Domestic Fuel

The big news today at the National Biodiesel Conference was the unveiling of the biodiesel bike built by Paul Teutul, Sr., Orange County Choppers. The bike was built in partnership with CIMA Green. Today the bike debuted on stage driven by former NBB Chairman, Ed Hegland. Then Paul Sr. himself drove it onto the biodiesel vehicle showcase floor where he talked about the project with attendees. CIMA Green actually had two bikes built and donated one to the National Biodiesel Board along with a check for $50,000 to use for transportation expenses to showcase the bike at various events around the country.

I spoke with Paul Sr. just prior to his entry into the exhibit hall and he says the bike was a tough one to build. He says it’s not a speed demon but it won’t break down, “It’s just made to go.” The bike has affectionately been named Susie, btw.

Listen to my interview with Paul Sr. here: Interview with Paul Sr.

Listen to Paul Sr. describe the biodiesel bike here: Paul Sr. Remarks

Here’s video of Paul, Sr. driving into the exhibit hall.

Remember that you can follow what the Twitterverse is saying about the conference using the hashtag #NBB12.

2012 National Biodiesel Conference Photo Album

Only a couple days now until the kick-off of the Super Bowl – and the 2012 National Biodiesel Conference.

We caught up with National Biodiesel Board CEO Joe Jobe at the Iowa Renewable Fuels Summit to get a preview of what promises to be a great conference. “Attendance is up, exhibitors are up, sponsorship is up, which is really a reflection of the fact that the industry’s back,” Jobe says. “The industry has come back and it’s really one of the most exciting come back stories since maybe Harley-Davidson.”

Jobe says there’s enthusiasm and excitement, but also a lot of work that needs to be done. “We need to talk about how we think about the industry going forward through the lens of the RFS, which is going to be the cornerstone of the industry moving forward,” he noted.

The conference will be held February 5-8 at the Gaylord Palms Convention Center in Orlando and while on-line registration is closed, there will be on-site registration for last minute attendees.

Listen to an interview with Jobe here: Joe Jobe interview

U.S. biodiesel production officially topped one billion gallons in 2011, according to final year-end numbers released by the Environmental Protection Agency today.

The total volume of nearly 1.1 billion gallons is by far a record for the industry and easily exceeded the 800 million gallon target required under the EPA’s Renewable Fuel Standard (RFS). The previous record for biodiesel production was about 690 million gallons in 2008.

National Biodiesel Board (NBB) vice president of federal affairs Anne Steckel says the milestone demonstrates that the biodiesel tax incentive and the Renewable Fuel Standard are working just as Congress intended. “Now is not the time to be second-guessing the RFS or eliminating the biodiesel tax incentive,” said Steckel. “We’re proving that the policies work, that American innovation and competitiveness can pull us away from our dangerous dependence on imported fuel. Just as President Obama said in his State of the Union this week, we need to stay the course to continue creating jobs and building America’s energy capacity.”

The biodiesel industry’s success in 2011 comes after Congress reinstated the fuel’s $1-per-gallon tax credit in December 2010 and as the EPA’s RFS program for biodiesel completed its first full year of implementation. Without those policies in place in 2010, production dropped dramatically as dozens of plants shuttered and thousands of people lost jobs.

The CEO of the National Biodiesel Board (NBB) told attendees at the 6th Annual Iowa Renewable Fuels Summit in Des Moines on Tuesday that the Renewable Fuels Standard (RFS2) is the number one priority for the industry in 2012.

“We have an immediate challenge before us,” NBB CEO Joe Jobe said of the postponed decision regarding 2013 volumes for biomass-based diesel under the RFS2. “The EPA recommended that we raise those volumes from the statutory minimum of a billion gallons to 1.28 billion gallons.” The Office of Management and Budget has to approve that recommendation and Jobe says that decision will be made within the next 45-60 days.

“We need to establish a precedent whereby we can have conservative, modest growth in the biomass-based diesel category,” Jobe said. He called on the biodiesel industry to make its collective voice heard on the issue. “We ask that you participate in our effort to send letters to the White House, to the OMB, to the administration and to members of Congress,” said Jobe, noting that more details about the effort will be coming soon.

Listen to part of Jobe’s address to the 6th annual Iowa Renewable Fuels Summit here: Joe Jobe comments

Photos from 2012 Iowa Renewable Fuels Summit

Reaction to President Obama’s call for an “all-of-the-above energy strategy” in Tuesday’s State of the Union address was met with applause by many renewable energy interests, who at the same time hope his words will be backed with actions.

“We applaud the President’s announcement that he is going to push for homemade, U.S.-energy after 40 years of being addicted to foreign oil,” said Tom Buis, CEO of Growth Energy. “We have to move ahead with American ethanol as part of that solution.”

“The U.S. biodiesel industry is proving that we can accomplish the president’s goals of creating jobs while building a clean-energy economy,” said Anne Steckel with the National Biodiesel Board. “That’s why we’re calling on the Administration to quickly finalize the delayed EPA rule for boosting biodiesel use under the Renewable Fuel Standard in 2013.”

National Corn Growers Association Chairman Bart Schott said they were pleased to hear President Obama’s continued commitment to the nation’s energy independence. “As family corn farmers have risen to the challenge to meet our nation’s energy needs, we are hopeful the direction the President outlined offers similar opportunities for others to expand our energy independence,” he said.

“Working with the President, we can help America become less dependent on foreign oil and a smarter consumer of energy,” Adam Monroe, President of Novozymes North America, said. “Innovations like advanced biofuels can play a major role in the President’s vision but we need steady policies like the Renewable Fuel Standard – and we look forward to working Congress to preserve them.”

Biodiesel blends operate trouble-free all winter in cold climates in vehicles, buildings and even homes. All you need to be successful is high-quality fuel and good fuel management, according to the National Biodiesel Board.

The largest municipal user of biodiesel, New York City, uses biodiesel blends in snow removal equipment. The New York City Parks & Recreation Department was the first city agency to pilot biodiesel in 2005 and still uses B20.

The 850-vehicle strong diesel fleet helps to maintain more than 29,000 acres in New York City. The fleet includes more than 40 different types of vehicles and equipment – handling everything from snow removal to landscape and parks maintenance to road construction and waste management.

The New York City Sanitation Department also uses biodiesel blends in vehicles used to fight winter weather, such as salt spreaders and plows.

“We can’t afford for our garbage trucks not to run,” said Supervisor of Mechanics Spiro Kattan. “Our trucks don’t only pick up garbage, they are also equipped with snowplow hitches. We’re a part of the city’s snow emergency plans and the residents of New York City would not be too happy if our vehicles went down during a snow storm.”

Further, JFK International Airport uses B20 to keep runways clear even in the worst of snowstorms.

In addition, New York City enacted a groundbreaking law requiring that all heating oil sold in the city contain at least two percent biodiesel beginning in October 2012. Bioheat® is already keeping many homes and offices warm this winter, including New York City Parks’ buildings.

The EPA has published a final rule approving camelina oil as a feedstock under the Renewable Fuel Standard (RFS2).

Today, the National Biodiesel Board (NBB) released the following statement in support of the ruling.

“Biodiesel’s evolving feedstock diversity is one of its greatest strengths, and we’re pleased to see the EPA recognizing camelina as yet another feedstock that meets the agency’s standards as an Advanced Biofuel,” said Anne Steckel, vice president of federal affairs at NBB. “As it has with other biodiesel feedstocks such as animal fats, recycled cooking oil, soybean oil and canola oil, the EPA’s proposal shows that biodiesel produced from camelina oil reduces greenhouse gas emissions by at least 50 percent compared with diesel fuel. This is good news for our industry and will give biodiesel plants another tool in the toolbox as they continue producing record quantities of America’s Advanced Biofuel.”

Nearly 108 million gallons of biomass-based diesel were sold during the month of November, continuing a record year of production, according to figures released by the EPA. Biodiesel makes up the vast majority of the EPA’s biomass-based diesel category under the Renewable Fuel Standard program, representing about 95 percent of the volume this year.
In a news release from the National Biodiesel Board, biodiesel production specifically had reached an all-time high 908 million gallons through the end of November. The previous annual record for biodiesel production was 690 million gallons in 2008.

Biodiesel is produced in nearly every state in the country and is on pace to support more than 39,000 U.S. jobs in 2011 while replacing roughly 1 billion gallons of petroleum diesel. Made from an increasingly diverse mix of resources such as agricultural oils, recycled cooking oil and animal fats, it is the first and only commercial-scale fuel produced across the U.S. to meet the EPA’s definition as an advanced biofuel. Biodiesel can be used in existing diesel engines and meets strict specifications of ASTM D6751.

The National Biodiesel Board is pleased with the increase in biomass-based diesel requirements for 2012 under the Renewable Fuel Standard (RFS2) finalized today by the Environmental Protection Agency (EPA).

The 2012 rule raises the Biomass-based Diesel program to 1 billion gallons, up from 800 million gallons this year. According to the latest EPA figures, the biodiesel industry had produced some 908 million gallons through the end of November, exceeding the 2011 requirement with one month of production remaining.

Steckel also urged the administration to issue a final rule for 2013 volumes raising the Biomass-based Diesel requirement to 1.28 billion gallons, as the EPA proposed earlier this year. The EPA on Tuesday postponed finalizing the 2013 volume, saying it needs more time for review.

Biodiesel makes up the vast majority of the Biomass-based Diesel program under the RFS. Because it also qualifies as an advanced biofuel under the program – with greenhouse gas emission reductions of 57 percent to 86 percent – biodiesel is also eligible to help meet general advanced biofuels requirements under the program.

Representatives of the U.S. biodiesel industry are urging Congress to pass a seamless extension of the biodiesel tax incentive. The $1-per-gallon biodiesel tax credit is slated to expire on Dec. 31. Bipartisan legislation has been introduced in the U.S. House and Senate to extend it for three years. Proponents of the bill testified this week in a hearing on alternative energy tax incentives, held by the Senate Finance Committee’s Subcommittee on energy, natural resources and infrastructure.

“This tax incentive is a job creator and Congress will be putting jobs in jeopardy if it adjourns without passing an extension,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board (NBB).

The tax incentive was allowed to expire in 2010 but was reinstated this year. Since the reinstatement, the biodiesel industry has set a new production record of more than 802 million gallons through October. That is more than double last year’s volume of about 315 million gallons. Increased production supports more than 31,000 jobs this year while generating at least $3 billion in gross domestic product and $628 million in federal, state and local tax revenues, according to a recent economic study conducted by CardnoENTRIX, an international economics consulting firm.

“Stable, long-term federal incentives are necessary for this industry to continue to grow,” Paul Soanes, president and CEO of Texas-based Renewable Biofuels, Inc (RBF) said at the hearing.

Soanes said RBF has increased production at its plant in Port Neches, Texas from 9 million gallons in 2010 to more than 62 million gallons this year, hiring new employees and investing in capital improvements. Similar stories are taking place within the biodiesel industry across the United States.

About 20 U.S. soybean farmers are in New York City this week to see the how the Bioheat Industry is gaining momentum. The National Biodiesel Board (NBB) is hosting the group. Bioheat is biodiesel mixed with home heating oil. Starting in October, 2012, all heating oil sold within New York City will contain at least two percent biodiesel.

The group will tour CME Group, the world’s leading and most diverse derivatives marketplace where energy is bought and sold. There they will have an educational session on the Bioheat market and hear from the president of the New York Oil Heating Association and a New York City Councilman.

In addition, the group will see the biodiesel facilities of the New York City Department of Parks & Recreation and the Port Authority of New York and New Jersey. Both use biodiesel blends in their diesel vehicles as does the Department of Sanitation.

Those three agencies use about 11 million gallons of biodiesel blends a year, ranging from 5 to 50 percent biodiesel (B5 – B50), according to Steven Levy of Sprague Energy, a biodiesel supplier in that area. The farmers are also visiting the facilities of Metro Energy, one of the largest petroleum distributors in New York City and the northeast. In 2009 the company sold 10 million gallons of biodiesel to be used as Bioheat in New York City alone. They are building a 110 million gallon biodiesel production facility in Brooklyn.

The biodiesel and Bioheat Industries have been supported by farmer-led groups including NBB, the United Soybean Board and the soybean checkoff.

According to the latest government figures, U.S. biodiesel production has already set a new record this year.

National Biodiesel Board (NBB) is proud to report that the industry has produced more than 802 million gallons of biodiesel in plants from Florida to Iowa to Washington state, more than doubling last year’s production of about 315 million gallons and breaking the previous record of about 690 million gallons set in 2009.

The main reason for the increased production is reinstatement of the federal tax incentive for biodiesel, which is once again due to expire at the end of this year without congressional action. Without the incentive last year, production dropped dramatically as dozens of plants shuttered and thousands of jobs were lost. This year’s increased production will support more than 31,000 jobs – up from fewer than 13,000 last year – while generating at least $3 billion in GDP and $628 million in federal, state and local tax revenues, according to a recent economic study conducted by Cardno-Entrix.

“This tax incentive is without a doubt stimulating production of biodiesel and creating jobs. We’re clearly seeing that from our members across the country,” said NBB VP of federal affairs Anne Steckel. “We have a little over a month before it could expire again, and it is past time that Congress step up and pass an extension to keep this industry’s momentum going.”

National Biodiesel Board members this week elected seven returning governing board members and one new member to serve on the leadership committee as part of the organization’s membership meeting in Washington D.C.

Officers elected to lead the board are:
Gary Haer, chairman, Renewable Energy Group, Inc. (Producer)
Ed Ulch, vice chair, Iowa Soybean Board (Farmer)
Ron Marr, secretary, Minnesota Soybean Processors, (Producer)
Jim Conway, treasurer, Griffin Industries (Producer)

Biodiesel board members also voted to fill eight board member spots, which include the officer team and:
Ed Hegland, Minnesota Soybean Research and Promotion Council (Farmer)
Kris Kappenman, Archer Daniels Midland (Producer)
Bob Metz, South Dakota Soybean Research & Promotion council (Farmer)
Robert Stobaugh, Arkansas Soybean Promotion Board (Farmer)

The U.S. Supreme Court will not hear a case brought by petroleum interests against the Environmental Protection Agency over the expanded Renewable Fuels Standard (RFS2).

The petition made by the National Petrochemical Refiners Association (NPRA) and the American Petroleum Institute (API) was rejected by the District Court of Appeals in December 2010. The petition filed in March 2010 claims that the RFS2 “violated the statutory requirements setting separate biomass-based diesel volume requirements for 2009 and 2010, that it was inappropriately retroactive without proper lead time and compliance provisions.”

National Biodiesel Board vice president of federal affairs Anne Steckel says they are happy with the court decision.

“The RFS program is working just as Congress intended. It’s creating jobs across the country. It’s breaking our addiction to oil. It’s helping clean our air, and it’s reducing greenhouse gases,” said Steckel. “This year alone, the biodiesel industry is on pace to produce at least 800 million gallons of advanced biofuel while supporting more than 31,000 jobs. We’re pleased to see the Supreme Court put an end to this litigation as we continue building a strong U.S. biodiesel industry.”

Ethanol industry group Growth Energy was also pleased with the decision which mainly impacts biodiesel producers as they had intervened in the court case to defend the mandated volumes and make sure that the volumetric levels were retroactive as of Jan 2010. “The intent of Congress was clear when it passed the Energy Independence and Security Act – domestically-produced biofuels do strengthen our national defense and help support our economy. We welcome the Supreme Court’s decision as the right decision,” said Tom Buis, CEO of Growth Energy.

The Environmental Protection Agency (EPA) reports that a record 119 million gallons of “Biomass-based Diesel” were produced in September, up eight percent over the previous high of 110 million gallons in August and marking the sixth consecutive monthly record. Of that total, about 95 percent was biodiesel production, which now totals 686 million gallons for the year so far as of September.

The monthly Moderated Transaction System (EMTS) data from EPA is used to track requirements under the expanded Renewable Fuel Standard (RFS2) program for use of renewable fuels and Renewable Identification Number (RIN) transactions.

The National Biodiesel Board is pleased to see the continued growth in biodiesel this year. “Biodiesel is America’s first Advanced Biofuel,” says NBB. “It is produced in nearly every state in the country and will support more than 31,000 U.S. jobs in 2011 while replacing nearly one billion gallons of petroleum diesel.”