Biodiesel mandate creates worries

Manufacturers expect higher food, fuel costs
Gannett News Service • July 13, 2008

WASHINGTON - For now, it's ethanol that's under fire. Biodiesel's turn may be coming.

In 2009, the first mandate for biodiesel takes effect. Refiners will be required to use at least 500 million gallons next year and 1 billion gallons annually by 2012.

That could mean higher fuel costs for truckers and higher vegetable oil prices for food processors, and either industry could try to get the mandate rolled back, just as food makers and livestock groups are trying to do this year with the mandate for corn-based ethanol.

"If the mandate results in a significant increase in the price of blended fuel, we will consider applying for a waiver," said Richard Moskowitz, who follows federal regulatory issues for the American Trucking Associations.

Read the full story