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California Biodiesel Alliance News

California's Biodiesel Industry Trade Association  


June 2016     

In This Issue
We are happy to begin this issue with a warm welcome to sponsor EcoEngineers. 

We lead with an article detailing the July 1st implementation of a new structure for CBA membership and an exciting new sponsor program, first proposed at CBA's Board of Directors retreat last month. These changes reflect the important need of our maturing industry to make a distinction between those who participate directly in the biodiesel fuels industry versus related vendor/service providers, non-profits, and educational institutions. 

This issue includes articles on the CBA/NBB joint comments on ARB's mandatory verification program for the LCFS and what we believe continues to be long-term good news for a major CBA policy effort -- our work on behalf of the California Biofuels Cap & Trade Initiative. The Biofuels Initiative is the coalition effort to secure funding from auction proceeds for in-state low carbon biofuels production.  
Note: First quarter ADF reports are due on June 30th and new final biodiesel carbon intensity scores under LCFS are on target to be released by then. See the policy section on these issues and more. 

Action Alert! Join us in the national effort to get as many comments as possible on the RFS volumes. Click here to do it in under a minute and to learn more.  
CBA's Sixth Annual California Biodiesel Conference 
February 22nd, 2017  --  Capitol Ballroom, Sacramento

Please follow us on Twitter  @cabiodieselorg  and like us on  Facebook.
CBA Restructures Membership
Launches Vendor/Service Provider Partner Sponsor Program

Members Only Newsletter and Webpage Coming Soon

CBA logo
At CBA's Board of Directors retreat in May, the directors discussed the need to restructure CBA membership to differentiate between direct biodiesel industry participants and those who fall into other categories such as vendor/service providers, non-profits, and educational institutions.
Based on those discussions, changes have been made to the membership structure that better align with these differentiations. Key changes include the implementation of corporate membership dues that reflect the level of participation in the California market and the establishment of a Vendor/Service Provider Partner Sponsor program that offers a range of sponsorship opportunities for companies who wish to showcase their support for this booming industry while benefitting from the combined buying power of our industry's members. 

The revamped structure, rates, and benefits become effective July 1, 2016 for new members and sponsors and January 1, 2017 for current members. Beginning with the July 2016 issue, the complete CBA newsletter and key website content will be available to members and sponsors only. 

CBA's Board of Directors will continue to be Corporate members with additional voting privileges and the ability to participate in establishing CBA's agenda and positions on various issues impacting the California biodiesel industry. Annual dues for the new category of Direct Industry Corporate Members will be tied to annual volumes of biodiesel or feedstock (in gallons) sold within California. Direct Industry Corporate Members may apply to join the Board of Directors (application available on our Join Us page).

CBA is excited to reach out to a broad community of industry participants about our new Vendor/Service Provider Partner Sponsor program. Beginning July 1, 2016, this program will offer three levels of sponsorship to biodiesel industry service providers and vendors, including parts and equipment manufacturers and distributors, trucking companies, chemicals and additives suppliers, and accounting, legal, RFS auditing, and other service providers. Vendor/Service Provider Partner Sponsors will have the option to either pay a prorated rate for promotional benefits beginning September 1st through December of 2016 or sign up for 2017 sponsorship and receive complimentary promotional benefits for September through December 2016. See below for more details on the annual dues and promotional benefits for each level of sponsorship. This new program replaces the option of CBA membership for this category of industry participants. 

Revisions have been made for Non-Profit Organizations, Educational Institutions, and Individuals levels as well. The new structure is as follows:



  • Listing, logo, link on Members webpage (except Individuals)
  • Participation in CBA's in-person member meetings
  • Internal email on important industry issues 
  • Discount on CBA events
  • Members-only CBA newsletter and webpage 
Corporate Membership: Direct Industry Participants

Direct Industry Participants Also Receive 
Includes producers, importers, blenders of biodiesel or feedstock. Can apply to become a member of the Board of Directors. See rates below.

Volume sold in CA: < 5mil gal
1 Comp admission to CBA Events
Volume sold in CA: 5.01mil - 25mil gal 
2 Comp admissions to CBA Events
Volume sold in CA: >25mil gal 
3 Comp admissions to CBA Events

Corporate Membership: Board of Directors

Board Members Also Receive

Full voting rights and participation in legislative/ regulatory visits in Sacramento
Volume sold in CA: < 5mil gal
1 Comp admission to CBA Events
Volume sold in CA: 5.01mil - 25mil gal 
$15,000 2 Comp admissions to CBA Events
Volume sold in CA: >25mil gal 
$25,000 3 Comp admissions to CBA Events

Non-Profit Organizations
1 Comp admission to CBA Events
Educational Institutions


Partner Sponsor

Annual Rate $2500
Members-only CBA newsletter and webpage

 FB+Twitter mentions

Logo on conf brochure, reg page: Visibility by category

Logo on CBA Sponsor webpage: Visibility by category

Logo on member meeting invites: Visibility by category

Silver Partner Sponsor

Silver Partner Sponsors Also Receive
Annual Rate
Logo on CBA Home Page: Visibility/s izing by category

CBA member meeting: Speak er 2 min

Silver conference sponsorship benefits

Brief topical article in 2 monthly newsletters

Gold Partner Sponsor
Gold Partner Sponsors Also Receive
Annual Rate $10,000
Logo on CBA Home Page: Visibility/ sizing by category

CBA member meeting:  Speaker 5 min

CBA post-conference member meeting: Speaker 5 min

Gold conference sponsorship benefits

Brief article in 6 monthly newsletters

Mention in monthly newsletter

State Biofuels Funding Remains in a Positive Position 
Despite Not Being Included in June Budget

The state budget that passed on June 15th did not include any funding for an in-state biofuels production incentive because Green House Gas Reduction Fund (GGRF) moneys were not included. The GGRF is the program through which Cap and Trade auction proceeds are allocated. It will be the source of funding for in-state biofuels as requested by the California Biofuels Cap & Trade Initiative, the coalition effort, which was started by CBA and is led by CBA's lobbyist Louie Brown.
The GGRF item is being moved to August. Because it is linked to SB 32, which was recently amended to give the California Air Resources Board (ARB) blanket authority to reduce 1990 GHG levels by 40% by 2030, it remains open to discussion between leadership in the legislature and the Governor's office.
"Funding for biofuels is in a positive position because this line item is not controversial," said Louie Brown. "Our line item is in all three plans -- the Governor's plan at $65 million, the Senate's at $60 million, and the Assembly's at $65 million," he added.
As background, legislative leadership and the Governor are divided on how to proceed with the Cap and Trade revenues. Legislative leadership would like to repurpose some of the 60% of GGRF moneys dedicated to continuously appropriated projects and to consider a two-year spending plan for other projects. These discussions are expected to occur throughout the summer recess. 
The legislature officially adjourns on August 30th for the year. CBA continues its efforts in Sacramento in support of its immediate goals of securing maximum funding for biofuels as part of the passage of GGRF funding this year.

CBA and NBB Submit Joint Comments on LCFS Verification Plan
Call for Exact Mirroring of EPA's RFS QAP
On June 2nd, California Air Resources Board (ARB) staff presented its draft LCFS verification and enforcement regulation  at a public workshop in Sacramento. CBA worked with the National Biodiesel Board (NBB) to submit joint comments. Our industry  argued for a program "identical to the QAP program in terms of structure, but perhaps with several added measures that staff believe would prove beneficial. This type of 'QAP+LCFS' compliance approach would dramatically reduce costs for the industry and California fuel consumers."

T he comments called for a simpler approach that could be handled by an existing Quality Assurance Plan (QAP) service and pointed out that QAP providers can provide LCFS verification services without triggering conflict of interest concerns.

A number of concerns were raised regarding foreign entities. Arguing that ARB should reconsider its decision not to include a bonding provision, which our industry believes is the most effective option, the letter suggested an alternative approach -- to require that third-party verifiers of foreign entities maintain a level of liability insurance higher than the $4 million that had been suggested during the workshop.

Based on concerns about fraudulent feedstock reporting, the comments strongly supported unannounced field audits and the physical verification of feedstocks for high risk contributors. 

The comments also pointed out that the regulatory and financial burdens associated with this regulation with be simultaneous with those of the Alternative Diesel Fuel (ADF) regulation, which will be fully implemented on January 1, 2018, and stated a preference that the LCFS V and M regulation begin January 1, 2019 or later.

See the complete letter among the public comments posted for June 2nd here: 
The next workshop is tentatively scheduled for July 14th. Please check the ARB's LCFS Meetings page to confirm: http://www.arb.ca.gov/fuels/lcfs/lcfs_meetings/lcfs_meetings.htm#06022016

UC Davis Releases Status Review of 
California's Low Carbon Fuel Standard
The Institute of Transportation Studies at the University of California, Davis has released the May 2016 Issue of the Status Review of California's Low Carbon Fuel Standard (LCFS). 
Highlights of the issue include: 
  • From 2011-2015, the average fuel carbon intensity (AFCI) of all alternative fuels reported to the program declined 21 percent, from near 86 grams carbon dioxide equivalent per mega-joule of fuel energy (gCO2e/MJ) to just over 68 gCO2e/MJ.
  • Alternative fuels contributed 6.2 percent of California's transportation fuels by energy content in 2011 and 2012, and reached 8.1 percent in 2015. Fuels other than liquid biofuels comprised 10.9 percent of alternative fuel transport energy in 2014 and 2015.
  • From 2011-2015, the LCFS required a reduction of 9.2 million metric tons (MMT) CO2e from the baseline. The total emissions reductions reported for the same period was 16.8 MMT CO2e, or 7.4 MMT more than required by the regulation (overcomplying by 81 percent).
  • Increases in alternative fuel use came primarily from biodiesel, renewable diesel, biogas and electricity. Use of ethanol, the largest renewable fuel by volume, remained close to a "blendwall" of 10 percent blended with gasoline, the maximum allowed without alternative infrastructure.
  • Total electric vehicle miles traveled (eVMT) in 2015 is estimated to be around 1.3 billion miles based on reported electricity consumption of 431 gigawatt-hours (GWh) or 13 million gasoline gallon equivalent (GGE). None of the 2.2 million gallons (1.5 million GGE) of cellulosic ethanol used in the U.S. in 2015 was consumed in California.
  • LCFS credit prices have shown considerable variation. The average credit price was $20 early in the program (and while the standard was frozen at 1%). Prices have remained above $100/credit thus far in 2016. The overall nominal value of all credit transfers was calculated at $430 million (December 2012-April 2016).
  • Other jurisdictions' LCFS programs, including the European Union Fuel Quality Directive, the British Columbia Renewable & Low Carbon Fuel Requirements Regulation, and the Oregon Clean Fuels Program, share many features with California's LCFS but have distinct provisions as well.
The full report, written by Sonia Yeh and Julie Witcover, can be downloaded here:  

Study Finds Biodiesel Industry Supports Nearly 48,000 Jobs
New Report Comes as Biodiesel Leaders Hit Capitol Hill

June 28, 2016

WASHINGTON - Nearly 100 biodiesel industry leaders are converging on Capitol Hill Tuesday to call for strong clean-fuels policy as a new study found that the industry is supporting nearly 48,000 jobs nationwide.

The study, which was conducted by LMC International, found that the 2.1 billion gallons of biodiesel and renewable diesel used by Americans last year supported $8.4 billion in economic impact across a wide variety of economic sectors, along with 47,400 jobs and $1.9 billion in wages paid.

The report also highlighted how growing biodiesel imports are eating into the domestic industry's production and economic impact. It found that the industry would have supported 21,200 additional jobs last year if all the biodiesel and renewable diesel had been produced domestically. Instead, almost a third came from overseas.

Anne Steckel, vice president of federal affairs at the National Biodiesel Board (NBB), said the study underscores the benefits of strong policy that encourages further development of the domestic industry.

"Ending our dependence on oil is an opportunity, not just for the environment and our national security, but for the economy and for American workers," Steckel said. "This industry is supporting tens of thousands of jobs from coast to coast, and we're just getting started."

Biodiesel - made from a diverse mix of resources such as recycled cooking oil, soybean oil and animal fats - is the first and only EPA-designated Advanced Biofuel to reach commercial-scale production nationwide. According to the EPA, biodiesel reduces greenhouse gas emissions by 57 percent to 86 percent compared with petroleum diesel.

Biodiesel producers, feedstock suppliers and other stakeholders were heading to Capitol Hill Tuesday afternoon to highlight the benefits of strong biodiesel policy. They are calling for higher Biomass-Based Diesel and Advanced Biofuel requirements under the Renewable Fuel Standard (RFS) than EPA recently proposed along with extension and reform of the biodiesel tax incentive slated to expire at the end of the year. The reform would change the $1-per-gallon incentive to a domestic producer's tax credit. Under the current blender's credit, biodiesel imported to the U.S. qualifies for the incentive.

The LMC study, which was commissioned by NBB, found that biodiesel production has a significant positive impact across a variety of economic sectors, including processing and manufacturing, agriculture, transportation, and animal processing.

NBB believes EPA should set stronger volumes of Biomass-Based Diesel under the RFS, calling for at least a 2.5-billion-gallon requirement in 2018.  LMC found, with 2.5 billion gallons of production, the industry would support 81,600 jobs and $14.7 billion in total economic impact if all production were domestic. The impact is 55,000 jobs and $9.8 billion in total impact under a split of two-thirds domestic production and one-third imports.

NBB is the U.S. trade association representing the biodiesel and renewable diesel industries, including producers, feedstock suppliers, and fuel distributors.

To read the LMC study click here.


French fries French fries French fries
New Leaf Biofuel Honored at 2016 California Small Business Day™

By Assemblywoman Lorena Gonzales
(Sacramento, CA- May 25, 2016) San Diego based New Leaf Biofuel was honored by Assemblywoman Lorena Gonzales at California Small Business Day. As Small Business of the Year for District 80, New Leaf Biofuel was celebrated for their hard work and dedication to the community.
Assemblywoman Gonzales had this to say about the honor: "New Leaf Biofuel is helping forge a cleaner, greener future in our communities with local jobs and innovative technology that are reshaping our local economy and pointing the way to healthier neighborhoods in the years to come."
California Small Business Day honored 85 small businesses for their contribution to the state's economy. Small business contributes to 75% of California's gross state product and over half of the state's private sector jobs. From hardware stores to manufacturers, small businesses are a vital part of California's communities and economy.
"California's small businesses are the economic engine of our state," said Betty Jo Toccoli, President of the California Small Business Association. "New Leaf Biofuel was celebrated for their successful small business and contributions to the community."
New Leaf Biofuel converts used cooking oil from local restaurants into biodiesel fuel, a cleaner burning alternative to petroleum diesel.  The company then sells the fuel back to the community, improving air quality in the region while providing good paying green jobs to San Diego's Barrio Logan neighborhood.
"At New Leaf, it is our mission to make our community a cleaner place in which to live and work.  We are honored to be recognized with this very special award for simply doing what we love to do, delivering an alternative fuel option through biodiesel," said President Jennifer Case.
The award was presented May 25th. For more information, please visit www.newleafbiofuel.com.


RADIO IOWA: Iowa's Governor in California, Making Pitch at BIO Conference

Posted June 7, 2016 by O. Kay Henderson

Governor Terry Branstad is in California today, at the BIO International Convention. He's touting a new state tax credit for companies that develop new uses for the byproducts left behind when ethanol and biodiesel are made.

"I went to Montreal last year to tell them that we were proposing it. It passed the House," Branstad says. "This year it passed both the House and the Senate. It's now law, or I guess January 1st it takes effect, but we've already got a number of companies that are looking at it."

Starches, sugars and oils are the left-overs from "biofuel" production. Iowa's new "biochemical tax credit" will provide up to $10 million a year to companies that develop new products from those left-overs.

"I just think this is the next generation of quality jobs that are going to be able to be created because we have this biochemical tax credit," Branstad says. "I want the world to know it and this is a great forum to be able to talk about that."

More than 15,000 executives from companies in the world's biotech and pharmaceutical industries are gathered in San Francisco for the week-long BIO convention Branstad's attending. As Branstad meets with executives considering Iowa because of his new biochemical tax credit, he will pitch the idea of setting up operations on or near existing biofuels plants.

"You know, already you've got the complex at Eddyville where they're making all kinds of products," Branstad says.

Experts say about 30 chemicals left over from biofuel production hold the greatest potential for development.

Branstad will be in California 'til Thursday. Branstad will visit the San Francisco headquarters of McKesson while he's there. Last year, McKesson picked Clear Lake as the site for a new warehouse in its pharmaceutical distribution network. Branstad also plans to make "prospecting" calls on California-based businesses that are considering expansion plans in Iowa.



See article above. 

Very Low Carbon Fuels Investments:
ARB's FY2016-17 Funding Plan, released on May 20th, included $40 million for a "Very Low Carbon Intensity Fuel Incentive," which is part of what CBA has been promoting in our Biofuel Initiative efforts. The board approved the plan at their June 22nd meeting. It is very general, and details will need to be worked out with industry prior to implementation in the first quarter of 2017, assuming the budget is approved. See article above. Information on the plan can be found beginning on page 77 (and by entering "very low" into the "Find" function) of the Proposed FY 2016-17 Funding Plan is here: http://www.arb.ca.gov/msprog/aqip/fundplan/fundplan.htm.


The ADF regulation, which became effective January 1, 2016, includes reporting and recordkeeping requirements applicable to entities in the biodiesel industry. Biodiesel producers, importers and blenders must submit their first quarter reports by June 30, 2016. 
Biodiesel producers, importers and blenders are required to report and keep records concerning biodiesel production, sales, and blending. Biodiesel distributors and retailers are only required to keep records. 
Find the new FAQ and Reporting Forms at: 

The presentation for the 
May 23rd 
meeting, which has helpful diagrams, is here: 

NOTE: Most in-state biodiesel fuel businesses are required to register under the Air Resources Board's Motor Vehicle Fuel Distributor program (MVDP). See the article on our Home page.


ARB staff is on target to certify all biodiesel and renewable diesel (BD/RD) pathways before June 30th, having released the new having carbon intensity (CI) scores to applicants with seven days to approve. The new scores may be used for credit reporting purposes starting with 2016 second quarter reports.

Monitoring and Verification Rulemaking:
See article above.


Solicitations are expected by July 15th. To stay abreast of ARVFTP program news, sign up for the Alternative Fuels List Serve at: http://www.energy.ca.gov/altfuels/2015-ALT-01/.

The 2016-2017 Investment Plan Update for the Alternative and Renewable Fuel and Vehicle Technology Program - Commission Final Report is here:  

An additional $20-$25 million in the Governor's budget proposal for 2016-2017 in biofuel program grants under the CEC's ARFVTP will be the subject of a special workshop, if approved.


DMS is in the pre-rulemaking stages regarding specifications, standards, advertising, labeling and method of sale requirements for fuels, lubricants, and automotive products made by AB 808. The key rulemaking document, the Initial Statement of Reason (ISOR), has not yet been issued. At this time there are no biodiesel-related changes. 

See our  Regulatory Matters webpage for information on compliance issues.   


SB 1402  (Pavley):  SB 1402, which would have outlined the process for spending in-state biofuels incentive funding, was held by the Senate Appropriations Committee last month. The Biofuels Initiative Coalition has been working with ARB to get the concepts of SB 1402 incorporated into the guidelines it is developing for the allocation of the GGRF funds.

AB 2323 (Ridley-Thomas):   AB 2323 would have  require d investor-owned electric utilities to provide a discount rate program to the state's producers of biofuels, hydrogen, and natural gas similar to that offered for electric vehicles. The bill was held by the Assembly Appropriations Committee.

AB 1103 (Dodd):  CBA is satisfied that recent amendments have removed the problematic issues in this bill. We had been concerned about previous language that would have prohibited anyone but waste haulers "duly authorized" by the local jurisdiction from collecting, removing or transporting solid waste. 

SB 20 (Pavley):  The senator has amended SB 20 to establish a Low Carbon Fuels Council. The five-member council would be the coordinating body for state agencies' work related to the acceleration and development of the instate production of low carbon fuels.

SB 32 (Pavley): 
See article above on state biofuels funding. 

NBB Fueling Action Logo
Please contact the Washington office of the National Biodiesel Board (NBB) at 202-737-8801 for questions on federal policy issues. Click on the NBB Fueling Action logo for information.   
Call for Comments on RFS Proposal

The EPA has opened the formal comment period on the new RFS proposal and it's time for biodiesel supporters to make your voice heard!

We are urging all biodiesel supporters to submit comments calling for higher Biomass-based Diesel and Advanced Biofuel volumes. Please encourage your friends, family, coworkers, etc. to submit comments as well. It is critical that we get a high volume of supportive comments to make an impact and show the EPA that the volumes should be higher.

It only takes a minute. We have set up a  page on our website here with a prepared template advocacy letter. The letter is ready to be submitted as-is by simply filling in your name and other information, but we encourage everyone to take a few minutes to personalize the letter with additional information about why you care about higher biodiesel volumes. Consider adding a paragraph on how it impacts jobs and the economy in your local community, or your commitment to cutting pollution, or your concern about our continued dependence on foreign oil.

Once you're done, just click "Submit" and it will go straight to the EPA docket. 

Please check out the website today and submit your comments! If you have any questions, please don't hesitate to contact us at  202-737-8801.

Senate Finance Hearing on Energy Tax Credits 

June 14 - The Senate Finance Committee, led by Sens. Hatch (R-UT) and Wyden (D-OR) held a hearing this morning titled, "Energy Tax Policy in 2016 and Beyond." NBB is submitting a statement for the hearing record, which can be read  here , urging Congress to pass the biodiesel production credit for 2017-2019. Senator Wyden pushed for passage of the energy tax extenders at the hearing today by stating, "The sooner Democrats and Republicans come together, take care of these energy extenders and clear the decks, the sooner we can turn to finding a smarter, fresh approach to energy tax policy." This is a positive step as Congress continues to debate whether to take up tax extenders this year so please continue to call your members of congress and ask them to support a biodiesel tax incentive extension, including the Noem/Pascrell legislation, HR 5240. Talk about the importance of an extension to your local business or organization and also the benefits of reforming the bill as a domestic producer's credit. 

More information, including a more detailed backgrounder on the benefits of a producer's credit and how to reach your representatives, can be found  here on the Fueling Action website .

Thank you for your commitment to biodiesel and for your time and effort on behalf of our industry. I look forward to continuing to work with you.



Celia DuBose

Executive Director

California Biodiesel Alliance