Thor and Tom,

Please excuse me for being out of the loop or on the periphery
for this conversation up to this point. Too damned much work to
do, too many people wanting too much in too little time and
machines and people (me) who can only do so much in a 28 hour
day.

THOR:   Could you please site a reference to this... the
clarification of biodiesel as "non baseline"? Sorry but I'm
getting crapped out and am not on top of my game for the next
couple of days. Your assistance would be less time consuming.

> But my other point is that according to EPA's own
> publications in the federal register, it makes no
> distinction about "standard" fuels wrt biodiesel.  It
> classifies biodiesel as a "nonbaseline" fuel which IS
> exempt from the Tier 1 requirement for small
> businesses.

COMMENT: I largely agre with Thor's line of inquiry. Perusal over
40 CFR 79 and 80 leads me to many of the same conclusions,
although in the haste to discern their content it's easy to mis a
nuance or two.

Here a few blurbs written in response to an article prepared for
publication by someone else.

Relative to NBB fees and their equivalence to taxation:
*** [500 gallons / week  = ~$0.20 a gallon tax]
*** [250 gallons / week = ~$0.40 a gallon tax]
*** [150 gallons / week = ~$0.65 a gallon tax]

Relative to registration of a fuel with EPA:
*** [Registration of fuel to be used in a "motor vehicle" must be
accompanied by Tier test results or proof of legal access to
them. One cannot register first and then provide results or prove
to have access to them at a later date.

*** "The Act defines the term ``motor vehicle'' to mean any
self-propelled
vehicle designed for transporting persons or property on a street
or
highway." (40 CFR 79.33.a)

[Ag exemptions permit limitted use of off-road fuel on-road.]

*** "Act" means the Clean Air Act - 42 U.S.C. 1857 et seq., as
amended
by Pub. L. 91-604 (40 CFR 79.2.a)

Relative to the exemption status of manufacturers:
*** You can find reference to this exemption at the Cornell law
library
40 CFR 79.58.d.2
http://squid.law.cornell.edu:9000/cgi-bin/get-cfr.cgi?TITLE=40&PA
RT=79&SECTION=58&TYPE=TEXT
http://cfr.law.cornell.edu/cfr/cfr.php?title=40&type=part&value=7
9

*** And don't forget 40 CFR 80
http://cfr.law.cornell.edu/cfr/cfr.php?title=40&type=part&value=8
0

Relative to pushing the issue of "public monies" being used for
Tier testing:
*** There is the arbitration provision (as verbally referred to
me by an EPA
official), where if two parties cannot agree (for instance, the
NBB and a
small producer regarding access fees to Tier test results) one
party can
force the other party into arbitration. At such time all the
relevant facts
as to %s of federal monies versus private monies used to produce
Tier
results can be requested - general discovery issues.

[I most seriously imagine that this is exactly where the issue
must end up. Although a tentative "understanding," "ruling,"
"judgement" or "opinion" may qualify check-off dollars as "public
monies," there will be no judicial clarification until someone
presses the issue. This, in my personal opinion is the very low
quality card the NBB has in the hole, hoping for a straight,
knowing that the "opposition" has a Royal Flush. They will do
nothing in their disfavor until someone presses the issue.]

General common sense from the corporate perspective of Soy and
the NBB:
*** The real crux of the matter, which parallels the question of
federal/check-off monies, is why the NBB does not make any effort
to
avoid arbitration by providing some form of exemption/reduced fee
for
small producers. Sooner or later they are going to get "called"
on this one.

As to rationalization for failure to make exceptions for small
producers:
*** If all of a sudden there are numerous exemptions for small
producers
of on-road fuel literally dotting the landscape, they would
increase the
possibility of never seeing their Tier-test check-off dollars
returning to
their coffers. This in turn calls into question the stated
purpose of the
NBB. Do they serve the interests of the biodiesel industry or the
interests of the soy councils? Which brings one right back to
what you
elude to initially "Who created the biodiesel industry - small
home
producers or the soy councils?"

Thoughts from the grandstand....

Todd Swearingen

----- Original Message -----
From: Thor Skov <[EMAIL PROTECTED]>
To: <biofuels-biz@yahoogroups.com>
Sent: Thursday, August 01, 2002 8:49 PM
Subject: Re: [biofuels-biz] Legal Obstacles for Biodiesel


> Tom,
>
> I agree with you about the federal funds testing.
> Heck, NREL contributed to some of the studies as well,
> and often any amount of federal money is enough to
> "contaminate" the rest; at least it works that way
> with federal grant programs.
>
> But my other point is that according to EPA's own
> publications in the federal register, it makes no
> distinction about "standard" fuels wrt biodiesel.  It
> classifies biodiesel as a "nonbaseline" fuel which IS
> exempt from the Tier 1 requirement for small
> businesses.
>
> As I've said, they have told me differently on the
> phone, but have yet to show me anything in writing.
> And it don't count unless it's in writing.
>
> thor
>
> --- [EMAIL PROTECTED] wrote:
> > My legalese is sometimes lacking, but I understand
> > the Tier 2 exemption is
> > for any small company with less than $50,000,000 in
> > sales per year (I
> > qualify), but the Tier 1 exemption is only for small
> > companies of less than
> > $10,000,000 per year in sales MAKING A STANDARD
> > FUEL.  Any amount of
> > biodiesel above a trace is not exempt from Tier 1
> > testing. The objection I
> > have raised is that federal funds paid for
> > representative biodiesel testing,
> > and it is not being limited among over 13 producers
> > in about 20 locations,
> > from all types of material streams, yet is being
> > denied use of to a small
> > producer, and many others like me.  Where is the
> > sense in that?
> >
> > Tom Leue
>
>
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