Rhode Island Incentives and Laws for Biodiesel

The list below contains summaries of all Rhode Island incentives and laws related to Biodiesel.

State Incentives

Biodiesel Tax Exemption

Biodiesel is exempt from the $0.30 per gallon state motor fuel tax. Biodiesel may be blended with other fuel for use in motor vehicles, but only the biodiesel portion of the blended fuel is tax exempt. Biodiesel is defined as fuel that is derived from vegetable oils or animal fats and conforms to ASTM D6751 specifications for use in diesel engines and results in employment at a manufacturing facility for biodiesel fuel. (Reference Rhode Island General Laws 31-36-1)

Laws and Regulations

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

To reduce fuel consumption and pollution emissions, and purchase vehicles that provide the best value on a lifecycle cost basis, the state must 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 least a Low Emission Vehicle certification, 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 emissions 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 must also prepare an annual report to the governor on compliance with these goals. (Reference Executive Order 05-13, 2005)

Biofuels Promotion

The Biofuels Study Commission (Commission) is established to study the feasibility and effectiveness of incentives that promote the development and use of advanced biofuels in the state, including production credits, feedstock incentives, and direct use consumer credits. The Commission will also explore the possibility of entering into an agreement with the states participating in the Regional Greenhouse Gas Initiative to develop and implement a low carbon fuel standard for transportation fuels. The Commission must report results and recommendations to the General Assembly by January 23, 2012, and report at least every two years thereafter. The Commission must also continue to make recommendations to the General Assembly as necessary. (Reference House Bill 5390, 2011, and Rhode Island General Laws 31-37.3)