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The biodiesel industry suffered a setback when supporters in the U.S. Senate failed to attach an amendment to the recently-adopted Small Business Jobs Act that would have restored the industry’s tax credit.

The Environmental Protection Agency announced last week it wants the U.S. trucking industry to increase its use of biodiesel to 800 million gallons in 2011 from 650 million gallons this year.

Massachusetts has indefinitely suspended a mandate that was to take effect July 1 requiring all diesel fuel and heating oil sold there to be 2% biodiesel.

Massachusetts has indefinitely suspended a 2% biodiesel mandate for fuel and heating oil that was to take effect this month, saying that without the federal tax credit for the producers, the cost of biodiesel would be too high for consumers.

Canadian truckers called on their federal government to junk its plan to implement a national 2% biodiesel mandate, saying that a government study found the cost of the mandate would be nearly five times greater than the benefit.

The Canadian Trucking Alliance is asking that its federal government abandon a plan to adopt a 2% biodiesel mandate for all diesel fuel sold in the country.

The Canadian government formally published a regulation July 20 mandating a 2% biodiesel blend in most provinces.