Biodiesel Laws and Incentives in Federal
The list below contains summaries of all Federal laws and incentives related to biodiesel.
Incentives
Advanced Biofuel Feedstock Incentives
The U.S. Department of Agriculture (USDA) Biomass Crop Assistance Program (BCAP; Section 9010) provides financial assistance to landowners and operators that establish, produce, and deliver biomass feedstock crops for advanced biofuel production facilities. Qualified feedstock producers are eligible for a reimbursement of 50% of the cost of establishing a biomass feedstock crop, as well as annual payments for up to five years for herbaceous feedstocks and up to 15 years for woody feedstocks. In addition, BCAP provides qualified biomass feedstock crop producers matching payments for the collection, harvest, storage, and transportation of their crops to advanced biofuel production facilities for up to two years. The matching payments are $1 for each $1 per dry ton paid by a qualified advanced biofuel production facility, up to $20 per dry ton. This program’s funding is subject to congressional appropriations.
For more information, see the USDA Biomass Crop Assistance Program website.
(Reference Public Law 113-79 and 7 U.S. Code 8111)
Advanced Biofuel Production Grants and Loan Guarantees
The U.S. Department of Agriculture (USDA) Biorefinery Assistance Program (Section 9003) provides loan guarantees for the development, construction, and retrofitting of commercial-scale biorefineries that produce advanced biofuels. Grants for demonstration scale biorefineries are also available. Advanced biofuel is defined as fuel derived from renewable biomass other than corn kernel starch. Eligible applicants include, but are not limited to, individuals, state or local governments, farm cooperatives, national laboratories, institutions of higher education, and rural electric cooperatives. The maximum loan guarantee is $250 million and the maximum grant funding is 50% of project costs. For more information, including current funding application deadlines, see the USDA Biorefinery Assistance Program website.
(Reference 7 U.S. Code 8103 and Public Law 112-240)
Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/
Advanced Biofuel Production Payments
Through the U.S. Department of Agriculture (USDA) Bioenergy Program for Advanced Biofuels (Section 9005), eligible producers of advanced biofuels, or fuels derived from renewable biomass other than corn kernel starch, may receive payments to support expanded production of advanced biofuels. Payment amounts will depend on the quantity and duration of production by the eligible producer; the net nonrenewable energy content of the advanced biofuel, if sufficient data is available; the number of producers participating in the program; and the amount of funds available. No more than 5% of the funds will be made available to eligible producers with an annual refining capacity of more than 150 million gallons of advanced biofuel. This program is funded through fiscal year 2024 (verified December 2024), but is subject to congressional appropriations thereafter. For more information, see the USDA Advanced Biofuel Payment Program and contact the appropriate State Rural Development Office.
(Reference 7 U.S. Code 8105, Public Law 113-79, Public Law 112-240, and Public Law 118-22)
Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/
Advanced Energy Research Project Grants
The Advanced Research Projects Agency - Energy (ARPA-E) was established within the U.S. Department of Energy with the mission to fund projects that will develop transformational technologies that reduce the nation’s dependence on foreign energy imports; reduce U.S. energy related emissions, including greenhouse gases; improve energy efficiency across all sectors of the economy; and ensure that the United States maintains its leadership in developing and deploying advanced energy technologies. The ARPA-E focuses on various concepts in multiple program areas including, but not limited to, vehicle technologies, biomass energy, and energy storage. For more information, visit the ARPA-E website.
(Reference Public Law 110-69, Public Law 111-358, Public Law 115-246, Public Law 116-260, and 42 U.S. Code 16538)
Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov
Alternative Fuel Infrastructure Tax Credit
For alternative fuel vehicle (AFV) infrastructure placed in service prior to January 1, 2023, see the Pre-2023 Alternative Fuel Infrastructure Tax Credit entry.
Installations Beginning January 1, 2023
The Alternative Fuel Vehicle Refueling Property Credit is available for qualified AFV fueling property installed in qualified locations on or after January 1, 2023, and through December 31, 2032. A single item of 30C property is each charging port or fuel dispenser, as well as each energy storage property for electricity, hydrogen, natural gas, propane, E85, or biodiesel blends of at least 20% (B20+). Components and parts that are essential to the operation of the charging port or fuel dispenser, including labor costs for constructing and installing the property, are also eligible for the 30C credit. Businesses are eligible for a tax credit of:
- 6% of the depreciable costs, up to $100,000 per item; or,
- 30% of the depreciable costs, up to $100,000 per item, if the installation meets U.S. Department of Labor prevailing wage and apprenticeship requirements.
For more information, see the Alternative Fuel Vehicle Refueling Property Credit proposed rule.
Tax exempt entities, including state and local governments, may be eligible to receive this credit in the same amount as businesses, via IRS elective pay provisions. For elective pay eligibility requirements, please see the IRS Elective Pay and Transferability website.
Consumers who purchase qualified alternative fueling equipment for installation at their principal residence in qualified locations on or after January 1, 2023, and through December 31, 2032, may receive a tax credit of up to 30% of the cost, up to $1,000.
To be eligible, all qualified fueling equipment also must be installed in a population census tract that is a low-income community or not an urban area. To help determine if an installation location is in a qualified census tract, see the IRS Guidance on the Qualified Alternative Fuel Vehicle Refueling Property Credit and Argonne National Laboratory’s 30C Tax Credit Eligibility Locator tool and list of frequently asked questions.
Additional requirements may apply. For further details, see the IRS Inflation Reduction Act of 2022 website and IRS Form 8911, which is available on the IRS Forms and Publications website. Additional location eligibility information is available in the IRS Guidance on Satisfying the Geographical Requirements of the Section 30C Alternative Fuel Vehicle Refueling Property Credit. For more information, including frequently asked questions and an eligibility locator map, see the Argonne National Laboratory Refueling Infrastructure Tax Credit website.
(Reference 26 U.S. Code 30C, 30D, 38, and 6417 and Public Law 117-169)
Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/
Alternative Fuel Vehicle (AFV) Research and Development Grants
The U.S. Department of Energy (DOE) provides grants of up to $200,000 for the research and development of commercial innovations related to electric vehicle (EV) charging infrastructure, EV batteries, and biodiesel, hydrogen and fuel cell vehicle technologies. Eligible applicants include domestic small businesses. Additional terms and conditions apply. For more information, see the DOE Small Business Innovation Research and Small Business Technology Transfer website.
(Reference Public Law 95-91 and 15 U.S. Code 638)
Biodiesel Education Grants
Competitive grants are available through the Biodiesel Fuel Education Program (Section 9006) to educate governmental and private entities that operate vehicle fleets, the public, and other interested entities about the benefits of biodiesel use. Eligible applicants are non-profit organizations or institutes of higher education that have demonstrated knowledge of biodiesel fuel production, use, or distribution; and have demonstrated the ability to conduct educational and technical support programs. This program’s funding is subject to congressional appropriations. (Reference Public Laws 113-79 and 112-240, and 7 U.S. Code 8106)
Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/
Biodiesel Income Tax Credit
NOTE: This incentive was originally set to expire on December 31, 2022, but has been extended through December 31, 2024, by Public Law 117-169.
A taxpayer that delivers pure, unblended biodiesel (B100) into the tank of a vehicle or uses B100 as an on-road fuel in their trade or business may be eligible for an incentive in the amount of $1.00 per gallon of biodiesel, agri-biodiesel, or renewable diesel. If the biodiesel was sold at retail, only the person that sold the fuel and placed it into the tank of the vehicle is eligible for the tax credit. The incentive is allowed as a credit against the taxpayer’s income tax liability. Claims must include a copy of the certificate from the registered biodiesel producer or importer that: identifies the product; specifies the product’s biodiesel, agri-biodiesel, and/or renewable diesel content; confirms that the product is properly registered as a fuel with the U.S. Environmental Protection Agency (EPA); and confirms that the product meets the requirements of ASTM Standard D6751. Renewable diesel is defined as liquid fuel derived from biomass that meets EPA’s fuel registration requirements and ASTM Standards D975 or D396; the definition of renewable diesel does not include any fuel derived from co-processing biomass with a feedstock that is not biomass.
For more information about claiming the credit, see Internal Revenue Service (IRS) Forms 637 and 8864, which are available on the IRS Forms and Publications website. For information about registering with the EPA, see the EPA Fuels Registration, Reporting, and Compliance Help website.
(Reference 26 U.S. Code 40A and Public Law 117-169)
Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/
Biodiesel Mixture Excise Tax Credit
NOTE: This incentive was originally set to expire on December 31, 2022, but has been extended through December 31, 2024, by Public Law 117-169.
A biodiesel blender that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $1.00 per gallon of pure biodiesel, agri-biodiesel, or renewable diesel blended with petroleum diesel to produce a mixture containing at least 0.1% diesel fuel. Only blenders that have produced and sold or used the qualified biodiesel mixture as a fuel in their trade or business are eligible for the tax credit. The incentive must first be taken as a credit against the blender’s fuel tax liability; any excess over this tax liability may be claimed as a direct payment from the IRS. Claims must include a copy of the certificate from the registered biodiesel producer or importer that: identifies the product; specifies the product’s biodiesel, agri-biodiesel, and/or renewable diesel content; confirms that the product is properly registered as a fuel with the U.S. Environmental Protection Agency; and confirms that the product meets the requirements of ASTM Standard D6751. Renewable diesel is defined as liquid fuel derived from biomass that meets EPA’s fuel registration requirements and ASTM Standards D975 or D396; the definition of renewable diesel does not include any fuel derived from co-processing biomass with a feedstock that is not biomass.
For more information about claiming the credit, see IRS Form 4136, which is available on the IRS Forms and Publications website.
(Reference 26 U.S. Code 6426 and Public Law 117-169)
Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.gov/
Biodiesel and Ethanol Infrastructure Grants
Competitive cost-share grants are available through the U.S. Department of Agriculture’s Higher Blends Infrastructure Incentive Program (HBIIP) for the installation, retrofitting, or otherwise upgrading of fueling equipment and infrastructure required to dispense ethanol blends greater than 10% or biodiesel blends greater than 5%.
Eligible applicants for the ethanol fueling equipment and infrastructure are vehicle fueling facilities, including fueling stations, convenience stores, hypermarket fueling stations, fleet facilities, and similar entities with capital investments. Eligible applicants for biodiesel fueling equipment and infrastructure are fuel/biodiesel distribution facilities, including terminal operations, depots, midstream partners, and similarly equivalent operations. An applicant may request assistance for more than one location, with one applicant per company.Approximately 40% of funds will be made available to retail owners with 10 or fewer locations for activities related to upgrading or installing equipment to make a transportation fueling facilities fully compatible to dispense or sell higher blends of ethanol and/or biodiesel.Eligible new facilities may receive up to 50% of total eligible project costs, or $3 million, whichever is less. Existing fueling stations that require upgraded, retrofitted, or additional underground storage tanks may request assistance of up to 25% of total eligible project costs or up to $1,250,000, whichever is less.Additional terms and conditions apply. For more information, including funding application deadlines, see the HBIIP website.
Point of Contact
Anthony Crooks
U.S. Department of Agriculture
Phone: (202) 205-9322
energyprograms@usda.gov
Biofuel Feedstock Research and Development Grants
The U.S. Department of Energy’s (DOE) Industrial Efficiency and Decarbonization Office (IEDO) provides funding for the research, development, and demonstration of technologies that decrease greenhouse gas emissions in emissions intensive industries, including projects that pursue advance process technologies for converting feedstocks to biofuels. Eligible applicants include universities, businesses, and nonprofit organizations. Additional terms and conditions apply. For more information, see the IEDO Energy and Emissions Intensive Industries website.
(Reference Public Law 116-260 and 42 U.S. Code 17113)
Biofuel Research and Development Grants
The U.S. Department of Energy (DOE) provides funding for research and development to convert algae into biofuels and sustainable aviation fuel through the Mixed Algae Conversion Research Opportunity (MACRO). Projects must demonstrate that generated biofuels at commercial scale have the potential of at least 50% greenhouse gas reductions compared to conventional fuels. Individual awards of up to $1.5 million with a cost share of at least 20% are available. Eligible applicants include universities; businesses; nonprofit organizations; and state, local, and tribal governments. Additional terms and conditions apply. For more information, see the DOE MACRO website.
(Reference Public Law 109-58 and 42 U.S. Code 16231 and 16232)
Biomass Research and Development Initiative
The U.S. Department of Agriculture’s National Institute of Food and Agriculture, in conjunction with U.S. Department of Energy’s Office of Biomass Programs, provides grant funding for projects addressing research, development, and demonstration of biofuels and bio-based products and the methods, practices, and technologies for their production, under the Biomass Research and Development Initiative (Section 9008). The competitive award process focuses on three main technical areas: feedstock development; biofuels and bio-based products development; and biofuels development analysis. Eligible applicants are institutions of higher learning, national laboratories, federal research agencies, private sector entities, and non-profit organizations. The non-federal share of the total project cost must be at least 20% for research and development projects and 50% for demonstration projects. Renewable biomass is defined as materials, pre-commercial thinnings, or invasive species on National Forest System land that qualify as by-products of preventative treatments, are harvested in accordance with applicable laws, and would not otherwise be used for higher-value products, as well as naturally reoccurring organic matter on non-federal or non-tribal lands, including renewable plant material, feed grains, other plants and trees, algae, and vegetable and animal waste material and by-products. This program’s funding is subject to congressional appropriations. For more information, see the Biomass Research & Development website. (Reference Public Law 113-79 and 7 U.S. Code 8108)
Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
https://www.rd.usda.gov/
Clean Fuel Production Credit
Beginning January 1, 2025, the Treasury Department will offer tax credits for the production and sale of low emission transportation fuels, including sustainable aviation fuel (SAF). The tax credit amount is $0.20 per gallon for non-aviation fuel and $0.35 per gallon for SAF. For facilities that satisfy the prevailing wage and apprenticeship requirements, the credit amount is $1.00 per gallon for non-aviation fuel and $1.75 per gallon for SAF. For any taxable year, the Clean Fuel Production Credit is equal to the applicable credit amount per gallon multiplied by the fuel’s carbon dioxide emissions factor. Emissions factors will be published annually by the Secretary of the Treasury. Beginning January 1, 2025, tax credits will be adjusted for inflation. The Internal Revenue Service (IRS) released guidance on registration requirements to claim the credit in May 2024. Further guidance is forthcoming. For more information, including guidance updates, see the IRS Credits and Deductions under the Inflation Reduction Act website.
(Reference Public Law 117-169 and 26 U.S. Code 45Z)
Clean Fuels and Products Demonstration Projects
The U.S. Department of Energy’s Energy Earthshots Initiative Clean Fuels & Products Shot aims to decarbonize the fuel and chemical industry through alternative sources of carbon to advance cost-effective technologies with the goal of reducing industry greenhouse gas emissions 85% by 2035. Clean Fuels & Products Shot focuses on various projects to mobilize biomass and waste feedstock, efficiently capture and convert carbon dioxide, develop carbon-efficient conversion processes, demonstrate integrated processes, and understand sustainability implications. For more information, visit the Clean Fuels & Products Shot website.
Community Waste-to-Biofuel Development Grants
The U.S. Department of Energy (DOE) provides grants of up to $10 million for the development of strategies for communities to sustainably manage and recover clean energy sources from waste streams for transportation end-uses. Eligible projects include feasibility studies, design work, and experimental validation for renewable natural gas, hydrogen, or other waste-derived fuel. Applicants are encouraged to include currently available vehicles in their plans. Eligible prime applicants include non-profit organizations; transit authorities; and state, local, and tribal governments. For more information, see the DOE WASTE website.
(Reference Public Law 109-58 and 42 U.S. Codes 16231, 16232, 16191, 16061-16093)
Congestion Mitigation and Air Quality (CMAQ) Improvement Program
The CMAQ Program provides funding to state departments of transportation (DOTs), local governments, and transit agencies for projects and programs that help meet the requirements of the Clean Air Act by reducing mobile source emissions and regional congestion on transportation networks. Eligible activities include transit improvements, travel demand management strategies, congestion relief efforts (such as high occupancy vehicle lanes), diesel retrofit projects, alternative fuel vehicles and infrastructure, and medium- or heavy-duty zero emission vehicles and related charging equipment. Projects supported with CMAQ funds must demonstrate emissions reductions, be located in or benefit a U.S. Environmental Protection Agency-designated nonattainment or maintenance area, and be a transportation project. For more information, see the Bipartisan Infrastructure Law CMAQ fact sheet and CMAQ Improvement Program website.
(Reference Public Law 117-58, Public Law 112-141, and 23 U.S. Code 149 and 151)
Environmental Justice Community Technical Assistance Program
The U.S. Department of Energy (DOE) Communities Local Energy Action Program (LEAP) Pilot facilitates sustained, community-wide economic and environmental benefits through DOE’s clean energy deployment work. This technical assistance opportunity is specifically open to low-income, energy-burdened communities that are also experiencing either direct environmental justice impacts, or direct economic impacts from a shift away from historical reliance on fossil fuels. DOE will provide technical assistance services to support up to 36 communities to develop their own community-driven clean energy transition approach. For more information, visit the DOE Communities LEAP website.
Integrated Biorefineries Grant
The Scale-Up+ Program provides grants for biorefinery development and feedstocks improvement projects that reduce the cost of biofuel production technologies and scale-up production systems. The Scale-Up+ Program will also fund projects that reduce carbon emissions in first generation corn ethanol production facilities. Eligible applicants include individuals, for-profit entities, educational institutions, nonprofits, and foreign entities. For more information, see the Funding Opportunity Announcement.
Low and Zero Emission Public Transportation Funding
The Department of Transportation’s Federal Transit Administration (FTA) offers grants through the Low or No Emission Grant (Low No) Program to local and state government entities for the purchase or lease of low or zero emission transit buses, in addition to the acquisition, construction, or lease of supporting facilities. Additionally, funding may be requested for workforce development training or training at the National Transit Institute. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle. Applicants with projects that include zero emission vehicles (ZEVs) are required to submit a ZEV fleet transition plan. The plan must include:
- A long-term fleet management plan that includes a strategy for how Low No Program funds will be used for resources and acquisitions;
- A discussion on the availability of current and future resources for ZEV transition and implementation;
- An assessment of policy and legislation impacting relevant technologies;
- An evaluation of existing and future facilities;
- A description the applicant’s relationship with the utility or alternative fuel provider; and
- An assessment on how ZEVs will impact the applicant’s workforce.
For more information, including details about the current round of funding, see the FTA Low No Program website.
(Reference 49 U.S. Code 5312 and 5339 and Public Law 117-58)
Pre-2023 Alternative Fuel Infrastructure Tax Credit
Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2022, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Permitting and inspection fees are not included in covered expenses. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years.
For more information about claiming the credit, see IRS Form 8911, which is available on the IRS Forms and Publications website.
For information on the Alternative Fuel Infrastructure Tax Credit for installations beginning January 1, 2023, see the Alternative Fuel Infrastructure Tax Credit.
Public Transportation Research, Demonstration, and Deployment Funding
The U.S. Department of Transportation’s Federal Transit Administration administers the Public Transportation Innovation Program. Financial assistance is available to local, state, and federal government entities; public transportation providers; private and non-profit organizations; and higher education institutions for research, demonstration, and deployment projects involving low or zero emission public transportation vehicles. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle.
For more information, see the Bipartisan Infrastructure Law Public Transportation Innovation fact sheet.
(Reference 49 U.S. Code 5312 and 5339, Public Law 114-94, Public Law 113-159, and Public Law 117-58)
Resilient Surface Transportation Grants
The U.S. Department of Transportation Federal Highway Administration (FHWA) established the Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation (PROTECT) Discretionary Grant Program to provide funding for projects that improve the resilience of the surface transportation system through support of planning activities, resilience improvements, community resilience and evacuation routes, and at-risk costal infrastructure. Eligible projects include those that demonstrate greenhouse gas reductions in the transportation sector through the transition to clean vehicles and fuels, including electrification.
For more information, including funding availability and timelines, see the FHWA PROTECT Program website.
(Reference Public Law 117-58 and 23 U.S. Code 176)
State Energy Program (SEP) Funding
The SEP provides grants to states to assist in designing, developing, and implementing renewable energy and energy efficiency programs, including programs to help reduce carbon emissions in the transportation sector by 2050 and accelerate the use of alternative transportation fuels for, and the electrification of, state government vehicles, fleet vehicles, taxis and ridesharing services, mass transit, school buses, ferries, and privately owned passenger and medium- and heavy-duty vehicles. Each state’s energy office receives SEP funding and manages all SEP-funded projects. States may also receive project funding from technology programs in the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) for SEP Special Projects. EERE distributes the funding through an annual competitive solicitation to state energy offices. SEP is authorized through fiscal year 2026.
For more information, see the SEP website.
(Reference Public Law 117-58 and 42 U.S. Code 6322 through 6325)
Value-Added Producer Grants (VAPG)
Value-Added Producer Grants (VAPG) are available to help independent agricultural producers enter into or expand value-added activities, including innovative uses of agricultural projects, such as biofuels production. Eligible applicants include independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures. Participants may apply for either a planning grant or a working capital grant, but not both. In addition, no more than 10% of program funds may be awarded to majority-controlled producer-based business ventures. Grants are awarded to projects determined to be economically viable and sustainable. For more information about grant eligibility, see the VAPG website and contact the appropriate State Rural Development Office. This program’s funding is subject to congressional appropriations. (Reference Public Law 113-79, Section 6203; and 7 U.S. Code 1632a)
Laws and Regulations
Alternative Fuel Definition
The following fuels are defined as alternative fuels by the Energy Policy Act (EPAct) of 1992: pure methanol, ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline; natural gas and liquid fuels domestically produced from natural gas; propane; coal-derived liquid fuels; hydrogen; electricity; pure biodiesel (B100); fuels, other than alcohol, derived from biological materials; and P-Series fuels. In addition, the U.S. Department of Energy may designate other fuels as alternative fuels, provided that the fuel is substantially non-petroleum, yields substantial energy security benefits, and offers substantial environmental benefits. For more information, see the EPAct website. (Reference 42 U.S. Code 13211)
Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov
Alternative Fuel Labeling Requirements
Retailers offering alternative fuel for sale must ensure dispensers are labeled with information to help consumers make informed decisions about fueling a vehicle, including the name of the fuel and the minimum percentage of the main component of the fuel. Labels may also list the percentage of other fuel components. This requirement applies to, but is not limited to, the following fuel types: methanol, denatured ethanol, and/or other alcohols; mixtures containing 85% or more by volume of methanol and/or other alcohols; mixtures containing more than 10% but less than 83% by volume of ethanol; natural gas; propane; hydrogen; coal derived liquid biofuel; and electricity.
Fuel dispensers distributing biodiesel blends containing more than 5% biodiesel by volume must include the percentage of biodiesel included. For ethanol blends containing no greater than 50% ethanol by volume, retailers must post the exact percentage of ethanol concentration, rounded to the nearest multiple of 10. For ethanol blends containing more than 50% but no greater than 83% ethanol by volume, retailers must (1) post the exact percentage of ethanol concentration, (2) post the percentage rounded to the nearest multiple of 10, or (3) post notice that the fuel contains 51% to 83% ethanol.
Electric vehicle supply equipment (EVSE) manufacturers must determine and disclose (via a delivery ticket or permanent label or marking) kilowatt capacity, voltage, whether the voltage is alternating current or direct current, amperage, and whether the system is conductive or inductive.
(Reference 81 Federal Register 2054 and 16 CFR 306 and 309)
Point of Contact
Federal Trade Commission
Phone: (202) 326-2222
http://www.ftc.gov/
Biofuel Compatibility Requirements for Underground Storage Tanks (USTs)
Fueling station owners and operators must notify the appropriate state and local implementing agencies at least 30 days before switching USTs to store ethanol blends greater than 10%, biodiesel blends greater than 20%, or any other regulated fuel the agency has identified. This notification timeframe allows agencies to request information on UST compatibility before the owner or operator stores the fuel. Owners and operators must also demonstrate UST system compatibility and maintain records of compliance from the implementing agency for as long as the UST is used to store the fuel. For more information on compatibility requirements and implementing agencies by state, see the U.S. Environmental Protection Agency UST Compatibility website and the final rule in the Federal Register. (Reference 40 CFR 280.32)
High Occupancy Vehicle (HOV) Lane Exemption
States are allowed to exempt certified alternative fuel vehicles (AFVs) and electric vehicles (EVs) from HOV lane requirements within the state. Eligible AFVs are defined as vehicles operating solely on methanol, denatured ethanol, or other alcohols; a mixture containing at least 85% methanol, denatured ethanol, or other alcohols; natural gas, propane, hydrogen, or coal derived liquid fuels; or fuels derived from biological materials. EVs are defined as vehicles that are recharged from an external source of electricity and have a battery capacity of at least 4 kilowatt-hours. States are also allowed to establish programs allowing low-emission and energy-efficient vehicles to pay a toll to access HOV lanes.
Vehicles must be certified by the U.S. Environmental Protection Agency (EPA) and appropriately labeled for use in HOV lanes. The U.S. Department of Transportation (DOT) is responsible for planning and implementing HOV programs, including the low-emission and energy-efficient vehicle criteria EPA established. States that choose to adopt these requirements will be responsible for enforcement and vehicle labeling. The HOV exemption for AFVs and EVs expires September 30, 2025 and low-emission and energy-efficient vehicle toll-access to HOV lanes expired September 30, 2019.
(Reference Public Law 114-94 and 23 U.S. Code 166)
Renewable Fuel Standard (RFS) Program
The national RFS Program was developed to increase the volume of renewable fuel that is blended into transportation fuels. As required by the Energy Policy Act of 2005, the U.S. Environmental Protection Agency (EPA) finalized RFS Program regulations, effective September 1, 2007. The Energy Independence and Security Act of 2007 (EISA) increased and expanded this standard. By 2022, 36 billion gallons of renewable fuel must be blended into domestic transportation fuels each year. A certain percentage of this renewable fuel must be advanced biofuel, which includes fuels derived from approved renewable biomass, excluding corn starch-based ethanol. Other advanced biofuels may include sugarcane-based fuels, renewable diesel co-processed with petroleum, and other biofuels that may exist in the future. All advanced biofuels must achieve a minimum of a 50% greenhouse gas (GHG) emissions reduction compared to baseline petroleum emissions. Nested within advanced biofuels are two sub-categories: cellulosic biofuel and biomass-based diesel, both of which have their own percentage requirements. Cellulosic biofuel is defined as any renewable fuel derived from cellulose, hemicellulose, or lignin that achieves a 60% GHG emissions reduction. Biomass-based diesel is defined as a renewable transportation fuel, transportation fuel additive, heating oil, or jet fuel, such as biodiesel or non-ester renewable diesel, and achieves a 50% GHG emissions reduction. If intended for use in a motor vehicle, the fuel must also be registered with EPA as a motor vehicle fuel or fuel additive.
Each year, EPA determines the annual percentage standards by dividing the annual amount of renewable fuel (gallons) required by EISA for each renewable fuel pathway by the amount of highway and non-road gasoline and petroleum diesel estimated to be supplied that year. These percentages are then applied to obligated parties’ actual fuel sales to determine their Renewable Volume Obligation (RVO). Any party that produces gasoline for use in the United States, including refiners, importers, and blenders (other than oxygenate blenders), is considered an obligated party under the RFS Program. Parties that do not produce, import, or market fuels within the 48 contiguous states are exempt from the renewable fuel tracking program.
To facilitate and track compliance with the RFS, a producer or importer of renewable fuel must generate Renewable Identification Numbers (RINs) to represent renewable fuels produced or imported by the entity on or after September 1, 2007, assigned by gallon or batch. Assigned RINs are transferred when ownership of a batch of fuel occurs, but not when fuel only changes custody. A trading program is in place to allow obligated parties to comply with their annual RVO requirements through the purchase of RINs. Obligated parties must register with EPA in order to participate in the trading program. For each calendar year, an obligated party must demonstrate that it has sufficient RINs to cover its RVO. RINs may only be used for compliance purposes in the calendar year they are generated or the following year. Obligated parties must report their ownership of RINs to EPA’s Office of Transportation and Air Quality on a quarterly and annual basis.For more information, see the RFS Program website.
(Reference 42 U.S. Code 7545(o) and 40 CFR 80.1100-80.1167)
Point of Contact
Fuels Programs
U.S. Environmental Protection Agency
Phone: (202) 343-9755
http://www.epa.gov/fuels-registration-reporting-and-compliance-help
Vehicle Acquisition and Fuel Use Requirements for Federal Fleets
Under the Energy Policy Act (EPAct) of 1992, 75% of new light-duty vehicles acquired by covered federal fleets must be alternative fuel vehicles (AFVs). As amended in January 2008, Section 301 of EPAct 1992 expands the definition of AFVs to include hybrid electric vehicles, fuel cell vehicles, and advanced lean burn vehicles. Fleets that use fuel blends containing at least 20% biodiesel (B20) may earn credits toward their annual requirements. Federal fleets are also required to use alternative fuels in dual-fuel vehicles unless the U.S. Department of Energy (DOE) approves waivers for agency vehicles; grounds for a waiver include lack of alternative fuel availability and unreasonable cost (per EPAct 2005, section 701).
Additional requirements for federal fleets were included in the Energy Independence and Security Act of 2007, such as fleet management plans and petroleum reduction from 2005 levels (Section 142), low greenhouse gas (GHG) emitting vehicle acquisition requirements (Section 141), and renewable fuel infrastructure installation requirements (Section 246). For more information, see the Federal Fleet Management website.
To track progress toward meeting AFV acquisition and fuel use requirements, federal fleets must report on their percent alternative fuel increase compared to the fiscal year 2005 baseline, alternative fuel use as a percentage of total fuel consumption, AFV acquisitions as a percentage of vehicle acquisitions, and fleet-wide miles per gasoline gallon equivalent of petroleum fuels.
Executive Order 13834, issued in May 2018, requires the Secretary of Energy (Secretary), in coordination with the Secretary of Defense, the Administrator of General Services, and the heads of other agencies as appropriate, to review the existing federal vehicle fleet requirements. In April 2019, the Secretary provided a report to the Chairman of the Council on Environmental Quality and the Director of the Office of Management and Budget detailing opportunities to optimize federal fleet performance, reduce associated costs, and streamline reporting and compliance requirements. Specifically, the report recommends that federal agencies identify and implement strategies to:
- Right-size the fleet
- Reduce vehicle miles traveled
- Implement more fuel efficient vehicles
- Align the implementation of AFVs and associated fueling infrastructure
(Reference 42 U.S. Code 13212 and Executive Order 13834 and Executive Order 14008)
Point of Contact
Federal Energy Management Program
U.S. Department of Energy
https://www.energy.gov/eere/femp/federal-energy-management-program-contacts
Vehicle Acquisition and Fuel Use Requirements for Private and Local Government Fleets
Under the Energy Policy Act (EPAct) of 1992, the U.S. Department of Energy (DOE) was directed to determine whether private and local government fleets should be mandated to acquire alternative fuel vehicles (AFVs). In January 2004, DOE published a final rule announcing its decision not to implement an AFV acquisition mandate for private and local government fleets. In response to a March 2006 ruling by a U.S. District Court, DOE issued a subsequent final rulemaking on the new Replacement Fuel Goal in March 2007, which extended the EPAct 1992 goal to 2030. The goal is to achieve a domestic production capacity for replacement fuels sufficient to replace 30% of the U.S. motor fuel consumption. In March 2008, DOE issued its determination not to implement a fleet compliance mandate for private and local government fleets, concluding that such a mandate is not necessary to achieve the Replacement Fuel Goal. For more information on the Private and Local Government Fleet Rule compliance, visit the EPAct Private and Local Government Fleet Determination website. (Reference 42 U.S. Code 13257)
Vehicle Acquisition and Fuel Use Requirements for State and Alternative Fuel Provider Fleets
Under the Energy Policy Act (EPAct) of 1992, as amended, certain state government and alternative fuel provider fleets are required to acquire alternative fuel vehicles (AFVs) as a portion of their annual light-duty vehicle acquisitions. Compliance is required by fleets that operate, lease, or control 50 or more light-duty vehicles within the United States. Of those 50 vehicles, at least 20 must be used primarily within a single Metropolitan Statistical Area/Consolidated Metropolitan Statistical Area, and those same 20 vehicles must also be capable of being centrally fueled for the fleet to be subject to the regulatory requirements.
Under Standard Compliance, the AFVs that covered fleets acquire help them achieve compliance, with each AFV acquired earning the fleet one AFV-acquisition credit. Covered fleets may earn additional credits for AFVs earned in excess of their requirements, and these credits may be banked for future use toward compliance or traded with other fleets. Additionally, fleets that use fuel blends containing at least 20% biodiesel (B20) in medium- and heavy-duty vehicles may earn credits toward their annual AFV-acquisition requirements. A fleet may also earn credits that may be used toward compliance or banked once the fleet achieves compliance for investments in alternative fuel infrastructure, mobile non-road equipment, and emerging technologies associated with certain electric drive vehicle technologies.
Fleets may also opt into Alternative Compliance, which allows fleets the option to choose a petroleum reduction path in lieu of acquiring AFVs under Standard Compliance. Interested fleets must obtain from DOE a waiver from Standard Compliance by submitting a plan that demonstrates a path by which they will achieve a certain level of petroleum reduction specific to their fleet composition.
For more information, visit the EPAct State and Alternative Fuel Provider Fleets website.
(Reference 42 U.S. Code 13251 and 13263a, and 10 CFR 490)
Point of Contact
EPAct Transportation Regulatory Activities
U.S. Department of Energy
regulatory.info@nrel.gov
https://epact.energy.gov/contact-us
Vehicle Incremental Cost Allocation
The U.S. General Services Administration (GSA) must allocate the incremental cost of purchasing alternative fuel vehicles (AFVs) across the entire fleet of vehicles distributed by GSA. This mandate also applies to other federal agencies that procure vehicles for federal fleets. For more information, see the GSA's AFV website. (Reference 42 U.S. Code 13212 (c))
Point of Contact
Fleet Alternative Fuel Vehicle Team
U.S. General Services Administration
gsafleetafvteam@gsa.gov
http://www.gsa.gov
Programs
Bioeconomy Development Programs
The U.S. Department of Agriculture’s (USDA) Bioeconomy, Bioenergy, Bioproduct (B3) Program provides grants for the research and development of biofuels, sustainable aviation fuel, and related products. Eligible applicants include universities, governments, and commercial entities. For more information, including additional program details, see the USDA B3 Programs website.
Clean Cities and Communities
The mission of Clean Cities and Communities is to foster the economic, environmental, and energy security of the United States by working locally to advance affordable, domestic transportation fuels and technologies. Nearly 100 volunteer coalitions carry out this mission by developing public/private partnerships to promote alternative and renewable fuels, idle-reduction measures, fuel economy, improvements, and emerging transportation technologies. Clean Cities and Communities provides information about funding opportunities, coordinates technical assistance projects, updates and maintains databases and websites, and publishes technical and informational materials. For more information, see the Clean Cities and Communities website.
Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
http://www.energy.gov
Clean Construction and Agriculture
Clean Construction is a voluntary program that promotes the reduction of diesel exhaust emissions from construction equipment and vehicles by encouraging proper operations and maintenance, use of emissions-reducing technologies, and use of cleaner fuels.
Clean Agriculture is a voluntary program that promotes the reduction of diesel exhaust emissions from agricultural equipment and vehicles by encouraging proper operations and maintenance by farmers, ranchers, and agribusinesses, use of emissions-reducing technologies, and use of cleaner fuels.
Clean Construction and Clean Agriculture are part of the U.S. Environmental Protection Agency's Diesel Emissions Reduction Act (DERA) Program, which offers funding for clean diesel construction and agricultural equipment projects.
For more information, see the Reducing Diesel Emissions from Construction and Agriculture website.
Point of Contact
DERA Helpline
Diesel Emissions Reduction Act
U.S. Environmental Protection Agency
Phone: (877) 623-2322
dera@epa.gov
https://www.epa.gov/dera
Community Clean Energy Support Program
The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) provides support to communities to achieve their clean energy goals through the Clean Energy to Communities (C2C) Program by offering in-depth partnerships, peer-learning cohorts, and one-on-one matches with experts. Partners in peer-learning cohorts include Clean Cities and Communities coalitions. Eligible communities include local governments, tribal governments, metropolitan and regional planning authorities, utilities, community-based organizations, and entities such as transit agencies, school districts, housing authorities, and universities. Eligible community clean energy goal topics include electric vehicles, alternative fuels, and associated infrastructure. For more information, see NREL’s C2C website.
Diesel Emissions Reduction Act (DERA) Program
The U.S. Environmental Protection Agency established the DERA Program to reduce pollution emitted from diesel engines through the implementation of varied control strategies and the involvement of national, state, local, and tribal partners. DERA includes programs for existing diesel fleets, regulations for clean diesel engines and fuels, and regional collaborations and partnerships. For information on available grants and funding opportunities, see the DERA Funding website.
(Reference Public Law 109-58, Public Law 111-364, and 42 U.S. Code 16131-16137)
Point of Contact
DERA Helpline
Diesel Emissions Reduction Act
U.S. Environmental Protection Agency
Phone: (877) 623-2322
dera@epa.gov
https://www.epa.gov/dera
Innovative Vehicle Technology Loans
The U.S. Department of Energy’s Loan Programs Office (LPO) offers loans for innovative vehicle technology projects through the Title 17 Clean Energy Financing Program. Eligible projects include manufacturing facilities for fuel-efficient vehicles or their parts, sustainable aviation fuels, biofuels, alternative vehicle fuel distribution facilities, and hydrogen fuel cell technology. Loans may cover up to 80% of project costs. Additional terms and conditions apply. For more information, see the LPO Innovative Energy and Innovative Supply Chain website and the program guidance.
(Reference Public Law 109-58, Public Law 117-169, 42 U.S. Code 7254, and 42 U.S. Code 16511-16517)
Ports Initiative
The U.S. Environmental Protection Agency's (EPA) Ports Initiative is an incentive-based program designed to reduce emissions by encouraging port authorities and terminal operators to retrofit and replace older diesel engines with new technologies and use cleaner fuels. EPA's Ports Initiative offers funding to port authorities and public entities to help them overcome barriers that impede the adoption of cleaner diesel technologies and strategies. For more information, see the Ports Initiative website.
Point of Contact
Jennifer Keller
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone: (202) 343-9541
keller.jennifer@epa.gov
http://www.epa.gov/cleandiesel/
SmartWay Transport Partnership
The SmartWay Transport Partnership is a market-based public-private collaboration between the U.S. Environmental Protection Agency (EPA) and the domestic freight industry. This partnership is designed to reduce greenhouse gases and air pollution by accelerating the adoption of advanced technologies and operational practices which increase fuel efficiency and reduce emissions from goods movement. EPA provides partners with performance benchmarking tools, fleet management best practices, technology verification, public recognition and awards, and use of the SmartWay Transport Partner logo to demonstrate their leadership to customers, shareholders and other stakeholders. The SmartWay Transport Partnership is working with partners to test and verify advanced technologies and operational practices that save fuel and reduce emissions. Grants are available to states, non-profits, and academic institutions to demonstrate innovative idle reduction technologies for the trucking industry. For more information, see the SmartWay Transport Partnership website.
Point of Contact
SmartWay Transport Partnership
U.S. Environmental Protection Agency
Phone: (734) 214-4767
smartway_transport@epa.gov
http://www.epa.gov/smartway
Voluntary Airport Low Emission (VALE) Program
The goal of the VALE Program is to reduce ground level emissions at commercial service airports located in designated ozone and carbon monoxide air quality nonattainment and maintenance areas. The VALE Program provides funding through the Airport Improvement Program and the Passenger Facility Charges program for the purchase of low emission vehicles, development of fueling and recharging stations, implementing gate electrification, and other airport air quality improvements. For more information, see the VALE Program website. (Reference 49 U.S. Code 47139)
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