Ethanol Laws and Incentives in North Carolina
The list below contains summaries of all North Carolina laws and incentives related to ethanol.
State Incentives
Alternative Fuel Tax Exemption
The retail sale, use, storage, and consumption of alternative fuels is exempt from the state retail sales and use tax.
(Reference North Carolina General Statutes 105-164.13 and 105-449.130)
Alternative Fuel and Alternative Fuel Vehicle (AFV) Fund
The North Carolina State Energy Office administers the Energy Policy Act (EPAct) Credit Banking and Selling Program, which enables the state to generate funds from the sale of EPAct 1992 credits. The funds that EPAct credit sales generate are deposited into the Alternative Fuel Revolving Fund (Fund) for state agencies to offset the incremental costs of purchasing biodiesel blends of at least 20% (B20) or ethanol blends of at least 85% (E85), developing alternative fueling infrastructure, and purchasing AFVs and hybrid electric vehicles. Funds are distributed to state departments, institutions, and agencies in proportion to the number of EPAct credits generated by each. For the purposes of this program, alternative fuels include 100% biodiesel (B100), biodiesel blends of at least B20, ethanol blends of at least E85, compressed natural gas, propane, and electricity. The Fund also covers additional projects approved by the Energy Policy Council.
(Reference North Carolina General Statutes 143-58.4, 143-58.5, 143-341(8)i, and 136-28.13)
Bond Exemption for Small Biofuels Suppliers
Fuel blenders or suppliers of ethanol or biodiesel are not required to file a bond with the North Carolina Department of Revenue when the expected motor fuel tax liability is less than $2,000.
(Reference North Carolina General Statutes 105-449.60 and 105-449.72)
Ethanol Tax Exemption
Ethanol transferred between fuel processing facilities is exempt from state motor fuel excise tax if the fuel is owned by the same licensed supplier.
(Reference North Carolina General Statute 105-449.88)
Laws and Regulations
Alternative Fuel Use and Fuel-Efficient Vehicle Requirements
State-owned vehicle fleets must implement petroleum displacement plans to increase the use of alternative fuels and fuel-efficient vehicles. Reductions may be met by petroleum displaced through the use of biodiesel, ethanol, other alternative fuels, the use of hybrid electric vehicles, other fuel-efficient or low emission vehicles, or additional methods the North Carolina Division of Energy, Mineral and Land Resources approves.
(Reference Session Law 2013-265, Section 19.5(a)))
Alternative Fuel Vehicle (AFV) Acquisition Goal
North Carolina established a goal that at least 75% of new or replacement state government light-duty cars and trucks with a gross vehicle weight rating of 8,500 pounds or less must be AFVs or low emission vehicles.
(Reference North Carolina General Statutes 143-215.107C)
Ethanol Blend Labeling Requirements
Pumps that dispense ethanol-blended gasoline available for purchase must be labeled with the registered brand name and the volume percentage, or blend level, of the ethanol. The labels must be affixed to the front panel of the pump in a position that is clearly visible to the vehicle driver. Graphics requirements apply.
(Reference North Carolina Administrative Code Title 2, Chapter 42, Subchapter .0401; and North Carolina General Statutes 119-27.2)
Ethanol Blend Requirement
Suppliers that import gasoline for sale in North Carolina must offer fuel that is not pre-blended with fuel alcohol but that is suitable for future blending. Future contract provisions that restrict distributors or retailers from blending gasoline with fuel alcohol are void.
(Reference North Carolina General Statutes 75-90, 105-449.60)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.