Arkansas Incentives and Laws

Last Updated March 2009

Arkansas is the home of the Central Arkansas Clean Cities Coalition. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fuel Grants

The Arkansas Alternative Fuels Development Fund includes three types of grant incentives, including capital and operation incentives for alternative fuel producers and feedstock processors, production incentives for feedstock producers, and distribution incentives for alternative fuel distributors. Alternative fuel producers can receive $0.20 per gallon of alternative fuels produced, not to exceed $2 million. Feedstock processors can receive up to $3 million or 50% of the project cost, whichever is less, for the construction, modification, alteration, or retrofitting of feedstock processing facilities that are located and operated in Arkansas. Alternative fuel distributors can receive up to $300,000 or 50% of the project cost, whichever is less, to assist with the distribution and storage of alternative fuels or alternative fuel mixtures at distribution facilities that are located and operated in Arkansas. (Reference House Bill 2002, 2009, and Arkansas Code 15-13-101, 15-13-102, 15-13-301 to 15-13-305, and 19-6-809)

Idle Reduction Technology Loans

The Arkansas Department of Environmental Quality has a small business loan program that provides low-interest loans to Arkansas small businesses to institute pollution control measures to reduce the amount of pollution produced by businesses as required by state and federal law. Idle reduction technologies for heavy-duty trucking applications are eligible for this loan. The maximum loan amount is $45,000, with a $65,000 lifetime maximum for any specific business. An eligible business must employ no more than 100 individuals and demonstrate proof of profitability and the ability to repay the loan.

Point of Contact

Amanda Leamons
Loan Program
Arkansas Department of Environmental Quality
Phone (501) 682-0923
Fax (501) 682-0880
leamonsa@adeq.state.ar.us
http://www.adeq.state.ar.us/poa/envloans.htm

State Laws and Regulations

Idle Reduction Weight Exemption

Any vehicle equipped with idle reduction technology may exceed the state's axle and gross vehicle weight limits by up to 400 pounds to compensate for the additional weight of the added idle reduction technology. (Reference Arkansas Highway Police Enforcement Policy 07-03-030)

Biofuels Use Requirement

All diesel-powered motor vehicles, light trucks, and equipment owned or leased by a state agency are required to operate using diesel fuel that contains a minimum of 2% biofuel by volume. For the purpose of this requirement, biofuel includes: biodiesel; renewable diesel; and other renewable, biodegradable mono alkyl ester combustible fuel derived from biomass. Waivers to the 2% biofuel standards for state agency vehicles may be granted if the fuel is not available in certain geographic area, if the fuel price is at least $0.15 cents more per gallon then the petroleum equivalent, or if compliance with the standard is not otherwise economically feasible. The Arkansas Bureau of Standards will work to ensure fuel quality standards. (Reference Arkansas Code 15-13-101, 15-13-102, and 15-13-202 to 15-13-205)

Alternative Fuels Tax

Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent basis. The tax rate for each type of alternative fuel is based on the number of motor vehicles licensed in the state that use each fuel type. (Reference Arkansas Code 26-62-201)

Natural Gas Metering

No user, including an alternative fuel supplier of natural gas fuels, who utilizes natural gas for residential or other tax-free purposes, is permitted to use natural gas fuel in motor vehicles unless the natural gas fuel is removed through a separate meter installed by the alternative fuels supplier for such purposes. (Reference Arkansas Code 26-62-203)

Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) User Permit

Any user of LNG or LPG to operate a vehicle must apply for and obtain a liquefied gas special fuel user's permit for each vehicle owned and operating on LNG or LPG. Applications must be submitted to the Director of the Arkansas Department of Finance and Administration. (Reference Arkansas Code 26-56-304)

Liquefied Petroleum Gas (LPG) Tax

LPG used as a motor fuel is taxed on a per vehicle basis through an annual flat fee special fuel user's permit. The fee is based on the vehicle's Gross Vehicle Weight Rating. (Reference Arkansas Code 26-56-301 and 26-56-304)

Alternative Fuel Vehicle (AFV) Conversion

Any individual or company who converts an AFV to operate on an alternative fuel must report the conversion to the Director of the Arkansas Department of Finance and Administration within 10 days of the conversion. An owner or operator who fails to report such a conversion may be subject to a penalty. (Reference Arkansas Code 26-62-214)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Arkansas.

Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Annett Pagan Clean Cities Coordinator	Central Arkansas Clean Cities Coalition	Phone:(501) 280-3079 Fax:(501) 280-3094
Steven Richardson Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(304) 285-4185 Fax:(304) 285-4777
Amanda Leamons Loan Program	Arkansas Department of Environmental Quality	Phone:(501) 682-0923 Fax:(501) 682-0880
Jenny Ahlen Renewable Energy Programs Coordinator	Arkansas Energy Office	Phone:(800) 558-2633 or (501) 682-2460 Fax:(501) 682-2703
Sandra Rennie Mobile Source Team Leader, Region 6	U.S. Environmental Protection Agency	Phone:(214) 665-7367 Fax:(214) 665-7263
Anna Friend Transportation Operations Specialist	U.S. General Services Administration	Phone:(303) 236-7221 Fax:(303) 236-7590