Popularity of biodiesel is growing. Truckstops across the U.S. are carrying biodiesel including major chains such as Loves and Travel Centers of America. Most availability is centered in the Midwest in soybean producing states such as Iowa and Illinois, where a state tax incentive exists in addition to the federal blending tax rebate. Some states require all diesel fuel sold to be blended with biodiesel including Minnesota and Pennsylvania. Availability is increasing on the eastern and western seaboards as well.

According to the National Biodiesel Board (NBB), the U.S. biodiesel industry produced 700 million gallons in 2008, almost ten times the amount just three years before. Since the NBB started tracking biodiesel production in 1999, the U.S. biodiesel industry has produced more than 1.5 billion gallons. Biodiesel has a growing domestic market of diverse users.

Soybean farmers commercialized biodiesel in the mid 1990s as a product for surplus soybean oil. To this day, many farmers grow, crush, and process soybeans into biodiesel, then use the fuel in tractors and farm equipment.

The earliest adopter outside of farming was the U.S. Government. The government embraced biodiesel for use on military bases as directed by The Energy Policy Act of 1992 (EPAct) to reduce our nation's dependence on imported petroleum.

Early adopters also included environmentalists who purchased diesel VW's and Mercedes specifically for use with biodiesel. Biodiesel requires no modification of standard diesel engines, so it provides an easy way to reduce dependency on petroleum.

With the introduction of a $1.00 federal tax credit for every gallon of biodiesel blended with petroleum diesel in 2005, the industry received a major boost. This tax credit brought down the pump cost of biodiesel to compete with petroleum diesel and opened up the market to the trucking industry.

Major commercial production of biodiesel also advanced when ASTM quality standards were adopted. ASTM standard biodiesel meets cold-flow requirements and many other tests ensuring predictable performance in all temperatures and situations.

Some of the largest fleets in the U.S. are now using biodiesel including JB Hunt and Sysco Foods. JB Hunt's fleet of 9,000 trucks regularly fills up with B20 and B11 (11 percent biodiesel) where available. One of the reasons that fleets are incorporating biodiesel into their fuel mix is for a lower carbon footprint.

Biodiesel has 78 percent lower lifecycle CO2 emissions over petroleum diesel, according to a 1998 study by the U.S. Department of Energy and U.S. Department of Agriculture. They study showed that the process of developing soy-based biodiesel, from planting the crop to delivering the finished product, provides a 78 percent reduction in C02 over the process of producing petroleum diesel, from extraction to finished product delivery. This may become an accepted measurement for selling tons of C02 on the voluntary carbon-trading markets, such as the Chicago Climate Exchange (CCX). A recent demonstration by the NBB illustrated that with just seven trucks using biodiesel, a small California-based fleet called States Logistics, was able to reduce CO2 emissions by 72.9 tons in a six month period. Three of the trucks ran B99 (99 percent biodiesel) an four ran B5 (5 percent biodiesel).

State, county, and municipal fleets use biodiesel in utility, maintenance, and emergency vehicles. National Parks including, Glacier and Yellowstone, are using biodiesel year-round in park vehicles to reduce pollutants. Burning B20 (20 percent biodiesel) reduces particulate matter and carbon monoxide by about 12 percent each over petroleum diesel. By fueling with biodiesel, school districts from New York to California have reduced particulate matter (linked to asthma in children by the American Lung Association), thus improving air quality for kids both in and outside the busses.

One of the largest group of diesel users is over-the-road truckers. Support for biodiesel is high and usage is growing among truckers-especially owner operators who choose what fuel they use in their trucks. At the Mid America Trucking Show in March 2009, a survey of 276 drivers showed that 92 percent were familiar with biodiesel, 75.8 percent have a positive impression of biodiesel, 57 percent have at least tried biodiesel, and 94 percent would use biodiesel in the future. The website BioTrucker.com is filled with trucker testimonials on why owner operators use biodiesel. Reasons cover the gamut from energy security to support for American farmers to added lubricity.

In my next blog, I'll cover what to consider when buying biodiesel and where to get it-whether bulk or at the pump.