PROPOSED UST REGULATION AMENDMENT TO PROVIDE
ALTERNATIVE TO UL TESTING
On Friday, November 18th, the State Water Resources Control Board issued a notice and rulemaking documents to amend the current underground storage tank regulations applying to the storage of biodiesel in double-walled tanks (containment and components). The proposed regulation would allow UST owner/operators to store B20 provided they can show both the UL listing for petroleum diesel (until such time as a UL listing for biodiesel replaces it) and written materials compatibility documentation for biodiesel from the equipment manufacturer for their UST equipment. It would begin in June of 2012 and replace the variance that has been in place for the last 3 years.
The Water Board cited the fact that the Underwriter's Laboratory (UL) testing and approval process can take years and that the delay in UL material compatibility testing and approval is reducing the use of alternative fuels, like biodiesel, that are necessary to lower GHG emissions and comply with AB 32's carbon reduction goals. The Initial Statement of Reasons states that the Water Board "wishes to provide an alternative to UL's material compatibility testing and approval to facilitate the use of alternative fuels in California and reduce GHG emissions, while also minimizing the risk of UST failures and, therefore, harm to water quality."
CBA will remain actively engaged with the Water Board throughout the process to ensure a smooth transition from the current variance process and will publish updates in this newsletter.
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CONFERENCE SCHOLARSHIPS NOW AVAILABLE
San F rancisco non-profit Biofuel Recycling and the San Francisco Biofuels Cooperative (with funds left over after its dissolution) are offering scholarships for the inaugural California Biodiesel and Renewable Diesel Conference to students and others with economic need.
The 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. To apply for a scholarship please contact Celia DuBose at celiadubose@gmail.com by January 3rd with a paragraph or two about yourself including your qualifications, interest in biodiesel and/or renewable diesel, and how you would benefit from attending the conference.
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REGULATORY AND POLICY ISSUE UPDATES 
CALIFORNIA ENERGY COMMISSION (CEC) FUNDING No policy update this month. See CBA website for last update on this issue. LOW CARBON FUEL STANDARD (LCFS) On Friday, December 16th, the California Air Resources Board (ARB) accepted the report of the LCFS Advisory Panel and agreed to amendments to the LCFS designed to strengthen the credit trading system and facilitate the creation of new pathways. In doing so, the ARB Board rejected attempts to water down and delay the LCFS.
The unanimous vote sent a clear message to investors and affected industries that California's LCFS is secure and that the state is on track to meet its carbon emissions reduction goals through this ground-breaking model program. Several unresolved issues include Indirect Land Use Change and the treatment of high carbon intensity crude oil (HCICO).
UST REGULATIONS See lead article above. FEDERAL TAX INCENTIVE LEGISLATION
The following is a quote from a letter written by Anne Steckel, Vice President of Federal Affairs at the National Biodiesel Board (NBB) to NBB members on December 21st:
"Although Congress has not formally adjourned, it has become clear that lawmakers are at an impasse over year-end legislation to extend a payroll tax break, and that even if a compromise emerges it will not include extensions of other tax incentives. This means that the $1-per-gallon biodiesel tax incentive that has helped our industry reach record production this year will almost certainly expire on Dec. 31. While we are disappointed with Congress' failure to act and are discouraged by the persistent gridlock even over popular tax incentives, we also see some reason for optimism heading into the new year. We are urging everyone in the industry to remain active in advocating for an extension. First, leaders in both parties have acknowledged the need early in 2012 to pass a package of tax extensions important to U.S. competitiveness and economic growth. Second, a draft package of tax extenders that has been circulating in Congress recently - and that Senate leaders considered including in their year-end legislation as recently as last week - contains the biodiesel incentive. This is a testament to the grassroots advocacy the biodiesel community has done in recent weeks, and it is important because Congress will likely use the proposal as a baseline when it picks up unfinished work in early 2012. These developments lead us to believe that we are in good position to win an extension in 2012 if Congress can come together and pass meaningful legislation. However, as recent events illustrate, that is by no means a sure thing. Partisan gridlock has taken hold even with overwhelmingly popular provisions such as the payroll tax cut. And even if something comes together, there will be continued pressure to pare down the package to reduce costs, and only those provisions with strong support will survive. For all of these reasons, it is imperative that we continue to press Congress about the positive economic impact the biodiesel tax incentive is delivering across the country. Lawmakers who have biodiesel plants or related businesses in their states and districts must hear from you about the importance of this tax incentive. Ask them to actively push their leadership to make the tax incentive a priority early in 2012. As your trade association, we understand the frustration and difficulty this issue is generating for your business. We are doing everything we can to win an extension, and we believe our advocacy together is paying dividends." |
