The rocky road leading to the biodiesel tax credit extension continues to take new turns. For months, the extension was included in H.R. 4213, or the Unemployment Extension Act of 2010, but the version signed by the president in July failed to include the extension. Now, the hope for the tax credit again rests with Congress, and proposed legislation offers the newest path for the struggling biodiesel industry. 
 
 U.S. House ways and means committee chairman Sander Levin, D-Mich., introduced a draft of legislation July 26 titled, the Domestic Manufacturing and Energy Jobs Act of 2010. Aimed at making investments in domestic manufacturing of clean energy technologies while providing long-term support for renewable energy, the legislation includes a provision to extend the biodiesel tax credit "if that extension has not been enacted by the time this legislation is considered." The proposal would also reinstate for 2011 the per-gallon tax credits for both biodiesel and renewable diesel. 
 
 "As the world moves toward renewable energy and a greener economy, it is necessary to accelerate a new era of American manufacturing and innovation," Levin said about his legislation. The bill, if enacted, would cost $1.108 billion over 10 years, according to the draft. "We must not let this opportunity pass us by. I will continue to work with my colleagues in the House and Senate, as well as the administration, to enact legislation," Levin added. 
 
 Levin's proposal is only one route for the extension, however. Sen. Chuck Grassley, R-Iowa, has tried multiple times to pass biodiesel legislation. His latest attempt, an amendment to the Small Business Bill in June, is currently under debate in the Senate. "This noncontroversial, nonpartisan provision for clean, green energy is being held hostage," Grassley said. "I'm trying, once again, to put Americans back to work in this clean, renewable fuel industry." Along with Grassley, Sen. Blanche Lincoln, D-Ark., has also submitted a biodiesel tax extension amendment to the Small Business Bill. The legislation remains stalled in the Senate, however, as Sen. Mitch McConnell, R-Kty., and Sen. Harry Reid, D-Nev., struggle to agree on the number of amendments the Senate will vote on with the bill. But, both sides did agree to include the biodiesel amendment proposed by Lincoln in the bill. 
 
 Although the biodiesel tax extension has received support from both the house and senate, the political positioning and jockeying by certain key members pushing for large bills continues to stand in the way. Reid, who stated the country's need to reduce dependence on foreign oil when he introduced his energy legislation, failed to include any provisions for a biodiesel tax extension. 
 
 The National Biodiesel Board tried to convince Reid on the importance of the biodiesel extension holding a place in the energy bill. Before Reid introduced the first version of an energy bill, NBB vice president of federal affairs, Manning Feraci, wrote a letter to Reid outlining the need for the extension. "The most reliable, immediate way to achieve this worthwhile objective is to include a retroactive, multiple year extension of the biodiesel tax incentive in the upcoming energy bill," Feraci wrote. The lapse of the tax incentive and uncertainty by the federal government to commit to advanced biofuels like biodiesel undermines the nation's ability to displace petroleum diesel fuel, he added. "Accordingly, the NBB respectfully asks that this common sense proposal ultimately be included in forthcoming energy legislation."
 
 Immediately following the reinstatement of the biodiesel tax incentive, the industry will experience a significant resurgence, according to Michael Frohlich, federal director of communications for the NBB. "Demand will increase, idle plants will begin to operate again, and there will be a dramatic expansion in the overall production of biodiesel," Frohlich added. "Like any business, the biodiesel industry needs certainty."

The path to a biodiesel tax credit extension

The wait for canola oil as a U.S. EPA-approved biofuel pathway is over. Five months after releasing the final rule for the revised renewable fuel standard (RFS2), the EPA released a Notice of Data Availability, stating that the canola oil biodiesel pathway creates a 50 percent reduction in greenhouse gas emissions compared to the diesel fuel baseline. Using the same RFS2 lifecycle analysis modeling for other biofuels already approved, the EPA also compared canola oil conversion efficiencies to biodiesel produced from soybean oil. Not surprisingly, the final analysis shows one pound of canola produces 0.40 pounds of oil compared to soybean's 0.18 pounds of oil. 
 
 EPA also created a Delayed RINs provision. "This proposed provision…would apply only to those producers who use canola oil, grain sorghum, pulpwood or palm oil to produce renewable fuel, only for renewable fuel produced in 2010," EPA said. Noting a current annual capacity of canola-based biodiesel production of 226 million gallons, spread between Archer Daniels Midland Co., Imperium Renewables Inc., Western Dubuque Biodiesel LLC, Inland Empire Oilseeds and Sun Power Biodiesel, EPA indicated the amount of canola-based biodiesel produced in 2009 was roughly 35 million gallons, down from 96 million gallons in 2008.

 
 Even with the possibility of generating delayed RINs in 2010, Dale Thorenson, assistant director for the U.S. Canola Association, said he believes no producers will opt to create delayed RINs for canola biodiesel. "Producers large and small have had to stop production due to lack of demand since biodiesel buyers are unwilling to take the risk that canola might not qualify," Thorenson said. "There may be increased use of canola," he also added, "because some biodiesel plants that are regionally located far from soybean supplies (West Coast) will increase production from canola oil to meet the RFS2 mandates." 
 
 Regardless of 2010 canola-based biodiesel production amounts, EPA estimates that by 2022, there will be 200 million gallons of biodiesel coming from canola per year. To create this projection, the EPA used a number of factors including historical volumes, potential feedstock availability and competitive uses, potential increases in both crop acreage and yields. By 2022, EPA projects 0.9 million acres of canola will be harvested, but with increased canola-based biodiesel production, harvest totals will equal 1.2 million acres. In 2008, canola crop yield equaled 1,461 pounds of seed per acre, and in 2022, the projections used for the 200 million gallon estimate show a crop yield equal to 1,681 pounds per acre. 
 Higher yield improvements, which could show a greater reduction of land use impacts and improve projected GHG performance, were given to EPA by industry members but not used. Thorenson said he believes EPA used fairly conservative yield trends and oil content data in the lifecycle analysis. 
 
 Barring any changes coming from a 30-day comment period, canola is the first of several fuel pathways not included in the original RFS2 decision. Other pathways, particularly palm oil and pulpwood, which the EPA said were not being analyzed before the RFS2 came out, should be completed before the end of 2010. Currently, the only way a feedstock such as palm oil or jatropha can qualify for RFS2, is through the grandfathering provision. While the EPA would not speculate on the analysis of new pathways, palm oil modeling is expected to come out mid-November.

While the canola pathway has been approved by EPA, other feedstocks, palm and jatropha oils, have not yet been approved.

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EPA approves canola biodiesel pathway

Clean fuel retailer Propel Fuels added four new senior executive employees in July, selected for their expertise, experience and innovation in the areas of finance, construction, retail operations and technology, and will be an integral component of the company's vast expansion plans. The new team members include Chief Financial Officer Andy Wynne, who previously served as CFO and executive vice president of Tulley's Coffee Corp.; Vice President of Operations Jim Iacoponi, who was previously employed as vice president of strategy and planning for Arco and BP ampm convenience stores; Vice President of Construction and Development Jim Cannon, who previously served as vice president of design, construction, and facilities at Jack-In-The-Box; and Director of Technology Development Michael Sarwari, who has 15 years of experience in information technology operations. 
 
 After several months of failed funding requests, Claypool, Ind.-based LD Biodiesel and Soybean Processing Plant has filed suit against the USDA. Louis Dreyfus Agricultural Industries LLC, owner of the 80 MMgy Claypool plant, filed in the District Court of Columbia, and claims that the USDA is unconstitutionally denying the Claypool facility funding due to the plant's percentage of foreign ownership. LDAI, located in Maryland, but owned by Geneva-based parent company Louis Dreyfus, states in their case that the USDA did not follow normal protocol before implementing a rule that requires biofuel companies to be a minimum of 51 percent American owned to be eligible for funding. The rule appears in a May 6, 2010, Notice of Contract Proposal for payments to eligible advanced biofuel producers form. 
 
 An advanced biodiesel project developed by researchers at Idaho National Laboratory has been selected by R&D Magazine to receive a 2010 R&D 100 award. The annual competition, which recognizes outstanding technology developments with promising commercial potential, has been held by R&D Magazine since 1962. INL was recognized for its Supercritical Solid Catalyst process, which converts waste feedstocks with up to 100 percent free fatty acid content into ASTM-quality biodiesel. It's a continuous process during which the oil or fat feedstock is mixed with alcohol and nontoxic supercritical fluid solvents. In a single fluid phase, the resulting mixture is then passed over a solid catalyst to transform the free fatty acids into methyl esters. 

 
 An employee of Innovation Fuels Inc.'s Newark, N.J., biodiesel plant was injured in July from an explosion of toxic chemicals when 100 to 200 gallons of sulfuric acid leaked from a 400-gallon drum inside the plant's containment area. The employee survived with third-degree burns to 18 percent of his body. He was connecting hoses to a tanker truck filled with methanol when the sulfuric acid container behind him leaked and subsequently burst. Local firefighters evacuated a six-block radius upon responding to the incident, which occurred July 15. The extent of the damage to the plant was being assessed a few days after the accident. 
 
 Rothsay Biodiesel, the Guleph, Ontario-based producer and division of Maple Leaf Foods Inc., in 2009 fueled its truck fleets with biodiesel made from animal fats and waste oils from restaurants. One hundred and thirty seven trucks are fueled with Rothsay-produced biodiesel, and in 2009 the fleets traveled a combined 3.3 million miles, using more than 600,000 gallons blended at an average of 9.2 percent biodiesel. During that time there were no mechanical problems or mileage decreases. In 2001, Rothsay began to run B5 and higher blends at its Montreal biodiesel production facility. Today, roughly five B100 trucks operate out of the Montreal plant. In 2009, Rothsay expanded its overall biodiesel usage by incorporating biodiesel blends from B5 to B20 at its Dundas and Moorefield, Ontario, rendering plants. Rothsay is expanding its biodiesel use at other Maple Leaf Foods plants in Ontario. 
 
 The used cooking oil supply for Ames, Iowa-based Renewable Energy Group Inc. just got bigger. REG has agreed to purchase yellow grease from Restaurant Technologies Inc. With more than 16,000 used cooking oil collection systems spread throughout the U.S., along with 36 collection depots, REG now has access to RTI's national distribution chain of used cooking oil. With new access to the cooking oil collection depots, REG vice president of supply chain management Dave Elsenbast said the company now has the potential "to replace more than a half million barrels of imported crude oil" with biodiesel. Along with the RTI cooking oil contract, REG has also acquired Tellurian Biodiesel Inc., a California biodiesel company and marketer, and American BDF LLC, a joint-venture owned by Golden State Service Industries, a wholly-owned subsidiary of Golden State Foods. 
 
 On July 1, Earl Fisher Biofuels, a 275,000 gallon plant in Chester, Mont., delivered its first shipment of biodiesel to Burlington Northern Santa Fe at the Havre Depot. The study calls for Montana State University-Northern Bio-Energy Center to conduct laboratory testing of the biodiesel performance in one switch train running on regular diesel, which will act as a control, and the other will run on a B20 blend, mostly made from canola and camelina oil in order to test performance in extreme cold weather conditions come winter. Over the next year, Earl Fisher Biofuels will supply BNSF with 24,000 gallons of biodiesel-roughly 2,000 gallons per month-for the duration of the study, according to Earl. 
 
 UK-based biodiesel chemical supplier Trinity Research launched an "Ask a Chemist" service aimed at providing visitors to its new Web site the opportunity to pose a question to an experienced laboratory chemist. For a nominal fee of $13, the chemists will answer any question related to the petrochemical, pharmaceutical and biodiesel industries. Trinity Research supplies a wide variety of biodiesel-related products and services within the UK market, including methanol, potassium and sodium hydroxide, while providing a free glycerol disposal service. The company also supplies a range of biodiesel equipment, winter additives and BioPura filtration media. 
 
 As construction of Dynamic Fuels Inc.'s 75 MMgy biorefinery in Geismar, La., nears completion, the joint venture's technology provider, Syntroleum Corp., has reported a second quarter loss. The good news for Syntroleum, however, is that in comparison to losses recorded in 2009, the 2010 second quarter loss is much less. Syntroleum, which constructed the plant, reported 2009 net income losses of roughly $3.8 million, but this year, only $1.02 million, according to filings with the Securities and Exchange Commission. The reason for the second-quarter loss this year, according to SEC statements, is from increased staffing needed to complete construction. 
 
 On July 29, the New York City Council unanimously voted to pass air quality legislation that will ensure all heating oil used within the city contains biodiesel. The legislation, which was expected to be signed into law within two weeks, will require the use of a B2 blend of heating oil starting in October 2012. A B2 mandate will require the blending of 20 million gallons of B100 into the 1 billion gallon heating oil market in NYC. &#61500;

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Business Briefs

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Discover what activities are taking place in the biodiesel sector around the world.

Global Biodiesel Production and Market Report

Imagine sitting behind the wheel of a 10,000-horsepower Jetcar racing toward 400 miles per hour in just seconds. It's what Bill Braack and his partner Scott Hammack have been doing for years. "It's definitely an extreme way to make a living," Braack, owner and driver of the Smoke-N-Thunder Jetcar, told Biodiesel Magazine. This amazing car doesn't race other cars though-it makes a name for itself competing against planes in air shows around the country as the original ground entertainment at these popular patriotic events. 

 
 Marketed under the name, "Smoke-N-Thunder Jet Shows," Hammack created this exhilarating lifestyle in 1979. Hammack was racing powerful dragsters in the National Hot Rod Association circuit before the Vietnam War, but was drafted by the Army and left the sport of racing behind while he served his country. Braack says Hammack was in the Hawk missile unit, which meant hovering around and protecting Air Force bases, and he spent a lot of time watching powerful F4 jets in action. "When he came back to the states after the war, the normal vehicles Scott was racing before the war were no longer competitive," Braack says. In 1979, Hammack designed and built the Jetcar. 
 
 Hammack drove the car from 1980 to 2005, when he sold it to Braack. "He's still on the team and maintains the car," Braack says of Hammack, who is in his early 70s. Hammack's wife just recently passed away so he was unavailable to participate in this article, quite understandably. Braack says, however, that Hammack remains chief engineer of the vehicle-and all of its uniqueness. 
 
 The basic design of the car and chassis remains the same as it was back in 1980, but it's not on the same engine and components are updated regularly. The Jetcar features a Westinghouse J34-48 engine, originally used in the North American Buckeye T-2A aircraft. It pushes 10,000 horsepower and 6,000 pounds of thrust with the afterburner. The chassis is forged of 4130 chrome-moly with a 240-inch wheelbase. The front and rear wheels are 15-inch diameter; the rear wheels are 10 inches wide while those in the front are 5 inches wide. The sleek aerodynamic body is made of aluminum and magnesium. The Jetcar weighs 2,300 pounds and is 26 feet long. Two 20-gallon fuel cells are outfitted on the car, and each performance utilizes about 40 gallons of fuel. 
 
 The Jetcar's role at air shows is pretty astounding. "We're the only component at these shows where there's a winner and loser," Braack says. About an hour before his performance, the announcer plugs the ground show, "Don't miss the Jetcar race!" Braack says sometimes he races jet airplanes but most times he races thermal piston aircraft. Once the Jetcar makes its appearance, blowing 20-foot flames out the afterburner, the jet engine roaring, the crowd goes wild, Braack says. Suddenly, a plane appears, diving at and taunting the Jetcar. The challenge has been made. The airplane gets into position and heads toward the rear of the Jetcar from behind, approaching 200 miles per hour. Once the plane passes the Jetcar, the race is on. "I'm accelerating to 400 mph, so I catch up to the plane in just a couple of seconds," Braack says. "The crowd is going wild and then I'm way out front." Afterwards, attendees are invited back to the Kenworth Nascar hauler, the tractor trailer that transports the Jetcar around the country. 
 
 Braack is no stranger to military service either&#8213;he was a flight engineer in the Air Force Reserve. In 2002, the Smoke-N-Thunder Jetcar team signed its first contract with the AFR and began a seven-year partnership using the extreme car as a recruiting tool. "They used the car as a tool, a backdrop, it is a very effective screener," Braack says. "It helped pull in those who are attracted to engines, the mechanically-minded people." With the change in administration, he says, significant cuts were made to the recruiting budget and the AFR contract was not renewed. Even so, Braack still donates space on his car to the USO. "The bulk of my team is military," he says. 
 
 Since the cancellation of the AFR contract, Braack has gravitated toward the biodiesel industry as a new potential partner in this new era for the Jetcar. He says he attended the National Biodiesel Conference & Expo back in 2007 in San Antonio, Texas, and became very interested in the fuel. Under contract with the AFR at the time, he says "there were limitations at first" regarding his ability to get involved with biodiesel. "The military didn't want to appear as if they were endorsing biodiesel," he says. Since then, however, virtually all military branches have come to test and support biodiesel and bio jet fuels in various capacities. 
 
 "Bill approached us, the community of biodiesel producers in the Northwest, with the opportunity to be a fuel sponsor for the Jetcar," says Zachary Shelton with General Biodiesel, a plant in Seattle. "We want to be Bill's B20 fuel supplier." Air shows last two to three days, so with multiple performances a day, the car uses about 450 gallons of B20 each show. 

 Shelton, like everyone who experiences the power of the Jetcar, says the car is phenomenal and its sheer force is "hard to comprehend." While a tentative yet comprehensive fuel sponsorship with General Biodiesel has already gone into play, negotiations are still underway. While Braack says he most certainly values regional sponsorships such as that of General Biodiesel, his ultimate goal is to land agreements with national biodiesel players. After all, a show in Florida featuring a fuel supplier located in the great Northwest might not make a lot of sense, Braack says.
 
 Chris LaPlante with Propel Fuels, a biodiesel retailer in the Northwest whose supplier is General Biodiesel, says it's amazing that the Jetcar can achieve 400 mph and still keep the wheels on the ground. Braack says the car's engineering allows this. The engine is set on a two degree downward angle, which, as the car accelerates, creates down force. The nose is louvered and helps bleed out air over the top as to not get light on the front end. The narrow body of the car, and Bill's weight in the driver's seat, also help. The right-or wrong-winds and moisture levels do, however, require Braack to lower racing speed on occasion. 
 
 Even though the AFR contract is expired, most shows are still performed at Air Force bases. The local wing commander has the authority to bring biodiesel on base, so biodiesel marketers should reach out to that one individual to strike a fuel supply arrangement. When performing at bases that carry biodiesel, Braack also fills his Kenworth hauler on B20 for driving to the next show. 
 
 "The biggest value I see for the industry is that people still see biodiesel as a fuel for tractors," Braack says. "People question it, so when they see a car like mine running on B20, we're educating them that biodiesel is not just for farmers anymore." 
 
 Some of the larger air shows can attract nearly a million people over a three-day weekend, which equates to a lot of exposure. "The car-the idea of the car-is an exciting vehicle for the industry, no pun intended," Shelton tells Biodiesel Magazine. "There's still skepticism whether biodiesel can work, but it doesn't just work, it's a high-performance fuel." LaPlante says, "High cetane, lubricity-those are just words. But when you have a jet engine running on B20 roaring in your ears, it takes it to another level." 
 
 Ron Kotrba is editor of Biodiesel Magazine. Reach him at (701) 738-4942 or rkotrba@bbiinternational.com.

Featuring the General Biodiesel logo, the Jetcar can operate the afterburner independently of the engine, which driver and owner Bill Braack does to get the crowd engaged. PHOTO: Bernardo Malfitano, AirShowFan.com

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At a recent air show in the Pacific Northwest, the Jetcar, bearing a General Biodiesel logo and burning B20 from the Seattle-based biodiesel producer, raced and beat the Geico-sponsored prop-plane. PHOTO: ALLEN BALL

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A 10,000-horsepower Jetcar running on B20 going 400 miles per hour beating airplanes in races all over the country is a fantastic tool to promote the high-performance nature of biodiesel.

Biodiesel-Powered Jetcar

For generations, global fuel and energy supply has been playing a critical role for almost everyone. Wars have been fought over energy and some of the world's largest corporations have prospered by producing, generating and supplying energy and fuel. Only recently have people and governments everywhere started to take a different perspective on supply and use of energy. Topics like global warming, greenhouse gas and carbon emissions, as well as concerns about global energy reserves and their safe retrieval, are becoming more important. The recent oil spill in the Gulf of Mexico reminds us all that our dependence on oil and energy can lead to massive catastrophes.
 
 Regardless of the fuel we use in our cars, one fact remains: diesel fuel powers our economies. Essentially all the food we consume is produced on farms using diesel-powered farm equipment. All goods we purchase such as clothing, furniture or toys come to us by diesel-powered vessels, trains or trucks. The roads we drive on, the buildings we live and work in are built using diesel construction equipment. Fuel oil similar to diesel fuel is used to provide heat for homes, buildings and industry around the world. 
 
 This is where the value of biodiesel comes in. It is the only available biodegradable drop-in replacement for petroleum diesel in the foreseeable future. With this you may ask yourself, why wouldn't we all use biodiesel? There are several reasons why biodiesel hasn't yet been widely adopted. First, there isn't enough to replace all our diesel needs. This has lead to the "is it really worth it, it's only a drop in the bucket" mindset. Biodiesel is forced to compete with petroleum diesel as a commodity. Feedstock cost is responsible for about 80 percent of biodiesel cost, while crude oil production cost is less than 30 percent of petroleum diesel cost. Last but not least, an established, well-capitalized and investor-driven petroleum industry is defending its interests and the status quo. 
 

 What does all this mean for global biodiesel production? The answer is quite simple. At this point in time, biodiesel requires support and political commitment. European governments imposed blending mandates and tax advantages related to biodiesel blending. The U.S. instituted a $1 per gallon blenders credit as a production incentive, which has been allowed to expire. A blending mandate (RFS2) became effective only recently. Its impact on the dire U.S. biodiesel industry remains to be seen since there is an "easy out" for obligated oil-companies. Canada is more effectively supporting its biodiesel industry by an over-time declining production incentive combined with an increasing blending mandate. In South America, biodiesel has a promising future. For many years now Brazil has worked on reducing its dependence on fossil oil. People and government are behind this goal. Many countries in Africa have made strong commitments to various biofuels including biodiesel, to secure energy supply for their economies. China's growing economy drives an incredible growth in energy demand. Although the Chinese government hasn't yet made final decisions on how to support biodiesel in particular, it will play a critical role next to many other renewable energy sources. Other Asian governments have already implemented blending mandates and are rapidly expanding their renewable energy infrastructure. India is considering a 20 percent biodiesel mandate to curb greenhouse gas emissions.
 
 From a biodiesel technology and production perspective, one fact has become clear: only the flexible, multifeedstock-capable, highly efficient biodiesel plants producing top quality fuel, while not competing for food, have a chance to be competitive and stay in business. Biodiesel quality standards such as ASTM D6751 or EN14214 are becoming more and more stringent. Quality deficiencies and off-spec biodiesel are detrimental to the entire industry as they negatively impact the public acceptance of the fuel. In Europe and the U.S., many producers were forced to go out of business because their plants were not able to accommodate different and lower cost feedstock such as used cooking oil or animal fats while still meeting quality and yield requirements. Commodities like fuel offer very narrow margins. Only plants with a biodiesel yield close to 100 percent have a chance to be successful.
 
 We are facing finite fossil energy resources-ultimately we have to sustainably produce and grow the energy and the food we need. Biodiesel is one piece to the puzzle. Biogas, biomass, wind, solar, water and others are also needed.
 
 
 Klaus Ruhmer has business development responsibility for BDI-BioEnergy International AG and Enbasys (BioGas) in Canada and the U.S. Reach him at <a href="mailto:Klaus.Ruhmer@bdi-bioenergy.com">Klaus.Ruhmer@bdi-bioenergy.com</a>.

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Global Biodiesel Production: A Different Perspective

New Mexico joined a group of states mandating biodiesel use as of July 1. All government vehicles are required to run on B5 or higher, and except for an insufficient supply or excessive prices compared to diesel fuel, the biodiesel mandate will remain in effect, extending to consumers in 2012. Rio Valley Biofuels, a biodiesel plant in Anthony, N.M., already supplies the South Central Solid Waste Authority with a 7,500-gallon tanker of B20 every month.

Rio Valley Biofuels has been supplying the South Central Solid Waste Authority monthly with B20, to fuel heavy-duty equipment. PHOTO: SOUTH CENTRAL SOLID WASTE AUTHORITY

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NM biodiesel mandate takes effect

A resolution was signed in Argentina to increase the country's biodiesel blend mandate from B5 to B7, which will go into effect this month, according to Carlos St. James, president of the Argentine Renewable Energies Chamber (CADER). With a B7 mandate now in place, St. James said Argentina is considering an increase to B10 by the end of the year, "but a lot of negotiating needs to happen with the automotive industry first," he said.

Argentina increases blend mandate

Posted Sept. 8, 2010
 
 A team of researchers from Rutgers University and Harvard University is working with a well-known microorganism to aid in the production of biodiesel. The research, based on the E. coli microorganism, commonly associated with food poisoning, is being led by Desmond Lun, associate professor of computer science at Rutgers. Lun and his team are working to modify the genetic make-up of the E. coli organism, creating a strain of the bacteria that overproduces fatty acids which can then be used in biodiesel production. "Biodiesel is something that we can generate quite easily," Lun said. "E. coli has been used as a lab organism for more than 60 years and it's well studied. We know a lot about its genetics and how to manipulate it." 

 
 Lun, who received his doctorate in computer science from MIT, will work with his team to analyze a computer model of the E. coli genome, looking for ways to synthetically alter the strain and traits of the organism. The modeling will help the team track the changes to the organism if certain alterations are made, most notably enzyme removal that would increase the bacteria's ability to produce higher volumes of fatty acids. While E. coli is highly studied and understood, Lun noted that the work on the organism for biodiesel use will be "quite drastic" and require "major intervention." 
 
 Instead of performing minor changes to specific genes he said, the work will modify large sections of the genome and put in "entirely new traits rather than modifying existing traits." By using the computer modeling approach, the team will speed up the development process and make it a faster, better process according to Lun. There is currently no timetable for work on the new strain.

Researchers look to E. coli for biodiesel

As we wrap up this issue of Biodiesel Magazine in early August, BBI International's biomass conference in Boston, the Northeast Biomass Conference & Expo, finished up and was a success. It was a smaller, more regional show compared to other conferences that BBI holds, such as the International Fuel Ethanol Workshop & Expo, or the International Biomass Conference & Expo. Sometimes the smaller events can offer more chances to engage in conversation and discussion with people, and I know I had that experience in Boston. 
 

 I want to personally thank Ed Burke, Mr. Biodiesel as he is referred to in the Boston area. Ed is the owner and chair of Dennis K. Burke Inc., an oil distribution company located in Chelsea, Mass. Ed and I have been in touch for the past several years, he's a solid source of mine for perspective on biodiesel activities in the Northeast. When Ed learned I was coming to Boston, he asked if I would like to go to a Red Sox game at the famous Fenway Park. Even if you're not a baseball fan and you're in Boston, you have to experience Fenway Park, everyone told me. Ed got us great seats so close to the field right behind home plate that I could almost reach out and touch the players. Ed also took me on a tour of his facility, introduced me to his employees and we also made a stop at his retail station where he sells biodiesel and ethanol blended fuels to the general public. Thanks Ed (again) for your great hospitality. 
 
 I also got a chance to finally meet Michael Devine, CEO of EarthEnergy Alliance and consultant to the National Biodiesel Board. I've interviewed Michael for stories before but it was a nice experience to finally meet him. Michael is a great conversationalist and he knows his stuff. We talked at length about the biodiesel industry and all of the opportunities that are still out there, especially in the heating oil market. Michael thanks again for the wonderful conversation and all of your ideas-we'll be in touch. 
 
 I moderated a biodiesel panel at the show, which featured Robert Cerio who is an engineer with Ocean State Energy Resources and consultant to the NBB. Robert gave a great presentation and provided the audience with a lot of positive news about America's first advanced biofuel-biodiesel. Nat Harris, production manager with Newport Biodiesel, was also featured on the panel. Newport Biodiesel has a great story to tell and Nat did a very nice job telling that story. Two students from the University of New Hampshire were also on the panel, Rebecca Wilson and Gina Chaput. They are part of the UNH Biodiesel Group and were very impressive. Becky spoke about research on a two-stage reaction process she is developing under the guidance of UNH's Dr. Farag. Gina presented on algae research, using wastewater to grow algae for biodiesel feedstock. I strongly believe students are the future of this industry and work going on at the university level is critical to creating a more efficient and robust industry. 
 
 What truly impressed me was all of the interest from the audience in this biodiesel panel. There was no shortage of questions, and the crowd was intensely engaged in the panel and what they had to say. The presentations ran short and there was about a half an hour for questions, and we took up every minute of that engaged in discussion. Thanks again to the great panel and the thoughtful questions from those in attendance. The crowd definitely got their money's worth out of the biodiesel panel, that's for sure. And for anyone who thinks the biodiesel industry is on its last leg, you should have seen all the interest in America's first advanced biofuel in Boston. It was very inspiring and gave me newfound hope in this great, and always interesting, field.

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Biodiesel Interest High in Boston

Since the enactment of the Patient Protection and Affordable Care Act in March, the various federal departments responsible for enforcing the Act have scrambled to issue guidance, while employers who sponsor group health plans have struggled to determine the effect of the new rules on their plans. The departments issued interim guidance for grandfathered plans in June, followed by preventative care guidance for nongrandfathered plans in July.
 
 Guidance for nongrandfathered plans Plans subject to this rule must cover specified preventative services and must provide first-dollar coverage for those services. No cost-sharing (including copayment, coinsurance, deductible or annual limit) is permitted, as long as the preventative service is obtained from a network provider. 
 
 Covered preventative services include screenings for cancer, diabetes, high cholesterol and high blood pressure, routine vaccinations and well-child care. Tobacco cessation counseling must also be covered as a preventative service.
 
 The requirement to provide preventative care without cost sharing applies to nongrandfathered plans, and is effective with plan years beginning after Sept. 23. Nongrandfathered plans include both existing plans that have lost grandfathered status and new plans.
 
 Maintaining grandfathered status A grandfathered plan is a health plan that had any participants on March 23 this year. To maintain grandfathered status, one must include a statement in plan materials describing the benefits provided and stating that the plan is believed to be a grandfathered health plan; and provide plan contact information for questions and complaints. Conversely, to lose grandfather status, a company can reduce its benefits, increase a percentage cost-sharing requirement, increase fixed-amount cost-sharing requirements beyond specified limits, decrease employer contribution rate by more than 5 percent, and increase annual limits. 
 
 Future guidance Certain changes to a grandfathered plan will not result in loss of that status. These include amendments to comply with federal or state law mandates (such as mental health parity) and amendments to voluntarily comply with provisions of the act that are not mandatory for grandfathered plans. The departments have solicited comments on whether the following changes will result in loss of grandfathered status: changes to plan structure (such as switching from insured to self-insured); changes in provider networks; changes to prescription drug formularies; and any other substantial change to benefit design. Any future guidance that is more restrictive will apply only on a prospective basis.

 
 Weighing costs, benefits The departments acknowledge that plan sponsors must weigh the costs and benefits of retaining or relinquishing grandfathered status. Benefits include grandfathered plans being exempt from many of the requirements of the act besides the preventative care rules discussed above, including new rules for claims and appeals and nondiscrimination rules for insured plans. Certain other requirements apply to grandfathered plans, but on a modified or delayed basis.
 
 Costs include grandfathered plans being subject to many of the requirements of the act, including restrictions on pre-existing condition limitations, rescissions of coverage and coverage limits and a modified requirement to cover dependent children up to age 26. Maintaining grandfathered status necessarily restricts the extent to which employers may shift costs to employees and also limits the employer's ability to "shop" for more affordable coverage. 
 
 Intangible factors such as employee morale also enter into benefit decisions. The key is to make an informed decision rather than inadvertently losing grandfathered status due to a lack of information.
 
 
 Alice Eastman Helle is an attorney with BrownWinick, a Des Moines, Iowa-based law firm, and practices primarily in the areas of pensions and employee benefits. Reach her at (515) 242-2407 or <a href="mailto:helle@brownwinick.com">helle@brownwinick.com</a>.

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Recent Healthcare Guidance Issued

In Iowa, more than 750 diesel technicians and students received training on the benefits and use of biodiesel over the past year through an educational program facilitated by the Iowa Biodiesel Board. The program, funded by the Iowa Power Fund, was specifically targeted at helping Iowa's diesel mechanic community and community college instructors learn more about biodiesel and its performance in diesel engines. In the first year of the program, continuing education courses aimed at diesel mechanics in the workforce were held at all 15 of Iowa's community colleges.  A two-day "train the trainer" course was also offered for college faculty in September 2009, where instructors were provided with biodiesel curriculum and had the opportunity to interact with industry experts.

Mechanics receive biodiesel training

Barring any changes after a 30-day comment period, the U.S. EPA has set 2011 RFS2 production volumes at 800 million gallons for biomass-based diesel. The EPA also noted that due to an advanced biofuels shortfall, additional biomass-based diesel could be used to fulfill the 1.35 billion gallon advanced biofuels requirement. The EPA estimates that 125 million to 144 million ethanol-equivalent gallons of advanced biofuel will be needed to make up for the shortfall. "We believe that Congress wanted to encourage the development of advanced renewable fuels and allow in appropriate circumstances for the use of additional volumes of those fuels," EPA said.
 
 The National Biodiesel Board pointed out that in the next 18 months, a minimum of 1.145 billion gallons of biomass-based diesel will enter the marketplace due to 345 million gallons still required to meet 2010 requirements. The biodiesel industry remains ready, willing and able to meet the requirements of the program, said Joe Jobe, NBB CEO, adding, "By 2011, much of the uncertainty that has accompanied the start-up and transition of the program in 2009 and 2010 will have been eliminated."

2011 biodiesel production volumes set

Northeast Biodiesel LLC and Co-op Power held a groundbreaking ceremony in August for a new 3.5 MMgy biodiesel plant in Greenfield, Mass. Led by majority shareholder Co-op Power, the cooperative effort invested $2.5 million into the development of the plant. The facility, which will use recycled vegetable oil from local restaurants, is expected to be in full operation by January 2011, according to Northeast Biodiesel LLC board chair Lynn Benander.

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Biodiesel plant breaks ground in Mass.

The Congressional Budget Office recently completed a study of biofuel tax credits, with the aim of determining if existing tax credits favor one biofuel over another. The study also estimated the costs of those credits on U.S. taxpayers. 
 
 Completed at the request of the Chairman of the Senate Subcommittee on Energy, Natural Resources and Infrastructure, the study was designed to provide policymakers with information on the value of the credits. In general, the report found that the cost to taxpayers for the biodiesel tax credit was less than the cellulosic ethanol tax credit, but more than the tax credit for corn ethanol. Although in the case of greenhouse gas emissions, this metric was reversed. 
 
 However, a statement issued by Imperium Renewables Inc. called the CBO report "fatally flawed." According to Imperium, the study is misleading because it accounts only for taxpayer costs, and does not address the many benefits these tax credits create for taxpayers. In addition, Imperium said the report underestimates the benefits of biofuels while hiding the significant cost to taxpayers of our reliance on fossil fuels. "This report is like a cost-benefit analysis, without the benefit analysis," said Imperium Founder and CEO John Plaza. "The CBO…ignored data showing that every dollar of subsidy invested in biofuels returns more than two dollars in increased gross domestic product and state and federal tax revenue."

Biodiesel producer says CBO report is flawed

University of Illinois researchers are exploring the use of electrochemical sensors on diesel vehicles to detect specific contaminants in the fuel, such as sulfur or sulfur-based compounds, contaminants that existing sensors may not detect. 
 
 The research team is contributing to the development of a sensor that, when placed in the fuel line prior to where the fuel enters the engine, the electrochemical sensor can detect any contaminants in, or other problems with, the fuel, according to Alan Hansen, professor of agricultural and biological engineering at UI and lead researcher on the project. 
 
 "If one adds biodiesel as a blended fuel to the diesel, we're trying to make it determine the quality and quantity of biodiesel entering the engine," he said. "Other contaminants in the biodiesel are of interest to us such as methanol, glycerol and so forth."

Researchers investigate improved fuel sensors

Honda Motor Co., Japan's second-leading automaker, confirmed plans to delay production of its clean diesel engines and shift focus on its growing hybrid line. After the global financial meltdown in 2008, Honda initially planned to build clean diesels and other fuel-saving vehicles at its Yorii manufacturing facility north of Tokyo, but construction has since been delayed. As a result, Honda delayed the development of clean diesel engines, planning instead to roll out with a new hybrid system to boost fuel economy in its larger vehicles, according to Honda spokesman Chris Martin. "We're certainly not out of the diesel business," he said. "We continue to look for developments there."

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Honda shelves clean diesels for hybrids

One day before Massachusetts' biodiesel mandate was set to go into effect, the state's department of energy resources (DOER) announced it would delay implementation due to cost concerns. "It is the finding of the DOER that implementing a minimum biofuel content requirement in diesel transportation fuel and heating fuel is not feasible on the basis of unreasonable cost," said the DOER in a statement. 
 
 The recent expiration of the $1 per gallon blender credit for biodiesel was cited by the department as a primary factor in the decision to suspend the mandate. According to the DOER, the absence of the tax credit would result in a 3 cent per gallon increase in a 2 percent biodiesel fuel blend. Logistical compliance challenges were also cited by the department as playing a role in the decision to suspend the mandate. 
 
 As an alternative, the DOER has proposed a voluntary program that it said will encourage the use of biofuels that meet the standard of the mandate. Under the voluntary program, any entity in the diesel or heating oil sector that wishes to use an advanced biofuel may choose to report its usage to the DOER. The DOER, in turn, will use the reported information to develop a streamlined process to qualify fuel and report on its usage. "In so doing, DOER hopes when market conditions permit, it can implement the biofuel mandate with minimal administrative burden to those entities affected," said the department in its statement. 
 
 According to Michael Ferrante, president of the Massachusetts Oilheat Council, the decision to suspend Massachusetts' biodiesel mandate came as no surprise. In addition to financial concerns, Ferrante said the state was facing significant compliance issues related to logistics. "They haven't been able to fully grasp how to regulate the flow of fuel, and truly put a mandate in place for fuel that comes from [out of state]," he said. 
 
 Much of this difficulty stems from the fact that many retailers in the Northeast sell products into neighboring states, said Matt Cota, executive director of the Vermont Fuel Dealers Association. While many have been disappointed with the DOER's decision to suspend the B2 mandate, national Oilheat Research Alliance President John Huber said the action will not affect the commitment made by the oilheat industry last year to increase the use of biodiesel-blended products. 
 
 Even without a mandate in effect, Ferrante estimates that about one-third of Massachusetts' estimated 350 retail heating oil dealers offer biodiesel-blended heating oil. While the suspension of the mandate is disappointing, Ferrante said he doubts it will impact the commitment of those already offering these products. "They are going to continue to do so because they believe in the fuel quality," he said. "I don't think they are going to be deterred by the delay, and I think they see the value in continuing [to offer those products]."
 While some have speculated that Massachusetts' action may set a precedent other states could follow as they face their own economic concerns, Shelby Neal, director of state government affairs at the National Biodiesel Board, said that what has happened in Massachusetts is not representative of what the NBB is seeing in other areas of the country. "The reality is that the vast majority of states are very committed to using biodiesel, and I think that they will continue to use biodiesel," he said. 
 
 According to Neal, the Northeast has actually shown more interest in biodiesel than any other region in the country. "I think that because the area is so reliant on petroleum fuels, both in the transportation sector and the heating oil sector, they really understand the way biodiesel can help them," he said. "The level of excitement for biodiesel and interest in biodiesel in the Northeast is higher than anywhere else in the country." In fact, New York City passed a bill in late July mandating the use of biodiesel blended heating oil. 
 
 Ralph Groschen, senior marketing specialist at the Minnesota Department of Agriculture, agrees that Massachusetts' action is unlikely to set a precedent for other states to follow. "Like any industry, you are going to have good times-and we've had those-and, you are going to have tough times, which we are having now," he said. "I think it's good for people involved in the industry…to maintain our composure and not stir the waters making it sound like a big crisis…If we are going to replace imported fossil fuels with domestic renewable ones, we are going to have to stick it out through thick and thin."

 
 Even though some state biodiesel incentives and mandates may fall victim to financial concerns in the current economic environment, support at the federal level remains strong. According to Al Mannato, fuels issues manager at the American Petroleum Institute, API's members are supportive of the biodiesel industry. Mannato said the most significant factor affecting the ability of API members to blend more biodiesel is a lack of production, which Mannato attributes to the expiration of the biodiesel tax credit.
 
 While Mannato said the API doesn't anticipate any problems in meeting next year's federal biodiesel mandate of 800 million gallons, there is concern over the U.S. EPA's decision to combine this year's mandate and last year's mandate, requiring a combined total of 1.15 billion gallons of biodiesel to be blended by the end of the year. As a result of the EPA's decision, the API and the National Petrochemical and Refiners Association have filed a lawsuit against the agency. According to Mannato, the court granted the API's request for an expedited briefing schedule. He said a final decision is expected later this fall. "The standard this year [put in place by the EPA], we believe is retroactive, and therefore unlawful," Mannato said. "That is why we brought the suit. We really don't have a general problem with the renewable fuel standard, just with its retroactive application this year."

While Massachusetts suspended its biodiesel mandate in late June, support for biodiesel-blended fuels in the Northeast remains strong. New York City announced in July that it would implement a program requiring B2 blends of heating oil and diesel fue

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Biodiesel support remains strong despite Massachusetts' suspension

The biodiesel industry brimmed with optimism when the biodiesel tax credit extension was included in H.R. 4213, or the Unemployment Extension Act of 2010. Then in July, to the dismay of the majority of producers in the industry, the tax credit carve-out was subsequently stripped, deflating industry confidence and leaving some to wonder if it was the proverbial "straw that broke the camel's back." 

 
 Until Congress considers the inclusion of a biodiesel tax credit in a legislative package, disdain will be resonating throughout the industry, particularly from undercapitalized small to mid-sized producers. Commodity price swings, high operational costs and low to nonexistent demand are a few of the factors that have caused many plants to scale back production or shut down operations altogether. 
 
 "When [the tax credit] was stripped from the jobs bill we were discouraged, no doubt," said Barry Jones, production manager for Triangle Biofuels Industries, a 5 MMgy multifeedstock plant in Wilson, N.C. Jones said the plant is one of a handful in North Carolina that are operating well under maximum capacity. "We're still operating under the assumption that we'll get [the tax credit] back retroactively."
 
 AZ BioDiesel, a 500,000-gallon-per-year facility in Gilbert, Ariz., that operates under its cooperative operating entity Performance BioFuels LLC, is building a 10 MMgy plant expected to be open next year. President Dan Rees said his company likely won't survive if the tax credit isn't reenacted. He said the company is adapting with investor funding it received this year to build the new plant. 
 
 "We have been selling our fuel as if the fuel credit still exists," he said. "I think a lot of us [in the industry] took a gamble. Now I'm not sure if we can hold out until the end of the year. We're playing a dangerous game where you're actually playing Russian roulette with the government."
 
 As a secondary means of breaking even, some producers believe the high price of renewable identification number (RIN) credits during biodiesel distribution could offset the need for a tax credit in the interim. "I think it could create a different market independent of the tax credit," said one southern producer who asked to remain anonymous, given how volatile prices would be once registered at the end of the year, "although there's no silver lining here," he added.
 
 Some companies might be better structured to survive through this period without a major federal subsidy. "Our demonstrated capability of managing upstream feedstock supply and providing downstream product services to our customers is what I think helps us get through these tough times," said Daniel Oh, president and chief operating officer for the nation's largest biodiesel company, Renewable Energy Group Inc. REG bulked up its national multifeedstock procurement network in July when it acquired Restaurant Technologies Inc. With more than 16,000 used cooking oil collection systems spread throughout the U.S., along with 36 collection depots, REG gains broader access of yellow grease as feedstock for its production facilities. Included in the RTI cooking oil purchase agreement, REG also acquired Tellurian Biodiesel Inc., a California-based company and marketer, and American BDF LLC, a joint venture owned by Golden State Service Industries, a wholly-owned subsidiary of Golden State Foods.
 
 Zachary Shelton, director of sales for General Biodiesel Inc., which operates a 15 MMgy multifeedstock plant in Seattle, said the company is doing its best to adapt without the tax credit. "It's not a solid part of our business model to expect subsidies," he told Biodiesel Magazine prior to the tax credit being stripped out of the unemployment extension bill. "I think the industry still has wide hope that a credit will still be passed."
 
 Shelton's optimism notwithstanding, some producer confidence is waning with each passing month. "I'm starting to lose hope," Rees said. "To go, in hindsight, and rely on the federal government that was committed to an industry for so long and then for it to turn its back on us baffles me."

Producers such as Seattle-based General Biodiesel continue to operate under tight economics. PHOTO: GENERAL BIODIESEL

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Producers press on amid absent tax credit

Fuel quality is an issue that isn't discussed nearly as often as it once was-and that's a good thing. It means that, as an industry, we have worked together to address what was once considered by some to be a less-than-stellar record.
 
 In recent years, the National Biodiesel Board has taken a number of steps to address this issue.
 
 First and foremost, NBB staff and members have been active in ASTM International, helping craft and implement appropriate fuel specifications for B5, B6-B20 and B100. Developing a consensus within our own industry, not to mention the petroleum and engine manufacturing industries, has been a challenge. But it has been achieved and now we can be proud of the fact that biodiesel is the only renewable diesel replacement fuel to have an ASTM fuel specification, much less three.
 
 Second, NBB members helped start an independent, nonprofit organization whose mission was to develop and implement a set of best practices for biodiesel producers and marketers. This organization, the National Biodiesel Accreditation Commission, has created a voluntary program named BQ9000. To participate in BQ9000, members must pass a rigorous quality control inspection, undergo regular audits, and agree to adhere to a set of best practices that, among other things, includes testing every batch of fuel that leaves a company's facility. We have been pleased with the way in which NBB members have embraced this program. In recent years, more than two-thirds of the biodiesel produced in the U.S. has come from BQ9000 producers-and new members are added nearly every month. 
 
 Third, NBB's proactive effort to ensure fuel quality includes an aggressive education and outreach campaign for fuel distributors and handlers. Over the years, we have built lasting partnerships with state and national stakeholder organizations such as the Petroleum Marketers Association of America. The Ask Ben hotline, videos, literature, direct education, and outreach have all played a role in setting high quality standards for biodiesel. 
 
 Finally, the NBB has taken the highly unusual step of lobbying government officials for stricter and more aggressive regulation. We employ four individuals who travel coast-to-coast, educating state regulators about the importance of adopting appropriate ASTM specifications for fuel quality and about the necessity of enforcing these standards once they are set in rule or law. Since NBB began investing in this outreach program, regulation at the state level has improved dramatically. In 2007 only 27 states had adopted the ASTM D6751 fuel specification for biodiesel. Today, 47 states have done so. And that number could very well reach 49 by the time this article goes to print, meaning every state except Alaska has adopted and enforces the ASTM specification for biodiesel.

 
 Because the biodiesel industry has been so proactive about ensuring consumers receive only the highest quality fuel, I am not surprised when I don't hear much about fuel quality anymore. Likewise, I am not surprised that when I do hear something, it is often positive. For instance, I attended a legislative hearing recently, during which a senator noted concerns about the quality of biodiesel produced and consumed in the state. When asked to respond, a state regulatory official replied by saying something to the effect of the following: "Senator, we have been conducting fuel quality surveys for more than a year and what we have found is that biodiesel is on spec more than petroleum diesel."
 
 That, my friends, is progress. But as one of my colleagues in the industry likes to say, "The appropriate standard for fuel quality is perfect." So while better than petroleum is good, my colleague is ultimately correct. As such, we will continue to seek perfection through the continued diligence of our members and the initiatives discussed in this article. In the meantime, however, I am glad the topic of fuel quality has faded into the conversational background-for all the right reasons.

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Biodiesel Quality Exceeds Standard

Biodiesel is an advanced biofuel. It is next generation fuel. It is the fuel of the future, here now. But as National Biodiesel Board CEO Joe Jobe points out, others threaten to define biodiesel.
 
 "The key is securing biodiesel's image as next generation and claiming our identity as an advanced biofuel," Jobe said. "As champions of the biodiesel industry, all of us need to repeat this message everywhere we go 40 times per day."
 
 From a national view, NBB is working with industry leaders to provide tools and materials to help them enact this message in their own communications and strengthen biodiesel's position as an advanced biofuel. 
 
 As part of this effort NBB:
 
 developed print and online ads that capture the advanced biofuel message
 
 created a new PowerPoint template 
 
 built a revised "Biodiesel 101" presentation to make it easy for members and stakeholders to talk about biodiesel with others
 
 hosted webinars to coach industry leaders to be effective advocates

 
 Another major change is the launch of an updated two-color biodiesel logo that swaps green for black. The green emphasizes biodiesel's role as a renewable fuel and responds to focus group criticism that using black for the word "diesel" triggered an association with what one participant called "dirty petroleum." 
 
 These are just a part of the ongoing effort to secure biodiesel's identity as an advanced biofuel. More information and these materials are available from NBB or on the Members Only website. 
 
 The effort will be most effective if biodiesel stakeholders work together to support this message. "Instead of being defined by others, we must define our self. It is critical we brand ourselves as America's first and currently only advanced biofuel," Jobe added.

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The National Biodiesel Board captured the advanced biofuels message in advocacy ads that ran in Washington-based publications, The Hill, Politico and Roll Call.

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Educational ads help spread the message that biodiesel is America's first and only commercially available advanced biofuel.

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Advanced identity: NBB rolls out support to strengthen  biodiesel's position as an advanced biofuel

Despite another difficult year, our industry has demonstrated that we're here for the long haul. And 2011 has the potential to be a banner year for biodiesel production. 
 If you are here for the long haul too, then plan now to participate in the biodiesel event of the year. 
 
 The annual National Biodiesel Conference & Expo is the only event that gathers biodiesel decision-makers from across the U.S. and the world. Opportunities are unlimited for attendees and exhibitors to network, connect and learn. 
 
 This event will explore the topics of governmental policy, technical issues and marketing trends in the biodiesel industry. The implementation of the revised renewable fuels standard is sure to take center stage as this important program lifts production numbers nationwide. 
 
 Demographics show most of our attendees are high-level decision-makers in their respective areas. This conference truly has developed into an annual "meeting of the minds," and those who attend will be two steps ahead of their competitors. 
 
 The 2011 conference, to be held at the Phoenix Convention Center, will include an array of networking and social events in this exciting city, along with our always popular Expo. 
 Here are some important dates that will save you money:
 
 Exhibitor Early Bird Deadline: 10/5/10
 
 Attendee Early Bird Deadline: 11/19/10
 

 We look forward to seeing you there for another great conference. For more, visit www.biodieselconference.org.

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Opportunities are unlimited for attendees and exhibitors to network, connect and learn. PHOTO: 2010 National Biodiesel Conference & Expo

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General and breakout sessions offer countless learning opportunities. This panel on feedstock was among the most popular in 2010. PHOTO: 2010 National Biodiesel Conference & Expo

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Demographics show most of attendees are high-level decision-makers in their respective areas. PHOTO: 2010 National Biodiesel Conference & Expo

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Phoenix in 2011: You just have to be there

Iowa Governor Chet Culver, who is chair of the Governors' Biofuels Coalition, told members of the National Biodiesel Board that he is more determined than ever to help get the extension of the federal biodiesel tax incentive passed. 
 
 Culver addressed members at NBB's last board meeting in Washington. He noted that the renewable energy industry is one of the best opportunities to grow the economy. 
 
 "Unfortunately a lot of people have not had the chance to understand what we are already doing, much less than what is possible," Culver said. "I can't think of a better alternative than biofuels and biodiesel. It is homegrown, cleaner and energy efficient. Plus it is a great way Americans can say no to imported foreign oil."
 
 Culver went on to say that it "makes no sense" that the biodiesel incentive has not been extended yet. "If we can't extend the biodiesel tax credit, how can we even think about anything beyond that relating to renewable energy?" he said.
 
 "Biodiesel is the only commercially available advanced biofuel in the U.S.," said Joe Jobe, CEO of the NBB. "We ask Gov. Culver to do everything in his power as chair of the Governors' Biofuels Coalition to move the tax incentive forward. Biodiesel must be on a level playing field with petroleum, which has had decades of substantial subsidies." 
 
 The Iowa Biodiesel Board invited the governor to speak to the industry.

Governors' Biofuels Coalition chair pledges support in passing biodiesel tax incentive

The fuel testing laboratory at Iowa Central Community College in Fort Dodge, Iowa, has become the first in the world to earn accreditation as a BQ-9000 laboratory. It means the lab has become a national leader in testing biodiesel and biodiesel blends to ensure they meet fuel quality standards. 
 
 The nonprofit Iowa Central Fuel Testing Laboratory offers cost-effective, rapid testing for biodiesel producers nationwide. It also tests other fuels including ethanol and petroleum. 
 Organizers hope that its new biodiesel accreditation will help it earn the business of more customers, including the Iowa Department of Agriculture's Weights and Measures Bureau, tasked with fuel quality compliance. 
 
 "One reason we wanted this accreditation is because people don't necessarily associate a community college with state-of-the-art laboratories, but that's exactly what we have, and BQ-9000 backs up our credibility," ICFTL Director Don Heck said. 
 

 Earning the designation of BQ-9000 Laboratory involved creating a detailed manual that regulates the process used in every step of the lab's biodiesel testing. A third-party auditor inspected the facility before granting accreditation. 
 
 BQ-9000 is a voluntary quality assurance program overseen by the independent National Biodiesel Accreditation Commission. To date, 62 biodiesel producers and marketers are BQ-9000 certified companies, representing 75 to 80 percent of the U.S. biodiesel production volume. 
 
 The laboratory designation is new. "There is a need in our industry for qualified, credible laboratories to test biodiesel samples," said Steve Howell, technical director for the National Biodiesel Board. "Becoming accredited is a rigorous process, and the Iowa Central Fuel Testing Laboratory deserves our congratulations for being the first."
 
 Howell noted that, as is the case with biodiesel producers, the NBAC expects to see other labs jumping on board with certification. That will help ensure a high quality fuel supply for producers and consumers alike, he said. 
 
 A combination of federal and state funding helped secure more than $2 million for the lab. The college thanked the NBB, Iowa Soybean Association and Iowa Biodiesel Board for their support and leadership in making the lab a reality. The groups helped conceptualize and develop the lab to help ensure the training, public awareness and testing needs of the biodiesel industry and consumers are met. For more on BQ-9000, visit www.bq-9000.com.

Iowa Central Community College fuel testing laboratory is named first BQ-9000 Lab.

September 2010

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