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Nevada Biodiesel Laws and Incentives


State Laws and Regulations

Alternative Fuel Study

The Nevada legislature proposes to conduct an interim study concerning the production and use of energy in the state. The study will include the use and availability of transportation fuels and related facilities, including alternative fuels and motor vehicle electrification, and a review of the extent and potential for biofuels production in Nevada including biodiesel, ethanol from nonfood sources, algae-based fuel, and other emerging fuel technologies. (Reference Senate Concurrent Resolution 19, 2009)

Biodiesel Producer Requirements

Biodiesel is defined as a fuel composed of mono-alkyl esters of long-chain fatty acids or any other fuel sold or labeled as biodiesel which is suitable for use as a fuel in a motor vehicle. A special fuel manufacturer is a person who manufactures, blends, produces, refines, prepares, distills or compounds only special fuel containing biodiesel or biodiesel blend in Nevada for personal use in the state or for sale or delivery in or outside of the state. Special fuel manufacturers are required to obtain a license from the Nevada Department of Motor Vehicles (DMV) and report quantities of biodiesel fuel produced or blended in the state as well as contact information for purchasers or recipients of the biodiesel fuel. Manufacturers must ensure that biodiesel blends produced do not exceed total volumes established by the DMV. (Reference Senate Bill 332, 2009, and Nevada Revised Statutes Chapter 366)

Alternative Fuel Use in County School Districts

Transportation equipment purchased by county school district general funds and used for transporting pupils must fall into the following categories: 1) motor vehicles that use biodiesel, compressed natural gas, or similar emissions-reducing fuels; 2) equipment to retrofit motor vehicles to use these fuels; or 3) equipment for the transportation, storage, or dispensing of these fuels. (Reference Assembly Bill 563, 2009)

Funds for School District Alternative Fuel Use

A portion of any penalty assessed for violations of air pollution control laws must be deposited in the county school district fund of the county where the violation occurred. Expenditures from such a fund must be approved by the local air pollution control board and are limited to: 1) programs of education on topics relating to air quality; and 2) projects to improve air quality, including the purchase and installation of equipment to retrofit school buses to operate on biodiesel, compressed natural gas, or a similar fuel formulated to reduce gasoline and diesel fuel emissions within the school district. (Reference Nevada Revised Statutes 445B.500)

Provision for Establishment of Alternative Fuel Incentives

In conjunction with the Nevada Department of Business and Industry, the Nevada Department of Conservation and Natural Resources is authorized to develop and administer a program to provide incentives to encourage the use of alternative fuels in motor vehicles, specifically by individuals and others not required by state statute to purchase alternative fuel vehicles. (Reference Nevada Revised Statutes 486A.200)

Alternative Fuel Vehicle (AFV) Acquisition Requirement

Fleets containing 50 or more vehicles that are owned, leased, or operated by the state, a state agency, or a political subdivision of the state in a county whose population is 100,000 or more are mandated to acquire AFVs or U.S. Environmental Protection Agency certified Ultra Low Emission Vehicles (ULEVs). Beginning in Fiscal Year 2000 and each subsequent year, 90% of new vehicles obtained by covered fleets must be either AFVs or certified ULEVs. A fleet may meet the acquisition requirements by converting existing or newly acquired vehicles to operate on alternative fuels. An AFV acquired in compliance with this mandate must operate solely on the alternative fuel except when operating in an area where the appropriate alternative fuel is unavailable. Fleets with buses and/or heavy-duty vehicles are included. (Reference Senate Bill 332, 2009, Nevada Administrative Code 486A.010-486A.250, and Nevada Revised Statutes 486A.010-486A.180)