42 U.S.C. § 13220 — Biodiesel fuel use credits

(a) Allocation of credits: (1) In general: The Secretary must give one credit under this section to a fleet or covered person for each qualifying volume of the biodiesel part of fuel that is at least 20% biodiesel by volume, purchased after this section became law, for use in vehicles the fleet or person owns or runs that weigh more than 8,500 pounds. (2) Exceptions: No credit is given for biodiesel purchased (A) for use in alternative fueled vehicles, or (B) that federal or state law already requires. (3) Authority to modify percentage: The Secretary may lower the 20% requirement by rule, for cold-start, safety, or vehicle-function reasons. (4) Documentation: A fleet or covered person seeking a credit must give the Secretary written proof supporting it. (b) Use of credits: (1) In general: At the fleet's or covered person's request, the Secretary must treat a qualifying purchase, in the year it is made, as if it were the purchase of one alternative fueled vehicle the fleet or person is required to buy under this subchapter or subchapters II or III. (2) Limitation: Credits cannot cover more than 50% of a fleet's or covered person's alternative fueled vehicle requirement — except this cap does not apply to a fleet or covered person that is a biodiesel alternative fuel provider under section 13251(a)(2)(A). (c) Credit not a section 13258 credit: A credit given under this section is not treated as a credit under section 13258. (d) Issuance of rule: The Secretary had to issue, before January 1, 1999, a rule setting up procedures to carry out this section. (e) Collection of data: The Secretary must collect the data needed to make the determination described in subsection (f)(2)(B). (f) Definitions: (1) "Biodiesel" (A) means a diesel substitute made from nonpetroleum renewable resources that meets EPA's fuel and fuel-additive registration requirements under section 7545; (B) includes biodiesel made from (i) animal waste, including poultry fat and waste, and other waste materials, or (ii) municipal solid waste and sludges and oils from wastewater and its treatment. (2) "Qualifying volume" means (A) 450 gallons, or (B) if the Secretary determines by rule that fleets' and covered persons' average annual alternative fuel use in light duty vehicles exceeds 450 gallons or gallon-equivalents, that higher average amount instead.