U.S. Legislative Issues

Washington State Bill Mandates Electric Vehicles and Biofuels

Pending legislation in Washington State will require local government fleets to use biofuels or electric vehicles. SB5099 and HB1602 relate to fuel usage of publicly owned vehicles and states that all state agencies, under the rules adopted by the Washington State Department of Commerce, must satisfy 100 percent of their fuel usage from electricity or biofuel by year 2015. Compressed natural gas, liquefied natural gas or propane may be substituted if the Department of Commerce determines that electricity or biofuel is not reasonably available. Furthermore, by June 1, 2013 all state agencies are required to achieve forty percent this electricity or biofuel requirement The bill goes on to state the by 2018 all local government subdivisions of the state will be required to meet 100 percent of fuel usage from electricity or biofuel.

Internal Revenue Service Notice on 2012 Tax Credits for Biodiesel and Alternative Fuels

The American Taxpayer Relief Act of 2012 (Pub. L. 112-240) retroactively extends certain fuel tax credits that expired on December 31, 2011. The retroactively extended fuel tax credits are the biodiesel mixture credit, biodiesel credit, alternative fuel credit, and the alternative fuel mixture credit. These credits are now scheduled to expire on December 31, 2013.

The IRS has published Q&As to tell fleets how to claim the credits for qualifying sales or uses during 2012. The IRS information is available at http://www.irs.gov/uac/Fuel-Tax-Credit-Extensions-Frequently-Asked-Questions

EPA Proposes 2013 Renewable Fuel Standards

The U.S. Environmental Protection Agency (EPA) has proposed the 2013 percentage standards for four fuel categories that are part of the agency’s Renewable Fuel Standard program (RFS2).

The Energy Independence and Security Act of 2007 (EISA) established the RFS2 program and the annual renewable fuel volume targets, which steadily increase to an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner and importer determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel.

The proposed 2013 overall volumes and standards are:

Biomass-based diesel (1.28 billion gallons; 1.12 percent)
Advanced biofuels (2.75 billion gallons; 1.60 percent)
Cellulosic biofuels (14 million gallons; 0.008 percent)
Total renewable fuels (16.55 billion gallons; 9.63 percent)