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 Strategy

The Vermont Agency of Transportation (AOT) must develop a carbon reduction strategy. To do so, AOT must:

  • Identify and evaluate the effectiveness of policies and programs to reduce transportation sector greenhouse gas (GHG) emissions;
  • Work with stakeholders and the public to identify ways to reduce transportation sector GHG emissions; and,
  • Determine how federal funds will be used to address transportation resilience.
AOT must submit a report of their findings to the Vermont Legislature by November 15, 2023.

(Reference House Bill 479, 2023)

State Incentives

Fuel-Efficient Vehicle and Emission Reduction Incentives

The Vermont Agency of Transportation (VTrans) administers the High Fuel Efficiency Used-Vehicle Program, MileageSmart, which provides incentives of up to $5,000 to replace eligible vehicles with a pre-owned vehicle that has a U.S. Environmental Protection Agency (EPA) combined city/highway fuel economy of at least 40 miles per gallon (mpg).

VTrans also offers 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. For more information on the emissions repair program, visit the VTrans Statewide Vehicle Incentives Programs website. The emissions repair program must be operational by January 1, 2023.

(Reference Act 59, 2019 and Act 55, 2021)

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, natural gas, propane, and electricity. 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

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