California Biodiesel Alliance News
California's Biodiesel Industry Trade Association
As we go to press, the California Supreme Court has just upheld the states' Cap and Trade program by refusing to review lower court findings in a 4-year legal challenge by business groups. The groups had unsuccessfully argued
that the auctions are an unconstitutional tax because AB 32 was not originally passed with the two-thirds vote required for taxes under the California Constitution.
This legislative season, the effort to achieve consensus to protect and extend Cap and Trade from 2020 to 2030 with a
vote has reached a fever pitch. This is a major goal of Governor Brown and a tough one, as it comes on the heels of the contentious vote to raise the state's gas tax. Many entities have weighed in, including key NGOs with whom CBA works closely on defending the state's climate policies, especially the LCFS. Importantly, CBA as part of the Biofuels Initiative Coalition sent a letter to legislative leadership stating that we support reauthorization of Cap and Trade only if language is included prioritizing funding for biofuels and other projects that focus on real emissions reductions. We begin this issue with that letter.
We bring good news in the Rocky Mountain Farmers Union v. Corey lawsuit against the LCFS, which began in 2009 and has been to the steps of the U.S. Supreme Court and back.
Along with the other news and updates, we are happy to print a special article by CBA Silver Partner Sponsor Baker Commodifies.
See how our industry is celebrating the Fourth of July in the article below from the National Biodiesel Board (NBB).
salutes the great staffers at the NBB who are being honored for milestones of service, and we thank them for the sustained, expert help they've provided over the years to our state! Also, per our ongoing work with the NBB on federal issues, please see their report on the recent Capitol Hill visits and the Action Alert on the tax credit in the Policy section (federal) below.
NOTE ON CALIFORNIA VERSUS THE FEDERAL GOVERNMENT ON CLIMATE CHANGE ISSUES
: It has been widely reported that Governor Brown met with President Xi Jinping at the recent Beijing Clean Energy Ministerial conference and held a press conference with the German environment minister on post-Paris Agreement issues the day after he got back to California. By contrast, at the same conference in China, U.S. Energy Secretary Rick Perry met with Chinese Vice Premier Zhang Gaoli, whose position is several rungs below Xi. Brown focused on climate change and gave dozens of speeches there. Perry had two public appearances and used the words "carbon-restrained," not "climate change."
Back Issues of this newsletter are available in the Archives on our Members Only webpage.
CBA Stands with California Biofuels Coalition in Bold Approach
to Cap and Trade Reauthorization
June 6, 2017
The Honorable Kevin de León The Honorable Anthony Rendon
President Pro Tempore Speaker
California State Senate California State Assembly
Sacramento, CA 95814 Sacramento, CA 95814
Re: Cap & Trade Reauthorization
Dear President pro Tempore de León and Speaker Rendon:
We are writing on behalf of the California Biofuels Coalition, representing the State's biofuels and bioenergy industries - including more than one hundred private companies and public agencies across the state - to urge the Legislature to reauthorize California's Cap and Trade program with a 2/3 vote and include language to ensure the program provides the climate change, air quality and economic benefits that California's climate programs can achieve. Our industries have been strong supporters of California's climate change and clean energy programs, and played a critical role in the passage of SB 32 last year.
Collectively, our members include most of the state's biofuels producers, waste haulers, solid waste agencies and wastewater treatment facilities. Biodiesel, biomethane and ethanol provide more than 60 percent of all Low Carbon Fuels under the Low Carbon Fuels Standard (LCFS) program. According to the California Air Resources Board, biogas and bioenergy are also critical tools to reduce Short-Lived Climate Pollutants, the most urgent step we can take to address climate change since it is one of very few steps that can begin to reverse climate change and its impacts immediately.
In addition to reducing methane, CO2 and black carbon from organic waste and diesel exhaust - biodiesel, biogas, biomethane and ethanol can also reduce the largest source of air pollution in the South Coast and San Joaquin Valley Air Districts, which are heavy duty trucks running on diesel. Diesel powered heavy duty trucks are the single largest cause of smog-forming pollution and Toxic Air Contaminants in both of California's extreme non-attainment districts. Using biodiesel, biogas and biomethane in ultra-low emission trucks can cut air pollution by more than 90 percent and greenhouse gas emissions by 130 to 370 percent. These are far greater climate and air quality benefits than electric vehicles can provide and, in the most polluting heavy-duty vehicle sector, there is no electric vehicle option.
The LCFS program is helping to drive the development of these low carbon and carbon negative fuels, which is why our industries fought hard to secure the critical votes on SB 32 last year. ARB's Low Carbon Transportation fund, however, has provided no money to in-state biofuels production and, overall, the GGRF has had little focus on the reduction of Toxic Air Contaminants and Short-Lived Climate Pollutants outside the dairy sector.
Our industries would like to support a Cap and Trade Reauthorization bill, but cannot do so unless it includes specific criteria that prioritize funding for immediate, cost-effective measures to reduce greenhouse gas emissions, especially Short-Lived Climate Pollutants, and helps to spur additional biofuels and bioenergy development. We also urge the Legislature to authorize use of funding for research and development to further the state's emission reduction goals.
We appreciate your consideration of our concerns and look forward to working with you to achieve California's climate change goals.
cc: The Honorable Cristina Garcia, Chair, Assembly Natural Resources Committee
The Honorable Bob Wieckowski, Chair, Senate Environmental Quality
The Honorable Holly Mitchell, Chair, Senate Budget Committee
The Honorable Phil Ting, Chair, Assembly Budget Committee
California Air Resources Board, Short-Lived Climate Pollutant Reduction Strategy, released March 2017.
California Air Resources Board, Executive Order A-021-0630 on Cummins, Inc., certifying that Cummins' 8.9L engine achieves .01 grams NOx. (Order signed September 10, 2015)
LCFS Continues to Survive Legal Challenges in RMFU Case
In 2011, U.S. District Judge
Lawrence O'Neill of Fresno ruled in favor of the American Fuel and Petrochemical Manufacturers (AFPM) and the Rocky Mountain Farmers Union (RMFU), who argued that California's Low Carbon Fuel Standard (LCFS) violates the Commerce Clause by discriminating against interstate commerce. He blocked
enforcement of the law
Then in 2013, the U.S. Ninth Circuit Court of Appeals reversed Judge O'Neill's 2011 ruling and
quickly allowed the state to resume LCFS enforcement
. This decision in the Rocky Mountain Farmers Union v. Corey case rejected the arguments of LCFS opponents that the full lifecycle analysis used to assign carbon intensity scores of transportation fuels (including where and how fuel is produced and transported) discriminates against out-of-state ethanol.
The Ninth Circuit Court issued this stunning warning about the danger to our state from climate change: "If GHG emissions continue to increase, California may see its coastline crumble under rising seas, its labor force imperiled by rising temperatures, and its farms devastated by severe droughts."
Of course, that was a temporary win for the LCFS. The case was remanded back to the lower court, with the possibility that it would be appealed to the very highest court. In June of 2014, the U.S. Supreme Court
asking it to review and reverse the Ninth Circuit Court's decision.
On June 16th, 2017, the same judge,
Lawrence O'Neill, heard the case and rejected the main arguments that the LCFS conflicts with the Renewable Fuel Standard (RFS) and violates the Commerce Clause by discriminating against out-of-state ethanol producers.
In this latest opinion, Judge O'Neill said that states have the right to enact legislation more restrictive than federal rules, per the 2007 Energy Independence and Security Act. He stated, "The LCFS therefore does not conflict with the RFS's goal of reducing [greenhouse gas] emissions. If anything, the programs are complementary."
Ironically, O'Neill also quoted from the
Ninth Circuit's findings when it reversed his earlier decision stating, "There was no protectionist purpose, no aim to insulate California from out-of-state competition."
However, referring to the plausibility that the LCFS may discriminate against Midwestern ethanol producers, he is allowing for a further legal challenge, which parties must file jointly by June 30th.
Special article by Silver Sponsor Baker Commodities
RENDERING: THE ORIGINAL RECYCLING INDUSTRY
By Jimmy Andreoli II, Asst. V.P., Public Relations
In the past, Baker Commodities, and all rendering companies, were known as the "Invisible Industry" because what the companies did, and still do, is mostly unseen by the public. Most people that purchase their meats from the local grocery store only see the finished, packaged meats. What the public doesn't see is that less than 50% of an animal's body sent to be processed into food for the public is what actually gets packaged. The remaining 50% of the animal is destined for renderers for processing.
The Rendering Process
The rendering process is not a complicated one, but it does have steps that are taken to ensure that products are of a high quality and safe. The raw materials we receive are inspected and placed into a sizing processor to provide a uniform size prior to the cooking procedure. The raw material is cooked to a temperature that releases the animal fats and water from the protein of the meats, and acts as a pathogen kill step to ensure a safe product. The fats are separated from the water and sent to further processing to meet FDA requirements for animal feed. The solid proteins are pressed to remove as much fat and water as possible and then the fat and water go through the separation process. All waters are processed for release to municipal treatment facilities.
Rendered Fats As Feedstock for Biodiesel
According to the National Rendering Association (NRA) and National Biodiesel Board (NBB), rendered fats and oils in 2016 account for 30% of the feedstock used in biodiesel and renewable diesel production in the U.S. The breakdown for this 30% is: 14% animal fats and 16% Used Cooking Oil (UCO) from the rendering process. The fuels made from these feedstocks are completely sustainable because they are created by using by-products as a feedstock instead of relying on virgin materials.
And, as the NRA points out, supplies of biodiesel can be renewed indefinitely because rendered fats and oils/greases are a natural by-product of the U.S. animal agriculture sector. Animal fat-based and UCO-based biodiesel and renewable diesel fuels are truly recycled and renewable alternative fuels.
Animal fats are also appealing feedstocks for biodiesel because their cost is much lower than that of virgin vegetable oils. These recycled feedstocks from rendering are being made into high-quality biodiesel that meets ASTM specifications. They go much farther than just making a great alternative fuel that is sustainable. The fuels from rendered feedstocks have a lower overall GHG footprint. From the time that the feedstocks are recovered as raw materials to be taken to the rendering facilities for processing, and continuing through the fuels manufacturing processes, these fuels are being made with less energy effort than from virgin sources.
The End Result
According to the NRA, if all animal byproducts were allowed to decompose in landfills, compost piles, or buried, and if the carbon in these byproducts was released as CO2, the impact would be the same as adding 3,201,986 cars to the nation's roads (using the EPA estimate of 5.46 metric ton per car). They also point out that if 20% of the carbon in decaying organic material is expressed as methane and 10% of the nitrogen is expressed as nitrous oxide, then removing these products from the waste stream (because these greenhouse gasses have global warming potentials that are substantially greater than CO2) would be the same as removing 12,263,316 cars from the nation's roads.
This is a huge benefit to the environment and to society at large. Baker Commodities has been proud to have been providing these essential services for the last 80 years and looks forward to providing them for many, many more!
Environmental Entrepreneurs Issues Report
on California's Clean Energy Jobs
SACRAMENTO (June 19, 2017) - More than 519,000 Californians work in the clean energy sector, according to an analysis unveiled today by the national, nonpartisan business group E2 (Environmental Entrepreneurs).
Additionally, California's climate policies, including cap-and-trade, have driven $45.5 billion in clean economy investments in the state while half of the $1.2 billion implemented via California's cap-and-trade program benefits disadvantaged communities.
The analysis - available
- is based on data from the U.S. Bureau of Labor Statistics and the U.S. Department of Energy, as well as a comprehensive survey of thousands of businesses across California. It includes jobs in industries like energy efficiency, wind and solar. The analysis also details expenditures from the state's cap-and-trade program, as well as other investments stemming from other California climate policies.
The analysis comes as Gov. Jerry Brown pushes the state legislature to extend California's historic cap-and-trade program beyond 2020. If passed, the legislation would help grow California's clean energy economy by ensuring California hits its target of slashing carbon emissions 40 percent below 1990 levels by 2030.
"With $45.5 billion being invested into California, we've shown that climate policies strengthen our communities - both environmentally and economically,"
said Assemblyman Eduardo Garcia, who represents
spanning the Imperial and Coachella valleys.
The top 10 California counties for clean energy jobs are: Los Angeles (117,000 jobs), San Diego (61,500), Orange (45,200), Santa Clara (34,300), Sacramento (23,700), Alameda (22,100), Riverside (20,500), San Bernardino (19,800), San Francisco (18,200), and Contra Costa (13,300).
The top 10 metro areas are: Los Angeles-Long Beach-Santa Anna (161,400 jobs), San Francisco-Oakland-Freemont (72,200), San Diego-Carlsbad-San Marcos (61,100), Riverside-San Bernardino-Ontario (40,100), Sacramento-Arden-Arcade-Roseville (38,500), San Jose-Sunnyvale-Santa Clara (34,000), California's Combined Non-Metropolitan Areas (18,700), Oxnard-Thousand Oaks-Ventura (10,900), Santa Rosa-Petaluma (9,400) and Santa Barbara-Santa Maria-Goleta (8,900).
A new statewide fact sheet available
provides a snapshot of California's clean energy economy.
E2's analysis also includes a detailed breakdown of the clean energy economy - from jobs to investments to emission reductions - in every
and Assembly district in the state. (Assembly district analyses:
Highlights from E2's analysis:
- About 519,500 Californians now work in clean energy, including renewable energy, energy efficiency and clean vehicles.
- In the past 10 years, California's climate policies, including cap-and-trade, have driven $45.5 billion in clean economy investments - from both the public sector and matches from the private sector.
- Half of the $1.2 billion implemented via California's cap-and-trade program benefits disadvantaged communities.
- Looking at specific parts of the state:
- About 99 percent of cap-and-trade funds directed toward Assemblyman Raul Bocanegra's district ( 39) north of Los Angeles benefit disadvantaged communities.
- In Assemblywoman Cecilia Aguiar-Curry's district ( 4) covering Napa and Davis, nearly $900 million has been invested in clean energy, transportation and climate projects. There are 10,400 clean energy jobs in the district, which ranks No. 6 in the entire Assembly when it comes to the total number of in-district renewable energy projects, with 12,494.
- The 3,900-plus projects under the cap-and-trade program in Assemblywoman Catharine Baker's district ( 16) in the East Bay have helped slash greenhouse gases emissions by 193,130 metric tons.
"In every corner of the state, California's climate action has proven to be a job creator and a big economic boon,"
said Bob Keefe, executive director of E2, which has three chapters in California and about 500 members across the state.
"Especially with the dearth of leadership we now have in Washington, D.C., business leaders and investors - along with rest of the world - are watching and hoping California's lawmakers will do the right thing to keep our clean economy growing."
E2 released a
in August 2016 leading up to the passage of SB32, the bill that extended and strengthened California's emissions targets under the Global Warming Solutions Act. E2's new analysis shows significant increases statewide in the economic benefits of clean energy and climate action.
California business leaders who support extending the cap-and-trade program beyond 2020 are available for interviews.
See the original article with embedded links and graphics
Made in the USA Biodiesel Supports Jobs, Fourth of July Values
America's Advanced Biofuel powers energy independence and clean energy
June 29, 2017
JEFFERSON CITY, Mo. - As the nation celebrates its independence, American-made biodiesel is powering fleets across the country and supporting more
than 64,000 jobs throughout the supply chain.
"Biodiesel showcases the heart of July 4th - American independence. We are proud to deliver a renewable energy source made in the USA that
supports thousands of domestic, green energy jobs," said Donnell Rehagen, National Biodiesel Board CEO. "Our industry is an American success story driving economic activity and independence throughout the supply chain."
There are countless real-life examples of the power of biodiesel supporting America's economic independence and jobs throughout the supply chain. Here are a few:
Biodiesel is made from easily accessible fats and oils. Resources are diverse and readily available. They include recycled cooking oil, soybean oil, animal fats, and more.
- Farmers - Robert Stobaugh farms 6,000 acres of soybeans, corn, rice and wheat in the Arkansas River valley, while at the same time powering his farm equipment with biodiesel. Soy protein feeds the world, while the surplus oil used in biodiesel fuels U.S. energy independence. "The thing I like best about using biodiesel is it powers the equipment that's used to grow the largest feedstock supply used to make biodiesel," explains Stobaugh, an NBB Governing Board member. "I call it full-circle production. Biodiesel creates American jobs and literally drives the American economy as well as the farm economy."
- Restaurants - Asheville, N.C.-based Blue Ridge Biofuels collects over 700,000 gallons of used cooking oil annually from nearly 1,500 restaurants in North Carolina, South Carolina, Tennessee, and Virginia. They use this waste oil to produce clean-burning, renewable biodiesel. "We not only produce and deliver biodiesel, we use it to power our own diesel fleet and many of our employees use it too" said General Manager Woody Eaton.
There are nearly 90 NBB-member biodiesel plants across the
country, collectively producing more than 1.8 billion gallons of biodiesel annually (2016).
Renewable Energy Group, Inc. (
REG), the largest biodiesel producer in the U.S., employs
690 people in the U.S. alone and indirectly supports thousands of other jobs. In 2016, REG produced 513 million gallons of biomass-based diesel in 12 plants, located in eight states. REG's biodiesel production involved 46,616 truckloads across 43 states, 4,995 railcars, and 87 marine vessels.
Quality Control Experts
: Judy Elliott's job is key to the biodiesel industry's commitment to fuel quality. Elliott is one of seven independent auditors contracted with the National Biodiesel Accreditation Commission. Based in Crown Point, Indiana, Elliott audits biodiesel producers, marketers, and laboratories seeking BQ-9000
Producer or Marketer status under the industry's strict quality assurance program.
America is home to 13 labs and eight consulting companies
that assist companies that are seeking BQ-9000 certification.
Fuel Suppliers/Marketers: AMERIgreen is an
energy wholesaler in the Mid-Atlantic and New England markets that provides biodiesel and Bioheat®
through 35 distributors in the region. They also supply fuel to 13 biodiesel retail pumps. AMERIgreen supports over 30 jobs organizationally and dozens more through distribution partnerships. "AMERIgreen works diligently every day to support American jobs, and to deliver the highest quality biodiesel to all of our distribution partners," said Jason Lawrence, Vice President of Operations for AMERIgreen. "We are proud to support our industry this way and we look forward to its continued growth."
These are just a few examples of the dedicated commitment to renewable energy across the biodiesel supply chain.
Hundreds of fleets across the country are powering their vehicles with cleaner-burning, domestically produced biodiesel. Biodiesel users and advocates include the City of New York, Kettle Chips, Method Home Products, Disney, Harvard University, the Super Bowl, the U.S. military, Enterprise Rental Car, Clif Bar, and many others.
Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation's first domestically produced, commercially available advanced biofuel. NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry.
(Advanced Biofuels Canada)
New Comprehensive Data Report on
2015 Canadian B
iofuel Use, Greenhouse Gas Reductions, and Costs
Advanced Biofuels Canada commissions second annual report
with expanded coverage on costs and tax impacts
VANCOUVER, BC, CANADA, June 15, 2017 /
Advanced Biofuels Canada
(ABFC) announced the release today of the most comprehensive study to date of biofuel use in Canada. The study was conducted by Navius Research and follows a study last year by Clean Energy Canada and Navius Research on 2010-2014 biofuel use in Canada.
"Canada lacks the timely, broad, and detailed reporting on the biofuel industry that has aided the growth of low carbon fuels in the US. We know that data is critically important for supply chains and investment decisions to create competitive markets for the production and use of biofuels. This report also aims to inform governments, as they assess the role our industry can play to reduce greenhouse gas emissions and drive clean innovation investments from new fuel regulations, such as the national clean fuel standard," said Ian Thomson, president ABFC.
The study catalogs biofuel blending rates, biofuel types, and feedstocks utilized at the provincial level. Greenhouse gas (GHG) reductions are assessed annually by fuel type, and coverage in this new study now estimates the impact of biofuels on consumer fuel expenditures, GHG abatement costs, and the impact of taxation policies on lower carbon fuels.
Amongst the study's highlights:
- National ethanol consumption rose from 1.7 billion litres in 2010 to 2.8 billion litres in 2015, biodiesel use rose from 110 to 470 million litres, and renewable hydrocarbon diesel (RHD) use grew from 50 to 150 million litres annually in the same period.
- Annual avoided GHG emissions have likewise grown, from 1.8 Mt in 2010 to 4.4 Mt in 2015 (cumulatively 21 Mt 2010 to 2015).
- Biofuel carbon intensities in British Columbia, as reported for its low carbon fuel standard, show that biofuel production is becoming less emissions intensive over time.
- Between 2010 and 2015, blending ethanol, diesel, and RHD with conventional transportation fuels reduced fuel costs in Canada by 0.4%. Other benefits from biofuels, such as reduced toxins in urban air, were not calculated.
- Including the inherent octane value of ethanol, gasoline pool GHG reductions were achieved at a net average benefit (savings) of $101/t, and diesel pool reductions had a net abatement cost of $77/t.
The report also assesses for the first time in Canada the impact of fuel taxes on biofuels. Because biofuels generally have lower energy densities than gasoline and diesel, volumetric (per litre) fuel taxes, such as excise and carbon taxes, create windfall tax revenues for governments and drive up fuel costs for consumers. The resulting tax impact cost to Canadians on the additional fuel volumes was $1.8 billion over the six years of the study period.
The report's detailed cost methodologies show how ethanol's high octane content in widely available ethanol/gasoline blends has moderated overall driving costs. As a result, ethanol blending under renewable fuel mandates reduced annual fuel costs for a typical consumer by an average of $8/year (0.04%). Diesel fuel does not have a comparable value attributed to higher cetane values in biodiesel/diesel blends, and use of biofuels resulted in an estimated annual average fuel cost increase for a typical heavy duty commercial diesel fuel user of $106/year (0.28%).
A broad range of energy and climate action stakeholders have asked Canadian governments to improve the quality and timeliness of energy systems data in Canada. Advanced Biofuels Canada has called upon provincial governments and Ottawa to reform biofuels taxation to address carbon pricing design failures, modify fuel taxes to be based on the energetic and carbon content, and ensure a consistent application of excise taxes on renewable and alternative fuels. "The century-old practice of taxing fuels based solely on volume does not work in a low carbon world", said Thomson.
"Our country and many others have moved into an era of continual, gradual efforts to reduce carbon pollution from transport fuels. The current taxation approach penalizes the fuels we ought to be rewarding, as this report makes clear. Carbon policy should not produce windfall tax gains for government, or unfairly increase fuel prices as the Canadian economy transitions to lower carbon clean fuels."
Advanced Biofuels Canada/ Biocarburants avancs Canada promotes the production and use of low carbon advanced biofuels in Canada, which our members supply across North America and globally. Our members have invested in biofuels processing and supply chain operations across Canada, and are actively bringing to market the next generation of low carbon biofuels. For information on Advanced Biofuels Canada and our members, please visit: www.advancedbiofuels.ca.
Advanced biofuels reduce carbon emissions at least 50% below the fossil fuels they displace, and are made from sustainable biomass. Canada has approximately 750 million litres of advanced biofuel production capacity, and fuels produced in Canada are used across North America and Europe.
See the press release with graphics here.
For more information:
Ian Thomson, President, Advanced Biofuels Canada
+1 778 233 3889, firstname.lastname@example.org,
Advanced Biofuels Canada