs must be equipped with an on-board charger with a minimum output of 3.3 kilovolt amps. These requirements do not apply to EVs and PHEVs that are only capable of Level 1 charging, a charging method that allows a vehicle to be charged by having its charger connected to the most common grounded receptacle. (Reference California Code of Regulations Title 13, Section 1962.2)

Low Carbon Fuel Standard

California's Low Carbon Fuel Standard (LCFS) Program calls for a reduction in the carbon intensity of the state's transportation fuels by a minimum of 10% by 2020. The California Environmental Protection Agency, in coordination with the University of California, the California Energy Commission, and other state agencies, has developed draft regulations. In 2009, the California Air Resources Board approved the LCFS, which establishes standards that fuel producers and importers must meet each year beginning in 2011. Carbon intensity reductions are based on reformulated gasoline mixed with 10%, by volume, corn-derived ethanol, and low-sulfur diesel fuel. The LCFS is expected to be effective by the end of 2009. (Reference Executive Order S-01-07, 2007, and California Health and Safety Code 38500-38599)

Low Emission Vehicle (LEV) Standards

California's LEV II exhaust emission standards apply to Model Year 2004 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles meeting specified exhaust standards. The LEV II standards represent the maximum exhaust emissions for LEVs, Ultra Low Emission Vehicles, and Super Ultra Low Emission Vehicles, including flexible fuel, bi-fuel, and dual fuel vehicles when operating on an alternative fuel. New Model Year 2009 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles must meet specified fleet average greenhouse gas (GHG) exhaust emissions requirements. Each manufacturer must comply with these fleet average GHG requirements, which are based on a calculation established by the California Air Resources Board. An alternative compliance method exists for bi-fuel, flexible fuel, dual-fuel, and grid-connected hybrid electric vehicles. A manufacturer that achieves a fleet average GHG value that is lower than the fleet average GHG requirement applicable to the 2012 Model Year may receive credits for each model year. (Reference California Code of Regulations Title 13, Section 1961-1961.1)

Zero Emission Vehicle (ZEV) Production Requirements

New passenger cars, light-duty trucks, and medium-duty passenger vehicles are 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. Manufacturers must produce and deliver for sale in California a minimum percentage of ZEVs for each model year as follows:

Model Year	Minimum ZEV Requirement
2010-2011	11%
2012-2014	12%
2015-2017	14%
2018 and on	16%

Manufacturers may comply with the ZEV requirements through multiple alternative compliance options that include the production of low-emission vehicles.

(Reference California Code of Regulations Title 13, Section 1962.1)

Regional Climate Change Initiative

Governors of California, Oregon, and Washington 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 California, Oregon, and Washington must act individually as well as regionally to reduce greenhouse gas (GHG) emissions. The Initiative includes adopting standards to reduce GHG emissions from vehicles by expanding markets for efficiency, renewable energy and alternative fuels, including creating a working group on developing hydrogen fuel. Building upon this commitment, California joined other western states and several Canadian provinces to sign an agreement establishing the Western Climate Initiative, a joint effort to reduce GHG emissions and address climate change.

Alternative Fuel Vehicle Retrofit Regulations

Converting emission-controlled vehicles with retrofit systems to operate on an alternative fuel in lieu of the original gasoline or diesel fuel is prohibited unless the retrofit systems have been evaluated and certified by the California Air Resources Board (ARB). The certification of an alternative fuel retrofit system must be obtained by its manufacturer and is issued by ARB once the manufacturer demonstrates compliance with the emission, warranty, and durability requirements. A manufacturer is defined as a person or company who manufactures or assembles an alternative fuel retrofit system for sale in California; this definition does not include individuals wishing to convert vehicles for personal use. Individuals interested in converting their vehicles to operate on an alternative fuel must ensure that the alternative fuel retrofit systems used for their vehicles have been certified by ARB. For more information, see the ARB Alternative Fuel Retrofit System Web site. (Reference California Code of Regulations Title 13, Section 2030-2031, and California Vehicle Code 27156)

Alternative Fuel Tax

The 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 vehicle weights:

Unladen Weight	Fee
All passenger cars and other vehicles 4,000 pounds (lbs.) or less	$36
More than 4,000 lbs. but less than 8,001 lbs.	$72
More than 8,000 lbs. but less than 12,001 lbs.	$120
12,001 lbs. or more	$168

Alternatively, owners and operators may pay an excise tax on CNG of $0.07 per 100 cubic feet measured at standard pressure and temperature, $0.06 per gallon of LNG, and $0.06 per gallon of LPG. The excise tax on ethanol and methanol fuel blends containing up to 15% gasoline or diesel fuel is half of the current tax on gasoline and diesel.

(Reference California Revenue and Taxation Code 8651-8651.8)

Compressed Natural Gas (CNG) Tax Exemption for Transit Use

CNG used by local agencies or public transit operators as a motor vehicle fuel in the operation of public transit services is exempt from any applicable fuel taxes. (Reference California Revenue and Taxation Code 7284.2)

Fleet Vehicle Procurement Requirements

When awarding a vehicle procurement contract, every city, county, and special district, including school and community college districts, is authorized to require that 75% of the passenger cars and/or light-duty trucks acquired be energy-efficient vehicles. By definition, this includes hybrid electric vehicles or alternative fuel vehicles that meet California's advanced technology partial zero emission vehicle (AT PZEV) standards. Vehicle procurement contracts are also authorized to evaluate fuel economy and life-cycle factors. (Reference California Public Resources Code 25725-25726)

Vehicle Acquisition and Petroleum Reduction Requirements

The California Department of General Services (DGS) is responsible for maintaining specifications and standards for passenger cars and light-duty trucks that are purchased or leased for use by state offices, agencies, and departments. These specifications include minimum vehicle emission standards and encourage the purchase or lease of fuel-efficient and alternatively fueled vehicles. On an annual basis, the DGS must compile information including, but not limited to, the number of alternative fuel and hybrid electric vehicles acquired, the locations of the alternative fuel pumps available for those vehicles, and the total amount of alternative fuels used.

Vehicles owned or leased by the state that are capable of operating on alternative fuel must operate on that fuel unless the alternative fuel is not available. Additionally, the Secretary of State and Consumer Services, in consultation with the DGS and other appropriate state agencies, must develop, implement, and submit to the Legislature and the Governor, a plan to increase the state fleet's use of alternative fuels, synthetic lubricants, and fuel-efficient vehicles. This must be done by reducing or displacing the fleet's consumption of petroleum products by 10% by January 1, 2012, and 20% by January 1, 2020, as compared to the 2003 consumption level. The DGS must also take steps to transfer vehicles between agencies and departments to ensure that the most fuel-efficient vehicles are used and to eliminate the least fuel-efficient vehicles from the state's motor vehicle fleet. Beginning April 1, 2010, and annually thereafter, the DGS must provide progress reports to the California Department of Finance, related legislative committees of the Legislature, and the general public via the DGS Web site.

(Reference Executive Order S-14-09, 2009, and California Public Resources Code 25722.5, 25722.6, and 25722.8)

Alternative Fuel and Vehicle Policy Development

The California Energy Commission is required to prepare and provide an Integrated Energy Policy Report (IEPR) to the governor on a biannual basis. The IEPR provides an overview of major energy trends and issues facing the state, including those related to transportation fuels, technologies, and infrastructure. The IEPR 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. The primary purpose of the IEPR is to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the state's economy, and protect public health and safety. (Reference California Public Resources Code 25302)

State Biofuels Development Plan

The 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, prepared the Bioenergy Action Plan for California, which recommended: 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 increased acquisition of flexible fuel vehicles to 50% of total new vehicles purchased by state agencies by 2010. (Reference Executive Order S-06-06, 2006)

Hydrogen Energy Plan

California's 21 interstate freeways are 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. (Reference Executive Order S-7-04, 2004, and California Health and Safety Code 43868-43869)

Hydrogen Fuel Specifications

The California Department of Food and Agriculture, Division of Measurement Standards (DMS) established interim specifications for hydrogen fuels for use in internal combustion engines and fuel cells in motor vehicles. These specifications are effective 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 California Code of Regulations Title 4, Section 4180-4181)

Heavy-Duty Truck Idle Reduction Requirements

A driver of a diesel-fueled vehicle with a Gross Vehicle Weight Rating of more than 10,000 pounds is not permitted to idle the vehicle's primary engine for more than five minutes at any location, and is not allowed to operate a diesel-fueled auxiliary power system (APS) on the vehicle for more than five minutes when located within 100 feet of a restricted area. Exceptions do apply in certain situations and for certain vehicles. Any internal combustion APS used in California must comply with applicable state off-road and/or federal non-road emission standards and test procedures for its fuel type and power category to ensure that emissions are not exceeding the emissions of a truck engine operating at idle.

Model Year 2008 and newer heavy-duty diesel engines must be equipped with non-programmable engine shutdown systems that automatically shuts down the engine after five minutes of idling or optionally meets a stringent nitrogen oxide idling emission standard. Operators of trucks equipped with sleeper berths are required to manually shut down the engine when idling more than five minutes at any location within California and are subject to fines for violation. The California 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, Section 2485)

Point of Contact

David Chen
Idle Reduction
California Air Resources Board
Phone (626) 575-6673
dchen@arb.ca.gov
http://www.arb.ca.gov/msprog/truck-idling/truck-idling.htm

School Bus Idle Reduction Requirement

A driver of a school bus is required to turn off the engine upon stopping at a school, or within 100 feet of a school, and must not turn the engine on more than 30 seconds before beginning to depart from the location. Additionally, the driver may not allow the vehicle to idle at any location greater than 100 feet from a school for more than five consecutive minutes, or for periods totally more than five minutes in any one hour. This requirement also applies to transit and commercial vehicles operating within 100 feet of a school. Exemptions apply for necessary idling while stopped in traffic, at traffic signals, and at the direction of law enforcement personnel. (Reference California Code of Regulations Title 13, Section 2480)

Mobile Source Emissions Reduction Requirements

Through its Mobile Sources Program, the California Air Resources Board (ARB) has developed programs and policies to reduce emissions. A drayage/port truck rule regulates heavy-duty diesel-fueled vehicles that transport cargo to and from California's ports and intermodal rail facilities. The rule requires that drayage trucks be equipped with engines certified to current California or federal emissions standards. A public transit bus rule 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 meet their emissions reduction requirements: using alternative fuels, including zero-emission buses; or clean diesel, including retrofit devices. A solid waste collection vehicle rule regulates solid waste collection vehicles 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. The fleet rule for public agencies and utilities requires fleets to install Best Available Control Technology devices on vehicles or purchase vehicles that run on alternative fuels or use advanced technologies to achieve emissions requirements by specified implementation dates. (Reference California Code of Regulations Title 13, 2021-2027)

Fuel Efficient Tire Program Development

The California Energy Commission is required to adopt and implement a state-wide Fuel Efficient Tire Program that includes a consumer information and education program and minimum tire efficiency standards. (Reference California Public Resources Code 25770)

Point of Contact

Ray Tuvell
Program Manager, Fuel Efficient Tires
California Energy Commission
Phone (916) 654-4201
Fax (916) 653-4470
rtuvell@energy.state.ca.us
http://www.energy.ca.gov/tires/index.html

Low-Speed Vehicle Access to Roadways

A low-speed vehicle, or neighborhood electric vehicle, is defined as a motor vehicle with four wheels, a Gross Vehicle Weight Rating of 3,000 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 must meet federal safety standards established in Title 49 of the Code of Federal Regulations, section 571.500. Drivers of low-speed vehicles must comply with all provisions applicable to drivers of motor vehicles. The operator of a low-speed vehicle may not operate the vehicle on any roadway with a posted speed limit greater than 35 mph except to cross a roadway at an intersection. (Reference California Vehicle Code 385.5 and 21250-21266)

Electric Vehicle (EV) Charging Infrastructure Promotion - Bay Area

Mayors of San Francisco, San Jose, and Oakland will follow a policy plan to develop and expand the infrastructure needed to promote the use of EVs. Policy steps include: expediting the permit and installation processes for charging outlets; providing incentives for employers and other organizations who install charging infrastructure at the workplace and other parking facilities; developing standard regulations governing EV infrastructure across the region; and establishing programs to purchase EVs for use by city and state employees. The mayors will work with other cities in the Bay Area as well as regional government organizations and private sector partners. (Reference San Francisco Office of the Mayor Press Release, 2008)

Alternative Fuel Promotion - San Jose

As part of San Jose's Green Vision (PDF 161 KB), the City of San Jose has committed to several alternative fuel and hybrid electric transportation goals:
1) Increase the use of alternative energy vehicles for airport operations and encourage the use of zero-emission transportation modes to and from the airport.
2) Establish a research center to encourage the development of alternative fuel vehicles for use in mass and private transit.
3) Create local policies to encourage residents and businesses to use zero emission and hybrid electric vehicles.
4) Implement a Green Fleet Policy (PDF 423 KB) to ensure that 100% of public fleet vehicles run on alternative fuels by 2022.

Heavy-Duty Idle Reduction Requirement - Sacramento

The City of Sacramento prohibits 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 8.116)

Fleet Fuel Use and Vehicle Acquisition Requirements - San Francisco

The City of San Francisco (City) requires that diesel vehicles in the City's municipal fleet operate using biodiesel blends of at least 20% (B20). City departments must also pursue actions to use higher biodiesel blends, up to and including neat biodiesel (B100). Additionally, bi-fuel vehicles owned by the City are not allowed to use petroleum-based fuels while operating within the City and County of San Francisco. All vehicles purchased or leased by City departments must meet or exceed specified emissions standards. (Reference Executive Directive 06-02, 2006, and City and County of San Francisco Environmental Code 406-407)

Public Agency Fleet Emissions Reduction Requirements - South Coast

The South Coast Air Quality Management District (SCAQMD) 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, refuse haulers, 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 1186.1 and 1191-1196)

Point of Contact

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

Neighborhood Electric Vehicle (NEV) Access to Roadways - Placer and Orange Counties

Until January 1, 2012, the cities of Lincoln and Rocklin in Placer County are authorized to establish an NEV transportation plan. NEVs are defined as low-speed vehicles that may be used on state highways under certain conditions. The cities were required to prepare a report to the state legislature that includes a description of the NEV transportation plan, an evaluation of the effectiveness of the plan, and a recommendation as to whether the authorization to establish NEV transportation plans should be expanded statewide. Additionally, discussions are encouraged between the California 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.

Until January 1, 2013, the County of Orange is authorized to establish an NEV transportation plan for the Ranch Plan Planned Community with similar requirements. A report to the state legislature is required by November 1, 2011.

(Reference California Streets and Highways Code 1963-1963.8 and 1965-1965.7)

Utilities/Private Incentives

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (AFV) Insurance Discount

Farmers Insurance provides a discount of up to 10% on all major insurance coverage for HEV and AFV owners. To qualify, the automobile must be: 1) designed to use a dedicated alternative fuel as defined in the Energy Policy Act of 1992; or 2) an HEV. A complete Vehicle Identification Number is required to validate vehicle eligibility.

Electric Vehicle (EV) Charging Rate Reduction - SMUD

The Sacramento Municipal Utility District (SMUD) offers a discounted rate of approximately 50% as compared to the regular residential rate for electricity used by residential customers to charge EVs. EV drivers must sign up for the appropriate residential time-of-use rate. SMUD also offers lower off-peak time-of-use rates for EV charging by commercial customers.

Point of Contact

Electric Transportation Department
Sacramento Municipal Utility District
Phone (916) 732-5486
http://www.smud.org/en/community-environment/evs/pages/index.aspx

Electric Vehicle (EV) Charging Rate Reduction - LADWP

The Los Angeles Department of Water and Power (LADWP) offers a discounted rate of $0.025/kWh for electricity used to charge EVs during off-peak times. 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 Contact

Emerging Technologies Group
Los Angeles Department of Water and Power
Phone (213) 367-0290
http://www.ladwp.com/ladwp/cms/ladwp002056.jsp

Electric Vehicle (EV) Charging Rate Reduction - SCE

Southern California Edison (SCE) offers a discounted rate to customers for electricity used to charge EVs. Two rate schedules are available for EV charging during on- and off-peak hours.

Point of Contact

Southern California Edison
Phone (800) 4EV-INFO
http://www.sce.com/residential/rates/electric-vehicles.htm

Low-Emission Vehicle Electricity Rate Reduction - PG&E

Pacific Gas & Electric (PG&E) offers a discounted rate for electricity used to charge battery electric vehicles, plug-in hybrid electric vehicles, and natural gas vehicle home fueling appliances.

Point of Contact

Clean Air Transportation
Pacific Gas & Electric
Phone (800) 684-4648
cleanairvehicles@pge.com
http://www.pge.com/about/environment/pge/cleanair/

Electric Vehicle (EV) and Natural Gas Infrastructure Charging Rate Reduction - SDG&E

San Diego Gas & Electric (SDG&E) offers discounted rates to customers for electricity used to charge EVs or qualified compressed natural gas fueling facilities. SDG&E’s EV Time of Use (TOU) rate is available in three variations, all of which charge customers based on the time of day the energy is consumed. These TOU rates are non-tiered and all SDG&E rates have four main components, notably the Residential Rate Tariff and the Electric Energy Commodity Rates. For more information about the rates and their components, see the SDG&E Electric Tariff Web site.

Point of Contact

Electric Transportation Program
Clean Air Transportation
San Diego Gas & Electric
etprogram@sdge.com
http://www.sdge.com/environment/cleantransportation.shtml

Natural Gas Vehicle Home Fueling Infrastructure Incentive - South Coast

Residents of the South Coast Air Quality Management District may be eligible for an incentive of up to $2,000 toward the purchase of a qualified natural gas vehicle home fueling appliance.

Low-Emission Taxi Incentives - San Francisco

The San Francisco Taxicab Commission has committed to reduce greenhouse gas emissions from the San Francisco taxi fleet by 20% by 2012, as compared to 1990 emissions levels. Under the Clean Taxi Program, companies may apply for a surcharge of up to $7.50 on any gate fee charged for the use of certain low-emission vehicles. Additionally, grants of up to $2,000 per vehicle may be available from the San Francisco County Transportation Authority toward the purchase of light-duty hybrid electric and compressed natural gas taxis.

Employee Vehicle Purchase Incentives - Riverside

City of Riverside employees are eligible to receive a rebate toward the purchase of qualified natural gas or hybrid electric Advanced Technology Partial Zero Emission Vehicles that are purchased from a City of Riverside automobile dealership. The rebate for a new qualified vehicle is worth up to $2,000, or $1,000 for a qualified used vehicle.

Point of Contact

Chris Durham
Administrative Analyst
City of Riverside Public Works Administration
Phone (951) 826-5283
Fax (951) 351-6267
cdurham@riversideca.gov

California Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Curtis Martin Clean Cities Coordinator	Antelope Valley Clean Cities Coalition	Phone:(661) 265-6000 Fax:(661) 265-6045
Melissa Guise Clean Cities Coordinator	Central Coast Clean Cities Coalition	Phone:(805) 781-4667 Fax:(805) 781-1002
Suzanne Seivright Clean Cities Co-Coordinator	Clean Cities Coachella Valley Region	Phone:(909) 844-2297 Fax:
Richard Cromwell III Clean Cities Co-Coordinator	Clean Cities Coachella Valley Region	Phone:(760) 329-6462 Fax:(760) 329-6463
Chris Ferrara Clean Cities Co-Coordinator	East Bay Clean Cities Coalition	Phone:(415) 973-5408 Fax:
Richard Battersby Clean Cities Co-Coordinator	East Bay Clean Cities Coalition	Phone:(530) 752-9666 Fax:(530) 752-9668
Richard Steinhaus Clean Cities Coordinator	Long Beach Clean Cities Coalition	Phone:(562) 570-5407 Fax:(562) 570-5414
Heloise Froelich Clean Cities Co-Coordinator	Los Angeles Clean Cities Coalition	Phone:(213) 978-0854 Fax:(213) 978-0893
Wayne King Clean Cities Co-Coordinator	Los Angeles Clean Cities Coalition	Phone:(213) 978-0857 Fax:
Jill Egbert Clean Cities Coordinator	Greater Sacramento Clean Cities Coalition	Phone:(530) 757-5235 Fax:(530) 757-5240
Greg Newhouse Clean Cities Coordinator	San Diego Regional Clean Cities Coalition	Phone:(619) 388-7673 Fax:(619) 388-7905
Vandana Bali Clean Cities Coordinator	San Francisco Clean Cities Coalition	Phone:(415) 355-3728 Fax:(415) 554-6393
Linda Urata Clean Cities Co-Coordinator	San Joaquin Valley Clean Cities Coalition	Phone:(661) 835-8665 Fax:
Roger Teschner Clean Cities Co-Coordinator	San Joaquin Valley Clean Cities Coalition	Phone:(559) 324-6456 Fax:(559) 324-6438
Margo Sidener Clean Cities Coordinator	Silicon Valley Clean Cities Coalition (Breathe California)	Phone:(408) 998-5865 Fax:(408) 998-0578
JoAnn Armenta Clean Cities Coordinator	Southern California Clean Cities Coalition	Phone:(909) 396-5757 Fax:(909) 396-5754
Barbara Spoonhour Clean Cities Coordinator	Western Riverside County Clean Cities Coalition	Phone:(951) 955-8313 Fax:(951) 787-7991
Mike Bednarz Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-4862 Fax:(412) 386-4183
Peter Ward Manager, Alternative and Renewable Fuel & Vehicle Technology Program	California Energy Commission	Phone:(916) 654-4639 Fax:(916) 654-4676
Lisa Jennings Air Pollution Specialist, Lower-Emission School Bus Program	California Air Resources Board	Phone:(916) 322-6913 Fax:(916) 322-3923
Ray Tuvell Program Manager, Fuel Efficient Tires	California Energy Commission	Phone:(916) 654-4201 Fax:(916) 653-4470
David Chen Idle Reduction	California Air Resources Board	Phone:(626) 575-6673 Fax:
Carl Moyer Program	California Air Resources Board	Phone:(877) 564-7268 Fax:
Goods Movement Emission Reduction Program	California Air Resources Board	Phone:(916) 44-GOODS (444-6637) Fax:
Dipankar Sarkar Technology Demonstration Manager	South Coast Air Quality Management District	Phone:(909) 396-2273 Fax:(909) 396-3252
Shashi Singeetham Air Quality Specialist	South Coast Air Quality Management District	Phone:(909) 396-3298 Fax:(909) 396-3608
Fleet Rule Implementation Hotline	South Coast Air Quality Management District	Phone:(909) 396-3044 Fax:
Stan Cowen Air Quality Engineer	Ventura County Air Pollution Control District	Phone:(805) 645-1408 Fax:(805) 645-1444
Kristian Damkier Associate Air Quality Engineer	Sacramento Metropolitan Air Quality Management District	Phone:(916) 874-4892 Fax:
Susan Romeo Director of Marketing and Communications	CALSTART	Phone:(626) 744-5686 Fax:(626) 744-5610
Ennis Jackson Administrative Services Coordinator	City of Hermosa Beach Police	Phone:(310) 318-0249 Fax:
Clean Air Vehicle Program Department of Transportation	City of Los Angeles	Phone:(213) 972-8470 Fax:
Chris Durham Administrative Analyst	City of Riverside Public Works Administration	Phone:(951) 826-5283 Fax:(951) 351-6267
Parking Services Division	City of Sacramento	Phone:(916) 808-5110 Fax:(916) 808-5115
Pamela McAnally Clean Air Vehicle Parking Program Manager	City of San Jose Department of Transportation	Phone:(408) 535-3850 Fax:
Lynne Taffert Traffic Services	Santa Monica Police Department	Phone:(310) 458-2226 Fax:
Ed Huestis Transportation Systems Manager	City of Vacaville	Phone:(707) 449-5424 Fax:(707) 449-5346
Emerging Technologies Group	Los Angeles Department of Water and Power	Phone:(213) 367-0290 Fax:
Clean Air Transportation	Pacific Gas & Electric	Phone:(800) 684-4648 Fax:
Electric Transportation Program Clean Air Transportation	San Diego Gas & Electric	Phone: Fax:
Electric Transportation Department	Sacramento Municipal Utility District	Phone:(916) 732-5486 Fax:
	Southern California Edison	Phone:(800) 4EV-INFO Fax:
Collette Craig AFV Contact, Region 9	U.S. General Services Administration	Phone:(928) 524-3975 Fax:(928) 524-2324

Colorado Incentives and Laws

Last Updated August 2009

Colorado is the home of the Denver Metro (www.lungcolorado.org/CleanCities.htm), Northern Colorado (www.northcolocleancities.com), and Southern Colorado Clean Cities Coalitions (http://southern.cleancitiescolorado.org/). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Electric Vehicle (EV) Charging Infrastructure Grants

Grants are available to local governments for the installation of EV charging stations. Grants are prioritized based on the local government's commitment to energy efficiency. (Reference Senate Bill 075, 2009 and Colorado Revised Statutes 24-38.5-102 and 24-38.5-103)

Truck Emissions Reduction and Fuel Efficiency Grants

The Green Truck Grant Program was established by the Colorado Governor's Energy Office to provide grants to owners of commercial trucks used in interstate commerce to reduce emissions and energy usage. Reimbursements of up to 25% of overall costs may be made to qualified recipients who purchase or install fuel-efficient technologies and emission-control devices approved by the U.S. Environmental Protection Agency's (EPA) SmartWay Transport Partnership, or any successor program, to reduce fuel consumption and emissions of greenhouse gases and other harmful air pollutants from trucks. Individual recipients may not receive more than $50,000, and the total of all reimbursements under this program may not exceed $500,000 per fiscal year.

Additionally, grants of up to $5,000 per qualified recipient are available for retiring and scrapping 1989 or older model year trucks that have been documented to have been in use for at least 10,000 miles during the calendar year preceding the recipient's grant application, and which are donated to an established auto parts or scrap metal recycler that meets state and U.S. EPA recycling requirements. The total of all reimbursements under this program may not exceed $250,000 per fiscal year. (Reference House Bill 1298, 2009, and Colorado Revised Statutes 42-1-301 to 42-1-305)

Biofuels Research Grants

The 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 Colorado Revised Statutes 24-48.5-108)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Credit

An income tax credit is available from the Colorado Department of Revenue for a motor vehicle titled and registered in Colorado that uses or is converted to use an alternative fuel, is a hybrid vehicle, or has its power source replaced with one that uses an alternative fuel. For vehicles purchased or converted between January 1, 2007, and January 1, 2010, the percentage of the actual or incremental cost that may be claimed as a credit is as follows:

Beginning January 1, 2010, tax credits are based on specified state-defined vehicle categories as follows:

These credits are capped at $6,000 for the following: AFVs, AFV conversions, HEVs, plug-in hybrid electric vehicles (PHEVs), PHEV conversions, idle-reduction technologies, and power source replacements; there is no cap on natural gas vehicle conversions. Between 2012 and 2016, the cap on PHEV conversions increases to $7500. Individuals who claimed a tax credit in previous years for the purchase of a HEV, Model Year 2004 or newer, may be eligible to claim an additional credit for the conversion of the same vehicle to a PHEV. For credits claimed in tax years 2010 and 2011, Category 3 and Category 4 vehicles that permanently displace vehicles or power sources at least 12 years old are eligible for 1.25 times the credit percentages displayed up to 100%. Additional information is also available from the Governor's Energy Office.

(Reference House Bill 1331, 2009, and Colorado Revised Statutes 39-33-101 to 39-33-106)

Point of Contact

Division of Taxation
Colorado Department of Revenue
Phone (303) 238-7378
http://www.revenue.state.co.us/main/home.asp

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Rebate

The Colorado Department of Revenue offers a rebate for the purchase of an AFV, HEV, 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. The rebate is a percentage of the incremental cost if used toward purchasing a new vehicle, or is a percentage of the conversion cost if used towards the cost of converting a vehicle to operate using an alternative fuel.

For costs incurred between July 1, 2006, and July 1, 2009, the rebate percentages are as follows:

For an AFV purchase or conversion that permanently replaces a motor vehicle or power source that is at least 10 years old, the percentage specified in the table above is doubled, up to a maximum of 100% of the incremental or conversion cost.

For costs incurred between July 1, 2009, and July 1, 2015, the rebate percentages are as follows:

Each qualified entity is limited to $350,000 per state fiscal year in total rebates paid.

(Reference House Bill 1331, 2009, and Colorado Revised Statutes 39-33-101 through 39-33-106)

Point of Contact

John Doty
AFV/Hybrid Taxes and Rebates
Colorado Department of Revenue
Phone (303) 205-8211
jdoty@spike.dor.state.co.us
http://www.revenue.state.co.us/mv_dir/home.asp

Alternative Fuel Infrastructure Tax Credit

For 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 35% of the cost if claimed during the 2009 tax year, and 20% of the cost if claimed during the 2010 or 2011 tax year.

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 Contact

Division of Taxation
Colorado Department of Revenue
Phone (303) 238-7378
http://www.revenue.state.co.us/main/home.asp

Low Emission Vehicle (LEV) Sales Tax Exemption

Vehicles, vehicle power sources, or parts used for converting a vehicle power source, including but not limited to wiring, fuel lines, engine coolant system, fuel storage containers, fuel control system, and other components associated with reducing the emissions characteristics of an engine or motor, certified to federal LEV standards or better are exempt from state sales tax. This exemption applies to vehicles, power sources, or parts for vehicles over 10,000 pounds gross vehicle weight rating. (Reference Colorado Revised Statutes 39-26-719)

State Laws and Regulations

Greenhouse Gas (GHG) Emissions Reductions

The State of Colorado has set goals to reduce GHG emissions by 20% below 2005 values by 2020 and by 80% below 2005 values by 2050. The Colorado Department of Public Health and Environment (CDPHE) is directed to develop regulations to submit to its Air Quality Control Commission that mandate reporting of GHG emissions from all major sources. CDPHE must plan for performing updates to the state's GHG inventory and identify and evaluate the benefits and impediments to measures designed to reduce tailpipe emissions from light-duty vehicles, including the utility and availability of alternative fuel vehicles. Additionally, CDPHE must develop a proposal for reducing net GHG emissions from the state's transportation sector. (Reference Executive Order D004 08 (PDF 24 KB)) Download Adobe Reader

Low-Speed Electric Vehicle (EV) Access to Roadways

A low-speed EV is a self-propelled vehicle using electricity as its primary propulsion method, has at least three wheels in contact with the ground, does not use handlebars to steer, and meets manufacturer requirements as defined in Title 49 of the Code of Federal Regulations, section 565. A low-speed EV may be operated only on a roadway with a speed limit of 35 miles per hour (mph) or less; a low-speed EV may directly cross a roadway with a speed limit greater than 35 mph.

A Class B low-speed EV is defined as a low-speed EV which is capable of traveling at greater than 25 mph but less than 45 mph and may be operated only on a roadway with a speed limit of 45 mph or less; a Class B low-speed EV may directly cross a roadway with a speed limit greater than 45 mph. Neither a low-speed EV nor a Class B low-speed EV may be operated on a limited-access highway. The Colorado Department of Revenue may not register or issue a title for a Class-B low-speed EV until after the U.S. Department of Transportation has adopted a federal motor vehicle safety standard for low-speed EVs that authorizes operation at greater than 25 mph but less than 45 mph.

Low-speed EVs may not be sold or offered for sale unless they comply with state vehicle safety requirements.

(Reference Senate Bill 075, 2009, and Colorado Revised Statutes 12-6-120, 42-1-102, 42-4-109.5, 42-4-109.6)

Clean Energy Development Authority

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

Promulgation of Renewable Fuel Storage Tank Regulations

The Colorado Division of Oil and Public Safety is responsible for enforcing rules concerning the placement of underground and aboveground storage tanks that contain renewable fuel. These rules must be promulgated so that the process of obtaining a permit for an underground storage tank that 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 Requirement

The 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 differential is not greater than $0.10 more per gallon as compared to conventional diesel. Biodiesel is defined as fuel composed of mono-alkyl esters of long chain fatty acids derived from plant or animal matter that meets ASTM specifications and that is produced in Colorado.

Additionally, the Executive Director has adopted a policy to increase the utilization of alternative fuels and establish objectives to increase utilization for each succeeding year. In 2009, 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% greater than the cost of comparable conventional vehicles. Beginning on January 1, 2010, the Executive Director must purchase motor vehicles that operate on compressed natural gas (CNG), subject to the availability of vehicles and adequate fueling infrastructure. If purchases of CNG vehicles are not possible due to the incremental cost being more than 10%, the Executive Director must purchase another type of flexible fuel or hybrid electric vehicle, again subject to availability and incremental costs. The Executive Director may adopt a policy to allow some vehicles to be exempt from this requirement.

(Reference Senate Bill 092, 2009, Executive Order D0012 07 (PDF 31KB) and Colorado Revised Statutes 24-30-1104) Download Adobe Reader

Point of Contact

Art Hale
Colorado State Fleet Manager
Colorado Dept of Personnel and Administration, Division of Central Services, State Fleet Management
Phone (303) 866-5531
Fax (303) 866-5511
art.hale@state.co.us
http://www.colorado.gov/dpa/dcs/

Alternative Fuel Definition

Alternative 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) Registration

Upon 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 Exemption

Gross vehicle weight rating limits for AFVs are 1,000 pounds greater than those for comparable 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 Decal

Fuel 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 from the Colorado Department of Revenue or a decal vendor 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 Definition

The 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 must display gasoline gallon equivalents as the primary display information provided. (Reference Colorado Revised Statutes 8-20-232.5)

Idle Reduction Requirement - Denver

Idling of any vehicle for more than five 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 - Aspen

Idling 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)

Idle Reduction Requirement - Arapahoe County

The Arapahoe County Engine Idling Policy applies to all local government vehicles and requires that drivers do not allow any engine to idle for more than one minute (or 30 seconds for off-road equipment) at any time or for more than five minutes in any one-hour period. This requirement does not apply to vehicles for which idling is necessary, including official traffic control devices or signals, traffic or other required stops, safety or health, engine testing, or at the direction of law enforcement personnel. (Reference Arapahoe County Resolution 090-502, 2009)

Utilities/Private Incentives

Natural Gas Fuel Rate Reduction and Infrastructure Maintenance

Clean 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 Contact

James Orsulak
Market Manager for Alternative Fuels
Clean Energy Fuels
Phone (303) 322-4600
Fax (303) 322-4644
jorsulak@cleanenergyfuels.com

Natural Gas Infrastructure Technical Assistance

Atmos 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 Contact

Walter C. Miller
Energy Services Consultant
Atmos Energy
Phone (817) 303-2903
Fax (817) 303-2929
walter.c.miller@atmosenergy.com

Colorado Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Alicia Archibald Clean Cities Coordinator/Director	Southern Colorado Clean Cities Coalition	Phone:(719) 494-6592 Fax:
Natalia Swalnick Air Quality/Clean Cities Manager	Denver Metro Clean Cities Coalition	Phone:(303) 847-0271 Fax:(303) 377-1102
Robin Newbrey Riesberg Clean Cities Coordinator	Northern Colorado Clean Cities Coalition	Phone:(970) 689-4845 Fax:
Kay Kelly Project Manager	U.S. Department of Energy, Golden Office	Phone:(303) 275-6037 Fax:
Art Hale Colorado State Fleet Manager	Colorado Dept of Personnel and Administration, Division of Central Services, State Fleet Management	Phone:(303) 866-5531 Fax:(303) 866-5511
John Doty AFV/Hybrid Taxes and Rebates	Colorado Department of Revenue	Phone:(303) 205-8211 Fax:
Division of Taxation	Colorado Department of Revenue	Phone:(303) 238-7378 Fax:
Teresa Carrillo Commercial Vehicle Operations Manager	Colorado Department of Transportation	Phone:(303) 757-9716 Fax:(303) 757-9719
Stacey Simms Biofuels and Local Fuels Program Manager	Governor's Biofuels Coalition	Phone:(303) 866-2308 Fax:(303) 866-2930
James Orsulak Market Manager for Alternative Fuels	Clean Energy Fuels	Phone:(303) 322-4600 Fax:(303) 322-4644
Walter C. Miller Energy Services Consultant	Atmos Energy	Phone:(817) 303-2903 Fax:(817) 303-2929
Anna Friend Transportation Operations Specialist	U.S. General Services Administration	Phone:(303) 236-7221 Fax:(303) 236-7590

Connecticut Incentives and Laws

Last Updated August 2009

Connecticut is the home of the Capitol Clean Cities of Connecticut, Inc. (www.ct-ccc.org), New Haven, Inc. (www.nhcleancities.org), Southwestern Area, and Norwich (www.norwichcleancities.org) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

School Bus Retrofit Program

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

Biodiesel Production and Distribution Grants

The 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. The Commissioner of Economic and Community Development must report to the Governor and General Assembly on the performance of the grant program on an annual basis. (Reference Senate Bill 881, 2009, and Connecticut General Statutes 32-324a to 32-324f)

Biofuels Support

The 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. The Commissioner of Economic and Community Development must report to the Governor and General Assembly on the performance of the grant program on an annual basis. (Reference Senate Bill 881, 2009, and Connecticut General Statutes 32-324g)

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Parking - New Haven

The City of New Haven provides free parking on all city streets for HEVs and AFVs registered in New Haven that have a U.S. Environmental Protection Agency city or highway fuel economy rating of 35 miles per gallon or greater. 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 Contact

Department of Traffic and Parking
City of New Haven
Phone 203-946-8075
Fax 203-946-8074
http://www.cityofnewhaven.com/TrafficParking/

State Laws and Regulations

Zero Emission Bus Implementation Plan

As part of a state effort to identify strategies to expand the availability and use of hydrogen fuel and renewable energy sources, the Connecticut Department of Transportation, in consultation with the Connecticut Center for Advanced Technology, Inc., must develop a plan to implement zero emission buses on a state-wide basis. The plan should be completed by December 31, 2010, and include the technological, facility, and financial arrangements necessary to fully implement such a bus fleet, including identifying specific locations for hydrogen fueling stations along state highways and other locations. (Reference House Bill 6649, 2009)

Idle Reduction Weight Exemption

A commercial vehicle equipped with an idle reduction technology may exceed the state's gross vehicle weight limits by up to 400 pounds to compensate for the additional weight of the added idle reduction technology. The additional weight may not exceed the actual weight of the idle reduction unit. (Reference Senate Bill 1081, 2009)

Vehicle Greenhouse Gas Labeling Requirement

The Commissioner of the Connecticut Department of Environmental Protection is required to work with the Commissioner of the Connecticut 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; and 2) educate the public about the labeling program and GHGs. The label should include the vehicle greenhouse gas score and the average greenhouse gas score for vehicles in the same class. (Reference Connecticut General Statutes 22a-201 through 22a-201c)

Alternative Fuel Vehicle (AFV) Procurement Preference

In 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 Requirement

Any 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 Promotion

The 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. The Coalition is made up of representatives from industry, government, academia, labor, and other stakeholders. CCAT prepared and submitted the Plan for Fuel Cell Economic Development, a strategic plan that addresses the status of the hydrogen/fuel cell industry in the state and concludes that hydrogen and fuel cell technology meets the state's pressing energy needs, improves environmental performance, increases economic development, and creates new jobs. CCAT also leads a Partnership Initiative (Initiative) with the U.S. Department of Energy (DOE) to promote the use of hydrogen and fuel cell technology in early market applications. The overall goals of the Initiative are to reduce energy costs, improve energy reliability, and to enhance environmental performance. (Reference Connecticut General Statutes 578-32-9vv and 578-32-9ww)

Point of Contact

Joel M. Rinebold
Director of Energy Initiatives
Connecticut Center for Advanced Technology
Phone (860) 291-8832
Fax (860) 291-8874
jrinebold@ccat.us
http://www.chfcc.org

Alternative Fuel and Fuel-Efficient Vehicle Acquisition and Emissions Reduction Requirements

Any state agency that purchases cars and/or light-duty trucks for their fleet must: 1) have an average U.S. Environmental Protection Agency estimated fuel economy of at least 40 miles per gallon; 2) comply with state fleet vehicle acquisition requirements set forth under the Energy Policy Act of 1992; and 3) obtain the best achievable fuel economy per pound of carbon dioxide emitted for the applicable vehicle classes. Alternative fuel vehicles (AFVs) purchased by the state to comply with these requirements must be capable of operating on an alternative fuel that is available in the state.

In addition, 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 of alternative fuel or advanced vehicles 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.

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.

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

School Bus Emissions Reduction

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)

Idle Reduction Requirement

School 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:

1) The school bus is forced to remain motionless because of traffic conditions or mechanical difficulties over which the operator has no control;

2) It is necessary to operate heating, cooling, safety or auxiliary equipment installed on the school bus;

3) The outdoor temperature is below 20 degrees Fahrenheit;

4) It is necessary to maintain a safe temperature for students with special needs;

5) The school bus is being repaired; or

6) The operator is in the process of receiving or discharging passengers on a public highway or public road.

(Reference Connecticut General Statutes 14-277)

Low Emission Vehicle Standards

The 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 Regulation

In compliance with 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 Credits

Any state mobile emission reduction credits program must allow credits 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 Incentives

Natural Gas Infrastructure and Technical Assistance

Southern Connecticut Gas Company and Connecticut Natural Gas provide technical and advisory assistance for alternative 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 Contact

Michael Smalec
Manager Commercial, Industrial and Key Accounts
Southern Connecticut Gas Company/ Connecticut Natural Gas Corporation
Phone (203) 795-7748 or (860) 727-3327
Fax (203) 795-7619
msmalec@soconngas.com
http://www.soconngas.com/

Connecticut Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Lee Grannis Clean Cities Coordinator	Greater New Haven Clean Cities Coalition, Inc.	Phone:(203) 627-3715 Fax:(203) 393-3433
Craig Peters Clean Cities Coordinator	Capitol Clean Cities of Connecticut, Inc.	Phone:(800) 255-2631 Fax:(860) 646-8861
David Levine Clean Cities Coordinator	Capitol Clean Cities of Connecticut, Inc.	Phone:(860) 653-7744 Fax:(860) 653-0858
Ed Boman Clean Cities Coordinator	Southwestern Area Clean Cities Coalition	Phone:(203) 256-3010 Fax:(203) 256-3080
Pete Polubiatko Clean Cities Coordinator	Norwich Clean Cities Coalition	Phone:(860) 887-6964 Fax:(860) 887-3438
Mike Scarpino Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-4726 Fax:(412) 386-5835
Taxpayer Services Division	Connecticut Department of Revenue	Phone:(860) 297-5962 Fax:
Department of Traffic and Parking	City of New Haven	Phone:203-946-8075 Fax:203-946-8074
Joel M. Rinebold Director of Energy Initiatives	Connecticut Center for Advanced Technology	Phone:(860) 291-8832 Fax:(860) 291-8874
Michael Smalec Manager Commercial, Industrial and Key Accounts	Southern Connecticut Gas Company/ Connecticut Natural Gas Corporation	Phone:(203) 795-7748 or (860) 727-3327 Fax:(203) 795-7619
Richard Guggenheim Assistant Director	Southeastern Connecticut Council of Governments	Phone:(860) 889-2324 Fax:(860) 889-1222
Ariel Garcia Environmental Engineer, Region 1	U.S. Environmental Protection Agency	Phone:(617) 918-1660 Fax:(617) 918-0660
Alison Simcox Environmental Scientist, Region 1	U.S. Environmental Protection Agency	Phone:(617) 918-1684 Fax:(617) 918-0684

District of Columbia Incentives and Laws

Last Updated September 2009

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 Incentives

Reduced Registration Fee for Fuel-Efficient Vehicles

A new motor vehicle with a U.S. Environmental Protection Agency estimated average city fuel economy of at least 40 miles per gallon is eligible for a reduced vehicle registration fee of $36. This reduced rate only applies to the first two years of registration. (Reference District of Columbia Code 50-1501.03)

Alternative Fuel and Fuel-Efficient Vehicle Title Tax Exemption

Qualified alternative fuel vehicles (AFVs) and motor vehicles with a U.S. Environmental Protection Agency estimated average city fuel economy of at least 40 miles per gallon are exempt from the excise tax imposed on an original certificate of title. The District of Columbia Department of Motor Vehicles determines which AFVs qualify for this exemption. (Reference District of Columbia Code 50-2201.03(j))

Alternative Fuel Vehicle Exemption from Driving Restrictions

Clean 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 50-702 and 50-714)

State Laws and Regulations

Low Emission Vehicle (LEV) Standards

Under the Clean Cars Act of 2008, the Mayor of the District of Columbia must establish an 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 District of Columbia Code 50-731)

Alternative Fuel Vehicle Acquisition Requirements

For 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 50-702 to 50-703)

Idle Reduction Requirement

A diesel or gasoline powered motor vehicle is not 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 private passenger vehicles; or 3) to operate heating equipment for five minutes when the ambient temperature is 32 degrees Fahrenheit or below. (Reference District of Columbia Municipal Regulations Title 20, Chapter 9, Section 900.1)

Utilities/Private Incentives

Natural Gas Fueling Infrastructure Assistance

Washington 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 Contact

Jennifer Eugene
Manager, Engineered Sales and CNG Operations
Washington Gas
Phone (703) 750-4844
Fax (703) 750-5844
jennifereugene@washgas.com
http://www.washgas.com

District of Columbia Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
George Nichols Clean Cities Coordinator	Metropolitan Washington Council of Governments	Phone:(202) 962-3355 Fax:(202) 962-3201
Leah Boggs Environmental Planner	Metropolitan Washington Council of Governments	Phone:(202) 962-3355 Fax:(202) 962-3201
Erin Russell-Story Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7334 Fax:
Jennifer Eugene Manager, Engineered Sales and CNG Operations	Washington Gas	Phone:(703) 750-4844 Fax:(703) 750-5844
Michael E. Biggs Fleet Administrator	District of Columbia Department of Public Works	Phone:(202) 576-6799 Fax:(202) 576-7715
Sylvia McMillan Alternative Fuels Specialist	U.S. General Services Administration	Phone:(202) 619-8909 Fax:(202) 619-8929

Delaware Incentives and Laws

Last Updated September 2009

Delaware is the home of the Delaware Clean State Program. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Vehicle-to-Grid Energy Credit

Retail electricity customers with one or more grid-integrated electric vehicle (EV) will be credited in kilowatt-hours for energy discharged to the grid from the EV's battery at the same rate that the customer pays to charge the battery. A grid-integrated EV is defined as a battery-powered motor vehicle that has the ability for two-way power flow between the vehicle and the electric grid as well as communications hardware and software that allow for external control of battery charging and discharging. (Reference Senate Bill 153, 2009)

State Laws and Regulations

Idle Reduction Weight Exemption

A vehicle equipped with an idle reduction technology may exceed the state's gross, axle, tandem, or bridge vehicle weight limits by up to 400 pounds to compensate for the additional weight of the added idle reduction technology. The additional weight may not exceed the actual weight of the idle reduction unit, and vehicle operator must be able to prove the weight of the technology and demonstrate that it is fully functional. (Reference Senate Bill 133, 2009)

Low-Speed Vehicle Access to Roadways

A 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 greater than 35 mph, but may cross a highway at an intersection where the highway has a posted speed limit 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 Exemption

Taxes 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 Requirement

On-road heavy-duty motor vehicles with a gross vehicle weight rating of 8,500 pounds or greater may not idle for more than three consecutive minutes when the vehicle is stationary. Violators are subject to penalties of 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 Incentives

Propane Infrastructure Assistance and Fuel Rate Reduction - Boulden Propane

Boulden Propane provides fueling equipment and training to propane vehicle operators at no cost on a case-by-case basis. Boulden Propane also offers a $0.15 per gallon on-site fuel discount to fleets using propane to operate their vehicles.

Point of Contact

Chris Cafarella
Sales Manager
Boulden Propane
Phone (302) 224-4949
Fax (302) 368-0128
ccafarella@boulden.com
http://boulden.com/propane.html

Point of Contact

Mike Boulden
Vice President
Boulden Propane
Phone (302) 224-4934
Fax (302) 368-0128
mrboulden@boulden.com
http://boulden.com/propane.html

Propane Infrastructure Assistance and Fuel Rate Reduction - SchagrinGAS

SchagrinGAS 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 Contact

Andy Lambert
Vice President of Operations
SchagrinGAS
Phone (302) 658-2000 x3015
Fax (302) 378-2898
alambert@schagringas.com
http://www.schagringas.com

Delaware Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Suzanne Sebastian Delaware Clean State Coordinator	Delaware Energy Office	Phone:(302) 735-3480 Fax:(302) 739-1840
Erin Russell-Story Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7334 Fax:
Andy Lambert Vice President of Operations	SchagrinGAS	Phone:(302) 658-2000 x3015 Fax:(302) 378-2898
Chris Cafarella Sales Manager	Boulden Propane	Phone:(302) 224-4949 Fax:(302) 368-0128
Mike Boulden Vice President	Boulden Propane	Phone:(302) 224-4934 Fax:(302) 368-0128
Susanne Zilberfarb Executive Director	Delaware Soybean Board	Phone:(703) 437-0995 Fax:(703) 437-0996
Sylvia McMillan Alternative Fuels Specialist	U.S. General Services Administration	Phone:(202) 619-8909 Fax:(202) 619-8929

Florida Incentives and Laws

Last Updated June 2009

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 Incentives

Alternative Fuels Production Incentive

The Innovation Incentive Program was created within the Florida 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. Incentive awards are subject to state funding availability. This program has not been funded for 2009; however, federal funding may be available through the Florida Energy and Climate Commission to support selected state energy grant programs. (Reference Florida Statutes 288.1089)

Renewable Energy Grants

The Renewable Energy and Energy-Efficient Technologies Grants Program and Farm to Fuel Grants Program provide matching grants for demonstration, commercialization, research, and development projects related to renewable energy technologies or bioenergy. Incentive awards are subject to state funding availability. These programs have not been funded for 2009; however, federal funding may be available through the Florida Energy and Climate Commission to support selected state energy grant programs. (Reference Florida Statutes 377.804 and 570.957)

Hydrogen and Biofuels Tax Exemption

Through 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 per 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 per 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)

Point of Contact

Kelley Smith
Chief Analyst and Grant Manager
Florida Energy and Climate Commission
Phone (850) 487-4644
Fax (850) 922-9701
kelley.smith@eog.myflorida.com
http://myfloridaclimate.com/climate_quick_links/florida_energy_climate_commission

Hydrogen and Biofuels Investment Tax Credit

An income tax credit 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 per 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 per 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.Credits may be used in tax years through December 31, 2010. If the credit is not fully used in any one tax year because of insufficient tax liability on the part of the corporation, the unused amount may be carried forward through December 31, 2012. Any entity that is allowed the investment tax credit may transfer the credit, in whole or in part, to any taxpayer by written agreement without transferring ownership interest in the qualified property.

(Reference Florida Statutes 220.192)

Point of Contact

Kelley Smith
Chief Analyst and Grant Manager
Florida Energy and Climate Commission
Phone (850) 487-4644
Fax (850) 922-9701
kelley.smith@eog.myflorida.com
http://myfloridaclimate.com/climate_quick_links/florida_energy_climate_commission

High Occupancy Vehicle (HOV) Lane Exemption

Inherently 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 is required to display a decal issued by the Florida Division of Motor Vehicles and be renewed annually. Special fees may apply. 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 Florida Statutes 316.0741)

Point of Contact

Florida Department of Highway Safety and Motor Vehicles
Phone (850) 617-9000
http://www.flhsmv.gov/html/titlinf.html

State Laws and Regulations

Alternative Fuel Economic Development

In order to stimulate local economic development, landowners may apply to amend the local government comprehensive plan to expand existing uses of rural agricultural industrial centers. This includes facilities that prepare biomass materials that can be used for the production of fuel, renewable energy, bioenergy, or alternative fuel. (Reference House Bill 7053, 2009, and Florida Statutes 163.3177)

Low Emission Vehicle (LEV) Standards

The Florida LEV Program requires that all new passenger vehicles sold and registered in the state meet California emission and compliance requirements, as set forth in Title 13 of the California Code of Regulations. Two years after the U.S. Environmental Protection Agency grants a waiver with regard to California's greenhouse gas emissions standards, these requirements will also apply to any subsequent model year.(Reference Florida Administrative Code 62-285.400)

Ethanol Blend Mandate

Beginning 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 vehicles, 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 Florida Statutes 526.201-526.207)

Fuel-Efficient Vehicle Acquisition and Alternative Fuel Use Requirements

When 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 Florida Statutes 286.29)

Biofuels Promotion

The 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 Florida Statutes 287.16)

Provision for Renewable Fuels Investment

In 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 operating in 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 215.47)

Idle Reduction Requirement

Beginning December 15, 2008, idling of any heavy-duty diesel vehicle with a gross vehicle weight rating of 8,500 pounds or more for more than five consecutive 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; bus passenger comfort; 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 Roadways

A 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 and be licensed as required under state guidelines. Use of low-speed vehicles by seasonal delivery personnel is restricted to certain yearly timeframes. (Reference House Bill 405, 2009, Senate Bill 1100, 2009, and Florida Statutes 316.2126, 320.01(42), and 320.0847)

State Energy and Climate Commission

The Florida Energy and Climate Commission (FECC) was created through the state's 2008 comprehensive energy legislation, which aims to reduce greenhouse gas emissions and encourage investment in alternative and renewable energy technologies. The FECC's responsibilities include administering financial incentive programs, completing annual assessments of Florida's Energy and Climate Change Action Plan, and providing recommendations to the Governor and the Legislature on energy and climate change policies. The FECC also works cooperatively with other state entities to develop state energy and climate change policies and programs. (Reference Florida Statutes 377.6015)

Point of Contact

Kelley Smith
Chief Analyst and Grant Manager
Florida Energy and Climate Commission
Phone (850) 487-4644
Fax (850) 922-9701
kelley.smith@eog.myflorida.com
http://myfloridaclimate.com/climate_quick_links/florida_energy_climate_commission

Alternative Fuels Study

The 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. The FECC must also evaluate and recommend that all renewable fuels introduced into state commerce reduce lifecycle GHG emissions by an average percentage. The FECC may also evaluate and recommend the benefits associated with the creation of banking, transfer, and sale of GHG emissions credits among fuel refiners, blenders, and importers. The FECC must submit specific recommendations to the state legislature no later than December 31, 2010. (Reference Florida Statutes 526.207)

Alternative Fuels Tax

A person operating an alternative fuel vehicle (AFV) must purchase an annual decal from the Florida Department of Motor Vehicles in lieu of paying 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 License

An 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 Exemption

EVs 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 Florida Office of Insurance Regulation receives actuarial data that determines the surcharges are justified. (Reference Florida Statutes 627.06535)

Ethanol Production Credit

County 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 Incentives

There are currently no known utility or private incentives offered in Florida

Florida Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Bill Young Clean Cities Coordinator	Florida Space Coast Clean Cities Coalition	Phone:(321) 638-1443 Fax:(321) 638-1010
Larry Allen Clean Cities Coordinator	Florida Gold Coast Clean Cities Coalition	Phone:(954) 985-4416 Fax:(954) 985-4417
Steven Richardson Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(304) 285-4185 Fax:(304) 285-4777
	Florida Department of Highway Safety and Motor Vehicles	Phone:(850) 617-9000 Fax:
Kelley Smith Chief Analyst and Grant Manager	Florida Energy and Climate Commission	Phone:(850) 487-4644 Fax:(850) 922-9701
Dale Aspy Environmental Engineer, Region 4	U.S. Environmental Protection Agency	Phone:(404) 562-9041 Fax:(404) 562-9019

Georgia Incentives and Laws

Last Updated April 2009

Georgia is the home of the Atlanta (www.cleancitiesatlanta.net) and Middle Georgia (www.mga-cleancities.com) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

E85 Fueling Infrastructure Grant Program

The Georgia Environmental Facilities Authority administers the Georgia E85 Retail Infrastructure Grant Program, which funds E85 infrastructure projects. Grants of up to $20,000 or 1/3 of the total planned project cost, whichever is less, are 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 awarded after July 1, 2009. (Reference Georgia Code 50-8-170)

Point of Contact

Jennifer Wilson
Program Manager II
Georgia Environmental Facilities Authority
Phone (404) 584-1077
Fax (404) 584-1069
jwilson@gefa.ga.gov

Alternative Fuels Production Assistance

The Georgia Division of Energy Resources and the Georgia Environmental Facilities Authority (GEFA) provide assistance to companies who are considering locating alternative fuels production facilities in Georgia. Utilizing a broad network of biomass and energy industry representatives, as well as state and local government leaders, GEFA can provide prospective businesses with useful information and connect businesses with the appropriate contacts.

Emissions Reduction Tax Credit

A tax credit is available to individuals who install diesel particulate emission reduction technology equipment at any truck stop, depot, or other facility. The amount of the tax credit is equal to 10% of the total cost of the equipment and installation and is allowed for the taxable year in which the taxpayer first places the equipment in use. The equipment must meet standards adopted by the Georgia Regional Transportation Authority and must provide for heat, air conditioning, light, and communications for the driver's compartment of a commercial motor vehicle parked at a truck stop, depot, or other facility. Additionally, the use of the technology must result in the engine of the vehicle being turned off with a corresponding reduction of particulate emissions from such vehicle's diesel engine. Any credit that is not used in the year in which the equipment is first placed in use may not be carried forward to any future year. (Reference Georgia Code 48-7-40.19)

Alternative Fuel Production Facility Tax Exemption

Tangible 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 48-8-3)

Zero Emission Vehicle (ZEV) Tax Credit

An 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 may be carried over for up to five additional years. (Reference Georgia Code 48-7-40.16)

Point of Contact

James Udi
Environmental Specialist
Georgia Environmental Protection Division
Phone (404) 363-7046
Fax (404) 362-2534
james_udi@dnr.state.ga.us

Alternative Fuel Vehicle (AFV) Tax Credit

An 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 annual income tax liability, but any portion of the credit not used in the year the AFV is purchased or converted may 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 Contact

James Udi
Environmental Specialist
Georgia Environmental Protection Division
Phone (404) 363-7046
Fax (404) 362-2534
james_udi@dnr.state.ga.us

Electric Vehicle (EV) Charger Tax Credit

An 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 Contact

James Udi
Environmental Specialist
Georgia Environmental Protection Division
Phone (404) 363-7046
Fax (404) 362-2534
james_udi@dnr.state.ga.us

Alternative Fuel Vehicle (AFV) High Occupancy Vehicle (HOV) Lane Exemption

AFVs 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 Regulations

Biofuels Blending Regulation

Gasoline suppliers who provide fuel to distributors in the state are required to offer gasoline that is suitable for blending with fuel alcohol. Suppliers are not permitted to prevent or inhibit a gasoline distributor in the state from being a blender or from qualifying for any federal or state tax credit offered to blenders. (Reference Senate Bill 30, 2009, and Georgia Code 10-1-234.1)

Energy Program Development

The Governor's Energy Challenge supports the reduction of energy usage by state and local government agencies by 15% by 2020, as compared to 2007 energy use levels, and encourages businesses within the state to match these commitments. The Challenge also supports economic development through the commercialization of bioenergy based on state-grown feedstocks. These efforts are facilitated by the Georgia Environmental Facilities Authority, the Bioenergy Corridor, and the Georgia E85 Retail Infrastructure Grant Program. (Reference Executive Order 04.24.08.02, 2008)

Alternative Fuel Use and Alternative Fuel Vehicle (AFV) Acquisition Requirements

State 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 (PDF 892 KB), 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 Specifications

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

Provision for Hybrid Electric Vehicle (HEV) High Occupancy Vehicle (HOV) Lane Exemption

The 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, and a final rule is pending. 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) Definition

As 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 Tier II Bin 5 emission levels, and have a fuel economy that is 1.5 times greater than 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 Tax

An 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) Permit

There is a one-time fee of $100, collected by the Georgia Safety Fire Commissioner, for a permit to dispense CNG for vehicle use. (Reference Georgia Code 25-2-4.1)

Idle Reduction Regulation - Atlanta

The City of Atlanta prohibits the idling of a truck or bus for more than 15 minutes on any street or public place. Exceptions apply to emergency vehicles, utility company, construction, maintenance vehicles that require the engines to 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 Incentives

Compressed Natural Gas (CNG) Infrastructure Technical Assistance

Atmos 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 Contact

Walter C. Miller
Energy Services Consultant
Atmos Energy
Phone (817) 303-2903
Fax (817) 303-2929
walter.c.miller@atmosenergy.com

Compressed Natural Gas (CNG) Infrastructure Analysis

AGL 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 Contact

Ian Skelton
Director, Major Accounts
AGL Resources
Phone (404) 584-4626
iskelton@aglresources.com
http://www.aglresources.com/

Georgia Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Don Francis Clean Cities Coordinator	Atlanta Clean Cities Coalition	Phone:(404) 906-0656 Fax:
Charise Stephens Clean Cities Director	Middle Georgia Clean Cities Coalition	Phone:(478) 803-2506 Fax:(478) 751-9168
Steven Richardson Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(304) 285-4185 Fax:(304) 285-4777
Jennifer Wilson Program Manager II	Georgia Environmental Facilities Authority	Phone:(404) 584-1077 Fax:(404) 584-1069
James Udi Environmental Specialist	Georgia Environmental Protection Division	Phone:(404) 363-7046 Fax:(404) 362-2534
Phillip M. Peevy Air Quality & Technical Resource Branch Chief	Georgia Department of Transportation	Phone:(404) 631-1783 Fax:
Walter C. Miller Energy Services Consultant	Atmos Energy	Phone:(817) 303-2903 Fax:(817) 303-2929
Ian Skelton Director, Major Accounts	AGL Resources	Phone:(404) 584-4626 Fax:
Ben Echols Product Manager - Electric Transportation	Georgia Power Company	Phone:(404) 506-6713 Fax:(404) 506-2182
Dale Aspy Environmental Engineer, Region 4	U.S. Environmental Protection Agency	Phone:(404) 562-9041 Fax:(404) 562-9019

Hawaii Incentives and Laws

Last Updated July 2009

Hawaii is the home of the Honolulu Clean Cities Coalition (www.cleancities.us). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Electric Vehicle (EV) and Infrastructure Grants

The Hawaii Transportation Energy Transformation Grant Fund has been established within the Department of Business, Economic Development, and Tourism (Department) to provide grants for the acquisition of EVs, the installation of EV charging infrastructure, and the development of innovative programs or the coordination of activities that diversify transportation energy sources. The Department will review all applications and is required to provide annual statistical information regarding program participation to the Governor and state legislature. (Reference Senate Bill 1202, 2009, and Hawaii Revised Statutes 201)

Business Investment Tax Credit

Through 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 may be carried over for up to four additional years. A qualified high technology business is defined as 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:

Tax credits cannot exceed the amount of the investment or exceed 80% of the taxpayer's income tax liability in the year in which the credit is claimed.

(Reference Senate Bill 199, 2009, and Hawaii Revised Statutes 235-7.3 and 235-110.9)

Point of Contact

Hawaii State Department of Taxation
Phone (800) 222-3229
http://www.state.hi.us/tax/tax.html

Ethanol Production Incentive

An 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 each 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 Regulations

Electric Vehicle (EV) Parking Requirement

All public, private, and government parking facilities with at least one hundred parking spaces must designate at least 1% of the spaces specifically for EVs by December 31, 2011. One of the parking spaces must be located near the building entrance and must be equipped with an EV charging unit that meets recognized standards. Owners of multiple parking lots may designate and install an EV charging unit in fewer parking spaces than required in one parking lot, as long as the total number of aggregate spaces for all parking lots is met. The spaces designated for EVs will continue to increase by 1% for each additional 5,000 registered EVs until the percentage reaches 10%. Penalties apply for non-EVs that park in parking spots designated for EVs. (Reference Senate Bill 1202, 2009, and Hawaii Revised Statutes 226-10 and 291)

Alternative Fuel and Advanced Vehicle Acquisition Requirements

Once the state has met its federal and state vehicle acquisition mandates, state and county agencies, beginning January 1, 2010, must move toward purchasing light-duty vehicles that meet the needs of the agency while reducing petroleum consumption. The priority to be used for purchasing such vehicles is as follows:

1) electric vehicles (EVs) or plug-in hybrid electric vehicles;
2) hydrogen or fuel cell vehicles;
3) other alternative fuel vehicles;
4) hybrid electric vehicles; and
5) vehicles identified as top performers for fuel economy in the U.S. Environmental Protection Agency's annual "Fuel Economy Leaders" report.

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

(Reference Senate Bill 1202, 2009, and Hawaii Revised Statutes 103D-412 and 196-9)

Electric Vehicle (EV) Promotion

In order to achieve Hawaii's transportation efficiency goals and to create jobs, foster economic growth, and reduce greenhouse gas emissions, the Hawaii Senate encourages the promotion of EV use in the state. As a first step, EV charging infrastructure must be developed. Additionally, stakeholders should work together to expedite the use of EVs in Hawaii. (Reference Senate Resolution 82, 2009, and Senate Concurrent Resolution 126, 2009)

Alternative Fuels Promotion

The state of Hawaii has signed a Memorandum of Understanding (MOU) (PDF 108 KB) with the U.S. Department of Energy to collaborate to produce 70% of the state's energy needs from energy efficient and renewable sources by 2030. Download Adobe Reader. This effort is part of the Hawaii Clean Energy Initiative. 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.

Renewable Fuel Standard

At 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 Contact

Hawaii Department of Business, Economic Development, and Tourism
Phone (808) 587-3814
http://www.hawaii.gov/dbedt/ert/new-fuel/

Biofuels Production Land Use Allowance

In 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, animal residues and wastes, and oil crops including palm, canola, soybean, and waste cooking oils. (Reference Hawaii Revised Statutes 205-2 and 205-4.5)

Idle Reduction Regulation

A gasoline- or diesel-powered vehicle may not 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)

Energy Feedstock Program

The Energy Feedstock Program was established within the Hawaii 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)

Biofuels Procurement Preference

State and county agency contracts for the purchase of diesel fuel are to be awarded with preference given to bids for biofuels or blends of biofuel and petroleum fuel. When purchasing fuel for use in diesel engines, the preference price is $0.05 per gallon of B100; for blends containing both biodiesel and petroleum-based diesel, the preference is applied only to the biodiesel portion of the blend. Biodiesel is 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 Support

The state of Hawaii 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 Fund

A 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:

1) Strategic partnerships for the research, development, testing, and deployment; engineering and economic evaluations;
2) Demonstration projects, including infrastructure for the production, storage, and refueling of hydrogen vehicles;
3) Statewide hydrogen economy public education and outreach plan promoting Hawaii's renewable hydrogen resources to potential partners and investors;
4) A plan, for implementation during 2007 to 2010, to deploy hydrogen technologies and infrastructure, including hydrogen production facilities, refueling stations, and vehicles;
5) A plan, for implementation during 2010 to 2020, to transition the island of Hawaii to a hydrogen-fueled economy and to extend the application of the plan throughout the state; and
6) Evaluation of policy recommendations to: encourage the adoption of hydrogen vehicles; continually fund the hydrogen investment capital special fund; and support investment in hydrogen infrastructure.

(Reference Hawaii Revised Statutes 196-10 and 211F-5.7)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV may operate at speeds of up to 25 miles per hour (mph) and is only permitted on roads with speed limits of 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 Rate

A 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 Incentives

There are currently no known utility or private incentives offered in Hawaii

Hawaii Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Robert Primiano Clean Cities Coordinator	Honolulu Clean Cities Coalition	Phone:(808) 768-3500 Fax:(808) 768-3506
Mike Bednarz Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-4862 Fax:(412) 386-4183
Maria Tome Renewable and Transportation Energy Program Manager	Hawaii State Energy Office, Department of Business, Economic Development & Tourism	Phone:(808) 587-3809 Fax:
	Hawaii Department of Business, Economic Development, and Tourism	Phone:(808) 587-3814 Fax:
	Hawaii State Department of Taxation	Phone:(800) 222-3229 Fax:
Collette Craig AFV Contact, Region 9	U.S. General Services Administration	Phone:(928) 524-3975 Fax:(928) 524-2324

Iowa Incentives and Laws

Last Updated July 2009

Iowa is the home of the Iowa Clean Cities Coalition (www.iowacleancities.org). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Ethanol Retailer Tax Credit

The Ethanol Promotion Tax Credit provides a $0.065 tax credit to any retailer meeting the Iowa renewable fuel standard (RFS) schedule each 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 422.11N and 422.33)

E85 Retailer Tax Credit

A tax credit is available to retail stations dispensing E85 for use in motor vehicles in the amount of $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 Credit

Through December 31, 2011, retailers whose diesel sales are at least 50% biodiesel blends, that contain a minimum 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 Grants

The Renewable Fuel Infrastructure Program provides financial assistance to E85 and biodiesel retailers. Cost-share grants are available for up to 70% of the total cost of the project or $50,000, whichever is less, to retailers to upgrade or install new E85 or biodiesel infrastructure. Applicants may also qualify for supplemental incentives for up to 75% of the cost of making the improvement or $30,000, whichever is less, to upgrade or replace an E85 fueling dispenser that has not been approved by an independent testing laboratory once an E85 fueling dispenser has been approved by an independent testing laboratory. The supplemental incentive is available only to applicants who made the improvement no later than 60 days after the date of the publication in the Iowa administrative bulletin of the state fire marshal's order providing that a commercially available fueling dispenser is listed as compatible for use with E85 by an independent testing laboratory.Biodiesel distributors may apply for 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 Iowa Code 15G.202-15G.204)

Point of Contact

Dick Vegors
Program Coordinator, Renewable Fuel Infrastructure Program
Iowa Department of Economic Development, Business Development Division
Phone (515) 725-3138
Fax (515) 725-3010
dick.vegors@iowalifechanging.com
http://www.iowalifechanging.com/business/renewablefuels.aspx

Alternative Fuel Vehicle (AFV) Demonstration Grants

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

Alternative Fuel Loan Program

The 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 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. Funding is currently limited. (Reference Iowa Code 476.46)

Point of Contact

William Haman
Alternate Energy Revolving Loan Program Manager
Iowa Energy Center
Phone (515) 294-8819
Fax (515) 294-9912
iec@energy.iastate.edu
http://www.energy.iastate.edu/AERLP/index.htm

Alternative Fuel Production Loans

The Value-Added Agriculture 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 Contact

Business Finance Program
Program Coordinator
Iowa Dept. of Economic Development, Business Development Division
Phone (515) 725-3133
Fax (515) 725-3010
business@iowalifechanging.com
http://www.iowalifechanging.com

Alternative Fuel Production Tax Credits

The Enterprise Zone Program and the High Quality Jobs Program offer state tax incentives to business projects for the production of biomass or alternative fuels. Depending on the program, incentives may include: an investment tax credit equal to a percentage of the qualifying investment, amortized over five years; a refund of state sales, service, or use taxes paid to contractors or subcontractors during construction; a doubling of the state's refundable research activities credit; 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 Contact

Business Finance Program
Program Coordinator
Iowa Dept. of Economic Development, Business Development Division
Phone (515) 725-3133
Fax (515) 725-3010
business@iowalifechanging.com
http://www.iowalifechanging.com

Alternative Fuel Research and Development Funding

The 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 Iowa Power fund is run by an 18-member board, and a seven-member committee is responsible for reviewing financial assistance applications. (Reference Iowa Code 469.6-469.10)

State Laws and Regulations

Renewable Fuels Promotion and Education

The Iowa Office of Energy Independence (OEI) was directed to develop a renewable fuels marketing plan to promote the state's biofuels industry. OEI developed the plan and presented it to the Iowa General Assembly on March 1, 2009 (PDF 36 KB). Download Adobe Reader. The plan addressed biofuel infrastructure and market barriers as well as current and future OEI programs and efforts. (Reference House File 2689, 2008)

E85 Fuel Exclusivity Contract Regulations

Any 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 Standard

The 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 listed below.

Retailers selling less than 200,000 gallons per year:

Year: % Biofuel Use	Year: % Biofuel Use
2009: 6%	2014: 13%
2010: 6%	2015: 14%
2011: 10%	2016: 15%
2012: 11%	2017: 17%
2013: 12%	2018: 19%

Retailers selling more than 200,000 gallons per year:

Year: % Biofuel Use	Year: % Biofuel Use
2009: 10%	2014: 15%
2010: 11%	2015: 17%
2011: 12%	2016: 19%
2012: 13%	2017: 21%
2013: 14%	2018: 23%

(Reference Iowa Code 422.11N)

Renewable Fuel Labeling Requirement

If biodiesel or ethanol blends are sold from a motor vehicle fuel dispenser, the dispenser must have a decal affixed to it identifying the type of fuel blend. 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 Senate File 478, 2009, and Iowa Code 214A.16)

Regional Biofuels Promotion Plan

Iowa 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. Download Adobe Reader. Specifically, the Platform sets the following goals:

• Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
• Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
• Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
• By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.

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.

State Fleet Biofuels Use and Fuel Efficiency

As 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)

Biofuel Decal and Use Requirement

State fleet gasoline and diesel vehicles must operate using ethanol blended gasoline and biodiesel fuel, except for emergency circumstances. Vehicles must be affixed with a brightly visible sticker that notifies the public that the motor vehicle uses ethanol blended gasoline or biodiesel. However, the sticker is not required for unmarked vehicles used for law enforcement or security purposes. (Reference Iowa Code 8A.362)

Biodiesel Fuel Use

Biodiesel fuel for use in Iowa Department of Transportation (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 of 1992 (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)

E85 Fuel Use Requirement

Executive Order 3 directed that by 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 was created and details 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 provides regularly updated lists of E85 fueling stations to state employees. (Reference Executive Order 3, 2007)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

A 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 Registration

When 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 Fee

The 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 Roadways

Low-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 Incentives

There are currently no known utility or private incentives offered in Iowa

Iowa Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Brian Crowe Clean Cities Coordinator	Iowa Clean Cities Coalition	Phone:(515) 725-2066 Fax:(515) 281-4225
Brad Beauchamp Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7322 Fax:
William Haman Alternate Energy Revolving Loan Program Manager	Iowa Energy Center	Phone:(515) 294-8819 Fax:(515) 294-9912
Business Finance Program Program Coordinator	Iowa Dept. of Economic Development, Business Development Division	Phone:(515) 725-3133 Fax:(515) 725-3010
Dick Vegors Program Coordinator, Renewable Fuel Infrastructure Program	Iowa Department of Economic Development, Business Development Division	Phone:(515) 725-3138 Fax:(515) 725-3010
Lucy Norton Managing Director	Iowa Renewable Fuels Association	Phone:(515) 252-6249 Fax:(515) 225-0781
Lachala Kemp Environmental Engineer, Region 7	U.S. Environmental Protection Agency	Phone:(913) 551-7214 Fax:(913) 551-7844
Robert Smith Fleet Acquisition Coordinator	U.S. General Services Administration, Regional Fleet Management Office	Phone:(314) 263-3024 Fax:(314) 263-3009

Idaho Incentives and Laws

Last Updated April 2009

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 Incentives

Biofuel Fueling Infrastructure Tax Credit

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 taxpayer's income tax liability. 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. This incentive expires December 31, 2011. (Reference Idaho Statutes 63-3029M)

Exemptions for Biodiesel Production for Personal Use

A biodiesel producer that generates up to 5,000 gallons of biodiesel fuel in a calendar year for personal consumption is exempt from the $0.01 per gallon petroleum transfer fee and the requirement to obtain an Idaho motor fuel distributor's license. (Reference House Bill 9, 2009, and Idaho Statutes 63-2421 and 63-2427A)

State Laws and Regulations

State Agency Petroleum Reduction Plan

All 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 Fund

The 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 Roadways

An 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 any highway with a speed limit greater than 35 miles per hour, or across any highway with a speed limit greater than 45 miles per hour. (Reference House Bill 241, 2009, and Idaho Statutes 49-115, 49-123, 49-402, and 49-663)

Liquefied Petroleum Gas (LPG) Board and Dealer Requirements

The 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. Each LPG fueling facility must also be licensed. Beginning July 1, 2009, a fee of up to $500 is required for each license application, original license, and annual license renewal. (Reference House Bill 90, 2009, and Idaho Statutes 54-5301 to 54-5317)

Biodiesel Definitions

Biodiesel 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 Definition

Ethanol 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 Tax

The 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 by a registered motor vehicle while idling. Idling means a period of time greater than 15 minutes when the motor vehicle is stationary with the engine operating. (Reference Idaho Statutes 63-2401, 63-2402, 63-2423, and 63-2424)

Utilities/Private Incentives

Natural Gas Technical Assistance

Questar 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 Contact

Gordon Larsen
Natural Gas Vehicle Supervisor
Questar Gas
Phone (801) 324-5987
Fax (801) 324-5845
gordon.larsen@questar.com

Point of Contact

Jim Grambihler
Natural Gas Vehicle Operations
Questar Gas
Phone (801) 324-5119
Fax (801) 324-5485
jim.grambihler@questar.com

Idaho Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Philip Cameron Clean Cities Coordinator	Yellowstone-Teton Clean Energy Coalition	Phone:(307) 413-1971 Fax:
Beth Baird Clean Cities Coordinator	Treasure Valley Clean Cities Coalition	Phone:(208) 384-3984 Fax:(208) 433-5650
Kay Kelly Project Manager	U.S. Department of Energy, Golden Office	Phone:(303) 275-6037 Fax:
John Crockett Bioenergy Manager	Idaho Energy Division	Phone:(208) 287-4894 Fax:(208) 287-6700
Jackie McCloughan Fuel Systems Manager	Idaho Transportation Department	Phone:(208) 334-8094 Fax:(208) 334-8595
Gordon Larsen Natural Gas Vehicle Supervisor	Questar Gas	Phone:(801) 324-5987 Fax:(801) 324-5845
Jim Grambihler Natural Gas Vehicle Operations	Questar Gas	Phone:(801) 324-5119 Fax:(801) 324-5485
Julie Shain Fleet Manager	U.S. General Services Administration	Phone:(208) 321-9150 Fax:(208) 321-9518

Illinois Incentives and Laws

Last 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 Incentives

Biofuels Production Facility Grants

The 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 Contact

Norm Marek
Illinois Department of Commerce and Economic Opportunity
Illinois State Energy Office
Phone (217) 785-5082
Fax (217) 785-2618
norm.marek@illinois.gov
http://www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/

Clean Diesel Retrofit and Idle Reduction Grants

The 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 Contact

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

E85 Fueling Infrastructure Grants

The 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 Contact

Norm Marek
Illinois Department of Commerce and Economic Opportunity
Illinois State Energy Office
Phone (217) 785-5082
Fax (217) 785-2618
norm.marek@illinois.gov
http://www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/

Clean School Bus Program

The 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 Contact

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

Alternative Fuel Vehicle (AFV) and Alternative Fuel Rebates

The Illinois Alternate Fuels Rebate Program (Program) provides a rebate for 80% of the incremental cost of purchasing an AFV (up to $4,000), 80% of the cost of 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 Contact

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

Alternative Fuel Vehicle (AFV) Incentives

The 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 Contact

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

Biofuels Research and Development

The 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 Contact

Norm Marek
Illinois Department of Commerce and Economic Opportunity
Illinois State Energy Office
Phone (217) 785-5082
Fax (217) 785-2618
norm.marek@illinois.gov
http://www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/

State Laws and Regulations

Biodiesel Production Tax

Beginning 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 35 Illinois Compiled Statutes 505/2, 505/2a, and 505/2d)

Biofuels Labeling Requirement

Fueling 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 815 Illinois Compiled Statutes 370/4.1)

Biofuels Education and Promotion

The 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 Plan

The 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 20 Illinois Compiled Statutes 3954/1)

State Energy Independence Plan

The 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 Initiative

The 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 (PDF 29 KB)) Download Adobe Reader

Idle Reduction Requirement

A 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 Requirement

The 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 Roadways

Neighborhood 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 Use

The 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 (PDF 113 KB)) Download Adobe Reader

Advanced Vehicle Acquisition and Biodiesel Fuel Use Requirement

All 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 Exemption

Sales 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 Exemption

Sales 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) Registry

In 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 Exemption

An 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 Procurement

In 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 Requirements

State 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 Plant

The 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:

• Review the annual operating plans and budget of the NCERC Pilot Plant;
• Advise on research and development priorities and projects to be carried out at the NCERC Pilot Plant;
• Advise on policies and procedures regarding the management and operation of the NCERC Pilot Plant (including contracts, project selection, and personnel issues);
• Develop by-laws;
• Submit a final report to the Governor and General Assembly outlining the progress, accomplishments and a financial report for the year; and
• Establish and operate the NCERC at Southern Illinois University at Edwardsville as a State Biorefining Center of Excellence with a focus on areas including the following: performing collaborative research; offering training and educational services; advancing the state biofuels industry; pursuing funding sources; and serving as an independent source for testing and validation.

(Reference 110 Illinois Compiled Statutes 520/6.5 to 520/6.6)

Alternative Fuel Vehicle Labeling Requirement

Vehicles 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 - Chicago

Chicago 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 Incentives

Natural Gas Infrastructure Technical Assistance

Atmos 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 Contact

Walter C. Miller
Energy Services Consultant
Atmos Energy
Phone (817) 303-2903
Fax (817) 303-2929
walter.c.miller@atmosenergy.com

Illinois Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Samantha Bingham Clean Cities Coordinator	Chicago Area Clean Cities Coalition	Phone:(312) 744-8096 Fax:(312) 744-5272
Brad Beauchamp Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7322 Fax:
Norm Marek Illinois Department of Commerce and Economic Opportunity	Illinois State Energy Office	Phone:(217) 785-5082 Fax:(217) 785-2618
Darwin Burkhart Manager, Clean Air Programs	Illinois Environmental Protection Agency and Chicago Area Clean Cities Coalition	Phone:(217) 524-5008 Fax:(217) 557-2559
Walter C. Miller Energy Services Consultant	Atmos Energy	Phone:(817) 303-2903 Fax:(817) 303-2929
Scott Benson Transportation Specialist, Great Lakes Region	U.S. General Services Administration	Phone:(312) 886-8682 Fax:(312) 353-0989

Indiana Incentives and Laws

Last Updated May 2009

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 Incentives

Alternative Fueling Station Grant Program

Effective July 1, 2009, the Alternative Fueling Station Grant Program, administered by the Indiana Office of Energy Development (OED), will offer grants of up to $20,000 for installing new alternative fueling stations or converting existing fueling stations to dispense alternative fuels. Eligible alternative fuels include liquefied petroleum gas and compressed natural gas. Applications for the grant program must be reviewed and approved by OED, and the amount of grants awarded for all fiscal years may not exceed $1 million. (Reference House Bill 1554, 2009, and Indiana Code 4-4-32.2)

Alternative Fuel Vehicle (AFV) Grant Program

Effective July 1, 2009, the Alternative Fuel Vehicle Grant Program, administered by the Indiana Office of Energy Development (OED), will offer grants to counties, cities, towns, townships, or school corporations to purchase Original Equipment Manufactured (OEM) AFVs and for AFV conversions, A recipient may be awarded $2,000 for each OEM AFV purchased, and up to $2,000 for each AFV conversion. Applications for the grant program must be reviewed and approved by OED, and the amount of grants awarded for all fiscal years may not exceed $1 million. (Reference House Bill 1554, 2009, and Indiana Code 4-4-32.3)

Alternative Fuel Vehicle (AFV) Manufacturer Tax Credit

The 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, methanol, 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 Program

Through 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. Eligible applicants include businesses, cities, towns, counties, townships, school corporations, colleges, or universities. 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 House Bill 1193, 2009, and Indiana Code 15-11-11)

Point of Contact

Amy Eizinger-Ott
Regional Development Program Manager
Indiana State Department of Agriculture
Phone (317) 234-5263
Fax (317) 232-1362
aeizinger-ott@isda.in.gov

E85 Storage Tank Cleaning Grants

Licensed 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 Contact

Mark Walters
Biofuels Director
Indiana Corn Marketing Council
Phone (317) 347-3620
Fax (317) 347-3626
mwalters@indianacorn.org
http://www.incorn.org/docs/incga/TankCleaningGrantForm.pdf

Ethanol Production Tax Credit

An ethanol producer located in Indiana is entitled to a credit of $0.125 per gallon of ethanol produced, including cellulosic ethanol. Applications for this credit 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:

Tax Credit	Annual Production
$2 million	More than 40 million and less than 60 million gallons of grain ethanol
$3 million	At least 60 million gallons of grain ethanol
$20 million	At least 20 million gallons of cellulosic ethanol

(Reference Indiana Code 6-3.1-28)

E85 Fuel Retailer Tax Credit

An 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. Reimbursement is contingent upon available funding from the Retail Merchant E85 Deduction Reimbursement fund, which is maintained by the Indiana State Budget Agency. Starting July 1, 2010, the Indiana Corn Marketing Council will transfer $500,000 to the Retail Merchant E85 Reimbursement fund and will ensure that $500,000 remains in the fund for each year thereafter; the fund may not exceed $500,000. (Reference House Bill 1398, 2009, and Indiana Code 6-2.5-7-5, 15-15-12-30.5, and 15-15-12-32.5)

E85 Fuel Use Incentive

A 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 and 36-1-2-13)

Vehicle Research and Development Grants

The 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 Contact

Cathy Tripodi
Director, Energy
Indiana Economic Development Corporation
Phone (317) 233-5391
Fax (317) 232-4146
ctripodi@iedc.in.gov
http://www.21fund.org/

Biodiesel Price Preference

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

Biodiesel Production Tax Credit

A 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 Credit

A 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 Credit

Through 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 Regulations

Clean Vehicle Acquisition Requirements

Beginning January 1, 2010, a vehicle that is purchased or leased by a state entity must be a clean energy vehicle, unless the Indiana Department of Administration determines that the purchase or lease of the vehicle is inappropriate for its intended use, or the purchase or lease would cost 10% more than a comparable non-clean energy vehicle. A clean energy vehicle is defined as a vehicle that operates on one or more of the following energy sources: a rechargeable energy storage system; hydrogen; compressed natural gas (CNG); or liquefied natural gas (LNG). The Department of Administration will adopt rules or provide guidelines for the preferential purchase or lease of clean energy vehicles manufactured in Indiana or containing parts manufactured in Indiana. (Reference House Bill 1554, 2009, and Indiana Code 5-22-5-8.5)

Support for Use of Higher Ethanol Blends

The Indiana House supports education related to the use of higher ethanol blends in non-flexible fuel vehicles, citing studies that show environmental and economic benefits of using higher ethanol blends. The House also encourages the U.S. Environmental Protection Agency to authorize the use of higher ethanol blends in non-flexible fuel vehicles. (Reference House Resolution 77, 2009)

Regional Biofuels Promotion Plan

Indiana 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. Download Adobe Reader. Specifically, the Platform sets the following goals:

• Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
• Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
• Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
• By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.

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.

Bio-based Products Purchase Requirement

A state governmental body or educational institution must purchase bio-based products whenever possible, provided that bio-based products are available and the purchase is economically feasible. Bio-based products are defined as commercial or industrial products other than food or feed produced from plant or animal sources, including renewable agricultural and forestry materials. (Reference Indiana Code 5-22-5-9)

Immunity for Misuse of E85

E85 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 Education

The 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 Reporting

A 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 Definition

E85 is a fuel blend nominally consisting of 85% ethanol and 15% gasoline by volume that meets ASTM specification D5798. (Reference Indiana Code 6-6-1.1-103)

E85 Use

As part of the Indiana Greening the Government Initiative, all fleet vehicles based in Indianapolis that are capable of using E85 are directed to operate their vehicles using E85 fuel 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 Exemption

Biodiesel 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 Definition

Biodiesel is defined as a renewable, biodegradable fuel derived from agricultural plant oils or animal fats that meet ASTM specification D6751. Blended biodiesel is a blend of biodiesel 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 Use Requirement

Governmental entities and state educational institutions are required to fuel diesel vehicles with biodiesel blends containing at least 2% biodiesel, fuel gasoline vehicles with ethanol blends of at least 10%, and fuel flexible fuel vehicles with E85 whenever possible. Governmental entities and state education institutions are also required to fuel gasoline vehicles with mid-level ethanol blends between 20% and 73%, unless the use of such blends is prohibited under federal regulations or has not been approved by the vehicle manufacturer. (Reference House Bill 1398, 2009, and Indiana Code 5-22-5-8 and 21-31-9-3)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled electric vehicle capable of achieving a maximum speed of 35 miles per hour (mph) that meets the standards in Title 49 of the Code of Federal Regulations, sections 571.500. 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 Designation

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

Alternative Fuel Vehicle (AFV) Decals

An 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 the gross vehicle weight rating. 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 Contact

Fuel Tax Section
Indiana Department of Revenue
Phone (317) 615-2630
http://www.in.gov/dor

Natural Gas Vehicle (NGV) Safety Requirement

NGVs 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 Incentives

Natural Gas Vehicle (NGV) Rebate

Citizens Gas & Coke Utility offers rebates for qualified compressed natural gas (CNG) vehicle conversions or for the purchase of original equipment manufactured dedicated or bi-fuel CNG vehicles. Used NGVs may also qualify. Rebates are available to fleet operators on a case-by-case basis. Each project is examined on the merits of providing the rebate, based on hours of operation or miles driven, per vehicle, per year.

Point of Contact

Lane Dunagin
Industrial Sales Consultant
Citizens Energy Group
Phone (317) 694-2776
ldunagin@citizensenergygroup.com
http://www.citizensgas.com

Indiana Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Kellie Walsh Executive Director	Central Indiana Clean Cities Alliance, Inc.	Phone:(317) 834-3754 or (317) 985-4380 Fax:(317) 834-3754
Carl Lisek Clean Cities Coordinator	South Shore Clean Cities, Inc.	Phone:(219) 365-4289 Fax:(219) 365-5465
Brad Beauchamp Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7322 Fax:
Amy Eizinger-Ott Regional Development Program Manager	Indiana State Department of Agriculture	Phone:(317) 234-5263 Fax:(317) 232-1362
Cathy Tripodi Director, Energy	Indiana Economic Development Corporation	Phone:(317) 233-5391 Fax:(317) 232-4146
Mark Walters Biofuels Director	Indiana Corn Marketing Council	Phone:(317) 347-3620 Fax:(317) 347-3626
Fuel Tax Section	Indiana Department of Revenue	Phone:(317) 615-2630 Fax:
Lane Dunagin Industrial Sales Consultant	Citizens Energy Group	Phone:(317) 694-2776 Fax:
Shawn Seals Senior Environmental Planner	Indiana Department of Environmental Management, Office of Air Quality	Phone:(317) 233-0425 Fax:(317) 233-5967
Scott Benson Transportation Specialist, Great Lakes Region	U.S. General Services Administration	Phone:(312) 886-8682 Fax:(312) 353-0989

Kansas Incentives and Laws

Last Updated June 2009

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 Incentives

Biofuel Equipment Tax Credits

A Storage and Blending Equipment Credit is available for tax years 2007 through 2011 for investment in the purchase, construction, or installation of equipment used for storing and blending petroleum-based fuel with biodiesel, ethanol, or other biofuel. The tax credit is equal to 10% of the taxpayer's qualified investment for the first $10,000,000 invested and 5% of the investment in excess of $10,000,000. The credit may be taken in 10 equal annual installments beginning with the year in which the equipment is placed into service. Any excess credits may be carried over for deduction from the taxpayer's income tax liability in subsequent years for a maximum of 14 years after the first installment. In order to be eligible for the tax credit, the taxpayer must continue to operate the equipment for at least 10 years.

Biofuel blenders may also be eligible for an income tax deduction based on the accelerated depreciation for storage and blending equipment. This deduction extends over a 10-year period and is equal to 55% of the depreciated value for the first year and 5% of the depreciated value for each of the nine subsequent years that the equipment remains in production.

(Reference Kansas Statutes 79-232 and 79-32,251 - 79-32,255)

Cellulosic Ethanol Production Incentive

The 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 any industrial process plant that produces at least 500,000 gallons of cellulosic alcohol fuel, liquid or gaseous fuel, or other source of 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 a minimum of 10%. (Reference Kansas Statutes 74-8949b, 79-32,233, and 79-229)

Renewable Fuel Retailer Incentive

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 incremental basis from 10% for renewable fuel and 2% for biodiesel in 2009 to 25% for each fuel type beginning on January 1, 2024. This incentive is currently on hold until further notice. (Reference Kansas Statutes 79-34, 171 through 79-34, 176)

Point of Contact

Cindy Mongold
Public Service Administrator II
Kansas Department of Revenue
Phone (785) 296-7048
Fax (785) 296-4993
cindy_mongold@kdor.state.ks.us
http://www.ksrevenue.org

Biodiesel Production Incentive

A 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. (Reference Kansas Statutes 79-34,158).

Alternative Fuel Vehicle (AFV) Tax Credit

The 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.

GVWR	Credit
Less than 10,000 pounds (lbs.)	Up to $2,400
10,000 to 26,000 lbs.	Up to $4,000
Over 26,000 lbs.	Up to $40,000

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.

(Reference Kansas Statutes 79-32,201)

Point of Contact

Ray Hammarlund
Kansas Energy Office
Phone (785) 271-3179
Fax (785) 271-3268
r.hammarlund@kcc.ks.gov
http://www.ksrevenue.org/taxcredits-altfuel.htm

Alternative Fueling Infrastructure Tax Credit

The state offers an income tax credit for alternative fueling stations placed into service after January 1, 2009. The tax credit, worth up to 40% of the total costs, 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 Contact

Ray Hammarlund
Kansas Energy Office
Phone (785) 271-3179
Fax (785) 271-3268
r.hammarlund@kcc.ks.gov
http://www.ksrevenue.org/taxcredits-altfuel.htm

Ethanol Production Incentive

The 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 ethanol 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. A producer may not collect the incentive for more than seven years. (Reference Kansas Statutes 79-34,163)

Point of Contact

Patricia Platt
Public Service Administrator II
Kansas Department of Revenue
Phone (785) 291-3670
Fax (785) 296-2703
patricia_platt@kdor.state.ks.us

State Laws and Regulations

Fuel Economy Requirement for State Vehicles

The average fuel economy for state-owned motor vehicles purchased during Fiscal Year (FY) 2011 must be at least 10% higher than the average fuel economy of state-owned motor vehicles purchased during FY 2008. (Reference House Bill 295, 2009)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

When 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 as compared to a 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 Plan

Kansas 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. Download Adobe Reader Specifically, the Platform sets the following goals:

• Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
• Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
• Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
• By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.

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.

Idle Reduction Weight Exemption

Any 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, 8-1909, and 8-1917).

Point of Contact

Tom Whitaker
Executive Director
Kansas Motor Carriers Association
Phone (785) 267-1641
Fax (785) 266 -6551
tomw@kmca.org
http://www.kmca.org

E85 Tax Rate Reduction and Definition

The minimum motor vehicle fuel tax rate on E85 is $0.17 per gallon, compared to the conventional motor fuel tax rate of $0.24 per gallon, until July 1, 2020. Beginning July 1, 2020, the minimum tax rate on E85 will be $0.11 per gallon, compared to the conventional motor fuel tax rate of $0.18 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, 79-3490, and 79-34,141)

Alternative Fuels Tax

Any 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, compared to the conventional motor fuel tax rate of $0.18 per gallon. (Reference Kansas Statutes 79-34,141; 79-3490; and 79-3491a - 79-3492e)

Biofuels Use Requirement

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

Biodiesel and Renewable Fuel Definitions

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

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may only travel on roads with a posted speed limit of up to 40 miles per hour (mph) and must be appropriately licensed. A low-speed vehicle is defined as any four-wheeled electric vehicle whose top speed is greater than 20 mph but not greater than 25 mph and is manufactured in compliance federal standards for low-speed vehicles as referenced in Title 49, Code of Federal Regulations, part 571.500. (Reference Kansas Statutes 8-15,101; 8-1488; 8-1701; and 8-2118)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

Beginning 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 Incentives

There are currently no known utility or private incentives offered in Kansas

Kansas Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Kelly Gilbert Clean Cities Coordinator	Kansas City Regional Clean Cities Coalition	Phone:(816) 561-1625 Fax:(816) 531-4846
Kay Kelly Project Manager	U.S. Department of Energy, Golden Office	Phone:(303) 275-6037 Fax:
Ray Hammarlund	Kansas Energy Office	Phone:(785) 271-3179 Fax:(785) 271-3268
Patricia Platt Public Service Administrator II	Kansas Department of Revenue	Phone:(785) 291-3670 Fax:(785) 296-2703
Cindy Mongold Public Service Administrator II	Kansas Department of Revenue	Phone:(785) 296-7048 Fax:(785) 296-4993
Tom Whitaker Executive Director	Kansas Motor Carriers Association	Phone:(785) 267-1641 Fax:(785) 266 -6551
Robert Smith Fleet Acquisition Coordinator	U.S. General Services Administration, Regional Fleet Management Office	Phone:(314) 263-3024 Fax:(314) 263-3009
Lachala Kemp Environmental Engineer, Region 7	U.S. Environmental Protection Agency	Phone:(913) 551-7214 Fax:(913) 551-7844

Kentucky Incentives and Laws

Last Updated April 2009

Kentucky is the home of the Commonwealth Clean Cities Partnership (www.kentuckycleanfuels.org). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Biodiesel Production and Blending Tax Credit

Qualified biodiesel producers or blenders are eligible for an income tax credit of $1.00 per gallon of pure biodiesel (B100) 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 $10 million. 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 Credit

Qualified ethanol producers are eligible for an income tax credit of $1.00 per gallon of corn- or cellulosic-based ethanol that meets ASTM standard D4806. The total credit amount for all corn and cellulosic ethanol producers is $5 million for each taxable year. 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 Incentives

The Kentucky Economic Development and Finance Authority (KEDFA) provides tax incentives to construct, retrofit, or upgrade an alternative fuel production or gasification facility that uses coal or biomass as a feedstock. 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 Contact

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

Alternative Fuel Research, Development, and Promotion

The Kentucky New Energy Ventures (KNEV) program, established by the Kentucky Alternative Fuel and Renewable Energy Fund Program, 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 commonwealth-wide, 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 commonwealth-wide awareness of the economic development opportunities offered by Kentucky's alternative fuel and renewable energy industry. (Reference Kentucky Revised Statutes 154.20-410 and 154.20-415)

Alternative Fuel and Vehicle Promotion

The Kentucky Department for Energy Development and Independence (Department) encourages the responsible use of transportation fuels by supporting academic research, public education, and collaborative partnerships involving alternative fuels and alternative fuel vehicles (AFVs). The Department has implemented a number of projects to promote the use of AFVs and establish alternative fuel infrastructure in Kentucky.

Point of Contact

Frank Moore
Kentucky Department for Energy Development and Independence
Phone (502) 564-6743 x342
Fax (502) 564-7406
frank.moore@ky.gov
http://www.energy.ky.gov/dre3/efficiency/transportation.htm

Point of Contact

Jesse Mayes
Transportation Engineering Specialist for Air Quality
Kentucky Transportation Cabinet
Phone (502) 564-7183
Fax (502) 564-2865
jesse.mayes@ky.gov

State Laws and Regulations

Vehicle Acquisition Priorities and Alternative Fuel Use Requirement

The Finance and Administration Cabinet (Cabinet) is required to develop a strategy to replace at least 50% of commonwealth 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 commonwealth motor vehicle fleets. The Cabinet must report targeted vehicle and fuel usage amounts annually. (Reference Kentucky Revised Statutes 45A.625)

State Energy Plan Alternative Fuel Requirements

The Governor's Office of Energy Policy 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 commonwealth energy plan, Intelligent Energy Choices for Kentucky's Future, was developed in 2008 and proposes seven strategies to support a renewable and efficiency portfolio standard, an alternative transportation fuel standard, and fuel production goals. (Reference Kentucky Revised Statutes 152.720 and Intelligent Energy Choices for Kentucky's Future (PDF 2.39 MB)) Download Adobe Reader

Biofuels Use

The 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 commonwealth vehicles. (PDF 108 KB)) Download Adobe Reader

Natural Gas Deregulation

The 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 Exemption

LPG 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 Kentucky Natural Resources and Environmental Protection Cabinet. (Reference Kentucky Revised Statutes 234.321)

Low-Speed Electric Vehicle Access to Roadways

The Secretary of the Kentucky Transportation Cabinet was directed to develop and implement standards authorizing the use of low-speed electric vehicles on Kentucky's highways. As a result, an alternative electric vehicle, including one with three wheels and an enclosed compartment or cab, is considered a motor vehicle and must be titled and registered as such. An alternative electric vehicle must meet safety standards specified in Title 49 of the Code of Federal Regulations, section 571.500. An alternative electric vehicle may operate on roads with posted speed limits of up to 45 mph, provided the vehicle has not been modified to increase its speed above the original standard manufactured limit. Golf cars and all-terrain vehicles are not considered alternative electric vehicles. (Reference House Bill 21, 2009, Executive Order 2008-824 (PDF 146KB), 2008, Kentucky Transportation Cabinet Administrative Order, and Kentucky Revised Statutes 186.400 to 186.640) Download Adobe Reader

Utilities/Private Incentives

Natural Gas Infrastructure Technical Assistance

Atmos 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 Contact

Walter C. Miller
Energy Services Consultant
Atmos Energy
Phone (817) 303-2903
Fax (817) 303-2929
walter.c.miller@atmosenergy.com

Kentucky Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Melissa Howell Clean Cities Coordinator	Commonwealth Clean Cities Partnership	Phone:(502) 452-9152 Fax:(502) 452-9152
Steven Richardson Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(304) 285-4185 Fax:(304) 285-4777
Frank Moore	Kentucky Department for Energy Development and Independence	Phone:(502) 564-6743 x342 Fax:(502) 564-7406
Jesse Mayes Transportation Engineering Specialist for Air Quality	Kentucky Transportation Cabinet	Phone:(502) 564-7183 Fax:(502) 564-2865
Don Goodin	Kentucky Economic Development Finance Authority	Phone:(502) 564-4554 Fax:(502) 564-7697
John T. (Tom) Underwood Executive Director	Kentucky Propane Education and Research Council	Phone:(502) 223-5322 Fax:(502) 223-4937
Lynn Soporowski Transportation Engineer Branch Manager	Kentucky Transportation Cabinet	Phone:(502) 564-7183 Fax:(502) 564-2865
Walter C. Miller Energy Services Consultant	Atmos Energy	Phone:(817) 303-2903 Fax:(817) 303-2929
Dale Aspy Environmental Engineer, Region 4	U.S. Environmental Protection Agency	Phone:(404) 562-9041 Fax:(404) 562-9019

Louisiana Incentives and Laws

Last Updated September 2009

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 Incentives

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit

The state offers an income tax credit worth 50% of the cost of converting a vehicle to operate on an alternative fuel, 50% of the incremental cost of purchasing an original equipment manufactured AFV, and 50% of the cost of constructing an alternative fueling station. Only vehicles registered in Louisiana may receive the tax credit. A taxpayer may instead take a tax credit worth 10% of the cost of the motor vehicle or up to $3,000, whichever is less. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas, biofuel, biodiesel, methanol, ethanol, electricity, and any other fuels that meet or exceed federal clean air standards. (Reference House Bill 110, 2009, and Louisiana Revised Statutes 47:6035)

Green Jobs Tax Credit

The state offers a corporate or income tax credit for qualified capital infrastructure projects in Louisiana that are directly related to industries including but not limited to the energy efficient and advanced drive train vehicle industry and the biofuels industry. The tax credit is worth up to $1 million per state-certified green project, calculated on the base investment costs of the project, for up to a total of $5 million per year. Other restrictions may apply. (Reference House Bill 733, 2009, and Louisiana Revised Statutes 47:6035)

Advanced Ethanol Fuel Blend Research Grants

Demonstration 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 biofuel 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 Louisiana Revised Statutes 3:3763)

Advanced Ethanol Fuel Blend Rate Reduction

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 Louisiana Revised Statutes 39:364)

Biodiesel Equipment and Fuel Tax Exemption

Certain 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 fuel that meets ASTM specification D6751. These provisions are effective through June 30, 2012. (Reference Louisiana Revised Statutes 47:301)

State Laws and Regulations

Advanced Ethanol Industry Initiative

In order to develop an advanced biofuels industry in Louisiana, the following "field-to-pump" requirements must be met:

1. Development of an ethanol feedstock other than corn that is;
   • Derived solely from Louisiana harvested crops.
   • Capable of an annual yield of at least 600 gallons of ethanol per acre.
   • Requiring no more than 50% of the water required to grow corn.
   • Tolerant to high temperatures and waterlogging.
   • Resistant to drought and saline-alkaline soils.
   • Capable of being grown in marginal soils, ranging from heavy clay to light sand.
   • Requiring no more than one-third of the nitrogen required to grow corn.
   • Requiring no more than one-half of the energy necessary to convert corn into ethanol.
2. Development of a small advanced biofuel manufacturing facility network, which reduces the feedstock supply risk, does not burden local water supplies, and provides for a more broad-based economic development.
3. Expansion of advanced biofuel supply and demand beyond the 10% blend market by blending fuel grade anhydrous ethanol with gasoline at the gas station pump. Variable blending pumps, directly installed and operated at the local gas stations by a qualified small advanced biofuel manufacturing facility, must offer the consumer a less expensive substitute for unleaded gasoline in the form of E10, E20, E30, and E85.

(Reference Louisiana Revised Statutes 3:3761)

Advanced Ethanol Blend Pilot Program

The 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 Louisiana Revised Statutes 3:3761-3:3762)

Alternative Fuel Vehicle (AFV) Tax

All licensed on-road vehicles fueled by compressed 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 (GVWR) of less than 10,000 pounds (lbs.), based on a $0.16 per gallon special fuels tax rate, or a variable rate of 80% of the current special fuels tax rate. The owners or operators of a vehicle with a GVWR of more than 10,000 lbs. are required to pay 80% of the special fuels tax rate in effect, but not less than 80% of $150 per vehicle, based on a $0.16 per gallon special fuels tax rate multiplied by a specified miles per gallon value for each vehicle type. The owner of any school bus may either pay an annual flat rate in the amount of 50% of $150 per vehicle or a variable rate of 50% of the current special fuels tax rate. (Reference Louisiana Revised Statutes 47:802.3)

Point of Contact

Taxpayer Services Division
Louisiana Department of Revenue
Phone (225) 219-0067

Alternative Fuel and Advanced Vehicle Acquisition Requirements

The 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 Louisiana Revised Statutes 39:364)

Renewable Fuel Standard

Within six months following the point at which cumulative monthly production of denatured ethanol produced in Louisiana equals or exceeds a minimum annual production volume of 50 million gallons, 2% of the total gasoline sold by volume in the state must be denatured ethanol. Ethanol is defined an ethyl alcohol that has a purity of at least 99%, exclusive of added denaturants, meets U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and ASTM specification D4806, and is produced from domestic agricultural or biomass products. This requirement will not be effective until six months after the average wholesale price of a gallon of Louisiana-manufactured ethanol, less any federal tax incentives or credits, is equal to or below the average wholesale price of a gallon of regular unleaded gasoline in Louisiana for a period of not less than 60 days, as determined by the Louisiana Biofuel Panel. The Legislature urges the Louisiana 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. Biodiesel is defined as a fuel comprised of mono-alkyl esters of long chain fatty acids derived from domestic, renewable resources and meeting the requirements of ASTM specification D6751, 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. Within six months following the point at which cumulative monthly production of an alternate renewable fuel produced in the state equals or exceeds a minimum annual production volume of 20 million gallons, 2% of the total motor fuel sold by volume in the state must be the alternate renewable fuel produced from domestically grown feedstock. This requirement may not exceed 2% of the total motor fuel sold by volume by owners or operators of fuel distribution terminals.

Blenders and retailers will have six months to meet the new minimum ethanol, biodiesel, or alternate renewable fuel content requirements, unless the Department of Weights and Measures determines 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 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.

To further encourage the production of biodiesel from renewable resources, Louisiana restaurants are encouraged to provide their waste fats, oils, and grease to biodiesel production facilities and store their waste fats, oils, and grease in a manner that facilitates the use of these products in a biodiesel production facility.

(Reference House Bill 624, 2009, and Louisiana Revised Statutes 3:4674, 3:4674.1, and 3:3712)

Biofuels Feedstock Requirements

Renewable fuel production plants operating in Louisiana and deriving ethanol from the distillation of corn must use corn crops harvested in Louisiana to meet at least 20% of the facility's total feedstock requirement. Renewable fuel plants operating in Louisiana and deriving biodiesel from soybeans and other crops must use soybean crops harvested in Louisiana to meet at least 2.5% of the facility's total feedstock requirement. In succeeding years, the minimum percentage of Louisiana-harvested corn and soybeans used to produce renewable fuel in Louisiana facilities must be at least the same percentage of corn and soybeans used nationally to produce renewable fuel as reported by the U.S. Department of Agriculture's Office of the Chief Economist. (Reference Louisiana Revised Statutes 3:3712)

Fuel Efficient Vehicle Acquisition Requirement

Any alternative fuel vehicle 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 Louisiana Revised Statutes 39:1646)

Low-Speed Vehicle Access to Roadways

Low-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)

Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) Regulatory Authority

The 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 Fuel

The 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 Incentives

There are currently no known utility or private incentives offered in Louisiana

Louisiana Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Lauren Stuart Clean Cities Coordinator	Greater Baton Rouge Clean Cities Coalition	Phone:(225) 578-9253 Fax:
Rebecca Otte Clean Cities Coordinator	Southeast Louisiana Clean Fuel Partnership	Phone:(504) 483-8513 Fax:(504) 483-8526
Wes Wyche Environmental Affairs Manager/Clean Cities Coordinator	City of Shreveport/Greater Shreveport Clean Cities Coalition (Not Yet Designated)	Phone:(318) 673-6072 Fax:(318) 673-7663
Neil Kirschner Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-5793 Fax:
J. Bryan Crouch Engineer, Alternative Fuels and Refinery	Louisiana Department of Natural Resources, Technology Assessment Division	Phone:(225) 342-2122 Fax:(225) 242-3605
Taxpayer Services Division	Louisiana Department of Revenue	Phone:(225) 219-0067 Fax:
Walter C. Miller Energy Services Consultant	Atmos Energy	Phone:(817) 303-2903 Fax:(817) 303-2929
Anna Friend Transportation Operations Specialist	U.S. General Services Administration	Phone:(303) 236-7221 Fax:(303) 236-7590
Sandra Rennie Mobile Source Team Leader, Region 6	U.S. Environmental Protection Agency	Phone:(214) 665-7367 Fax:(214) 665-7263

Massachusetts Incentives and Laws

Last Updated September 2008

Massachusetts is the home of the Massachusetts Clean Cities Coalition. Coordinator contact information is listed in the Points of Contact section.

State Incentives

There are currently no known State incentives offered in Massachusetts

State Laws and Regulations

Biodiesel Blend Mandate

All diesel motor vehicle fuel and all other liquid fuel used to operate motor vehicle diesel engines must contain at least 2% renewable diesel fuel by July 1, 2010; 3% renewable diesel fuel by July 1, 2011; 4% renewable diesel fuel by July 1, 2012; and 5% renewable diesel fuel by July 1, 2013. For these purposes, eligible renewable diesel fuel includes diesel fuel that is derived predominantly from renewable biomass and yields at least a 50% reduction in lifecycle greenhouse gas (GHG) emissions relative to the average lifecycle GHG emissions for petroleum-based diesel fuel sold in 2005. The Massachusetts Department of Energy Resources 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 Requirements

When purchasing new motor vehicles, the Commonwealth of Massachusetts must purchase HEVs or AFVs to the maximum extent feasible and consistent with the ability of such vehicles to perform their intended functions. HEVs and AFVs must be acquired at a rate of at least 5% annually for all new motor vehicle purchases so that not less than 50% of the motor vehicles owned and operated by the Commonwealth will be HEVs or AFVs by the year 2018. (Reference Massachusetts Session Law 169, 2008)

Low Emission Vehicle (LEV) Standards

The Massachusetts LEV Program requires all new passenger vehicles sold and registered in Massachusetts to meet California emission and compliance requirements, as set forth in Title 13 of the California Code of Regulations. These regulations apply to any Model Year (MY) 1995 and subsequent MY passenger cars and light-duty trucks; MY 2003 and subsequent MY medium-duty vehicles; MY 2005 and subsequent MY heavy-duty vehicles and engines. Beginning with MY 2007 vehicles, manufacturers must comply with the Zero Emission Vehicle sales requirements. Beginning with MY 2009 vehicles, manufacturers must also comply with greenhouse gas emissions requirements. (Reference Massachusetts Department of Environmental Protection Regulations and Standards 310 CMR 7.40)

Cellulosic Biofuel Tax Exemption

For 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 Study

A 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 Study

A 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 Plan

In 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 Requirement

Beginning 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 Requirement

A 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 Requirement

State 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 Fuel

The 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 Incentives

Natural Gas Vehicle (NGV) and Compressed Natural Gas (CNG) Infrastructure Technical Assistance

National 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 Contact

Mike Manning
Clean Cities Co-Coordinator
Massachusetts Clean Cities Coalition and AVSG LP
Phone (617) 242-8755
Fax (617) 242-0814
mm@avsglp.com

Massachusetts Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Stephen Russell Clean Cities Co-Coordinator	Massachusetts Clean Cities Coalition	Phone:(617) 626-7325 Fax:(617) 727-0093
Mike Manning Clean Cities Co-Coordinator	Massachusetts Clean Cities Coalition and AVSG LP	Phone:(617) 242-8755 Fax:(617) 242-0814
Mike Scarpino Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-4726 Fax:(412) 386-5835
Ariel Garcia Environmental Engineer, Region 1	U.S. Environmental Protection Agency	Phone:(617) 918-1660 Fax:(617) 918-0660
Alison Simcox Environmental Scientist, Region 1	U.S. Environmental Protection Agency	Phone:(617) 918-1684 Fax:(617) 918-0684

Maryland Incentives and Laws

Last Updated May 2009

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 Incentives

Cellulosic Ethanol Research and Development Tax Credit

An 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 per 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. This tax credit does not apply to qualified expenses incurred after December 31, 2016. (Reference Maryland Statutes 10-205j, 10-306f, and 10-726)

Hybrid Electric Vehicle (HEV) and Electric Vehicle (EV) Tax Credit

A 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. Additional tax credits of $125 to $500 are available for HEVs equipped with regenerative braking systems that meet certain requirements, depending on the amount of energy created from breaking. 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 Incentive

Qualified ethanol and biodiesel producers are eligible for ethanol and biodiesel production incentives in the form of per gallon credits. To be eligible for the incentive, 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 credits for ethanol or biodiesel produced after December 31, 2017.

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

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

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

Hybrid Electric Vehicle (HEV) Exemption from Vehicle Testing Requirements

Qualified 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 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 Regulations

Low Emission Vehicle (LEV) Standards

Maryland has adopted the California motor vehicle emission standards in Title 13 of the California Code of Regulations, beginning with Model Year 2011. The Maryland 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. In addition, the Maryland Clean Car and Energy Policy Task Force was established and authorized through December 31, 2010, 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 Use

At least 50% of state vehicles must use a minimum biodiesel blend of B5. This requirement does not apply to any state vehicles for which the use of biodiesel will void the manufacturer's warranty for that vehicle. (Reference Maryland Statutes, State Finance and Procurement Code 14-408)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

Maryland 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 (PDF 49 KB)) Download Adobe Reader

Idle Reduction Requirement

A 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 Roadways

A 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 Incentives

There are currently no known utility or private incentives offered in Maryland

Maryland Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Chris Rice Maryland Clean Cities Coordinator	Maryland Energy Administration	Phone:(410) 260-7207 Fax:(410) 974-2250
George Nichols Washington Metropolitan Clean Cities Coordinator	Metropolitan Washington Council of Governments	Phone:(202) 962-3355 Fax:(202) 962-3201
Howard Simons Manager-Air Quality Programs	Maryland Department of Transportation	Phone:(410) 865-1296 Fax:(410) 850-9263
Erin Russell-Story Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7334 Fax:
Tim Shepherd Division Chief, Mobile Sources Control Program	Maryland Department of the Environment, Air and Radiation Management Administration	Phone:(410) 537-3236 Fax:(410) 537-4435
Susanne Zilberfarb Biodiesel Project Leader	Maryland Soybean Board	Phone:(703) 437-0995 Fax:
Lynne Hoot Executive Director	Maryland Grain Producers Association	Phone:(410) 956-5771 Fax:(410) 956-0161
Sylvia McMillan Alternative Fuel Coordinator	U.S. General Services Administration	Phone:(202) 619-8909 Fax:(202) 619-8929

Maine Incentives and Laws

Last Updated September 2009

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 Incentives

Biofuels Production Tax Credit

A 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 the Maine Department of Environmental Protection that certifies the biofuels produced during the taxable year are eligible for the tax credit. For biofuels blended with petroleum or other non-biofuels, the credit is allowed only on the biofuels portion of that blend. Any portion of unused credits may be carried over for up to 10 taxable years. (Reference Maine Revised Statutes Title 36, Section 5219-X)

State Laws and Regulations

Policy Recommendations for Biofuels Promotion

The Maine Office of Energy Independence and Security issued a report, Liquid Biofuels Policy for Maine: A Report to the State Legislature (PDF 1.8 MB), which recommended specific policy options aimed toward the promotion of biofuels. Download Adobe Reader. The recommendations include the following: a) combine existing, unfunded, alternative fuels funds into one Clean Fuel Fund; b) study sustainability measures for biofuels; c) improve implementation of existing policies related to alternative fuels; d) support research and development; e) exempt alternative 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 Promotion

The Energy Resources Council works in coordination with the Maine Departments of Environmental Protection and Transportation,to evaluate the costs and benefits of state government actions to stimulate an increase in the production of alternative and renewable fuels and the use of these fuels in state vehicles. (Reference Maine Revised Statutes Title 5, Section 3327; Title 35-A, Section 3211-A; and Executive Order 11, 2004)

Idle Reduction Requirement

A 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; 4) an emergency vehicle being used in the course of official business; and 5) when the ambient outside air temperature is less than zero degrees Fahrenheit. When the outside ambient air temperature is between zero and 32 degrees Fahrenheit, vehicles may idle for up to 15 minutes during a 60-minute period. 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 Maine Revised Statutes Title 38, Section 585-L)

Idle Reduction Weight Exemption

Any vehicle equipped with idle reduction technology may exceed the state's gross vehicle and axle weight limits by up to 400 pounds to compensate for the additional weight of the added idle reduction technology. (Reference Legislative Document 37, 2009, and Maine Revised Statutes Title 29-A, Section 2360)

Low Emission Vehicle (LEV) Standards

Maine has adopted the California motor vehicle emissions standards specified in Title 13 of the California Code of Regulations. 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 greenhouse gas emissions standard and the zero emissions vehicle sales requirement. (Reference Department of Environmental Protection, Chapter 127)

Alternative Fuel Tax Rates

Blended fuels that contain at least 10% gasoline or diesel are now taxed at the full tax rates of gasoline ($0.295 per gallon) or diesel ($0.307 per gallon). Alternative fuel tax rates are as follows:

For more information see the Maine Revenue Services Web site. (Reference Legislative Document 333, 2009, and Maine Revised Statutes Title 36, Section 3203)

Biodiesel Fuel Tax Exemption

Biodiesel fuel that is produced by an individual and used by that same individual or a member of that individual's immediate family is exempt from the state fuel excise tax. (Reference Legislative Document 1352, 2009, and Maine Revised Statutes Title 36, Section 3204-A)

Low-Speed Vehicle Access to Roadways

Low-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 Requirements

The Maine 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 Improvement

The Maine 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 Loans

The 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 support production, distribution and consumption of clean fuels and biofuels. 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 Legislative Document 389, 2009, and Maine Revised Statutes Title 10, Sections 1023-K and 1026-A)

Biofuels Production Incentive

The 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 Incentives

An insurer may credit or refund any portion of the premium charged for an insurance policy on a clean fuel vehicle in order to encourage its policyholders to use clean fuel vehicles, 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 Incentives

There are currently no known utility or private incentives offered in Maine

Maine Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Steve Linnell Clean Cities Coordinator	Maine Clean Communities	Phone:(207) 774-9891 Fax:(207) 774-7149
Mike Scarpino Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-4726 Fax:(412) 386-5835
Melissa Morrill Bureau of Air Quality, Environmental Specialist	Maine Department of Environmental Protection	Phone:(207) 287-6102 Fax:(207) 287-7641
John Brautigam Director	Efficiency Maine, Public Utilities Commission	Phone:(207) 287-1594 Fax:(207) 287- 1039
Ariel Garcia Environmental Engineer, Region 1	U.S. Environmental Protection Agency	Phone:(617) 918-1660 Fax:(617) 918-0660
Alison Simcox Environmental Scientist, Region 1	U.S. Environmental Protection Agency	Phone:(617) 918-1684 Fax:(617) 918-0684

Michigan Incentives and Laws

Last Updated November 2008

Michigan is the home of the Ann Arbor (www.aacleancities.org), Detroit Area (www.nextenergy.org/services/collaborativeprograms/wg_cleancities.aspx), and Greater Lansing Area (www.michigancleancities.org) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fueling Infrastructure Tax Credit

The Michigan Department of Energy, Labor and Economic Growth (DELEG) offers an income tax credit for station owners who convert existing fuel delivery systems or install new systems to provide E85 or biodiesel blends of at least 5% to the public. The tax credit is for 30% of the eligible costs of an installed or converted fuel delivery system with a maximum tax credit of $20,000 per applicant. To qualify for the tax credit, a station owner must apply for a certificate of eligibility from the DELEG. Each installation will be inspected to ensure all work has been completed and E85 and/or biodiesel are being dispensed to the public. Any federal and state grants and incentives received by the station owner will be subtracted from the cost of the work before computing the amount of the tax credit. However, federal tax credits do not need to be subtracted when determining the tax credit amount. The tax credits are available for work completed between January 1, 2009, and December 31, 2012. (Reference Michigan Compiled Laws 208.1460)

Point of Contact

Tim Shireman
Department of Labor and Economic Growth
Michigan Energy Office
Phone (517) 241-6281
Fax (517) 241-6229
shiremant@michigan.gov
http://www.michigan.gov/dleg

Biofuel Signage Rebate Program

The Michigan Energy Office provides rebates to enable retail service stations located near interstate highways to advertise the availability of E85 or biodiesel blends (B20) on highway exit signs. Retail stations offering these fuel types and participating in the Michigan Department of Transportation Logo Sign Program are eligible for rebates of up to $1,500 to help cover up to 50% of the costs to design, install, and pay the first year's annual fee for signage. For more information, see the Biofuel Signage Rebate Program Application Form (PDF 70 KB). Download Adobe Reader

E85 Fueling Infrastructure Grant Program

The E85 Infrastructure Conversion Project provides funding to retail and public fleet fueling locations to purchase and install materials and equipment compatible with E85, to clean tanks, and to purchase dispensing equipment and on-site signage advertising E85. Funding of up to $5,000 per facility, not exceeding 50% of E85 conversion costs, is available through the Clean Energy Coalition. For more information, see the Clean Energy Coalition Web site.

Hybrid Electric Vehicle Research and Development Tax Credit

For 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 Michigan 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 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 $2 million per tax year. (Reference Michigan Compiled Laws 208.1101-208.1601)

Alternative Fuel and Vehicle Research, Development, and Manufacturing Tax Credits

Effective January 1, 2008, taxpayers certified by the Michigan NextEnergy Authority (MNEA) may claim a nonrefundable credit for tax liability attributable to research, development, or manufacturing of qualified alternative fuel vehicles (AFVs) and renewable fuel. For the purpose of this incentive AFVs include fuel cell, electric, hybrid electric, natural gas, E85, liquefied petroleum gas, and hydrogen vehicles. Renewable fuels include biodiesel blends of at least 20%. Additionally, businesses located within the designated Alternative Energy Zone that are engaged in qualified activities may claim a credit for the taxpayer's qualified payroll amount. (Reference Michigan Compiled Laws 207.821-207.827 and 208.1429)

Alternative Fueling Infrastructure Grants

The Michigan Strategic Fund (MSF) has created a 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 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 the ASTM D6751 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 D5798 specifications. (Reference Michigan Compiled Laws 125.2078)

Reduced Biofuels Tax

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

Alternative Fuel Development Property Tax Exemption

A 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 Michigan Compiled Laws 207.552 and 207.803)

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

Dedicated 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 Regulations

Hybrid Transit Vehicle Promotion

In an effort to promote best practices for public transportation services in Michigan, the Michigan Department of Transportation is directed to coordinate with the Michigan Economic Development Corporation to promote the transition of transit bus fleets to hybrid vehicles with improved fuel economy. (Reference House Bill 5808, 2008)

Advanced Vehicle Acquisition and Alternative Fuel Use Requirement

The 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, the state's alternative fuel vehicle fleet is 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 Plan

Michigan 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. Download Adobe Reader. Specifically, the Platform sets the following goals:

• Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
• Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
• Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
• By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.

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.

Renewable Fuels Commission

Renewable Fuels CommissionThe Renewable Fuels Commission was 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 (AFVs). 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 KB) Download Adobe Reader. The Commission must issue follow-up reports at least annually through January 1, 2010. (Reference Michigan Compiled Laws 290.581-290.586)

Biofuels Blender Requirements

Blenders 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 must also obtain a blender's license. (Reference Michigan Compiled Laws 207.1008)

Biodiesel Retail and Storage Requirements

All biodiesel and biodiesel blends sold in the state must meet state fuel quality requirements. A refiner, distributor, or retailer cannot transfer or dispense biodiesel or biodiesel blends unless the fuel is visibly free of undissolved water, sediments, and other suspended matter. Additionally, a biodiesel retailer 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 operating retail location. (Reference Michigan Compiled Laws 290.642-290.647)

Hydrogen Production and Retail Requirements

All hydrogen fuel produced and sold in the state must meet state fuel 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 operating retail outlet. (Reference Michigan Compiled Laws 290.642-290.647)

Utilities/Private Incentives

Alternative Energy Technology Promotion

NextEnergy 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 Contact

Pamela Hurtt
Clean Cities Coordinator
Detroit Area Clean Cities Coalition/NextEnergy
Phone (313) 833-0100 x270
Fax (313) 833-0101
pamelah@nextenergy.org
http://www.nextenergy.org/services/collaborativeprograms/wg_cleancities.aspx

Michigan Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Sean Reed Clean Cities Coordinator/Executive Director	Ann Arbor Clean Cities Coalition/Clean Energy Coalition	Phone:(888) 818-0987 Fax:(734) 418-1681
Pamela Hurtt Clean Cities Coordinator	Detroit Area Clean Cities Coalition/NextEnergy	Phone:(313) 833-0100 x270 Fax:(313) 833-0101
Maggie Striz Calnin Program Coordinator	Greater Lansing Area Clean Cities Coalition	Phone:(517) 925-8649 x3 Fax:(517) 659-5999
Lisa Locke Coordinator	West Michigan Clean Cities Coalition (Not Yet Designated)	Phone:(616) 301-1059 Fax:(616) 301-1135
Brad Beauchamp Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7322 Fax:
Tim Shireman Department of Labor and Economic Growth	Michigan Energy Office	Phone:(517) 241-6281 Fax:(517) 241-6229
Pete Porciello Air Quality Specialist	Michigan Department of Transportation	Phone:(517) 335-2603 Fax:(517) 373-9255
Robert Rusch Environmental Quality Specialist, Strategic Development Unit	Michigan Department of Environmental Quality	Phone:(517) 373-7041 Fax:(517) 241-7499
Teresa Walker Senior Environmental Quality Analyst, Emissions Trading Programs	Michigan Department of Environmental Quality	Phone:(517) 335-2247 Fax:(517) 241-7499
Jody Pollok-Newsom Executive Director	Corn Marketing Program of Michigan & Michigan Corn Growers Association	Phone:(517) 668-2676 Fax:(517) 668-2670
Scott Benson Transportation Specialist, Great Lakes Region	U.S. General Services Administration	Phone:(312) 886-8682 Fax:(312) 886-0989

Minnesota Incentives and Laws

Last Updated July 2009

Minnesota is the home of the Twin Cities Clean Cities Coalition (http://www.cleanairchoice.org/cities/). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Biodiesel Fueling Infrastructure Grants

Funding is currently available to assist retailers with the installation and conversion of equipment to dispense biodiesel blends between 10% and 20%. Funding is based on costs associated with installation of new equipment or upgrading current equipment. Project estimates must be provided with the application form. Funding is limited and not guaranteed.

Point of Contact

Emily Nelson
Coordinator
American Lung Association of Minnesota
Phone (651) 227-8014
Fax (651) 281-0242
emily.nelson@lungmn.org
http://www.cleanairchoice.org/cities

E85 Fueling Infrastructure Grants

Funding is currently available to assist public fuel retailers with the installation or conversion of equipment to dispense E85 and intermediate ethanol blends. A station may be eligible for 75% of project costs, up to a maximum of $15,000, if program guidelines are met. Applications are required, and funding is limited and not guaranteed.

Point of Contact

Emily Nelson
Coordinator
American Lung Association of Minnesota
Phone (651) 227-8014
Fax (651) 281-0242
emily.nelson@lungmn.org
http://www.cleanairchoice.org/cities

Renewable Energy and Technology Grants

The University of Minnesota's Initiative for Renewable Energy and the Environment offers grants to promote statewide economic development; sustainable, healthy and diverse ecosystems; and national energy security through development of bio-based and other renewable resources and processes. Eligible projects include those focused on environmentally sound production of energy, including hydrogen, from a renewable energy source such as biomass and agricultural crops; development of energy conservation and efficient energy utilization technologies; energy storage technologies; and analysis of policy options to facilitate adoption of technologies that use or produce low-carbon renewable energy. (Reference Senate File 550, 2009, and Minnesota Statutes 116C.779)

Ethanol Production Incentive

Through June 30, 2010, an ethanol production incentive of $0.20 per gallon of ethanol produced may be earned by 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 Contact

Ralph Groschen
Senior Marketing Specialist
Minnesota Department of Agriculture
Phone (651) 201-6223
Fax (651) 201-6114
ralph.groschen@state.mn.us

Idle Reduction Technology Loan Program

The 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 Contact

Mike Nelson
Small Business Ombudsman
Minnesota Pollution Control Agency
Phone (651) 575-2122
michael.nelson@pca.state.mn.us
http://www.pca.state.mn.us/programs/sbomb_loan.html

State Laws and Regulations

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Transportation Analysis

The Commissioner of the Minnesota Department of Transportation is required to conduct a study, in collaboration with other state agencies and stakeholders, to evaluate the current and long-range needs of the state's transportation system, and investigate possible strategies to meet these needs. The study must include the following: 1) identification of options for maintenance and improvement of the state's transportation system, specifically regarding the effects of potential increases in vehicle fuel economy, availability of alternative modes of transportation, and extreme fuel price volatility on future transportation revenues; 2) identification of financial options with particular consideration of environmental impacts such as air and water quality, and greenhouse gas emissions; and 3) evaluation of the impact of the use of EVs and PHEVs on the current funding mechanisms for the state's roadways and an analysis of methods to mitigate the impact. The results of the study are due to the legislature by November 1, 2009. (Reference House File 1250, 2009, and Minnesota Laws 2008, Chapter 287, Article 1, Section 118)

Clean Energy Collaborative

The Governor's Clean Energy Technology Collaborative (Collaborative) was created for experts to discuss issues that impact the development of new clean energy technologies that utilize Minnesota expertise, Minnesota resources, and benefit Minnesota by reducing greenhouse gas (GHG) emissions. The Collaborative provides the Governor with advice and recommendations on matters relating to advances in technology and research in order to achieve Minnesota's long-term clean energy goals, including reducing GHG emissions by 80% by 2050 and generating 25% of Minnesota energy from renewable energy resources by the year 2025. (Reference Executive Order 08-04, 2008)

Biodiesel Blend Mandate

Diesel fuel sold or offered for sale in the state for use in internal combustion engines must contain at least 5% biodiesel (B5) fuel by volume. Beginning May 1, 2012, diesel fuel must contain at least 10% biodiesel, and must contain 20% biodiesel by May 1, 2015. Diesel fuel sold during the months of April, May, June, July, August, September, and October are required to contain more than B5 and revert back to B5 for the following five consecutive months. However, the commissioners of agriculture and commerce and 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. Additional exceptions may apply. (Reference Minnesota Statutes 239.77)

Idle Reduction Weight Exemption

In order to promote the reduction of fuel use and emissions, the maximum gross vehicle weight and axle weight limits for any motor vehicle equipped with idle reduction or emissions-reduction technologies must be increased by the weight of the equipment, not to exceed 400 pounds. The vehicle operator must provide documentation that the vehicle was installed with qualified equipment. (Reference Senate File 1876, 2009, and Minnesota Statutes 169.824)

Regional Biofuels Promotion Plan

Minnesota 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. Download Adobe Reader. Specifically, the Platform sets the following goals:

• Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
• Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
• Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
• By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.

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.

Biodiesel Definition

Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and meets ASTM specification D6751-08 and is produced by a person or organization certified by the BQ-9000 National Biodiesel Accreditation Program. A biodiesel blend is a blend of diesel fuel and biodiesel fuel between 6% and 20% for on-road and off-road diesel vehicle use. Biodiesel blends must comply with ASTM specification D7467-08. Biodiesel produced from palm oil is not considered biodiesel fuel, unless the palm oil is waste oil and grease collected from within the U.S. or Canada. (Reference Senate File 543, 2009 and Minnesota Statutes 239.761, 239.77 and 296A.01)

Ethanol Blend Mandate

All gasoline sold or offered for sale in Minnesota must contain at least 10% ethanol by volume (E10), or the maximum percent of denatured ethanol by volume authorized in a waiver granted by the U.S. Environmental Protection Agency. Gasoline-ethanol blends must comply with ASTM specification D4814-08b. Effective August 30, 2013, all gasoline sold or offered for sale in the state must contain at least 20% ethanol by volume (E20), unless, by December 31, 2010, ethanol has already replaced 20% of all motor vehicle fuel sold in the state or federal approval has not been granted for the use of E20. Certain exemptions apply. (Reference Senate File 743, 2009, House File 1122, 2009, and Minnesota Statutes 239.761 and 239.791)

Alternative Fuel Use Requirement

State 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 Plan

The 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.

The DOC is authorized to accept federal funds, expend funds, and participate in projects to design, develop, and construct multi-fuel hydrogen fueling stations that eventually link urban centers along key trade corridors across the jurisdictions of Manitoba, the Dakotas, Minnesota, Iowa, and Wisconsin. These energy stations should accommodate a wide variety of vehicle technologies and fueling platforms, including hybrid, flexible fuel, and fuel cell vehicles. They may offer, but not be limited to, gasoline, diesel, ethanol (E85), biodiesel, and hydrogen, and may simultaneously test the integration of on-site combined heat and power technologies with the existing energy infrastructure.

The state's public research and higher education institutions are encouraged to collaborate to establish a regional energy research and education partnership for the production of renewable energy and products, including hydrogen, fuel cells, and related technologies. The Board of Trustees of the Minnesota State Colleges and Universities is encouraged to develop a fuel cell curriculum pilot program.

(Reference Minnesota Statutes 216B.811 to 216B.815)

Electric Vehicle (EV) Initiatives

All 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 EVs, plug-in hybrid electric vehicles (PHEVs), and neighborhood electric vehicles (NEVs) as soon as they become commercially available. The vehicles must first meet the state's performance specifications and be priced no more than 10% above the price for comparable gasoline-powered vehicles.

An EV is defined as a motor vehicle that is able to be powered by an electric motor drawing current from rechargeable storage batteries, fuel cells, or other portable sources of electrical current, and meets or exceeds applicable requirements in Title 49 of the Code of Federal Regulations, section 571, and future regulations.

A PHEV is defined as an EV containing an internal combustion engine that also allows power to be delivered to the drive wheels by a battery-powered electric motor. When connected to the electrical grid via an electrical outlet the vehicle must be able to recharge its battery. The vehicle must have the ability to travel at least 20 miles, powered substantially by electricity.

(Reference House File 1250, 2009, Minnesota Laws) 2006, Chapter 245, and Minnesota Statutes 169.011

Neighborhood Electric Vehicle (NEV) Access to Roadways

A NEV is defined as an electric vehicle that has four wheels and is capable of achieving speeds of at least 20 miles per hours (mph), but not more than 25 mph, on a paved level surface. A 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. A 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 169.011 and 169.224)

Medium-Speed Electric Vehicle Access to Roadway

A medium-speed electric vehicle is defined as an electrically powered four-wheeled motor vehicle capable of achieving speeds 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 Minnesota Statutes 169.011 and 169.224)

Electric Vehicle (EV) Infrastructure

EV infrastructure installed in Minnesota must enable the following without requiring significant upgrades of the EV infrastructure: 1) utilization of the EV infrastructure by any make, model, or type of EV; 2) compliance with state safety standards and standards set by the Society of Automotive Engineers; and 3) capability for bidirectional charging once electrical utilities achieve a cost-effective ability to draw electricity from EVs connected to the utility grid. (Reference House File 1250, 2009, and Minnesota Statutes 325F)

Biodiesel Task Force

To 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 15-member task force advises the Minnesota Department of Agriculture on methods to increase production and use of biodiesel in Minnesota.

Point of Contact

Ralph Groschen
Senior Marketing Specialist
Minnesota Department of Agriculture
Phone (651) 201-6223
Fax (651) 201-6114
ralph.groschen@state.mn.us

Alternative Fuel Use and Alternative Fuel Vehicle (AFV) Acquisition Requirements

State 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 Priorities

State 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)

Alternative Fuel Tax

The Minnesota Department of Revenue imposes an excise tax 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 the pump a rate of $0.1924 per gallon, liquefied petroleum gas is taxed at $0.20325 per gallon, liquefied natural gas is taxed at $0.1626 per gallon, and compressed natural gas is taxed at the rate of $0.2357 per hundred cubic feet. Gasoline is taxed at the rate of $0.271 per gallon. (Reference Minnesota Statutes 296A.07 and 296A.08)

Idle Reduction Regulation - Minneapolis

Vehicles are not permitted to idle for more than three consecutive minutes in any one-hour period. However, vehicles designed to operate on highways that load and unload may not idle for a period greater than 30 minutes in any one-hour period while loading or unloading at a location under the control of the owner or operator; these vehicles may not idle for more than five minutes in any one-hour period while not loading or unloading. Exemptions related to factors including traffic, passenger comfort, and emergency vehicles apply. (Reference Minneapolis Code of Ordinances Title 3, Sections 58.30, 58.40)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Minnesota

Minnesota Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Lisa Thurstin Clean Cities Coordinator	Twin Cities Clean Cities Coalition	Phone:(651) 223-9568 Fax:(651) 281-0242
Brad Beauchamp Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7322 Fax:
Emily Nelson Coordinator	American Lung Association of Minnesota	Phone:(651) 227-8014 Fax:(651) 281-0242
Ralph Groschen Senior Marketing Specialist	Minnesota Department of Agriculture	Phone:(651) 201-6223 Fax:(651) 201-6114
Bob Ellingsworth Fleet Manager	Minnesota Department of Transportation	Phone:(651) 336-5704 Fax:(651) 366-5727
Tim Morse Director, Fleet and Surplus Services	Minnesota Department of Administration	Phone:(651) 201-2511 Fax:(651) 296 3991
Mike Nelson Small Business Ombudsman	Minnesota Pollution Control Agency	Phone:(651) 575-2122 Fax:
Scott Benson Transportation Specialist, Great Lakes Region	U.S. General Services Administration	Phone:(312) 886-8682 Fax:(312) 353-0989

Missouri Incentives and Laws

Last Updated August 2009

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 Incentives

Alternative Fueling Infrastructure Tax Credit

An 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. Tax credits may be carried forward for two years and maybe transferred or sold, but will be forfeited if a tax credit recipient stops selling alternative fuel. 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 Missouri Revised Statutes 135.710)

Point of Contact

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

Ethanol Production Incentive

Qualified 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 or qualified biomass each fiscal year. The Fund is administered by the Missouri Department of Agriculture and the incentive expires on December 31, 2015. (Reference Missouri Revised Statutes 142.028 and 142.029)

Point of Contact

Robin Perso
Director of Budget and Planning
Missouri Department of Agriculture
Phone (573) 526-4892
Fax (573) 751-5002
robin.perso@mda.mo.gov

Biodiesel Production Incentive

The Missouri Qualified Biodiesel Producer Incentive Fund (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 have begun production 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.

The 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, but Missouri-based qualified biodiesel producers that receive grants prior to December 31, 2009, will continue to be eligible for up to total of 60 months. Additional conditions may apply.

(Reference Missouri Revised Statutes 142.031)

Point of Contact

Robin Perso
Director of Budget and Planning
Missouri Department of Agriculture
Phone (573) 526-4892
Fax (573) 751-5002
robin.perso@mda.mo.gov

Biodiesel Fuel Use Incentive

Through 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 if there is an incremental cost to purchase the biodiesel. (Reference Missouri Revised Statutes 414.433)

Fleet Biodiesel Fuel Use Incentive

The 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 Regulations

Ethanol Blend Mandate

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 D4806. (Reference Missouri Revised Statutes 414.255)

Idle Reduction Weight Exemption

Any 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 Missouri Revised Statutes 304.180)

Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements

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

Alternative Fuels Promotion

The Missouri Alternative Fuels Commission promotes the continued production and use of alternative and renewable transportation fuels in Missouri. The commission submits a report annually to the Governor and general assembly and provides recommendations on changes to state law to facilitate the sale and distribution of alternative fuels and alternative fuel vehicles; promote the development, sale, distribution, and consumption of alternative fuels; promote the development and use of alternative fuel vehicles and technology that will enhance the use of alternative and renewable transportation fuels; educate consumers about alternative fuels; and develop a long-range plan for the state to reduce consumption of petroleum fuels. (Reference Missouri Revised Statutes 414.420)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled vehicle with a maximum speed of 25 miles per hour (mph) and manufactured in compliance with National Highway Traffic Safety Administration standards. A low-speed vehicle may not be operated on a street or highway with a posted speed limit greater than 35 mph and is exempt from inspection and emission testing as long as it complies with the minimum safety equipment requirements as adopted in Title 49 of the Code of Federal Regulations, Section 571.500. (Reference Missouri Revised Statutes 304.029)

Biodiesel Use Requirement

The Missouri Department of Transportation (MoDOT) is required to develop a program that increases the use biodiesel blends in its vehicle fleet. At least 75% of the MoDOT vehicle fleet and heavy equipment that uses diesel fuel must be fueled with B20 or higher biodiesel blends, if such fuel is commercially available. The blended biodiesel fuel will be considered commercially available if the incremental cost of purchasing the fuel is not more than $0.25 as compared to conventional diesel fuel. To the maximum extent practicable, MoDOT must obtain funding for the incremental cost of the blended biodiesel fuel from the state's Biodiesel Fuel Revolving Fund. (Reference Missouri Revised Statutes 414.365)

Alternative Fuel Vehicle (AFV) Emission Inspection Exemption

Vehicles that are powered exclusively by electric or hydrogen power, or by fuels other than gasoline, which are exempt from motor vehicle emissions inspection under federal regulation, are exempt from state emissions inspection requirements. (Reference Missouri Revised Statutes 643.315)

Alternative Fuel Tax

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

It is unlawful for any person to operate a motor vehicle on state highways without a valid decal if such vehicle is required to have an alternative fuel decal. No person may fuel an alternative fuel vehicle with liquefied petroleum gas (LPG) or natural gas unless the vehicle has a valid decal. Motor vehicles licensed as historic vehicles that are powered by alternative fuels are exempt from the motor fuels tax as well as the alternative fuel decal requirement.

(Reference Missouri Revised Statutes 142.803 and 142.869)

Liquefied Petroleum Gas (LPG) License

Persons involved in the retail sale, transport, or handling of LPG, or in the business of installing or modifying related equipment must first register with the Director of the Missouri Department of Agriculture. (Reference Missouri Revised Statutes 323.060)

Idle Reduction Requirement - City of St. Louis

Within the City of St. Louis, motor vehicles are not permitted to idle for more than five minutes in any 60-minute period while parking, standing or stopped. Exemptions are allowed for the following: emergency vehicles; vehicles transporting disabled or special needs persons; vehicles that provide power for auxiliary purposes; traffic and adverse weather conditions; repair and diagnostic purposes; and vehicles engaged in the delivery of goods. Violators are subject to fines. (Reference St. Louis City Ordinance 68137)

Utilities/Private Incentives

Natural Gas Infrastructure Technical Assistance and Maintenance

Laclede Gas Company is a supplier of natural gas and provides information regarding compressed natural gas (CNG) vehicles. Laclede Venture Corporation, a non-utility subsidiary of Laclede Gas Company, installs and maintains CNG fueling stations in Missouri and also provides consulting engineering services nationwide.

Point of Contact

Tom Schultz
Natural Gas Vehicle Market Development Manager
Laclede Gas Company
Phone (314) 342-0684
Fax (314) 342-9577
tschultz@lacledegas.com

Natural Gas Infrastructure Technical Assistance

Atmos Energy offers preliminary feasibility studies for compressed natural gas refueling stations and may assist with vendor selection on a case-by-case basis.

Point of Contact

Walter C. Miller
Energy Services Consultant
Atmos Energy
Phone (817) 303-2903
Fax (817) 303-2929
walter.c.miller@atmosenergy.com

Missouri Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Kevin Herdler Clean Cities Coordinator	St. Louis Clean Cities Program	Phone:(314) 397-5308 Fax:
Kelly Gilbert Clean Cities Coordinator	Kansas City Regional Clean Cities Coalition	Phone:(816) 561-1625 Fax:(816) 531-4846
Brad Beauchamp Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7322 Fax:
Cindy Carroll Energy Specialist	Missouri Department of Natural Resources, Missouri Energy Center	Phone:(573) 751-3443 Fax:(573) 751-6860
Robin Perso Director of Budget and Planning	Missouri Department of Agriculture	Phone:(573) 526-4892 Fax:(573) 751-5002
Steve Nagle Director of Community Planning and Environmental Resources	East-West Gateway Council of Governments	Phone:(314) 421-4220 Fax:(314) 231-6120
Bradley Schad Associate Director of Ethanol Blends	Missouri Corn Growers Association	Phone:(573) 893-4181 Fax:(573) 893-4612
Tom Schultz Natural Gas Vehicle Market Development Manager	Laclede Gas Company	Phone:(314) 342-0684 Fax:(314) 342-9577
Walter C. Miller Energy Services Consultant	Atmos Energy	Phone:(817) 303-2903 Fax:(817) 303-2929
Robert Smith Fleet Acquisition Coordinator	U.S. General Services Administration	Phone:(314) 263-3024 Fax:(314) 263-3009
Lachala Kemp Environmental Engineer, Region 7	U.S. Environmental Protection Agency	Phone:(913) 551-7214 Fax:(913) 551-7844

Mississippi Incentives and Laws

Last Updated May 2009

State Incentives

Biofuels Production Incentive

The Mississippi Department of Agriculture and Commerce provides incentive payments to ethanol and biodiesel producers located in Mississippi. The amount of payment is $0.20 per gallon, up to 30 million gallons per year per producer, for a period of up to 10 years following the start date of production. No payments will be made for production that occurs after June 30, 2015, and the maximum total annual payment to a single producer per fiscal year is $6 million. (Reference Mississippi Code 69-51-5)

State Laws and Regulations

Fuel-Efficient and Alternative Fuel Vehicle Use

The Bureau of Fleet Management (Bureau) was established within the Mississippi Department of Finance and Administration to coordinate and promote efficiency and economy in the purchase, lease, rental, acquisition, use, maintenance, and disposal of vehicles by state agencies. The Bureau will encourage the use of fuel-efficient or hybrid electric vehicles appropriate for the state agency's intended purpose and, when feasible, the use of alternative fuels, including but not limited to, ethanol, biodiesel, natural gas, or electricity. By July 1, 2014, at least 75% of all vehicles titled under the Bureau must have a U.S. Environmental Protection Agency estimated fuel economy rating of at least 40 miles per gallon for highway driving. (Reference Senate Bill 3049, 2009 and Mississippi Code 25-1-77)

Installation of Alternative Fuel Components on Vehicles

All liquefied petroleum and natural gas carburetion systems must be installed by an authorized installer or automobile manufacturer, or be inspected by the State Liquefied Compressed Gas Board (Board) or Commissioner of Insurance when not installed by such qualified installer or manufacturer. All liquefied petroleum or natural gas carburetion systems installed on vehicles, including school buses, used in public transportation must be inspected by a field inspector. The Board may require inspection of any installations of liquefied petroleum gas or natural gas carburetion systems on any other vehicle types as deemed necessary. All installations must comply with the rules and regulations of the Board. Any installer of a liquefied petroleum or compressed natural gas carburetion system who collects an installation service fee must hold an installer's license from the Board and must notify the Board of any applicable installation. (Reference Mississippi Code 75-57-47)

Natural Gas Tax

A fuel tax is levied on distributors of compressed natural gas and liquefied natural gas based per 100 cubic feet rather than on a gallon equivalent basis. An annual privilege tax is imposed on operators of motor vehicles using and/or capable of using compressed gas and is imposed according to the gross vehicle weight rating. (Reference Mississippi Code 27-59-11)

Propane Education and Research Program

The State Liquefied Compressed Gas Board (Board), operated through the Mississippi Insurance Department, enforces laws and regulations regarding the distribution of liquefied compressed gases within the state. The Board has grant funding available for Mississippi-based entities for the purpose of promoting and researching the development of more cost-effective uses of propane. Educational, safety, and market development programs may also qualify for grant funding. All proposals are reviewed by the Board. (Reference Mississippi Code 75-57-119)

Point of Contact

Keith Montgomery
Director
Mississippi Insurance Department, Liquefied Compressed Gas Division
Phone (601) 359-1064
Fax (601) 359-1076
keith.montgomery@mid.state.ms.us
http://www.mid.state.ms.us/state_fire_marshal/lc_gas/liquefied_compressed_gas.aspx

Natural Gas Deregulation

The transmission, sale, or distribution of compressed natural gas and distribution or sale of liquefied petroleum gas is deregulated for use as a motor vehicle fuel and for related purposes. (Reference Mississippi Code 77-3-3 and 77-3-11)

Utilities/Private Incentives

Natural Gas Fuel Rate Reduction and Vehicle Incentives

Atmos Energy offers incentives for natural gas vehicles on a case-by-case basis and offers special rates for natural gas when used as a vehicle fuel.

Point of Contact

Larissa Williams
Sales Representative
Atmos Energy
Phone (601) 420-5071
Fax (601) 360-1951
larissa.williams@atmosenergy.com
http://www.atmosenergy.com

Mississippi Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Steven Richardson Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(304) 285-4185 Fax:(304) 285-4777
Keith Montgomery Director	Mississippi Insurance Department, Liquefied Compressed Gas Division	Phone:(601) 359-1064 Fax:(601) 359-1076
Larissa Williams Sales Representative	Atmos Energy	Phone:(601) 420-5071 Fax:(601) 360-1951
Angelica Rawls Associate Manager	Mississippi Development Authority, Energy Division	Phone:(601) 359-6600 Fax:(601) 359-6642
Dale Aspy Environmental Engineer, Region 4	U.S. Environmental Protection Agency	Phone:(404) 562-9041 Fax:(404) 562-9019

Montana Incentives and Laws

Last Updated June 2009

Montana is the home of the Yellowstone-Teton Clean Energy Coalition (www.yellowstonetetoncleanenergy.org). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Renewable Energy Property Tax Incentive

Property tax rate abatements are available for new investments in facilities that manufacture, research, or develop products related to biodiesel, biomass, biogas, coal-to-liquid fuels, ethanol, pipelines carrying "clean" products, renewable energy manufacturing plants, and research and development equipment for renewable energy. These incentives last for 15 years after facility start-up or the related equipment is purchased. The total time of the qualifying period may not exceed 19 years. (Reference Montana Code Annotated 15-24-3111)

Ethanol Production Incentive

Montana based ethanol producers are entitled to a tax incentive of $0.20 per gallon of ethanol solely produced from Montana agricultural products, or if the ethanol was produced from non-Montana agricultural products when Montana products were unavailable. The amount of the tax incentive for each gallon is reduced proportionately, based upon the amount of agricultural or wood products not produced in Montana that are used in the production of the ethanol. The tax incentive is available to a facility for the first six years from the date that production begins. Ethanol eligible for the incentive must be blended with gasoline for sale as ethanol-blended gasoline in Montana, exported from Montana for sale as ethanol-blended gasoline, or used in the production of ethyl tertiary butyl ether for use in reformulated gasoline. An ethanol distributor is not eligible to receive the tax incentive unless at least 20% of Montana product is used to produce ethanol at the facility in the first year of production, 25% of Montana product is used the second year, and the amount of Montana product used each year thereafter must increase by 10% annually. (Reference Montana Code Annotated 15-70-522)

Biodiesel Blending Tax Credit

A tax credit is available to businesses and individuals for up to 15% of the cost of qualified equipment used for storing or blending biodiesel with petroleum diesel for sale. The amount of the credit may not exceed $52,500 for a special fuel distributor and $7,500 for an owner or operator of a motor fuel outlet. The credit can be claimed in the two tax years before the year in which the taxpayer begins blending biodiesel for fuel or sale. (Reference Montana Code Annotated 15-32-703)

Biodiesel Production Facility Tax Credit

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

Biodiesel Production Incentive

A tax incentive is available to biodiesel producers during the first three years of production in the amount of $0.10 per gallon for each gallon of increased production over the previous year. For the purposes of this incentive, the production year begins July 1. This tax incentive is available until July 1, 2010. (Reference Montana Code Annotated 15-70-601)

Biodiesel Tax Refund

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

Alternative Fuel Vehicle (AFV) Conversion Tax Credit

An income tax credit is available to businesses or individuals for up to 50% of the equipment and labor costs for converting vehicles to operate using alternative fuels. Qualified alternative fuels are compressed and liquefied natural gas, liquefied petroleum gas, hydrogen, electricity, and fuel containing at least 85% ethanol or methanol. A maximum credit of $500 is available for the conversion of vehicles with a Gross Vehicle Weight Rating (GVWR) of 10,000 pounds (lbs.) or less and $1,000 for vehicles with a GVWR of more than 10,000 lbs. The credit must be applied in the year the conversion is made, and the seller of an alternative fuel may not receive a credit for converting their own vehicles to operate on the alternative fuel they sell. (Reference Montana Code Annotated 15-30-164)

State Laws and Regulations

Biodiesel Tax Exemption

Biodiesel produced from waste vegetable oil feedstock after June 30, 2009, is exempt from the state special fuel tax. (Reference House Bill 416, 2009, and Montana Code Annotated 15-70-301 and 15-70-321)

Fuel-Efficient Vehicle Acquisition Requirements

All vehicles purchased for state agency use must meet or exceed the current federal Corporate Average Fuel Economy standard, and agencies must develop and implement programs to reduce fuel consumption in agency vehicles. Certain state vehicles are exempt from these requirements. (Reference Montana Code Annotated 2-17-416)

Medium-Speed Electric Vehicle Access to Roadways

A medium-speed electric vehicle, which has a maximum speed of 35 miles per hour (mph), a gross vehicle weight of 5,000 pounds or less, and is in compliance with Title 49 of the Code of Federal Regulations, part 565, may only be operated on a highway for which the posted speed limit does not exceed 45 mph. A medium-speed electric vehicle must be treated as a light vehicle for purposes of titling and registration. (Reference Senate Bill 72, 2009, and Montana Code Annotated 61-1-101)

Ethanol Fuel Blend Use Requirement

State government agencies and universities owning or operating motor vehicles capable of burning ethanol-blended gasoline must take all reasonable steps to ensure that the operators of those vehicles use ethanol-blended gasoline to operate the vehicles if ethanol-blended gasoline is commercially available within the operating area of the vehicle and competitively priced as compared to conventional gasoline. (Reference Montana Code Annotated 2-17-414)

Biofuels Promotion

In support of the "25 x 25" initiative to increase production of renewable energy by the agricultural community, the Montana legislature supports the development of a broad spectrum of renewable energy resources, including biofuels, with the goal of agriculture providing 25% of the total energy consumed in the United States by the year 2025. (Reference House Joint Resolution 6, 2007)

Ethanol Blend Mandate

All gasoline sold to consumers for use in motor vehicles operating on public roads must be blended with 10% by volume, agriculturally derived, denatured ethanol, within one year after the Montana Department of Transportation has certified that the state has produced 40 million gallons of ethanol and has maintained that level of production on an annualized basis for at least three months. If the production of ethanol in Montana drops below 20 million gallons on an annualized basis, the 10% blend requirement does not apply. All gasoline sold as E10 may not contain more than trace amounts of the additive methyl tertiary butyl ether. (Reference Montana Code Annotated 82-15-121)

Alternative Fuel Promotion

The state of Montana encourages the use of alternative fuels and fuel blends to the extent that doing so produces environmental and economic benefits to the citizens of Montana. The state legislature recommends several guidelines for the development of a state alternative fuels policy, including the following: 1) encourage the use of self-sufficient markets; 2) any state alternative fuels program should have measurable benefits and be communicated to the public; 3) state and local governments should be encouraged to set an example with their vehicle fleets by using alternative fuels and fuel blends. The state also encourages production of alternative fuels and fuel blends. (Reference Montana Code Annotated 90-4-1011)

Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) Tax

Retail sales for CNG and LPG used to operate vehicles are subject to a modified tax based on energy content. (Reference Montana Code Annotated 15-70-711)

Compressed Natural Gas (CNG) or Liquefied Petroleum Gas (LPG) License

A person may not act as a CNG or LPG dealer unless the person holds a valid CNG or LPG dealer's license issued by the Montana Department of Transportation. (Reference Montana Code Annotated 15-70-702)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Montana

Montana Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Philip Cameron Clean Cities Coordinator	Yellowstone-Teton Clean Energy Coalition	Phone:(307) 413-1971 Fax:
Kay Kelly Project Manager	U.S. Department of Energy, Golden Office	Phone:(303) 275-6037 Fax:
Howard Haines Bioenergy Program Manager & Clean Diesel	Montana Department of Environmental Quality, Energy & Pollution Prevention Bureau	Phone:(406) 841-5252 Fax:(406) 841-5091
Anna Friend Transportation Operations Specialist	U.S. General Services Administration	Phone:(303) 236-7221 Fax:(303) 236-7590

North Carolina Incentives and Laws

Last Updated October 2009

North Carolina is the home of the Triangle (www.trianglecleancities.org) and Centralina (www.4cleanfuels.com) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Grants

The Clean Fuel Advanced Technology (CFAT) project focuses on reducing transportation related emissions in North Carolina's non-attainment and maintenance counties for National Ambient Air Quality Standards. Projects that are adjacent to areas may also be eligible if emissions will be reduced in the eligible counties. The project is funded by the North Carolina Department of Transportation, State Energy Office, and the Division of Air Quality, and covers three broad areas: education and outreach; project funding; and recognition of exemplary activities. Although funding is not currently available, future financial support may be available for AFVs, fueling infrastructure, idle reduction technologies, heavy-duty HEVs, heavy-duty buses, and diesel retrofits.

Point of Contact

Anne Tazewell
Alternative Fuels Program Manager
North Carolina Solar Center, North Carolina State University
Phone (919) 513-7831
Fax (919) 515-6159
cleantransportation@ncsu.edu

Biofuels Industry Development

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

Biodiesel Production Tax Credit

A biodiesel provider that produces at least 100,000 gallons of biodiesel during the taxable year is allowed a credit equal to the per gallon excise tax the producer paid in accordance with the motor fuel excise tax rate. The credit only applies to tax paid on the biodiesel portion of the fuel blend and the credit may not exceed $500,000. This credit is effective until January 1, 2010. (Reference North Carolina General Statutes 105-129.16F)

Biofuel Production Facility Tax Credit

A tax credit is available for the processing of biodiesel, ethanol, or ethanol/gasoline blends consisting of at least 70% ethanol. The credit is equal to 25% of the cost of constructing and equipping the facility and a facility must be placed in service before January 1, 2011. The credit must be taken in seven equal annual installments beginning with the taxable year in which the facility is placed in service. In lieu of this credit, a taxpayer that constructs and places into service three or more commercial facilities for processing renewable fuel in North Carolina and invests at least $400 million in total in the facilities is allowed a credit equal to 35% of the cost to the taxpayer of constructing and equipping the facilities. To claim the credit, the taxpayer must obtain a written determination from the Secretary of Commerce that the taxpayer is expected to invest at least $400 million in three or more facilities within a five-year period. (Reference North Carolina General Statutes 105-129.15 and 105-129.16D)

Renewable Energy Property Tax Credit

Taxpayers who construct, purchase, or lease renewable energy property, are eligible for a tax credit equal to 35% of the cost of the property. Renewable energy property includes equipment that uses renewable biomass resources to produce ethanol, methanol, biodiesel, or methane produced via anaerobic biogas, utilizing agricultural and animal waste or garbage; and related devices for converting, conditioning, and storing the liquid fuels and gas produced with the biomass equipment. The credit must be taken in five equal installments beginning with the taxable year in which the property is placed in service. There is a maximum funding amount of $2.5 million per installation which applies to renewable energy property placed in service for any purpose other than residential. Property must be placed in service before January 1, 2011. (Reference North Carolina General Statutes 105-129.15 and 105-129.16A)

Biofuel Fueling Infrastructure Tax Credit

A tax credit is available for qualified fueling facilities that dispense biodiesel, ethanol, or ethanol/gasoline blends consisting of at least 70% ethanol. The credit is equal to 15% of the cost of construction and installation of the dispensing facility, including pumps, storage tanks, and related equipment, that is directly and exclusively used for dispensing or storing the fuel. The credit must be taken in three equal annual installments beginning with the taxable year in which the facility is placed into service. Facilities must be placed in service before January 1, 2011. (Reference North Carolina General Statutes 105-129.16D)

Alternative Fuel and Idle Reduction Grants

Grants from the North Carolina Department of Environment and Natural Resources Division of Air Quality are available for the incremental cost of purchasing original equipment manufacturer alternative fuel vehicles, vehicle conversions, implementing idle reduction programs, and constructing or installing public alternative fueling facilities. More than $500,000 in funding is available.

Point of Contact

Anne Galamb
Environmental Specialist
North Carolina Department of Environment and Natural Resources
Phone (919) 715-6296
Fax (919) 715-1812
anne.galamb@ncmail.net
http://www.ncair.org/

Alternative Fuel and Alternative Fuel Vehicle (AFV) Fund

The North Carolina State Energy Office administers an energy credit banking program, which enables the state to generate funds from the sale of Energy Policy Act of 1992 (EPAct) credits. The monies generated by the sale of EPAct credits are deposited into the Alternative Fuel Revolving Fund (Fund), which enables state agencies to offset the incremental costs of purchasing alternative fuel, developing fueling infrastructure, and purchasing AFVs. Funds are distributed to state departments, institutions, and agencies in proportion to the number of EPAct credits generated by each. For the purposes of this program, the definition of alternative fuel includes 100% biodiesel (B100), biodiesel blends of at least 20% (B20), ethanol/gasoline blends consisting of at least 85% ethanol (E85), compressed natural gas, propane, and electricity, and includes hybrid electric vehicles. The Fund also covers additional projects approved by the Energy Policy Council. (Reference Senate Bill 457, 2009, and North Carolina General Statutes 143-58.4, 143-58.5, 143-341(8)i, and 136-28.13)

State Laws and Regulations

Ethanol Blend Requirement

Suppliers that import gasoline for sale in North Carolina must offer fuel that is not pre-blended with fuel alcohol but that is suitable for future blending. Future contract provisions that restrict distributors or retailers from blending gasoline with fuel alcohol are void. (Reference North Carolina General Statutes 75-90, 105-449.60)

Biodiesel Warranty Requirement

Every new motor vehicle purchased by the State of North Carolina that is designed to operate on diesel fuel must be covered by a manufacturer's warranty that allows the use of B20 fuel in the vehicle. This requirement does not apply if the Department of Administration determines that the intended use of the vehicle requires a type of vehicle for which a manufacturer's warranty allowing the use of B20 is not available. (Reference House Bill 1079, 2009, and North Carolina General Statutes 20-351.11, 136-28.15, and 143-341(8)(i))

Biodiesel Requirement for School Buses

Every school bus that is capable of operating on diesel fuel must be capable of operating on diesel fuel with a minimum content of 20% biodiesel (B20). Furthermore, at least 2% of the total volume of fuel purchased annually by local school districts statewide, for use in diesel school buses, must be a minimum of B20 to the extent that biodiesel blends are available and compatible with the technology of the vehicles and the equipment used. (Reference North Carolina General Statutes 115C-240(c) and 115C-249(a))

Fuel-Efficient Vehicle Acquisition Requirements

Effective July 1, 2010, the North Carolina Department of Administration must give purchase preference to new state vehicles with fuel economy ratings that rank among the top 15% of comparable vehicles in their class. (Reference House Bill 1079, 2009, and North Carolina General Statutes 143-341(8)(i))

Alternative Fuel Vehicle (AFV) Acquisition Requirements

At least 75% of new or replacement light-duty cars and trucks (with a Gross Vehicle Weight Rating of 8,500 pounds or less) purchased by the State of North Carolina must be AFVs or low-emission vehicles. (Reference North Carolina General Statutes 143-215.107C)

Alternative Fuel Tax Exemption

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

Biodiesel Tax Exemption

Biodiesel that is produced by an individual for use in that individual's private passenger vehicle is exempt from the state motor fuel excise tax. (Reference North Carolina General Statutes 105-449.88)

Bond Exemption for Small Biofuels Suppliers

A bond filed with the North Carolina Secretary of Revenue is not required for fuel blenders or suppliers of ethanol or biodiesel when the expected motor fuel tax liability is less than $2,000. (Reference North Carolina General Statutes 105-449.72(a))

School Bus Idle Reduction Requirement

All local boards of education in North Carolina have adopted idle reduction policies. School buses are not allowed to idle unnecessarily on school grounds and are prohibited from warming up for longer than five minutes. The North Carolina School Boards Association has provided a sample policy and administrative procedure that meet the requirements.

Point of Contact

Transportation Services
North Carolina Department of Public Instruction
Phone (919) 807-3570
Fax (919) 807-3578
http://www.ncbussafety.org/Idling.html

Utilities/Private Incentives

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Loans

State and local government credit unions offer green vehicle loans to purchase new AFVs, HEVs, and qualified fuel-efficient vehicles. The loans are offered at a 1% interest rate discount as compared to traditional new vehicle loan rates.

North Carolina Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Kathy Boyer Clean Cities Co-Coordinator	Triangle Clean Cities Coalition	Phone:(919) 558-9400 Fax:(919) 549-9390
Sean Flaherty Clean Cities Co-Coordinator	Triangle Clean Cities Coalition	Phone:(919) 558-2700 Fax:(919) 549-9390
Jason Wager Clean Cities Co-Coordinator	Centralina Clean Fuels Coalition	Phone:(704) 348-2707 Fax:(704) 347-4710
Sarah Niess Clean Cities Co-Coordinator	Centralina Clean Fuels Coalition	Phone:(704) 348-2719 Fax:(704) 347-4710
Bill Eaker Clean Cities Coordinator	Land of Sky Regional Council, Clean Vehicles Coalition (Not Yet Designated)	Phone:(828) 251-6622 x142 Fax:(828) 251-6353
Steven Richardson Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(304) 285-4185 Fax:(304) 285-4777
Anne Galamb Environmental Specialist	North Carolina Department of Environment and Natural Resources	Phone:(919) 715-6296 Fax:(919) 715-1812
Cynthia Moseley Alternative Fuels Program Manager	North Carolina Department of Commerce	Phone:(919) 733-1896 Fax:(919) 733-2953
Anne Tazewell Alternative Fuels Program Manager	North Carolina Solar Center, North Carolina State University	Phone:(919) 513-7831 Fax:(919) 515-6159
Transportation Services	North Carolina Department of Public Instruction	Phone:(919) 807-3570 Fax:(919) 807-3578
	North Carolina Soybean Producers Association	Phone:(919) 839-5700 Fax:(919) 839-5775
Lydia McIntyre Transportation Planning Engineer	Greensboro Department of Transportation	Phone:(336) 373-3117 Fax:(336) 412-6171
Dale Aspy Environmental Engineer, Region 4	U.S. Environmental Protection Agency	Phone:(404) 562-9041 Fax:(404) 562-9019

North Dakota Incentives and Laws

Last Updated June 2009

North Dakota is the home of the Red River Valley/Winnipeg Manitoba Clean Cities Coalition (www.cleanairchoice.org/cities/rrv.cfm). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Biofuels Infrastructure Grants

Cost-share grants of up to $5,000 per fueling pump are available to motor fuel retailers who install qualified biofuel blender pumps and associated equipment at retail locations. A qualified ethanol retail blender pump must meet the following criteria: 1) dispense a blend of gasoline and ethanol in the ratio selected by the purchaser; 2) is manufactured to an industry standard and carries a warranty for compatibility with dispenser components and storage and piping systems; 3) has at least four hoses and dispenses either a blend of 10% ethanol or the minimum blend percentage approved for all vehicles by the U.S. Environmental Protection Agency, a blend of at least 20% ethanol, and E85; and 4) complies with all alternative fuel, biofuel, and flexible fuel requirements established by law. A qualified biodiesel retail blender pump must dispense varying blends of biodiesel and diesel fuels in the ratio selected by the purchaser, and comply with all alternative fuel, biofuel, and flexible fuel requirements established by law. This incentive is effective through November 30, 2010. (Reference Senate Bill 2228, 2009, and North Dakota Century Code 17-80)