What is fuel Alcohol?
The TTB regulations (27 CFR, part 19, subpart X) define fuel alcohol as distilled spirits which have been made unfit for beverage use at an AFP as provided in 27 CFR, part 19, subpart X. The regulations authorize the use and required level of certain materials that may be used for making distilled spirits unfit for beverage use. See AFP7.
Since AFPs may not produce or use distilled spirits derived from petroleum, natural gas, or coal, as prescribed by Section 5181, fuel alcohol may not be produced with distilled spirits that were derived from petroleum, natural gas, or coal.
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