Renewable Fuels

Renewable Fuels - Biodiesel

Biodiesel

Ethanol

RICE

SPCC

TWIC Cards

TWIC Readers

State & Regional Issues

Archives

Government Links

Quick facts

Biodiesel refers to the pure fuel (B-100) before blending with diesel fuel. Over 20 countries use commercial biodiesel products, including the United States. Biodiesel is made by separating glycerin from fat or vegetable oil. The highest yield feedstock for biodiesel is algae, however rapeseed and soybean oils are most commonly used for biodiesel production. Other crops used as feedstock include corn, mustard, sunflower, and palm oil.

Biodiesel is biodegradable and non-toxic, and produces significantly fewer emissions that petroleum-based diesel when burned. It is used as a home heating fuel as well as a transportation fuel. It can be blended at any level with petroleum diesel to create a biodiesel blend, and thus can be used in place of petroleum-based diesel in automobiles. In September of 2005, Minnesota became the first US state to mandate that all diesel fuel sold in the state contain part biodiesel, requiring a content of at least 2% biodiesel.

More information on biodiesel may be found on the National Biodiesel Board Website.

Updates, Comments & Other Reports

December 2010 On December 17, legislation was signed into law that reinstates the federal biodiesel blender’s tax credit from January 1, 2010 through December 31, 2011. The reinstatement allows retroactive claims for biodiesel blends created during calendar year 2010. The IRS will issue special guidance on how to file retroactive claims by January 17, 2011. Once the special claim procedures are published, marketers will have 180 days to make retroactive claims for blends created during the 2010 calendar year.

Related ILTA Articles

ILTA provides a monthly newsletter to its membership. Members may log in to the Member Resources page to access archived newsletters. The following is a list of articles ILTA has published in its newsletter relating to Alternative Fuels.

Missouri Considers Biodiesel Blanding Mandate for All Diesel Terminals in the State, March 2008 Issue (p.3)
Biofuels Bill Introduced, June 2006 Issue (p.1)
Chevron Invests in Soy-Based Diesel Fuel, June 2006 Issue (p.6)
EPA Amends Designate & Track Requirements for Non-Petroleum (Biodiesel) Fuel, May 2006 Issue (p.2)
Internet Visionaries Bet on Eco-Fuels: Ethanol & Biodiesel, May 2006 (p.6)
Is Biodiesel Covered by the ULSD Rules? EPA Regulations Say Yes; EPA Staff Says No, April 2006 Issue (p.6)
Renewable Fuel Mandate Requires a New Layer of Reporting & Enforcement Rules, January 2006 Issue (p.3)
Ethanol Mandate, August 2005 Issue (p.1)
House Alternative & Renewable Fuels Bill: Senate Renewable Energy Bill, July 2005 Issue (p.1)