In 2001, the U.S. Department of Energy published the final rule for the use of biodiesel to fulfill EPAct requirements. This rule allows covered fleets to use biodiesel fuel to fulfill up to 50 percent of their alternative fuel vehicle (AFV) purchase requirements. Covered fleets will be allocated one biodiesel fuel use credit for each 450-gallon purchase of B100. Credits will only be awarded if the fuel used contains at least 20 percent biodiesel and is used in vehicles weighing more than 8500 lbs. If blends are used, only the biodiesel portion of the blend can be used to calculate the credits.
The Congressional Budget Office and the U.S. Department of Agriculture have confirmed that using biodiesel with existing infrastructure is the least-cost alternative fuel option for meeting the Federal Government’s EPAct compliance requirements. Additionally, the cost difference between biodiesel and petroleum diesel that exists today, is expected to shrink due to rising petroleum costs, new EPA rules requiring reduced sulfur content in diesel, and continued improvements in the biodiesel industry.
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²U.S. Department of Energy |
