The Great Lakes Zephyr - Wind Energy & Hydrogen Journal

Biodiesel Bulletin - September 1, 2004

Survey Says: Americans Support Biodiesel Tax Incentive

Biodiesel Becomes Campaign Issue

Washington Update

Maine Heats State Buildings with Biodiesel

NJ Utilities Authority Launches Biodiesel Program

Public Pumps Open in Vermont, Utah

"Biodiesel Education Network" Fills Petroleum Industry Demand

Call for Papers for National Biodiesel Conference and Expo

U of Idaho to Host State DOT Biodiesel Conference


Survey Says: Americans Support Biodiesel Tax Incentive

A new national public opinion survey of adults shows 89 percent of Americans think it is important for Congress to pass a biodiesel tax incentive to make American-made biodiesel more cost competitive with regular diesel fuel. The survey showed strong support for biodiesel as a way to help reduce U.S. dependence on foreign sources of oil and to provide potential health benefits to consumers.Congress is currently considering several bills that include a federal excise tax credit amounting to one penny per percentage point of biodiesel blended with petroleum diesel, lowering the price to all consumers. Due in large part to the efforts of U.S. Senator Chuck Grassley (R-IA), Sen. Blanche Lincoln (D-AR) and others, this biodiesel tax incentive was included in the final Energy Bill. The provision is also included in the Senate-passed Transportation Bill and legislation approved by the Senate to repeal the Foreign Sales Corporation and Extraterritorial Income (FSC/ETI) tax exclusion. The survey also found that after hearing the benefits of biodiesel, 77 percent of respondents would be likely to use biodiesel and 61 percent would be willing to pay at least 1-4 cents more per gallon for the fuel. The tax incentive would bring the cost difference of B20 closer to that range.“This survey shows that Americans want to do the right thing and switch to a cleaner-burning, domestically produced fuel that is better for the environment and human health,” said National Biodiesel Board Executive Director Joe Jobe. “Congress now needs to follow through by passing this important legislation that will help spur the increased use of biodiesel while reducing our reliance on foreign oil.”According to the survey, Americans view domestic energy security as the most important benefit of biodiesel. The number two most popular reason for using more biodiesel was that “biodiesel is better for our health because it reduces air toxins and cancer causing emissions.”The online survey of 1,042 randomly selected adults was funded by the Biodiesel Education Program, a U.S. Department of Agriculture grant awarded to the National Biodiesel Board. It was conducted by Moore Information Public Opinion Research June 26-27, 2004.

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Biodiesel Becomes Campaign Issue

From the campaign trail, President Bush and Democratic Presidential Nominee John Kerry have each talked about the important role biodiesel can play in the energy security of the US. Vice President Cheney, who spearheaded the President’s Energy Taskforce, also stressed the importance of passing legislation with a biodiesel tax incentive to help diversify America’s energy supply. Click here for audio clip. President Bush expressed his continued support for biodiesel while speaking to a crowd in Cedar Rapids, Iowa. “In order to make sure we continue to grow, we need sensible energy policy in America,” he said. “…any reasonable energy policy is to encourage research and development to make sure we can use ethanol better and biodiesel better. It makes sense….we can do things in environmentally friendly ways that we couldn't do 20 years ago.”Kerry has included broad renewable fuel provisions in his energy plan, including a biodiesel tax incentive. Kerry’s plan, which he unveiled while campaigning in August at a farm in Smithville, Missouri, calls for a biodiesel and ethanol tax incentive until 2020.“With every step we take toward an energy independent America, we’re not just securing ourselves against threats from abroad, we’re securing ourselves a stronger future here at home,” Kerry said. “We’re putting people to work, we’re creating new jobs, we’re fueling the growth of a new economy and we’re making sure that instead of sending millions of our dollars to the Mideast, we’re investing them in the Main Streets and small farms of the Midwest and all across America.”Kerry’s energy plan can be found at www.johnkerry.com/pdf/pr_2004_0806.pdf

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Washington Update

Even though Congress is still in recess, work continues behind the scenes in Washington to plan for a busy September. Congress is set to reconvene after Labor Day. The schedule is filling up quickly: fiscal year 2005 Appropriations Bills loom, a conference on the transportation bill is pending and the corporate tax bill is waiting to go to conference. The Senate version of the latter two bills contains the biodiesel tax incentive, with the corporate tax bill being the best shot for passage. However, the corporate tax conference cannot get started until Senate Finance Committee Chairman Chuck Grassley (R-IA) and House Ways and Means Committee Chairman Bill Thomas (R-CA) resolve a dispute over who will chair it.

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Maine Heats State Buildings with Biodiesel

Maine has expanded the use of biodiesel to heat state office buildings this winter. In Augusta, the State House, Cross State Office Building, State Museum and a number of other buildings will be heated with a biodiesel blend. The State Planning Office, the Department of Motor Vehicles and more have been heated since last fall with B10.“In just over a year after the creation of the Office of Energy Independence and Security, Maine State Government has become a leader nationally for its sustainable energy practices,” stated Governor John E. Baldacci. “Expanding the use of biodiesel is a win for energy independence and a win for the environment. The purchase of renewable fuels increases energy efficiency, improves air and water quality, and reduces the risk of global warming.”Beth Nagusky, Director of the Office of Energy Independence and Security, said that her office continues to explore the economic viability of sitting a waste vegetable oil reprocessing facility in Maine to convert used restaurant oil into biodiesel. “We are hoping that the increase in the State’s purchase and the growing demand for this clean, renewable fuel in Maine will help to make such a project economic,” she said. “Ultimately, Maine’s farmers might be able to grow crops that can be used as bio-fuels, further reducing our dependence on imported oil.” Visit www.maineenergyinfo.com to learn more about the state’s biodiesel heating oil usage.

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NJ Utilities Authority Launches Biodiesel Program

The Atlantic County Utilities Authority (ACUA) is making the switch to B20 under New Jersey’s Biodiesel Fuel Rebate Program. This program was introduced in July 2003 and is funded by $500,000 in Petroleum Violators Escrow (PVE) account monies, known in New Jersey as Petroleum Overcharge Reimbursement Fund (PORF) monies. The program provides rebates to local government entities, including counties, municipalities, governmental authorities and school districts, for the incremental costs of purchasing biodiesel fuel, in lieu of petroleum diesel. The fleet utilizes approximately 350,000 gallons of diesel fuel each year. Using B20 fleet wide will save more than 70,000 gallons of diesel fuel each year.

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Public Pumps Open in Vermont, Utah

Fleming Oil Co., Inc., has opened Vermont’s first retail biodiesel station. The Fleming Food Mart Shell station at 429 Canal Street in Brattleboro sells B20 to the public. Fleming Oil Co. has already been retailing biodiesel blends at its West Chesterfield, N.H., location since 2003.“We are very pleased with the customers’ response to our introduction of the product into the area. People were looking for it and it is nice to be able to fill that need,” said Rick Fleming, president of the company.“I think long term there will be more fuels like this available nationwide, which will happen as more sites and greater production make prices more competitive,” said Fleming. “We would be excited about that, because it’s great for the environment.” Fleming added that environmental benefits are the main reason their stations now carry biodiesel.Biodiesel supporters also applauded the opening of the first retail fueling station in Utah to carry biodiesel. The station – Dal Soglio Sinclair in Midvale, Utah – recently began selling a two percent blend of soy biodiesel for the same price as regular petroleum diesel to customers in the Salt Lake City area. It is located at 398 S. 7th St. West.American Bio-Fuels (ABF) of Bakersfield, CA and partner GreenStar Intermountain, LLC are providing the biodiesel to the station. A grant from Salt Lake Clean Cities, a Department of Energy program, supported the project.“Biodiesel growth has been strong in many states, including California where our plant is, but the pump opening in Utah signifies a growing market in other Western states,” said Joseph P. LaStella, P.E., President of Green Star Products, Inc.(OTC: GSPI) and Co-Managing Director of AMERICAN BIOFUELS, LLC.For a map of retail biodiesel pumps, visit
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“Biodiesel Education Network” Fills Petroleum Industry Demand

More than 150 petroleum professionals have turned to the Biodiesel Education Network (BEN) since its launch in late July. “Ask BEN” is a resource for petroleum distributors to ask their technical, marketing and other biodiesel questions from the Petroleum Marketers Association of America (PMAA) Web site www.pmaa.org. The New England Fuel Institute and Massachusetts and Pennsylvania Oil Heat Councils have added BEN to their sites as well.“We have been pleasantly surprised by the high volume of use so far,” said Paul Nazzaro, president of Advanced Fuel Solutions and petroleum consultant to the National Biodiesel Board (NBB). “It helps quantify what we’ve known all along – there is demand in the petroleum industry for timely, accurate information that aids decision makers in how to get involved with biodiesel and have a successful experience. This is a fuel they’re very interested in.” BEN is funded by the USDA Biodiesel Education Program.

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Call for Papers for National Biodiesel Conference and Expo

Consumers, fuel suppliers, government leaders and others with an interest in biodiesel will want to mark their calendars for the second annual National Biodiesel Conference & Expo, to take place in Ft. Lauderdale, Fla., Jan. 31 – Feb. 2, 2005. The National Biodiesel Board (NBB) is further expanding the conference after the overwhelming positive response to last year’s conference.Conference sessions will provide the latest information on technical, marketing and regulatory aspects of the fuel. A primary focus of the conference will be new, cleaner diesel technology. NBB is issuing a call for presentations and posters for the second annual conference and expo. The deadline for submission is September 30, 2004. NBB and other program sponsors will select the papers to be presented at the conference in early October and will formulate the specific technical program track based on these. Papers will likely fall into the following general categories:

Biodiesel Fleet Experience

Fuel Property Improvement

Fuel Standards and Fuel Quality

Faster, Simpler, Better Test Methods

Engine Testing

Novel Production Technologies Please fill out the form at
www.biodiesel.org/expo2005.

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U of Idaho to Host State DOT Biodiesel Conference

The University of Idaho will host a Biodiesel Utilization Workshop Sept. 9-10 in Boise.This educational conference is intended to assist maintenance and transportation personnel in decisions related to biodiesel use, and to provide information on supply, handling, storage, warranties, engine durability and emissions. The conference will also feature information related to practical day-to-day use of biodiesel. Engine manufacturers, emission experts, the National Biodiesel Board and diesel fleet users will provide biodiesel updates. Any potential biodiesel user who would like information on these topics is welcome to register. To register online, and for complete details, visit www.biodieseleducation.org. The workshop is sponsored by the USDA Biodiesel Education Program.

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Upcoming Events

Biodiesel Utilization Workshop September 9-10, 2004 Centre on the Grove, Boise, ID
www.biodieseleducation.org

Industrial Applications of Renewable Resources October 11-14, 2004 The Fairmont Hotel, Chicago, IL
www.aocs.org/meetings/ia

2004 Methanol Forum October 13-14, 2004 St. Regis Hotel, Houston, TX
www.methanol.org

Biodiesel Workshop Series October 25-29, 2004 Iowa State University, Ames, IA
www.me.iastate.edu/biodiesel

Clean Heavy-Duty Vehicles Conference 2005: Linking Energy Efficiency, Emissions and National Security February 22-24, 2005 La Quinta Resort & Club, La Quinta, CA
www.calstart.org

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Contact Us

Jenna Higgins, Director of Communicationsjhiggins@biodiesel.org

Bev Thessen, Information Coordinatorbthessen@biodiesel.org

This bulletin is also available in PDF format online athttp://www.biodiesel.org/news/bulletin/