2 Del. Admin. Code § 2244-II-2.13

Current through Register Vol. 28, No. 1, July 1, 2024

Section 2244-II-2.13 - Alternative Fuel Credits

2.13.1 Companies, organizations or entities must register with the Director, Motor Fuel Tax Administration or his designee to use non-taxed alternative special fuel in licensed motor vehicles involved in a pilot program, test program or demonstration program by documenting the following information.

2.13.1.1 The total number of vehicles in your firms registered fleet.

2.13.1.2 The number of alternatively fueled vehicles in the fleet including the types of alternative fuel used.

2.13.1.3 The number of alternative vehicles to be considered as part of the demonstration program, test program or pilot program.

2.13.1.4 Identify any alternatively fueled motor carrier class vehicles intended to be made a part of the demonstration program, test program or pilot program.

2.13.1.5 The nature of the data to be collected on fuel economy, performance and air emission test for program analysis as required by Title 30, Chapter 51, Section 5131 (11), Delaware Code.

PLEASE NOTE: Any company, organization or entity that is not collecting and analyzing data on alternative fuel economy and performance will be determined not to be conducting a test program to determine the commercial feasibility of alternatively fueled vehicles.

2.13.1.6 Identify all source(s) of supply for alternative fuel purchases including name, address and phone number.

2.13.2 Companies, organizations or entities engaged in pilot programs, test programs or demonstration programs to determine the commercial feasibility of alternatively fueled vehicles must either:

2.13.2.1 Be licensed as a Special Fuel User in accordance with Title 30, Chapter 51, Subchapter II, Delaware Code, or

2.13.2.2 Purchase its alternative fuel from a licensed Special Fuel Supplier or Dealer who is capable and willing to report separately the alternative fuel sold as a motor fuel in relation to the approved demonstration program. The licensed Special Fuel Supplier or Dealer is responsible for the maintenance of records to support the non-taxed demonstration program alternative fuel distribution. Only the alternative special fuel placed into the supply tanks of vehicles included in an authorized demonstration program as authorized by the Director, Motor Fuel Tax Administration shall be tax exempt.

2.13.3 In the event that a company, organization or entity conducting an authorized demonstration program operated "dual fuel vehicles", only the alternative special fuel used to propel the subject vehicle will be exempt from the motor fuels excise tax. All other conventional fuel used to propel the dual fuel vehicle shall be subject to the motor fuels excise tax.

2.13.3.1 "Dual fuel vehicle" is considered a vehicle that is capable of operation on more than one type of fuel. "Conventional fuel" is considered gasoline (in all formulation states) and special fuel middle distillates to include diesel, fuel oil and kerosene (in all formulation states).

2.13.4 The number of vehicles involved in pilot programs, test programs or demonstration programs cannot exceed the greater of 10 vehicles or 10 percent of the taxpayers fleet. The number of vehicles authorized to be included in such pilot programs, test programs or demonstration programs shall be calculated based on the firms registered fleet.

2.13.5 Companies, organizations and entities conducting an authorized pilot program, test program or demonstration program shall identify and report to the Motor Fuel Tax Administration the specific vehicles included in such a program by the company's vehicle number or license plate number. Any vehicle changes must be reported to the Motor Fuel Tax Administration. Companies, organizations or entities with greater than 10 percent of their registered fleet converted to operate on alternative fuel shall not be permitted to regularly rotate the vehicles involved in such pilot programs, test programs or demonstration programs.

2.13.6 Any Delaware registered motor carrier class vehicle included in a pilot program, test program or demonstration program, into which non-taxed alternative special fuel is placed, is not exempt from motor carrier reporting. Companies, organizations or entities operating a fleet of motor carrier class vehicles, will be required to have a separate motor carrier registration for the reporting of alternatively fueled motor carrier class vehicles involved in demonstration programs. Quarterly motor carrier tax reports for vehicles included in demonstration programs are to be calculated so as to indicate no tax liability and no credit accrual by reporting Delaware fuel purchases on line 7a equal to the calculated Delaware fuel usage. No over purchase credit refunds will be established based on non-taxed alternative special fuel placed into vehicles included in demonstration programs. Also, no additional motor carrier road usage tax liabilities will be established if the vehicles are operated interstate.

2.13.7 The effective date for application of excise tax credits or refunds on special fuel used in alternatively fueled vehicles shall be October 29, 1993. Retroactive excise tax credits and/or refunds may be granted provided the firm requesting the refund or credit registers with the Motor Fuel Tax Administration in accordance with M.1.

2 Del. Admin. Code § 2244-II-2.13