§13220 Biodiesel Fuel Use Credits

Summary

The Secretary must give one credit to a fleet or covered person each time they buy a "qualifying volume" of fuel where the biodiesel part is at least 20% by volume, as long as the fuel is bought after the law took effect and is used in vehicles the fleet owns or runs that weigh more than 8,500 pounds. No credit is allowed for biodiesel used in alternative-fueled vehicles or for biodiesel that the buyer was required to buy by Federal or State law. The Secretary can lower the 20% rule for cold-start, safety, or vehicle performance reasons. Fleets must give written proof to get a credit. At the fleet’s request, each credit will count for the year of purchase as if the fleet had acquired one required alternative-fueled vehicle. Credits cannot be used for more than 50% of a fleet’s required alternative-fueled vehicle purchases, except for fleets that are biodiesel alternative fuel providers described in section 13251(a)(2)(A). Credits under this rule are not the same as credits under section 13258. The Secretary had to issue an implementation rule by January 1, 1999, and must collect data needed to decide if the qualifying volume should change. Definitions (short): "Biodiesel" means diesel made from nonpetroleum renewable resources that meets EPA registration rules under section 7545; it includes biodiesel from animal wastes and from municipal solid waste and wastewater sludges and oils. "Qualifying volume" means 450 gallons, unless the Secretary sets a higher amount by rule based on the average annual alternative fuel use in light-duty vehicles.