Rhode Island Biodiesel Laws and Incentives

State Incentives

Alternative Fuel Vehicle (AFV) Loans

The Rhode Island Office of Energy Resources offers loans for up to five years, with low administrative fees, to state agencies and municipal governments to cover the incremental cost of purchasing original equipment manufactured AFVs.

Biodiesel Tax Exemption

Organically produced biodiesel fuels are exempt from motor fuel tax. (Reference Rhode Island Code 31-36)

State Laws and Regulations

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

In order to reduce fuel consumption, improve fuel efficiency to meet at a minimum the federal Corporate Average Fuel Economy standards, reduce pollution emissions, and purchase vehicles that provide the best value on a lifecycle cost basis, the state is required to 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 a minimum certification of a Low Emission Vehicle, 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 low emission vehicles appropriate to meet any needed requirements and discourage the purchase of sport utility vehicles; 4) low rolling resistance tires with superior tread life should be purchased 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 is also required to prepare an annual report to the Governor on the state's compliance with these goals. (Reference Executive Order 05-13, 2005)