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California Biodiesel Alliance News

California's Biodiesel Industry Trade Association  

July 2011 

In This Issue
FEDERAL BIODIESEL TAX INCENTIVE BILL INTRODUCED
CBA WELCOMES NEW MEMBERS
UPDATES ON CALIFORNIA POLICY ISSUES
WHO'S WHO IN CALIFORNIA BIODIESEL: Eric Bowen, Renewable Energy Group

Greetings!,

CBA is very happy to welcome producer and distributor Yokayo Biofuels as a return member, which brings Kumar Plocher back to CBA's board of directors. We are also very happy to welcome Biofuel Oasis as a new member, adding them to our growing number of B99 retail members. Both businesses are pioneers in California biodiesel, and we are honored to have them working with us.  

 

In addition to California policy updates, this issue has information on the federal tax incentive effort, which was kicked off by NBB last week, and a must-read article on CBA chairman, Eric Bowen, in the Who's Who section.  

 

You can now view back issues of this newsletter and CBA Email Alerts. Just click on the "View CBA Email Newsletter Archive" button on our Home page.

 


FEDERAL BIODIESEL TAX INCENTIVE BILL INTRODUCED 

 

The Biodiesel Tax Incentive Reform and Extension Act, which would extend the $1 per gallon tax credit from 2012 through 2014, and change the incentive from a blenders excise tax credit
to a production excise tax credit, was introduced in the House and the Senate in June.    

 

By providing producers and investors the market certainty needed to execute their expansion plans, this legislation, in concert with the US EPA's RFS2 fuel mandates, is expected to produce 74,000 jobs by 2015 and a total of $7.3 billion in GDP, according to a new study commissioned and released by the National Biodiesel Board.    

 

Changing the tax incentive from a blenders excise tax credit to a production excise tax credit is a needed shift toward domestic biodiesel producers, which will protect against waste, fraud and abuse and make the tax program easier to administer.

 

Click here to find out more about how you can help.

 

CBA WELCOMES NEW MEMBERS

 

                                        Yokayo Biofuels logo 

 Yokayo Biofuels Yokayo, based in Northern California's Ukiah Valley, has been distributing biodiesel since 2001 and producing biodiesel from locally-collected used restaurant fryer oil since 2005.

 

 

Biofuel Oasis Logo

   The BioFuel Oasis is an all women worker-owned cooperative offering B99 made from recycled vegetable oil and urban farming supplies and classes.

      

______  JOIN CBA AS AN INDIVIDUAL OR A SMALL BUSINESS  _____   

 

If you are reading this and are not yet a member, please join us.  CBA is now offering membership levels of $100 for individuals and $500 for small businesses with an easy online payment option. Membership benefits include:   

  • CBA's Email Newsletter with important industry updates and features about Who's Who in biodiesel in California.
  • CBA's Email Action Alerts that let you know when your help can really make a difference.
  • Your company's logo and link on our Members webpage.
  • Discounts on CBA events.  

_______   SIGN UP FOR EMAIL ALERTS  _____   

 

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. Just scroll down to the bottom of our Home page and add your email address.  

 

_______   VIEW PAST NEWSLETTERS AND EMAIL ALERTS  _____   

 

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


UPDATES ON CALIFORNIA POLICY ISSUES  

 

French fries

CEC FUNDING

 

The vote on the Final Draft Committee version of CEC's 2011-2012 Investment Plan has been postponed until August. CEC's current funding cycle for 2010-2011 provides for $3.14 million for bulk terminal storage and blending facilities and $3.9 million for  biofuels production and feasibility, which will be made available through solicitations in the next few months.

 

LOW CARBON FUEL STANDARD (LCFS)

 

The LCFS Advisory Committee met on Thursday, June 30th and Friday, July 1st. CBA board members Russ Teal and Eric Bowen, who are members of the committee, attended. The agenda included an important discussion about how to design LCFS to provide strong market signals for ultra-low carbon fuels like biodiesel made from waste feedstocks. A healthy discussion began on the how the California Air Resources Board can help create a trading-based credit mechanism similar to the US EPA RIN system.   

 

EMISSIONS REGULATIONS

 

There is no update this month. The California Air Resources Board is expected to issue draft regulations for biodiesel later this year, which may have a significant impact on price and availability. This will be a starting point for a concerted industry response. We are gearing up for a process involving letter writing, attendance at public meetings in Sacramento, and more.   

 

UST REGULATIONS

     

There is no update this month. However, to assist UST owners seeking variances, CBA has posted a new document in the UST Compliance section of our Regulatory Matters webpage entitled Compatibiity Letters and Equipment Listings for B20, which details the UST equipment covered in the materials compatibility letters on our website and will be updated regularly.    

 


WHO'S WHO IN CALIFORNIA BIODIESEL 

Eric Bowen  

Eric Bowen

Ex. Dir. Corporate Business Development and Legal Affairs, REG 

 

While visiting his wife's relatives in Italy, Eric Bowen noticed a surprising number of diesel cars, which far from being the stinking, belching diesels he knew from California, were actually the ones passing him with considerable speed and style on the autostrada. He needed a new car, and once back home in San Francisco, bought a used Volkswagen Passat TDI. But it wasn't until a year later that Eric heard about biodiesel on an NPR radio show. He googled biodiesel and found, generally, a whole new world, and, specifically, a rare pump in San Francisco established through the work of Randal von Weidel of Cytoculture. He fueled up for the first time in October 2002 and fell in love with the culinary smells, the softer engine sounds, and the possibilities for biodiesel, the fuel that would soon begin to change the course of his life.

 

The first person to set that change in motion and to help create the force that Eric would become in California's biodiesel industry, and in the public policy arena, was Biofuel Oasis co-owner Melissa Hardy. Eric's first five years out of law school were spent at Heller Ehrman/Venture Law Group working with high-tech startups helping to raise venture capital, executing mergers and acquisitions, and facilitating IPOs. He was considering starting his own clean tech law practice when Melissa recruited him to help write a letter to the IRS requesting that the new law providing a $1.00 biodiesel tax credit be extended to include blend levels up 99.9%.

 

The effort with the IRS was a success and so was Eric's professional transition to biodiesel. He had begun doing legal work for many of California's biodiesel co-ops when Sigma Capital Group, an investment banking and advisory firm, saw the IRS letter on a co-op web site. They hired him first to consult and then as Vice President of Energy and Biofuels, where he specialized in biodiesel project finance.

 

In 2005, Eric co-founded the company San Francisco Biodiesel with Anna Halpern-Lande, now Manager of Future Fuels and CO2 for Royal Dutch Shell, with the mission to build a production plant in San Francisco in conjunction with Darling International.  However, in 2006 the partners charted a new course when they merged their company with Santa Monica-based LA Biofuels, which was owned by Joe Gershen, now Director of Sales and Marketing at Crimson Renewable Energy LP. The new partners co-founded Tellurian Biodiesel, Inc. where Eric served as President and CEO.

 

The management and shareholders of Tellurian came to the conclusion during the dark days of biodiesel in 2009 that survival required a scale that Tellurian was not going to be able to reach on its own, so Eric and Joe began reaching out to a handful of potential acquirers. It became clear that Tellurian could offer the most value to Renewable Energy Group (REG), one of the country's largest manufacturers and marketers of biodiesel with a presence in virtually every state. By 2009, REG had begun its transitioning from soy-based to waste-based production and was looking for the type of recycled feedstock relationships that Tellurian had established.

 

"REG has benefitted from being in the Midwest and doing business in states that enjoy strong support from state governments. It is my hope that REG, through its work with CBA, can help create a similar dynamic for the industry in California around the Low Carbon Fuel Standard," Eric said.  

 

As a nationally recognized expert, Eric has been very actively involved in local, state, and national biodiesel policy since 2004. In his role as Chairman of the SF Biofuels Co-op, Eric was instrumental in establishing the City of San Francisco's biodiesel programs through the mayor's executive order, which successfully converted the entire fleet to B20, making it the largest city in the world to do so. He assisted in the creation of the City's new master fuel contract and established the SF Biodiesel Access Task Force, which he chaired. He also helped Ben Jordan found Biofuel Recycling and create the SF "Greasecycle" program, which collects local restaurant grease that is processed into biodiesel and used in the City's fleets.

 

As one of CBA's co-founders and its chairman since inception in 2006, Eric has been a key player in the list of accomplishments detailed on CBA's web site, including establishing a relationship with State Water Board staff and negotiating new UST regulations when State Water Board actions threatened to shut down the biodiesel industry in California; working with US EPA on design and implementation of the RFS1 and RFS2 programs; working to insure funding for biodiesel through the California Energy Commission; and serving as member of the LCFS Advisory Committee, to name a few.

 

Eric is a talented leader whose dedication and skill have brought together users, business owners, National Biodiesel Board staff, and experts around the country in focused efforts to face biodiesel's unique challenges in California. He shows no sign of letting up and for that we can all be extremely grateful.

 

Note: Lest anyone think that Eric is all work and no play, it's important to note that he and his wife, Ughetta, have an 8-month-old son, Marcello, who makes Eric light up even more than the low carbon qualities of used cooking oil, or any other feedstock for that matter.

 

 

by Celia DuBose


Thank you for your time and efforts on behalf of biodiesel in California. We look forward to working with you!

 

 

Sincerely,

Celia DuBose for
Eric Bowen, Chairman
California Biodiesel Alliance