Why is it illegal to use Bio-Fuels?

Question

Here's an article that shows that a man was fined $1,000 from the State and $1,000 from the Federal governments for running his 1981 diesel Mercedes on biofuels.

Since politicians are running for office on promoting energy independence, why don't they repeal the laws that punish independent researchers?

Or is congress tied to the interest of big oil?

http://www.newsobserver.com/news/story/599471.html

Answer 1

Its not illegal.  He was probably fined for not having his set up registered.  Alot of city service and schools here in TX have converted to Bio Fuel usage in an 80 Bio:20 Diesel mix.  I couldn't pull up your link to the article, But I bet that's what it was.

Answer 2

Obviously it all comes down to one thing, money. Whether it be in the form of taxes for the government or protecting the oil cartel it's all about money.

I strongly believe if one goes through such time and expense to do what is right for the environment and the world they should not be hit hard with further financial and bureaucratic burdens.

It's just goes to show that no good deed goes unpunished.

We need to stand up and fight the powers the be if we ever want to be free of this oppression. The real question is are we going to give into the greatest danger of the all, complacency, or are we going to get off our duffs and do something about it?

Answer 3

Interesting article.  Based upon the article, I don't think the state government is even thinking about the environmental and political implications of the guy's switch to biofuels.  They just want their $$.  

I agree that they should exempt the fuel tax.

Answer 4

It's road tax for being on and using the road. No state or fed is gonna give that up I don't care what kinda foolishness you put in the tank.

Dufus bought brand new vegetable oil, cost more than diesel and requires preheating apparatus what a dits.

Answer 5

Probably because it was home-made biofuel, and not something that he purchased at a store - WHICH WAS SUBJECT TO THE HIGHWAY TAX that fuels have added into the price at the pump.  

It's the same with diesel fuel.  There are two "types" - highway use, and non-highway use.  They're the exact same fuel, except that one has a certain dye in it that shows it's for off-highway use only.  Farmers and other industries can purchase the dyed fuel for their off-highway vehicles - but if they ever get audited and the dyed fuel is found in vehicles that can go on the highway, they'll face some fairly hefty fines.  

The off-highway fuel with the dye does NOT have the per gallon tax added into the price of the fuel, because it's not subject to the highway taxes.  It's probably the same with the home produced biofuels.  They're supposed to pay the same federal per-gallon tax as highway fuels.

Answer 6

That's interesting.  They aren't fining him for simply using biofuels though; they're fining him under a law that prevents people from trying to skirt fuel taxes.  The article states that if he gets a license to run on vegetable oil then he can do it.

I don't think the law needs to be repealed though.  Taxes from fuel are a huge source of revenue for government.  If they don't get that revenue, how will they pay for government programs?  Increase personal taxes?  That'll go over well!

Answer 7

If government can find a way to tax people, it will. The use of traditional petroleum fuels kept everything simple, but the use of alternative fuels for vehicles will make things interesting, much like the concerns about controlling "dual-use technology" to counter nuclear proliferation. Not only will bio-diesel confound the tax-collecting structure for vehicle fuel as it pertains to vegetable oil, but other alternative fuels will likely spring similar tax traps. People who buy electric cars can expect the vehicle fuel tax assessors to start taxing their electricity usage. People who buy compressed-air-powered vehicles, such as "The Air Car," might even be taxed for using air (possibly in addition to taxes on the electricity used to compress that air). It would be interesting if tax officials were to view regenerative braking as production of additional electric "fuel" for hybrids and tax hybrid drivers for every time they tap the brake pedal.

Answer 8

Mostly it is because of road taxes.  You pay tax to keep the roads repaired every time you purchase fuel.  The more fuel you buy, the more you pay in tax...but of course you are using the road more, so that is fair.

The guy only got fined $1000....he's LUCKY.  I've read about find up to ten thousand for some people.  It just depends on the state you are in, and if the IRS decides to get involved.  

The IRS has rules that allow them to tax ANYTHING.  Did you get a free haircut from your grandma?  Technically, you are supose to send in tax on what that free haircut would have been worth.  

Neighbor divide some garden plants and give you some?  Technically, you are supose to send in tax on what those plants would be worth.    Are these laws enforced much?  No.  

Are they one of the ways the IRS twists their limits?  Yup.  

Basically the IRS makes YOU prove that you in no way shape or form got any financial gain from the fuel.  Like the lady who cut the hair of the boys in her neighborhood free for 7 years.  Sometimes the boys would do some yard work for her, but that was about it.  

A neighbor turned her in.  She was fined seventy two thousand dollars in back taxes by the IRS.  She never recieved any money for it.  She had to spend thousands of dollars with an attorney proving her inocence, but was still taxed on the free labor she got (yard work).

The IRS can do weird things like that with the biofuels also.  They can accuse you of something that simply isn't true, and you can go bankrupt trying to prove your inocent.

Hubby and I make our own biofuel from the rapeseed (canola)we grow.  It ONLY goes in our farm trucks, and tractors.  Those trucks and tractors are not driven off our property and onto the road EVER.  

Even during the bad snowstorms, when we go plow our neighbors out with our tractors, we ONLY drive on the shoulder, never, ever on the road, not even to cross it.  Fortunatly our neighbor accross the street has big tractors of his own, and keeps his own driveway plowed.

At some point, we want to do the research, and pay our states bonds to allow us to drive our vehicles on the road with our biofuels.  Right now though it's not an issue for us.  We just have several other vehicles we fill with gas or deisel from town, and use on the roads.

Sad isn't it?  We could very nearly be 100% independant of oil, and produce all we need, right here on our farm.  But we cannot afford to pay all the bonds we need to be able to use our biofuel on the road.

~Garnet

Homesteading/Farming over 20 years

Answer 9

Dr. Jello just when I've gone and given up on you, you go and ask a question like this. Your mother should be proud!

Also in states where there are emission laws it is illegal to alter your engine for alternative fuels.

Answer 10

depends, if he was running ethanol thats technically producing moonshine

Answer 11

What an interesting story. I have a cousin who is converting a truck to use vegetable oil so I'm going to be sure and warn him about this. And you've asked an excellent question. Granted it isn't exactly illegal to use bio-fuels, but it certainly hasn't been set up to be easy to use. I find the morass of laws listed in the case to be disturbing, since they practically beg beaurocrats to misuse them. I'll be contacting MY congressman, that's for sure.

Answer 12

Of course the lawmakers are tied to the petrolem industry, but the technical reason burning oil (not biodiesel, which is taxed) is because it isn't an EPA approved fuel, despite being cleaner than most everything else.

Answer 13

One thing that is being missed here is the govt's ability to control  emissions. If everybody starts throwing who knows what into there gas tank then who knows what will end up in the atmosphere.

Answer 14

The answer is in the article, did you even bother to read it.  The government fined him for not paying his fuel taxes.  You didn't think they were going to let him get away with that did you.  After all, there are people feeding at the government trough that would go hungry if everyone stopped paying their taxes.

Answer 15

Because it means they are losing money.