4.7.09
IRS Extends Deadline for Meeting ASTM D6751-2008 Biodiesel Standard

A newly revised American Society for Testing and Materials (ASTM) D6751-08 biodiesel quality standard took effect on October 13, 2008. Under the IRS code, only biodiesel that conforms to the revised ASTM D6751-08 standard is eligible for the current one dollar per gallon federal biodiesel tax credit. In order to smooth the transition to the revised standard, the IRS (IRS Notice 2008-110) allowed product meeting the old ASTM D6751 quality standard - in effect before October 13, 2008 – to continue to qualify for the federal biodiesel tax credit until April 1, 2009. The IRS issued an announcement this week (IRS Notice 2009-34) that the April 1, 2009 transition deadline for conformance with the revised ASTM D6751 is being extended to October 1, 2009.

IRS EXTENDS DEADLINE FOR MEETING ASTM D6751-2008 BIODIESEL STANDARD

Sections 40A, 6426 and 6427(e) of the Internal Revenue Code (IRC) provide tax credits for the production, sale and use of biodiesel and biodiesel mixtures. Section 40A(d)(1) defines biodiesel as monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet EPA fuel registration requirements and ASTM D6751. In order to be eligible for the credit, blenders are required under IRC 6426(c)(4) to obtain a certificate from the biodiesel producer that certifies the biodiesel used in the mixture conforms to ASTM D6751.

On October 13, 2008, the ASTM revised the standard for D6751 by adding a cold soak filtration test for biodiesel. In order to smooth the transition to compliance with the revised ASTM standard, the IRS allowed product meeting either the old or revised ASTM standard to qualify for the federal biodiesel tax credit until April 1, 2009. Beginning on this date, only product meeting the revised ASTM D6751-08 standard would qualify for the federal biodiesel tax credit. The IRS is now extending the April 1, 2009 deadline to October 1, 2009. This means that until October 1, 2009, biodiesel product meeting either the old or revised ASTM D6751 standard qualifies for the federal biodiesel tax credit.

Beginning October 1, 2009, only product that meets the revised ASTM D6751-08 standard will qualify for the one dollar per gallon federal biodiesel tax credit. In addition, all producer certificates must certify after September 30, 2009 that the product meets “ASTM D6751-08” in order to qualify for the federal biodiesel tax credit.

GOT QUESTIONS? Contact Mark S. Morgan, Regulatory Counsel at (202) 364-6767 or by e-mail at mmorganptsa@cox.net

1.9.09
Underwriters Laboratories Announces Position on Use of B5 Biodiesel Blends

Underwriters Laboratories Inc. (UL) is announcing that products intended to use biodiesel blends up to B5 that are compliant with applicable ASTM International fuel standards will not require special investigation by UL. This is consistent with ASTM standards for heating oil and diesel fuel, which were recently updated to indicate that B5 blends may be considered the same as the conventional petroleum fuels under their scope.

In anticipation of the changes to the ASTM fuel standards, UL initiated a technical review of biodiesel fuel and technologies working closely with US Department of Energy, National Renewable Energy Laboratory, Brookhaven National Laboratory, Oak Ridge National Laboratory, and the National Biodiesel Board. UL also conducted performance testing of heating equipment using B5.

The findings indicated no adverse safety effects. It is acknowledged however that introduction of biodiesel may potentially affect fuel quality, mobilize contaminants in the fuel system, or increase the potential for microbial contamination. These performance issues are outside of the scope of UL standards and certification. Manufacturer instructions for use and maintenance of equipment should always be followed.

Use of biodiesel at levels above 5% may have a significant effect on materials, performance or combustion of some equipment. UL is in the process of finalizing product safety requirements for equipment specified for use with biodiesel (B100) and biodiesel blends up to B20.

UL is an independent, not-for-profit product safety certification organization. We remain committed to promoting safe living and working environments through the development of effective safety standards, product investigations and ongoing safety-based audits of products that bear the UL Mark. UL remains independent in this mission and does not endorse, recommend or favor one product over another.

12.12.08
FTC Biodiesel Labeling Requirements Take Affect December 16