Also posted on http://ei2025.org/ 

Biodiesel is a cost-effective and flexible fuel that can be blended with petroleum diesel at any level and used in most diesel engines with few or no modifications.   The biodiesel industry growth benefits the economy, while also broadening the nation’s renewable energy options.  Biodiesel is available today and is the fastest growing alternative fuel in the U.S.; U.S. Production has increased from 1 million gallons per year in 2001 to over 225 million gallons in 2006.   

Biodiesel produced domestically reduces the nation’s reliance on imported oil and encourages investment into the development of a clean energy economy.  It also offers a regional approach to energy production and energy security, a contrast to the centralized, choke-point-laden petroleum production system.  Trains, ships, trucks, agriculture and construction, all depend on diesel equipment that is likely to remain in service for the next several decades. No other alternative, including compressed natural gas, electric vehicles or hydrogen, can replace diesel equipment easily or cost effectively. Clean burning biodiesel requires no new equipment, no infrastructural changes, and no engine modifications when used in common blends with petroleum. Biodiesel use, due to its higher lubricity, also contributes to a longer engine life and lower maintenance costs.

Biodiesel is non-toxic, safe, and benefits the environment by having one of the highest energy balances of renewable fuels available today.  Biodiesel also benefits our health since its emissions contain 50- to 100 percent fewer toxins and pollutants compared to petroleum diesel.  Carbon Dioxide emissions, the major component in greenhouse gases, are also reduced.  According to the U.S Department of Energy, “Neat biodiesel (100% biodiesel) reduces carbon dioxide emissions by more than 75% over petroleum diesel. Using a blend of 20% biodiesel reduces carbon dioxide emissions by 15%.[1]”  Although some data suggests that nitrous oxides (NOx) emissions increase with biodiesel use, the National Renewable Energy Laboratory announced that “B20 appears to have no significant or consistent impact on NOx emissions.[2]”  Low-cost additives can further offset any potential increase to NOx. 

Petroleum price volatility is a challenge for most fleets and consumers.  At different points in time biodiesel may be priced lower or higher than petroleum diesel, but, historically, biodiesel’s primary inputs of oils and fats offer greater price stability than the volatile petroleum market. Biodiesel offers an option to diversify fuel sources and to incorporate greater price stability in our fuel supply which is increasingly important to help buffer risk in this time of geopolitical uncertainties.

Several federal tax credits currently exist to encourage production and use of biodiesel. In the first two months of 2007, over 135 bills were introduced in state legislatures across the nation to support biodiesel use and production.  Minnesota and Washington have already passed legislation requiring statewide use of a 2 percent biodiesel blend in all diesel sold, while Illinois and Texas encourage biodiesel use through retail sales tax exemptions. 

In California, Governor Arnold Schwarzenegger announced targets to increase biofuels production within California in April 2006. In June 2006, he announced targets to reduce greenhouse gas emissions, and in September 2006, he signed Assembly Bill 32, a greenhouse gas reduction bill stronger than that included in the Kyoto protocols.  Biodiesel, due to its favorable emissions profile, can play an important role in helping California attain these targets.  

While the biodiesel industry in the U.S is young, experience elsewhere bodes well for its successful development. Models include the ethanol industry, with 20 years of quality biofuel development, the European biodiesel industry, with 10 more years and 10 times the current biodiesel production of the U.S., and Brazil, with national policies driving energy independence based on domestic biofuel production and use.

Some people want to make biodiesel themselves, imagining its production similar to that of a back yard brewery. The biodiesel industry, however, needs to adhere to high standards for safety and quality. Worker injuries or low quality fuel could dampen enthusiasm for the whole industry.  Producing ASTM D-6751 biodiesel with a focus on quality and regulatory compliance is crucial for the industry’s successful growth. 

Concerns also have been raised about sources of raw products needed for the manufacture of biodiesel. The U.S. farmer understands what crops are appropriate to be grown in specific regions and for a variety of soil, rain, or infrastructure conditions.  An entire industry based on soy and palm-based biodiesel does not likely offer long-term sustainability. Crops like canola, mustard, and safflower can diversify feedstock sources while offering high oil content, low inputs, and even bio-remediation benefits for damaged or polluted soils.

Much as the ethanol industry hopes to produce cellulosic ethanol, the biodiesel industry strives to utilize algae, which can produce significantly higher quantities of oil per acre than traditional oilseed crops.  Studies at the National Renewable Energy Laboratory over the last 20 years have shown that large-scale algae development may be feasible.  Dozens of companies are pursuing algal production and conversion into usable feedstock for biodiesel.  

This young industry still must prove its viability in a petroleum-centric market and several measures can help achieve that goal.  Farmers, producers, distributors, consumers and supporters should work together to:

1. Track and self-regulate production of the highest quality fuel meeting the ASTM D-6751 standard.

2. Extend key tax incentives to ensure the domestic industry has long-term economic incentive and to avoid the boom-and-bust challenges experienced by other emerging industries.

3. Act now to implement biodiesel use in fleets and to support continued evaluation and testing of biodiesel and biodiesel blends for all emissions, equipment compatibility and fuel quality.

4. Encourage government purchasing policies to increase distribution and use of biodiesel.

5. Promote cross-sector public education and outreach including a coordinated USDA, DOE and EPA central U.S office of Renewable Fuels. 

6. Implement a carbon tax for fuels while promoting biodiesel use as a tool to help reduce greenhouse gases.

7. Consider a national low percentage biodiesel standard, similar to the one adopted by the European Union, that meets all warranty and compatibility requirements.  For example, a B2 (2% biodiesel blend) for all diesel fuel sold in the U.S.

8. Support publicly funded research and development of alternative feedstocks and process technologies. 

9. Work carefully with the agricultural community to assess biodiesel feedstocks and oil seed crushing for economic and environmental sustainability, therefore, encouraging regionally appropriate domestic production. Industry leaders may want to consider certification and differentiation of biodiesel for sustainability as the market allows.

10. Encourage Congress to stop promoting and subsidizing energy sources that are harmful to our economy and environment.

We can all work together to tread lighter by using fewer resources and making our current uses of those resources more efficient. In the meantime, we have a diesel infrastructure that can easily transition away from complete dependence on petroleum to a diversified, cleaner, and more renewable alternative. Biodiesel is not a choice we should deny, but a clean energy option we must embrace.

ABOUT COMMUNITY FUELS:

Community Fuels, with offices in Northern and Southern California, is a biodiesel production company that will develop a regional model to produce high quality, renewable, clean energy. Community Fuels’ primary areas of focus include production and wholesale of high quality biodiesel, research and development of process technologies and alternative feedstocks as well as education, outreach and training on the benefits of biodiesel and its proper use and handling.

Currently, we are constructing a 7.5 million gallon per year biodiesel plant at Port of Stockton. Our website provides informational fact sheets on a wide variety of biodiesel topics including benefits, fleet usage and agricultural potentials.  You can learn more about Community Fuels at www.communityfuels.com.

Ryan Lamberg

Vice President and Communications Director

Mail to: ryan@communityfuels.com