As part of a new law designed encourage the growth of an advanced biofuels industry in the state, Massachusetts will require biofuels in diesel.

The legislation requires biofuel content in all the diesel and home heating fuel sold in the state, gives preferential tax treatment to non-corn-based alternatives to ethanol, and proposes a new fuel standard for the region that will encourage a range of emissions-reducing technologies for cars and trucks.

The Clean Energy Biofuels Act requires a minimum percentage of biofuel as component of all diesel fuel and home heating fuel sold in the Commonwealth, starting at 2 percent in 2010 and ramping up to 5 percent by 2013.

All biofuels must meet high standards for reduction of greenhouse gas emissions over their entire lifecycles (growing, processing, and combustion) in order to qualify for the content mandate. The state Department of Energy Resources has authority to delay the minimum content requirements if there are no biofuels available that meet those standards.