The National Program for Production and Use of Biodiesel aims to partially replace petroleum diesel consumed in Brazil by biodiesel. PNPB costs are subsidized by government and diesel consumers, based on economical, environmental and social benefits. Rules and incentives have been created in order to create a sectoral innovation system congruent with PNPB´s objectives. Nevertheless, PNPB didn´t reach its goals, especially social policy goals. The paper analyzes PNPB by applying public policy analysis methodologies. Top-down and bottom-up approaches have been adopted. Top-down approach investigates PNPB´s conception, focusing Program´s rules and results expected by formulators. Bottom-up approach investigates PNPB´s execution, focusing public/private actors enrolled on PNPB. Shortcomings identified are mainly related to the coordination of public/private actors and the Program´s goals.