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Biofuels in the Northeast (EPA)

Organization(s) Environmental Protection Agency
Project Description The federal government has initiated a number of policies and programs to promote the use and development of biofuel. The Energy Policy Act of 1992 (EPAct) required federal fleets to acquire a certain percentage (up to 75 percent by 2005) of alternative fuel vehicles (AFVs). The updated Energy Policy Act of 2005 (EPAct 2005) broadened the compliance options by allowing fleets to choose a petroleum reduction path and waived the requirement for acquiring AFVs. While EPAct changed its scope, to receive a waiver, fleets must prove to the Department of Energy that they will achieve petroleum reductions equivalent to their AFVs running on alternative fuels 100 percent of the time.

While EPAct no longer requires federal fleets to purchase vehicles that use alternative fuels (including biofuels), two tax credits created through EPAct 2005 provide incentives for using biodiesel: the Alternative Fuel Refueling Infrastructure Tax Credit (AFRITC) and the Small Agri-Biodiesel Producer Tax Credit (SABPTC). The AFRITC program offers a credit for up to 30 percent of the installation cost for fueling stations that offer a range of alternative fuels, including biodiesel blended to B-20 or higher. The SABPTC program gives a $0.10 per-gallon credit, up to 15 million gallons, to producers of agri-biodiesel whose production capacity is less than 60 million gallons.

Building on these incentives, the infrastructure to bring biodiesel to consumers is emerging at a rapid pace. Currently, there are several suppliers of biodiesel in New England, approximately 35 blenders and distributors of biodiesel, and more than 50 biodiesel retail fueling sites.

Project Contact
Name Abby Swaine
Phone 617-918-1841
Project Keywords
Industrial Sectors Fleet Vehicle Maintenance
Activity Keywords Policy/Legislative
Newsletter Northeast Assistance & Pollution Prevention News - Vol. 17 No. 2, Fall 2007 [PDF]


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