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California Biodiesel Alliance News

California's Biodiesel Industry Trade Association  

September 2012  

In This Issue
CBA PRESENTS WHITE PAPER: SHOWS BIODIESEL PROVIDES 34.7% OF RESULTS BUT RECEIVED ONLY 4.8% OF AB 118 FUNDING
EPA SETS RFS VOLUME AT 1.28 BILLION GALLONS FOR 2013
REGULATORY AND POLICY ISSUE UPDATES
CBA WELCOMES NEW MEMBERS
WHO'S WHO IN CALIFORNIA BIODIESEL: Marty Mellera, SFMTA

Greetings!,

 

We start this month's newsletter with a warm welcome to new member Falcon Fuels, wholesale supplier of energy products, Including biodiesel.

 

In this issue we feature important information on state and local policy matters and a Who's Who article on Marty Mellera, biodiesel innovator and Manager of Climate Action for The San Francisco Municipal Transportation Agency.  

            

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. We expect the link to our conference registration page to be live on their conference site within the next week and will post details on our Home page as soon as they are available.

      

NOTE: Our Home page posts greater detail on the issues we are engaged with, so please check it out between newsletters to stay abreast of the latest developments.     

       

 

To view back issues of this newsletter and CBA Email Alerts 

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

CBA PRESENTS WHITE PAPER SHOWING BIODIESEL PROVIDES 34.7% OF RESULTS BUT RECEIVED ONLY 4.8% OF AB 118 FUNDING

 

On September 19th, Joe Gershen, CBA's new representative on the California Energy Commission's (CEC) Advisory Committee for the Alternative and Renewable Fuel and Vehicle Technology Program (ARFVT Program), presented the results of a new biodiesel industry white paper to the committee and CEC staff at a public meeting in Sacramento held to receive input toward development of the 2013-2014 Investment Plan Update and upcoming solicitations.

 

With a special focus on introducing California's biodiesel industry to CEC's new staff members, including Lead Commissioner on Transportation Carla Peterman, and establishing a new era of improved communication, Gershen discussed the potential of biodiesel to reach program goals and requested increased funding for our industry.

 

Gershen presented results detailed in the white paper, which are based on an extensive analysis of data from the CEC's own 2011 Integrated Energy Policy Report (IEPR). The analysis shows that biodiesel is extremely underfunded relative to other fuel energy sources. In fact, biodiesel provides 34.7% of benefits in terms of petroleum displacement, GHG reduction, and air quality improvements, yet has only received 4.8% of AB 118 funding through the ARFVT Program (Table 1).  

 

IEPR Data

 

A cost benefit analysis of the numbers from that same section of the 2011 IEPR shows that other programs were 8.9 to 20 times more expensive in achieving the same goals.  

 

In line with these findings, CBA proposed that a new objective metric-based decision making process be developed to guide all ARFVT funding decisions and that the share of program funds going toward biodiesel (and other diesel substitutes) projects be increased to match funding levels with achievement metrics based on CEC's own calculations.

 

Based on the results of in-depth surveys that asked its producer members what the industry needs in order to expand biodiesel production and utilization, CBA presented a funding request for the following categories: grants and loan guarantees to expand Ultra Low Carbon Intensity biodiesel production at existing in-state facilities and to create additional capacity; support for the development of plentiful and inexpensive in-state feedstocks; and grants and loan guarantees for new blending and storage infrastructure at petroleum distributors' and terminal racks.

 

Gershen's presentation was well received as were supporting public comments from CBA Vice Chairman, Russ Teall, who also worked on the industry surveys and IEPR analysis presented in the white paper.  Both stressed CBA's commitment to keeping CEC informed about the progress of our industry, including the benefits of biodiesel and renewable diesels and their potential to meet ARFVTP goals.  

 

EPA SETS RFS VOLUME AT 1.28 BILLION GALLONS FOR 2013
 

On September 14th, over a year since it was proposed and after significant grassroots action by the biodiesel industry, EPA Administrator Lisa Jackson signed the final rule establishing 1.28 billion gallons as the 2013 biomass-based diesel volume requirement under the Renewable Fuel Standard (RFS). The National Biodiesel Board (NBB), which spearheaded the national advocacy campaign, called it "a pivotal victory" and stressed that it sets a precedent for future national biodiesel growth under the RFS.

 

The NBB is urging industry members to submit letters to the editor or op-ed pieces to their local newspaper thanking the Obama Administration for this important decision; letting them know how important this action is to the biodiesel industry, which has strong support all over the country; and detailing what a powerful tool RFS is for amplifying the environmental, economic and energy security success biodiesel is already having.

 

Importantly, while this is great news, the 2014 volume proposal is coming up soon, and there is a need to stay engaged if we are to protect this program, which has come under increasing criticism from obligated parties who have actively engaged in efforts to dismantle it.  

 

RFS is very important to California's biodiesel industry. It incentivizes petroleum companies who are obligated parties under both the federal RFS2 and the California LCFS to earn LCFS credits by blending in state, which we are already seeing at Kinder Morgan's terminal in Fresno.  This synergy creates huge potential for the state's biodiesel market and helps insure the success of  the state's carbon reduction goals under LCFS.

 

For updates and resources for action, visit NBB's Fueling Action website.   

 

NBB Fueling Action Logo  

 

 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 continues to engage 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    

 

 See lead article above.

   
LOW CARBON FUEL STANDARD (LCFS)

  

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

 

UST REGULATIONS

  

CBA urges compliance with the new 2012 permanent regulations governing UST storage of biodiesel. See our Regulatory Matters webpage for more information. 

DMS

The California Department of Food and Agriculture's Division of Measurement Statistics (DMS) held its first meeting of interested stakeholders on September 26th in Sacramento with the goal of creating a weights and measures-specific consortium. The consortium will help develop solutions to fiscal challenges facing the program due to mandatory General Fund reductions.
Celia DuBose, who attended the meeting, will represent CBA in her new role as Executive Director and participate in the fuels working group.  

  

FEDERAL ISSUES

 

See article above.   

CBA WELCOMES NEW MEMBERS


Falcon Fuels logo
Falcon Fuels, established in 1991,
is a trusted and reliable wholesale supplier of energy products, including biodiesel, throughout the Western United States.  
     

 

 

 

______  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 with the following annual dues: $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 policy discussions 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  
        

     Marty Mellera

Marty Mellera

Manager of Climate Action, San Francisco Municipal Transportation Agency

 

Within a few years of coming to work for the San Francisco Municipal Railway (Muni), Marty Mellera became Muni's Historic Streetcar Engineer, a coveted job that he could still have today had he not chosen the greater challenge of working with emerging fuels and technologies to meet ambitious local and state environmental goals for Muni's parent agency, The San Francisco Municipal Transportation Agency (SFMTA). In 2003, Marty was busy procuring hybrid buses, and working on the requisite change in state law, when he attended a lecture on the city of Berkeley's biodiesel use, which featured speakers Randall von Wedel and Dave Williamson, the biodiesel pioneers behind the program. Marty describes that day, when he learned about the ease with which biodiesel could deal an immediate and decisive blow to a host of diesel bus pollution problems, as magical. The magic also motivated him to buy a diesel New Beetle for himself, something that clinched the deal when he filled it up with biodiesel, drove it, and experienced first-hand that it worked, and it worked beautifully.

 

In 2000 the California Air Resources Board (ARB) was forcing transit agencies to choose a fuel path, either diesel or alternative fuels, which at the time meant one only thing - natural gas. The South Coast Air Quality Management District had passed legislation that outlawed the purchase of diesel buses in their district in the late 1990s, and soon almost all of Southern California's transit fleets had converted to natural gas. Statewide, there was tremendous pressure on transit agencies to do the same. Most northern California transit agencies chose the more flexible diesel path, which also allowed for the purchase of natural gas buses. When Muni did so, it created a political firestorm. The San Francisco Board of Supervisors formed an Independent Oversight Committee (IOC) comprised of members from NRDC, American Lung Association, Sierra Club, and PG&E. Working with the IOC, Marty and Jared Blumenfeld, then head of the San Francisco Department of the Environment, began developing a clean air plan, which included the testing of emerging fuels.

 

SF Muni Bus As part of these research and development efforts, two natural gas buses were purchased and tested. But, with less torque and fuel tanks weighing as much as a passenger car on the roof, they did not perform well or reliably on SF's hills, and the pilot was discontinued in favor of electric-drive diesel hybrid buses. All together, Muni had several hundred Metro streetcars, historic streetcars, and world-famous cable cars, but the rest of the fleet was roughly ½ conventional diesel buses and ½ electric trolleys (rubber-tired buses with motors powered by electricity from overhead wires connected by poles on the roof). The electric trolleys, which have been taking passengers up SF's hills since 1935, are fueled by hydroelectric power from the city-owned Hetch Hetchy power station, making them zero-emissions vehicles. As a critical part of the clean air strategy for the other half of the bus fleet, Marty chose biodiesel and got the IOC to agree.

 

Muni's Clean Air Plan: Zero Emissions 2020, a program for reducing emissions and fossil fuel use, employs a three-pronged approach: first, to build on Muni's existing electric drive technology, maximizing alternative bridge technologies like hybrid diesel buses; second, to move to cleaner and more sustainable fuels like biodiesel; and, third, to clean up any remaining emissions by using particulate filters and replacing old engines. Right now, Muni has 312 electric trolley buses and 86 diesel hybrid buses. Marty says that within 5 years Muni's entire remaining bus fleet will be electric-drive, bringing the number of diesel hybrids to over 500.

 

Marty was one of the major players behind Mayor Gavin Newsom's 2006 executive order, which required the entire San Francisco City/Co diesel fleet to convert to the use of B20 and made it the largest municipal fleet in the world to do so. A remarkable collaboration among other key city officials, including Karri Ving of the SF Public Utilities Commission, Mike Ferry of the SF Fire Department, and Vandana Bali of the San Francisco Department of the Environment, accomplished this impressive achievement within one year. Since then, elements of San Francisco's biodiesel fueling program have experienced some challenges related to underground storage tanks, sometimes having to move to lower blends for a time to comply with state regulations.  Committed to providing the support that Muni staff needs to successfully handle biodiesel, Marty conducts weekly maintenance meetings and reports that Muni has resolved all issues related to single-walled tanks, in one case by adding aboveground storage.  

 

Under Marty's leadership, Muni has voluntarily reduced NOx emissions by 25% in all of its diesel buses and plans to reach out to ARB in the future to discuss moving to higher biodiesel blends. The use of biodiesel is San Francisco's primary strategy for reducing municipal greenhouse gas emissions.

 

Marty says that they are on schedule, but still 5-10 years away from full implementation of the zero emissions plan and that after a decade of working at this scale and level of complexity, there are still a number of things they need to work on. One of the biggest challenges is to get state-of-good-repair costs estimates automatically included in budgets and grants. On the positive side, Marty is working in collaboration with other city agencies on biodiesel brokering issues, and together they are very focused on simple ideas like doing their own blending, which Marty believes can save 25 cents per gallon and allow them to work better with local producers providing deliveries of B100.

 

Had Marty remained SF's Historic Streetcar Engineer, his job would have been easier, but even with all of its challenges, Marty says his job is a luxury. "I consider it an honor that I get to contribute to what this amazing city is doing to address the very real problem of climate change, and sometimes I just have to pinch myself." California's biodiesel industry has benefited tremendously by having someone as committed as Marty working so hard and so smart to incorporate biodiesel into cutting-edge fleet strategies. And speaking of cutting-edge, just in case you were wondering whether you can reduce overall fuel costs by using a bit of biodiesel in your hybrid-diesel that happens to share the load with a small hydrogen fuel cell on board, Marty is the guy to talk to. In fact, he's the only guy in the world who has set up a pilot for 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