Rhode Island Policy Data

Summary

Rhode Island like many other north eastern states has focused its alternative fuel attention largely on Ethanol and Biofuels. The state offers a tax credit on Biofuels.

The State Legislature has passed requirements for AFV acquision in its state agencies and school buses.

Vehicles

Current Estimated Fleet-based NGVs in Rhode Island

~141

Vehicles by Fuel Type

Stations

Current Public NGV Fueling Stations - 2

Private NGV Fueling Stations - 3

Fuel Taxes

Rhode Island Motor Fuel Taxation Website

CNG - None *

LNG - 32.0 ¢ / Gallon **

Gasoline - 32.0 ¢ / Gallon

Diesel - 32.0 ¢ / Gallon
The state also charges a 1.0 ¢ / Gallon regulatory fee for any fuel that is stored in an underground tank. Any fuel that is imported into RI via water is subject to an additional 5.0 ¢ / Gallon import tax.

* RI Statute specifically defines "Liquid" fuels
** Rhode Island offers a tax exemption for alternative fuels used by fleets consisting of 10 or more alternative fueled vehicles. - Reference

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

Rhode Island currently has no state legislated incentives for NGVs.

Laws & Regs

Legislative Session Dates:	January 7 - Early June
Legislature Website:	http://www.rilin.state.ri.us/

Clean School Bus Requirements

Full-size school buses equipped with an engine from Model Year (MY) 1993 or older may not be used to transport school children in Rhode Island. Additionally, provided that there is sufficient federal or state funding, by September 1, 2012, all full-size school buses transporting children in the state must be retrofitted with a closed crankcase ventilation system and either: 1) be equipped with a Level 1, Level 2, or Level 3 emissions control retrofit device the U.S. Environmental Protection Agency (EPA) or the California Air Resources Board (CARB) has verified; 2) be equipped with a MY 2007 or newer engine; or 3) achieve the same or greater reductions in diesel particulate matter as compared to an alternative fuel, such as compressed natural gas, and be verified by CARB/EPA to reduce diesel particulate matter emissions at a level equivalent to or greater than a MY 2007 or newer engine. (Reference Rhode Island General Laws 31-47.3-3)

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

To reduce fuel consumption and pollution emissions, and purchase vehicles that provide the best value on a lifecycle cost basis, the state must take the following actions:

At least 75% of state motor vehicle acquisitions must be AFVs, and the remaining 25% must be HEVs to the greatest extent possible;

All new light-duty trucks in the state fleet must achieve a minimum city fuel economy of 19 miles per gallon (mpg) and achieve at least a Low Emission Vehicle certification, and all new passenger vehicles in the state fleet must achieve a minimum city fuel economy of 23 mpg;

All state agencies must purchase the most economical, fuel-efficient, and lowest emissions vehicles appropriate to meet any needed requirements and discourage the purchase of sport utility vehicles;

All state agencies must purchase low rolling resistance tires with superior tread life for state vehicles when possible; and

All state vehicles must be maintained according to manufacturer specifications, including specified tire pressures and ratings.

The state must also prepare an annual report to the governor on compliance with these goals. (Reference Executive Order 05-13, 2005)

State Agency Coordination to Address Climate Change

The Rhode Island Climate Change Coordinating Council (Council) was established to coordinate efforts between state agencies to reduce greenhouse gas (GHG) emissions. With assistance from the Council, state agencies will develop programs to encourage state employees to reduce vehicle miles traveled and use public transportation when available. The Council will also work with municipalities to encourage sustainability; identify federal, state, and private funding opportunities that can be leveraged to reduce emissions in Rhode Island; and develop GHG emissions reduction strategies. The Council will submit a plan with suggested strategies for GHG emissions reduction activities to the governor no later than December 31, 2016. (Reference - SB2952 Bill History, and Rhode Island General Laws 42-6.2)

Proposed Bills

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2016 Session - Proposed Legislation

HB-7454

Long bill. Substituted on 6/8/16 includes as part of it the RI Clean Diesel Fund found in HB 8270. Amends the Diesel Emission Reduction Program to authorize Rhode Island Clean Diesel Fund to provide up to 50 percent of certain projects including: aerodynamic technologies, retrofit technologies, alternative fuel conversions, vehicle replacement, idle reduction, etc. Vehicle must generally be based in Rhode Island and operate in the state and replacement vehicles must be at least 10 years old and must be fully retired. This program is for heavy duty trucks with weight of 33,001 or greater.Reference - HB7454 Bill History, Reference - HB7454 Bill Text Status: passed House 6/15/16, passed Senate Calendar 6/18/16.

HB-8270

Amends the Diesel Emission Reduction Program to authorize Rhode Island Clean Diesel Fund to provide up to 50 percent of certain projects including: aerodynamic technologies, retrofit technologies, alternative fuel conversions, vehicle replacement, idle reduction, etc. Vehicle must generally be based in Rhode Island and operate in the state and replacement vehicles must be at least 10 years old and must be fully retired. This program is for heavy duty trucks with weight of 33,001 or greater. Reference - HB8270 Bill History, Reference - HB8270 Bill Text Status: substituted for SB 3057 6/18/16; enacted 6/24/16.

SB-3057

Companion to HB 8270. Amends the Diesel Emission Reduction Program to authorize Rhode Island Clean Diesel Fund to provide up to 50 percent of certain projects including: aerodynamic technologies, retrofit technologies, alternative fuel conversions, vehicle replacement, idle reduction, etc. Vehicle must generally be based in Rhode Island and operate in the state and replacement vehicles must be at least 10 years old and must be fully retired. This program is for heavy duty trucks with weight of 33,001 or greater. Reference - SB3057 Bill History, Reference - SB3057 Bill Text Status: passed Senate 6/14/16, to House Finance Committee 6/15/16; passed House with substitute, Senate concurs with House 6/18/2016.

2015 Session - Proposed Legislation

HB-5733

Tax credit for alternative fuel infrastructure worth 30%. The fueling infrastructure credit must be taken in 3 equal payments for commercial entities. If the station is sold to a governmental entity the person selling the equipment can claim the tax credit if they disclose its value. Effective upon passage and expires 1/1/2018. Reference - HB5733 Bill History, Reference - HB5733 Bill Text

HB-5797

Angel Investor bill to incentivize certain activities including the manufacturer of clean or alternatively fueled vehicles. Reference - HB5797 Bill History, Reference - HB5797 Bill Text

SB-158

Tax credit for installing alternative fuel infrastructure. Credit is worth 30% of the cost. Commercial station owners must take credit in 3 equal payments. Selling may claim credit in case of sale to tax exempt entity if they disclose value of the credit. Credit expires Jan. 1, 2018. Reference - SB158 Bill History, Reference - SB158 Bill Text

2014 Session - Proposed Legislation

HB-7825

Companion to SB 2202. Provides a 30% tax credit for cost of equipment used to store and dispense alternative fuels including CNG and LNG. Commercial facility operators must claim credit over 3 year period. There is not defined cap. Includes ability of person who sells equipment to tax exempt entities to claim the tax credit if they disclose the availability of the credit. Goes into effect upon passage and expires Jan. 1, 2018. Reference - HB7825 Bill History, Reference - HB7825 Bill Text Action: 2014-04-03 - Committee recommended measure be held for further study

SB-2202

Provides a 30% tax credit for cost of equipment used to store and dispense alternative fuels including CNG and LNG. Commercial facility operators must claim credit over 3 year period. There is not defined cap. Includes ability of person who sells equipment to tax exempt entities to claim the tax credit if they disclose the availability of the credit. Goes into effect upon passage and expires Jan. 1, 2018. Reference - SB2202 Bill History, Reference - SB2202 Bill Text Pending: Senate Finance Committee

SB-2952

Large climate change focused bill that includes among other things a call for state fleets to purchase alternative fuel vehicles and other types of vehicles that produce lower GHG emissions, and to encourage state employees to reduce their VMT and use more sustainable forms of transportation. Reference - SB2952 Bill History, Reference - SB2952 Bill Text Action: 2014-07-02 - Signed by Governor

2013 Session - Proposed Legislation

HB-5813

Provides 30% tax credit for cost of purchasing and installing alternative fuel infrastructure. CNG and LNG are specifically included and residential and commercial stations qualify. In case of commercial stations, seller may claim credit if stations sold to a tax exempt entity and disclosure of credit value is provided. No caps listed in the bill. Credits must be taken over 3 years for commercial stations. Effective upon passage through end of 2016. Reference - HB5813 Bill History, Reference - HB5813 Bill TextStatus: Introduced on February 28 2013 - 25% progress, died in chamber

SB-128

Provides tax credits for commercial or residential alternative fuel infrastructure including CNG and LNG. Credit is worth 30% of the cost of constructing and installing fueling equipment. Commercial stations must take credit over 3 year period. Like the federal 30C tax credit, it allows seller to claim credit in case of sales to tax exempt entities if disclose the credit allowed. Credit expires Jan. 1. 2017. Reference - SB128 Bill History, Reference - SB128 Bill Text Status: Introduced on January 24 2013 - 25% progress, died in chamber

This state was last examined and updated in October, 2016.