Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...

per gallon to biodiesel produced from recycled grease and animal fats. The program was
started in 2004 under the American Jobs Act, spurring the expansion of biodiesel
production and demand. Historical estimates and future forecasts of biodiesel production
in the U.S. are presented in Table VI.B.1-1 below.
Table VI.B.1-1
Estimated Biodiesel Production
Year Million Gallons per Year
2001 5
2002 15
2003 20
2004 25
2005 91
2006 150
2007 414
2012 303
Source: Historical data from 2001-2004 obtained from estimates from
John Baize “ The Outlook and Impact of Biodiesel on the Oilseeds
Sector” USDA Outlook Conference 06. Year 2005 data from USDA
Bioenergy Program
www.fsa.usda.gov/daco/bioenergy/2005/FY2005ProductPaymen
ts, Year 2006 data from verbal quote based on projection by NBB in
June of 2006. Production data for years 2007 and higher are from EIA’s
AEO 2006.
With the increase in biodiesel production, there has also been a corresponding
rapid expansion in biodiesel production capacity. Presently, there are 65 biodiesel plants
in operation with an annual production capacity of 395 million gallons per year. 55 The
majority of the current production capacity was built in 2005, and was first available to
produce fuel in the last quarter of 2005. Though capacity has grown, historically the
biodiesel production capacity has far exceeded actual production with only 10-30 percent
of this being utilized to make biodiesel, see Table VI.B.1-2.
55 NBB Survey April 28, 2006 “Commercial Biodiesel Production Plants”
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