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|  | NBB Encourages Participation to Ensure Sustainable Biodiesel |  |
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 Sustainability has always been a key priority for those in the biodiesel industry. Whether sustainability is measured in terms of climate change and the environment or economic and energy security for the country, the industry prides itself on the sustainability of biodiesel. The National Biodiesel Board and its supporters recently find themselves involved in more conversations about sustainability as interest has grown among the public and the media.
The Renewable Fuels Standard (RFS), recently expanded under the 2007 Energy Bill, includes a requirement that specifies biomass-based diesel fuels must meet a threshold of 50% carbon reduction over petroleum. Soy-based biodiesel, which comprises most of the biodiesel in the US, reduces carbon dioxide by 78%. Other feedstocks, such as recycled greases, have even higher carbon reductions. The NBB is committed to comprehensive research to correctly characterize the carbon and energy balance of new feedstocks to ensure biodiesel can meet the increasing demand and continues to be a sustainable and renewable fuel.
Sustainability includes much more than carbon life-cycle analysis. To coordinate the many policies and strategies for sustainable biodiesel, the NBB has established a Sustainability Task Force. The task force will look at ways that NBB can support efforts to ensure the world’s resources are used responsibly for biofuels production.
At the National Biodiesel Conference & Expo last month, NBB chair Ed Hegland appointed Emily Bockian Landsburg of the Energy Cooperative and Philadelphia Fry-O-Diesel as the chair of the new Sustainability Task Force. Now, Landsburg and NBB task force staff assistant Don Scott are welcoming applications of NBB member companies to the task force. Anyone, including non-members, can nominate candidates for the group. An advisory committee to the task force is being established as a formal way to engage key experts who are not members of NBB, and individuals can provide their input by writing to sustainability@biodiesel.org.
Applications to be on the task force are due by close of business March 5. To find out more about this process, please see NBB’s sustainability Web site at www.biodiesel.org/aboutnbb.
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| | House Approves Energy Tax Package | |
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On Wed., Feb. 27, the U.S. House approved H.R. 5351, the Renewable Energy and Energy Conservation Tax Act of 2008, by a 236 – 182 margin. The legislation is very similar to the energy tax package approved by the House in August of last year.
H.R. 5351 would extend the biodiesel tax incentive for two years through 12/31/10; properly define co-processed renewable diesel as not qualifying for the $1 per gallon renewable diesel tax incentive; and would retroactively deny the tax incentive for so-called “splash and dash” transactions. Like the August 2007 House Energy Bill, the legislation as drafted would also deny the credit for exported fuels. The August bill denied these credits upon enactment. H.R. 5351 pushes the prohibition on claiming the credits for exports to back to December 31, 2008, to correspond with the duration of the current law tax incentive.
The measure’s fate in the Senate is unclear, and the Administration has previously issued a veto threat based on the revenue-raising measures included in the bill.
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| | Biodiesel RINs Help Meet Renewable Fuel Standards | |
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The Environmental Protection Agency (EPA) in February published the new Renewable Fuel Standard (RFS) for 2008. The Federal Register outlined that 9 billion gallons of renewable fuels are going to be required to meet the 7.76 percent RFS in 2008. The petroleum sector is preparing for compliance with the updated RFS and must secure enough infrastructure to move renewable fuels in the marketplace. Every gallon of renewable fuel that is produced or imported into the United States is assigned a renewable identification number (RIN). Refiners, blenders and importers must acquire sufficient RINs to demonstrate compliance with their volume obligation.
"Biodiesel RINs offer 'safe' RINs for the petroleum industry," said Joe Jobe, National Biodiesel Board (NBB) CEO. "First, biodiesel will exceed the 20 percent lifecycle greenhouse gas reduction requirements for the base renewable fuel mandate in 2009. In fact, according to a USDA/DOE life cycle study, soy-based biodiesel has a 78% carbon dioxide reduction. Second, biodiesel can be used in 2008 and the RINs can be safely carried forward to 2009, which means the RINs can be sold or purchased without fear of whether or not they will be valid."
The Clean Air Act, as amended by the Energy Independence and Security Act of 2007 (EISA), requires the EPA Administrator to annually determine an RFS. It applies to refiners, importers and certain blenders of gasoline. On the basis of this standard, each obligated party determines the volume of renewable fuel that it must use.
In 2008, the NBB anticipates the domestic biodiesel industry will produce more than 500 million gallons or at least 750 million compliant RINs, which can be used by the petroleum sector to meet its RFS requirements in both 2008 and 2009.
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| | NBAC Welcomes Two BQ-9000 Producers | |
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 Iowa Renewable Energy, LLC, and Innovation Fuels have become BQ-9000 Producers from the National Biodiesel Accreditation Commission. Iowa Renewable Energy (IRE) is located in Washington, Iowa, and Innovation Fuels is located in New York. They are the most recent additions to BQ-9000 - a voluntary quality assurance program that provides confidence that biodiesel produced at the facility will consistently meet the ASTM D 6751 specification for biodiesel. There is also a marketer program under BQ-9000.
“The industry is way beyond the ‘Mom, Pop, and French Fry’ stage. BQ-9000 is industry-recognized as the standard for quality,” said Alan Yoder, general manager. “One little mistake by one producer can destroy the reputation of the whole industry. I’ve heard some say they don’t need to go through the expense to make biodiesel through the BQ-9000 program. I say they can’t afford not to.”
Bob Lindenbaum, Chief Marketing Officer of Innovation Fuels, agrees. "BQ-9000 has become the quality program recognized as the industry standard, giving confidence to prospective and current customers. We have understood the importance the BQ-9000 quality program since our inception."
Iowa Renewable Energy, a member of the Renewable Energy Group, Inc., network, is the fifth REG network plant to receive BQ-9000 certification.
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| | National Biodiesel Board Names to Know | |
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As new leadership recently took the reins of the National Biodiesel Board (NBB) governing board through chair Ed Hegland, here is a quick guide on some of NBB’s other leadership - its committee chairs: - Jess Hewitt, CEO, President, Gulf Hydrocarbon, will oversee the Marketing Committee.
- Bob Metz, South Dakota Soybean Research & Promotion Council, will head up the Technical Committee.
- Gene Gebolys, President, World Energy, leads the Regulatory Committee.
- Kris Kappenman, Business Manager Biodiesel, ADM, is the Trade Committee chair.
- Lisa Ryan, VP, Alterra Bioenergy – Producer Task Force
- Emily Bockian Landsburg, Manager of Business Development, Philadelphia Fry-O-Diesel – Sustainability Task Force.
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| | Opportunity with NBB: Biodiesel Technical Engineer | |
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The National Biodiesel Board has an immediate opening for a Technical Engineer in its Jefferson City, Mo., office. Responsibilities include managing biodiesel technical projects, addressing the technical needs of membership, and working with petroleum and biodiesel production companies, blenders, distributors, regulators, and end users. Extensive travel is required.
Applicants should have a minimum of a Bachelors degree in engineering, chemistry, or related field. Two to five years of experience in the petroleum or biodiesel industry is preferred. Candidates should have field experience with troubleshooting problems and technical issues in a group setting. The applicant should possess excellent writing skills, and experience working with project budgets and managing deliverables is required. More information on this position is at www.biodiesel.org.
Send cover letter, resume with salary history, and three letters of reference by March 15 to: Donnell Rehagen, Chief Operating Officer, National Biodiesel Board, P.O. Box 104898, Jefferson City, Missouri 65110-4898; drehagen@biodiesel.org.
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| | Cool Honors for a Colorado City’s Biodiesel Use; CO Fleets Using Biodiesel | |
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 The City of Colorado Springs, Colo., has been in the spotlight recently for its commitment to biodiesel. In early 2008, the City was named the top municipal biodiesel fleet in the nation by Government Fleet Magazine. It currently uses a B20 blend year-round – cold weather or otherwise.
Colorado Springs has been using B20 since 2003. Today, more than 2,400 city vehicles and equipment run on the fuel. As of early 2008, the city had used 1.5 million gallons of B20. The city estimates that this amount is equivalent to over 491 vehicles not being driven for one year, or a reduction of over five million pounds of carbon dioxide being released into the atmosphere.
According to Nick Kittle, Fleet Finance Manager for the City of Colorado Springs, using high quality fuel that meets or exceeds the ASTM standard is the key to their success. “We make a point of using only high quality biodiesel fuel purchased from a reputable supplier,” he said.
“Colorado can get pretty cold in the winter months and we need to be sure our snow plows, fire engines and other vehicles will operate during a deep freeze. We use a 50% (#2 diesel), 30% (#1 diesel), 20% (biodiesel) additized winter blend that we know we can count on.”
In other Colorado news, office products supplier Corporate Express US, Inc., announced recently that it is fueling the majority of its delivery truck fleets in Colorado and Kansas with B20 biodiesel. Blue Sun Biodiesel, based out of Colorado, is supplying the fuel comprised of 20% US oilseed-based biodiesel and 80% petroleum diesel. A total of 45 trucks are running on B20.
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| | California-based Rotten Robbie Sees Benefits of Selling Biodiesel | |
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Rotten Robbie, a Bay Area convenience-store chain, recently profiled customers’ views on using biodiesel. Rotten Robbie began selling biodiesel at four locations in March, 2007. The chain’s results showed that when price is the same, many diesel vehicle drivers prefer to fill up with biodiesel. The company owns 34 stores within 100 miles of its San Jose headquarters and, of its biodiesel sites, is selling a B20 blend.
In an article that ran recently in several California business journals, Tom Robinson, president of the Robinson Oil Corp., said this about its experience selling biodiesel: "We made it price neutral -- to not drive people to it or away from it. We wanted to see if people actually want it. I've definitely come to conclude there is a demand for it. It's been a success."
Rotten Robbie, owned by Robinson Oil Corp., added biodiesel to its lineup because it's something customers say they want and because it can help the environment. Robinson said the company also liked the idea that it helps displace imported oil.
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