A recent article in a Seattle newspaper pointed out the difficulty facing the state of Washington as it tries to start its own biodiesel industry. Farmers tried to raise canola and found growing conditions were not as good as they were in various midwestern states. Adding to their problems, no crusher is currently available within the state to prepare the canola for biodiesel production, the closest one is located in Montana. The question could reasonably be asked, should Washington be trying to supply its own biodiesel?
Biodiesel is definitely a growth area and demand will be moving up rapidly as more state and local governments and various private organizations, too, require the use of biodiesel in their vehicle fleets. This does not logically mean every state needs to produce its own biodiesel any more than thinking we should grow oranges in every state because we all drink the juice. Some states are better situated for producing the fuel as some now have petroleum reserves within their borders. You produce what makes sense.
Biodiesel is a product which benefits the U.S. nationally and as long as markets exist, the fuel can be sold by producers in areas best able to supply it to the entire nation. A national market for biodiesel also supports those producers and means there is less need for incentives to grow the fuel's feedstock, a cost the government need not incur. For a state like Washington to get their industry moving would take expenditures that might never end, supporting an industry otherwise uneconomical given their local growing conditions.
In the rush to move towards biodiesel, each state needs to realistically assess its own situation and not embark on a project better left to other regions of the country.