The present invention is directed to preparing distillate fuel having almost no oxygen and no carbon-to-carbon double bonds. The method comprises passing biodiesel and/or lipids derived from vegetable oils, algae oils, and/or animal fats over a bio-feedstock, or lipids, conversion catalyst that performs the hydrocarbon isomerization function, removes oxygen from the feedstock, cracks off the C3 backbone, and saturates double bonds. The process is a single step process eliminating the need of a separate costly hydrotreating step while producing a renewable source distillate fuel.