The U.S. biodiesel industry produced more than 1 billion gallons of fuel in 2011, a key milestone.


According to year-end numbers released by the Environmental Protection Agency, the total volume of nearly 1.1 billion gallons is a record for the industry. The number exceeded the 800-million-gallon target required by the EPA's Renewable Fuel Standard. The previous record for biodiesel production was about 690 million gallons in 2008.

The industry's success in 2011 comes after Congress reinstated the fuel's $1-per-gallon tax credit in December 2010 and as the EPA's RFS program for biodiesel completed its first full year. Without those policies in place in 2010, production dropped dramatically as dozens of plants shuttered and thousands of people lost jobs.

The tax incentive expired on Dec. 31, 2011, and the biodiesel industry is urging Congress to reinstate it. In addition, the industry is calling on the EPA and the Obama administration to finalize the EPA's proposal to boost the biodiesel volume requirement under the RFS to 1.28 billion gallons in 2013.

"Our success clearly demonstrates that the biodiesel tax incentive and the Renewable Fuel Standard are working just as Congress envisioned," says Anne Steckel, vice president of federal affairs for the National Biodiesel Board. "Our industry is creating jobs, reducing our dependence on imported fuel, and improving the environment."

A recent economic study commissioned by NBB found that biodiesel production of 1 billion gallons supports 39,027 jobs across the country and more than $2.1 billion in household income. An additional 11,698 jobs could be added between 2012 and 2013 alone under continued growth in the RFS and with an extension of the biodiesel tax incentive.

"Now is not the time to be second-guessing the RFS or eliminating the biodiesel tax incentive," Steckel says. "We're proving that the policies work, that American innovation and competitiveness can pull us away from our dangerous dependence on imported fuel. Just as President Obama said in his State of the Union this week, we need to stay the course to continue creating jobs and building America's energy capacity."