In The Media - Industries Press ARB to Clarify Controversal Biodiesel Policy

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Posted by: Community Fuels

7/7/2006

Inside EPA, Vol. 17, No. 27, Biodiesel stakeholders are urging air board officials to clarify key provisions of a draft policy guiding how the board may regulate the fuel, noting that the document currently contains a number of vague and ambiguous statements.

Friday, July 7, 2006 Industries Press ARB to Clarify Controversal Biodiesel Policy
Inside EPA, Vol. 17, No. 27, Biodiesel stakeholders are urging air board officials to clarify key provisions of a draft policy guiding how the board may regulate the fuel, noting that the document currently contains a number of vague and ambiguous statements. The policy is considered critical to future use and investment in biodiesel blends in California, especially in light of growing efforts to reduce petroleum use and engine emissions, including greenhouse gases, sources said. Both supporters and opponents of the new draft policy indicate that Air Resources Board officials have produced a document that raises as many questions as it supposedly aims to answer. These uncertainties include: to what extent biodiesel increases nitrogen oxide (NOx) emissions; whether ARB has the authority to regulatebiodiesel blends between 21% (B-21) and 100% (B-100); whether ARB supports the increased use of biodiesel blends above minimal levels; and whether the proposed policy itself must go through a formal rulemaking before taking effect. The draft policy states, in part, that ARB believes biodiesel blends can enhance the emission performance of diesel vehicles under certain conditions. These conditions include that the biodiesel portion of the blend meets the ASTM 6751 standard and a 15-parts-per-million sulfur specification; the diesel fuel portion for the blend complies with ARB diesel fuel regulations; and the resulting mix contains no more than 20% biodiesel by volume and meets the ARB diesel specification for sulfur, according to the draft policy. In addition, “vehicles using ARB-verified retrofit devices can use biodiesel blends up to 20%, so long as the retrofit method employed on the engine was verified based on the use of commercial ARB diesel,” the draft states. But the policy also warns that users “should determine if use of these desired biodiesel blends will affect their emission control or engine warranty, and are advised to avoid use of fuel that would negate a warranty.” And if biodiesel is used extensively in the coming years, ARB may have to determine whether new specifications are necessary, based on potential NOx emission increases, according to the policy. Biodiesel industry representatives are pushing ARB to remove uncertainty about whether customers should embrace the use of biodiesel blends above 20%. This is because the draft policy currently states that while ARB does not prohibit blends between 21% and 50%, they “are not recommended at this time.” The policy does not offer many clarifying explanations for its positions, but includes cautionary statements that biodiesel blends may increase NOx emissions. An ARB staffer said at a meeting in May that NOx emissions may increase by 2% (see May 26 issue, p1). “The ARB needs to establish a procedure to remove this uncertainty as soon as practicable,” wrote Eric Bowen, acting chairman of the California Biodiesel Alliance, in a June 23 letter. “Blends between B21 and B50 are important and need your support.” Such blends are currently being used in Marin County vehicles and are expected to be used soon in vehicles operated by Santa Monica and San Francisco municipalities, according to Bowen. “These blend levels are frequently sought by biodiesel users who are motivated to use higher blends as a means of further reducing emissions and increasing the renewability of their diesel fuel.” The biodiesel industry also wants ARB officials to revise their statement that biodiesel may increase NOx emissions to reflect the fact that recent testing cited by ARB has shown varying emissions impacts — including no NOx increase — based on biodiesel feedstock and engine type. Further, Bowen urges ARB to clarify the statement in the draft policy that “widespread use of biodiesel may require ARB to set specifications to ensure ARB diesel emissions benefits.” Regulatory uncertainty is harmful to the growth of the emerging biodiesel industry, Bowen added. Meanwhile, the Western States Petroleum Association (WSPA) is calling on ARB to clarify quite a bit more in the draft policy, and to promulgate the policy through the normal regulatory process. “We are unaware of historical instances where ARB has published, via a PowerPoint presentation, a regulatory policy, especially in the area of fuels, without taking it to the board for appropriate review and adoption,” wrote Gina Grey, WSPA southwest manager and director of policy and fuels, in a June 30 letter. WSPA is also surprised that ARB officials would seek to internally adopt a policy even though staffers have stated there is a suspected NOx increase with biodiesel use. “ARB should not promulgate any policy or regulation without a complete understanding of the air quality and other environmental, as well as consumer impacts,” Grey wrote. “We understand ARB believes the potential NOx increase is similar to the ethanol permeation issue in terms of the lag between the recognition of a potential problem and addressing the problem. Our main concern is the ethanol permeation issue was formally brought before the board and staff was directed how to pursue it. The biodiesel NOx issue should, likewise, be given equal treatment by the agency.” Biodiesel should be treated like any other fuel in the state and should be put through a multimedia evaluation where any potential increase in criteria or toxic pollutants is addressed before it is allowed into the transportation fuel pool, Grey adds. “This will become even more critical as efforts to increase renewable fuels, including biodiesel, get ramped up by the governor, the Legislature, the ARB and other state agencies.” Copies of the comment letters are available at www.InsideEPA.com. See page 2 for details. ARB staff responded this week that it does not intend to bring the policy to the board for formal regulatory approval, according to a spokesman. “The draft policy reflects what is legally allowable under ARB existing regulations and the draft policy would clarify that,” the spokesman said. “If we can better clarify how ARB regulates or not regulates biodiesel, we will do so. Again, we are simply clarifying what is allowable under existing law.” ARB plans to release a revised draft next week, followed by another comment period, the spokesman added. A final draft will then be issued around July 25. Another comment period would then extend to a scheduled ARB staff fuels workshop in early August. The current regulation and enforcement of biodiesel, or lack thereof, is already confusing, sources have noted, being divided between ARB and the Division of Measurement & Standards (DMS), which is housed in the Department of Food & Agriculture. WSPA urges ARB to use the new policy to help clean up this regulatory mess. “While not directly an ARB issue, it is of concern that DMS’s regulation, in particular their specifications, only apply to biodiesel sold at retail and do not apply to wholesale biodiesel quality. Again, WSPA believes ARB should develop biodiesel specification requirements to ensure performance and quality in the state are consistent and adequate.” For the complete article please link to: http://www.InsideEPA.com
	Inside EPA

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