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Arizona Biodiesel Laws and Incentives


State Laws and Regulations

Biofuels Grants and Specifications

The Arizona Biofuels Conversion Program was established in the Department of Weights and Measures to encourage the use of biofuels in the state through the distribution of grants to promote development of fueling infrastructure. Grants will not exceed $30,000 or 40% of conversion costs, whichever is less. Biodiesel is defined as a fuel that is produced from nonpetroleum renewable resources as defined by the U.S. Environmental Protection Agency (EPA), and meets EPA registration requirements for fuels and fuel additives established in Section 211 of the Clean Air Act. E85 is defined as a fuel ethanol gasoline blend that meets ASTM specification D5798. The Arizona Department of Weights and Measures must adopt rules to establish and enforce federal standards and ASTM test methods for biofuels and biofuel blends, and blenders of biodiesel must follow the established reporting requirements. (Reference House Bill 2621, 2008, and Arizona Revised Statutes 41-1515.01, 41-2051 and 41-2083)

Clean Fuel Diesel for Heavy-Duty Equipment

Any state agency that contracts for the use of on- or off-road heavy-duty diesel equipment in Maricopa, Pima, and Pinal Counties must construct its Requests for Proposals in a manner that gives incentives to bidders that use: equipment retrofitted with diesel retrofit kits; newer clean diesel technologies and fuels; or biodiesel or other cleaner petroleum diesel alternatives. (Reference Executive Order No. 2007-03, 2007)

Joint Use of Government Refueling Infrastructure

To the extent practicable, a state agency or political subdivision that operates an alternative fueling station must permit the fueling of vehicles owned or operated by other state agencies or political subdivisions at the station. (Reference Arizona Revised Statutes 1-215 and 49-572)

Alternative Fuel Use and Acquisition Requirements

Local governments in defined areas of Maricopa, Pinal, Yavapai, and Pima counties with a population of more than 1,200,000 people are required to develop and implement a vehicle fleet plan for the purpose of encouraging and increasing the use of alternative and clean burning fuels in vehicles owned by a city or town. At least 75% of the local government fleet must operate on alternative and clean burning fuels. The fleet plans must include the use of alternative and clean burning fuels in the bus fleet or regional public transportation authorities operated by covered locales, and all newly purchased buses must use alternative or clean burning fuel. School districts in defined areas of these counties, with an average student population of more than 3,000 students are required to ensure that 50% of the portion of the fleet with a gross vehicle weight rating of at least 17,500 pounds operate on alternative or clean burning fuels, ultra low sulfur diesel, or meet specified emissions standards. Applications for waivers are available.

At least 75% of new light-duty vehicles purchased by the state fleet must be capable of operating on alternative or clean burning fuels. For state and federal vehicles that operate primarily in counties with a population of more than 1.2 million people, at least 90% of the total state and federal fleets must operate on alternative or clean burning fuels. Pertaining to the use of an alcohol-fueled vehicle, state agencies must demonstrate that the fuel for the vehicle is available within a 10-mile radius of the primary home base of that vehicle.

Vehicle acquisition credits may be earned as follows: 1) every 450 gallons of neat biodiesel (B100) or 2,250 gallons of a diesel fuel substitute is equivalent to one vehicle acquisition; 2) every 530 gallons of E85 is equivalent to one vehicle acquisition.

(Reference Arizona Revised Statutes 1-215, 9-500.04, 15-349, 41-803, 49-412, 49-541, 49-474.01, 49-571, and 49-573)

Alternative Fuel Vehicle (AFV) Parking

An individual driving a vehicle powered by an alternative fuel may park without penalty in parking areas that are designated for carpool operators. (Reference Arizona Revised Statutes 28-877)

Alternative Fuel Vehicle (AFV) Dealers Information Dissemination Requirement

New motor vehicle dealers are required to make information on AFVs and Arizona-based incentives for purchasing or leasing AFVs available to the public. (Reference Arizona Revised Statutes 28-4414)