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State Alternative Fuels

Select a state below and you'll find a summary of each state's alternative fuel legislation. If you then click on the state's name you will jump to the state energy office directory with the contact information for that state.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming


ALABAMA

Alabama has no alternative transportation fuel legislation at this time.

Note: A comprehensive energy plan was introduced early in the 1994 session which addresses alternative transportation fuels.

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ALASKA

Statute Cite: 43.40.010, 43.40.100
Summary: Fuel which is at least ten percent alcohol by volume is exempt from an eight cent per gallon tax.

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ARIZONA

Note: House Bill 2001 from the 41st Legislature, 6th Special Session was a comprehensive Air Quality Plan which encompassed all Arizona alternative fuel legislation. It added some new statutes and amended many of the existing alternative fuel laws which are listed below.

Statute Cite: 9-500.04 from HB 2001
Summary: Requires areas with a population of more than 1,200,000 to develop and implement a plan to increase the use of alternative fuels in city or town owned vehicles. It establishes the following schedule for increased use of alternative fuel vehicles through purchase or conversion.

  • Dec. 31, 1994--not less than ten percent of the total fleet
  • Dec. 31, 1996--not less than 25 percent
  • Dec. 31, 1998--not less than 50 percent
  • Dec. 31, 2000--not less than 75 percent

These requirements may be waived if the costs are greater than ten percent of the life cycle net costs associated with continued use of conventional vehicles.
Another provision in this legislation requires the use of alternative fuels in bus fleets and creates a similar timetable for buses. Bus fleets must comply with this schedule unless costs are 20 percent more than the net life cycle costs of continuing with traditional fuel.

Statute Cite: 15-341.01 from HB 2001
Summary: Creates a schedule similar to 9-500.04 for school districts to comply with alternative fuel vehicle requirements.

Statute Cite: 49-474.01 from HB 2001
Summary: Outlines the additional duties of the board of supervisors in a non attainment county, including the implementation of a fleet vehicle plan.

Statute Cite: 49-573 from HB 2001
Summary: Establishes a timetable for federal fleet vehicles to comply with alternative fuel requirements.

Statute Cite: 28-1591.04 in the Transportation Code
Summary: Creates a special tax classification for alternative fuel vehicles. These vehicles are subject to a reduced license tax at the rate of $4 for each $100 in value. During the vehicles' first year, the value is one percent of the retail price. The value decreases by 15 percent each year. The minimum tax is set at $5.

Statute Cite: 41-803 in the State Government Code
Summary: Requires the state to replace state fleet vehicles with alternative fuel vehicles if the cost is within 30 percent of the life cycle cost of conventional vehicles. The following schedule was established in 1993 by HB 2001.

  • Dec. 31, 1994--not less than ten percent of the total fleet
  • Dec. 31, 1995--not less than 40 percent.
  • Dec. 31, 1997--not less than 90 percent, primarily in counties exceeding 1,200,000 persons.

Statute Cite: 41-2122 in the State Government Code
Summary: Requires use of oxygenated fuels from September 30 through March 31 in certain emission control areas.

Statute Cite: 43-1026 in the Taxation of Income Code
Summary: Taxpayers may subtract the following:

  • 25 percent of the purchase price paid for new alternative fuel vehicles purchased in Arizona, but not more than $5,000 per vehicle.
  • the cost of converting a vehicle to alternative fuel, but less than $3,000.
  • purchase price of refueling equipment, but less than $5,000.
  • 50 percent of the interest paid on debt incurred to purchase or convert an AFV.

Statute Cite: 49-571 in the Environment Code
Summary: Requires areas with a population greater than 500,000 to use buses which operate on clean burning alternative fuel after January 1, 1993. Clean burning alternative fuels are defined as: compressed natural gas; liquefied petroleum gas; gasoline blends of 85 percent ethanol or methanol; neat methanol; neat ethanol; hydrogen; electricity; solar energy; liquefied natural gas; or any combination of these fuels.

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ARKANSAS

Statute Cite: Subchapter 5 - Alternative Fuels, Sections 15-10-501 through 505 of the
Natural Resources and Economic Development Code
Summary: Creates an Alternative Fuels Commission and an Alternative Fuels Advisory Committee to increase the use of fuels produced domestically. The Commission's duties include developing and promoting the use of alternative fuels.

Statute Cite: Chapter 62, Sections 26-62-101 to 111
Summary: Levies a tax on each type of alternative fuel sold to propel a motor vehicle. The tax will be levied at 5 cents "per gallon equivalent" for the first one thousand vehicles on the various types of alternative fuels utilized in the state. It sets up the structure for levying and collecting the tax.

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CALIFORNIA

Statute Cite: 13404 in the Business and Professions Code
Summary: Deregulates the sale of natural gas that will be used as a vehicle fuel, making such sales a non-utility function.

Statute Cite: 14036.7 of the Government Code
Summary: To the extent that it is feasible, alternative fueled buses will be utilized as feeder buses between rail passenger services and airports.

Statute Cite: 40447.5 of the Health and Safety Code
Summary: Requires operators of fleet vehicles consisting of 15 or more vehicles under a single owner and operating in the south coast district, to purchase or replace vehicles in the fleet with vehicles which operate on methanol or other equivalently clean burning fuel.

Statute Cite: 40516 of the Health and Safety Code
Summary: Expedites permit review and project assistance mechanisms for electric and clean fuel vehicle technologies. It defines clean fuel as electricity, ethanol, hydrogen, liquefied petroleum gas, methanol, natural gas and reformulated gasoline.

Statute Cite: Article 1, Chapter 4, Sections 43800-43804 of the Health and Safety Code
Summary: States the Legislature's intent to encourage the development of low emission vehicles. If such vehicles meet certain guidelines, at least 25 percent of state purchases shall be low emission vehicles.

Statute Cite: Article 4, Chapter 4, Sections 43840-43844 of the Health and Safety Code
Summary: Establishes a demonstration program in Ventura County to test pure alcohol fuels in the county and municipal motor fleets. The county will be reimbursed for the costs of converting fleet vehicles. This legislation also established a methanol/gasoline blend experimental vehicle fleet program.

Statute Cite: Chapter 7, Part 5 of Division 26, Sections 44220 through 44247 of the Health and Safety Code
Summary: This chapter establishes district fees to implement the California Clean Air Act. It authorizes a motor vehicle surcharge of two dollars per vehicle. After April 1, 1992 the fee may be increased to four dollars if certain conditions are met. The money collected from these fees shall be used solely to reduce air pollution from motor vehicles.

Statute Cite: 25326 of the Public Resources Code
Summary: Directs the California Energy Commission, in collaboration with other agencies, to develop a consumer recharging and refueling infrastructure master plan.

Statute Cite: 25618 of the Public Resources Code
Summary: Facilitates the development and commercialization of ultra low and zero-emission electric vehicles.

Statute Cite: 25621 of the Public Resources Code
Summary: Directs the State Energy Resource Conservation and Development Commission to develop a program enabling the University of California and California State University to purchase new alternative fuel shuttle buses.

Statute Cite: 25625 of the Public Resources Code
Summary: Appropriates a portion of the state's allocation of petroleum violation escrow funds for an ethanol production incentive to private industry to expand ethanol use.

Statute Cite: 25678 of the Public Resources Code
Summary: Establishes a grant program which provides a 40 cent per gallon production incentive for liquid fuels fermented in California from biomass and biomass-derived resources.

Statute Cite: 740.3 of the Public Utilities Code
Summary: Directs the Public Utilities Commission to facilitate the use of electric and natural gas fueled vehicles.

Statute Cite: 745 of the Public Utilities Code
Summary: Grants the Public Utilities Commission the ability to establish special incentive tariffs for refueling electric or compressed natural gas fueled vehicles.

Statute Cite: 17052.11 of the Revenue and Taxation Code
Summary: For each taxable year between 1991 and 1996, a tax credit will be allowed in an amount equal to 55 percent of the qualified costs incurred for low-emission vehicles or low-emission conversion devices.

Statute Cite: 8651.7 of the Revenue and Taxation Code
Summary: Vehicles propelled by LPG or CNG may pay a flat rate fuel tax of $36 for passenger cars or other vehicles under 4,000 pounds.

Statute Cite: 8651.8 of the Revenue and Taxation Code
Summary: Fuels consisting of at least 85 percent ethanol or methanol may pay an excise tax of one half the normal rate for each gallon used.

Statute Cite: 10214.5 of the Unemployment Insurance Code
Summary: Provides funds for special employment training research projects that encourage the development of new industries, including the electric and clean fuel industries.

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COLORADO

Statute Cite: 25-7-105 of the Health Code
Summary: Creates an air quality control commission and directs it to promulgate rules and regulations necessary to implement a clean fuel vehicle fleet program. This includes a tax credit plan and exemptions for clean fuel vehicles from other control measures.

Statute Cite: 25-7-106.8 of the Health Code
Summary: Creates a clean vehicle fleet program under the Air Quality Control Commission. The commission is directed to require a specified percentage of alternative fuel fleet vehicles in non-attainment areas.

Statute Cite: 25-7-106.9 of the Health Code
Summary: Establishes an alternative fuel financial incentive program to promote the purchase and the conversion of motor vehicles to the use of alternative fuels and to promote the purchase of such vehicles in Colorado. Financial incentives may include rebates, loans, grants or other forms of financial incentives established by the commission.

Statute Cite: 25-7-106 and 25-7-109 of the Health Code
Summary: These two statutes, combined with regulation #13 of the Air Quality Control Commission, establish an oxygenated fuels program in non-attainment areas.

Statute Cite: 39-22-516 of the Taxation Code
Summary: Between July 1, 1992 and June 30, 1998, a five percent tax credit is provided to vehicle owners who purchase a clean fuel vehicle or who convert their vehicle to run on alternative fuel. The credit shall not exceed 50 percent of the actual cost of such conversion and is limited to a total of 50 cars or trucks for each taxable year. Until June 30, 1994, the credit is only applicable to vehicles used in connection with a business.

Statute Cite: 37-27-202
Summary: Exempts liquid petroleum gas and compressed natural gas from a 21.5 cent per gallon excise tax. Instead, they are subject to an annual license tax fee.

Statute Cite: 42-4-321 of the Vehicles and Traffic Code
Summary: Creates a state fleet alternative fuels plan with the following goals:

  1. that ten percent of new fleet vehicles operate on alternative fuel in FY 91-92.
  2. 20 percent in FY 92-93.
  3. 30 percent in FY 93-94.
  4. 40 percent in FY 94-95.

This law is repealed July 1, 1995.

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CONNECTICUT

Statute Cite: Public Act No. 93-37 (not codified)
Summary: To the extent that it is feasible, at least ten percent of all cars and light duty trucks purchased by the state in 1993 and 1994 for general purposes shall be powered by natural gas or electricity.

Statute Cite: Public Act No. 93-93 (not codified)
Summary: Reduces the tax on propane used as a transportation fuel and continues the practice of taxing gasohol at one cent less per gallon than gasoline.

Statute Cite: 4a-59 in the Administrative Services Code
Summary: With regards to award of contracts, a price preference of up to ten percent in determining the lowest qualified bidder may be taken for the purchase of an alternative fuel vehicle or conversion equipment.

Statute Cite: 12-217i in the Taxation Code
Summary: Awards a ten percent tax credit under the corporate business tax for equipment used to refuel alternative fuel vehicles, equipment used to convert vehicles to alternative fuel use, or the incremental cost of a new vehicle powered by alternative fuel.

Statute Cite: 12-412 in the Taxation Code
Summary: Exempts from the sales and use tax: new motor vehicles powered exclusively by clean alternative fuel or electricity, conversion equipment, or equipment associated with natural gas filling stations.

Statute Cite: 14-164c of the Motor Vehicle Code
Summary: Alternative fuel vehicles are not required to undergo emissions tests.

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DELAWARE

Statute Cite: 30-5131
Summary: Makes combustible gases and liquids used prior to January 1, 1996, tax exempt provided they are used in a program to determine commercial feasibility of alternatively-fueled vehicles.

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DISTRICT OF COLUMBIA

Statute Cite: 40-2003 of the Motor Vehicles and Traffic Code
Summary: Phases-in clean fuel requirements for commercial fleets of ten or more vehicles. Starting in 1993, the requirement is that five percent of the fleet must operate on alternative fuels. This requirement increases to 40 percent by the year 2000.

Statute Cite: 40-2004 of the Motor Vehicles and Traffic Code
Summary: Beginning in 1998, between May 1 to September 15, only alternative fueled vehicles will be permitted in the central employment area between sunrise and sunset.

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FLORIDA

Statute Cite: 206.86
Summary: Defines alternative fuel to mean any liquefied petroleum gas product or compressed natural gas product or combination thereof.

Statute Cite: 206.877
Summary: Exempts vehicles fueled by alternative fuels from certain taxes; instead there is an annual decal fee.

Statute Cite: 206.879
Summary: Creates the State Alternative Fuel User Fee Clearing Trust Fund and defines how the proceeds will be allocated.

Statute Cite: 206.626
Summary: Awards a tax refund to ethanol dealers purchasing motor fuel for denaturing.

Statute Cite: 368.021
Summary: Exempts certain suppliers of compressed natural gas from regulation under Gas Safety Law and increases certain penalties.

Statute Cite: 377.703
Summary: Promotes the efficient, effective, and economical management of energy problems. Grants the Department of Community Affairs the authority to promote the development and use of renewable energy resources including solar vehicles.

Statute Cite: 288.041
Summary: Promotes solar policies and activities.

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GEORGIA

Statute Cite: 25-2-6
Summary: Compressed natural gas for vehicular fuel is subject to a 100 dollar fee payable to the fire commissioner.

Statute Cite: 46-2-20
Summary: Removes natural gas used as a motor fuel from the authority and jurisdiction of the Public Service Commission.

Statute Cite: 48-9-3
Summary: Bulk sales of compressed petroleum gas, or special fuel to a consumer distributor are exempt from a 7 1/2 cent per gallon excise tax.

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HAWAII

Statute Cite: 237-27.1 of the Taxation Code
Summary: Exempts alcohol fuels from the four percent sales tax imposed on motor fuel. Alcohol fuel means fuel containing at least ten percent by volume denatured biomass-derived alcohol.

Statute Cite: 243-4
Summary: Liquefied petroleum gas used for operating a motor vehicle is taxed at rate equal to two thirds of the rate applicable to diesel oil.

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IDAHO

Statute Cite: 49-952
Summary: Motor vehicles that use compressed gas as a fuel are required to carry electric lanterns instead of anything flammable.

Statute Cite: 63-2405
Summary: From May 1, 1981 to April 30, 1992, the rate of the excise tax imposed on gasohol was four cents per gallon less than the gasoline tax. After May 1, 1992 both taxes are imposed at the same rate.

Statute Cite: 63-3025
Summary: Provides an income tax credit for improvements or construction for the purpose of manufacturing ethanol alcohol for use as a motor fuel.

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ILLINOIS

Statute Cite: 20 ILCS 205/40.27
Summary: Promotes the use of gasohol and promotes the utilization of agricultural crops, particularly the use of by-products for the production of alcohol fuels.

Statute Cite: 20 ILCS 405/67.15
Summary: States that the Department of Central Management Services shall adopt regulations setting forth guidelines regarding motor vehicles which will include the use of ethanol blended gasoline.

Statute Cite: 30 ILCS 740/2-15.1
Summary: Requires down state public transportation authorities with populations greater than 50,000 to use ethanol blends beginning July 1, 1992.

Statute Cite: 35 ILCS 105/3-10, 105/3-40, 110/3-10, 115/3-10, 120/2-10, 125/10
Summary: Exempts gasohol from a portion of the state's use tax, service use tax, service occupation tax and retailers occupation tax.

Statute Cite: 110 ILCS 65/5
Summary: Requires all gas burning vehicles owned or leased by any State college or university to be equipped to operate on ethanol blends and to use ethanol whenever available.

Statute Cite: 625 ILCS 5/12-704.3
Summary: Propane and CNG operated vehicles must display a visible decal.

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INDIANA

Statute Cite: Senate Concurrent Resolution 31 from 1992
Summary: Encourages testing natural gas systems on state vehicles.

Statute Cite: 4-4-3.8
Summary: Requires the Department of Commerce to establish specific goals for the use of alternative fuels in vehicles owned by the state before January 1, 1994.

Statute Cite: 5-17-6-23
Summary: Creates a price preference of ten percent for soy diesel/bio diesel at least 20 percent by volume.

Statute Cite: 6-6-2.1-203
Summary: Passenger vehicles weighing less than 9,000 pounds propelled by alternative fuels must obtain a special decal and pay an annual fee of 100 dollars. The fee increases with weight.

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IOWA

Statute Cite: 18.115
Summary: State owned vehicles are required to operate on gasoline blended with at least ten percent ethanol. The vehicle also must be affixed with a highly visible sticker which notifies the public that the vehicle is operated with gasohol. This legislation also requires that beginning July 1, 1992, a minimum of five percent of all state vehicles purchased must be equipped to utilize alternative fuels such as blended fuels, compressed natural gas, propane, solar energy or electricity. This requirement goes up to ten percent July 1, 1994.

Statute Cite: Chapter 159A.1-.8
Summary: Creates an office of renewable fuel to further renewable fuel activities. It also creates a renewable fuel fund. Moneys in the fund will be deposited into the renewable fuel activities account or the ethanol production incentive account. An ethanol production incentive program also is established which provides a certified ethanol producer with an incentive payment of 20 cents for each qualifying gallon of ethanol produced.

Statute Cite: 260C.19A
Summary: Motor vehicles purchased or used by the board of directors of a community college are required to operate on gas blended with at least ten percent ethanol.

Statute Cite: 279.34
Summary: Vehicles purchased or used in school districts are required to use ethanol blends.

Statute Cite: 331.908
Summary: County vehicles are required to use ethanol blends.

Statute Cite: 364.20
Summary: City vehicles are required to use an ethanol blend.

Statute Cite: 452A.3
Summary: Gasohol is exempt from the 20 cent per gallon excise tax imposed on motor fuel.

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KANSAS

Statute Cite: 79-3492b
Summary: Provides an alternative method of computing the motor fuel tax for LP-gas.

Statute Cite: 79-34,160 to 163
Summary: Provides a 20 cent per gallon incentive to ethyl alcohol producers. This legislation expires on July 1, 1997.

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KENTUCKY

Statute Cite: 278-508
Summary: Exempts natural gas used as a vehicle fuel from regulation by the Public Service Commission.

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LOUISIANA

Statute Cite: Chapter 14, 30.1301-4
Summary: Louisiana Gasohol Act: Encourages participation of the private sector in the development of a production system for alcohol fuels distilled in the state from agricultural commodities. This Act also says that state owned fuel stations should supply gasohol for use in state vehicles whenever possible.

Statute Cite: 39.364
Summary: After September 1, 1991, all vehicles purchased or leased by state agencies must operate on alternative fuels. By September 1, 1994, at least 30 percent of fleet vehicles should operate on alternative fuels. By September 1, 1996, the percentage should be 50 percent. If the program is effective in reducing emissions, the percentage goes up to 80 percent by September 1, 1998. These requirements may be waived under certain circumstances.

Statute Cite: 33.1418
Summary: Establishes the same fleet vehicle requirements for political subdivisions.

Statute Cite: 33.1419
Summary: Prohibits the state from providing subsidies or incentives for the production of CNG, liquefied petroleum gas, reformulated gasoline, methanol or ethanol.

Statute Cite: 47.38
Summary: Provides an income tax credit for conversion of vehicles to alternative fuel usage. The credit is 20 percent of the cost of the clean-burning motor vehicle fuel property.

Statute Cite: 305.28
Summary: Exempts gasohol from the sales and use tax.

Note: The laws providing incentives for gasohol were enacted in 1979, the law prohibiting these incentives was enacted in 1990.

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MAINE

Cite: Code of Maine Rules, Chapter 127
Summary: This regulation adopts the California Low Emission Vehicle Program.

Statute Cite: 36.2903
Summary: Until 1990, ethanol blended fuel was taxed at a lower rate than gasoline

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MARYLAND

Statute Cite: Subtitle 7--Motor Vehicle Emissions Certification Program, Sections 2-701 through 2-707 in the Environment Code
Summary: Establishes a low emission program with standards equivalent to those established under California law in accordance with the federal Clean Air Act. The legislation also establishes conditions of implementing such a program.

Statute Cite: 7-236 of the Tax-Property Code
Summary: Phases in the applicability of the property tax for refueling equipment or machinery used to dispense clean burning fuel into motor vehicles.

Statute Cite: 9-305 of the Tax-General Code
Summary: Alters the rate of the motor fuel tax for alternative fuels to 23.5 cents per gallon as opposed to 24.25 cents per gallon imposed on gasoline.

Statute Cite: 11-226 of the Tax-General Code
Summary: Exempts from the sales and use tax, machinery or equipment that is :

  • intended to convert a vehicle to use clean burning fuel
  • intended for use at a alternative fuel refueling station
  • for storing or dispensing clean burning fuel
  • for recharging an electric vehicle.

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MASSACHUSETTS

Statute Cite: 111.142K
Summary: Authorizes the adoption of California motor vehicle emission standards.

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MICHIGAN

Michigan does not have any legislation regarding alternative transportation fuels at this time. HB 4165 from the 1992 session established a motor vehicle emissions program.

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MINNESOTA

Statute Cite: 41A.09
Summary: Establishes an ethanol development loan fund. Ethanol producers are eligible to receive 20 cents per gallon produced with total payments not to exceed $3,000,000 in any fiscal year.

Statute Cite: 137.33
Summary: Established a small scale ethanol demonstration plant as an experiment with the University of Minnesota.

Statute Cite: 216B.168
Summary: Grants public utility companies permission to invest in alternative fuel vehicles and supporting equipment.

Statute Cite: 216C.40
Summary: Establishes a state policy to promote the development and market penetration of alternative fuel vehicles and develop additional markets for indigenous crop-based fuels.

Statute Cite: 239.791
Summary: Establishes an oxygenated fuels program. Until October 1, 1997 oxygenated fuels must be used in specific areas. After that date, all gasoline must contain at least 2.7 percent oxygen by weight.

Statute Cite: 273.1399
Summary: Ethanol development projects are provided a tax break.

Statute Cite: 296.01
Summary: After June 30, 1987, the amount of the credit for every gallon of ethanol blended gasoline is 20 cents.

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MISSISSIPPI

Statute Cite: 27-59-11
Summary: Describes various taxes imposed on distributors of compressed natural gas and liquefied natural gas used as motor fuels.

Statute Cite: 77-3-11
Summary: Partially deregulates LPG and CNG when used as a motor fuel.

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MISSOURI

Statute Cite: 142.027
Summary: Establishes the license tax rate for fuel ethanol as two cents per gallon less than the standard rate.

Statute Cite: 142.028
Summary: Creates the Missouri Qualified Fuel Ethanol Producer Incentive Fund to provide economic subsidies to Missouri qualified fuel ethanol producers. Producers are eligible for a grant in any calendar year equal to twenty cents per gallon for the first 12 1/2 million gallons of fuel ethanol, plus five cents per gallon for the next 12 1/2 million gallons in the same year.

Statute Cite: 142.366
Summary: Vehicles powered by LP gas, natural gas, or electricity are required to have a decal in lieu of taxes. The annual decal fee is $75 for vehicles weighing less than 18 thousand pounds.

Statute Cite: 414.400
Summary: Phases-in use of vehicles powered by alternative fuels.

Statute Cite: 414.403
Summary: Requires state agencies to develop and implement a vehicle fleet energy conservation plan.

Statute Cite: 414.410
Summary: State agencies with more than 15 vehicles shall acquire vehicles capable of using alternative fuels as follows:

  • 10 percent of the fleet by July 1, 1996
  • 30 percent by July 1, 1998
  • 50 percent by July 1, 2000

Statute Cite: 414.412
Summary: Makes allowances for meeting the requirements in 414.410.

Statute Cite: 414.420
Summary: Creates the Missouri Ethanol and Other Renewable Fuel Sources Commission to promote production and use of ethanol.

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MONTANA

Statute Cite: 15-30-164
Summary: An income tax credit of 50 percent is allowed for equipment and labor costs incurred to convert a motor vehicle to operate on alternative fuel. Maximum credits are defined.

Statute Cite: 15-70-522
Summary: Provides a tax incentive for production of gasohol until July 1, 2001. The incentive is equal to 30 cents per gallon for each gallon that is produced from 100 percent Montana product.

Statute Cite: 15-71-101
Summary: Requires an annual license tax fee for vehicles propelled by liquefied petroleum gas.

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NEBRASKA

Statute Cite: 58-239.01
Summary: Describes the powers and duties of the Ethanol Authority and Development Board. The authority may use up to ten million dollars to construct ethanol production and distribution facilities.

Statute Cite: 66-1225
Summary: Mandates oxygenated gasoline to be sold in ozone non attainment areas after January 1, 1992.

Statute Cite: Article 13, Sections 66-1301 through 1329
Summary: These sections make up the Ethanol Authority and Development Act. It develops a program to process, promote, market and distribute ethanol products. A production incentive cash fund is created and a temporary tax credit is awarded for ethanol production.

Statute Cite: 81-1632
Summary: Defines the school weatherization program which provides no-interest loans for alternative fuel busses and fueling facilities.

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NEVADA

Statute Cite: Chapter 486A, Sections .010 to .140
Summary: Defines alternative fuels and addresses the use of alternative fuels in fleet vehicles where a fleet is ten or more vehicles owned, leased or operated by the state or a local governing body.

Statute Cite: Chapter 486A of the Nevada Administrative Code, Sections .010 to .240
Summary: Adopts California Air Resources Board standards and established the following schedule for acquisition or conversion of fleet vehicles to clean fuels.

  • 1995--10 percent
  • 1996--15 percent
  • 1997--25 percent
  • 1998--50 percent
  • 1999--75 percent
  • 2000 and each year thereafter--90 percent.

The program also provides for a credit system for the acquisition of such vehicles in excess of the requirements.

Statute Cite: 366.190
Summary: Imposes a sales and use tax at the rate of 18 cents per gallon for compressed natural gas and liquid petroleum gas instead of the 22 cent per gallon rate imposed on other fuels.

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NEW HAMPSHIRE

Statute Cite: 1993 Session Laws, Chapter 298 (HB297)
Summary: Establishes a legislative committee to study the economic and environmental benefits of converting motor vehicles to propane gas.

Statute Cite: 1993 Session Laws, Chapter 214 ( SB 102)
Summary: Creates an alternative transportation fuels study committee to study and analyze all issues pertaining to the use of alternative transportation fuels. Such fuels include natural gas, propane, electricity, ethanol, methanol, reformulated gasoline, solar energy and hydrogen. The committee also will study incentives to promote their use and propose a state policy.

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NEW JERSEY

Statute Cite: 26:2C-8.6 through 8.14
Summary: This legislation addresses air pollution and establishes a low emission vehicle program, but it prohibits adoption of "California reformulated fuel". If the sale and use of reformulated gasoline is adopted as a result of the state's low emission vehicle program, the low emission program will expire in 180 days. This legislation also suggests further measures which may include a clean fuels program for fleets by January 1, 1995.

Statute Cite: 54:39-27
Summary: Deletes the tax break previously provided on gasohol blends.

Statute Cite: 54:39-27.1
Summary: LPG and CNG are taxed at half the rate applicable to other motor fuels.

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NEW MEXICO

Statute Cite: 13-1B-1 to 7, Article 1B
Summary: Creates the Alternative Fuel Conversion Act which mandates that 30 percent of new state vehicles operate on alternative fuels in 1993. The following year the percentage goes up to 60 percent and 100 percent the third year. This legislation also create a $5,000,000 revolving loan fund to finance vehicle conversions.

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NEW YORK

Statute Cite: 5-108 in the Energy Law Code
Summary: Effective August 4, 1993, the state energy office is directed to develop and implement an alternative fuel vehicle program.

Statute Cite: 19-0103 in the Environmental Conservation Law Code
Summary: New York adopted California standards for motor vehicles emissions and was sued by the Motor Vehicle Manufacturers Association as a result. This case has been appealed and is in federal court.

Statute Cite: 19-0319 in the Energy Conservation Law Code
Summary: Calls for a centrally fueled fleet program to be in place no later than May 15, 1994. This program must contain provisions requiring a certain percentage of all new covered fleet vehicles purchased in 1998 and thereafter, operate on clean alternative fuels.

Statute Cite: 1115 in the Tax Law Code
Summary: Exempts from the state sales and use tax the cost of converting a vehicle to use alternative fuels as well as the incremental cost of purchasing a new vehicle.

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NORTH CAROLINA

Statute Cite: Chapter 738 from the 1991 Session Laws (S.B. 788)
Summary: Requires a study of the use of clean fuels in state owned vehicles. It also authorizes a demonstration project using natural gas as the fuel for state-owned vehicles.

Statute Cite: 143-215.107(a)
Summary: Implements the oxygenated and reformulated gasoline requirements of the 1990 amendments to the Federal Clean Air Act.

Statute Cite: 105-130.27
Summary: Allows a 20 percent credit against corporate income tax for construction of a fuel ethanol distillery. The credit is 30 percent if the distillery is to be powered by an alternative fuel source.

Statute Cite: 105-151.6
Summary: Allows the same tax credit mentioned above for individuals.

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NORTH DAKOTA

Statute Cite: Chapter 16 from the 1993 Session Laws, Section 4
Summary: Appropriates $3,650,000 to provide production incentives to ethanol plants at a rate of 40 cents per gallon until June 30, 1995.

Statute Cite: 57-38-29
Summary: Provides an income tax credit for the cost of equipment used to convert a motor vehicle to operate on alternative fuel. This law is effective until December 31, 1997.

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OHIO

Statute Cite: 124.73
Summary: Requires the fleets of three state agencies to use ethanol blended fuel whenever possible. This legislation was to be a pilot program and was effective for two years (1990-1992).

Statute Cite: 5735.145
Summary: Provides a qualified fuel credit where qualified fuel is gasoline combined with ethanol to create a blend of not more than ten percent by volume. This credit was written to phase out by October 1, 1993, but was amended in 1993 to continue until September 30, 2000.

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OKLAHOMA

Statute Cite: 68-2357.22
Summary: Allows a one-time income tax credit for investments in qualified clean-burning motor fuel vehicle property.

Statute Cite: 74-130.1 through 130.10
Summary: This legislation makes up the Oklahoma Alternative Fuels Conversion Act. It creates an alternative fuels conversion fund which provides interest free loans to government agencies to convert vehicles to alternative fuels. The maximum amount allowed per vehicle is $5,000. The fund is reimbursed by a surcharge on alternative fuels sold in the state. This legislation also deregulates natural gas and methanol used as a motor fuel.

Statute Cite: 74-130.11 to .24
Summary: Creates the Alternative Fuels Technician Certification Act, designed to train technicians in alternative fuel technologies.

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OREGON

Statute Cite: 267.030
Summary: Requires the board to the transportation district to use alternative fuel vehicles after July 1, 1993 to the extent that it is economically and technologically possible.

Statute Cite: 283.327
Summary: After July 1, 1994, state agencies shall acquire only motor vehicles capable of using alternative fuel.

Statute Cite: 319.020, Sec. 13c
Summary: From January 1, 1992 to December 31, 1997, ethanol blended fuel is allowed a five cents per gallon tax exemption.

Statute Cite: 468A.420
Summary: Mandates the use of oxygenated fuels in carbon monoxide non attainment areas. Oxygenated fuel is defined to be at least 2.7 percent oxygen by weight.

Statute Cite: 469.195
Summary: Expands the business energy tax credit to include costs associated with acquiring or converting vehicles to alternative fuels. Not more than 2.5 million of the 40 million annually shall be allocated to alternative fuel fleet vehicles and facilities required to operate those vehicles.

Statute Cite: 469.878
Summary: Allows utility companies to financially assist customers in purchasing alternative fuel fleet vehicles or facilities necessary to operate alternative fuel vehicles. The utility may pay the customer the present value of the tax credit to which the customer would be entitled.

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PENNSYLVANIA

Statute Cite: 71--2201
Summary: Effective in 1984, all vehicles purchased by the state are to be converted to run on natural gas whenever economically feasible.

Statute Cite: 72--7204
Summary: Excludes electric and zero emission vehicles from the sales and use tax.

Statute Cite: 75--1919
Summary: Excludes electric and zero emission vehicles from the annual vehicle registration fee.

Statute Cite: 75--7201 through 7204
Summary: Establishes the Alternative Fuels Incentive Grant Fund to award grants to meet 60 percent of the expenses relative to converting vehicles to operate on alternative fuels. Every two years the grant funding amount is reduced ten percent until it reaches 20 percent of the expenses, where it will remain.

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RHODE ISLAND

Currently, there are no statutes dealing with alternative transportation fuels. In early 1994, Rhode Island joined other NESCAUM in adopting California emission requirements.

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SOUTH CAROLINA

Statute Cite: 1992 Statutes at Large, No. 449
Summary: Created an alternative transportation fuels study committee to conduct a comprehensive study of clean alternative fuels. The plan was to be submitted to the General Assembly by March 1, 1993 for review.

Statute Cite: 12-24-430
Summary: Imposes a ten cent per gallon tax on fuel ethanol blends effective until loss of revenue reaches twenty million dollars. This tax incentive is not effective after April 1, 1987.

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SOUTH DAKOTA

Statute Cite: 10-4-34
Summary: Exempts property used for storing and dispensing alternative fuels from ad valorem tax.

Statute Cite: 10-45-63
Summary: Exempts services and equipment used to convert a motor vehicle to alternative fuels from the sales and service tax.

Statute Cite: 10-47A-54.1
Summary: Provides an incentive payment for in-state production of ethyl alcohol equal to twenty cents per gallon.

Statute Cite: 10-47A-57
Summary: Alternative fuels are taxed at the lower rate of six cents per gallon.

Statute Cite: 37-2-27 to 30
Summary: Mandates labeling of any gasoline containing oxygenate.

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TENNESSEE

Tennessee does not have an alternative transportation fuel program at this time.

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TEXAS

Statute Cite: Revised Civil Statutes, Article 601b, Sec. 3.29
Summary: A state agency operating a fleet of more than 15 vehicles, may not purchase or lease after September 1, 1991, any motor vehicle unless that vehicle is capable of using CNG or other alternative fuels. Law enforcement and emergency vehicles are excluded.

By September 1, 1994, the number of alternative fuel fleet vehicles should be at least 30 percent and 50 percent by September 1, 1996.

Statute Cite: Revised Civil Statutes, Article 601b, Sec. 14.03
Summary: Grants the Office of Vehicle Fleet Maintenance the authority to take all steps necessary to encourage and facilitate the conversion of and use of motor vehicles capable of using alternative fuels, especially CNG.

Statute Cite: Revised Civil Statutes, Article 601d, Sec. 9C
Summary: Authorizes the issuance of bonds for alternative fuel projects. Such projects include vehicle conversion and the construction, acquisition, or maintenance of fueling stations supplying alternative fuels.

Statute Cite: Education Code, Sec. 21.174
Summary: After September 1, 1993, county and local school districts which operate more than 50 vehicles to transport children, must not purchase vehicles unless they are equipped to run on alternative fuels. 50 percent of the fleet should be run on alternative fuels by September 1, 1997 and 90 percent by September 1, 2001. School districts that achieve a fleet composition of 30 percent or more alternative fuel vehicles by September 1, 1994, have priority to receive funds available for the purpose of fleet conversion.

Statute Cite: Education Code, Sec. 21.182
Summary: As an alternative to purchasing school buses, a school board may contract with an outside party for this service provided the alternative fuel requirements are met.

Statute Cite: Health and Safety Code, Subchapter F, Sections 382.131 to .141
Summary: Creates the Alternative Fuels Program which requires mass transit authorities to ensure that vehicles operate on alternative fuels according to the following:

  • 9/1/94--at least 30 percent
  • 9/1/96--at least 50 percent
  • 9/1/98--at least 90 percent.

This legislation also puts the following conversion schedules in place for local government fleets and private fleets of more than 25 vehicles:

  • 9/1/98--30 percent
  • 9/1/00--50 percent
  • 9/1/02--90 percent.

Statute Cite: Natural Resources Code, Subchapter 1, Sec. 113.241 to .250
Summary: Establishes rules concerning alternative fuels research and education and creates an alternative fuel research and education fund to pay for activities relating to development of alternative fuels. A six member Alternative Fuels Council is authorized to coordinate a comprehensive program to be carried out by state agencies. The Alternative Fuels Conversion Fund is created to finance activities and make loans or grants to fund conversion or infrastructure projects to promote alternative fuels.

Statute Cite: Tax Code, Subchapter D, Sec. 153.302
Summary: Provides a tax exemption for certain LPG powered vehicles.

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UTAH

Statute Cite: 11-26-1
Summary: Cities and counties are not allowed to place franchise taxes on clean burning motor vehicle fuels.

Statute Cite: 19-2-105.3
Summary: Requires the Air Quality Board to implement the conversion of vehicle fleets to cleaner burning fuel if necessary to meet federal standards.

Statute Cite: 54-2-1
Summary: Deregulates the distribution of natural gas for use as a motor vehicle fuel.

Statute Cite: 59-7-110.7
Summary: Provides clean fuel vehicle tax incentives. For tax years 1992 to 1996, a 20 percent income tax credit is allowed for purchase of an alternative fuel vehicle up to a maximum of $500 per vehicle. Also allowed is 20 percent of the cost of converting an existing vehicle, up to a maximum of $400 per vehicle.

Statute Cite: 59-13-201
Summary: Exempts specific clean fuels from a majority of the state gasoline tax. The standard motor fuel tax is 19 cents per gallon and the alternative fuels tax is 3 cents per gallon.

Statute Cite: 63-53-9.5
Summary: Creates a revolving fund which provides loans to the private sector for purchase or conversion of vehicles to operate on clean burning fuels. The fund provides up to 3,000 dollars loans which must be repaid in seven years.

Statute Cite: 63-53-10
Summary: Creates a public sector loan fund to encourage use of alternative fuel vehicles. The terms are the same as the private sector loan fund.

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VERMONT

Statute Cite: Ch. 45, T.3, Sec. 2291
Summary: Calls for a plan to reduce vehicle fuel consumption and requires the agency of transportation together with the agency of natural resources to prepare a feasibility report by September 1, 1993, for a state vehicle alternative fuel pilot program.

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VIRGINIA

Statute Cite: Senate Joint Resolution 104, 1992
Summary: Establishes a joint subcommittee to study cost-effective measures which will enable Virginia to comply with the Clean Air Act.

Statute Cite: House Joint Resolution 45, 1992
Summary: Commends those involved with alternative fuel projects.

Statute Cite: House Joint Resolution 100, 1992
Summary: Re-establishes the joint subcommittee to continue studying the use of vehicles powered by clean transportation fuels.

Statute Cite: Article 16, 33.1-223.3 to .9
Summary: Creates the Virginia Alternative Fuels Revolving Fund to provide loans or grants to local governments and state agencies for conversion of vehicles from conventional fuels to alternative fuels.

Statute Cite: 46.2-749.3
Summary: Creates optional special license plates for clean fuel vehicles which cost an additional ten dollars.

Statute Cite: 46.2-1089.1
Summary: Requires conspicuous marking of school buses powered by alternative fuels.

Statute Cite: 46.2-1179.1
Summary: Specifies clean alternative fuel fleet standards for motor vehicles. Beginning with the 1998 model year a certain percentage of fleet vehicles in specified localities are required to operate on alternative fuels.

Statute Cite: 46.2-1802
Summary: Establishes a motor vehicle scrappage program by providing incentives for the retirement of older, dirtier, motor vehicles.

Statute Cite: 58.1-438.1
Summary: Provides an income tax credit of ten percent of the amount allowed as a deduction from federal income tax for purchase of clean fuel vehicles and certain refueling equipment.

Statute Cite: 58.1-2116
Summary: Effective January 1, 1994 to July 1, 1998, a ten cent per gallon tax is levied on clean special fuels instead of the standard 16 cent tax.

Statute Cite: 58.1-2127.1 to .7
Summary: Establishes the Alcohol Fuel Production Incentive Program Fund. This fund provided monthly grants from 1986 to 1992 to producers of ethyl alcohol.

Statute Cite: 58.1-2402
Summary: Effective January 1, 1996, there will be a 50 percent reduction in the motor vehicle sales and use tax imposed on vehicles that use CNG, LPG, hydrogen or electricity as a source of propulsion. The tax is reduced from three percent to one and a half percent.

Statute Cite: 58.1-3814
Summary: Exempts utility sales of products used as motor vehicle fuels from local utility taxes.

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WASHINGTON

Statute Cite: 43.19.570
Summary: Mandates the state to consider use of state vehicles to conduct field tests on alternative fuels. These fuels should include electric powered vehicles.

Statute Cite: 43.19.637
Summary: Establishes purchasing requirements for clean fuel vehicles. At least 30 percent of all new vehicles purchased through a state contract should operate on clean fuels. The percentage increases five percent per year.

Statute Cite: 46.16.015
Summary: Electric vehicles and vehicles using propane, CNG, or LPG are exempt from emission control inspections.

Statute Cite: 46.37.467
Summary: Requires certain alternative fueled vehicles to display a reflective placard.

Statute Cite: 70.94.011
Summary: Directs the Department of Ecology to contract with Western Washington University to research and develop alternative fuel and solar powered vehicles.

Statute Cite: 70.94.960
Summary: Allows grants to vo-tech institutes for programs to certify clean fuel mechanics.

Statute Cite: 80.28.280
Summary: Declares the development of compressed natural gas to be in the public interest.

Statute Cite: 82.36.225
Summary: Alcohol used as a motor fuel is exempt from the excise tax. In addition, a tax credit of 60 percent of the 17 cent per gallon motor fuel tax applies to gasohol.

Statute Cite: 82.38.075
Summary: Subjects natural gas and propane to an annual license fee in lieu of the special fuel tax.

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WEST VIRGINIA

Statute Cite: 5A-2A-2
Summary: After September 1, 1993, the state must acquire alternative fuel vehicles at the following rate:

  • 1995--20 percent
  • 1996--30 percent
  • 1997--50 percent

Statute Cite: 5A-2A-3
Summary: Regulates compressed natural gas.

Statute Cite: 5A-2A-4
Summary: Prohibits the state from providing any subsidies or incentives for the production of alternative fuels.

Statute Cite: 5B-2-2A
Summary: Directs the Office of Community and Industrial Development to study and promote the development of a coal-based liquids used to produce synthetic motor fuel.

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WISCONSIN

Statute Cite: 78.40
Summary: Imposes an excise tax on the use of alternate fuels with the following exceptions:

  • the fuel is used for the exclusive consumption of the U.S. government or its agencies.
  • special fuel used by any post exchange or other concessionaire upon any federal reservation
  • alternative fuels used to operate a motor vehicle for urban mass transport.

Statute Cite: 78.47
Summary: Requires alternative fuel dealers to hold a license.

Statute Cite: 78.82
Summary: No county, city, village, town or other political subdivision shall levy or collect any excise, license, privilege or occupational tax upon alternative fuels.

Statute Cite: 144.3716
Summary: Approves the use of reformulated gasoline in certain non-attainment areas.

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WYOMING

Statute Cite: 39-6-209
Summary: Until July 1, 2000, gasohol is taxed at four cents less per gallon than gasoline.

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