BIODIESEL BULLETIN A Monthly Newsletter of the National Biodiesel Board May 1, 2003
.SENATE ENERGY COMMITTEE PASSES CRUCIAL BIODIESEL AMENDMENT .WASHINGTON UPDATE .STATE LEGISLATURES PASS BIODIESEL BILLS .IDAHO SHOWS STRONG BIODIESEL GROWTH .INTEREST IN BIODIESEL GROWING AMONG INDIANA SCHOOLS .BIODIESEL COULD HELP MEET EPA OFF-ROAD DIESEL EMISSIONS REDUCTIONS PLAN .CALIFORNIA RENEWABLE PORTFOLIO STANDARD TO INCLUDE BIODIESEL .CROSS-COUNTRY "DRIVE TO SURVIVE" SHOWCASES ALTERNATIVE FUELS .BIODIESEL BECOMES FASHIONABLE WITH L.L. BEAN .BIODIESEL WORKSHOP SCHEDULED IN SIOUX FALLS .BRATNEY TEAMS UP WITH BLUE SUN BIODIESEL AND CIMBRIA SKET SENATE ENERGY COMMITTEE PASSES CRUCIAL BIODIESEL AMENDMENT The Senate Committee on Energy and Natural Resources approved an amendment during markup of the Energy Bill that will ensure biodiesel is treated more like other alternative fuels in meeting federal requirements for government alternative fuel use. The amendment, introduced by Sen. Jim Talent (R-MO) and cosponsored by Sen. Tim Johnson (D-SD), will eliminate the 50 percent cap on alternative fuel credits earned by fleets that must use alternative fuels. With this Amendment in place, fleet managers will be able to earn 100 percent of their EPACT credits with biodiesel if they choose. "This amendment provides a cost-effective option for those who are subject to Department of Energy regulations," Talent said. "Renewable fuels such as biodiesel will assist our producers, increase our energy independence, create American jobs and they are good for the environment." The Energy Policy Act (EPACT) requires federal, state and public utility fleets to acquire a percentage of alternative fuel vehicles or to use biodiesel in at least a 20 percent blend in existing diesel vehicles. However, biodiesel credits were capped at 50 percent. Many fleet managers support the removal of this barrier, including the National Association of Fleet Administrators, who has been a driving force in supporting legislation lifting the cap on biodiesel. The Talent amendment corrects an amendment offered by Sen. Jeff Bingaman (D-NM) earlier. Bingaman's amendment would have capped all alternative fuel use credits at 50 percent. This would have put biodiesel at a disadvantage because biodiesel would have been the only alternative fuel that would not be an option as a single source of EPACT compliance. Other alternative fuels would be able to earn credits for both fuel use and alternative fuel vehicle purchases. The Senate Energy Bill originally contained a provision to allow fleet managers to use biodiesel for 100 percent of their credits. After Committee discussion, Chairman Pete Domenici (R-NM) ruled that Talent's provision be considered passed by voice vote. "There's no question Senator Talent's amendment will have the potential to significantly increase biodiesel sales while providing fleet managers with the flexibility to choose the right fuel for their application," said Joe Jobe, executive director of the National Biodiesel Board. "We're grateful to Senator Talent for recognizing that biodiesel would have been unfairly treated, and for introducing this amendment to remedy the problem." WASHINGTON UPDATE In other Washington news, April brought movement in the energy debate with the House of Representatives completing action on a comprehensive package. The measure includes a Renewable Fuel Standard (RFS) for the first time. However, as expected biodiesel tax provisions were not included. The Senate Finance Committee reported an energy revenue package that does include biodiesel tax incentives. The provisions are very similar to legislation approved by the Senate last year. However, the current package establishes "agri-biodiesel" and provides the same tax treatment for biodiesel made from virgin oils or animal fats. The Senate Energy Committee is scheduled to conclude its consideration of energy policy issues in early May. The policy issues will be combined with the energy tax bill for consideration by the full Senate in mid-to-late May. STATE LEGISLATURES PASS BIODIESEL BILLS As state legislative sessions around the country begin to wind down, six states have passed significant biodiesel legislation. Many of the successful bills focused on tax credits and incentives as a way to lower the end cost to the consumer. "These bills might not have made it without all the biodiesel supporters who called their state legislators over the past month," said Charles Hatcher, NBB regulatory director. "States such as North Dakota had soybean associations who helped tremendously by contacting their own members and asking for support." Arkansas passed SB 363, which provides a 5% income tax credit for "plant and equipment" for biodiesel wholesale or retail distribution. The bill also provides a 10 cent per gallon grant to qualified producers. North Dakota enacted a 10% tax credit for producers or blenders on equipment. The bill also included a 1.05 cent excise reduction on B2 after an 8 million gallon biodiesel production capacity is met. Indiana passed income tax credits for producers, blenders and retailers for the years 2004 and 2005. The producer credit is $1 per gallon of biodiesel produced in Indiana and used to make blended biodiesel (B2-B99). The blender credit (above B2) is 2 cents per gallon if using Indiana biodiesel. The retailer credit is one cent per gallon (no restriction on state production). Kansas took a strong stance, and passed a biodiesel mandate for all state agencies. The bill also restricts to B2 what can be claimed as "biodiesel." Also protecting consumers, South Dakota passed a definition of biodiesel. Legislative testimony revealed some 100 biodiesel outlets already in South Dakota. The state of Washington enacted a larger package of proposals. One provides tax sales, use and property tax incentives for biodiesel production. A second provides a tax incentive for investments associated with distribution and retail sale of biodiesel. The third bill encourages state agencies to use B20, but then becomes a state agency mandate to use B2 starting in June, 2006. Lastly, Washington created a biodiesel pilot project for school transportation using B20 in two school districts for a year. More success stories may be on the way. NBB is tracking 300 bills related to alternative fuels, 70 of which are biodiesel specific. IDAHO SHOWS STRONG BIODIESEL GROWTH A B20 pump has opened in Boise, Idaho, bringing the grand total of public pumps to over 70 nationwide (http://www.biodiesel.org/buyingbiodiesel/retailfuelingsites/default.shtm). It is the second B20 pump to open in Idaho. The first private pump was opened last year in Twin Falls as part of the Idaho Energy Division's on-going B20 development program. At a pump opening ceremony in April, BFI Waste Services of Idaho announced that it will begin burning B20 biodiesel in 15 of the company's recycling trucks that operate in Boise residential neighborhoods. Company officials say it is part of their commitment to air quality efforts in the valley. BFI estimates the trucks will burn about 1,500 gallons of B20 per week. "BFI is part of the local community so we have a stake in helping keep our environment as clean as possible," said Dave Fisher, BFI General Manager. Two emergency response units from the Idaho Transportation Department that operate on Interstate 84 also run on B20. Additionally, in April the City of Nampa became the first city in Idaho to switch its diesel vehicle fleet to B20. Federal General Services Administration diesel vehicles that operate in the Treasure Valley will also begin fueling with B20 at the pump whenever possible. Other Federal agencies such as the Bureau of Land Management, the Forest Service and others are also expected to begin fueling with B20. This fall, the Community Planning Association of Southwest Idaho will launch a special air quality research project in which about 200 Meridian School District buses will operate on B20. The district has run six buses on B20 for almost a year. INTEREST IN BIODIESEL GROWING AMONG INDIANA SCHOOLS Seven Indiana school systems are now powering their buses with a fuel grown in the Hoosier state. The latest to join the elite list of biodiesel users is North Putnam Community Schools, located in a west central Indiana. "There are a number of good reasons to use this fuel. Soybeans are a major crop in this area and we saw this as a way to support our local farmers," said Murray Pride, superintendent for the schools. "At the same time, parents and students have mentioned how the air around the bus is so much cleaner." The North Putnam Schools purchased their fuel supply from Midland Co-op, which is a farmer-owned cooperative committed to supplying biodiesel derived from 100-percent virgin soybean oil. "The biggest benefit by far is the reduction in emissions that they're going to realize and therefore the decrease in the health issues that our children have today," said Kellie Walsh, executive director of the Central Indiana Clean Cities Alliance. Other Indiana schools employing biodiesel include Hammond Schools, East Chicago Schools, Hamilton Southeastern Schools, Washington Township Schools, Lake Station Schools and Munster Schools. BIODIESEL COULD HELP MEET EPA OFF-ROAD DIESEL EMISSIONS REDUCTIONS PLAN The Environmental Protection Agency (EPA) proposed on April 15 to reduce emissions by as much as 90 percent from non-road diesel engines used in construction, agricultural and industrial equipment. The non-road proposal would take effect for new engines starting as early as 2008 and be fully phased in by 2014. This proposal implements similar regulations to those that go into effect for the on-road market in 2007. Biodiesel is a natural choice to help non-road diesel engines comply with EPA's proposal since it is already free of sulfur and has high lubricity. Sulfur damages pollution control devices in engines and the process of removing sulfur harms fuel lubricity. Furthermore, biodiesel offers dramatic emissions reductions in particulate matter and other harmful emissions. Biodiesel used in conjunction with new after-treatment devices may help ease the burden on these devices, or make them last longer. While the EPA decision may serve to encourage biodiesel use in off-road applications as a lubricity component or in higher-blend levels, it will still need to compete with other fuels and additive options. Biodiesel industry priorities, such as the tax incentive currently before Congress, are still vital to the future growth of the biodiesel industry. CALIFORNIA RENEWABLE PORTFOLIO STANDARD TO INCLUDE BIODIESEL The California Energy Commission (CEC) has recommended that electricity produced from the combustion of biodiesel be eligible for the Renewable Portfolio Standard (RPS). If accepted in the final version, electricity generated from the use of biodiesel will be eligible to meet new regulations for increased renewable energy use in power production. The State of California enacted legislation last year establishing the RPS. It will require retail sellers of electricity to increase the renewable content of their energy deliveries by one percent per year over a baseline level as determined by the Public Utilities Commission. The annual incremental procurement is to continue until renewable energy comprises 20 percent of a retail sellerâs energy portfolio. The target deadline for achieving the 20% goal is December 31, 2017. The Committee recommends that electricity produced from the combustion of biodiesel be eligible for the RPS to the extent that the biodiesel is derived from a biomass feedstock such as ãagricultural crops and agricultural wastes and residuesä and consists of no more than 25 percent fossil fuel, or from a "solid waste conversion" process of municipal solid waste (MSW). The CEC will be holding a workshop May 5th to take public comment on the draft report, with full board action anticipated this June. The hearing will begin at 9:30 a.m. PST. The RPS proceedings can be monitored by going to the following California Energy Commissionâs website: www.energy.ca.gov/portfolio/index.html. Comments can be submitted electronically via: [EMAIL PROTECTED] The deadline for submitting comments is May 8th. CROSS-COUNTRY "DRIVE TO SURVIVE" SHOWCASES ALTERNATIVE FUELS The Drive to Survive 2003 launched its cross-country journey yesterday at the Santa Monica Pier led by actor and community leader Dennis Weaver. The Drive to Survive was created by the Institute of Ecolonomics (IOE) to demonstrate the viability and availability of hybrid, hydrogen and alternative fuel vehicles (AFVs). Although no AFV is involved, biodiesel plays a prominent role in the tour. Russ Gehrke, who helped set the renewable fuel land speed record in a race car using B100, is taking part in the Drive in a Dodge pickup fueled by biodiesel. Drive to Survive participants leave Los Angeles today and will arrive in Washington D.C. on May 14, with stops in cities across the country. During its two-week tour the Drive to Survive team will emphasize energy independence and inform the public about developing a hydrogen economy. "During my efforts to campaign for alternatives to gasoline, including hydrogen, I've seen progress toward lessoning our dependence on foreign oil," Weaver says. "However, there is still much change needed, and I'm very hopeful that by developing events like Drive to Survive, we can create a sustainable future for our kids!" With actor Dennis Weaver at the helm in his Toyota Prius hybrid vehicle, the drive team will reach the nation's Capitol May 14, where Weaver will deliver petitions with thousands of signatures to Congress urging lawmakers to make a declaration of energy independence by increasing fuel efficiency, promoting alternative fuels and decreasing our dependence on foreign oil. For a complete list of the Drive to Survive event route, or more information, visit www.drivetosurvive.info. BIODIESEL BECOMES FASHIONABLE WITH L.L. BEAN Outdoor apparel giant L.L. Bean is trying biodiesel on for size in its distribution fleet. The Freeport, Maine-based company has implemented a B20 pilot program. After the initial program, the company will consider following suit of more than 300 other major fleets using biodiesel nationwide. Frontier Energy is supplying L.L. Bean with the fuel. The distributor bills itself as the only full-service supplier of 100 percent and blended biofuels and biolubricants in the state of Maine. The company is hopeful that once L.L. Bean's initial tests are completed, the use of biodiesel might become an integral part of Maine transportation. L.L. Bean, Inc. made a $1 million donation in support of Acadia National Park's propane-powered bus system. The company says conservation, stewardship and responsible outdoor recreation have long been its primary focus for corporate giving. BIODIESEL WORKSHOP SCHEDULED IN SIOUX FALLS National Biodiesel Board President Bob Metz and MARC IV's Leland Tong will lead an in-depth Biodiesel Workshop Seminar June 16 in Sioux Falls, South Dakota. The seminar takes place prior to the opening events of BBI International's 19th Annual International Fuel Ethanol Workshop & Trade Show. The full-day biodiesel seminar will start with the basics but will include enough up-to-date information to interest those with a technical background. The seminar will cover biodiesel markets and benefits, production technologies, quality control, engine and fuel injection issues, distribution and storage issues, experiences of fleet operators and fuel users, tips on organizing a biodiesel project, updates on state and federal incentives, and a look at future industry developments. For more details on the seminar go to http://www.bbiethanol.com/few/agenda/ and click on the Biodiesel 101 link. BRATNEY TEAMS UP WITH BLUE SUN BIODIESEL AND CIMBRIA SKET Blue Sun Biodiesel, a biodiesel company headquartered in Ft. Collins, Colorado (www.goBlueSun.com) has selected Bratney Companies of Des Moines, Iowa (www.Bratney.com) and Cimbria Sket of Magdeburg, Germany to provide engineering, technical and construction services for Blue Sun's biodiesel plant under development in Colorado. The partnership of Blue Sun, Bratney and Cimbria will focus on achieving lower cost production of biodiesel fuel. ------------------------ Yahoo! Groups Sponsor ---------------------~--> Rent DVDs from home. Over 14,500 titles. Free Shipping & No Late Fees. Try Netflix for FREE! http://us.click.yahoo.com/BVVfoB/hP.FAA/uetFAA/9bTolB/TM ---------------------------------------------------------------------~-> Biofuels at Journey to Forever http://journeytoforever.org/biofuel.html Biofuel at WebConX http://webconx.green-trust.org/2000/biofuel/biofuel.htm List messages are archived at the Info-Archive at NNYTech: http://archive.nnytech.net/ To unsubscribe from this group, send an email to: [EMAIL PROTECTED] Your use of Yahoo! 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