Biofuel Considerations

The production of motor fuels is heavily regulated.  Whether the fuel is made in small quantities for personal use or in an industrial plant, it is the producer's responsibility to know and follow the regulations that apply.

Biofuel Production in Kentucky - Business Considerations and Resources (PDF 57KB)
An OEP fact sheet intended to give prospective business owners a first look at some of the issues that should be considered before entering this competitive industry and to provide contact resources for additional information.

Alternative Fuels Data Center
State and Federal laws and incentives related to alternative fuels and other transportation topics.

The Kentucky Business Guide (PDF 426KB)
A Handbook for Starting and Licensing Your Business in Kentucky by the Cabinet for Economic Development.

A Guide for Evaluating the Requirements of Ethanol Plants (PDF 835KB)
This ethanol plant guide was developed to assist communities, cooperatives and other agricultural organizations in making an initial determination regarding the economic feasibility of developing an ethanol project.

2003 Mississippi Biodiesel Feasibility Study
This comprehensive study takes an exhaustive look at the many factors - including feedstock availability, cost of feedstocks, potential biodiesel demand, process and plant economics, consumer education and legislative actions - necessary to spur a viable biodiesel in Mississippi.

Can I distill ethanol at home?
It is illegal to distill alcohol without first obtaining a Federal permit through the Alcohol and Tobacco Tax and Trade Bureau (TTB) . Failure to obtain a Federal permit prior to engaging in this activity is a criminal offence under the Internal Revenue Code.

Do I need a permit?  What regulations apply?
The Division of Compliance Assistance assists regulated entities in understanding and complying with their environmental obligations.  The DCA can be reached at (502) 564-0323 x343 for assistance.

Are homemade fuels taxable?
Individuals making fuel for on road use by making biodiesel which constitutes blending homemade biodiesel with diesel fuel or by making alcohol and blending it with gasoline, are required to be a licensed Gasoline or Special Fuels Dealer.  Contact the Kentucky Department of Revenue (502) 564-3853 for more information.

Is there a cost to obtain a Special Fuels Dealer license?
Every individual or legal company holding a valid Kentucky Special Fuels Dealer license must post a minimum $5,000 bond.  See Ky. Department of Revenue Form 72A301.

Can you make your own fuel at home?
A response from the non-profit organization, Ethanol Producers and Consumers.

Note: Some documents above are in Adobe Acrobat (.PDF) format.  Please click on the following link to download a free copy of Adobe Acrobat Reader.

James Bush
500 Mero Street, 12th Floor, Capital Plaza Tower
Frankfort, KY 40601
Phone: (502) 564-7192
In KY:  (800) 282-0868
Fax: (502) 564-7484
E-mail: James.Bush@ky.gov