Cities across the country are filling their fleets with biodiesel blends, creating an instant market and encouraging investment in alternative fuel. Municipalities that see biodiesel as partial solution to air quality issues are a better economic solution than mandating alternative fuel production.
San Francisco yesterday announced that 40 percent of its diesel fleet vehicles are now using B20, and by the end of the year it will be 100 percent. The City has smartly created a Biofuel Recycling Program that will collect waste grease and cooking oil from area restaurants, something that more cities should copy. Similar fleet changes to biodiesel blends are also underway in Memphis and Ottawa.
Portland has a similar requirement for its fleet, but also requires most fuel stations to offer biodiesel. I'm a firm believer in demand-side economics rather than forcing production without guaranteeing a market. The government can enact quick and efficient change by opening its wallet. This is much better than artificial tax incentives or subsidies that have no economic basis.
