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Alaska E85 Laws and Incentives


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)

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)