“The 2 percent biodiesel mandate will now become a reality because our state’s biofuel producers have reached the first critical threshold established by the alternative energy law I signed last summer,” said the Governor. “Pennsylvania’s producers can now manufacture 40 million gallons of biodiesel a year right here at home.

 

“Last year, Pennsylvania motorists spent approximately $30 billion on fuels produced beyond our borders. Rather than sending that money overseas, we can put it to work in Pennsylvania to support industries that are developing and transporting home-grown biofuels. At the same time, we are helping our farmers and rural communities reap the economic benefits of America’s move toward energy independence.”

 

Including biofuel in diesel fuel will also offer significant environmental benefits, the Governor said. Biodiesel generates fewer air pollutants than traditional fuel, and reduces greenhouse gas emissions by about 50 percent. Biodiesel also has a positive energy balance, meaning that for every unit of energy used to produce a gallon of biodiesel, 3.2 units of energy are gained.

 

The first biodiesel threshold—40 million gallons produced in-state on an annualized basis—was achieved in September, triggering the mandate. Each of these production levels must be sustained and verified over a three-month period by the state Department of Agriculture.

 

The production volumes reported to the department were 3.9 million gallons in June, 2.9 million gallons in July, and nearly 3.2 million gallons in August. The calculation used to determine the mandate trigger is the total gallons produced over a three-month period and then multiplied by four.