Industry Drivers and Incentives

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The Energy Policy Act of 2005 mandated that gasoline sold in the U.S. contain greater amounts of renewable fuel (e.g., ethanol or biodiesel). In 2006, the nation's gasoline had to contain at least four billion gallons of renewable fuels.

RFS-2 under the Energy Policy Act of 2005, has been the single most successful clean fuels policy in the United States. This US EPA and California mandates require an estimated over 6.0 billion gallons of biodiesel use annually by 2025.

 The Clean Air Act of 1970 (1970 CAA) establishes federal standards for mobile sources of air pollution and their fuels and for sources of 187 hazardous air pollutants, and it establishes a cap-and-trade program for emissions.

California's Low Carbon Fuel Standard (LCFS), aims to decrease the carbon intensity of California's transportation fuel and provide an increasing range of low-carbon and renewable alternatives in order to reduce petroleum dependency.

  The program in Iowa offers fuel credits to local farmers who fill their on-farm bulk tanks with fuel and use it for agricultural operations. The credits provided are 25 cents per gallon for B11 and 50 cents per gallon for B20 and above. 

 The Illinois Biodiesel Blend Use Requirement

Law mandates that any diesel-powered vehicle owned or operated by the state,  must use a biodiesel blend that contains at least 5% biodiesel (B5) when fueling at a bulk central fueling facility.