The U.S. biodiesel industry is facing challenges this year to meet the most ambitious biofuel blending mandates on record. The Environmental Protection Agency (EPA) set the ambitious targets in March, with companies that process soybeans into biodiesel increasing production by over 60% this year. Failure could further increase diesel prices. The industry is scrambling to increase output where possible. The EPA estimates that meeting the new obligations will require an actual supply of 6.07 billion gallons this year, exceeding the mandates due to some domestic biofuels being exported or otherwise don't generate compliance credits. Failure to meet these targets will force refiners and other obligated parties to draw on previously generated credits to comply with the EPA quotas, which could raise their prices.