Free Admission for CBA Members and Pacific West Biomass Conference Registrants!

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Co-located with the Pacific West Biomass Conference and Trade Show    

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California Biodiesel Alliance News

California's Biodiesel Industry Trade Association  

November 2011 

In This Issue
CBA CONFERENCE FREE TO MEMBERS AND PACFIC WEST BIOMASS REGISTRANTS
REGULATORY AND POLICY ISSUE UPDATES
WHO'S WHO IN CA BIODIESEL: Joe Gershen, Crimson Renewable Energy, LP
CBA WELCOMES NEW MEMBERS

Greetings!,

 

We are very happy to announce that CBA members, as well as registrants to the co-located Pacific West Biomass Conference, will be admitted free of charge (2 admissions per company) to the first annual California Biodiesel and Renewable Diesel Conference Don't miss this opportunity. Register online now! 

 

And if you're not already a CBA member, now's the time! It is quick and easy to join us online.

 

This month's newsletter has important news about proposed new UST regulations governing B20 storage, as well as a Who's Who article on Joe Gershen of Crimson Renewable Energy that includes much-awaited information about the company's new plant in Bakersfield.

 

To view back issues of this newsletter and CBA Email Alerts 

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

 

 CONFERENCE REGISTRATION NOW LIVE  

CBA MEMBERS AND PACIFIC WEST BIOMASS REGISTRANTS ATTEND FREE

 

The inaugural California Biodiesel and Renewable Diesel Conference, to be held Monday, January 16th, 2012 at the San Francisco Marriott Marquis, is the first event of its kind and will serve as the state's most important conversation between policy makers, investors, researchers, producers, marketers, retailers, and users of biodiesel and other forms of renewable diesel. 

 

This one-day conference, with evening reception, includes panels on California's Low Carbon Fuel Standard and its Implications for Biodiesel and Renewable Diesel Production; Investigating Inputs: Today and Tomorrow's Leading Biodiesel and Renewable Diesel Feedstocks; Reviewing State and Federal Regulations Affecting the Biodiesel Industry; and Fuel Quality and the Transition to New Production Technologies.

 

The conference will feature presentations from state and national experts focused on creating success in California, and marks the beginning of a discussion on ways to assist the petroleum industry, a key customer and strategic partner, in successful compliance with RFS2, US EPA's renewable fuels mandate, and California's Low Carbon Fuel Standard.

 

Register online now for this first annual event and be part of history in the making! Your CBA membership (including individual membership of just $100) allows you to attend free, so join us  now if you're not already a member. Registrants to the larger Pacific West Biomass Conference and Trade Show will also be admitted free of charge.  

      
CBA member companies receive 2 complementary registrations worth $190. Click here to join CBA online.

 

Celia DuBose (celiadubose@gmail.com) will email new CBA members as memberships are confirmed, with the code that will allow free registration online or via phone with conference organizers, BBI.

 

 


 REGULATORY AND POLICY ISSUE UPDATES


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CALIFORNIA ENERGY COMMISSION (CEC) FUNDING  

 

CEC staff has informed CBA that they expect to release a solicitation for $3.14 million for bulk terminal storage and blending facilities from the 2010-2011 funding cycle before year's end. They expect the same time frame for the release of a solicitation for biofuels production and feasibility. That solicitation will include $3.9 million from the 2010-2011 funding cycle along with $8 million from the 2011-2012 funding cycle, to total $11.9 million. Interested parties are encouraged to subscribe to CEC's listserve at http://www.energy.ca.gov/2010-ALT-1/index.html.    

     

LOW CARBON FUEL STANDARD (LCFS)

 

No policy update this month. See CBA website for last update on this issue.


EMISSIONS REGULATIONS 
 

No policy update this month. See
CBA website for last update on this issue.   

UST REGULATIONS  


T
he State Water Resources Control Board has issued a notice and rulemaking documents to amend the current underground storage tank regulation applying to the storage of B20. The new regulation would take effect in June of 2012 and replace the variance that has been in place for the last 3 years. More information will be published here once CBA has a full understanding of the new rule being proposed.  All relevant rulemaking documents are located on the State Water Board website at:  http://www.waterboards.ca.gov/water_issues/programs/ust/2631regs.shtml.

   

FEDERAL TAX INCENTIVE LEGISLATION     

As part of NBB's recent national meeting in Washington, DC, a California contingent participated in lobbying on behalf of the Biodiesel Tax Incentive Reform and Extension Act of 2011 (S. 1277 and H.R. 2238). Three new co-sponsors were added to the bills: Sens. John Thune and Tim Johnson of South Dakota and Rep. Tim Walz of Minnesota. The end of the Super Committee process now provides a possible opportunity for a tax extenders package by the end of the year. Please click here for a list of targeted members of the California delegation and make some calls urging them to sign on as co-sponsors of this critical job-creating legislation.

 

 

WHO'S WHO IN CALIFORNIA BIODIESEL
 
Joe Gershen  

Joe Gershen

Director of Sales & Marketing, Crimson Renewable Energy, LP

 

On October 7, 2001, three weeks after 9/11 and on the day the US began bombing Afghanistan, Joe Gershen and his wife, Ellen Sevy, were married. Joe had been a music composer, producer, and publisher for film, television, and technology apps as well as a patented inventor, software developer, and code writer for commercial interactive applications. But, the impact of the new geo-political reality was profound for Joe, and he began the search for a new career that would allow him to use his skills as a creator and marketer in service of making the world a better place, most urgently for environmental and sustainability issues, which he had long championed. Shortly thereafter, Ellen introduced him to some friends who had a small business delivering biodiesel to homes and businesses in the Monterey Bay area. Joe found the product "outstanding" and their passion irresistible. He was hooked. 

 

He was struck by the fact that biodiesel, a domestic sustainable fuel that could be deployed immediately, provided an unprecedented opportunity to "think globally, act locally." In 2002, he launched a new career in biodiesel with a few very ambitious goals.

 

First, Joe believed that biodiesel's credibility would need to be achieved by getting well-known cities and businesses to use the product. Second, since he was convinced that using second-use or waste raw materials, such as used cooking oil, were the most sustainable, he thought it was critical to persuade one or more fast food restaurant chains to recycle their fryer oil into biodiesel and use it in their distribution fleet. At that time, used cooking oil-based biodiesel was produced on an extremely small scale and not considered a high quality option. Getting a major player on board would also drive product quality and market credibility. Joe's third goal was to make a decent living in the biodiesel business. He knew that biodiesel, in order to succeed in the marketplace, had to become a commercially viable industry, able to provide good jobs and move beyond its status as a labor of love for the dedicated few.

 

Joe traveled the country learning as much as he could about biodiesel and the people involved with it. He set up a business, LA Biofuel, which had a small B100 delivery component, and began sourcing rail car volumes of biodiesel from mid-west producers and brokering it to California fuel marketers and jobbers. He also began looking for a producer capable of processing more challenging feedstocks like yellow grease. Joe met with various city agencies in his hometown of Santa Monica and was eventually able to get them to adopt biodiesel. The municipal and transit bus fleets have been using biodiesel ever since. Joe ultimately went on to repeat this success with several other Southern California fleets including the cities of Inglewood, Beverly Hills, Pasadena, and the CLIF Bar distribution fleet

 

Also in 2003, Joe was introduced to upper-level management at Golden State Foods (GSF), the McDonald's supply chain management company based in Irvine.  They had been exploring ways to turn their customer's fryer oil into biodiesel and had heard that he had similar ambitions. After the first few meetings, an agreement was made to work together toward their shared goals. The next couple of years were spent vetting process technology providers and developing a business model. It was agreed that they would need to get their entire fleet to use B20 to demonstrate real success, which they did a few years ago.

 

After almost three years struggling to find a reliable technology provider (and getting very little sleep!), Joe knew he needed help. Seeking synergy, he reached out to Bay Area biodiesel entrepreneur and attorney Eric Bowen of San Francisco Biodiesel and Fred Wellons, a biodiesel technology expert and Director of Product Development & Quality Control for Baker Commodities. After some discussion, the three of them decided to work together, an arrangement made possible by the merger of LA Biofuel and San Francisco Biodiesel In 2006. The two companies came together to form Tellurian Biodiesel in order to more effectively develop the GSF project, marketing business, and other opportunities.  

 

Tellurian grew steadily for a couple of years before the economic downturn of 2008 forced the sale of the company in 2009.  Fortunately, Joe had developed a strong relationship with Harry Simpson, President of Crimson Renewable Energy. Harry made Joe a compelling offer to join his team early in 2010, and Joe has been working for Crimson as Director of Sales and Marketing ever since.

 

Joe reports that Crimson has successfully completed re-commissioning and start-up of its 25 million gallon per year biodiesel production facility in Bakersfield, which will be BQ-9000 certified next year.  Over the past 18 months, Crimson reconfigured its Bakersfield plant to process a variety of second-use fats and oils feedstocks such as used cooking oil, inedible animal fats, and yellow grease in order to help its customers meet their California Low Carbon Fuel Standard (LCFS) compliance obligations. The first production lots were shipped on November 1st and met or exceeded all of the ASTM biodiesel specifications.  

 

The company is ramping up production slowly in order to ensure smooth operations and consistent product quality. As the plant production reaches 50% of its capacity, Crimson will be the largest biodiesel producer in the state. Joe believes that Crimson's size and logistical advantage will offer customers a ratable supply of ultra-low carbon biodiesel at the lowest cost of LCFS compliance.

 

When asked about the current state of the industry, Joe is very hopeful about the economic and environmental impacts of RFS2 and LCFS going forward. "Now, it's all about creating stability in the marketplace. Biodiesel customers are looking for stable supply, stable prices, stable product quality and stable business partners," Joe says.

 

One of the pioneers of California biodiesel who early on began to eat, sleep, and breathe biodiesel around the clock and hasn't stopped since, Joe has made an invaluable contribution to the industry. Not only did he reach the goals he laid out for himself when he started out in the field, the work he does now with Crimson, along with his very active involvement in CBA and other biodiesel related non-profits, is helping to create the stability he believes is so important for the biodiesel industry in California to move forward.

 

CBA is grateful to Ellen for introducing Joe to her biodiesel friends and for lending him to the industry for so very, very many hours each week.

 

Grease containers  Grease containers  Grease containers

______ NEW BUSINESS MEMBERS WELCOMED THIS YEAR_______

 

BioFuel Oasis

 

Dogpatch Biofuels

 

New Leaf Biofuel

 

Peoples Fuel

 

Promethean Biofuels 

 

Whole Energy

 

Yokayo Biofuels

 

 

______  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.   
  • Free admission to the California Biodiesel & Renewable Diesel Conference in San Francisco on January 16th, 2012  for one with the individual membership and for 2 with a company membership.  New members will receive a special registration code after joining. 

_______   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. Visit 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.


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