Thor,

NBB is a private "not for profit." Whether the checkoff dollars
can be considered federal monies (public moneies) is the real
crux of the matter.

While soy esters were used to conduct the Tier I & II tests, the
conclusions were stipulated to that the differences between each
feedstock, no matter yellow grease, tallow, lard, corn, rapeseed,
soy, etc. are so infintesimally small that all can fall under the
umbrella of the results produced from the soy sample.

Yes, if you buy into the NBB with a membership, you would have
access to the Health Effects data. You would have to renew your
membership every year to maintain legal access. Pro-rate $5,000
US each year down to a penny a gallon cost and you find that you
have to produce 1,400 gallons a day. Then throw on the $0.01 a
gallon production fee assessed by the NBB and you have a $0.02
tax on every gallon, going not to the federal or state coffers,
but the NBB's.

Mind you this is for fuel "in commerce." Whether or not and for
how long off-road biodiesel can be produced without the
manufacturer having to access health effects data is another
matter. The move is on within the EPA to remove the existing
exemption for off-road biodiesel. When that will occur is
anyone's guess.

The really queer part of the matter is (or at least one of them
is) that the biodiesel can meet or exceed ASTM standard, but you
can't sell it for road use without cottoning up the cash. The
fuel can be cleaner than freshly polished silver and 10 times
cleaner than petro-diesel, but you can't sell it for road use
without fessing up to the NBB (by and large the soy industry).

The only real question that needs to be answered is if the
checkoff dollars are considered public monies or not. Maybe.
Maybe not. It's entirely possible that when they have been
transferred into the soy council's hands that they are no longer
considered public monies, by some clever legal verbage.

That's a question for a legal beagle.

Todd Swearingen


----- Original Message -----
From: Thor Skov <[EMAIL PROTECTED]>
To: <biofuels-biz@yahoogroups.com>
Sent: Friday, July 26, 2002 11:11 PM
Subject: Re: [biofuels-biz] small biodiesel producer regs and ADM


> Thanks for the responses everyone.
>
> So, now the questions are:
>
> 1.  Was the Soybean Council $ federal or private?  And
> if federal, what are the implications?
>
> 2.  Does that sample of biodiesel from virgin soy oil
> work for only biodiesel from virign soy or would the
> results be valid for biodiesel from canola or rapeseed
> or palm etc.etc.
>
> It says somewhere in the regulations governing testing
> that different producers can share test results to
> lessen the cost of testing.  What are the implication
> of this?
>
> If you join the NBB, do you get to use the test
> results?  If so, NBB has a link to their anti-trust
> policy (PDF, sorry):
> http://www.nbb.org/pdf_files/NBB%20Anti-Trust%20Policy.PDF
>
> It seems to me that a group of large producers
> controlling "technology" (test results) and thereby
> either pricing small producers out of the market or
> denying them entry, is THE definition of a trust.
>
> any thoughts?
>
> thor skov
>
> --- [EMAIL PROTECTED] wrote:
> > ADM was on the committee that set up the NBB
> > organization, and convinced the
> > Soybean Council to forward the $2,200,000 used to
> > test the one sample of
> > virgin soy oil based biodiesel that has been
> > thoroughtly tested under Tier 1
> > and Tier 2 testing requirements of 40 CFR 79.
> >
> > For a new producer, you are exempt from Tier 2
> > testing, but not Tier 1
> > requirements. The EPA estimated this testing
> > requirement will cost about
> > $1,000,000.
> >
> > The EPA contact person is James Caldwell at 202
> > 564-9303.
> >
> > Tom Leue
> >
> >
> >
> > In a message dated 7/26/02 1:25:54 PM,
> > [EMAIL PROTECTED] writes:
> >
> > << I have been following the recent discussion on
> > regulations for small producers and now am pretty
> > much
> > thoroughly confused.
> >
> > First, I don't understand the involvement or
> > relevance
> > of ADM in regulation of biofuels.  It came up
> > several
> > times but I still don't get it.  Can anyone clarify?
> >
> > Second, regarding EPA's demand that biodiesel
> > producers show a (+or- $1,000,000) receipt for
> > health
> > effects testing, or pay to use the NBB's 'sample':
> > there was a long post regarding checkoff funds that
> > wasn't entirely clear, but more important, what is
> > it
> > exactly that EPA is looking for?  What law or
> > regulation they are following in making this demand?
> >
> > Does anyone know the correct person or office to
> > contact at EPA so a biodiesel producer can get clear
> > guidance on what to do?
> >
> > thanks,
> >
> > thor skov
> >
> > =====
> > Grants Manager
> > Stillaguamish Tribe Of Indians
> > 3439 Stoluckquamish Lane
> > P.O. Box 277
> > Arlington, WA 98223-0277
> > (360) 652-7362  Ext 284 >>
> >
> >
>
>
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