Renewable Fuels Standard (RFS2)
The Renewable Fuels Standard requires advanced biofuel blending by petroleum refiners and importers and is the industry’s significant market driver today.
The U.S. Environmental Protection Agency implemented the law in 2010 and each year sets volume requirements for the amount of renewable fuels consumed in the United States, including biomass-based diesel.
EPA officials last year proposed keeping the volume requirement for biomass-based diesel at 1.28 billion gallons for 2014 and 2015, even though the industry produced nearly 1.8 billion gallons in 2013. The agency is expected to release the final rule soon.
Read more about the RFS2 here.
Federal Biodiesel Tax Credit
The Biodiesel Tax Credit incentivizes blending across all levels of the diesel supply chain. Regional jobbers and truck stops, in particular, have access to more competitively-priced biomass-based diesel, encouraging blending tanks, retail pumps and other infrastructure to be installed.
The federal biodiesel tax credit was first enacted in 2004. Qualified biomass-based diesel blenders or producers are eligible to receive a $1 refundable tax credit per gallon of biodiesel or renewable diesel used or produced during the blending process.
For more information about the federal biodiesel tax credit, click here.