Federal Laws and Incentives for Biodiesel

The list below contains summaries of all Federal laws and incentives related to Biodiesel.

Incentives

Alternative Fuel Infrastructure Tax Credit

This incentive expires December 31, 2013, but will remain posted until the federal tax filing deadline.

Fueling equipment for natural gas, liquefied petroleum gas (propane), electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed between January 1, 2006, and December 31, 2013, 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. Consumers who purchased qualified residential fueling equipment prior to December 31, 2013, may receive a tax credit of up to $1,000. 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. (Reference Public Law 112-240, 26 U.S. Code 30C and 38, and IRS Notice 2007-43)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Biodiesel Income Tax Credit

This incentive expires December 31, 2013, but will remain posted until the federal tax filing deadline.

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 specification D6751. Renewable diesel is defined as liquid fuel derived from biomass that meets EPA's fuel registration requirements and ASTM specifications 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. This tax credit is applicable to fuel delivered between January 1, 2005, and December 31, 2013. For more information about claiming the credit, see 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 Forms for Registration and Reporting Fuels and Fuel Additives website. (Reference Public Law 112-240 and 26 U.S. Code 40A)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040
http://www.irs.gov/

Biodiesel Mixture Excise Tax Credit

This incentive expires December 31, 2013, but will remain posted until the federal tax filing deadline.

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 specification D6751. Renewable diesel is defined as liquid fuel derived from biomass that meets EPA's fuel registration requirements and ASTM specifications 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. This tax credit is applicable to fuel blended between January 1, 2005, and December 31, 2013. For more information about claiming the credit, see IRS Publication 510 and IRS Forms 637, 720, 4136, 8849, and 8864, which are available on the IRS Forms and Publications website. For information about registering with the EPA, see the EPA Forms for Registration and Reporting Fuels and Fuel Additives website. (Reference Public Law 112-240 and 26 U.S. Code 6426)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.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.

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
Fax: (202) 586-4403
http://www.energy.gov

Improved Energy Technology Loans

The U.S. Department of Energy (DOE) provides loan guarantees through the Loan Guarantee Program to eligible projects that reduce air pollution and greenhouse gases, and support early commercial use of advanced technologies, including biofuels and alternative fuel vehicles. The program is not intended for research and development projects. DOE may issue loan guarantees for up to 100% of the amount of the loan for an eligible project. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Department's Federal Financing Bank. For more information, see the Loan Guarantee Program website. (Reference 42 U.S. Code 16513)

Point of Contact
Loan Guarantee Program
U.S. Department of Energy
Phone: (202) 586-8336
Fax: (202) 586-7366
http://www.energy.gov

Advanced Biofuel Production Grants and Loan Guarantees

The 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 Biorefinery Assistance Program website. (Reference Public Law 112-240 and 7 U.S. Code 8103)

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
http://www.rurdev.usda.gov/

Advanced Biofuel Production Payments

Through the 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 2018 (verified February 2014), but is subject to congressional appropriations thereafter. For more information, see the Bioenergy Program for Advanced Biofuels website and contact the appropriate State Rural Development Office. (Reference H.R. 2642, 2014, Public Law 112-240, and 7 U.S. Code 8105)

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
http://www.rurdev.usda.gov/

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 nonprofit 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 is funded through fiscal year 2018 (verified February 2014), but is subject to congressional appropriations thereafter. (Reference H.R. 2642, 2014, Public Law 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
http://www.rurdev.usda.gov/

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 Office of Biomass Programs, provides grant funding for projects addressing research, development, and demonstration of biofuels and biobased projects 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 biobased products development; and biofuels development analysis. Eligible applicants are institutions of higher learning, national laboratories, federal research agencies, private sector entities, and nonprofit organizations. The non-federal share of the total project cost must be at least 20%. This program is funded through fiscal year 2017 (verified February 2014), but is subject to congressional appropriations thereafter. For more information, see the Biomass Research & Development website. (Reference H.R. 2642, 2014, Public Law 112-240, 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
http://www.rurdev.usda.gov/

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 is funded through fiscal year 2018 (verified February 2014), but is subject to congressional appropriations thereafter. (Reference H.R. 2642, 2014, Section 6203; and 7 U.S. Code 1632a)

Biobased Transportation Research Funding

The Surface Transportation Research, Development, and Deployment (STRDD) Program funds activities that promote innovation in transportation infrastructure, services, and operations. A portion of the funding made available to STRDD is set aside for the Biobased Transportation Research program to carry out biobased research of national importance at research centers and through the National Biodiesel Board. For more information, see the STRDD Program website. The program is not currently funded (verified December 2013). (Reference 23 U.S. Code 502 and 7 U.S. Code 8109)

Point of Contact
Federal Highway Administration
U.S. Department of Transportation
http://www.fhwa.dot.gov/index.html

Alternative Fuel and Advanced Vehicle Technology Research and Demonstration Bonds

Qualified state, tribal, and local governments may issue Qualified Energy Conservation Bonds subsidized by the U.S. Department of Treasury at competitive rates to fund capital expenditures on qualified energy conservation projects. Eligible activities include research and demonstration projects related to cellulosic ethanol and other non-fossil fuels, as well as advanced battery manufacturing technologies. Government entities may choose to issue tax credit bonds or direct payment bonds to subsidize the borrowing costs. For information on eligibility, processes, and limitations, see IRS Notices 2009-29, 2010-35, and 2012-44 or contact local issuing agencies. (Reference 26 U.S. Code 54D)

Advanced Biofuel Feedstock Incentives

The 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 is funded through fiscal year 2018 (verified February 2014), but is subject to congressional appropriations thereafter.

The U.S. Department of Agriculture must submit a progress report to Congress on or before February 7, 2018, communicating best practices and other relevant information gathered from BCAP participants.

For more information, see the Biomass Crop Assistance Program website. (Reference H.R. 2642, 2014 and 7 U.S. Code 8111)

Second Generation Biofuel Plant Depreciation Deduction Allowance

This incentive expires December 31, 2013, but will remain posted until the federal tax filing deadline.

A second generation biofuel production plant placed into service between December 20, 2006, and December 31, 2013, may be eligible for an additional depreciation tax deduction allowance equal to 50% of the adjusted basis of the property. The plant must be solely used to produce second generation biofuel and is only eligible for the depreciation allowance for the first year in operation. Second generation biofuel is defined as liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis or any cultivated algae, cyanobacteria, or lemna. (Reference Public Law 112-240 and 26 U.S. Code 168)

Second Generation Producer Tax Credit

This incentive expires December 31, 2013, but will remain posted until the federal tax filing deadline.

A second generation biofuel producer that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of up to $1.01 per gallon of second generation biofuel that is: sold and used by the purchaser in the purchaser's trade or business to produce a second generation biofuel mixture; sold and used by the purchaser as a fuel in a trade or business; sold at retail for use as a motor vehicle fuel; used by the producer in a trade or business to produce a second generation biofuel mixture; or used by the producer as a fuel in a trade or business. If the second generation biofuel also qualifies for alcohol fuel tax credits, the credit amount is reduced to $0.46 per gallon for biofuel that is ethanol and $0.41 per gallon if the biofuel is not ethanol. Second generation biofuel is defined as liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis or any cultivated algae, cyanobacteria, or lemna. To qualify, fuel must also meet the U.S. Environmental Protection Agency fuel and fuel additive registration requirements. Alcohol with a proof of less than 150, fuel with a water or sediment content of more than 4%, and fuel with an ash content of more than 1% are not considered second generation biofuels. The incentive is allowed as a credit against the producer's income tax liability. Under current law, only qualified fuel produced in the United States between January 1, 2009, and December 31, 2013, for use in the United States may be eligible. For more information about claiming the credit, see IRS Forms 637 and 6478, which are available on the IRS Forms and Publications website. (Reference Public Law 112-240 and 26 U.S. Code 40)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.gov/

Laws and Regulations

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 defines AFVs to include hybrid electric vehicles, fuel cell vehicles, and advanced lean burn vehicles. Federal fleets are also required to use alternative fuels in dual-fuel vehicles unless the U.S. Department of Energy (DOE) determines an agency qualifies for a waiver; grounds for a waiver include lack of alternative fuel availability and cost restrictions. Fleets that use fuel blends containing at least 20% biodiesel (B20) may earn credits toward their annual requirements. Additionally, Executive Order 13423, issued in January 2007, requires federal agencies with 20 vehicles or more in their U.S. fleet to decrease petroleum consumption by 2% per year, relative to their Fiscal Year (FY) 2005 baseline, through FY 2015. Agencies must also continue to increase their alternative fuel use by 10% per year, relative to the previous year, based on a FY 2005 baseline.

Executive Order 13514, issued in October 2009, requires each federal agency to develop, implement, and annually update a Strategic Sustainability Performance Plan. Federal agencies must measure, reduce, and report their greenhouse gas (GHG) emissions, with an overall federal government direct GHG emissions reduction goal of 28% by 2020, relative to a FY 2008 baseline. Federal fleets of 20 vehicles or more must reduce petroleum consumption by a minimum of 2% per year through the end of FY 2020 as compared to 2005 baseline usage. Each agency must establish a comprehensive inventory of GHG emissions for FY 2010, to be updated on an annual basis thereafter. Reductions may be achieved through a variety of measures including the use of AFVs, and fleet optimization efforts.

Additional requirements for federal fleets were included in the Energy Independence and Security Act of 2007, including fleet management plan requirements (Section 142), low GHG emitting vehicle acquisition requirements (Section 141), and renewable fuel infrastructure installation requirements (Section 246). DOE is currently developing a rulemaking on the alternative fuel increase requirements (verified December 2013; Section 142).

For more information, visit the Sustainable Federal Fleets website.

(Reference 42 U.S. Code 13212, Executive Order 13423, and Executive Order 13514)

Point of Contact
Federal Energy Management Program
U.S. Department of Energy
https://federalfleets.energy.gov/fleet_management_contacts

Vehicle Acquisition and Fuel Use Requirements for State and Alternative Fuel Provider Fleets

Under the Energy Policy Act (EPAct) of 1992, certain state government and alternative fuel provider fleets are required to acquire alternative fuel vehicles (AFVs). 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. Those same 20 vehicles must also be capable of being centrally fueled. Under Standard Compliance, covered fleets earn credits for each vehicle purchased, and credits earned in excess of their requirements can be banked 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. The U.S. Department of Energy (DOE) is currently developing a rulemaking to allocate credits for electric drive vehicles and investments in infrastructure, equipment, and emerging technologies (verified December 2013).

On March 20, 2007, DOE issued a final rule on Alternative Compliance, which allows fleets the option to choose a petroleum reduction path in lieu of acquiring AFVs. Interested fleets must obtain a waiver from DOE by proving that they will achieve petroleum reductions equivalent to that achieved by having AFVs running on alternative fuels 100% of the time. 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@afdc.nrel.gov
http://www.eere.energy.gov/vehiclesandfuels/epact/contacts.html

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)

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; liquefied petroleum 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
Fax: (202) 586-4403
http://www.energy.gov

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 increased and expanded this standard. By 2022, 36 billion gallons of renewable fuel must be used per year. A certain percentage of the renewable fuel blended into transportation fuels must be cellulosic biofuel, biomass-based diesel, and advanced biofuel. Cellulosic biofuel is defined as any renewable fuel derived from cellulose, hemicellulose, or lignin that achieves a 60% greenhouse gas (GHG) emissions reduction. Biomass-based diesel is defined as a renewable transportation fuel, transportation fuel additive, heating oil, or jet fuel that meets the definition of either 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. Renewable fuel that is co-processed with petroleum is not considered biomass-based diesel. Advanced biofuel is defined as any renewable fuel, other than ethanol derived from corn, that achieves a 50% GHG emissions reduction.

Each year, EPA will determine the Renewable Volume Obligation (RVO) for parties required to participate in the RFS Program. This standard is calculated as a percentage by dividing the amount of renewable fuel (gallons) required by the RFS to be blended into gasoline for a given year by the amount of gasoline/transportation fuel expected to be used during that year. 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 the 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
support@epamts-support.com
http://www.epa.gov

Alternative Fuel and Vehicle Labeling Requirements

Alternative fuel vehicles (AFVs) and fuel dispensers must be labeled with information to help consumers make informed decisions about buying or fueling a vehicle. All new and used AFVs, including vehicles with an aftermarket conversion system installed, must be clearly labeled with the vehicle's cruising range as estimated by the manufacturer, as well as other descriptive information. The labeling requirements do not apply to hybrid electric vehicles. Alternative fuel dispensers must also be clearly labeled with the name of the fuel and fuel rating. This rule 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, denatured ethanol, and/or other alcohols; natural gas; liquefied petroleum gas; hydrogen; coal derived liquid biofuels; biodiesel blends containing more than 5% biodiesel by volume; and electricity. (Reference 16 CFR 306 and 309)

Point of Contact
Federal Trade Commission
Phone: (202) 326-2222
http://www.ftc.gov/

High Occupancy Vehicle (HOV) Lane Exemption

States are allowed to exempt certified low emission and energy-efficient vehicles from HOV lane requirements within the state. Eligible 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 is responsible for planning and implementing HOV programs, including the exemption criteria established by EPA. States that choose to adopt these requirements will be responsible for enforcement and vehicle labeling. The HOV exemption for low emission and energy-efficient vehicle expires September 30, 2017. (Reference Public Law 112-141 and 23 U.S. Code 166)

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
U.S. General Services Administration
Phone: (703) 605-5630
AFVteam@gsa.gov

Alternative Fuel Excise Tax

Liquefied natural gas, liquid fuel derived from coal, and liquid hydrocarbons derived from biomass are subject to a federal excise tax of 24.3 cents per gallon. All other liquid alternative fuels are taxed at 18.3 cents per gallon. The federal excise tax on compressed natural gas is 18.3 cents per energy equivalent of a gallon of gasoline. (Reference 26 U.S. Code 4041 and 4081)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855
http://www.irs.gov/

Renewable Fuels Assessment

The U.S. Department of Defense (DOD) prepared a report, Opportunities for DOD Use of Alternative and Renewable Fuels, on the use and potential use of renewable fuels in meeting DOD's energy requirements for the Senate and House of Representatives Armed Services Committees. The report assessed the use of renewable fuels, including domestically produced algae-based fuels, biodiesel, and biomass derived fuels, as alternative fuels in ground transportation, aviation, and maritime fleets. The report also assessed the potential benefit of establishing a renewable fuel commodity class that is distinct from petroleum-based products. DOD also incorporated alternative fuels into the Operational Energy Strategy and the associated Implementation plan. For more information, see the DOD Office of the Assistant Secretary of Defense for Operational Energy Plans and Programs website. (Reference Public Law 111-84, Section 334)

Point of Contact
U.S. Department of Defense
Phone: (703) 571-3343
http://www.defense.gov/

Programs

Clean Cities

The mission of Clean Cities is to advance the energy, economic, and environmental security of the United States by supporting local initiatives to adopt practices that reduce the use of petroleum in the transportation sector. Clean Cities carries out this mission through a network of nearly 100 volunteer coalitions, which develop public/private partnerships to promote alternative fuels and advanced vehicles, fuel blends, fuel economy, hybrid vehicles, and idle reduction. Clean Cities provides information about financial opportunities, coordinates technical assistance projects, updates and maintains databases and websites, and publishes fact sheets, newsletters, and related technical and informational materials. For more information, see the Clean Cities website.

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
Fax: (202) 586-4403
http://www.energy.gov

State Energy Program (SEP) Funding

The SEP provides grants to states to assist in designing, developing, and implementing renewable energy and energy efficiency programs. 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. For more information, see the SEP website.

Point of Contact
U.S. Department of Energy
Phone: (202) 586-5000
Fax: (202) 586-4403
http://www.energy.gov

National Clean Diesel Campaign (NCDC)

The NCDC was established by the U.S. Environmental Protection Agency to reduce pollution emitted from diesel engines through the implementation of varied control strategies and the involvement of national, state, and local partners. The NCDC 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 NCDC Grants & Funding 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, nonprofits, 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
Fax: (734) 214-4052
smartway_transport@epa.gov
http://www.epa.gov/smartway

Clean School Bus USA

Clean School Bus USA is a public-private partnership that focuses on reducing children's exposure to harmful diesel exhaust by limiting school bus idling, implementing pollution reduction technologies, improving route logistics, and switching to clean fuels. Clean School Bus USA is part of the U.S. Environmental Protection Agency's National Clean Diesel Campaign and provides funding for projects designed to retrofit and/or replace older diesel school buses. Eligible applicants are school districts, state and local government programs, federally recognized Indian tribes, and non-profit organizations. For more information, see the Clean School Bus USA 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/

Clean Ports USA

Clean Ports USA 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. The U.S. Environmental Protection Agency's National Clean Diesel Campaign 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 Clean Ports USA website.

Point of Contact
Julie Henning
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone: (734) 214-4442
Fax: (734) 214-4052
henning.julie@epa.gov
http://www.epa.gov/cleandiesel/

Clean Construction USA

Clean Construction USA 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 Construction USA is part of the U.S. Environmental Protection Agency's National Clean Diesel Campaign, which offers funding for clean diesel construction equipment projects. For more information, see the Clean Construction USA website.

Point of Contact
Julie Henning
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone: (734) 214-4442
Fax: (734) 214-4052
henning.julie@epa.gov
http://www.epa.gov/cleandiesel/

Clean Agriculture USA

Clean Agriculture USA 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 Agriculture USA is part of the U.S. Environmental Protection Agency's National Clean Diesel Campaign, which offers funding for clean diesel agricultural equipment projects. For more information, see the Clean Agriculture USA website.

Point of Contact
Julie Henning
National Clean Diesel Campaign
U.S. Environmental Protection Agency
Phone: (734) 214-4442
Fax: (734) 214-4052
henning.julie@epa.gov
http://www.epa.gov/cleandiesel/

Air Pollution Control Program

The Air Pollution Control Program assists state, local, and tribal agencies in planning, developing, establishing, improving, and maintaining adequate programs for prevention and control of air pollution or implementation of national air quality standards. Plans may emphasize alternative fuels, vehicle maintenance, and transportation choices to reduce vehicle miles traveled. Eligible applicants may receive federal funding for up to 60% of project costs to implement their plans. (Reference 42 U.S. Code 7405)

Point of Contact
U.S. Environmental Protection Agency
Phone: (202) 272-0167
http://www.epa.gov

Congestion Mitigation and Air Quality (CMAQ) Improvement Program

The CMAQ Improvement Program provides funding to state departments of transportation (DOTs), municipal planning organizations (MPOs), and transit agencies for projects and programs in air quality nonattainment and maintenance areas that reduce transportation-related emissions. Eligible activities include transit improvements, travel demand management strategies, traffic flow improvements, purchasing idle reduction equipment, development of alternative fueling infrastructure, conversion of public fleet vehicles to operate on cleaner fuels, and outreach activities that provide assistance to diesel equipment and vehicle owners and operators regarding the purchase and installation of diesel retrofits. State DOTs and MPOs must give priority to projects and programs to include diesel retrofits and other cost-effective emissions reduction activities, and cost-effective congestion mitigation activities that provide air quality benefits. For more information, see the CMAQ Improvement Program website. (Reference Public Law 112-141, and 23 U.S. Code 149)

Point of Contact
Federal Highway Administration
U.S. Department of Transportation
http://www.fhwa.dot.gov/index.html

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)

Point of Contact
Peggy Wade
Federal Aviation Administration, Planning and Environmental Division
U.S. Department of Transportation
Phone: (202) 267-8824
peggy.wade@faa.gov