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California Biodiesel Alliance News
California's Biodiesel Industry Trade Association
April 2012
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Greetings!, This month, Lisa Mortenson, CEO of Community Fuels, joins CBA as a member of our board of directors. We wish to extend the warmest of welcomes and to express our pleasure at having one of the state's largest producers working together with us on behalf of biodiesel in California. This issue has good news about LCFS and announces a new NBB/CBA joint venture, the California BIodiesel Initiative. This month's Who's Who article on that group's executive director, Ryan Lamberg, starts with a great small world story. CBA's recent efforts on AB 118 funding, and important updates from the State Water Board on implementation of the new UST regulation are covered in the Policy section. NOTE: Our Home page posts new information on the issues tracked in the Policy section as it becomes available, so please check it out between newsletters for the latest on those topics. To view back issues of this newsletter and CBA Email Alerts click on the "View CBA Email Newsletter Archive" button on our Home page. |
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APPEALS COURT RULING ALLOWS ENFORCEMENT OF LCFS

CBA was pleased to learn that on April 23rd the Ninth Circuit Court of Appeals issued a stay overturning an injunction blocking enforcement of California's Low Carbon Fuel Standard (LCFS). Eric Bowen, CBA Board Chairman, said, "This ruling clears a path for increased biodiesel use by helping to remove uncertainty from the marketplace."
The stay was issued pending resolution of the California Air Resources Board (ARB) appeal of a lower court's December 29th, 2011 rulings in the federal lawsuits challenging the constitutionality of LCFS. At CBA's January conference, Eric Bowen announced his belief that ARB will prevail in the lawsuits and encouraged companies to comply even during the temporary injunction. Richard Corey, Deputy Executive Officer, California Air Resources Board, told conference attendees that in 2011, its first year, the LCFS program experienced over-compliance by companies, an accrual of credits for ethanol and CNG, and new pathways proposed.
ARB had not been restricted from implementation of LCFS, and now that the Enforcement Injunction is lifted, the program is free to move forward. ARB immediately notified regulated parties that they must submit all outstanding 2011 fourth quarter and annual compliance reports by April 30, 2012.
LCFS requires that transportation fuels suppliers meet an average declining standard of carbon intensity to produce a 10% reduction in greenhouse gas emissions for all fuels used in California by 2020. The carbon intensity (CI) of a fuel, measured by adding up all greenhouse gas emissions associated with the production, transportation, processing and consumption of that fuel is called a pathway. Biodiesel currently has 6 pathways under LCFS with some of the best (lowest) CI numbers of any fuel.
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NBB AND CBA LAUNCH
CALIFORNIA BIODIESEL INITIATIVE
JOINT VENTURE
The National Biodiesel Board and the California Biodiesel Alliance began working together this month on a new joint venture, the California Biodiesel Initiative (CBI), which was created to enhance dialogue between the biodiesel and environmental communities in California. CBI efforts will focus on increasing awareness among key environmental groups and individuals of the many health and environmental benefits of biodiesel, including its unique ability as an advanced biofuel to contribute to California's carbon reduction goals.
Ryan Lamberg, who serves as executive director of this exciting new collaborative program, has been deeply involved in California environmental issues for 15 years, and brings extensive policy and technical understanding of biodiesel based on his work with Community Fuels and other biodiesel projects in the state.
CBI has begun outreach to environmental organizations, tracking relevant working groups in Sacramento, and developing a library of published materials for use in its educational work. Ryan looks forward to reaching out to CBA members for input. He can be reached at: rlamberg@biodiesel.org and (415) 418-0964.
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REGULATORY AND POLICY ISSUE UPDATES  
CALIFORNIA ENERGY COMMISSION (CEC) FUNDING On April 19th, CBA members presented public comment in person, via WebEx, and through email to staff during CEC's workshop on the 2012-2013 Investment Plan for the Alternative and Renewable Fuel and Vehicle Technology Program Staff Draft. The comments consistently requested a reconsideration of the intention stated in that draft to not reserve funding for upstream diesel substitutes infrastructure and suggested a few ways to redirect funds toward this often-stated and critical biodiesel industry need. CBA members will be meeting with CEC staff in early May and look forward to making progress on this issue. The CEC board meets on May 9th and may consider final adoption of the 2012-2013 plan at that time.
LOW CARBON FUEL STANDARD (LCFS)
See lead article above.
EMISSIONS
The California Air Resources Board's testing of B5 and B20 to gather additional data for its biodiesel/renewable diesel rulemaking process is ongoing. Between newsletters, our Home page will post important new information as it becomes available, including an expected upcoming opportunity for public input.
UST REGULATIONS On June 1, 2012, the new permanent California UST regulations, which will allow for the storage of all blends including B100 in double-walled systems, will take effect. State Water Board staff has sent a letter to manufacturers of UST equipment, along with a Manufacturer's Affirmative Statement of Compatibility form for biodiesel requesting the information, including the current UL standard listing (for petroleum), required by the new law. The form requests information for the following components: "double-walled tanks, double-walled piping, connector fittings, flex connectors, risers, under dispenser containment, tank top sumps, transitions sumps, spill buckets and any other containment components that come into or may come into contact with stored product."
As these compatibility forms are returned to the Water Board, they will be made available to CUPAs and UST owners directly and will be forwarded to CBA for posting on our Regulatory Matters webpage. A new guidance document will be made available in the same way in early May. UST owners wishing to store, or continue to store biodiesel, must approach their CUPAs with the new compatibility forms for the above list of components of their systems on or before June 1st and follow the instructions of the CUPA. Those wishing to store blends above B20, will be required to apply for a new permit. Existing variance holders, especially those whose variances were tied to a permit by their local CUPA, may also be required to apply for a new permit. Leak detection systems are completely separate from the compatibility requirements of the new law and are not included in it. As a courtesy, Water Board staff will develop a table showing their leak detection equipment functionality documentation for biodiesel including the blend level covered, which will simplify the regular time-consuming procedure of searching the LG 113 listings on the Water Board website. This table will be posted on CBA's website. The State Water Board manages an Underground Storage Clean Up Fund, which makes several million dollars per year available in grants and loans to small business owners to comply with underground storage tank UST regulations through the Replacing, Removing, or Upgrading Underground Storage Tanks (RUST) Program. For further assistance on the transition to the new UST law please contact Celia DuBose at celiadubose@gmail.com. |
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CBA WELCOMES NEW MEMBERS  Community Fuels is a proven advanced biofuel producer with a track record of meeting the needs of major oil companies, refiners and bulk fuel distributors. ______ JOIN CBA AS AN INDIVIDUAL OR A SMALL BUSINESS _____ If you are reading this and are not yet a member, please join us. CBA offers membership levels of $100 for individuals, $500 for small businesses, and $2000 for full voting membership (by application) 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 (for small business members).
- Participation in quarterly member meetings and legislative/regulatory visits.
- 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. 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. |
WHO'S WHO IN CALIFORNIA BIODIESEL
Ryan Lamberg Executive Director, California Biodiesel Initiative A National Biodiesel Board/California Biodiesel Alliance Joint Venture Ryan Lamberg worked for 5 years in education and outreach at Greenbelt Alliance, the Bay Area's leading land conservation and urban planning non-profit, before he began his agricultural fair trade work in the U.S. Peace Corps in Nicaragua in 2002. While there, Ryan ran into an old friend who had come down from North Carolina to work on a sustainability project at a nearby eco-preserve. The friend was Rachel Burton, cofounder of Piedmont Biofuels, and her project was grease conversion. What appeared to be an odd happenstance would change Ryan's life. He gave Rachel an extensive tour of the coffee farms where he worked and introduced her to the small-scale farmers, whose businesses were in crisis. Rachel talked to them about energy independence and crop diversification and introduced Ryan and the farmers to the little known fuel called biodiesel with its potential to help with their problem of high diesel fuel costs in a country with no petroleum production of its own. Motivated by biodiesel's potential to dramatically improve the lives of citizens in countries like Nicaragua, Ryan began his foray into the burgeoning world of biodiesel. Upon his return to the U.S., he accepted a managerial position at Taylor Maid Farms, an organic coffee and tea company in Sebastopol, California. Taylor Maid's owner and a small group of local investors set in motion the process that created one of California's largest biodiesel companies, Community Fuels. Ryan, who was made VP and given a share of ownership in this biodiesel start-up, began setting up the business documentation and scouting locations. However, just before breaking ground on a site in Sonoma County, the team brought in a CEO, Lisa Mortenson, who decided that to achieve the economies of scale required for success, the plant needed to be located near a railroad. At the end of 2005, California's biodiesel industry was booming, and Community Fuels won out over a dozen other biodiesel bidders to secure the lease for the Port of Stockton property where the company's plant successfully operates today. Ryan is quick to point out the many challenges involved with building such a large-scale biodiesel plant from the ground up, especially with the goal of producing 10 million gallons shortly after start-up. Happy to have Lisa at the helm, and an expanding staff of specialists to take over the demanding load of financial and technical work, Ryan still had his "fingers in everything." After several title changes with the changing needs of the organization, he ended up as Director of Logistics and Communications. Over the next three years, Ryan created the company's website, wrote news releases and factsheets, presented to dozens of organizations, and was in charge of site logistics at the huge two-acre chemical facility. This included responsibility for the truck on and off loading systems, securing tanks, inventory of all equipment, and assisting with permitting, QA/QC lab set-up, and off-take agreements. By 2008, commodity prices were going up, diesel prices were going down, and the economy, especially for biodiesel, was very tough in the state. But Community Fuels, with angel investors, low interest loans from the state, industrial bonds, Department of Energy and California Energy Commission grants, and a new lease on an adjacent property, was poised to weather the storm that destroyed many California biodiesel start-ups. By December of 2008, the company's first gallon of test fuel was produced. Having locked-in jobbers and customers, in addition to his other contributions, Ryan felt that his work was done, and he left his position at Community Fuels. Ryan secured and completed an EPA-funded project called Bridging the Biodiesel Gap, a manual/curriculum on best practices for handling and distributing biodiesel with fleet management and jobber information, in collaboration with Ben Jordan of Peoples Fuel, and Gerald Bernstein of San Francisco City College. He also consulted with Randall von Wedel on the pHLip test and worked with Rachel Burton on fleet training. His experience at Community Fuels had confirmed his love of the start-up, and inspired by President Obama's energy goals, Ryan become certified in energy efficiency auditing. He worked setting up programs in residential energy auditing, first at Energuy, Canada's second largest auditing company, where he hired, trained and managed 15 auditors throughout California as the company's first U.S. hire. He then moved to Ecology Action as the Whole House Training Manager where he was responsible for training 1200 participants of Energy Upgrade California, with federal stimulus funding, until April of 2012. Ryan comes back to California's biodiesel community as Executive Director of the California Biodiesel Initiative, a new joint venture of the National Biodiesel Board and CBA, which will promote the benefits of biodiesel throughout the state with a special focus on outreach to groups and key individuals in the environmental community. CBA is very pleased to have Ryan, who was involved in the start-up of CBA with its original founders, working with us again in this exciting new collaborative effort.
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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
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