The list below contains summaries of all Alabama incentives and laws related to Biodiesel.
The Alabama Department of Economic and Community Affairs (ADECA) Energy Division developed the Alabama Biodiesel Incentive Program to increase the availability and use of biodiesel blends in school buses and state fleet vehicles. Grants are available for up to $2,500 of the cost of cleaning existing fuel tanks to store biodiesel blends of 20% (B20) for use in public school, state college and university, and local government fleets. Successful applicants must provide B20 for a minimum of three years. Grantees must also provide information to ADECA Energy Division about the number of gallons of B20 dispensed and used to fuel fleet vehicles during this time period.
Point of Contact
Kathy Hornsby
Program Manager
Alabama Department of Economic and Community Affairs
Phone: (334) 242-5284
Fax: (334) 242-0552
kathy.hornsby@adeca.alabama.gov
http://www.adeca.alabama.gov/C17/ATF/default.aspx
Companies that invest in the development of a biofuel production facility may be eligible for a tax credit of up to 5% of the capital costs of the project. Companies may claim this credit against the state income tax or the financial institution excise tax liability that the project generates each year for up to 20 years. For the purposes of the credit, biofuel is defined as a motor vehicle fuel that is produced from grain, starch, oilseeds, vegetable, algae, animal, or fish materials including fats, greases and oils, sugarcane, sugar beets, sugar components, tobacco, potatoes, and lignocellulosic or other biomass. To be eligible for the tax credit, the capital 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 that the Alabama Department of Industrial Relations considers to be less developed. (Reference Code of Alabama 40-9B-3, 40-18-190, 40-18-193, 40-18-194, and 40-18-202.1)
The Alabama Legislature will establish a Green Fleets Policy (Policy) outlining a procedure for procuring state vehicles based on criteria that includes fuel economy and lifecycle costing. State fleet managers must classify their vehicle inventory for compliance with the Policy and submit annual plans for procuring fuel-efficient vehicles. These plans must reflect a 4% annual increase in average fleet fuel economy for light-duty vehicles, a 3% annual increase in average fleet fuel economy for medium-duty vehicles, and a 2% annual increase in average fleet fuel economy for heavy-duty vehicles per fiscal year. The Policy will also require that government entities manage and operate their fleets in a manner that is energy efficient, minimizes emissions, and reduces petroleum dependency by using specified proven technology the Green Fleet Review Committee identifies. (Reference Code of Alabama 41-17A)
The Alabama Legislature encourages the use of biodiesel blends in the state. The legislature urges public school systems to use blends of 20% biodiesel (B20) in all diesel-powered school buses and encourages state entities to use biodiesel blends of at least 5% (B5) in diesel-powered motor vehicles. (Reference Senate Joint Resolution 14 and 15, 2009)
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)
The Center for Alternative Fuels (Center) promotes alternative fuels as viable energy sources in the state. The Center must assess the current status and development of sources of alternative fuels, ensuring that all alternative fuels sold in the state meet ASTM standards, and act as an information center for alternative fuels and a clearinghouse for available federal grant funding for alternative fuel development. The Center may administer a grant program using income tax check-off program funds from the Alabama Alternative Fuels and Research Development Fund. (Reference Code of Alabama 2-2-90 and 2-2-91)
The Alabama Department of Economic and Community Affairs administers the Alabama Research Alliance (ARA), which facilitates scientific research and development, including agricultural research and development activities related to biofuels. The ARA may use received income to support research and development activities. (Reference Executive Order 37, 2007)