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California Biodiesel Alliance News
California's Biodiesel Industry Trade Association
April 2015
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While our industry remains engaged on state regulatory issues, including LCFS and the ADF regulation, CBA is turning up the volume in the state legislature, as detailed in our lead article this month, and NBB is asking us all to help them get loud on RFS!
Earth Day Inspires a
Thunderclap to Get Biodiesel Back on Track!
On Earth Day, CBA posted a link on our Facebook page to presentations from our 2015 conference detailing and celebrating the many environmental, health and other benefits of biodiesel. NBB used the opportunity to launch a new social media campaign to encourage the EPA to continue the growth of biodiesel production when 2015 Renewable Fuel Standard (RFS) volume requirements are announced in June. The campaign is called a "Thunderclap" and the objective is to have a unified message shared across supporters' social media platforms at the same time. Thunderclap will allow our industry to share a previously defined message through individual Twitter and Facebook accounts this month. Sign up ASAP!
There's much more on RFS in an article below and in the policy section, along with other state and federal updates.
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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CBA Ramps Up Legislative Activity
Heads to Sacramento for Lobby Day in May
Fulfilling our promise to pursue an aggressive new legislative agenda supported by an increase in membership dues, CBA is involved in an unprecedented level of activity in the 2015 California legislative session. CBA's lobbyist, Louie Brown of Kahn Soares, and Conway, is leading our industry's efforts, which include letters of support, engagement with committee chairs and staff, public testimony, and a lobby day event to be held in May.
CBA is supporting Senator Fran Pavley's bill SB 706, which would authorize the use of moneys from the state's Greenhouse Gas Reduction Fund to encourage in-state production of low carbon alternative fuels. The bill supports the work of a major effort initiated by CBA, the Biofuel Initiative, which is seeking funding from Cap and Trade auction proceeds for biofuel production and infrastructure. The initiative is being led by a steering committee that includes representatives of the renewable alternatives for diesel, gasoline, and natural gas and continues to meet weekly and to conduct legislative, administrative, and executive meetings.
CBA is also engaged on behalf of:
AB 1032: Diesel Fuel Tax Law: reimbursements
To solve a problem for our industry that may be effectively preventing biodiesel from being blended into 15-30% of the diesel volume, this bill would allow a claim for refund for amounts of tax paid on the biodiesel fuel portion of dyed blended biodiesel fuel removed from an approved terminal at the terminal rack, to the extent a supplier can show that the tax on that biodiesel fuel has been paid by the same supplier.
AB 692: Low-carbon transportation fuels
This bill would require the Department of Transportation, the Department of General Services, and other state agencies to buy an annually increasing percentage of their fuel from very low carbon fuel sources. In California, where the majority of biodiesel is made from second-use feedstocks, including used cooking oil and animal fats, biodiesel has some of the lowest carbon intensity scores under LCFS and is recognized by state agencies as an important component of the success of the program. We agree with the author that the state needs to do even more to reach its GHG reduction goals and believe that this bill is a reasonable and necessary step that will further enhance California's leadership in the movement to address the dire realities of climate change.
AB 33: California Global Warming Solutions Act of 2006: Climate Change Advisory Council
CBA supports Assemblymember Quirk's effort to establish a Climate Change Advisory Council and the broad range of strategies that the bill includes toward the goal of fulfilling California's greenhouse gas (GHG) emissions reduction goals, including those aimed at the energy grid; commercial and residential buildings; and the use of biodiesel and other biofuels to lower emissions from heavy-duty vehicles. Also, we value the bill's focus on increasing the market for low-carbon and very low-carbon fuels and improving the vehicle infrastructure required to do so.
We especially appreciate the inclusion of a metrics requirement that would accurately quantify: GHG emissions reductions; the environmental, health, safety, and quality of life benefits to state workers and residents; and the cost-effectiveness of the strategies developed by the new Council. CBA has consistently supported the development and use of metrics to guide investment decisions as a member of the Advisory Committee of the California Energy Commission's AB 118 program.
SB 350: Clean Energy and Pollution Reduction Act of 2015
Our organization is happy to join with the low carbon fuels sector and other businesses in support of Senator De Leon's bill to create enforceable state standards for clean energy and greenhouse gas reductions, including increasing the state's successful renewable portfolio standard from 33% by 2020 to 50% by 2030 and the 50% reduction in petroleum use in buildings by 2030 as well. CBA especially values the requirement to reduce today's petroleum use in cars and trucks by up to 50 percent. Our industry is already bringing biodiesel's many benefits to the state's goals, and we look forward to increasing opportunities to be part of these critically important solutions.
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(SFMTA)
Now Arriving: Muni's New Buses of the Future
The first of a new fleet of electric trolley and more hybrid buses to hit the streets
San Francisco - The San Francisco Municipal Transportation Agency, which oversees all transportation in the city, including the Municipal Railway (Muni), has taken delivery of its first New Flyer Industries electric trolley and biodiesel-electric hybrid buses. These two state-of-art buses represent the next phase of upgrades for SFMTA's aging vehicle fleet. Sixty brand new electric trolley buses will replace buses that have been in operation for over two decades.
Concurrently, through unanimous board of supervisors approval, the SFMTA has purchased 61 new biodiesel-electric hybrid buses. The combined purchases are part of the agency's five-year plan to replace the entire bus fleet.
The introduction of the new low-floor biodiesel hybrid and electric trolley buses coincides with this year's celebration of Earth Day. The new hybrids will run on B20, a blend of diesel and biodiesel, which is made from recycled oil and fat. The new trolleys will operate on 100 percent hydro-electric power. All of our electricity is hydropower-supplied from the Hetch Hetchy Reservoir and is carbon neutral. Muni now has one of the most diverse transit fleets in the world and is also the cleanest multimodal fleet in California.
"New 21st century buses are the very cornerstone of San Francisco's Transit-First policy, making sure Muni is reliable, affordable and safe for our riders," said Mayor Edwin M. Lee. "The purchase of a new state-of-the-art fleet of electric trolley and hybrid buses, which reduce or eliminate greenhouse gas emissions, helps San Francisco lead the way to a sustainable future. By offering real solutions to fighting climate change, we can meet the needs of our thriving economy and growing population."
Reliability was the impetus for the newly launched Muni Forward initiative. Muni transports more than 700,000 people during a normal weekday and the majority of those daily trips are taken by bus. So Muni Forward's aim is to prioritize the bus routes that are the workhorses of our transit system, identifying time of day to enhance frequency and extend service hours on express routes. The cumulative result is more service and less crowding on several major routes.
"Right now bus breakdowns account for an astounding 40 percent of Muni's delays, affecting thousands of riders," said SFMTA Board Chairman Tom Nolan. "It's because many of our buses are already past their useful life. Improving performance and reliability has been a primary goal of the board, and this procurement readies Muni to be able to deliver better service to customers."
This sweeping overhaul of Muni's bus fleet is made possible by a combination of funding. The electric trolley bus purchase is backed by federal, state, Proposition K funds, and other local support. The total purchase cost is $94,950,444. The biodiesel hybrid bus funds include but are not limited to: Federal Transit Administration grants, AB644 bridge tolls, Proposition K and Proposition B funds. The total purchase contract is $68 million.
"Both the biodiesel hybrid buses and electric trolleys allow San Franciscans who ride Muni to celebrate Earth Day every day," said SFMTA Director of Transportation Ed Reiskin. "More than half of our vehicles run on clean, Hetch Hetchy electric power; our trolley coaches and light rail vehicles and our cable cars are all powered by electric motors, providing more than 125 million zero-emission passenger trips per day."
The SFMTA has been given notice to proceed with the procurement of 200 standard (40-foot buses) and up to 163 articulated low-floor biodiesel-electric hybrid buses. The base order is for 61 buses; the remaining purchases would occur in phases over the next six years.
In an effort to reduce the time it takes to purchase and receive replacement electric trolley buses, the SFMTA collaborated on a competitive bid vehicle contract with King County Metro in Washington State and New Flyer Inc. Under this agreement, the SFMTA seeks to procure 60 articulated trolley buses with an option to purchase 240 standard buses. The joint contract with King County would permit the purchase of 33 additional articulated trolley buses to aid in the effort to replace Muni's entire fleet.
The new trolley bus is expected to go into revenue service within the next month. The articulated hybrid buses are still undergoing a standard evaluation by Muni Operations prior to acceptance of the vehicles.
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(E&E Daily)
BIOFUELS: EPA, Oil Groups Settle Lawsuit over RFS Deadlines
Amanda Peterka, E&E reporter
In a tentative settlement with oil trade groups, U.S. EPA has agreed to a timeline to propose and finalize renewable fuel mandates this year.
Under the agreement, EPA would propose renewable fuel standard volumes for 2014 and 2015 by June 1 and finalize the standards by Nov. 30. The settlement would resolve the lawsuit filed by the American Petroleum Institute and American Fuel & Petrochemical Manufacturers last month over EPA's failure to issue standards for 2014 and beyond.
EPA also announced that, while not part of the consent decree, it would issue the 2016 RFS mandates on the same schedule.
"Taken together, the schedule is consistent with our commitment to get the program back on track," Christopher Grundler, director of EPA's Office of Transportation and Air Quality, told reporters on a conference call. "All stakeholders want the RFS program back on the statutory timelines. With a final rule that establishes the 2016 standards by Nov. 30 of this year, we will be back on the statutory timeline."
Congress attached the renewable fuel standard to the Clean Air Act in 2007 as a means of increasing energy independence and reducing carbon dioxide emissions from the transportation sector. The standard established yearly requirements for refiners to blend conventional ethanol and advanced biofuels into petroleum fuel but gave EPA the authority to waive or reduce the levels.
By law, EPA is supposed to finalize the following year's mandates for conventional ethanol and most advanced biofuels by Nov. 30 of the previous year. The annual target for biodiesel -- an advanced biofuel made of soybean oil, used cooking grease and animal fats -- is supposed to be finalized 14 months before it goes into effect.
EPA has yet to issue standards, however, for 2014 or 2015. A proposal in late 2013 to scale back the RFS requirements for both conventional ethanol and advanced biofuel met strong opposition from several sectors, and the agency pulled back on it late last year.
API and AFPM filed their lawsuit on March 18 in the U.S. District Court for the District of Columbia, charging that the ongoing delay has "harmed and continues to harm" refiners because they can't plan ahead to ensure compliance with the standards (Greenwire, March 20).
"EPA has failed year after year to implement the RFS effectively," API General Counsel Stacy Linden said in a statement today. "The agency still hasn't finalized the RFS requirements for this year or even last year, leaving companies to guess how much ethanol they were mandated to blend into gasoline."
Along with agreeing to set the volumes for 2014 and 2015, EPA agreed in the proposed settlement to formally respond to an August 2013 petition from API and AFPM to partially waive the 2014 mandate.
EPA also announced today that it would propose and finalize the RFS mandates for 2016, as well as the 2017 RFS requirement for biodiesel, on the same June and November timeline.
The timeline is consistent with public statements EPA officials have made over the past several months, Grundler said, adding that the agency has already been working on shaping a rule that would cover the three years.
"Missing a deadline is not an option," he said, "or to quote NASA, 'failure is not an option' for us."
In today's announcement, the agency gave some detail on how it would handle the requirements for 2014, given that the year has already come and gone. EPA said it would propose volumes for the year that reflect the amount of renewable fuel that was actually used. Grundler declined, however, to give further detail on how EPA would determine how much fuel was used in the marketplace.
Grundler added that the rule would set the tone for future years when it comes to tricky issues like the blend wall, the term for the 10 percent ethanol saturation limit in the market. Higher blends of ethanol have been slow to come into the market, which refiners say limits their ability to comply with the RFS.
"We will continue along that path for subsequent years," he said. "We're going to be resolving some of those fundamental issues, like how do we continue to grow volumes above this so-called blend wall."
The settlement is subject to a 30-day public comment period. According to the decree's language, EPA could miss the June and November deadlines only if there is written consent from all parties.
The oil trade groups said they were pleased with the terms of the settlement but reiterated broader concerns over the program. Both API and AFPM have called on Congress to repeal the standard on concerns about the blend wall.
"While we are pleased that we were able to negotiate a deadline that requires EPA to issue the overdue RFS rules, we remain concerned with the government's implementation of this broken program," AFPM General Counsel Rich Moskowitz said. "EPA's failure to comply with the statutory deadlines injures refiners and exacerbates the problems associated with this unreasonable government mandate."
Stephen Brown, vice president of federal government affairs at Tesoro Corp., said the settlement would force EPA to show its cards on the renewable fuel standard.
He expected committees in both the House and Senate to hold hearings on the RFS this summer after EPA releases its proposal, but said it would be unlikely for any RFS legislation to move before the agency issues its final rule.
"I think that this gets the ball rolling. We have got to force this out in the open," Brown said. "I don't think Congress can do much of anything right now. It doesn't have a point of entry to work on this issue until they see what the latest thinking is from the administration."
Several biofuel trade groups issued statements welcoming the establishment of court-ordered deadlines for EPA to issue the standards.
Brooke Coleman, executive director of the Advanced Ethanol Coalition, said the agreement was a "good signal" that would provide a "reasonable market expectation for resolving the uncertainty around the RFS."
"Now that we have a better idea of when it will happen," he said, "we look forward to working with EPA to make sure that the new RFS proposal supports the commercial deployment of advanced biofuels as called for by Congress."
Biofuel producers, however, said the substance of EPA's proposal would be more important to the industry than the timing of the rule. Biofuel groups said the agency's first attempt at the 2014 rule -- the proposal to scale back the mandates -- would have hurt the development of advanced biofuels and led to less competition in the fuel marketplace.
"Our producers have faced ambiguity for too long, and today is welcome news that they are establishing a level of certainty with this announcement," said Tom Buis, CEO of the ethanol group Growth Energy. "However, far more important than timing is that the EPA establishes a final rule that moves our industry forward and reflects the bipartisan vision Congress intended for the RFS."
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CALIFORNIA INDUSTRY NEWS
(Biodiesel Magazine) Unique Oakland biodiesel project receives $3.4 million grant
Viridis Fuels, a state-of-the-art biodiesel project in Oakland, California, is prepared to receive an official notice of award today for a $3.4 million state grant at a California Energy Commission business meeting in Sacramento. A notice of proposed award to Viridis Fuels was given in December after a revision of the original selection proposal excluded the company. Four other companies, including Crimson Renewable Energy LP, Community Fuels, AltAir Fuels LLC and UrbanX Renewables Group Inc., were also included in the award proposal.
Viridis Fuels plans to build what it calls "America's most visible biodiesel plant," as its project site is situated in the Port of Oakland-the fifth busiest shipping container port in the U.S.-at the foot of the San Francisco-Oakland Bay Bridge five minutes from San Francisco where more than 225,000 drivers cross on a given day, Viridis Fuels President Mario Juarez told Biodiesel Magazine.
The company envisions one of the most unique biodiesel plant designs, aesthetically speaking, with a sleek wall of LED lighting obscuring the tankage and process equipment. Viridis intends to gain project partnerships with diesel auto manufacturers, displaying their vehicles on the LED wall and illuminating the benefits of both biodiesel fuel and clean diesel technology.
"You need to be creative in today's market," Juarez said.
Viridis Fuels has chosen SRS Engineering to provide a turnkey operation that will utilize low-quality, low-cost feedstock for manufacturing up to 20 MMgy of biodiesel and 4 MMgy of technical-grade glycerin. The SRS Engineering biodiesel process at Viridis Fuels will include degumming, bleaching, cold soak filtration, transesterification and esterification, patented resin purification, and removal of sulfur and heavy metals.
Viridis Fuels has a long-term land lease agreement for its project site in the port, one that has already been approved by the California Natural Resources Agency under the California Environmental Quality Act (CEQA).
"Gaining CEQA approval was our biggest environmental hurdle," Juarez said.
He added that the city of Oakland has provided only one franchisee -- Oakland Maritime Support Services -- approval for the next 35 years to sell fuel to the 10,000 diesel trucks entering the port daily. Juarez said Viridis has signed an agreement to sell up to 5 MMgy of its biodiesel for distribution in the port as B20.
With such high truck traffic in and out of the port, biodiesel blends from Viridis Fuels can help clean the air for local residents who, according to Juarez, suffer inordinately high rates of asthma.
"Poor people live near the port," he said, adding that Viridis Fuels seeks a modicum of environmental justice for those less fortunate by providing a cleaner fuel option for trucks in the area.
Juarez said part of Viridis Fuels' appeal to investors is the executive team and board of directors.
"We have a solid board with members from different business backgrounds," he said.
The Viridis Fuels board of directors includes Chairman Elihu M. Harris Jr., an attorney, business owner and former Oakland mayor; Vice Chair Dan Boggan, a current board member of Clorox & Collective Brands Inc., the former vice chancellor of UC Berkeley, and former NCAA senior vice president and chief operating officer; and Chief Financial Advisor Arnold Grisham, the president and CEO of Tri Valley Bank and former member of the San Francisco Federal Reserve Bank Board. The CEO of Viridis Fuels is Kathy Neal, a former California environmental regulator and Port of Oakland commissioner with 30-plus years of business experience.
"For us, we have a statement to make," Juarez said. "We are a women-owned, black-owned, Latino-owned company. Black women and Latinos have a place in industries like biodiesel."
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(The Orion: Chico State) Professor pioneers research on repurposing biodiesel waste
By Nick Bragg
With more than 200 million gallons of glycerol waste produced each year from manufacturing biodiesel, the process of disposing of this hazardous byproduct can be a sticky business.
Lisa Ott, a Chico State chemistry professor, has been engaging in innovative research to turn the glycerol waste into a substance that can in turn be sold for profits.
With her method, Ott is going to be taking hazardous material out of the the waste system and making the glycerol into a useful tool for the chemistry department as well as a profitable substance for biodiesel manufacturers, she said.
Ott has been studying biodiesel since her postdoctoral education.
"We were doing a lot of fuel chemistry work and working with rocket fuels and jet fuels and things like that," Ott said.
"And so that's where I sort of started thinking about fuel chemistry and got into biodiesel. Since I've come here, we have always done some sort of biofuels type (of) research."
Biodiesel is a clean-burning, renewable alternative to traditional diesel, which is minimizing the United States' dependence on foreign oil. Recycled cooking oil, soybean oil and animal fats just barely scratch the surface of what biodiesel can be made from.
Ott's research is focusing mainly on what to do with the glycerin waste produced from manufacturing biodiesel. For every 10 gallons of biodiesel produced there is one gallon of glycerol byproduct, she said.
To put things into perspective, Ott spoke about the waste on a larger scale.
"If you're making two billion gallons of biodiesel, that means in the U.S. and EU there's about 200 million gallons of waste," Ott said.
Biodiesel companies have either been burning this waste, landfilling it or using it as a dust suppressant. Burning the waste is bad for the environment, using it as a dust suppressant seems wasteful and landfilling it is expensive, Ott said.
"There's a local biodiesel company called Springboard Biodiesel," Ott said, "and if they have to get rid of a barrel of it, it's like $400 a barrel because it's hazardous waste."
To fix this problem, Ott involved her chemistry students in doing research on turning the glycerol into another substance that could be sold for profits. Through her research, she found that glycerol waste can be transformed into a deep eutectic solvent.
A deep eutectic solvent is an ionic liquid with a very low boiling point that can be used in chemical reactions for scientific research.
"If you're trying to make a new molecule, you have to dissolve your reactants in a solvent," Ott said, "and we are proposing this as a reaction solvent."
A reaction solvent serves as a medium for chemical reactions, the main purpose of which is to dissolve the reactants in the liquid.
Ott, along with other faculty members, Chico State students and two high school students submitted a paper about their research to the journal Fuel Processing Technology. Chico State is the first university to submit a scholarly paper about this subject, she said.
"I've been looking at the literature, and I haven't seen anything else," Ott said. "That doesn't mean someone else isn't working on it, but we submitted our paper so hopefully it will come out first."
When the paper is approved and published, Chico State will be the first university to create a way to turn biodiesel waste into a profitable deep eutectic solvent. Curiosity surrounds every problem we have, Ott said, and this is what drove her to create a clean way of reusing hazardous waste.
"I think that's the best kind of chemistry," Ott said. "(The kind) that comes about from natural curiosity or wanting to solve a problem you have.
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(DOMESTIC FUEL) Marine Base Goes Green with Ethanol, Biodiesel
Posted on April 23, 2015 by John Davis
Marines in Southern California are going a bit greener, as initiatives at one base are converting much of the vehicles used to run on ethanol, biodiesel and other alternative fuels. This article from DVIDS says Marine Corps Logistics Base Barstow, California, is trying to reduce greenhouse gas emissions by four percent in the next two years, to 15 percent in the next six years, reaching a target of 30 percent by 2025.
"We are converting from gasoline and diesel, to compressed natural gas, liquid propane, ethanol, biodiesel, and electric," [Tim Hutzley, fleet manager at Southwest Regional Fleet Transportation, Yermo Annex of Marine Corps Logistics Base Barstow] said. Those conversions have been ongoing, with some of the new technologies working well, and others taking time for the industry to work out the problems. For vehicles that can't be retrofitted to accept alternative fuels, buying vehicles made to run on more efficient fuels is one of the major ways to meet the target of reducing petroleum-based fuels.
Hutzley added, "Our requirement for 2025 is to have 20 percent of the 127 over-the-road vehicles (that can operate outside the base) as hybrids. And replace the rest when possible with smaller better, technologically advanced vehicles."
According to Hutzley, more than half of the base's gasoline type vehicles run on E-85 fuel, meaning 85 percent ethanol and 15 percent gasoline, which cost $3.18 a gallon compared to unleaded gasoline at $3.21. California's consumer summer blend unleaded gasoline has only 10 percent ethanol.
"The upside," he said, "is we are cutting our dependence on foreign oil as well as cutting our greenhouse gas emissions, which are the main reasons for using alternative fuels."
Most diesel vehicles on base are running with a blend of 20 percent biodiesel. Biodiesel is typically made from corn, but can also be distilled from other vegetable and animal fats as well as algae, said Hutzley.
Officials add that biofuels are renewable, produced in the U.S., and often cheaper.
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