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State and Federal Incentives and Laws

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Washington

Alternative Fuel Grant and Loan Program

The Energy Freedom Program (Program) is established within the Department of Community, Trade, and Economic Development (CTED), and administered by the Director of the CTED in consultation with other state agencies. The Program awards low-interest loans and grants through a competitive application process. Eligible projects include: research and development of new and renewable energy and biofuel sources, including biomass, solar, and wind power; renewable energy and alternative fuel infrastructure, facilities, and technologies; and research and development to develop markets for alternative fuel byproducts. Funding for the Program is provided by the Energy Freedom Loan Account and the Green Energy Incentive Account. The Program expires June 30, 2016.

Construction of new alternative fueling facilities as well as upgrades and expansion of existing fueling infrastructure offered to the public are eligible for funding of up to $50,000 per fueling infrastructure project. Funding for fueling infrastructure projects will only be awarded if the project is located within a 'green highway zone' in the state, which is a designated area within reasonable proximity of Washington Interstates 5, 90, and 82.

(Reference Revised Code of Washington 43.325)

Biofuels Retail Tax Exemption

Fuel delivery vehicles and machinery, equipment, and related services that are used for the retail sale or distribution of a biodiesel blend or E85 motor fuel are exempt from state retail fuel sales and use taxes until July 1, 2015. (Reference Revised Code of Washington 82.08.955 and 82.12.955)

Biofuels Tax Deduction

A tax deduction is available for the sale or distribution of biodiesel or E85 motor fuel. This deduction is available until July 1, 2015. (Reference Revised Code of Washington 82.04.4334)

Biofuels Production Tax Exemption

Qualifying buildings, equipment, and land used in the manufacturing of alcohol fuel, biodiesel, or biodiesel feedstocks are exempt from state and local property and leasehold taxes for a period of six years. Additionally, until July 1, 2009, a reduced Business and Occupation tax rate of 0.138% applies to individuals engaged in alcohol fuel, biodiesel fuel, or biodiesel feedstock manufacturing. (Reference Revised Code of Washington 82.04.260, 82.29A.135, and 84.36.635)

Renewable Fuels Standard

At least 2% of all diesel fuel sold in Washington must be biodiesel, beginning November 30, 2008, or when a determination is made by the Director of the Department of Ecology that feedstock grown in Washington State can satisfy a minimum 2% fuel blend requirement. The biodiesel requirement will increase to 5% once in-state feedstocks and oil-seed crushing capacity can meet a 3% requirement. Additionally, by December 1, 2008, at least 2% of the total gasoline sold in the state must be denatured ethanol. The ethanol requirement will be increased to 10% if the Director of the Department of Ecology determines that this would not jeopardize continued attainment of federal Clean Air Act standards. All state agencies with jurisdiction over renewable fuel infrastructure, specifically storage, blending, and dispensing equipment, are required to expedite related application and permitting processes. (Reference Revised Code of Washington 19.112.010, 19.112.110 through 19.112.180, and 43.21C)

Biofuels Standards Program

The Washington State Department of Agriculture Weights and Measures Biofuels Standards Program establishes standards for biofuels that protect producers, distributors, and purchasers of biofuels while encouraging and supporting the production and use of biofuels in the state. The Biofuels Standards Program promotes marketplace equity in commercial transactions through testing and inspecting commercial devices, price verification, monitoring fuel quality, investigating complaints, and public education.

Point of Contact

Rebecca McAferty
Biofuels Standards Coordinator
Washington State Department of Agriculture, Weights and Measures Program
Phone (360) 902-2035
rmcaferty@agr.wa.gov

E85 Definition

E85 motor fuel is defined as an alternative fuel that is a blend of ethanol and hydrocarbon, of which the ethanol portion is 75-85% denatured fuel ethanol by volume and complies with the most current ASTM specification D5798. (Reference Revised Code of Washington 19.112.010 and 82.04.4334)

Alternative Fuel Vehicle (AFV) Identification Requirement

Every automobile, truck, motorcycle, motor home, or off-road vehicle that is fueled by an alternative fuel must bear a reflective placard issued by the National Fire Protection Association indicating that the vehicle is powered by an alternative fuel. (Reference Revised Code of Washington 46.37.467)

Alternative Fuel Use Requirement

Effective June 1, 2015, all state and local government agencies are required to satisfy 100% of their fuel usage for operating publicly owned vehicles by using biofuels or electricity. To allow the motor vehicle fuel needs of state and local government to be satisfied by Washington-produced biofuels, the Department of General Administration and local governments may contract in advance and execute contracts with public or private producers and suppliers for the purchase of appropriate biofuels. (Reference Revised Code of Washington 43.19.648)

Clean Fuel Vehicle Purchasing Requirement

At least 30% of all new vehicles purchased through a state contract must be clean fuel vehicles; this percentage will increase at the rate of 5% each year. It is preferred that dedicated clean fuel vehicles be purchased. In the event that dedicated clean fuel vehicles are not available or would not meet operation requirements, conventionally powered vehicles may be converted to operate on clean fuel or dual-fuel use. (Reference Revised Code of Washington 43.19.637)

Biofuels Production Contracts

Conservation districts and public development authorities are authorized to enter into crop purchase contracts to produce, sell, and distribute biodiesel produced from Washington feedstocks, cellulosic ethanol, and cellulosic ethanol blended fuels. Additionally, municipal utilities and public utility districts are authorized to produce and distribute biodiesel, ethanol, and ethanol blended fuels, as well as enter into crop purchase contracts for the purpose of producing biodiesel produced from Washington feedstocks, cellulosic ethanol, and cellulosic ethanol blended fuels for use by the utilities and the public. (Reference Revised Code of Washington 35.21.465, 35.92.440, 54.04.190, 89.08.570)

Climate Change and Reduced Petroleum Dependence Initiative

Washington State has committed to reduce greenhouse gas emissions in the state to 1990 levels by 2020. To reach this goal, the state will do the following: work to ensure that cars sold in the state meet stringent emissions standards, beginning with Model Year 2009 vehicles; work with farmers, entrepreneurs, fuel distributors, and retailers to ensure that biofuels feedstocks are grown in Washington; ensure that refiners, blenders, and distributors of biofuels create jobs in the state; and strive to make it possible for the public to purchase fuel blends that reduce dependence on imported oil.

The state legislature recognizes that accelerated development and use of clean fuels and clean vehicle technologies will reduce Washington's dependence on fossil fuels. To reduce this dependence, build a clean energy economy, and reduce climate impacts, the state will develop policies and incentives that include: transitional incentives for development of in-state clean fuels and fuel feedstocks, including biodiesel and ethanol from plant waste; reduced fossil fuel consumption by state fleets; and the development of new technologies for displacing petroleum with electricity, such as plug-in hybrids.

(Reference Executive Order 07-02, 2007)

Fleet Action Plan - Seattle

The Clean Green Fleet Action Plan (PDF 444 KB) aims to increase the use of alternative fuels, reduce fleet fuel use, reduce vehicle emissions, and improve the fuel efficiency of the City of Seattle's (Seattle's) fleet. Seattle's long-term intent is to have a fleet that is 100% clean and green, through the use of clean fuels and vehicles that have the highest fuel efficiency and the lowest emissions and meet the needs of Seattle's operations. The specific measures called for in the plan include a 5% reduction in the fleet’s annual fuel use by 2005 as compared to 1999. Download Adobe Reader

Point of Contact

Mark H. Brady
Clean Cities Coordinator
Puget Sound Clean Cities Coalition
Phone (206) 689-4055
Fax (206) 343-7522
markb@pscleanair.org
http://pugetsoundcleancities.org/