Biofuels Related Incentives
Ethanol Production Incentive
An income tax credit is available for qualifying ethanol production facilities equal to 30 cents per gallon of nameplate capacity between 500,000 and 15 million gallons per year. The facility must produce at least 75% of its nameplate capacity to be eligible to receive the tax credit each year, and the tax credit may be taken for up to eight years. Hawaii Revised Statutes 235-110.3.
Renewable Fuel Standard
At least 85% of Hawaii’s unleaded gasoline must be fuel blends containing at least 10% ethanol (E10). Hawaii Revised Statutes 486J-10.
Alternative Fuel Development Support
The state of Hawaii is responsible for facilitating the development of alternative fuels and supporting the attainment of a statewide alternative fuels standard. The alternative fuels standard will be as follows: alternative fuels will provide 10% of highway fuel use by 2010, 15% by 2015, 20% by 2020, and 30% by 2030. The Hawaii Clean Energy Initiative sets as a goal 70% clean energy (energy efficiency and renewable) by 2030. Hawaii Revised Statutes 196-42.
Alternative Fuels Promotion
The state of Hawaii signed the Hawaii Clean Energy Initiative with the U.S. Department of Energy to collaborate to produce 70% of the state’s energy needs from energy efficient and renewable sources by 2030.
Biofuels Production Land Use Allowance and Exemption
The state of Hawaii permits the use of lands originally zoned as agricultural land use districts to be used for renewable energy production, storage, and distribution, including the production of biofuels. Hawaii Revised Statutes 201N-14, 205-2 and 205-4.5.
Energy Feedstock Program
The Energy Feedstock Program was established to promote and support the production of energy feedstock development in Hawaii. Energy feedstock includes feedstock used to produce biofuels. The Chairperson of the Board of Agriculture consults and coordinates with the Director of Business, Economic Development and Tourism to establish milestones and objectives for the production of energy feedstock that is grown in the State. Hawaii Revised Statutes 141-9.
Biofuels Procurement Preference
State and county agency contracts for the purchase of diesel fuel are to be awarded with preference given to bids for biofuels or blends of biofuel and petroleum fuel. When purchasing fuel for use in diesel engines, the preference price is $0.05 per gallon of B100. For blends containing both biodiesel and petroleum-based diesel, the preference is applied only to the biodiesel portion of the blend. Hawaii Revised Statutes 103D-1012.
Underground Storage Tanks – Compatibility with Biofuel Blends
In June 2011, the EPA released guidance on compatibility of underground storage tank (UST) systems with biofuel blends. The guidance document summarizes the relevant federal regulations, and can be found here:
In response, The Steel Tank Institute (STI) has posted a general statement regarding fuel compatibility with steel tanks:
STI has also posted individual manufacturers’ statements of compatibility: