DOE Adopts Final Rule on Biodiesel Program

The Department of Energy (DOE) recently announced it will adopt an interim final rule, published on May 19, 1999 to implement the Energy Conservation Reauthorisation Act of 1998 (ECRA). The act amended title III of the Energy Policy Act (EPACT) of 1992.

ECRA allows fleets that are required to purchase alternative fuelled vehicles under titles III and V of EPACT to meet these requirements, in part through the use of biodiesel fuel credits.

Furthermore, the rule establishes procedures for fleets to request credits for specified biodiesel fuel use and implements ECRA's credit eligibility and allocation provisions.

The biodiesel fuel use credit gives fleets that are otherwise required under EPACT to purchase an alternative fuel vehicle (AFV), the option of buying and using 450 gallons of biodiesel in vehicles over 8,500 pounds gross vehicle weight instead of acquiring an AFV.

The legislation prohibits the allocation of biodiesel fuel use credits for the purchase of biodiesel when the biodiesel is used in alternative fuel vehicles that are used to satisfy the EPACT AFV purchase requirements, or when biodiesel fuel is required by federal or state law.