Fuel Retailers Opportunity
Government programs will soon go into effect to promote the distribution of biodiesel and to mandate its use. Alternative Energy Today LLC is now forming retail partnerships for our 2009 line of ASTM certified biodiesel. Call us now to reserve your biodiesel fuel for 2009 and to ensure your business benefits from the Biodiesel use mandates and renewable fuel incentives.
Renewable Fuel Retailer Incentive
Beginning January 1, 2009, a licensed retail
motor fuel dealer may receive a quarterly incentive for selling and
dispensing renewable fuels, including biodiesel. Qualified motor
fuel dealers are eligible for up to $0.065 for every gallon of
renewable fuel sold and up to $0.03 for every gallon of biodiesel
sold, if the required threshold percentage is met. The threshold
percentage for the incentive payment will increase on an annual
basis from 10% for renewable fuel and 2% for biodiesel in 2009 to
25% for each fuel type beginning on January 1, 2024. Funds will be
allocated from the Kansas Retail Dealer Incentive Fund.
Biodiesel is defined as a renewable, biodegradable, mono alkyl ester
combustible liquid fuel derived from vegetable oils or animal fats
that meets the specifications adopted by rules and regulations of
the Secretary of Agriculture pursuant to current law. The
specification must meet the ASTM D6751-07 specification for
biodiesel fuel (B100) blend stock for distillate fuels, but may be
more stringent regarding biodiesel quality and usability. Renewable
fuels are defined as combustible liquids derived from grain starch,
oil seed, animal fats, or other biomass; or produced from biogas
source, including any non-fossilized, decaying, organic matter which
is capable of powering spark ignition machinery. (Reference
Kansas Statutes 79-34,170 through 79-34, 176)
Alternative Fueling Infrastructure
Tax Credit
The state offers an income tax credit for alternative fueling stations placed in service after January 1, 2005, and before January 1, 2009. The tax credit, worth up to 40% of the total amount, may not exceed $160,000. For any fueling station placed in service after January 1, 2009, the credit amount is reduced and may not exceed $100,000. This tax credit must be deducted from the taxpayer's income tax liability for the taxable year in which the expenditures are made. In the event the credit is more than the taxpayer's tax liability for that year, the remaining credit may be carried over for up to three years after the year in which the expenditures were made. (Reference Kansas Statutes 79-32,201)
Regional
Biofuels Promotion Plan
Kansas has joined Indiana, Iowa, Michigan, Minnesota, Ohio, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform) (PDF 2 MB), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
- Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
- Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
- Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
- By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85. The state transportation, agriculture, and regulatory officials were required to report their corridor implementation plans to the Midwest Governors Association by April 1, 2008.
Biofuels
Use Requirement
State-owned diesel-powered vehicles and equipment must use a biodiesel blend that contains at least 2% biodiesel (B2), where available, as long as the incremental price of biodiesel is not more than $0.10 per gallon as compared to the price of diesel fuel. Further, individuals operating state-owned motor vehicles must purchase fuel blends containing at least 10% ethanol (E10), as long as these fuel blends are not more than $0.10 per gallon as compared to the price per gallon of regular gasoline fuel. (Reference Kansas Statutes 75-3744a)
Alternative Fuel Vehicle (AFV) Acquisition Requirements
Beginning in Model Year 2000 and each year thereafter, 75% of new light-duty motor vehicles acquired by the state fleet and its agencies, which are used primarily within a metropolitan statistical area or a consolidated metropolitan statistical area, are required to be AFVs. Light-duty motor vehicles include those with a gross vehicle weight rating of up to 8,500 pounds. (Reference Kansas Statutes 75-4616)