Trucking companies in California should take note: The U.S. Environmental Protection Agency recently approved a 28% increase in the amount of biodiesel mandated for use in trucks for 2013. The mandate will require the production of 1.28 billion gallons of biodiesel for 2013, which is up for the 2012 mandate of 1.0 billion gallons.
Biodiesel is an alternative fuel made largely from things like soybean oil, used cooking oil, and animal fats. It was the federal Renewable Fuel Standard program for 2007 that required biodiesel to be included in U.S. diesel fuel markets beginning in 2010. The level was set at 800 million gallons in 2011; the first full year compliance was required. The number then jumped to 1 billion gallons in 2012. After that year, it’s EPA’s responsibility to determine how much biodiesel must be blended annually.
This increase in the biodiesel mandate number definitely seems to affirm the U.S. government’s belief that biodiesel is a necessary fuel alternative. It also kind of goes without saying that the mandate also makes the biodiesel industry happy. The increase will keep biodiesel plants across the country cranking out high volumes of their product and even has the potential to create more jobs.
On a related note, EPA recently reported that biodiesel produced from domestic production facilities this past August was just below 100 million gallons. The volume reported for the first 8 months of the year is reported to be 757 million gallons. It seems like the biodiesel industry is having no problems meeting the mandate.
Biodiesel use is definitely on the rise. It’s always a good thing for freight companies in Los Angeles to keep an eye on fuel issues. Our industry is very susceptible to the ups and downs of fuel prices. Freight companies in Los Angeles are also well aware of the fact that Southern California tends to have higher fuel prices than other places of the country. Anything federal or state action on fuel has the potential to strike at the core of our industry.
