Background

History

When Dr. Rudolf Diesel demonstrated the first diesel engine at the World Exhibition in Paris in 1900, he used 100% peanut oil as fuel. Dr. Diesel originally intended that the diesel engine be fueled by a variety of fuels, including vegetable oil and mineral oil. He promoted the use of vegetable oil as fuel by suggesting that it would greatly benefit the development of agriculture in countries that utilized this potential. The adoption of petroleum-based fuel as the primary fuel for the diesel engine was an arbitrary decision that was largely influenced by the cheaper costs of petroleum at the time.

The use of biodiesel is nothing new in the United States, but the applicability of biodiesel for large-scale use in private and government fleets is only now beginning to be realized. There are a number of reasons for the growing support of biodiesel. The driving force is, of course, the need to reduce the harmful emissions that result from the burning of petroleum oil as well as our dependence on diminishing reserves of petroleum oil. The ease in which biodiesel can be used as an alternative to regular petroleum diesel fuel, along with its economic and environmental benefits, makes it an attractive choice.

What Is Biodiesel?

Biodiesel is a biodegradable, clean-burning combustible fuel derived from new or used vegetable oils or animal fats. Biodiesel meets American Society for Testing and Materials (ASTM) specifications D6751 and is a registered fuel and fuel additive by the U.S. Environmental Agency (EPA). Biodiesel can be used in any internal combustion diesel engine in either its pure form, which is referred to as “neat” biodiesel, or it can be mixed in any concentration with regular petroleum diesel.

Who Uses Biodiesel?

The use of biodiesel for private and public fleets has grown considerably in recent years. Most of the fleets currently using biodiesel do so voluntarily, with the aim of reducing air pollution, oil consumption, and contributing to local economies. Fleets that use biodiesel range from private company fleets to school districts that use biodiesel as a way of reducing students’ exposure of harmful emissions from school busses, and even entire city fleets such as in Berkeley, California. There are more than 300 fleets nationwide that are currently using biodiesel. The U.S. military is one of the largest consumers of biodiesel. Military fleets, including fleets of the U.S. Army, Navy, Air Force and Marines, began using a mix of 20% biodiesel (B20) over three years ago. In June 2003, the city of Berkeley, California, became one of the largest public fleets to use biodiesel when it announced that the city uses 100% biodiesel (B100) in 90% of its diesel vehicles.

Recent Legislation

In 2003, bills were introduced in the U.S. House and Senate (US S 355, introduced 2/11/03, and US H 1279, introduced 3/13/03), which would amend the Internal Revenue Code to allow a tax credit for biodiesel fuel. Minnesota was the first state to enact a law requiring all diesel fuel sold in the state to contain a minimum of 5% biodiesel by volume. The bill, SF 326, was signed into law on March 15, 2003. A similar bill, SB 134, has been proposed in Illinois. In Ohio, HB 293, which would require all diesel-powered vehicles owned by the state to use a minimum blend of 20% biodiesel, has been proposed. The bill would also require all diesel fuel sold in the state to contain a minimum of 5% biodiesel by volume. A number of states, including Illinois (2003 SB 46) and Missouri (2003 HR 1279) have passed laws providing tax incentives to promote the use of biodiesel.

See SERC’s State Activity page for more information about state legislation regarding biodiesel.