In this issue May 1st, 2004
* Fleets Urge Engine Makers to Support Biodiesel
* Michigan School District Reports B20 Saves Money
* Washington Update
* Toledo, OH to Host New Biodiesel Fueling Station
* IL Gov Issues Executive Order for Biodiesel in State Vehicles
* KY Governor Celebrates Earth Day with Biodiesel
* Biodiesel Pumps Open to Public in Missoula, Montana
* FL Project to Evaluate Biodiesel at Airport
* Boats and Buses Use Cleaner Burning Biodiesel in Ft. Lauderdale
* Energy Technology Expo and Conference to Debut in August
Fleets Urge Engine Makers to Support Biodiesel
Medium duty truck and engine manufacturers could see fewer sales in 2004 if they don't show more active support of biodiesel, according to a survey presented to 26 auto and diesel engine manufacturers. The majority of surveyed fleet managers, 53 percent, said that support of B20 by automotive Original Equipment Manufacturers (OEMs) and engine manufacturers will definitely or most likely be a factor in their decision to purchase the products of those companies.
The survey of 53 fleets representing more than 50,000 diesel-powered vehicles found that the vast majority, 91 percent, of fleets surveyed are in favor of using biodiesel. Forty-five percent of fleets surveyed are currently using some blend of biodiesel, and among them a 20 percent blend (B20) is the fuel of choice. Of those using biodiesel, 96 percent said they would recommend B20 use to other fleets.
I've never seen higher customer approval ratings anywhere, said Steve Howell, technical director to the National Biodiesel Board (NBB). These results show the average fleet manager sees the use of B20 as transparent and even beneficial to his operation. And fleet managers know what they are talking about since they are on the line to make sure their fleets run smoothly.
The survey showed that fleet managers see uniform OEM acceptance of B20 as one of the last barriers to broader biodiesel use.
Fleet managers should use their significant market power to demand B20 support from their OEM or take their business elsewhere, said Joe Jobe, NBB executive director.
ASG Renaissance, a national technical and communications services firm, conducted the survey on behalf of NBB. Copies of the survey results and final report are available from the National Biodiesel Board on the Web at www.biodiesel.org/fleet_report/.
Michigan School District Reports B20 Saves Money
The first Michigan school district to switch its entire bus fleet to B20 has logged one million miles on the alternative fuel, and maintenance records reveal that the district has saved money as a result.
The district's 31 school buses, including 13 powered by Cummins, 2 powered by Mercedes, and 16 powered by International, have achieved this milestone with no challenges and no modifications, according to Wayne Hettler, garage foreman and head mechanic . The district also uses B20 in nine support vehicles including a foodservice truck and a Toro Diesel 3-wing mower.
Part of the incentive leading to the switch to B20 was the receipt of a grant in 2003 through the Michigan Department of Consumer and Industry Services which funded St. Johns for the incremental cost difference of the B20. Even though the grant ended in December of 2003, Hettler's been able to show his staff and the school board that they are still saving money by using B20. The main cost savings is on the extended intervals between oil changes.
I'm convinced that we are able to extend the oil changes because the B20 burns cleaner and isn't dirtying the oil as quickly, said Hettler. We're using oil analysis to determine the oil change times. We solely credit biodiesel for cleaning up the oil, thus saving the district the costs of oil, filters, labor and the like. We have our records for each bus before a single drop of biodiesel was ever put in the tank, up through our present usage. I challenge other fleets to read their fleet records and make these cost-saving changes after switching to B20.
Hettler also reports an increase in miles per gallon, and improved lubricity, leading to longer fuel pump life. Prior to April 02 we averaged one fuel pump change in our fleet per year. We haven't had to change any fuel pumps since April 02, he said.
According to the Michigan Soybean Promotion Committee, Hettler has used the oil from more than 15,000 bushels of soybeans to fuel his fleet with biodiesel. There is much less smoke at the B20 level and both the mechanics and bus drivers have noted the difference, not to mention the kids, Hettler said. We're using soy biodiesel for the health benefits for all of us, the environment, and to support America's soybean farmers.
Washington Update
As a result of slow movement on the Transportation Bill, Senator Kit Bond
(R-MO) put on hold the pending extension bill, saying it would remain until Senate Minority Leader Tom Daschle (D-SD) drops his objections to naming conferees. Bond later lifted his hold and announced there will be a meeting this weekend to come up with a number on total cost and a plan to move forward. The extension bill would temporally fund highway programs for another two months. Because current highway and transit programs expire again at the end of the month, Congress must pass another extension before the end of the week, or face the shutdown of these federal programs, which could lead to disruptions in state and local highway and public transportation projects. Thursday the House passed a two-month extension, and the Senate had hoped to pass similar legislation by the end of the week.
In other news from Washington, on April 23, the Senate Finance Committee held a briefing for those who support the energy tax package, which includes the biodiesel tax incentive in the Foreign Sales Corporation/Extraterritorial Income (FSC/ETI) bill (S. 1637). Last weekend Senate Finance Committee Chairman Charles Grassley (R-IA) indicated FSC/ETI will likely come back to the floor early next week, and that negotiations were pending to reduce the number of amendments to fewer than six, for each side.
Also, earlier this week Senate Minority Leader Tom Daschle (D-SD) unexpectedly offered his Renewable Fuel Standard (RFS) legislation (3.1 billion gallons of renewable fuels in the first year of the program -- 2005, ramping up to 5 billion gallons in 2012) to the Internet Tax Bill. As a result, Senate Energy Committee Chairman Pete Domenici (R-NM) quickly countered with a slimmed-down energy package as a second-degree amendment to Daschle's amendment. It was authorizing language only, and had no tax language; thus no biodiesel provisions. Both amendments were short of the 60 votes needed achieve cloture to end debate, and thus fell.
Toledo, OH to Host New Biodiesel Fueling Station
U.S. Representative Marcy Kaptur (D-OH) has announced the securing of $1.5 million in federal funds for the construction of a new biodiesel fueling station at the Toledo Area Regional Transit Authority's (TARTA) main garage. U.S. Department of Transportation funds earmarked for Toledo by Kaptur will pay for the installation of the tanks.
"We have the ability to bring farm and city together through the use of new fuels in a multitude of applications, Kaptur said. Today's announcement is just the first chapter on how we, as a region, power a new future for fuels that will replace our reliance on imported petroleum with renewable energy that will make us energy independent and will create thousands of jobs at the same time.
A consortium of organizations including TARTA, the University of Toledo and Toledo Public Schools will implement a demonstration project to fuel their bus fleets with biodiesel as a result of the project.
IL Gov Issues Executive Order for Biodiesel in State Vehicles
At a Marathon gas station in Chicago, Illinois Gov. Rod R. Blagojevich announced in April a comprehensive plan to help stem skyrocketing gas prices in Illinois. In addition to broad legislation to protect consumers in Illinois from price gouging and pushing Washington to take steps to reduce reliance on foreign oil supplies, the Governor signed an executive order requiring state employees to use renewable fuels - like biodiesel and E-85 - in state-owned vehicles whenever practical.
Ultimately, if we truly want to bring down gas prices, we're going to have to stop relying on OPEC, stop using more gasoline than we have to, and start using more resources like ethanol, that are abundant here in Illinois, and in America, said Blagojevich.
KY Governor Celebrates Earth Day with Biodiesel
Biodiesel use is on the rise in Kentucky. As part of Earth Day celebrations, Kentucky Governor Ernie Fletcher announced that all Kentucky State Resort Parks are now required to use B20 in diesel vehicles and equipment. He also announced that funding had been identified to offset the cost differential for B20 for public school buses in non-attainment air quality counties. The funding will be about $500 thousand over the next two years. Funding has also been identified for Kentucky municipalities to request funds for purchasing biodiesel for city and county fleets. Additional funding will also be provided for an idle reduction plan and other alternative fuel programs. According to the Kentucky Clean Fuels Coalition, the changes fit into a new portfolio of programs begun by the US Department of Energy in Washington.
Biodiesel Pumps Open to Public in Missoula, Montana
Consumers, renewable fuel advocates and fleet managers celebrated the local availability of biodiesel at two Cenex Convenience Store locations in Missoula, Mont. on April 24. The Cenex (www.cenex.com) locations at 1108 West Central and 4570 North Reserve Street recently began offering B20.
We?ve seen a lot of interest from several local fleets, as well as consumers with diesel pickups and cars in the area, said Kyle Stensrud, petroleum division manager for CHS of Missoula, who owns and operates both locations. We see biodiesel as a growing opportunity for us at both locations that will bring in new customers and help us be an advocate for cleaner air.
Sustainable Systems (www.sustainablesystemsllc.com), a Montana biodiesel and biobased products company, is supplying the soy-based biodiesel to the stations.
There are more than 200 retail biodiesel locations nationwide (http://www.biodiesel.org/buyingbiodiesel/guide). Most of them have sprung up in the last two years. Industry experts expect demand to increase as US automakers announce plans to introduce more diesel passenger cars into the market.
FL Project to Evaluate Biodiesel at Airport
The Florida Energy Office and the Department of Energy are collaborating in a pilot project using biodiesel fuel at Miami International Airport. The project will use biodiesel to power baggage handling and ground support equipment at Florida's busiest airport.
Florida is preparing for future growth and energy demands by exploring alternative, cleaner fuels, said Department of Environmental Protection Secretary Colleen M. Castille. Using green fuel to operate everyday equipment at major commercial centers reduces reliance on petroleum and protects air quality.
The Florida Energy Office, together with Gold Coast Clean Cities Coalition and the Miami Dade Aviation Department, will assess the feasibility of replacing diesel with biodiesel fuel in baggage transport equipment and fuel trucks. The $54,000 project will also assess the market potential for biodiesel, explore its compatibility with current systems and test fuel quality, performance and storage requirements.
Among the top national and international airports in freight, cargo and passenger traffic, Miami International is located in one of the country's fastest growing regions. Over the next two decades, projected growth in South Florida is expected to increase the airport's petroleum needs dramatically. Biodiesel may help the airport meet it's 10 percent petroleum reduction goal.
Boats and Buses Use Cleaner Burning Biodiesel in Ft. Lauderdale
A donation of a thousand gallons of biodiesel will help provide green transportation for attendees of the Department of Energy's 10th National Clean Cities Conference & Expo, taking place at the Greater Ft. Lauderdale/Broward County Convention Center May 2-5.
This conference will provide an opportunity to South Floridians to view and learn about an array of alternative fuel technologies such as biodiesel, which is becoming the most popular alternative fuel blend to power transit buses and water buses to reduce air and water pollution using existing diesel vehicles, said Carlos Andres Gonzalez, Florida Gold Coast Clean Cities Coordinator. Biodiesel can greatly reduce transportation born pollutants to ensure that the South Florida region remains the world's tourist destination of choice.
Griffin Industries (www.griffinind.com), a Cold Spring, Kentucky biodiesel producer, is donating 1000 gallons of biodiesel for the conference. But biodiesel is not new to the area. The City of Coconut Creek, a long time supporter and user of biodiesel, is donating the use of its biodiesel-powered buses to transport conference attendees. The city uses biodiesel in all of its diesel vehicles on a regular basis, including dump trucks, tractors, sewage trucks and ambulances.
We're trying to get away from petroleum as a city, and biodiesel was a way to do that without making major changes to our vehicles or infrastructure, said Rich Cascio, the city's property maintenance manager. The fuel has performed very well.
Water Taxi, Inc., which will also used the donated biodiesel to provide transportation for conference attendees, has used biodiesel in its diesel generators and diesel powered boats to ferry passengers around the Ft. Lauderdale area since 2001.
Energy Technology Expo and Conference to Debut in August
A newly formed expo hopes to bring together all branches of the international renewables marketplace under one roof while attracting leaders from the power generation industry, governments, energy ministries, public and private utility companies, distributors and retailers.
The Energy Technology Expo and Conference (ETEC) takes place August 31 - September 1 in Denver, Colo. The event is presented in partnership with NREL, the U.S. Department of Energy?s National Renewable Energy Laboratory. The conference is co-located with the 8th World Renewable Energy Congress. Held every two years, the Congress provides an international forum that attracts several hundred delegates from nearly 100 countries.
ETEC brings together major players from government, industry, and academia to answer the call for the establishment of real goals, and to showcase the diversity of technology solutions, including fuel cells, wind power, solar, geothermal, photovotaics, biomass, wave and tidal power, hydropower and of course, biodiesel.
To register or exhibit, visit www.energytechexpo.com.
Upcoming Events
* 95th American Oil Chemists' Society Annual Meeting & Expo, May 9 - 12, 2004 Cincinnati, Ohio
* The Energy Technology Expo and Conference (ETEC), August 31 - September 1, 2004, Denver, Colo.
Contact Us
Jenna Higgins, Director of Communications
jhiggins@biodiesel.org
Bev Thessen, Information Coordinator
bthessen@biodiesel.org
This bulletin is also available in PDF format online at
http://www.biodiesel.org/news/bulletin/
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