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Rhode Island Biodiesel Laws and Incentives


State Incentives

Biodiesel Tax Exemption

Biodiesel fuel is defined as fuel derived from vegetable oils or animal fats that conforms to ASTM D6751 specifications for use in diesel engines and results in employment in Rhode Island at a manufacturing facility for biodiesel fuel. Biodiesel is exempt from the $0.30 per gallon motor fuel tax. The biodiesel may be blended with other fuel for use in motor vehicles, but only the biodiesel portion of the fuel is tax exempt. (Reference Senate Bill 525, 2009, and Rhode Island Code 31-36)

State Laws and Regulations

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Acquisition Requirements

In order to reduce fuel consumption, improve fuel efficiency to meet the minimum federal Corporate Average Fuel Economy standards, reduce pollution emissions, and purchase vehicles that provide the best value on a lifecycle cost basis, the state is required to take the following actions: 1) at least 75% of state motor vehicle acquisitions must be AFVs, and the remaining 25% must be HEVs to the greatest extent possible; 2) all new light-duty trucks in the state fleet must achieve a minimum city fuel economy of 19 miles per gallon (mpg) and achieve at a minimum the certification of a Low Emission Vehicle, and all new passenger vehicles in the state fleet must achieve a minimum city fuel economy of 23 mpg; 3) all state agencies must purchase the most economical, fuel-efficient, and lowest emission vehicles appropriate to meet any needed requirements and discourage the purchase of sport utility vehicles; 4) all state agencies must purchase low rolling resistance tires with superior tread life for state vehicles when possible; and 5) all state vehicles must be maintained according to manufacturer specifications, including specified tire pressures and ratings. The state is also required to prepare an annual report to the Governor on the state's compliance with these goals. (Reference Executive Order 05-13, 2005)