Biodiesel production started in the early 1990's, due to the Clean Air Act and regulations requiring reduced sulphur content in fossil diesel fuels and lower diesel exhaust emissions.

The stimulation of biodiesel development was stimulated further due to: -

- Formation of the National SoyDiesel Development Board (NSDB) – currently known as the National Biodiesel Board (NBB), in 1992.

- The Energy Policy Act of 1992 (EPAct) passed in 1992 which requires that certain fleets purchase alternative fuel vehicles capable of operating on non-petroleum fuels.

- Setting up of more commercial biodiesel manufacturing plants since 1996.

- Introduction of the first retail biofuelling station in June 2001 to serve the public by offering E-85, B-20 and B-100.

- Issuance of the first fuel standard D 6751 for biodiesel fuel bought and sold in the US.

In the US, soybean oil remains the feedstock for biodiesel (approx. 90%) as it dominates about 75% of the vegetable oil market in terms of volume. However, there is also an increasing share of biodiesel produced from other feedstock such as yellow grease, rapeseed oil, cottonseed oil, animal fats, used frying oil and etc.

The ASTM D 6751 remains the specification for biodiesel in the US.                    

Currently, biodiesel is used in 3 primary applications, i.e., B100, B20, and B2.    

In the US, more than 200 fleets are using Biodiesel commercially – federal fleets, municipal fleets. School district fleets as well as public utility companies.