An alternative fuel is a fuel used for transportation that offers substantial environmental benefits over petroleum. The term "alternative fuel" does not include alcohol or other blended portions of primarily petroleum-based fuels used as oxygenates or extenders, i.e., MTBE, ETBE, other ethers, and the 10-percent ethanol portion of gasohol.

 

Alternative fuels include the following:

 

methanol

denatured ethanol, and other alcohols

fuel mixtures containing 85 percent or more by volume of methanol, denatured ethanol, and other alcohols with gasoline or other fuels – natural gas

liquefied petroleum gas (propane)

hydrogen

coal-derived liquid fuels

fuels (other than alcohol) derived from biological materials (biofuel such as soy diesel fuel)

electricity (including electricity from solar energy