EPA Increases Biodiesel Production Target
The Environmental Protection Agency announced that it wants U.S. drivers to increase use of biodiesel to 800 million gallons next year from 650 million gallons this year.
Despite some industry projections that production has lagged since the expiration of a federal tax credit, EPA said in a July 12 renewable fuel standard proposal that the Energy Information Administration predicts average monthly biodiesel production rates in 2010 will exceed 2009 rates.
The agency is calling for producers to blend 13.95 billion gallons of biofuels into the U.S. fuel supply. That amounts to 7.95% of all fuel consumed by U.S. vehicles and trucks and an increase of 1 billion gallons from the 12.95 billion gallon target in 2010.
Of that total, 800 million gallons of biodiesel must be blended into the U.S. supply of diesel.
Biofuel producers have said the projected biodiesel production levels may not be achieved if Congress does not retroactively extend a $1 per gallon biodiesel tax credit that expired at the end of last year. Biodiesel is more expensive to produce than regular diesel, so the tax credit helps lower biodiesel pump prices.
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