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-Include high octane/high ethanol Regular Grade fuel in EPA Tier 3 regulations.
-Use a dedicated, self-reducing non-renewable carbon user fee to fund renewable energy R&D.
-Start an Apollo-type program to bring New Ideas to sustainable biofuel and …

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Home » Business News/Analysis, California, Canada, Green Jobs, Opinions, Oregon, Other Conferences, Policy, Presentations, Sustainability

CBA Event Highlights California’s Thriving Biodiesel Market

Submitted by on March 14, 2017 – 12:56 pmNo Comment

by Celia DuBose (California Biodiesel Alliance/Biodiesel Magazine)  Jennifer Case, chair of the California Biodiesel Alliance, ended her opening address at the sixth annual California Biodiesel Conference March 1 in Sacramento with one simple message: The world of biodiesel is trending up. While not shying away from challenges to the state’s industry, Case focused on the good news that the state has survived recent threats to its low carbon fuel standard (LCFS) and has seen credit values rise as a result. She said it’s time to celebrate the opportunity for soy and biodiesel imported from other states to help meet current LCFS demand and the demand that will be created by aggressive targets beyond 2020 under SB 32, which calls for an overall economy-wide greenhouse gas (GHG) reduction of 40 percent by 2030 compared to 1990 levels.

With a focus on ARB’s new rulemaking, Shashi Menon, managing partner at EcoEngineers, praised the LCFS and called the proposed verification program a step in the right direction. He offered some of his thoughts about how to reduce risk in the credit marketplace and how to regulate, monitor and help verification bodies—all toward the goal of letting the clean fuels sector focus on production.

Don Scott, the director of sustainability for the National Biodiesel Board, presented information about recent improvements in land use change (LUC) modeling that are showing decreases in the indirect LUC penalties of most biofuels, including soy biodiesel. Stating that, globally, we are feeding more people and using less land to do so, he ended by calling it a convenient truth that “when we grow protein to feed the world, we get more fat than we can eat. This is a natural and abundant form of stored solar energy.”

The ADF (alternative diesel fuel) regulation requires reporting by producers, importers and blenders beginning Jan. 1, 2016, and will require new reporting on Jan. 1, 2018, to include the method of nitrogen oxide (NOx) control. He said that LCFS and ADF provide a “durable framework” for lowering the CI of transportation fuels to 2020 and beyond and cited biomass-based diesel fuels’ significant environmental and human-health benefits, specifically the importance of particulate matter (PM) reductions in environmental justice (EJ) communities.

Tim Olson, energy resources manager at the California Energy Commission, pointed out potential competition for funding from his agency facing biodiesel from refinery co-processing, biomethane, low-NOx natural gas and renewable diesel.

Donnell Rehagen, CEO of the NBB, presented a comprehensive overview of the federal biodiesel industry. Citing the NBB’s “10×22 Vision” for biodiesel to comprise 10 percent of diesel fuel demand by 2022, he updated attendees on the Renewable Fuel Standard and the federal tax credit, the market drivers behind that goal. Among the range of opportunities and challenges for biodiesel at the different regional levels, he pointed out the staggering potential of California’s LCFS to catapult biodiesel and renewable diesel demand from several hundred million gallons today to 1.6 billion gallons by 2030.

Canada’s federal government, and several provincial governments, are developing renewable and clean fuel standards. Regulations promoting biofuels are being updated and new ones are being proposed with industry consultation underway. This is occurring in Quebec, Ontario, Alberta, and British Columbia, the provinces where 85 percent of Canada’s fuels are sold, offering significant growth opportunity for biofuels.

Shelby Neal, NBB’s director of state governmental affairs, discussed his view of a more realistic scenario than that put forward in the state’s biofuel supply module, which relies heavily on electric vehicles, biomethane and hydrogen adoption. His bottom line: California should not limit biodiesel to 20 percent or play favorites between biodiesel and renewable diesel, because the state is going to need all of those fuels it can get.  READ MORE

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