Biodiesel Laws and Incentives in Vermont

The list below contains summaries of all Vermont laws and incentives related to biodiesel.

Laws and Regulations

Carbon Reduction Procurement Policies

The Vermont Agency of Administration and the Climate Cabinet must revise state acquisition policies to ensure consideration of vendor business practices that promote clean energy and address climate change. Policies should consider, for example, the use of and support of plug-in electric and zero emission vehicles, including providing workplace charging stations. (Reference Executive Order 05-16, 2016)

State Incentives

Fuel-Efficient Vehicle and Emission Reduction Incentives

The Vermont Agency of Transportation (VTrans) will administer the High Fuel Efficiency Vehicle Incentive and Emissions Repair Program, which provides incentives to replace eligible vehicles with a used vehicle that has a U.S. Environmental Protection Agency (EPA) combined city/highway fuel economy of at least 40 miles per gallon (mpg) and vouchers of up to $2,500 for the repair of vehicles that failed the on-board diagnostic (OBD) systems inspection. Eligible vehicles for replacement include those that have failed the OBD systems inspection or those that are more than 15 years old and have an EPA combined city/highway fuel economy of less than 25 mpg. Eligible vehicles for a repair voucher are those that have failed the OBD systems inspection, require repairs that are not under warranty, and will be able to pass the inspection once the repairs are made.

The Vermont Department of Labor, in consultation with VTrans and other Vermont agencies, must evaluate whether to establish the Emissions Repair Program and submit a report to the legislature regarding how to fund the program on or before February 1, 2020.

(Reference House Bill 529, 2019)

Heavy-Duty Vehicle Emissions Reduction Grants

Through the Vermont Diesel Emissions Reduction Grants Program, the Vermont Department of Environmental Conservation (DEC) provides funding to local, state and regional agencies or departments, businesses, institutions, and nonprofit organizations for projects focused on reducing emissions from diesel engines and vehicles. Qualifying heavy-duty vehicles include buses and Class 5-8 trucks. Projects eligible for funding are as follows:

  • Verified emission control technologies;
  • Verified idle reduction technologies;
  • Verified aerodynamic technologies and low rolling resistance tires;
  • Certified engine replacements;
  • Alternative fuel conversions; and
  • Certified vehicle or equipment replacements.
All technologies and engines must be certified by the U.S. Environmental Protection Agency. Alternative fuels include, but are not limited to, biodiesel, natural gas, propane, electricity, and hydrogen. Cost share requirements vary by project. For more information, including application details, see the DEC Vermont Diesel Emissions Reduction Grants website.

More Laws and Incentives

To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.