In a letter to the leadership of the U.S. House and Senate, NAFA asked for their immediate attention to and support for legislation to extend through 2013 the $1.00 per gallon tax credit for biodiesel and the $0.50 per gallon alternative fuel tax credit for natural gas and propane. "A decision by Congress on extending these important credits is needed quickly so that companies and government agencies can finalize their vehicle acquisitions for the current model year and project fuel costs for the coming year," NAFA said in a September 19 letter to Senate Majority Leader Harry Reid (D-NV), House Speaker John Boehner (R-OH) and other leaders.

"These incentives expired on December 31, 2011, yet NAFA Members have been cautiously optimistic that Congress would reinstate the incentives. The uncertainty surrounding the incentives is now impacting vehicle purchase decisions and fuel planning by fleets throughout the country," NAFA said.


The U.S. Environmental Protection Agency (EPA) has announced an increase in the biodiesel volume requirement under the Renewable Fuels Standard (RFS2) from 1 billion gallons in 2012 to 1.28 billion gallons in 2013. The Energy Independence and Security Act of 2007 expanded the Renewable Fuel Standard (RFS) program and requires a minimum of one billion gallons of biomass-based diesel each year from 2013-2022, with EPA discretion to set the volume higher.


The Congressional Budget Office has released a report finding that tax credits for plug-in hybrid and electric vehicle purchases will cost about $7.5 billion through 2019. The report, Effects of Federal Tax Credits for the Purchase of Electric Vehicles, concluded that the incentives, which peaked at $7,500 per vehicle, did not make the alternative energy vehicles cost competitive with conventional or traditional hybrid cars. 

According to the report, "At current vehicle and energy prices, the lifetime costs to consumers of an electric vehicle are generally higher than those of a conventional vehicle or traditional hybrid vehicle of similar size and performance, even with the tax credits, which can be as much as $7,500 per vehicle. That conclusion takes into account both the higher purchase price of an electric vehicle and the lower fuel costs over the vehicle’s life. For example, an average plug-in hybrid vehicle with a battery capacity of 16 kilowatt-hours would be eligible for the maximum tax credit. However, that vehicle would require a tax credit of more than $12,000 to have roughly the same lifetime costs as a comparable conventional or traditional hybrid vehicle."

The report is available at http://www.cbo.gov/publication/43576