2005 NC Alt Fuels Legislation

2005 NC Legislation Focuses on Transportation Fuel Diversity, Encourages Energy Independence
North Carolina will benefit by legislative actions undertaken by the General Assembly to support renewable fuels and advanced technology vehicles, reduce harmful transportation related pollutants and diversify fuel supplies. The U.S. transportation sector is 97% reliant on petroleum and transportation emissions are a significant contributor to the State’s air quality problems.

Section 19.5, a provision in North Carolina’s 2005 state budget, requires state fleets to achieve a 20% reduction or displacement of current petroleum use by 2010. This provision will spur the use of alternative fuels such as biodiesel and ethanol; non-petroleum based lubricants, hybrid electrics and other fuel efficient vehicles. All state agencies, universities and community colleges that operate a fleet of over 10 state owned motor vehicles are required to comply with the new requirement and report annually by September 1st to the State Energy Office, Department of Administration.

S1149- an Energy Credit Banking and Selling Program Fund Bill- enables the State Energy Office to generate funds for expanded use of alternative fuels and other projects approved by the Energy Policy Council through the sale of excess Energy Policy Act credits. The Energy Policy Act (EPAct) of 1992 requires the state to purchase alternative fuel vehicles. Credits earned by exceeding EPAct requirements may be sold to other U.S. entities and carry a monetary value between $750-$1,200. The state has earned excess credits through use of B20 (a blend of 20% biodiesel 80% petroleum diesel) by the NC Department of Transportation and E85(a blend of 85% ethanol, 15% gasoline) by the State Motor Fleet Management. This bill also expands and extends through 2011 tax credits for renewable energy property and equipment. Eligible technologies for the 35% tax credit include biodiesel and ethanol production, anaerobic biogas, wind and solar energy.

H 1336 bans methyl tertiary butyl ether (MTBE) in North Carolina by 2008. MTBE is a petroleum derivative added by refiners as an oxygenate for gasoline. It is a ground water containment and classified by the U.S. EPA as a probable carcinogen. Ethanol is a non toxic, renewable replacement for MTBE. North Carolina is the first state in the SE to ban MTBE. H1336 requires the Secretary of the NC Department of Environment and Natural Resources and the NC Commissioner of Agriculture to engage other states- Alabama, Gerogia, Kentucky, Mississippi, South Carolina, Tennessee and Virginia- to study the feasibility of a coordinated phase out.

Three other bills supported by the Triangle Clean Cities coalition and other alternative fuel advocates await action by the General Assembly. S1150/H1296 – Renewable Fuels Motor Fuels Tax Exemption- removes the state motor fuels tax, currently .27 per gallon, in proportion to the amount of biodiesel or ethanol blended into petroleum fuel. S1038/H1595- Mobile Source Emission Reduction Program- generates revenue to provide grants for alternative fuel related projects through a vehicle surcharge added to annual motor vehicle registration fees that’s based on a vehicle’s fuel economy and emissions ratings. S1015/H1766 provides a tax credit to NC businesses and individuals that purchase hybrid electric and alternative fuel vehicles.

See Link line under title for-
Bill look up at : http://www.ncga.state.nc.us/homePage.pl

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For more information :
Anne Tazewell
NC Solar Center
919.513.7831
anne_tazewell@ncsu.edu
www.ncsc.ncsu.edu

Hoke County Ethanol plant

See August 23rd article about Clean Burn Fuels LLC, a Chapel Hill based company, that plans to build an ethanol plant in Hoke county.

2005 US Energy Bill highlights

Vehicle Tax Credits

Buying hybrid electric vehicles and vehicles with cleaner burning diesel engines, known as advanced lean-burn engines, can earn you a tax credit of up to $3,400. The credit is largest for the vehicles that save the most fuel, but the credit will phase out shortly after an automaker sells 60,000 eligible cars. Tax credits of up to $4,000 are also available for alternative fuel cars. Businesses can earn the same tax credits, as well as credits of up to $12,000 for buying large hybrid vehicles, such as buses, and up to $32,000 for the purchase of large alternative fuel vehicles. And although fuel cell vehicles are not on the market yet, the act also establishes tax credits for these vehicles. See "Energy Bill Signed" on the DOE Web site and the Alliance to Save Energy press release.

For more information, see pages 1332 to 1433 of the full 1,724-page energy act (also referred to as the "conference report"), which is available as a "Featured Item" on the Web site of the Senate Committee on Energy and Natural Resources as a 2.6-MB PDF file. The Web site also features an 8-page summary by fuel and a 17-page summary by title. See the Senate Committee Web site.


Biofuel Requirement and Tax Incentives Included in Energy Act

The Energy Policy Act of 2005, which President Bush signed on August 8th, sets a new national minimum requirement for the use of biofuels, particularly ethanol. The new "Renewable Fuels Standard" requires that gasoline sold in the United States contain a total of 4 billion gallons of biofuels in 2006, increasing to 7.5 billion gallons in 2012. The standard provides greater flexibility for refiners by allowing renewable fuel credits and by eliminating the reformulated gasoline oxygenate standard.
The bill allows a credit of 2.5 gallons for every gallon of ethanol produced from wastes or cellulosic (woody) biomass sources. A recent report by DOE's Energy Information Administration analyzed a similar requirement and found it had a negligible impact on fuel prices. See the report.

Should you install a refueling station for alternative fuels at your home or business, you can earn a 30 percent tax credit (this sounds unlikely for the home, but Honda is now offering home natural gas fueling stations in California). The credit applies to fueling stations for ethanol, natural gas, compressed natural gas, liquefied petroleum gas, hydrogen, and biodiesel blends containing at least 20 percent biodiesel. The act also extended tax incentives for fuel distributors that blend biodiesel into their diesel fuel. See the press releases from the Renewable Fuels Association and the National Biodiesel Board (PDF 22 KB).

The act also requires federal alternative fuel fleets with flexible fuel vehicles (vehicles that can be fueled with gasoline or alternative fuels) to actually use alternative fuels, provided they are reasonably available and not unreasonably expensive. Currently, many federal fleets are buying the flexible fuel vehicles but fueling them only with gasoline or diesel fuel. See pages 682 to 1724 of the energy act (PDF 2.6 MB).

Thanks to:

J. David Dunagan, Project Officer
U.S. Department of Energy
Southeast Regional Office
david.dunagan@ee.doe.gov
http://www.eere.energy.gov/regions/southeast

For information provided in this post

Advanced Vehicle Research Center secures funding

North Carolina to Host New Automotive Test Center with Hydrogen Refueling Station and Fuel Cell Test Site

Northampton County, NC - Aug. 12 A combination of state and local investment has been secured to develop an independent automotive proving ground in Eastern North Carolina. Northampton county will provide the 630-acre site as part of an economic development initiative. Start-up funding was authorized by the North Carolina General Assembly in August of 2005. Initial financing and incentives are placed at a value of approximately $7.5 million.

As a non-profit, independent testing facility, the Center will be designed to provide a number of resources at a reasonable cost to users in the general automotive, motorsports, and alternative fuel development sectors.

Initially, the Center will include a 3.2 mile (5 km) high speed test track, offices and garages, dynamometers and engine test cells. All facilities may be rented or leased by users of the facility.

The Center will also feature a hydrogen refueling station and test facilities for fuel cell development.

Located less than a mile from Interstate 95, just a few miles south of the Virginia/North Carolina line, the AVRC will be easily accessible for clients in the Mid-Atlantic States.

Stage one of the project is planned to be completed in 3Q06 with the facilities mentioned above. Future development will include a road and handling course, additional labs and education center, wind tunnel, and other facilities requested by users and members of the Center.

Further information may be obtained at the AVRC web site, www.avrnc.com .

Renewable Fuels soon at NC Truck Stop

Thomas Petroleum is planning to supply a Statesville truckstop location on I-40 with 6 lanes of B20 biodiesel. Fuel is expected to be in place for sale in the next week or two. They are just waiting on the stickers to place on the pumps. Eventually this location will have ethanol ( E85 and E10) available as well.

Please help get the word out about this and feel free to get in touch with Jason Wager (JWager@centralina.org) or Chad Ertel certel@thomaspetroleum.com at Thomas Petroleum for more information.
We are seeking billboard ads for this location on I-40 (bio-diesel, renewable fuels, American made, etc.).

This is great news and we really need to help Thomas Petroleum and Renewable Fuels for America get the word out.


Homers Truck Plaza
386 Stamey Farm Rd
Statesville
NC
704-871-8008

This is growing concern about biodiesel prices. The federal blenders tax credit has done little to bring down cost for end users as evidenced by this chart from Va Clean Cities. I intend to create one for North Carolina and anticipate that it will reveal much the same.

Demand is simply outstripping supply. We need to get some production facilities up and running in NC. Hopefully that would help the tight supply and high price situation, although this is not any guarantee if demand is rising across the country. 80% of the biodiesl being produced in VA is being sold out of the state.

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