Biofuels in the Northeast (EPA)

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.