School buses that use diesel fuel must be able to operate with B20, fuel that contains at least 20 percent of biodiesel. Senate Bill 1452 also requires that beginning June 1, 2008, at least 2 percent of the fuel purchased annually by local school districts for school buses must be a minimum blend of B20. Thomasbuilt buses, here in NC, do meet the standard. Another bill, Senate Bill 1277, requires that new state-owned vehicles that run on diesel fuel must carry a warranty that assures they are capable of running on B20.
As part of the state budget, we improved the tax credit we have given since 2004 to companies that build renewable fuel production plants. The changes allow more flexibility in the credits and are expected to attract more such plants to the state.