Ppine- I don't know about the Carson Valley in particular, but in general, biodiesel is only price competitive because of tax subsidies. It also has significant transportation problems because it is not transportable in pipelines for a number of reasons, mostly due to contamination of biodiesel in jet fuel. Of course, the methanol used to make the biodiesel (Methyl ester of various fatty acids) is overwhelmingly made from petrochemicals.
I tend to agree with the potential for diesel engines in general, as they can be considerable more fuel efficient, but based on my reading, and conversations with people at one of the largest biofuels companies (Future Fuel, Batesville, AR), I believe that biodiesel will remain a niche fuel that will require permanent subsidies to be viable.
I know of a lot of very smart people that have worked hard on a lot of different potential biofuel sources. Barring a major break thru, I can't see how they can ever get past the serious problems involved in scaling them up to replace a significant amount of petroleum.
Just my $0.02 based on 30+ years experience in the chemical industry.