CBA'S SECOND ANNUAL CONFERENCE PROVIDES A WEALTH OF INFORMATION ON DOING BUSINESS IN CALIFORNIA

Over one hundred attendees traveled to the Mirage Hotel in Las Vegas on February 4th to participate in CBA's second annual California Biodiesel and Renewable Diesel Conference. A full day of presentations detailed the exciting market opportunities; state-of-the-art feedstock research; regional collaboration issues; and the significant array of regulatory and compliance issues unique to our state.  

In his opening remarks newly elected CBA President, Russ Teall of Biodico set the tone for the day with a gracious welcome and generous thanks to attendees and sponsors. Eric Bowen of REG, outgoing CBA Chairman, and Curtis Wright of IWP, CBA's newly elected Chairman, shared the stage for the State of the CBA Union giving attendees an overview of the battles we have won, the battles we face and the tremendous potential for the biodiesel market in the state to hit one billion gallons in the next decade under California's Low Carbon Fuel Standard (LCFS).  

Joe Gershen of Crimson Renewable Energy, CBA's Vice President, moderated the first panel after first explaining how the Integrated Energy Policy Report (IEPR) works to guide our state's energy decisions; the importance of LCFS for the low-carbon fuel market; and how the AB 118 funding program creates opportunities for businesses.

Greg Staiti of Weaver & Tidwell presented a compliance-based overview on LCFS detailing his take on the program's facts, upsides, downsides, and questions for the future. Discussing the market for LCFS credits from a brokerage perspective, David Dunn of Progressive Fuels Limited included data on credit price history showing a curve rising steeply since June 2012 and some thoughts about the ability of alternative fuels to meet future demand for credits. Shawn Garvey of the Grant Farm presented a seasoned glimpse into the issues of where to find state and federal funding for clean energy (including AB 118 funds), which is expected to total $250 billion in the next 10 years, and outlined what's involved for those wishing to compete for it.  

Experts on the feedstock front, assembled by CBA Secretary, Doug Smith (Baker Commodities), took over from there. Stephen Kakka of the California Biomass Collaborative delved in the science (and some of the policy issues) required to answer the questions of where and at what price might biofuel feedstock crops be grown on farms in California and how can the true potential of purpose-grown crops and crop residues for biomass energy in state cropping systems be accurately estimated. He discussed the use of multidimensional scaling and cluster analysis in the sophisticated approach to understanding cropping possibilities for precise regions and presented information on his research with Camelina, Meadowfoam, Castor, and Pennycress.  

Stephen Silva of E.B. Wakeman discussed the main issues at play in our state's yellow grease and UCO markets, including those related to seasons, regions, and interestingly, the growth of the "natural" meat industry. Citing the need for additional sustainable feedstocks, Randall von Wedel shared research on prospective oil seed crops and sustainable techniques focusing on varieties of sunflower, safflower, and American joint vetch and ending with next steps for research and scaling up with a commitment to sustainable soils management.

Joe Jobe and Anne Steckel of the National Biodiesel Board (NBB) treated conference participants to lunchtime presentations. Joe touched on a number of national market issues and political challenges but made sure we all knew that when it came to litigation, 2012 saw the 3rd case where the EPA upheld in the biodiesel industry's favor. Anne talked about our industry's success in getting the tax incentive reinstated. Stressing the need to rally the whole of our diverse national membership for the huge upcoming fight for 2014 RFS2 volumes, where we face opposition from the petroleum industry, she asked specifically for our state's help with the California congressional delegation.  

The first afternoon panel, moderated by Eric Bowen, featured a much-awaited presentation by Lex Mitchell, Air Pollution Specialist at the California Air Resources Board (CARB), on the agency's current thinking on pending biodiesel emissions regulations. Detailing options on a path for biodiesel to become the state's first alternative diesel fuel (ADF), the presentation specifically stated that here is room for dialogue on fleet-specific considerations and suggestions in general. Steve Howell of MARC-IV, an expert on New Technology Diesel Engines (NTDE), followed with a detailed talk on the latest NTDE research, which included the finding that "NTDEs resolve potential NOx concerns with B20 blends, even when using CARB like diesel fuel." CARB staffers Jim Aguila, Manager, Substance Evaluation Section, Air Pollution Specialist, and Floyd Vergara, Chief, Alternative Fuels Branch, participated in a discussion. CARB staff participated via Skype. (See lead article above for an important update on this issue.) 

Russ Teall's panel on regional issues began with Peter Moulton, State Bioenergy Coordinator for the Washington Department of Commerce. Peter outlined his state's ambitious biofuel goals, strategies, procurement policies, and next steps in regional leadership, including efforts to develop a regional carbon policy framework. Andrew Hill of Biodiesel Industries Australia spoke about his experience with the highs and lows of that county's version of clean fuel grants, government mandates, quality, and tax issues.

In a brief impromptu statement, Graham Noyes of Stoel Rives, (replacing Atul Deshmane of Whole Energy who was ill and could not attend), urged the broadest possible efforts toward finding common ground and harmonizing state and federal regulations against the threat from the petroleum industry. Spencer Kelly of OPIS presented on his company's methodology for tracking prices for ethanol, biodiesel, RINS, and LCFS credits; factor affecting RIN pricing; the impact of RIN pricing on blending economics; and how carbon Intensity points can be used to calculate the fair market value of biofuels. Carlo Luri of Bently Biofuels pointed out the many contrasts between California and Nevada biodiesel markets and policies from the unique perspective of a biodiesel producer who operates just outside the state border and sells into the California market.

For the last panel of the day, Curtis Wright's panel provided a look at the nitty-gritty details of California compliance issues for biodiesel, the likes of which have never before brought together in one place at one time. Mike Lewis of Pearson Fuels presented an overview of retail requirements from his broad experience in alternative fuels. On the tax front, Dan Olivier of Mueller, Olivier, and Whittaker provided very important detailed information about who needs to pay what to whom and much more. After a disclaimer that to talk about the compliance issues associated with building a plant would take a whole other presentation, Lisa Mortensen of Community Fuels went on to discuss a broad array of compliance issues. She then pointed out that while many industrial regulations don't mention biodiesel specifically, they do in fact regulate biodiesel.

A lively group of CBA members and interested attendees gathered after the presentations at the Open CBA Meeting to meet each other, discuss our organization's volunteer committees, and sign up to get involved before heading off to the joint CBA/NBB reception.  

Our deepest thanks go to the National Biodiesel Board for their generosity in co-presenting with us in 2013. We also wish to thank our sponsors Progressive Fuels Limited, Argus Media, Biodico, and REG for their generous support.

TAKE ACTION!

JOIN CBA IN SUPPORTING AB 8 AND SB 11  

 

Two bills, AB 8 and SB 11, that would extend until 2023 the sunset dates on California's clean transportation incentive programs have been introduced in the California Assembly Transportation Committee.

 

The three programs, which together would provide more than $2 billion in clean air and transportation funding between 2015 and 2023 in the state, are Carl Moyer, AB 923, and AB 118. AB 118 provides $100 million per year for alternative fuels and is a key funding source for the development of the biodiesel industry in California.

 

Please take a moment to write a letter. It's very important that we succeed this year because, even with broad support from a range of groups, this same effort fell just short of passage last fall. CBA's letter of support gives more details on the programs covered under these bills and includes the names and addresses of the Assembly committee members to whom your letters should be sent.

 

Thank you in advance for your help! We will keep you informed about our efforts to support these very important bills as they move through the legislative process. They are scheduled for a hearing in the Assembly Transportation Committee in March, so time is of the essence.