Evaluation of Biodiesel Fuel : Literature Review 2004

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Evaluation of Biodiesel Fuel : Literature Review 2004
Western Transportation Institute
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6.3.6. Hawaii Legislation effective as of January 1, 2002 reduced motor fuel taxes on alternative fuels as a proportion of diesel fuel taxes; biodiesel was charged at 50 percent of the diesel rate, with an additional 1 cent per gallon added ( 143 ).
6.4. Montana Montana Code Annotated (MCA) 15-70-301 essentially defines biodiesel as a B20 blend ( 144) .
Currently, according to MCA 15-70-370, the fuel tax is reduced by 15 percent for all biodiesel or ethanol fuel sold in the state ( 145 , 146) ,
... an incentive which is in effect four years after an ethanol plant begins operation in Montana ( 147 ). It should be noted that the B2 blend, which was being proposed in the legislation considered by the Montana House, would not be included in this tax reduction. Montana currently taxes diesel fuel at 27.75 cents per gallon ( 148 ). In addition to the temporary tax reduction on biodiesel and ethanol fuels, motor fuel tax revenues are currently reduced by production incentives to encourage the use of Montana agricultural products to produce alcohol that could be mixed into motor fuels ( 149) .

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