Vermont Biodiesel Laws and Incentives
State Incentives
Alternative Fuel and Advanced Vehicle Research and Development Tax Credit
Vermont businesses, that qualify as a high-tech business, involved exclusively in the design, development, and manufacture of alternative fuel vehicles, hybrid electric vehicles, and electric vehicles (EVs) or energy technology involving fuel sources other than fossil fuels, are eligible for up to three of the following tax credits: 1) payroll income tax credit; 2) qualified research and development income tax credit; 3) export tax incentive; 4) small business investment tax credit; and 5) high-tech growth tax credit. Certain limits and restrictions apply. (Reference Vermont Statutes Title 32, Chapter 151, Section 5930k)
State Laws and Regulations
Biodiesel Use Study
The Vermont Department of Buildings and General Services, Public Service Board, and Agency of Transportation must submit a report to the state legislature with recommendations for increasing the use of biodiesel in the state vehicle fleet. The report must include recommendations for using biodiesel blends of at least 5% (B5) in the transportation fleet by December 31, 2009, and at least 10% (B10) by 2012. (Reference Senate Bill 209, 2008)
Agricultural Economic Development Plan for Biofuels
The Vermont Department of Agriculture, Food and Markets will develop an economic initiative to provide business and technical assistance for research and planning to aid farmers in developing business enterprises that harvest biomass, convert biomass to energy, or produce biofuels such as biodiesel and ethanol; implementation assistance to leverage other sources of capital to assist farmers in purchasing equipment, technology, or other assistance to produce agricultural energy, harvest biomass, or convert biomass to energy; and business, technical and implementation assistance to non-farmers to develop and implement technology or development of facilities designed to produce agricultural energy, harvest biomass, convert biomass to energy, provided the non-farmer is working in conjunction with a Vermont farm. Additional conditions may apply. (Reference Vermont Statutes Title 6, Chapter 209, Section 4710)
Alternative Fuel Vehicle (AFV) Acquisition Requirements
The Commissioner of the Vermont Department of Buildings and General Services must consider AFVs when purchasing vehicles for state use, providing the alternative fuel is suitable for the vehicle's operation, is available in the region where the vehicle will be used, and is competitively priced with conventional fuels. (Reference Vermont Statutes Title 29, Chapter 49, Section 903)
State Agency Energy Plan Transportation Requirements
The Secretary of Administration is responsible for developing and overseeing the implementation of a State Government Agency Energy Plan. The plan must be modified as necessary and readopted by the Secretary on or before January 15 of each fifth year after 2005. The plan encourages the investigation of the environmental and economic feasibility of replacing the use of conventional diesel fuel with appropriate biodiesel blends. Additionally, all vehicles purchased for inclusion in the Vermont State Fleet must be among the most fuel-efficient and lowest emission vehicle models in each class. This includes a purchasing preference for appropriate advanced technology vehicles including hybrid electric vehicles. Furthermore, the Secretary, in coordination with the Vermont Agency of Transportation, Department of Buildings and General Services, Agency of Natural Resources, will expand education and tracking of vehicle engine anti-idling campaigns pertaining to state fleet vehicles and private sector vehicles operating on state-owned property. (Reference Vermont Statutes Title 3, Chapter 45, Section 2291)
