EPA Rejects Palm Oil-Based Biodiesel as Acceptable Renewable Fuel The U.S. Environmental Protection Agency (EPA) last Friday ruled that biodiesel produced from palm oil does not qualify for U.S. renewable fuels programs. The agency said that it found that biodiesel produced from palm oil only reduces greenhouse gas (GHG) emissions by 17 percent when compared with petroleum diesel. Since that is below the 20 percent GHG reduction minimum established by EPA, biodiesel made from palm oil will not be eligible to meet blending requirements. The decision is not final, but is likely to be made final this fall.EPA officials reduced the GHG emission level for palm oil-based biodiesel on the grounds that expanding palm oil production to produce bi...