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California Biodiesel Alliance News
California's Biodiesel Industry Trade Association June 2016 |
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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.
SAVE THE DATE
CBA's Sixth Annual California Biodiesel Conference
February 22nd, 2017 -- Capitol Ballroom, Sacramento
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CBA Restructures Membership
Launches Vendor/Service Provider Partner Sponsor Program
Members Only Newsletter and Webpage Coming Soon
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:
CBA MEMBERSHIP AND SPONSORSHIP
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ANNUAL FEES
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CBA MEMBERSHIP |
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ALL MEMBERS RECEIVE
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- 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
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Corporate Membership: Direct Industry Participants
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Direct Industry Participants Also Receive
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Includes producers, importers, blenders of biodiesel or feedstock. Can apply to become a member of the Board of Directors. See rates below.
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Volume sold in CA: < 5mil gal
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$2,500
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1 Comp admission to CBA Events
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Volume sold in CA: 5.01mil - 25mil gal
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$6,000
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2 Comp admissions to CBA Events
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Volume sold in CA: >25mil gal
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$10,000
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3 Comp admissions to CBA Events
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Corporate Membership: Board of Directors
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Board Members Also Receive
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Full voting rights and participation in legislative/ regulatory visits in Sacramento
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Volume sold in CA: < 5mil gal
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$7,500 |
1 Comp admission to CBA Events
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Volume sold in CA: 5.01mil - 25mil gal
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$15,000 |
2 Comp admissions to CBA Events
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Volume sold in CA: >25mil gal
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$25,000 |
3 Comp admissions to CBA Events
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Non-Profit Organizations
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$2,000 |
1 Comp admission to CBA Events
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Educational Institutions
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$500 |
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Individuals
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$100 |
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VENDOR/SERVICE PROVIDER SPONSORSHIP
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ALL SPONSORS RECEIVE
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Partner Sponsor
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Annual Rate |
$2500
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Members-only CBA newsletter and webpage
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FB+Twitter mentions
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Logo on conf brochure, reg page: Visibility by category
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Logo on CBA Sponsor webpage: Visibility by category
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Logo on member meeting invites: Visibility by category
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Silver Partner Sponsor
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Silver Partner Sponsors Also Receive
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Annual Rate
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$6000
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Logo on CBA Home Page: Visibility/s
izing by category
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CBA member meeting: Speak
er 2 min
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Silver conference sponsorship benefits
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Brief topical article in 2 monthly newsletters
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Gold Partner Sponsor
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Gold Partner Sponsors Also Receive
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Annual Rate |
$10,000 |
Logo on CBA Home Page: Visibility/
sizing by category
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CBA member meeting:
Speaker 5 min
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CBA post-conference member meeting: Speaker 5 min
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Gold conference sponsorship benefits
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Brief article in 6 monthly newsletters
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Mention in monthly newsletter
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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.
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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.
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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:
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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.
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CALIFORNIA INDUSTRY NEWS
New Leaf Biofuel Honored at 2016 California Small Business Dayâ„¢
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.
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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.
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