Handbook of Cellulosic Ethanol

Incentives for Renewable Fuels

There are a number of incentives for production and utilization of renewable fuels, such as bioethanol and biodiesel, under the U. S. Department of Energy's Energy Efficiency and Renewable Energy Directorate [24]. These incentives come in the form of tax credits, grants and loan guarantees. Some of the key incentives are outlined below.

1. Alternative Fuel Infrastructure Tax Credit

Fueling equipment for natural gas, liquefied petroleum gas (pro­pane), electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed between January 1, 2006, and December 31, 2013, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consumers who purchased qualified residential fueling equip­ment prior to December 31, 2013, may receive a tax credit of up to $1,000. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years.

Point of Contact: U. S. Internal Revenue Service

2. Advanced Energy Research Project Grants

The Advanced Research Projects Agency - Energy (ARPA-E) was established within the U. S. Department of Energy with the mission to fund projects that will develop transformational technologies that reduce the nation's dependence on foreign energy imports; reduce US energy related emissions, including greenhouse gases; improve energy efficiency across all sectors of the economy; and ensure that the United States maintains its leadership in developing and deploying advanced energy technologies. The ARPA-E focuses on various con­cepts in multiple program areas including, but not limited to, vehicle technologies, biomass energy, and energy storage. For more informa­tion, visit the ARPA-E website: https://arpa-e-foa. energy. gov/.

Point of Contact: U. S. Department of Energy

3. Improved Energy Technology Loans

The U. S. Department of Energy (DOE) provides loan guarantees through the Loan Guarantee Program to eligible projects that reduce air pollution and greenhouse gases, and support early commercial use of advanced technologies, including biofuels and alternative fuel vehicles. The program is not intended for research and devel­opment projects. DOE may issue loan guarantees for up to 100% of the amount of the loan for an eligible project. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Department's Federal Financing Bank. For more information, see the Loan Guarantee Program website.

Point of Contact: U. S. Department of Energy