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Biodiesel Bill Tied to Jobs Bill, Delayed by Blizzard

John Davis

As Congress debates (or tries to debate between blizzards) the jobs bill, the measure that would put lots biodiesel workers back on the job seems to be tied to that same bill’s fate.

This post on the Des Moines Register’s blog says Democrats had hoped to get the jobs bill to the floor today, but the 30+ inches of snow over the weekend plowed under that bill … and the renewal of the lapsed federal biodiesel tax subsidy:

Beth Pellett Levine, a spokeswoman for Sen. Charles Grassley, the senior Republican for the Senate Finance Committee, says he “has insisted that the biodiesel tax credit be a part of any discussions” on a jobs bill with the panel’s chairman, Montana Democrat Max Baucus. The $1-a-gallon tax credit for biodiesel “remains a top priority for Senator Grassley to extend the credit at the first available opportunity,” she added. Soybean growers are looking to Grassley to ensure that the biodiesel credit is part of any jobs bill to come out of the senate, according to John Gordley, a lobbyist for the American Soybean Association.

Renewal of the federal biodiesel tax incentive is seen as the last element to put the biodiesel industry back on track. The other two elements were the EPA’s decisions to consider biodiesel low enough in carbon footprint and mandate this year of 1.15 billion gallons of the green fuel.

Biodiesel, Government, Legislation

Chat with Chairman of National Biodiesel Board

Chuck Zimmerman

Ed HeglundThe Chairman of the National Biodiesel Board is Ed Hegland, seen here as a guest on today’s AgriTalk show.

Ed says that attendance was something they were very concerned about here at the Conference due to the state of the industry and the weather but they had to bring in 100 extra chairs to the opening general session so he thinks attendance is better than expected. He’s optimistic for the future because of the EPA RFS-2 ruling and the expectation that the biodiesel fuel credit will be re-instated soon.

You can listen to my interview with Ed below.

National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference

California’s Love Affair With Oil

Joanna Schroeder

Last week, the Southern California Association of Governments turned down $11 million in stimulus money for Pearson Fuels to install 55 E85 stations. Huh. And this shortly after the expanded rules were announced for the Renewable Fuels Standard not to mention the Low Carbon Fuel Standard that went into effect on January 1.

What would cause the most notorious state, hailed around the world for its progressive environmental policies, to shun a lower carbon fuel? Hmmm…could it maybe, just possibly be that it is blinded by it’s Big Love for Big Oil?

Let us for a moment, take some time to reflect on California’s torrid affair with oil.

Last year California Lawyer Magazine Awarded its Clay Awards which are given to lawyers who show extraordinary achievements. Lawyers John Daum and Mary Nichols both won a Clay Award for two very different achievements. Daum won for his co-counsel regarding the worst oil spill in environmental history – the Exxon Valdez. But he didn’t win for his work to hold Exxon accountable for its actions – he won the award because he was able to lower the punitive damages that were to be paid to fisherman, landowners and others to one-tenth of the original damages. The magazine writes, “This was truly a signature punitive damages case, and it could have major implications for environmental and other torts in the future.”

While Daum was given an award for his work in defending Big Oil’s environmental offenses, Mary Nichols, who is the chairman of the California Air Resources Board and Daum’s wife, was given an award for her role in passing the Global Warming Solutions Act of 2006. This piece of legislation is intended to reduce CO2 emissions to 1990 levels by 2020. While the final rules are just now coming through the pipeline, the policy could potentially regulate all areas of energy use including land use and will be enforced through a “cap-and-trade” program. It is important to note that through this program, Big Oil doesn’t have to reduce its CO2 emissions solely through alternative fuels. If they bring to market technology that reduces CO2 but still uses fossil fuels, the technology will still meet policy requirements.

Not allowing to let the relationship fizzle, the state rekindeled its love with its latest proffering and now its sizzling once again.Read More

Opinion

Going Green Can Save You Green

Joanna Schroeder

Last week, I wrote a story regarding President Obama’s executive order for the federal government to reduce its greenhouse gas emissions 28 percent by 2020. One goal of this program is to get other companies to follow suit, but many companies don’t know where to start. Enter the Hondo Green Assessment Tool (HGAT). To learn more about how companies can become more sustainable, I spoke with the Hondo Group’s CEO Lynn Balinas.

HGAT is an internet based tool for small to mid-sized companies that can measure a company’s carbon footprint, manage its carbon footprint and maintain carbon footprint goals, explained Balinas. The tool measures five categories: water, energy, transportation, materials and waste. Ultimately the tool helps companies become not only more sustainable but more profitable as well.

“People usually first think, it’s about the environment, it’s about global warming. That’s part of it,” said Balinas. “But it’s good governance and it’s actually profitable for organizations.”

A few years ago, people perceived that going green meant going broke. That is actually not the case. Going green will actually help you make more green. For example, if all small to mid-sized businesses turned off their computers and printers at night (unplug the electronics) nearly $2.1 billion could be saved annually.

Here is how it works. After 35 days of metrics based on the five categories outlined above, the HGAT will tell a company how to reduce the carbon footprint and give suggestions that a company can choose to integrate. Ultimately, the tools that are put into place will help a company manage its program and save money.

Companies can implement the program alone or partner with other small to mid-sized companies. Balinas said that the average cost to a company with less than 50 employees is around $50 per month but the return is much greater.

Listen to my interview with Lynn below to learn more about HGAT.

Audio, Energy, Environment, global warming, transportation, water

Economist Addresses Biodiesel Conference

Chuck Zimmerman

Don ReynoldsEconomist Don Reynolds was the keynote speaker at the opening general session here at the National Biodiesel Conference. He appeared on stage two years ago and predicted the problems in our economy. Today he started out on a very optimistic note in part due to his belief that we’ll continue to see a growing recovery of the economy. His comments were meant to help participants define what is the “new normal” in today’s business environment.

His style is very entertaining and filled with facts and figures that help you better understand what the future may look like. He thinks it’s looking very good.

You can listen to his speech below.

National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference

NBB CEO Joe Jobe Addresses Conference

Chuck Zimmerman

Joe JobeThe CEO of the National Biodiesel Board, Joe Jobe, was on stage to welcome a standing room only crowd at the opening general session to the Conference. He opened up with a political theme to his remarks.

As the folks in the opening video stated very clearly, this last year has been a huge struggle for our industry. With the economic recession, volatile diesel prices, the credit crisis, the blocking of export markets, the delayed implementation of the RFS-2…., even with the tax credit in place, 2009 was really tough. I heard several NBB members say over the course of this year…. “well, the bright side is that it can’t get any worse”. I’ve learned its best not to say that. Because we’ve seen over last 39 days that it could get worse while we have had neither the RFS-2 nor the tax credit in place. The industry has shut down, businesses are going under, jobs are being lost. Its been like watching a train wreck in slow motion. Our top priority remains getting the tax credit reinstated retroactively as quickly as possible.

Joe says that implementation of the new RFS-2 is going to be very complex so three of the sessions coming up will focus on the subject. He also went on to look ahead on a positive note.

But the good news is that when we get this tax credit turned back on, we will be where we set out to be four years ago. Now is not the time to waiver, or turn back, or to run. Let’s stay together and get this done. Let’s get this industry back in business. We can do this!
Besides potentially doubling our production levels for biodiesel this calendar year, the RFS-2 does something else that is very important. It establishes very conclusively under EPA guidelines and federal law, that biodiesel is an advanced biofuel, because it meets the criteria and definition of advanced biofuel under the law. And the reality behind that is that biodiesel is currently the only advanced biofuel that is commercially available nationwide.

You can listen to Joe’s speech below.

National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference

Ethanol Plants Can Be Biorefineries

Joanna Schroeder

The Next Generation Bio-Based Chemicals Summit is taking place in San Diego this week and Poet’s Vice President of Commercial Development, Scott Wishaar, will be discussing how new ethanol co-products can help ethanol plants become true biorefineries.

Photo Credit: Poet

Wishaar is participating in the panel discussion, “Perspectives of Biorefinery Owners and Development on the Bio-Based Chemicals Value Chain” taking place on Wednesday, February 10th.

According to Poet, co-products such as Inviz zein, open many new markets for producers today. Inviz is a biodegradable, low-nutrient protein found in corn and can be used as a gum base or in films, packaging, adhesives, coatings and glazes. Inviz zein is extracted using a patent-pending process developed by POET.

The company is also researching other co-products to further expand the value of corn and anticipates that bio-based chemicals and related products will likely emerge as viable co-products as part of the production process of Project LIBERTY. Poet is is using corn cobs to create cellulosic ethanol as part of this pilot project.

Company Announcement, conferences, corn, Ethanol

Direct Fuels Biodiesel

Chuck Zimmerman

The media was treated to a biodiesel plant tour today at Direct Fuels Biodiesel in Euless, TX. It was a very comprehensive tour that included the facilities and learning about their process and even how they test for quality. Jacob McClernon, Quality Assurance Specialist showed us their cold soak filtration test.

We also heard from Mark Farrer, Director Biodiesel Operations. He gave us a very thorough description of their process and I recorded a portion of it for you to listen to. There are photos from the tour in our photo album which you can access from the link below.

You can listen to Mark’s comments below.

National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference, Video

Irvine, TX Fleet Goes Green

Chuck Zimmerman

Chuck Interviews Ramiro LopezIf you want to talk to a cheerleader for biodiesel then you need to meet Ramiro Lopez, Direct of Intergovernmental Services, Irvine, TX. He’s in charge of fleets and fuels and he was our guide today when we went to the media ride and drive and biodiesel plant tour.

Ramiro says that in Irvine he’s implemented a program to utilize biodiesel in their equipment. He is very big on tank maintenance and quality. He says it has allowed them to green their fleet overnight and save some money in the process.

You can listen to my interview with Ramiro below.

National Biodiesel Conference Photo Album

Audio, Biodiesel, Biodiesel Conference

AAA Poll on E15

Cindy Zimmerman

AAA has already made up its mind about increasing amount of ethanol allowed in gasoline to 15 percent, but they want to know what you think.

The headline for an article posted by the automotive organization last week reads “Bailout Blend: Bad for Your Engine?” and proceeds to bash ethanol as being bad for consumers.

“How would you feel about a fuel additive that could cost you more money and screw up your engine? If the ethanol industry has its way, that’s just what you might get,” they begin, calling an increase to E15 “a bailout for the ethanol industry that may come at the expense of drivers.”

At the end of the one-sided article, AAA asks for your opinion. “Do you think adding E15 to the nation’s fuel supply is a good idea? Log onto AAA.com/Poll and take our poll.” Not surprisingly, the poll is running two to one against E15. Maybe it’s because the article doesn’t say anything about the EPA findings that ethanol is better than conventional gasoline when it comes to greenhouse gas emissions, reducing them by at least 20 percent. AAA says, “Producing ethanol is an energy-intensive process that still results in greenhouse-gas emissions. It won’t save the planet as it still produces pollutants.” It may not save the planet, but it can help cut greenhouse gas emissions by cutting at least some of our gasoline use.

As far as engine issues and mileage concerns, Brazil runs up to 25% ethanol in its cars with no problems, and they consider energy independence to be more important than a few less miles to the gallon.

*post update*
If the link to the poll in the post doesn’t work, try the link in the AAA article. Apparently after you vote, you can’t go back to that link at all, so I can’t get the poll link to add to this post.

Commentary, Ethanol