How to run WVO legally in VA

[thtguy]

if you fill out this form FT464 (http://www.dmv.state.va.us/webdoc/pdf/ft464.pdf) and take it to the DMV your vehicle will be registered as an AFV and you will cover your butt for road taxes.

[cranetruck]

Excellent info. Thanks!

[GETFRYD]

If you fill out this form they will come looking for your Alternative Fuels Tax of $0.16/gallon, plus you must post a bond for the tax. This all means you must keep meticulous records of how much alternative fuels you use. I've copied sections from the code of virginia below. I think it is more complex than just filling out the form, paying your $50 and getting a nice sticker.

If you find out more or can get it in writing that we don't have to do more than pay $50, that would be great. I might call the number tomorrow. Until I get something in writing, I'm hoping that nobody notices my piddly use of wvo.


§ 58.1-2249. Tax on alternative fuel.
A. There is hereby levied a tax at the rate of sixteen cents per gallon on liquid alternative fuel used to operate a highway vehicle by means of a vehicle supply tank that stores fuel only for the purpose of supplying fuel to operate the vehicle. There is hereby levied a tax at a rate equivalent to sixteen cents per gallon on all other alternative fuel used to operate a highway vehicle. The Commissioner shall determine the equivalent rate applicable to such other alternative fuels.
B. In addition to any tax imposed by this article, there is hereby levied an annual license tax of fifty dollars per vehicle on each highway vehicle that is fueled from a private source if the alternative fuels tax levied under this article has not been paid on fuel used in the vehicle. If such a highway vehicle is not in operation by January 1 of any year, the license tax shall be reduced by one-twelfth for each complete month which shall have elapsed since the beginning of such year.


§ 58.1-2246. Bond, certificate of deposit, or letter of credit requirements.
A. An applicant for a license as a (i) provider of alternative fuel, (ii) retailer of alternative fuel or bulk user of alternative fuel who stores highway and nonhighway alternative fuel in the same storage tank, or (iii) retailer of alternative fuel or a bulk user of alternative fuel who wishes to defer the remittance of tax to the provider until the date the provider of alternative fuel is required to pay the tax to the Commonwealth, shall file with the Commissioner a bond, certificate of deposit, or an irrevocable letter of credit.
B. The amount of the bond, certificate of deposit, or irrevocable letter of credit shall be three times the applicant's average expected monthly tax liability under this article, as determined by the Commissioner. The amount shall not be less than $2,000 nor more than $300,000. An applicant who is also required to file a bond, a certificate of deposit, or an irrevocable letter of credit under § 58.1-2211 to obtain a license as a distributor of motor fuel may file a single bond, certificate of deposit, or irrevocable letter of credit under § 58.1-2211 for the combined amount and shall not be required to file a bond, certificate of deposit or irrevocable letter of credit for more than $300,000 for the combined amount.
C. A bond, certificate of deposit, or irrevocable letter of credit filed under this section shall be conditioned upon compliance with this chapter, be payable to the Commonwealth, and be in the form required by the Commissioner. The Commissioner may require a bond, a certificate of deposit, or an irrevocable letter of credit issued under this section to be adjusted in accordance with the procedure set out in subsection C of § 58.1-2211 for adjusting a bond, certificate of deposit, or irrevocable letter of credit filed by a distributor of motor fuel.

§ 58.1-2201. Definitions.
"Alternative fuel" means a combustible gas, liquid or other energy source that can be used to generate power to operate a highway vehicle and that is not a motor fuel.

§ 58.1-2244. Persons required to be licensed.
A person shall obtain a license before conducting the activities of:
1. A provider of alternative fuel;
2. A bulk user of alternative fuel;
3. A retailer of alternative fuel; or
4. A person who fuels his highway vehicle from his private source, if the alternative fuels tax on alternative fuel used in the vehicle has not been paid.

[cranetruck]

In Virginia, an "Alternate Fuel Licence Certificate Application" must be filled out and submitted if the fuel is obtained from a private residence (home made). This only applies if the fuel is 100% home made bio, no blending with taxed fuel.
The yearly licence fee is $50.00/vehicle and the application form is FT464. In addition to the fee, the tax is $0.16/gallon and is to be reported monthly on form FT218.
There appear to be some confusion here and the answer may depend on if you are considered a "blender", and using taxed fuel with home made biodiesel (form FT213). Being a blender requires a bond, which would be a minimum of $2,000.

If the biodiesel is simply considered an additive no reporting is necessary.

If you have a the licence, then you may qualify for a "Clean Fuel" Licence plate.
The commonwealth may also be satisfied if all you do is report the amount of home made fuel used and report it monthly and pay the $0.16/gallon.

(804) 367-4328 is one number to call, but don't expect a straight answer.

[thtguy]

in a nutshell this is what has happened with me thus far. I have not filled out the form as i had forgotten what form it was. When talking with someone from VDEQ they told me that the $50/yr fee will exempt me from road tax. which i thought was strange. I could not remember the form number when I went to the DMV and asked them about it. they even called Richmond and couldn't figure out what I was talking about. when I told the local DMV what I was doing they looked at my setup and then registered my rabbit as an AFV. so I am confused and so is the State... but when does one stated dept. know what the other state dept. is doing?

[cranetruck]

Wonder how you tell the difference between "blending" and using the bio as an additive.

All in all, the best way is just to report the amount of home made fuel used and pay the 16 cents/gallon (Form FT218).

[GETFRYD]

so I am confused and so is the State... but when does one stated dept. know what the other state dept. is doing?


Tell me about it. When reading more of the code, you can clearly see in the definitions that an alternative fuel is any combustable gas or liquid that is not a motor fuel. A motor fuel is later defined as basically gasoline or diesel fuel. OK makes sense so far. Then it goes to define diesel fuel as any liquid capable of being combusted in a diesel engine. By this, wvo and biodiesel are diesel fuel, thus not an alternative fuel.

I think this is why we have lawyers and politicians that used to be lawyers. I think I'm going to have to call and see what I can do about becoming legal in VA. I don't mind the $50, but I don't want to become subject to inspections and having to report how much wvo I use. The $.16 tax would probably be about $120/year for me.

[ElktonJohn]

If you're just driving a converted passenger vehicle you can probably get away with keeping a low profile, blow off the form and the taxes with no worries. But...it's not too much of a harsh price to pay, 50+.16/gal...the possible audit sucks but really, not so bad. What price peace of mind? hmmm
Thanks Jeff

[GETFRYD]

OK I called and got a similar answer to cranetruck.

The form attached above FT464 is only for alternative fuels recognized by the state as clean alternative fuels. WVO is not. So thtguy, the DMV screwed up. The list of clean alternative fuels is

* Compressed Natural Gas
* Electricity
* Ethane
* Hydrogen
* Hythane
* Liquefied Natural Gas
* Liquefied Petroleum Gas
* Methane
* Solar
* Combination of two types of clean special fuels

Flexible fuel vehicle engines do not utilize only a clean special fuel; therefore, they do not qualify for these license plates.

I was told that I simply fill out form FT218 and pay the 16 cents per gallon used plus the tank fee. The tax examiner I spoke with stated that wvo is considered undyed diesel fuel since it is not dyed and it is "suitable for use as a fuel in a diesel-powered highway vehicle or watercraft." I would argue that it is NOT suitable for use in a diesel-powered highway vehicle otherwise more folks would be using it. But again, that's where the lawyers come into play here.

A bond is needed only for blenders. I simply filter, so that is no problem.


So, I'm going to start filling this out and paying it. I figure I use about 75 gallons per month. That's a whopping $12.45 for the tax and tank fee. Better than the $170+ for diesel.

TRIP