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Posts Tagged ‘Energy Security’

Source National Biodiesel Board
The U.S. House has approved H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, by a 215 to 204 margin (the second portion of the divided question adding a provision pertaining to Medicare physician payment updates was also adopted). The legislation retroactively extends the biodiesel tax incentive through December 31, 2010.

U.S. Senate Majority Leader Harry Reid (D-NV) has indicated his desire to have the U.S. Senate consider tax extender legislation when the U.S. Senate reconvenes the week of June 7, 2010.

Both the U.S. House and U.S. Senate will be adjourned the week of May 31, 2010. NBB’s Washington, DC office will continue to provide timely updates as events warrant when Congress reconvenes the week of June 7.

Biodiesel Public Policy Benefits: The biodiesel tax incentive has helped achieve the worthwhile policy goal of increasing the production and use of biodiesel in the U.S. In 2004, when the incentive was initially enacted, the U.S. produced 25 million gallons. In 2009, that number rose to 545 million gallons. There are compelling public policy benefits associated with the enhanced production and use of biodiesel in the U.S. Among the most are:

* The Biodiesel Industry is Creating Green Jobs and Making a Positive Contribution to the Economy;
* Biodiesel is Good for the Environment, reducing carbon pollution by up to 85 percent, according to the EPA;
* Biodiesel Reduces our Dependence on Foreign Oil.

The biodiesel tax incentive has helped achieve the desired goal of increasing the domestic production and use of biodiesel, and in turn has helped the U.S. realize the energy security, economic and environmental benefits associated with displacing petroleum with domestically produced renewable fuels. These benefits, however, will be lost if Congress does not act in a timely manner to address the immediate issue facing the industry and retroactively extend the biodiesel tax incentive.

What Can You Do?

Do you think Congress should reinstate the biodiesel tax incentive and continue to realize the economic, energy secur ity and environmental benefits that come from the production and use of biodiesel?

If your answer to this common-sense question is “yes,” then you should contact your Federal Elected officials immediately about this issue. For your Congressman, click HERE and for your Senators click HERE to get the contact information to reach out to your elected officials on this important issue.

Thank you for your support of biodiesel.

A new biodiesel production system has been delivered to a US Navy base in Southern California, so it can produce its own renewable fuel.

Modular Biodiesel Plant

Locally-based Biodiesel Industries, Inc., has been working with the Navy and aerospace technology firm Aerojet to set up a highly-automated production facility at the Naval Base Ventura County.

The project at the base located north-west of Los Angeles centers around an ARIES biodiesel plant – an Automated Real-time, Remote, Integrated Energy System.

The system can produce around 3-10 million gallons of biofuels per year to act as a replacement for the Naval Base’s petroleum-sourced diesel fuel. It could also produce heat for use on the base.

Russell Teall, President and Founder of Biodiesel Industries said: “The Integrated Energy System incorporated into ARIES will eventually allow us to generate our own heat and power, and to feed the surplus into a local micro-grid.”

It can be operated remotely, while its automated technology can control key chemistry and processing parameters to ensure optimized production capacity, according to Biodiesel Industries.

The company hopes the Naval project could act as a springboard to spread the use of the ARIES automated biodiesel system around the world.

Michael Cassady, Biodiesel Industries’ Executive Vice President and Chief Operating Officer said: “ARIES is ready now to be deployed on a global basis. The ARIES platform fundamentally transforms biodiesel production and makes this possible.”

Naval Goals

The US Navy is currently working to cut petroleum use in its non-tactical vehicle fleet in half by 2015 while also developing biofuels for use in its ships (see this BrighterEnergy.org story).

Our methods of feedstock development make ARIES an ideal solution for a globally distributed network of biodiesel production facilities” - JJ Rothgery, Biodiesel Industries

The move is being taken to improve its energy security, reducing its reliance on foreign oil, as well as environmental and economic considerations.

Global Independence

It has been reported the US government currently spends 5 dollars in transportation cost for every 1 dollars it spends on fuel in remote areas of the world such as Afganistan. A modular biodiesel processor that can produce fuel from variable feedstocks is a move towards fuel independence for the U.S. Military in its worldwide operations. Modular biofuel processing units co-location is not a new idea, but this is the first time the Navy has made a large move of this kind towards securing it’s global fuel supply using alternatives. GO NAVY!

The National Biodiesel Board (NBB) welcomed the Environmental Protection Agency’s (EPA) issuance of the final rule to implement the expanded Renewable Fuels Standard (RFS2) provided for in the Energy Independence and Security Act of 2007(EISA).

“The U.S. biodiesel industry is pleased that the EPA has issued the final RFS2 rule,” said Joe Jobe, Chief Executive Officer of the NBB.  “There are significant job creation, energy security and environmental benefits associated with expanded biodiesel use.  Today’s rulemaking – in particular implementation of the Biomass-based Diesel program – will allow America to reap these benefits.”

EISA was enacted on December 19, 2007.  The legislation expanded the Renewable Fuels Standard and for the first time specifically provided for a renewable component in U.S. diesel fuel.  RFS2 requires the use of 500 million gallons of Biomass-based Diesel in 2009, increasing gradually to 1 billion gallons in 2012.  From 2012 through 2022, a minimum of 1 billion gallons must be used domestically, and the Administrator of the EPA is given the authority to increase the minimum volume requirement.  To qualify as Biomass-based Diesel, the fuel must reduce greenhouse gas (GHG) emissions by 50 percent compared to petroleum diesel.  Biodiesel is the only fuel available in commercial quantities in the U.S. that meets the definition of Biomass-based Diesel.

On May 26, 2009, the EPA issued the proposed rule to implement the RFS2 program.  The proposed rule contained several significant flaws that were highlighted in NBB’s comments.  Many of these concerns have been addressed in the final rule, including:

• Final rule accounts for 2009 and 2010 Biomass-based Diesel use requirements. Consistent with EISA’s requirements, 1.150 billion gallons of biodiesel must be used domestically by the end of 2010.  Biodiesel used domestically in 2009 and 2010 will count towards this total.

• EPA’s lifecycle GHG emission calculations are significantly improved. NBB’s comments noted significant shortcomings with EPA’s initial lifecycle methodology, including inaccuracies pertaining to nitrogen fixing with soybeans; co-product allocation; energy balance; and agricultural efficiencies.  Industry comments also noted significant flaws associated with EPA’s initial international land use assumptions.  The GHG methodology used in the final rule has been updated to reflect industry comments, and biodiesel produced from domestic soybean oil is assumed to reduce GHG emissions by 57 percent compared to petroleum diesel fuel, and the EPA’s uncertainty analysis recognizes that the GHG reduction could be as high as 85 percent.  Thus, biodiesel produced from soybean oil will qualify for the Biomass-based Diesel program, and the rulemaking provides pathways for biodiesel produced from other vegetable oils to qualify for the program.  Though NBB continues to object to the use of international indirect land use change in EPA’s GHG methodology, the methodology employed in the final rule represents a significant improvement over the proposed rule.

“The U.S. biodiesel industry stands ready to provide the fuel that will be needed to meet the readily attainable Biomass-based Diesel goals established in RFS2.  We look forward to working with all industry stakeholders to successfully implement this worthwhile program,” concluded Jobe.