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Biodiesel production sets records

WASHINGTON -- U.S. biodiesel production reached a new monthly high in June of 81 million gallons, marking a third consecutive month of record volumes.

Biodiesel production in the first half of 2011 has already eclipsed production for all of 2010, according to the EPA.

Thanks to government subsides and incentives, the biodiesel industry is on track to produce at least 800 million gallons this year, more than double biodiesel production of 2010.

Since the introduction of the $1-per-gallon biodiesel tax credit in 2005, U.S. biodiesel production climbed steadily until 2010, when Congress allowed it to lapse temporarily.

Congress reinstated the tax incentive in December 2010.

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