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California Biodiesel Alliance News

California's Biodiesel Industry Trade Association  

September 2014     

In This Issue
Registration Now Open for 2015 California Biodiesel Conference
FREE EVENT: Bay Area Clean Cities Biodiesel Summit: Oct 7th, SF
How Three Biodiesel Companies Defy the Odds in a Challenging Industry
Three Individuals Arrested in Organized Theft Ring of Used Cooking Oil Convicted of Felony Grand Theft
Farmers Fueling Fleets: Biofuel Powers U.S. Navy
US Army Corps of Engineers Powers Floating Plants with Biodiesel
REGULATORY AND POLICY ISSUE UPDATES
CBA WELCOMES NEW MEMBERS

,

 

CBA's February 4th, 2015 California Biodiesel Conference registration is now open! We are pleased to announce that our conference will be co-located with the 3rd annual Clean, Low Carbon Fuels Summit, to be held the previous afternoon, at the Capitol Plaza Ballroom in downtown Sacramento.

 

Don't miss this free fleet-focused event: The Bay Area Biodiesel Summit will bring industry experts from around the country to speak in San Francisco on October 7th.  

 

The lead article is about how companies in the region are coping with the challenges caused by regulatory uncertainty related to RFS, the biodiesel tax incentive, and LCFS. The details of our industry's efforts on those issues and more are detailed in the policy section below.

 

This issue includes two articles about the use of biodiesel by the world's largest consumer of petroleum fuels, the U.S. Department of Defense, both with a California connection. Read what retired U.S. Navy Rear Admiral Len Hering, biodiesel pioneer par excellence, has to say and learn about the Navy's plans to launch the "Great Green Fleet" in 2016.

   

    

To view back issues of this newsletter and CBA Email Alerts 

click on the "View CBA Email Newsletter Archive" button on our Home page.   

 

THE   CALIFORNIA   BIODIESEL   ALLIANCE
 PRESENTS   THE   2015

All New Conf Logo

Understanding the Unique Benefits and  

Regulatory Landscape of Biodiesel - California's Advanced Biofuel

 

Wednesday February 4, 2015  

Capitol Plaza Ballroom, Sacramento 

 

As an advanced biofuel, biodiesel is a key element in the success of our nation's efforts to combat climate change under the EPA's Renewable Fuel Standard because it lowers greenhouse gas (GHG) emissions by at least 50 percent. In California, where a greater percentage of biodiesel is made from second-use feedstocks, biodiesel's even lower GHG emissions is an important part of the state's success under its bellwether carbon reduction program the Low Carbon Fuel Standard.

 

And biodiesel's benefits just keep coming . . .

 

Join us at our 4th annual California Biodiesel Conference for a showcase of biodiesel's profile as a sustainable, cleaner burning alternative fuel bringing health and economic benefits to California, including those communities most in need.


Bay Area Clean Cities Biodiesel Summit

 

Golden Gate Bridge   

Tuesday, October 7, 2014

10:00 AM to 2:30 PM

SF Main Library

Koret Auditorium and Conference Rooms A & B, lower level

100 Larkin Street, San Francisco, CA, 94102

 

 

DON'T MISS THIS FREE EVENT 

 

 

 

The California Biodiesel Alliance and the National Biodiesel Board (NBB) have joined with the Bay Area Clean Cities Coalitions to bring you this important informational summit. With a focus on what fleet managers need to know about biodiesel and renewable diesel, this half-day event will take place in the heart of San Francisco. Experts from around the country will talk about technical issues, the regulatory environment, fuel sourcing, and more. You'll have an opportunity to hear success stories from some of the largest entities in the world using biodiesel in their diesel fleets and ask questions of those with extensive experience. Speakers include:

 

o    Dolores Santos, Fuel Supply Expert, Oil Price Information Service

o    Don Scott, Director of Sustainability, NBB

o    Eric Bowen, Vice President, Renewable Energy Group

o    Keith Kerman, Deputy Commissioner of NYC Dept. of Citywide Admin. Services

o    Marty Mellera, San Francisco Municipal Transit Agency (SMTA)

o    Scott Fenwick, Technical Director, NBB

o    Shelby Neal, Dir. of State Gov. Affairs, NBB

 

 

View the agenda and Register for this free event at:  

http://www.sfenvironment.org/sites/default/files/fliers/files/sf_biodiesel_summit_agenda.pdf.  

 

(GREEN BIZ.COM)

 

How Three Biodiesel Companies Defy the Odds  

in a Challenging Industry

 

  

By Donna Walden and Kelsey McCutcheon Fitzgerald  
Published September 16, 2014

While biodiesel companies across the United States await government decisions on updates to the Renewable Fuel Standard and Blender's Tax Credit, the Western Sustainability and Pollution Prevention Network checked in with three West Coast biodiesel companies for an insider's look at the state of the industry. Of the 297 biofuels companies currently operating in the U.S., we chose three - Pacific Biodiesel, Bently Biofuels and SeQuential Pacific Biodiesel - because they share a feedstock of used cooking oil and a passion for protecting the environment.

In addition, each one of them is standing strong in uncertain times, surviving conditions that have forced many other biodiesel companies out of business. This article will touch briefly on each company, the challenges that they face, their secrets to success, why it's important that the biodiesel industry survive, and what we can do to help the biofuel industry succeed.

How three biodiesel companies got into the biofuels industry

The founders of Pacific Biodiesel, Bently Biofuels and SeQuential Pacific Biodiesel each entered the biodiesel industry for different reasons, but eventually came to the same conclusions: creating fuel from used cooking oil helps the environment, reduces our dependence on fossil fuels and makes good business sense.

Pacific Biodiesel, located in Kahului, Hawaii, is the oldest biodiesel company in the United States. For founders Kelly and Robert King, the impetus for entering the industry was a desire to put a waste product to work by recycling used cooking oil into a fuel source and keeping it out of the Central Maui Landfill. At the time, little was known about the possibilities for biodiesel, so the Kings worked with researchers from the University of Idaho to develop methods for converting used cooking oil into fuel.

They built the first biodiesel plant on site at the Central Maui Landfill in 1995 and have been successfully diverting cooking oil from the landfill ever since. "Last year, we went through the process of figuring out how much FOG (fats, oils and grease) we'd kept out of the landfill," said Kelly King. "It was something like 22 million gallons. For a small island, that's pretty big."

During the past two decades, Pacific Biodiesel has helped to design and build twelve other biodiesel facilities, including plants for Bently Biofuels and SeQuential Pacific Biodiesel on the mainland U.S..

Bently Biofuels, located in Minden, NV, was founded in 2002 by Don Bently, out of concern for rising petroleum fuel prices. "In 2002 Don Bently had the foresight to say that oil was going to get to $100 a barrel," said Carlo Luri, Director of business development for Bently Enterprises. "Oil was trading for about $25 a barrel back then. And that was the historic high, so nobody in their right mind would have even forecast or predicted that oil could have quadrupled in price. It only took five years for that to happen."

Bently, an entrepreneur and industrialist, opened a plant for biodiesel production on his family ranch in 2005. In 2006, he began to market and sell the product in California. Today, the nine-person team at Bently Biofuels sells biodiesel to customers in Northern Nevada and California from fueling stations in Minden, Reno, Berkeley and San Francisco.

SeQuential Pacific Biodiesel, currently operating out of Salem, OR, began production in Eugene, OR, in 1998 as Eugene Biosource. Tyson Keever, one of SeQuential's three co-founders, was initially attracted to the "do-it-yourself" nature of biofuels production. "You could make it at home in your garage," said Keever. "It was just very empowering and tangible."

In 2002 Eugene Biosource became Sequential Biofuels. In 2005, they partnered with Pacific Biodiesel to form a joint venture called SeQuential Pacific Biodiesel. Today, SeQuential Pacific Biodiesel produces more than six million gallons of biodiesel a year at its plant in Salem, and sells fuel from more than 30 retail locations across Oregon and Washington. To date, the company has displaced 10,250,000 gallons of petroleum, offsetting 189,700,664 pounds of CO2 emissions.

Challenges facing the biofuels industry today

As gasoline prices increase, so does the appeal of alternative fuels; and like gasoline, alternative fuel prices can fluctuate based on a variety of political and economic factors.

Biodiesel is currently more expensive per gallon than gasoline and other alternative fuels. One reason for this discrepancy is that the other fuels are better subsidized. The Blender's Tax Credit, which is a fixed $1-per-gallon tax credit given to the first fuel blender of a volume of biodiesel that contains at least one-tenth of one percent petroleum-based diesel fuel, has been inconsistent. Every two years, the Blender's Tax Credit expires and has to be re-authorized by Congress. At the end of 2013, it had not been reauthorized for 2014, according to Carlo Luri of Bently.

"If we don't get that $1 tax credit, it's basically a dollar out of somebody's pocket," said Luri. "Either the customer has to pay $1 more or we have to make due with $1 less. Trying to run a biofuel business with $1 less per gallon for revenue means that most biodiesel companies are operating in the red."

If the Blenders Tax Credit is reauthorized for 2014, companies can be paid retroactively. Luri explained that this has happened several times in the past but there is no guarantee that it will happen again. This uncertainty makes it difficult for many biodiesel companies to compete with the petroleum industry.

"Petroleum subsidies are embedded in federal statutes, so they don't have to go back every two years and ask for them," said Kelly King of Pacific. "All of the renewable fuel subsidies and incentives are short-term. They have to be voted on every two to four years, and that's not conducive to creating an industry where investors want to know what their return on investment is going to be for the next five years."

Luri also described another hurdle that biodiesel producers face: the price of yellow grease (another name for used cooking oil) dropped almost 40 percent between 2013 and early 2014. "Financially, that is very damaging to the companies that are trying to recycle the oil, because you have a fixed contract to buy the oil from the restaurant at a certain price," explained Luri. "Your collection costs are more or less fixed because you're paying salaries, insurance, fuel, depreciation on the trucks, and meanwhile the price that you can sell that oil into the market is down 40 percent."

Limited feedstock is another major challenge facing the biofuels industry, according to Tyson Keever of SeQuential Pacific Biodiesel. Feedstock prices fluctuate dramatically, making it difficult for biofuels companies to maintain a sustainable business operations model. "Go back five years, most of the industry across the country made biodiesel from soybean oil," said Keever. "Today, a lot of new sources of feedstock are coming to market. Corn oil has taken a significant market position, and more fats, oils and greases, recycled cooking oil and tallows are coming to market."

All three companies think that it is unlikely that biofuels would ever replace petroleum because there aren't enough soybeans, corn, or used cooking oil to meet our country's demand for fuel.

U.S. EPA's proposal to reduce the mandatory volume of biofuels blended or sold into the nation's fuel supply for 2014 is another policy change that is expected to have an adverse effect on the biofuels industry. Each year the EPA is required to set standards for the Renewable Fuel Standard program and determine the national volume of biodiesel that will be required. If the EPA were to reduce the required volume of biodiesel for the coming year, this would be the first time the agency scaled back its ambitions since the RFS program began in 2007.

Changes in state policy affect biodiesel companies as well, but the biodiesel industry is receiving some support from the courts. "The petroleum industry, the food industry and other refineries are united in the attack on biofuels, and most of that is focused by attacking the programs that are put in place to incentivize biofuels," said Carlo Luri of Bently. "In California, the Low Carbon Fuel Standard is under attack, and at the federal level the Renewable Fuel Standard. In the last 8 or 10 months, there have been a number of rulings coming down from the courts of appeals that are standing in support of renewable fuels. So the attacks are there, and they do have an impact, and it tends to slow things down and stall things and sometimes impact prices."

Stay local 
To remain in business during these tumultuous times, each of the three companies shared a common strategy: stay local.

"Our strategy has been to focus on a community-scale model, with an emphasis on being able to compete without tax credits," said Tyson Keever of SeQuential Pacific. "We have a large used cooking oil collection company where we go direct to the back door of the restaurant. We try to stay within 500 miles of our production facility. We sell most of our fuel as locally as we possibly can, and as far down the fuel-shed as we can to the end user."

Kelly King, operating from a small island in the mid-Pacific, concurred. "You've got to look at your local resources," said King. "You don't want to be shipping feedstock from the other side of the country, or from outside the country.

We always focus on 'local is better', 'smaller footprint is better.' It's better for the environment, it's better for the economy, and socially it's better because people have jobs locally."

At Bently Biofuels, which was founded on the principal of self-sufficient farming, they believe that locally-produced fuel provides great benefits to the community, including cleaner emissions, proper disposal of waste, displacement of petroleum and domestic energy security. The more fuel we can make locally, the less we need to obtain from unstable parts of the world, like the Middle East.

Unexpected benefits of biodiesel 
Biodiesel's economic impact includes helping restaurants to make money by properly disposing of waste.

"We don't often get credit for this, but restaurants have saved millions of dollars, maybe even billions if you look across the nation, from going from the model of paying haulers to pick up their used cooking oil and grease trap oil, to getting paid for it or getting it picked up for free," said King. "Since 2010, we've saved the restaurants on Maui over $1,000,000 in fees. Restaurants are starting to see their waste oil as a commodity, rather than a waste".

In Hawaii, where resources (and landfill space) are limited, biodiesel is especially important because it provides an opportunity to prevent pollution while putting a waste product to good use.

Many biodiesel users see increased business as customers actively look to do business with environmentally friendly companies.

"Since 2006, we have been fueling with 100 percent biodiesel", said Erik Stein, owner of Extended Horizons, Maui's top green dive operator. "Customers seek us out because consumers are now looking for businesses that are actively protecting the ocean and earth. The benefits have flowed to our bottom line as biodiesel burns cleaner than petro-diesel, reducing our engine maintenance costs."

"Converting restaurants' recycled fats, oils and grease (FOG) into biodiesel is a great way to divert waste, reduce pollution and support local businesses," said Asia Yeary from U.S. EPA Region 9. "Communities in Hawaii and elsewhere also benefit from this renewable resource because it significantly reduces asthma-causing soot, sulfur dioxide and greenhouse gas emissions."

Pacific Biodiesel, SeQuential Pacific Biodiesel and Bently Biofuels have successful business models that support their communities, reduce C02 and greenhouse gas emissions, and keep fats, oils and grease (FOG) out of our sewers and landfills. Public awareness is the best way to keep these companies in businesses.

Anyone can use biofuel 
Many people confuse biodiesel with vegetable oil, and believe that only specialized or "converted" engines can use biodiesel. In truth, biodiesel can be used in any diesel engine, if the appropriate blend is selected. Biodiesel can be used alone as "B100" (100 percent biodiesel) or mixed with petroleum diesel and blended into many different concentrations.

According to the National Biodiesel Board, biodiesel blends of 20 percent and below will work in any diesel engine without engine modifications. If the blend has been properly treated by the biodiesel company, it will work year round, even in cold climates. B20 (a blend of 20 percent biodiesel, 80 percent petroleum diesel) provides similar horsepower, torque and mileage as diesel. Blends of 5 percent biodiesel and lower meet the ASTM standards for diesel fuel and don't require any special considerations.

For gasoline-powered vehicles, a different type of biofuel - bioethanol - can be used. The E10 blend (10 percent bioethanol and 90 percent unleaded gasoline) can be used in any gasoline engine. Higher blends require a specialized engine.

Another myth is that using biodiesel will void a vehicle's warranty. The U.S. Department of Energy Handling and Use Guide (page 37) states that federal law prohibits voiding of a warranty just because biodiesel was used.

Biodiesel should not cause engine problems. "We've been using B20 since 2006, averaging a million miles a year on our biodiesel-fueled vehicles, with no issues," said Kelvin Kohatsu, Fleet Administrator for Hawaiian Electric Light Company.

The best way to support the biofuels industry is to use biodiesel in your diesel-powered vehicles and bioethanol in your gasoline-powered vehicles. Use the U.S. Department of Energy's Alternative Fueling Station Locator to find a list of fueling stations around the U.S.

 

   
Three Individuals Arrested in Organized Theft Ring of Used Cooking Oil Convicted of Felony Grand Theft

 

                                                            

By Reno Rendering Company I September 11, 2014                                                                                

                

Reno, Nevada - The three individuals arrested for stealing thousands of gallons of used cooking oil from recycling containers throughout Reno were convicted of felony grand theft on Thursday, Sept. 11 at 9 a.m. in the Washoe County Second Judicial District Court.

 

Oscar Negrete was sentenced to a minimum of 16 months in prison before being eligible for parole and a maximum of 36 months, plus restitution.

 

Frank Bobadilla-Camacho and Alberto Camacho were sentenced to a minimum of 24 months in prison before being eligible for parole and a maximum of 60 months, plus restitution.

 

Restitution is approximately $60,000 and the grand theft felony conviction will stay on the permanent record of all three criminals.

 

On September 18, 2013, Reno Police Detectives arrested 28-year-old Frank Bobadilla-Camacho, 25-year-old Alberto Camacho and 44-year-old Oscar Negrete.

 

Over the course of several months, the thieves stole used cooking oil from locked recycling containers located behind restaurants and other businesses with cooking facilities throughout Reno and Sparks, Nevada.

 

The oil containers belonged to Reno Rendering Company, a company who offers grease management services to local restaurants.

 

The three individuals then sold the oil to a California biodiesel company for profit.

 

"This challenging situation was financially devastating to the Reno Rendering Company," said Ryan Koewler, president of Reno Rendering Company. "We are pleased that these criminals are now behind bars and will serve a warranted sentencing for their actions. In moving forward, it has now become crucial to refocus the way we handle our business by ensuring the prevention of future theft."

 

With yellow grease growing in value as a recyclable commodity, sold by pound and weight, dozens of cases like this are surfacing throughout the United States.

 

In California, legislation that will increase penalties for oil theft (AB 1566) is currently awaiting the governor's signature.

 

In an effort to prevent future theft, Reno Rendering Company is also working with the City of Reno to develop the "Trucked and Hauled Waste Manifest," which would work to more effectively monitor the legal collection and responsible handling of regulated waste streams.

 

Contact: Doug Elmets 

(916) 329-9180   

(FARMS.COM)

Farmers Fueling Fleets: Biofuel Powers U.S. Navy 

 

 

September 5, 2014

 

Far from the heart of soybean country, San Diego-based retired U.S. Navy Rear Admiral Len Hering has a message for the nation's soybean farmers: "You are the warriors of the next war for independence."  

 

The "next war for independence" to which Hering refers is decreasing America's reliance on petroleum-based fuel sources. Hering is all too familiar with this effort himself. While actively serving in the Navy years ago, he began to advocate that biodiesel could and should be used in certain non-tactical vehicles. But it was a tall task.  

 

"It was difficult to convince engineers and others that we needed to embark on that journey," he says.  

 

But his perseverance paid off, and, by 2005, most of the diesel-powered non-tactical Navy and Marine Corps vehicles in the southwestern United States ran on biodiesel.  

 

The U.S. Department of Defense is the largest consumer of fossil fuels in the world. Since soybean oil is the primary feedstock for biodiesel, soybean farmers can take pride in knowing that the oil from the crop they raise each year helps fuel America's military and increase its energy security.  

 

"Biofuels are a bridge moving us away from petroleum-based fuel," says Hering. 

Hering believes it is important for farmers and those invested in the biofuels industry to persevere as well, convincing others that biofuels are a viable alternative to petroleum-based fuel.  

 

"(Biofuels) represent a step in the right direction for the long-term security of the nation," he says. "Fossil fuel is a finite resource. This is an alternative that provides us with continued opportunity and prosperity."  

 

Moving non-tactical vehicles to biofuel products was not the last stop on the path to sustainability for the Navy. It plans to launch the "Great Green Fleet" in 2016, whereby all vehicles involved - ships and aircraft included - will be fueled by renewable fuels. The Navy is not the only branch focused on increased sustainability. The entire U.S. Department of Defense is engaging in sustainable energy technology, says Hering. As one example, in 2010 and again in 2011, Air Force and Navy pilots broke the sound barrier in supersonic combat aircraft powered by a 50/50 blend of biofuel and traditional petroleum fuel, experiencing no noticeable performance differences. 

 

(BIODIESEL MAGAZINE)   

 

US Army Corps of Engineers Powers Floating Plants with Biodiesel



In 2009, an executive order was issued requiring federal agencies to reduce energy consumption, GHG emissions and fossil fuels, and increase renewable energy use. The USACE is using biodiesel to help comply.  
 

 

By Bob Leitch and Tim Welp | September 10, 2014

 

On Oct. 5, 2009, Executive Order 13514 was issued by President Obama requiring federal agencies to develop a plan to reduce energy consumption, greenhouse gas emissions and fossil fuels, and increase use of renewable energy.

One section of the U.S. Army Corps of Engineers is responsible for providing navigable waterways and carries out that mission with approximately 2,300 floating plant assets, including barges, tow boats, floating cranes, survey boats, patrol boats and dredges. USACE planned to meet the requirements of the executive order by reducing ultra-low sulfur diesel (ULSD) consumption and by increasing use of biodiesel on its floating plants.

Since the critical nature of the USACE's mission could require immediate response with all equipment, it was decided that a trial evaluation program of biodiesel on a small scale should be carried out. The evaluation began with four vessels made available by USACE's districts in Baltimore, St. Louis, San Francisco and Buffalo. They ranged in size from a 36-foot drift-collection vessel (BD-5) to a 98-foot debris-collection vessel (Raccoon). The other two vessels were a 75-foot towboat (Pathfinder) and a 52-foot tug (Mike Donlon). Next steps called for training the corps personnel on biodiesel use, assessing fuel delivery and engine components, and developing vessel-specific plans.

Staff training began with participation in a Federal Non-Tactical Vessel Biodiesel Initiative. The FNTV Working Group reviewed proven methods of the National Oceanographic and Atmospheric Administration's Great Lakes Environmental Research Laboratory, which has successfully used B100 in its vessels since 2000. The working group identified nine areas to be watchful for when converting to B100: cold flow properties, material compatibility of hoses and gaskets, microbial growth, energy content, filter plugging, water separation, storage stability, OEM warranties, and cost.  

 

Additionally, three mechanical areas of the four vessels were targeted for pretrial assessments: injectors, valves (especially exhaust), and fuel delivery hoses and seals. Assessments identified the need to install four pad heaters below the external fuel tanks on the San Francisco vessel, replace fuel injectors on the towboat in St. Louis, and install new 10-micron filters on all four vessels and replace them more frequently.

Plans for evaluating B100 usage in field trials were developed and implemented. The performance tests consisted of "run tests" at constant power levels over select water courses, and "push tests" where the vessels pushed against fixed bulkheads. These tests were performed and monitored while the vessels were operating the engines on ULSD, and then repeated while operating on B100. Surprisingly, though fuel consumption differences varied with engine power, they showed that, in general, less B100 was consumed than ULSD at the same power settings. Monitoring of vessels during regular operations using B100 revealed easily correctable mechanical problems. In one vessel the fuel lines degraded; however, this did not reoccur after they were replaced with hoses rated for biodiesel use. Another vessel using B100 experienced fuel filter plugging immediately after being fueled and the reason was not found. After pumping out the fuel, the vessel used several tanks of ULSD and then resumed operations using B20, with no further problems.

The success in the initial field trials led to an expanded study of biodiesel fuel use in an increased number, and more diverse types of vessels, with improved monitoring of fuel consumption and emissions. The expanded study involved 14 corps vessels, different levels of monitoring, and different blends of biodiesel, ranging from B5 to B100. The basic level of evaluation consisted of using biodiesel during normal operations and surveying the crew regarding their opinions on its operational suitability (e.g., delivered power, engine condition, etc.). The crews of the vessels involved in the expanded study were favorably impressed with the reduction in soot and overall cleanliness that came with biodiesel fuel. One operator said, "It puts out less emissions and odor," a plus for someone in the pilot house near the stacks.

The maintenance personnel liked the cleaner appearance of the insides of the engines when using biodiesel and one mentioned a potential for reduced maintenance with B100. There were no maintenance issues associated with using biodiesel; however, all vessels took the precaution of increasing the frequency of replacing fuel filters when they switched to biodiesel. None of the vessel operators had issues related to engine power or efficiency, and no instances of adverse effects on routine vessel operations were reported. The fuel usage and costs were reported to be comparable to those for ULSD.

In addition to the field trials, a comprehensive testing project was carried out with two vessels equipped to measure engine power and fuel consumption, equipment installed by the Bristol Harbor Group, a naval architecture and marine engineering company located in Bristol, R.I. Additionally, emissions were measured by the University of California, Riverside's Center for Environmental Research and Technology. The evaluation consisted of running "push tests" for three fuels: No. 2 diesel; B100 soy-based biodiesel and a second-generation/advanced biodiesel, namely a 50/50 blend of an algal-based biodiesel with No. 2 diesel. The algal-based biodiesel was produced by Solazyme for the U.S. Navy and was used in a number of successful field trials, but emissions data were lacking. Testing was conducted and emissions were measured following federal protocols. Compared with No. 2 diesel, B100 showed a 61 percent reduction in soot but the algal-based did not show a reduction. Detailed emission results will be available in a technical report.

In summary, the U.S. Army Corps of Engineers field trials demonstrated the feasibility of using biodiesel fuels by USACE floating plants to increase use of renewable energy and reduce the use of fossil fuels. From February 2011 to April 2014, the total volume of biodiesel consumed was about 3.1 million gallons. Relative proportions for the different blends were B5 at 1.34 million gallons, B10 at 178,000 gallons, B15 at 653,000 gallons, B20 at 848,000 gallons, and B100 at 43,000 gallons. All of the Corps Districts that participated in the expanded study intend to continue their respective use of biodiesel fuel.

Authors: Bob Leitch, Tim Welp
USACE Asset Management Program Manager
Senior Researcher, USACE Engineer R&D Center
robert.b.leitch@usace.army.mil
timothy.l.welp@usace.army.mil

 

 REGULATORY AND POLICY ISSUE UPDATES

French fries Beautiful oil  French fries

       

CALIFORNIA AIR RESOURCES BOARD: ADF RULEMAKING PROCESS
No policy update this month. See CBA's Home page for the latest update.

  

CALIFORNIA AIR RESOURCES BOARD: LOW CARBON FUEL STANDARD (LCFS)

LCFS READOPTION

CBA has submitted public comments responding to the information presented at CARB's August 22nd workshop on their proposed CA-GREET 2.0 model update. The comments support the technical arguments made by the National Biodiesel Board and call for no ILUC values for waste feedstocks and no third-party documentation requirement for non-cooked UCO CI scores. Both letters are available on CARB's 2014 LCFS Re-Adoption Letters webpage under the August 22nd workshop date at:  

http://www.arb.ca.gov/fuels/lcfs/regamend14/2014lcfsletters.htm.   

 

Our industry is monitoring all relevant re-adoption issues and working to get additional information from CARB to complete our own analyses. We will submit further comments on a range of important issues.

  

All related meetings, activities, and workshops can be found here:   

http://www.arb.ca.gov/fuels/lcfs/lcfs_meetings/lcfs_meetings.htm. 

 

LCFS ADVISORY PANEL

The second and final 2014 LCFS Advisory Panel meeting will take place on Monday, October 6, 2014. For more information see the LCFS Advisory Panel webpage:
http://www.arb.ca.gov/fuels/lcfs/workgroups/advisorypanel/advisorypanel.htm.
 

  

CALIFORNIA ENERGY COMMISSION (CEC): AB 118 FUNDING

CEC staff is holding the following workshops on how to find and apply for the Alternative and Renewable Fuels and Vehicle Technology Program (ARFVTP) grant funding process. They hope to reach a broad and diverse set of potential applicants:   

    October 6, 2014 - Oakland
    October 7, 2014 - Los Angeles
    October 8, 2014 - San Bernardino
    October 13, 2014 - Fresno with Live Video Feeds in Modesto and Bakersfield
    October 14, 2014 - Sacramento and online via WebEx

Find details at  http://www.energy.ca.gov/altfuels/notices/index.html.
 

STATE WATER RESOURCES CONTROL BOARD: UST REGULATIONS

No policy update this month. See CBA's Home page for the latest update.

    

CALIFORNIA LEGISLATIVE ISSUES 

We are happy to report that AB 69, a bill to delay the January 2015 date for transportation fuels to come under the state's Cap and Trade program, failed to pass and that AB 278, which would have added unnecessary requirements to the LCFS, which did pass, was vetoed by Governor Brown on September 25th.  

 

Both, AB 1566, a bill making it harder for grease thieves to continue taking their very costly toll on our industry, and AB 2756, to provide for a diesel tax refund to a supplier for that portion of biodiesel fuel removed from the terminal rack as a dyed biodiesel fuel, have passed and are now on Governor Brown's desk

FEDERAL ISSUES

   

Below are updates on some key federal policy issues. Please contact the Washington office of the National Biodiesel Board (NBB) at 202-737-8801 for further details.  

 

With Congress back in recess until after the November elections, the NBB is urging engagement with local members of Congress to educate them on our industry's policy issues, and show them first-hand the impact our industry is having on the local economy.  

 

BIODIESEL TAX INCENTIVE

Senate Majority Leader Harry Reid's vehement pledge to bring the tax extenders package, which includes the biodiesel tax credit, up for a vote this year was widely reported in the industry press. Senate Finance Committee Chairman Ron Wyden (D-Ore.) and ranking member Orrin Hatch (R-Utah) also support tax extenders, something that came up at that committee's recent hearing called "Reforming America's Outdated Energy Tax Code." NBB provided comments to the committee calling for the immediate reinstatement of the biodiesel tax incentive; for it to be revised as a production incentive instead of a blenders incentive; and for incentives that support stability and the long-term growth of renewable fuels.

 

RENEWABLE FUEL STANDARD (RFS)

Continuing our industry's relentless pursuit of higher biodiesel volumes under the RFS, the NBB met with the White House Office of Management and Budget (OMB) and other Administration officials this month. More than a dozen NBB members -- along with several economists and other experts -- shared the best stories, data, and arguments supporting our case that the proposed volume of 1.28 billion gallons would constitute a severe cut and strike a devastating blow to our industry. According to the NBB, Chairman Steven J. Levy said,"We showed the true strength and diversity of U.S. biodiesel and made clear to the Administration that this is pivotal for our industry and for our shared national goals of boosting U.S. energy security, creating jobs and reducing harmful emissions with clean, alternative fuels."

 


CBA WELCOMES NEW MEMBERS
  
 

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If you are reading this and are not yet a member, please join us. CBA offers membership levels with the following annual dues: $25 for students and veterans; $100 for individuals and nonprofit organizations; $500 (Bronze business level); and $2000 (Silver business level). Full voting board level memberships are available by application at $3000 (Gold) or $5000 (Platinum). Our Join Us webpage has details and an easy online membership fee payment process.
   

Membership benefits include:   

  • CBA's Email Newsletter with important industry updates and features about Who's Who in biodiesel in California and Action Alerts when your help can really make a difference.
  • Participation in internal email communications, policy discussions, and legislative and regulatory visits. 
  • Discount on CBA's annual California Biodiesel and Renewable Diesel Conference.
  • Your company's logo and link on our Members webpage ($500 level and up).  
  • Special recognition at events and in publications (Platinum members).    

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Anyone can sign up to get CBA's special Alert emails, which we send out when we need biodiesel stakeholders and enthusiasts to take action on important issues facing our industry. Visit our Home page and add your email address.  

 

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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.    


Best,

Celia DuBose

Executive Director

California Biodiesel Alliance