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2011 Marks 1 Billion Gallons Plus for US Biodiesel Production

The total volume of nearly 1.1 billion gallons is by far a record for the industry and easily exceeded the 800 million gallon target required under the EPA’s renewable fuel standard (RFS). The previous record for biodiesel production was about 690 million gallons in 2008.

Despite reported setbacks in the renewable energy sector, representatives from the National Biodiesel Board see achieving this milestone as proof that the biodiesel tax incentive and the renewable fuel standard are working just as Congress intended.

“I think our success in 2011 reflects the bigger picture reality, which is that strong energy policy is working to stimulate production of clean, American-made energy, “said Anne Steckel, VP of federal affairs for NBB. “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.

The tax incentive has since expired (again) as of Dec. 31. The industry is calling on Congress to extend the credit.