Biodiesel Laws and Incentives in South Carolina
The list below contains summaries of all South Carolina laws and incentives related to biodiesel.
State Incentives
Alternative Fuel Project Grants
The South Carolina Office of Regulatory Staff-Energy Office (Energy Office) offers grants of up to $10,000 for alternative fuel demonstration projects. Eligible applicants include state agencies, local governments, public colleges and universities, K-12 public schools, and non-profit organizations. For more information, including how to apply, see the Energy Office’s Loans, Grants & Tax Incentives website.
Alternative Fuel Vehicle (AFV) Revolving Loan Program for Private Entities
The South Carolina Business Development Corporation provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and incremental costs, with qualified project payback periods. Eligible recipients include businesses and industries. Utilities, non-profit organizations, and government entities may be eligible under special conditions. The loan may cover up to 100% of the project costs, ranging from $50,000 to $1 million. Repayment terms vary. For more information, including application deadlines, see the Energy Efficiency Revolving Loan website.
(Reference South Carolina Code of Laws 48-52-650)
Alternative Fuel Vehicle (AFV) Revolving Loan Program for Public Entities
The South Carolina Energy Office (SCEO) provides low interest loans for a variety of energy efficiency improvements, including AFV conversions and the incremental costs of a new AFV, with qualified project payback periods. Loans may cover up to 100% of project costs, ranging from $25,000 to $500,000 per state fiscal year. Eligible recipients include state agencies, local governments, public colleges and universities, school districts, and private non-profit organizations. State agencies and public educational institutions may combine their loan with a ConserFund Plus grant, which may cover up to 30% of total project costs. For more information, see the ConserFund website.
(Reference South Carolina Code of Laws 48-52-650)
Biofuels Distribution Infrastructure Tax Credit
A taxpayer that purchases, constructs, or installs, and places into service a qualified commercial facility for distributing or dispensing biofuels is eligible for an income tax credit of up to 25% for purchase, construction, property, and installation costs. Eligible infrastructure includes pumps, storage tanks, and related equipment used exclusively for distributing, dispensing, and storing biofuels. A qualified facility must clearly label the equipment used to store or dispense the fuel as being associated with biofuel. The credit must be taken in three equal annual installments beginning with the taxable year in which the facility is placed into service. Qualifying fuels include blends containing at least 70% ethanol (E70) dispensed at the retail level for use in motor vehicles, and pure ethanol or biodiesel fuel dispensed by a distributor or facility that blends these non-petroleum liquids with gasoline or diesel fuel for use in motor vehicles.
For more information, see the South Carolina Energy Office Funding website.
(Reference South Carolina Code of Laws 12-6-3620)
Biofuels Production Tax Credit
Beginning January 1, 2017, qualified biodiesel and ethanol facilities are eligible for an income tax credit of $0.075 per gallon for new production of biodiesel and ethanol. Biodiesel and ethanol facilities may claim the tax credit for up to 10 million gallons of ethanol and biodiesel produced during a 12-consecutive month period, up to 36 months. Additional terms and conditions apply. For more information, see the South Carolina Energy Office Funding website.
Laws and Regulations
Biodiesel Blend Distribution Mandate
All state-owned diesel fueling facilities must provide fuel containing at least 5% biodiesel (B5) at all diesel pumps.
(Reference South Carolina Code of Laws 12-63-30)
Biodiesel Use in School Buses
The South Carolina Department of Education must fuel state school bus fleets with biodiesel when feasible.
(Reference South Carolina Code of Laws 59-67-585)
Biofuel Blending Capability Requirements and Liability
Terminal operators and other entities involved in the bulk transfer of gasoline or diesel, including suppliers and refiners, must offer all grades of petroleum products not already pre-blended with ethanol and biodiesel, and ensure that the motor fuel is suitable for subsequent blending with biofuels. Terminal operators and other bulk suppliers are not liable for fines, penalties, injuries, or damages resulting from subsequent blending of fuel sold at retail locations. Furthermore, no individual or entity can deny a distributor and retailer from blending biofuels for sale in South Carolina, as long as the individual or entity is registered with the U.S. Internal Revenue Service.
(Reference South Carolina Code of Laws 39-41-235)
State Agency Preference for Alternative Fuel and Advanced Vehicles
State agencies purchasing motor vehicles must give preference to hybrid, plug-in hybrid electric, biodiesel, hydrogen, fuel cell, or flexible fuel vehicles when the performance, quality, and anticipated life cycle costs are comparable to other available motor vehicles.
(Reference South Carolina Code of Laws 1-11-310)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.