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California Biodiesel Alliance News

California's Biodiesel Industry Trade Association  

August 2012  

In This Issue
KINDER MORGAN BEGINS BIODIESEL BLENDING IN CALIFORNIA
CBA URGES COMPLIANCE WITH NEW UST LAW: DOCUMENTATION REQUIRED FOR FEWER COMPONENTS
REGULATORY AND POLICY ISSUE UPDATES
CBA WELCOMES NEW MEMBERS
WHO'S WHO IN CALIFORNIA BIODIESEL: Celia DuBose, CBA

Greetings!,

 

CBA is proud to welcome the San Francisco Public Utilities Commission (SFPUC) as our newest member and Karri Ving, Biofuel Coordinator for the SFPUC Biofuel Program, SFGreasecycle, as the latest addition to our board of directors.   

   

This month's articles feature breaking news from Kinder Morgan and an update on UST compliance issues. An elated Celia DuBose writes a Who's Who article in the first person detailing her path to becoming CBA's executive director.  

    

Our Home page posts greater detail on the policy issues covered there, including updates as new information becomes available, so please check it out between newsletters to stay abreast of the latest developments.     

 

NOTE: Our 2013 conference will take place on Monday, February 4th and will be co-located with the National Biodiesel Board's annual conference at the Mirage Hotel in Las Vegas. Stay tuned to this newsletter or our Home page for further details.  

       

 

To view back issues of this newsletter and CBA Email Alerts 

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

 KINDER MORGAN BEGINS BIODIESEL BLENDING IN CALIFORNIA 

     

 

Fuel Pipes

In a very important development for California's biodiesel industry, Doug Meyers, director of business development for Kinder Morgan's Pacific region, has confirmed that the first batch of B5 was blended at the company's Fresno terminal on August 17th and that blending is scheduled to begin at its Colton terminal on October 1st.

 

Kinder Morgan, a service provider that owns and operates pipelines and terminals for refined products but does not own fuel, planned its entree into biodiesel blending in California within the last year in response to strong interest from its storage customers. The company's California infrastructure investment of several million dollars per terminal will allow each facility the capacity to blend up to 20 million gallons per year of B100, providing a significant new opportunity for California's biodiesel industry.

 

Meyers also confirmed a major change in Kinder Morgan's biodiesel blending operations nationwide, telling CBA, "In the past, Kinder Morgan has allowed yellow greases into the feedstocks at our terminals only in summer, but after further research we have relaxed our product specification to allow them on a year-round basis." He added, "This positive step forward will be a huge benefit for California given the lower carbon intensity values of yellow greases under LCFS."

 

At both the Fresno and Colton terminals, Kinder Morgan has invested in offloading capabilities for trucks; heat-traced piping and heated community (not refiner-specific) storage tanks that allow for correct temperatures for B100; and blending infrastructure that blends the B100 at a 5% ratio into the incoming diesel pipeline manifold.

 

Kinder Morgan has committed that all of the diesel at these two terminals will be a blend of up to 5%, but has a structure in place that allows their customers (shippers on the pipe) to elect to blend, and get the value of the RINs and LCFS credits, or not blend, if they are not obligated parties or otherwise choose not to. The company has found that they are getting strong support from those customers who are enjoying the very good value of getting the RINs and the LCFS credits by blending, a practice sometimes known as double dipping, because obligated parties can meet both state and federal requirements at the same time.

 

With a very high concern for quality (specifications for B100 are on Kinder Morgan's website), the terminals' community biodiesel storage is provided to customers who maintain product ratability. Meyers mentioned that so far, supply is a hurdle for them, with fuel from California biodiesel producers being very limited and that when Colton starts up it will likely include blending with Midwest biodiesel that comes in by rail then is transloaded onto trucks for transport to the terminal, which increases costs. There is currently no rail access at either terminal.

 

Kinder Morgan's commitment to biodiesel blending in California provides a great opportunity for biodiesel producers who are able to meet the company's spec and provide ratable volume to customers who ship into those terminals, with in-state producers having a financial advantage. Kinder Morgan is looking at other terminal sites in California for potential biodiesel blending should they experience strong customer support. Our industry expects to see significant increased demand - up to 700 mgpy - as obligated parties comply with the requirements of RFS2 and LCFS, both of which are designed to ramp up over time.

 

CBA is excited about Kinder Morgan's commitment to biodiesel and looks forward to working with the company going forward.

 

  CBA URGES COMPLIANCE WITH NEW UST LAW
DOCUMENTATION REQUIRED FOR FEWER COMPONENTS
 
  

USTs

 

UST owner/operators, including those who have had a variance in place, are encouraged to comply with the new permanent State Water Board regulation for storage of biodiesel in USTs in California, which became effective June 1st of this year. Please go to CBA's Regulatory Matters webpage and read the details of the new law, which requires materials compatibility documentation for a smaller number of UST components than the variance process did.         

If you have UST equipment that is not covered in the required new forms, which are available for download from the Water Board webpage listing the Affirmative Statements of Compatibility by Manufacturers, contact Celia DuBose at celiadubose@gmail.com. We are working with the Water Board to secure forms from equipment manufacturers who've not yet made them available to the Water Board for posting.     

 

IMPORTANT NOTE: The letter on the Water Board website for OPW is a revised version that covers blends up to B20 for most listed parts. Water Board staff has let us know that revised letters will not be marked as such, so please continue to check the webpage to make sure you have the latest version of the forms you need.

 REGULATORY AND POLICY ISSUE UPDATES

Grease containersGrease containersGrease containers  

 

  

EMISSIONS

A working group that includes CBA and national technical and policy experts in biodiesel emissions is involved in extensive preparations as part of its engagement with the California Air Resources Board in their development of our state's first emissions regulations for biodiesel. Our Home page will post important details as they develop, including information on a very important public workshop on this issue to be held in Sacramento within the next few months.  

 

CALIFORNIA ENERGY COMMISSION (CEC) FUNDING    

 
CBA's new member on the CEC's AB 118 Advisory Committee, Joe Gershen, will attend a meeting of that committee, which is tentatively scheduled for September 19th in Sacramento. He has taken the lead in preparing a CBA white paper on our industry's funding needs, which will be submitted as public comment in advance of the meeting.    

  
LOW CARBON FUEL STANDARD (LCFS)

  

No new policy update this month. See our Home page for the latest on this issue. 

 

UST REGULATIONS

 

See article above. 

  

FEDERAL ISSUES

  

CBA supports the national effort to maintain the EPA's proposed volume increase to 1.28 billion gallons in 2013 and to reinstate the biodiesel tax incentive. Please go the National Biodiesel Board's Fueling Action webpage and take action on these important issues. 

CBA WELCOMES NEW MEMBERS

SF PUC Logo

The San Francisco Public Utilities Commission provides retail drinking water and wastewater services to San Francisco; wholesale water to three Bay Area counties; and green hydroelectric, solar power and biodiesel to San Francisco's municipal departments.    

 

 

______  JOIN CBA AS AN INDIVIDUAL, A NONPROFIT, OR A BUSINESS  _____  

 

If you are reading this and are not yet a member, please join us.  CBA offers membership levels of $25 for students; $100 for individuals and nonprofit organization; $500 for small businesses; and $2000 (Silver). Full voting memberships are available by application at $3000 (Gold) or $5000 (Platinum).  Our Join Us webpage has details and an easy online membership fee payment process. 

 

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.
  • Participation in quarterly member meetings and legislative/regulatory visits.
  • Internal email communications on important industry issues as they arise. 
  • Discounts on CBA events.
  • Your company's logo and link on our Members webpage ($500 level and up).  
  • Special recognition at events and in publications (Platinum members).    

_______   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 ouHome page.


WHO'S WHO IN CALIFORNIA BIODIESEL  
        

   Celia DuBose

 Celia DuBose
Executive Director, California Biodiesel Alliance

When San Francisco hosted the 2005 United Nations' World Environment Day, I participated in several of the many events, including a tour of local homes using solar power. I was expecting to marvel in the minor miracle of folks powering their homes with solar in Fog City, and being in the market for a new car, I was looking forward to seeing the various kinds of electric cars that homeowners were powering with their excess solar electricity. What I wasn't prepared for at all was the fact that not only were the Incredible Adventures tour vans running on a fuel I'd never heard of, but three people sitting near me were running their cars on this same fuel. The eureka moment, when I discovered that a diesel vehicle was all I needed to be able to drive "off-the-grid" in a way I'd never imagined, was characterized by both joy and intense disbelief that somehow the amazing existence of biodiesel had previously escaped me.

 

Once home, my similarly flabbergasted, then thrilled, husband jumped online, and three days later we drove a 1998 Bug from a VW lot in Oakland to Berkeley's Biofuel Oasis - filled up with B99 and made an appointment for a fuel filter change - then drove back to San Francisco proudly sporting a No War Required bumper sticker. Having just moved back to the City, after a 5-year stint in Washington, DC, in order to help care for my elderly parents, I was in the market for work. But, being the youngest child of a Southern Baptist preacher, I didn't really want a job, I wanted a calling. And I had found it.

 

I volunteered for the San Francisco Biofuels Coop; the GO MUNI BIO campaign, which urged (the soon-to-be successful) SF transition of its entire diesel fleet to biodiesel; and Green Depot, a biodiesel nonprofit doing environmental justice work, until I was hired by Eric Bowen to work for Tellurian Biodiesel in 2007. With a degree in political science, and a long history of working for environmental and social justice nonprofits in outreach, program, and communications director positions, I immediately gravitated toward helping Eric with the policy work he was doing as chairman of CBA. CBA had formed just a few months earlier, but its small group of founders was already making great progress toward CBA's early accomplishments.

 

Soon, the national food versus fuel debate exploded. I worked with CBA board members and lobbyist Louie Brown to create a biodiesel factsheet, which was distributed to legislators and state agencies who were sorely in need of facts about biodiesel. But it was the actions of the State Water Board that cemented my relationship with CBA. The letter they sent to their local enforcing agencies (CUPAS) in early 2008 called biodiesel a hazardous material and stated the requirement that owner/operators storing biodiesel in USTs provide materials compatibility documentation from an independent testing agency for the equipment used in their systems. Because there were no UL listings for biodiesel, this action resulted in immediate closures of biodiesel fueling around the state and an unexpected and very serious threat to the biodiesel industry. Eric Bowen's initial efforts to reach Water Board staff were in vain, and each day the news of closures, including successful environmental programs run by cities and counties, got worse.

 

After repeated attempts, Eric established a relationship with key Water Board staff and began to bring in legal and technical experts from around the country, including National Biodiesel Board (NBB) staff to work toward a solution. I began statewide education and outreach to UST owner/operators, tracking the closures and the threats of closures and securing letters of public comment and in-person speakers as part of an initial legislative strategy. I continued these efforts when this strategy was replaced with what, after a year, became successful negotiations that led the Water Board on May 5th, 2009 to adopt emergency regulations that allowed for a 3-year variance process. Working in close cooperation with Laura Fisher, chief of the UST technical unit at the Water Board, I created the UST Compliance section of the Regulatory Matters web page on the CBA website, which included the information UST owner/operators needed to apply for the variance, housed all the available materials compatibility letters from equipment manufacturers, and offered assistance.

 

When REG acquired Tellurian Biodiesel in the fall of 2009, I was without a paycheck from the biodiesel industry, but continued working with UST owners as a volunteer. Since 2010, the NBB has assisted CBA by funding me and a technical assistant to help UST owners comply with the law. Though much of the fueling that was shut down in 2008 has not returned, I have been very happy to be part of the biodiesel industry's success in working with Water Board staff to establish, first, the temporary variance process and, now, the new permanent law that allows for the legal storage of biodiesel, including B100, with documentation that provides an alternative to UL (until such time as we do have UL listings for biodiesel).

 

In early 2011, CBA hired me as a contractor to grow the organization and broaden the scope and reach of its activities. This has included building and writing the content for an all new website; creating and writing a monthly email newsletter; working with the CBA board to recruit members from new communities within the biodiesel industry and to establish CBA's first annual conference; and much more. It has been extremely satisfying to be at the center of CBA's almost tripling of membership and successful entrée into the public sphere with new communication tools.

 

I am honored to serve as CBA's first executive director and wish to thank the CBA board for conferring this title with all the respect and trust it entails. I'm excited about continuing with a key mission - to grow the organization by bringing the many diverse elements of the biodiesel community under one roof to advocate for biodiesel. I look forward to expanding the range of work I do and to the challenges ahead, including engaging with California Air Resources Board on the first-ever emissions regulations for biodiesel; securing adequate and appropriate funding for biodiesel through CEC's AB 118 funding; and helping to secure biodiesel's success under LCFS.

 

I love the start-up feel of California's biodiesel industry and the opportunities involved in working on the cutting-edge in this huge state where what we do is writ large for all the world to see. I love the potential biodiesel has to be, not a magic cure but some pretty powerful medicine, sometimes quite literally with its ability to dramatically lower the known toxic diesel pollution that is responsible for a host of diseases, including asthma in our children. I love waking up and knowing that I work to address a range of problems with a sustainable, made-in America fuel with one of the lowest carbon intensity values available.

 

My new bumper sticker from Dogpatch BIofuels says Part of the Solution, and I am very happy with that!

 

 


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

 

 

Sincerely,

Celia DuBose
Executive Director
California Biodiesel Alliance