Under the Bus Service Operators Grant (BSOG) scheme operators of local bus services using biofuel currently receive a rebate of 100 per cent. of the fuel duty paid, rather than the 80 per cent. rebate paid for conventional fuels.
As stated in our document, “Putting Passengers First”, published on 12 December, we are now considering whether there is scope for reforming BSOG to tie this more directly to operators’ performance and/or environmental outcomes, and the practical issues that would be involved.