Maryland Incentives and Laws

Last Updated April 2006

State Incentives

Biofuels Production Credits

Under the Renewable Fuels Promotion Act of 2005, ethanol and biodiesel producers may apply to the Renewable Fuels Incentive Board for ethanol and biodiesel production credits. To be eligible for the credits, the producer must first apply to the Board in order to receive certification as a producer.

Ethanol production credits are as follows: a) $0.20 per gallon of ethanol produced from small grains, and b) $0.05 per gallon of ethanol produced from other agricultural products. The Board may not certify ethanol production credits for more than a total of 15 million gallons per calendar year, of which at least 10 million gallons must be produced from small grains.

Biodiesel production credits are as follows: a) $0.20 per gallon of biodiesel produced from soybean oil (the soybean oil must be produced in a facility or through expanded capacity of a facility that began operating after December 31, 2004), and b) $0.05 per gallon for biodiesel produced from other feedstocks (including soybean oil produced in a facility that began operating on or before December 31, 2004. The Board may not certify biodiesel production credits for more than a total of five million gallons per calendar year, of which at least two million gallons must be from soybean oil produced in a facility as described in section a) above.

(Reference Maryland Statutes, Agriculture Code 10-1501 through 10-1507)

Hybrid Electric Vehicle (HEV) Exemption from Vehicle Testing Requirements

A qualified HEV is exempt from certain mandatory motor vehicle emissions test and inspection requirements if the vehicle obtains a rating from the U.S. Environmental Protection Agency of at least 50 miles per gallon during city fuel economy tests. A qualified HEV must meet the current vehicle exhaust standard set under the federal Tier 2 program gasoline-powered passenger cars, and can draw propulsion energy from both of the following on-board sources of stored energy: 1) gasoline or diesel fuel; and 2) a rechargeable energy storage system. This exemption expires September 30, 2009. (Reference Maryland Statutes, Transportation Code 13-815 and 23-206.3)

State Laws and Regulations

Biodiesel Use

At least 50 percent of state vehicles must use a minimum biodiesel blend of B5 beginning in fiscal year 2008. This requirement does not apply to any state vehicles for which mechanical failure due to the use of biodiesel will void the manufacturer's warranty for that vehicle. (Reference Senate Bill 54, 2006 and Maryland Statutes, State Finance and Procurement Code 14-407)

Biofuels Promotion

Among other duties, the Incentives for Agriculture Task Force is responsible for reviewing and evaluating the overall State tax structure as it impacts agriculture and the feasibility of modifications or alternatives to the current structure that would enhance the profitability of farming. This includes recommendations regarding the creation of tax credits or exemptions applicable to the production of ethanol, biodiesel, or other bio-energy alternatives. (Reference House Bill 2, 2006 and Maryland Statutes, State Finance and Procurement Code 5-408)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

Maryland established an alternative fuel vehicle (AFV) goal under the plan for 'Sustaining Maryland's Future with Clean Power, Green Buildings and Energy Efficiency.' The state shall revise fleet policy and purchasing guidelines to offer more flexibility in purchasing, where practical, low emission vehicles and AFVs for its fleet. The state shall ensure that an average of 50% of the fuel used by bi-fuel and flex-fuel vehicles shall be alternative fuel. The state shall help develop the refueling and maintenance infrastructure required to make using certain types of AFVs practical. The state may provide technical assistance and other incentives to use clean technology, where practical, in state transit fleets. (Reference Executive Order 01.01.2001.02)

Idle Reduction Requirement

A motor vehicle engine may not be allowed to operate for more than five consecutive minutes when the vehicle is not in motion, with the following exceptions: 1) traffic conditions or mechanical difficulties; 2) operation of heating, cooling or auxiliary equipment installed on the vehicle; 3) bring vehicle to manufacturer's recommended operating temperature; or 4) when it is necessary to accomplish the intended use of the vehicle. Violators may be subject to a fine up to $500. (Reference Maryland Statutes, Transportation Code 22-402 and 27-101)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled electric vehicle that has a maximum speed capability that exceeds 20 miles per hour (mph) but is less than 25 mph. A low-speed vehicle must be registered with the state Motor Vehicle Administration and comply with federal standards under 49 C.F.R 571.500. The State Highway Administration or any local authority may prohibit the use of low-speed vehicles on any controlled access highway in its jurisdiction. A person may not drive a low-speed vehicle on a highway for which the maximum speed limit exceeds 30 mph or, except in certain situations, across a highway for which the maximum speed limit exceeds 45 mph. (Reference Maryland Statutes, Transportation Code 11-130.1, 21-313, 21-1125, 22-101)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Maryland

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