Search Federal and State Laws and Incentives

Renewable Fuel Standard

At least 2% of all diesel fuel sold in Washington must be biodiesel or renewable diesel. This requirement will increase to 5% 180 days after the Washington State Department of Agriculture (WSDA) determines that in-state feedstocks and oil-seed crushing capacity can meet a 3% requirement. Renewable diesel is defined as a diesel fuel substitute produced from non-petroleum renewable sources, including vegetable oils and animal fats, meets the federal registration requirements for fuels and fuel additives and ASTM specification D975.

At least 2% of the total gasoline sold in the state must be denatured ethanol. The ethanol requirement increase if the Washington Department of Ecology determines that this increase will not jeopardize continued attainment of federal Clean Air Act standards, and WSDA determines that the state can economically support the production of higher ethanol blends.

All state agencies with jurisdiction over renewable fuel infrastructure, specifically storage, blending, and dispensing equipment, are required to expedite related application and permitting processes. The governor may suspend these requirements by Executive Order if the standard is temporarily technically or economically infeasible, or poses a significant risk to public safety.

(Reference Revised Code of Washington 19.112.010 and 19.112.110 through 19.112.180)

E85 Definition

E85 motor fuel is defined as an alternative fuel that is a blend of ethanol and hydrocarbon, of which the ethanol portion is 75-85% denatured fuel ethanol by volume and complies with the most current ASTM specification D5798. (Reference Revised Code of Washington 19.112.010)

Biodiesel Definition

Biodiesel fuel is defined as a mono alkyl ester of long chain fatty acids derived from vegetable oils or animal fats for use in compression-ignition engines and meets the requirements of the ASTM specification D6751 in effect as of January 1, 2003. (Reference Revised Code of Washington 19.112.010 and 43.19.643)

Biofuel Quality Program

The Washington State Department of Agriculture (WSDA) Biofuels Quality Program tests and assesses biofuel quality and quantity to resolve any quality issues before the product reaches the consumer. WSDA samples biofuel throughout the state, monitors and tracks the quality of biofuel, and works with producers and manufacturers to help supply the highest biofuel quality fuel available to consumers. The goal of the program is to create equity in the biofuel marketplace for refiners, suppliers, distributors, and retailers, and protect consumers. For more information, see the WSDA Biofuels Quality Program website. (Reference Revised Code of Washington 19.112.005 to 119.112.080)

Biodiesel Feedstock Tax Exemption

Waste vegetable oil, specifically cooking oil gathered from restaurants or commercial food processors, used by an individual to produce biodiesel for personal use is exempt from state sales and use taxes. The purchaser must provide the seller with an exemption certificate from the Washington Department of Revenue. (Reference Revised Code of Washington 82.08.0205 and 82.12.0205)

Plug-in Electric Vehicle (PEV) Charging Regulation Exemption

The Washington Utilities and Transportation Commission (Commission) may not regulate the rates, services, facilities, or practices of an entity that offers battery charging facilities to the public for hire. The exemption does not apply if the entity is otherwise subject to Commission jurisdiction as an electrical company, or if an entity's battery charging facilities and services are subsidized by any regulated service. A utility may offer battery charging facilities as a regulated service, subject to Commission approval. (Reference Revised Code of Washington 80.28.320)

Natural Gas Tax Exemptions

Natural gas used as a transportation fuel is exempt from public utility taxes. In addition, natural gas distribution businesses are eligible for an exemption for machinery and equipment used for the production of natural gas for transportation fuel. This exemption is available quarterly as a remittance. (Reference Revised Code of Washington 82.08.02565 and 82.16.130)

Utility Electric Vehicle Supply Equipment (EVSE) Return on Investment Incentive

Utilities may petition the Washington Utilities and Transportation Commission (UTC) for a rate of return on EVSE installed for the benefit of ratepayers. The UTC may approve an additional 2% to the standard rate of return if the utility installs EVSE on a fully regulated basis similar to other capital investments behind a customer's meter, and the expenditures do not increase ratepayer costs more than 0.25%. To be eligible for the incentive, utilities must install EVSE in locations where vehicles are likely to park longer than two hours. EVSE must be installed after July 1, 2015, and all claims are subject to an EVSE depreciation schedule. After the equipment has fully depreciated, the utility may gift the EVSE to the owner of the property. The UTC issued a report on the use and impacts of the incentive on December 1, 2017. (Reference Revised Code of Washington 80.28.360)