Bank offers incentives for fuel-friendly vehicles
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By DANIEL BARLOW Southern Vermont Bureau - Published: January 20, 2006
BRATTLEBORO — A local financial institution has teamed up with an environmental group to launch a reduced interest loan program for people to buy fuel-efficient vehicles or convert old ones to run on biodiesel.
Brattleboro Savings & Loan and Brattleboro Climate Protection announced Thursday that the banking institution will offer lower rates to customers who want to buy cars that get more than 30 miles per gallon or wish to convert a vehicle to run on the environmentally-friendly mix of diesel oil and vegetable oil.
The program was the "right thing to do" for a bank that has become known for its progressive values, including offering a livable wage to its employees, according to Dan Yates, the executive vice-president. Brattleboro Savings & Loan is believed to be the first banking institution in the state to offer such a program, he said.
"A lot of our customers have become very interested in biodiesel because it's a relatively new fuel source that is considered friendly to the environment," Yates said. "We were happy to help people make their lives a little more green."
Biodiesel is a mix of traditional diesel fuel and a clean-burning energy source cultivated from vegetable oil, often taken as a byproduct from restaurants. Carbon monoxide emissions from biodisel-run cars can be nearly cut in half compared with typical diesel vehicles.
Under the program, customers looking to buy a used car that gets at least 30 miles per gallon or a new car that gets 35 miles per gallon will have 1 percent dropped off their loan percentage; loans for new cars that get 45 mpg will be reduced by 1.5 percent and similar low-rates are available to convert the engines of vehicles to run the biodiesel mix.
Brattleboro Climate Protection, a nonprofit group working with the town of Brattleboro to promote energy efficiency, had previously worked with the savings and loan and Chittenden Bank on a reduced loan program for "green" home and building improvements.
Paul Cameron, the executive director of the group, said the new auto loan program was a natural extension of the previous program. He suggested the reduced loans would be an efficient way for businesses or municipalities to offset the slightly higher cost of biodiesel if they convert their fleet of vehicles.
"This is one way they can make up that difference and be environmentally friendly as well," said Cameron.
Cameron said if all vehicles on the road received at least 40 miles per gallon, it would reduce energy needs by 3 million barrels of oil a day and save the country about $45 billion annually in energy savings.
Two gas stations in the region owned by Brattleboro's Fleming Oil began carrying B20 — a mix of 80 percent diesel fuel and 20 percent vegetable oil — several years ago at their pumps. On Thursday, the current cost of biodiesel was $2.69 per gallon, according to a cashier at the company's Canal Street in Brattleboro location.
Contact Daniel Barlow at daniel.barlow@rutlandherald.com.
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