Commercial and Industrial

On April 8, 2011, the USDA clarified that the definition of renewable energy systems in the REAP program includes flexible fuel pumps, sometimes called “blender pumps” such as E85.   

State Incentives

USDA Rural Energy for America Program (REAP) - Grants

Incentive Type: Federal Grant Program

Eligible Efficiency Technologies: Yes; specific technologies not identified

Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Renewable Transportation Fuels, Geothermal Electric, Geothermal Heat Pumps, CHP/Cogeneration, Hydrogen, Direct-Use Geothermal, Anaerobic Digestion, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Renewable Fuels, Fuel Cells using Renewable Fuels, Microturbines

Applicable Sectors: Commercial, Schools, Local Government, State Government, Tribal Government, Rural Electric Cooperative, Agricultural, Public Power Entities

Amount: Varies

Max. Limit: 25% of project cost

Authority 1: 7 USC § 8106
Date Enacted: 5/13/2002
Effective Date: FY 2003

Authority 2: Food, Conservation, and Energy Act of 2008 (H.R. 2419)
Date Enacted: 5/22/2008

Website: http://www.usda.gov/farmbill  or
              See in DSIRE

Contact:  Laura Tucker
               Energy Manager
               USDA-Rural Development – Arkansas
               501-301-3284 
               Laura.tucker@ar.usda.gov

USDA Rural Energy for America Program (REAP) - Loan Guarantees

Incentive Type: Federal Loan Program

Eligible Efficiency Technologies: Yes; specific technologies not identified

Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Renewable Transportation Fuels, Geothermal Electric, Geothermal Heat Pumps, CHP/Cogeneration, Hydrogen, Direct-Use Geothermal, Anaerobic Digestion, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Renewable Fuels, Fuel Cells using Renewable Fuels, Microturbines

Applicable Sectors: Commercial, Agricultural

Amount: Varies

Max. Limit: $25 million per loan guarantee

Authority 1: 7 USC § 8106
Date Enacted: 5/13/2002
Effective Date: FY 2003

Authority 2: Food, Conservation, and Energy Act of 2008 (H.R. 2419)
Date Enacted: 5/22/2008

Website: http://www.usda.gov/farmbill  or
              See in DSIRE

Contact:  Laura Tucker
               Energy Manager
               USDA-Rural Development – Arkansas
               501-301-3284
               Laura.tucker@ar.usda.gov

Alternative Fuel Grants

The Arkansas Alternative Fuels Development Fund includes three types of grant incentives, including capital and operation incentives for alternative fuel producers and feedstock processors, production incentives for feedstock producers, and distribution incentives for alternative fuel distributors. Alternative fuel producers can receive $0.20 per gallon of alternative fuels produced, not to exceed $2 million. Feedstock processors can receive up to $3 million or 50% of the project cost, whichever is less, for the construction, modification, alteration, or retrofitting of feedstock processing facilities that are located and operated in Arkansas. Alternative fuel distributors can receive up to $300,000 or 50% of the project cost, whichever is less, to assist with the distribution and storage of alternative fuels or alternative fuel mixtures at distribution facilities that are located and operated in Arkansas. (Reference House Bill 2002, 2009, and Arkansas Code 15-13-101, 15-13-102, 15-13-301 to 15-13-305, and 19-6-809)

For more information click here.

State Laws and Regulations

Biofuels Use Requirement

The Arkansas Alternative Fuels Development Act establishes an annual goal of 50 million gallons of alternative fuels produced at production facilities in the state by October 6, 2008. Furthermore, by January 1, 2009, all diesel-powered motor vehicles, light trucks, and equipment owned or leased by a state agency must be operated using diesel fuel that contains a minimum of 2% biofuels by volume. Waivers to the 2% biofuels standards for state agency vehicles may be granted if the fuel is not available in certain geographic area or if the fuel is at least $0.15 cents more expensive per gallon then the petroleum equivalent. The Arkansas Bureau of Standards will work to ensure fuel quality standards. (Reference Senate Bill 237, 2007)

Alternative Fuels Tax

Excise taxes on alternative fuels are imposed on a gasoline gallon equivalent basis. The tax rate for each type of alternative fuel is based on the number of motor vehicles licensed in the state that use each fuel type. (Reference Arkansas Code 26-62-201)

Alternative Fuel Vehicle (AFV) Conversion

Any individual or company who converts an AFV to operate on an alternative fuel must report the conversion to the Director of the Department of Finance and Administration within 10 days of the conversion. An owner or operator who fails to report such a conversion may be subject to a penalty. (Reference Arkansas Code 26-62-214)

Source: DOE’s Alternative Fuels & Advanced Vehicles Data Center

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