Biodiesel production in the United States increased through the first nine months of 2017, despite the end of a federal biodiesel blender's tax credit in 2016, according to the U.S. Energy Information Administration.
State and federal incentives have largely pushed the increase in biodiesel production, and while the tax federal biodiesel blender's tax credit expired at the end of 2016, it has returned in the past following a vote by Congress.
The increase of domestic biodiesel production may also be the result of changes in biodiesel import policies from countries such as Argentina and Indonesia. Biodiesel imports from the two countries have increased in the East and Gulf coasts since 2014, with imports from Argentina accounting for almost 20% of biodiesel consumption in the U.S.
In April 2017, the U.S. Department of Commerce launched two investigations into Argentina and Indonesia's biodiesel exports. One investigation found that both countries practiced countervailing duties, subsidizing the production of biodiesel. The second investigation, which is pending, will focus on antidumping, or when a foreign government sells a product below its fair value.
The results of both investigations may result in the price of Argentinian and Indonesian biodiesel imports doubling.
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