Biodiesel
News
News
from the National Biodiesel Board
August 2, 2004
See archives at biodiesel.org
Cheney
Confirms Need for Biodiesel Tax Incentive
“Small Producer Membership” Created
During NBB Board Meeting
NCWM Adopts New Blend Specifications
More Biodiesel Facilities Open at Midwestern Terminals
Retail Biodiesel Now Available in Twin Cities
Refiner
Names Indiana Business Top Soy Biodiesel Retailer
“BEN” Assists Petroleum Distributors
Mark Your Calendars – 2005 National Biodiesel
Conference & Expo
NBB’s Bob Metz Elected ASA First Vice President
Have You Joined the Biodiesel Alliance & Backers?
Cheney Confirms Need for Biodiesel
Tax Incentive
The National Biodiesel Board and the American Soybean Association
(ASA) commended Vice President Cheney, who spearheaded the President’s
Energy Taskforce, for stressing the importance of passing legislation
with a biodiesel tax incentive to help diversify America’s
energy supply.
Speaking
July 19 in Columbia, Mo., near NBB headquarters, Cheney expressed
support for the biodiesel tax incentive while discussing the importance
of the Energy Bill, which has stalled in Congress.
“That
bill includes within it significant incentives for biodiesel and
ethanol,” he said. “It's very important, we think, to
go down that road because it will help us to diversify our supplies,
but it also will reduce the extent to which we're dependent on foreign
sources of oil for our basic transportation. It's a very good piece
of legislation. We need to get it done.”
Due
in large part to the efforts of U.S. Senator Chuck Grassley (R-IA),
Sen. Blanche Lincoln (D-AR) and others, a biodiesel tax incentive
was included in the final Energy Bill. The biodiesel tax incentive
was also included in the Senate-passed Transportation Bill, among
others.
President
Bush also expressed his continued support for biodiesel while speaking
to a crowd in Cedar Rapids, Iowa on July 20.
“In
order to make sure we continue to grow, we need sensible energy
policy in America,” Bush 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. For the sake of national security and economic
security, we need to be developing the resources we have here at
home to become less dependent on foreign sources of energy.”
NBB
Chairman and ASA First-Vice President Bob Metz, a South Dakota soybean
farmer, attributes the strong bipartisan support of the tax incentive
to being a win for all Americans.
“It
is very gratifying to hear Vice President Cheney say so clearly
that there is support for the biodiesel tax incentive at the Executive
level, and to hear President Bush say he supports biodiesel,”
he said. “Now is the time for them to use their leadership
to get this through. We thank the Vice President for successfully
brokering the Energy Bill last time, but we need him to continue
to fight for this.”
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“Small Producer Membership”
Created During NBB Board Meeting
Farmer leaders, fuel suppliers and other stakeholders of the biodiesel
industry joined forces July 11-12 in Washington D.C. at the National
Biodiesel Board (NBB) meeting.
In
one of the most significant developments at the meeting, NBB members
voted to create a new membership class for small biodiesel producers.
The decision was based on recommendations from a small producers
working group formed by NBB to address challenges specific to them.
Kent Bullard, biodiesel advocate and fleet manager at Channel Island
National Park, chaired the group. Fuel producer board members and
small producers served as members.
The
new Small Producer Nonvoting Associate Member category offers producers
manufacturing less than 250,000 gallons a year reduced NBB membership
dues. In order to encourage good quality control by small producers,
they will be given the additional benefit of crediting two years
worth of dues toward BQ-9000 certification fees. BQ-9000 is a quality
control program established by the National Biodiesel Accreditation
Commission, an autonomous committee of NBB.
Also
at the meeting, NBB presented Rep. Kenny Hulshof, R-MO, with the
National Energy Leadership Award for his commitment to renewable
energy and domestic energy security. Other dignitaries visiting
the board in Washington included Sen. Kit Bond, R-MO, Sen. Thomas
Carper, D-DE, several key Congressional staffers and other experts
on the status of the biodiesel tax incentive.
NBB
also presented Chris Magnuson with the Distinguished Service Award
during the meeting. Magnuson, who recently left his position at
Smith, Bucklin & Associates, was recognized for his important
role in biodiesel development through his years of running the United
Soybean Board’s funding to NBB. Magnuson is now with Illinois
Farm Bureau.
The
board was pleased to welcome new members Marty Ross, representing
the Mid-Atlantic soybean boards, Greg Hopkins of US Biofuels Inc.,
Rob Ryan of Transmontaigne Product Services, and new NBB staff member
Amber Thurlo Pearson who will serve as a communications specialist.
The
next board meeting will be Nov. 16-17 in St. Louis.
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NCWM Adopts New Blend Specifications
The full body of the National Conference on Weights and Measures
unanimously adopted a recommendation by the National Biodiesel Board
(NBB) to withdraw a proposed requirement that all biodiesel blends
meet the national specification for petroleum diesel.
“This
is significant because there are biodiesel properties that are different
than petroleum diesel, so not all blends will meet the diesel specification,”
said Scott Hughes, NBB regulatory manager. “This decision
is positive for the biodiesel industry. Many states are presently
looking to NCWM for guidance on fuel specifications for biodiesel
and blends, and they will likely implement the standards adopted
by NCWM.”
NCWM
is a professional organization that promotes uniformity in U.S.
weights and measures laws, regulations, and standards to achieve
equity between buyers and sellers in the marketplace.
NCWM
also recently voted to define biodiesel in a way that is consistent
with current industry practice. The organization adopted the official
definition of biodiesel from the American Society of Testing and
Materials (ASTM). NCWM added a definition of “biodiesel blend”
– including that the base fuels must meet their individual
ASTM specifications (D 975 and D 6751) prior to blending. An exception
is included for diesel fuel that allows for the blending of diesel
that is out of spec for sulfur and aromatics so long as the properties
for both in a finished blend meet pertinent national and local specifications.
NCWM
tabled a proposed requirement to adopt identification and labeling
requirements, pending further discussion on to what extent biodiesel
blends must be labeled at the pump and what the language on pump
labels should say. The organization has asked for NBB’s input
on this important matter.
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More Biodiesel Facilities Open at Midwestern
Terminals
Two more biodiesel facilities have opened up at petroleum loading
racks, further streamlining the process of distributing biodiesel
nationwide. Peru, Indiana’s Countrymark Co-op became the nation’s
first soy biodiesel rack injection unit with custom-blending capabilities,
with its July 30 grand opening. CHS celebrated extending its location
offerings of rack-injected biodiesel with its site in McFarland,
Wis.
CHS
previously opened the nation’s first facility to offer pre-blended
B2 (two percent biodiesel mixed with petroleum diesel) and B5 at
the petroleum loading rack with its McPherson, Kan., terminal in
April.
In
the past, petroleum distributors obtained pure biodiesel (B100)
and petroleum diesel fuel from separate supply sources and blended
accordingly. Access to pre-blended biodiesel increases operational
efficiencies for the distributor while maintaining integrity of
the product, and will significantly increase availability to consumers.
Although
the majority of biodiesel customers are large fleets such as those
found at public utility companies, the farm is becoming a large
market for the fuel. The CHS and Countrymark terminals will sell
biodiesel blends to many distributors whose primary customers are
farmers. United Soybean Board research shows 31 percent of farmers
use biodiesel, with up to 50 percent using it in some states.
“Farmers
believe in biodiesel and want to use their own product,” said
Bob Metz, chairman of the National Biodiesel Board (NBB) and South
Dakota soybean grower.
“They’ve
invested millions of dollars in biodiesel commercialization through
the soybean checkoff. By using biodiesel, we are investing in the
life of our farm equipment while helping the biodiesel industry
thrive. The result ultimately will be sustained higher soybean prices.”
Readers
can learn more about Countrymark by visiting countrymark.com,
and CHS by visiting cenex.com.
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Retail Biodiesel Now Available in Twin
Cities
Minnesota is one step closer to meeting its goal of using cleaner,
domestically produced, renewable components in its fuel. Farmers
Union Cooperative’s Apple Valley Marathon has become the first
service station in the Minneapolis/St. Paul area to sell B2.
As
the result of a law passed by the Minnesota Legislature in 2002,
Minnesota is the first state to require nearly all diesel fuel to
contain two percent biodiesel, beginning in July 2005. Similarly,
Minnesota has a law in place that requires virtually all gasoline
to contain 10 percent ethanol. An estimated 16 million gallons of
diesel fuel will be replaced each year by biodiesel.
According
to Tim Gerlach, Director of Outdoor Air Programs for the American
Lung Association of Minnesota, the B2 requirement is a big step
toward advancing cleaner diesel blends.
"Unlike
other alternatives to diesel, B2 biodiesel requires no special modifications
to engines, pumps or tanks -- any diesel engine can use this fuel
today with excellent performance, mileage and power," he said.
For
a national guide to buying biodiesel, visit www.biodiesel.org/buyingbiodiesel.
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Refiner Names Indiana Business Top
Soy Biodiesel Retailer
Countrymark Co-op has recognized Columbus, Indiana-based Premier
Ag LLC as the top soy biodiesel retailer in the nation, selling
more than 38,000 gallons of B100 between January 1, 2004, and June
25, 2004. Premier Ag is a farmer-owned co-op that sells premium
petroleum products in a four county area in southeastern Indiana.
After
the 2004 National Biodiesel Conference & Expo, sales representative
Larry Kinser returned to Premier Ag and asked that the company set
a new policy that all distillate fuels include 2 percent soy biodiesel.
The company has sold about two million gallons of B2.
Premier
Ag attributes its success to its fuel refiner Countrymark Co-op,
Indiana’s only privately owned refiner. According to Countrymark
Co-op Sales Manager Jon Lantz, Premier Ag ranks first in the nation,
marketing more than any other retailer on record. Last year the
farmer-owned co-op constructed the nation’s first metered
blending biodiesel facility at its Jolietville, Ind., terminal.
“Premier’s
decision to incorporate soy into nearly every gallon of diesel fuel
sold extends the life of American crude oil and supports American
soybean farmers,” said Jerry Osterholt, director of the Indiana
Soybean Board and Indiana’s representative to the National
Biodiesel Board.
Osterholt
added that as the popularity of biodiesel grows, so does availability.
For a national guide to buying biodiesel, visit www.biodiesel.org/buyingbiodiesel.
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“BEN” Assists Petroleum Distributors
A new tool for biodiesel education is up and running. A partnership
between the National Biodiesel Board (NBB) and the Petroleum Marketers
Association of America (PMAA) has led to the introduction of a new
expert in biodiesel, BEN, to answer petroleum distributors’
questions. BEN stands for Biodiesel Education Network, and is a
resource for PMAA members with technical, marketing and other biodiesel
questions. BEN is found on the PMAA Web site at www.pmaa.org. The
partnership between these two groups should significantly increase
the number of petroleum distributors carrying biodiesel.
“Petroleum
marketers need to learn all they can about biodiesel and its growing
potential in the energy marketplace,” said Dan Gilligan, president
of PMAA. “A marketer that is well informed about the opportunities
in marketing biodiesel is a marketer that will reap the benefits.”
Distributors
will ask their questions to BEN via the Web site, and a biodiesel
and petroleum expert will answer in detail within 48 hours.
BEN
is funded by the USDA Biodiesel Education Program.
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Mark Your Calendars – 2005 National
Biodiesel Conference & 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 and what it means for consumers
and biodiesel industry stakeholders.
In
addition to the rich educational content of the meeting, NBB is
hosting a number of networking and social events, including a golf
tournament at one of Ft. Lauderdale’s finest courses, an opening
night reception and more. The conference will take place at the
Ft. Lauderdale Marina Marriott and Broward County Convention Center.
Registration
information will soon be available at biodiesel.org.
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NBB’s Bob Metz Elected ASA First
Vice President
At its St. Louis board meeting in July, The Board of Directors of
the American Soybean Association (ASA) elected Bob Metz, who is
currently chairman of the National Biodiesel Board, to serve as
First Vice President of ASA. The move places Metz, a soybean farmer
from South Dakota, in line to be ASA President next year.
ASA
confirmed Neal Bredehoeft from Alma, Mo., as President for the coming
year, and Ron Heck, an NBB director from Perry, Iowa, as Chairman.
Also elected were Bob Rikli from Murdock, Neb., as Secretary, and
Ed Hegland from Appleton, Minn., as Treasurer.
"One
of my priorities is education for grassroots soybean leaders and
voting delegates,” Metz said of his new position with ASA.
“We need viability for our state associations and good decision-making
for policy development. When I look at a soybean field, I see high
protein soy meal and biodiesel."
This
is Metz’s last term as NBB Chairman.
Following
the elections, committee assignments were announced. The Public
Affairs Committee Chairman is Bob Metz. NBB board member Ed Hegland
(MN) was appointed Chairman of the Finance Committee.
ASA
also recognized retiring directors Darryl Brinkmann (IL), David
Hand (OH), Roger Dale (MN), and Marc Curtis (MS) for their years
of service.
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Have You Joined the Biodiesel Alliance
& Backers?
Support for biodiesel continues to grow, with over 750 organizations
now members of the Biodiesel Alliance and 1,600 individuals signed
on as Biodiesel Backers. Bulletin subscribers who have not already
signed on to this growing legion of supporters are urged to take
the next step by going to www.biodiesel.org/aboutnbb/alliance and
joining the Alliance if you represent an organization or signing
up as an individual through the Backers program.
In
addition to expressing support for biodiesel, Alliance and Backers
members also receive ‘News You Can Use’ action alerts
providing more timely access to information that supporters can
use to take action and share with others.
A
recent example is Biodiesel Takes Roots in Schools, which provides
resources to share with school decision makers. Future advisories
will bring you the latest environmental and health information on
biodiesel.
A
list of current Alliance members is featured on NBB’s website.
Organizations of all types are eligible to join the Biodiesel Alliance,
including non-profits, civic groups, government agencies, fuel suppliers,
farm businesses, ag organizations, etc. It's FREE, and it's voluntary.
No statement, policy or otherwise, will be made in the name of the
Biodiesel Alliance or Biodiesel Backers.
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Upcoming Events
The
Energy Technology Expo and Conference (ETEC)
August 31 - September 1, 2004
Denver, Colo.
2005 National Biodiesel Conference & Expo
Jan. 30 – Feb. 2
Ft. Lauderdale, FL
Jenna
Higgins, Director of Communications
Bev Thessen, Information
Coordinator
This
bulletin is also available in PDF format online at
http://www.biodiesel.org/news/bulletin/
Other
News
Alternative Fuels: Issues
in Congress
Alcoa
Michigan
School Buses Save Money Using B20
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