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Biodiesel Tax Incentive Extension Clears Congress
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Today the U.S. House of Representatives approved H.R. 1424, the Emergency Economic Stabilization Act, by a 263 to 171 margin. The Senate approved the bill on Wed., Oct. 1 by a 74-25 margin. In addition to addressing the crisis facing the financial markets, H.R. 1424 contains a tax package that extends expiring tax provisions, including the biodiesel tax incentive.
Specifically, H.R. 1424:
- Extends the biodiesel tax incentive for one year through Dec. 31, 2009. The incentive is currently set to expire on Dec. 31, 2008.
- Provides that all biodiesel, regardless of feedstock used to produce the fuel, qualifies for the $1 per gallon biodiesel incentive. Currently, biodiesel produced from yellow grease is eligible for a 50 cents per gallon tax incentive.
- Closes the so-called "splash-and-dash" loophole. Splash-and-dash is where foreign finished fuel is sent to the U.S.; splash-blended to claim the tax incentive; and then shipped to a third country for final use. There is clearly no energy or tax policy justification for these transactions, and it has been long-standing NBB policy that the splash-and-dash loophole should be closed. The legislation approved by the Senate provides that effective May 15, 2008, fuel produced outside the U.S. for use outside the U.S. does not qualify for the biodiesel tax incentive.
- Properly defines the $1 renewable diesel tax incentive to exclude co-processed renewable diesel.
The President has expressed support for the legislation, and is expected to sign the bill into law in the very near future.
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“Financial Times” Features NBB on Hypocritical EC Investigation
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The "Financial Times" in September ran a story highlighting the National Biodiesel Board’s role in defending the U.S. biodiesel industry against false and disingenuous complaints by the European Commission.
In response to the European Commission’s “anti-dumping” investigation earlier this year, the article said, “A transatlantic trade dispute over biofuels has escalated, with the US biodiesel industry accusing European companies of hypocrisy for protesting against subsidised fuel that they are themselves importing.
“But the US National Biodiesel Board rejects the allegations. In a submission to the Commission, seen by the FT, the board says that rather than unfair competition from the US, the European industry is suffering from overinvestment in capacity, rising prices of feedstocks such as rapeseed oil, and the removal of a tax exemption for biodiesel in Germany, one of its main markets. The board also says several signatories to the complaint are importing fuel from the US.
“Manning Feraci, vice-president of federal affairs for the US National Biodiesel Board, said: ‘Not only does the European Biodiesel Board’s case lack merit, it is disingenuous and hypocritical that several of the European biodiesel companies involved in filing the complaints are the very entities actively involved in the trade of US biodiesel.’”
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Hurricanes Affect Some Houston Biodiesel Companies, TxLED Waiver Enacted
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In the literal wake of hurricane season, the National Biodiesel Board has taken stock of its Texas Gulf members and has found that some were adversely affected while others sustained only minor damages. Those receiving minor damages reported being back up and running within days of the hurricanes.
As a result of fuel disruptions caused by these hurricanes, Environmental Protection Agency Administrator Stephen Johnson has waived the requirement that Texas Low Emission Diesel (TxLED) fuel be sold in the eastern portion of Texas.
Many new biodiesel producers have built in the Houston and Galveston Gulf area in the last few years. The majority of plants NBB spoke to are up and running again, and sustained only minor damage, if any. Renewable Energy Group held its grand opening for its Houston-area location just days before Hurricanes Gustav and Ike, but fortunately it fared very well and biodiesel production was able to begin again just a couple days later.
Other plants did sustain more damage and faced some disruption. The Houston ship channel was inaccessible making full operation impossible for some biodiesel businesses. One plant reported simply problems getting trucks in and out. Sadly, there has been at least one report of a plant still inoperable.
Some producers said the problem was not with any damage, but more with the hurricanes having a negative impact on the market, as fuel buyers have higher priorities, such as clean-up, than buying fuel currently.
Some plant representatives have said that they were able to come to the aid of others and provide biodiesel when diesel was harder to come by in the weeks following the hurricane.
Texas' Gulf biodiesel operations are significant. Not only does Texas have the largest biodiesel production capacity, but its Gulf operations address various biodiesel markets. Please join the NBB in extending well wishes, or any support possible, for those it has not heard from. The NBB admires that overall the biodiesel industry in Texas continues to stand strong despite an uncontrollable natural disaster.
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National Biodiesel Board Opens "Green" Building
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It was a beautiful fall day when the National Biodiesel Board opened its new "green" headquarters in Jefferson City, Mo. About 150 people attended the grand opening – including some who were curious to see the building’s many eco-friendly features.
"Our industry plays a critical role nationally in meeting our energy needs, creating thousands of green jobs and millions of gallons of clean burning fuel," said Joe Jobe, NBB CEO. "Our rapid industry growth was reflected in our staff growth, prompting the need for new headquarters."
The new office houses 17 NBB employees. The NBB completely renovated the building from the ground up with eco-conscious practices, such as carpet made from recycled materials, solar-powered parking lot lights and nontoxic paint. The building also has many technological capabilities, such as worldwide video conferencing.
Since its 1993 founding, the NBB has been located in Missouri. Missouri's commitment to the NBB was apparent by the presence of some heavy hitters at the opening including Missouri Governor Matt Blunt, U.S. Rep. Kenny Hulshof and Jefferson City Mayor John Landwehr. As a major farming state, Missouri dignitaries praised farmers for their efforts. Rep. Hulshof said, "Never underestimate the ingenuity of the American farmer, who can provide both food and fuel from right here in the heartland, while cleaning up the air we breathe."
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It's Not Just the Fuel That's Green at Bently
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Motorists who want to fill up with cleaner burning, domestically produced fuel have a new option in Nevada. Bently Biofuels, a biodiesel producer and member of the National Biodiesel Board, on Oct. 1 opened a new retail pump outside its plant gates in Minden, Nev., 10 miles east of South Lake Tahoe.
The Bently Biofuels Outpost offers B99 (99 percent biodiesel), B20 (20 percent biodiesel) and B5 (5 percent biodiesel). Blends of 10 percent and 85 percent ethanol are also available for gasoline consumers.
The fueling station is unique in that it has applied for LEED silver certification, a prestigious green building designation. Features include outdoor lighting that uses LED bulb technology, which reduces energy consumption up to 70 percent and reduces light pollution in the night sky. Solar tubes were installed in the restrooms to eliminate the need for daytime lighting along with flush toilets that reduce the amount of water consumed per use. Furnishings include cabinets made of fast-growing bamboo plywood and recycled countertops.
“We believe that this is the model for biofuels stations as we move into a greener, more sustainable future,” said Don Bently, owner of Bently Biofuels. “As the makers of an eco-conscious fuel, we’re big proponents of being sustainable from planting the first seed to filling the tank, and our station is a part of that process.”
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Cat Approves B20 for Compact and Mid-Range Industrial Engines
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Caterpillar last month approved the use of B20 biodiesel – 20 percent biodiesel/80 percent standard diesel -- across its range of compact and mid-range engines. A statement from Caterpillar said the company believes the move to higher percentage blends makes approval of this fuel source a strategic market advantage for both original equipment manufacturers and end users.
Addition of these engines to the B20-approved product line follows successful testing of higher percentage blended fuels in a number of installations. Results of those tests indicate trouble-free operation. Biodiesel used in B20 blends must meet the most current version of ASTM D6751 or EN14214. The final B20 blend should meet the minimum requirements of the upcoming ASTM specification for B5-B20 blends.
"This announcement further confirms Cat's commitment to its industrial customers by bringing the broadest range of biodiesel-compatible engines to market," said Mike Reinhart, Cat industrial engine marketing manager. "These engines join the previously B30-approved C7ACERTthrough C32 ACERT and our 3400 and 3500 series. Cat industrial engines provide customers who want the flexibility to utilize a wide variety of fuels the confidence to use them in numerous industrial applications. Biodiesel that meets industry quality standards can be good for the environment and for our customers."
The engine types eligible include the C0.5 through C2.2 Tier-4 Interim (11-66 hp), the C4.4, C4.4 ACERT and C6.6 ACERT (72-275 hp) Tier-3/Stage3A-compliant engines.
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NREL CSFT Training Sessions Upcoming
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The National Renewable Energy Laboratory has held two training sessions to teach the correct methodology regarding the Cold Soak Filtration Test. There will be further training provided by Brent Mackin of Intertek in the following weeks. More specifics regarding the location and dates of the testing will be announced on the NBB Web site. To view a video of the current CSFT methodology, go to http://www.biodiesel.org/resources/fuelqualityguide.
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NBB Creates Washington, D.C. Communications Position
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When the going get tough, the tough get going and the biodiesel industry has stepped up to the challenges. The National Biodiesel Board has made progress combating many of the inaccuracies that arose in the last year, and will continue to fight the battles that will help advance renewable, sustainable fuel to the market.
To that end, the organization has added public relations representation in Washington. In order to step up focus on communications that directly affect federal legislative issues, the NBB is pleased to announce that Michael C. Frohlich has joined as Washington, D.C. Director of Communications. This position expands the DC Office. It also expands NBB’s existing communications efforts, which are based at the headquarters in Jefferson City, Mo., with Director of Communications Jenna Higgins Rose and Communications Specialist Amber Thurlo Pearson.
Frohlich (pictured) has six years of communications experience in Washington, D.C. Frohlich served as Communications Director and Chief Spokesman for U.S. Representative Randy Neugebauer (TX-19). In Neugebauer's office, Frohlich worked in-depth with local and national media on energy and agriculture issues.
Chico Matiella was also recently hired as NBB's Washington DC legislative assistant. His duties include research projects, addressing members' questions about federal policy, official correspondence, and assisting in monitoring federal biodiesel activity. Matiella started with NBB as an intern in May of 2008, and is now full-time staff.
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The Early Bird Gets the Better Rates for NBC '09
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Register now for the National Biodiesel Conference & Expo to save $100 or more. The Early Bird registration, www.biodieselconference.org, ends Nov. 14. The 2009 conference will be held in San Francisco, Feb. 1-4, 2009.
The National Biodiesel Board's "Leading.Change.Now"-themed event will again feature renowned speakers, valuable educational seminars and exciting networking opportunities. New this year, in addition to the traditional educational tracks of Technical, Regulatory, Markets/Users, Production, Petroleum, and Original Equipment Manufacturers, there will be a Sustainability track.
For detailed information and to register, please visit www.biodieselconference.org.
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2008: An AFV Odyssey; Events and Tours Educate on Biodiesel
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Today, the National Alternative Fuel Vehicle (AFV) Day Odyssey kicks off its biennial celebration dedicated to promoting AFVs and advanced technology vehicles. The National Biodiesel Board is helping to sponsor this event organized by the National Alternative Fuels Training Consortium (NAFTC) headquartered at West Virginia University. This years’ event will also be conducted in partnership with the US Department of Energy (DOE) Clean Cities Program which is celebrating its 15 year anniversary. The event’s goal, and Clean Cities’ goal, is the same: to educate the nation on alternative fuels and energy-efficient vehicles.
The kick-off celebration was today in Nashville; many local celebrations are being held today as well. This fourth annual event is expected to attract over 50,000 attendees nationwide. Events will include ride-and-drives, vehicle displays, and workshops. Visit www.nationalafvdayodyssey.org/ for more.
A separate tour is now underway helping to educate on biodiesel. The second annual National Clean Air Green Tour (pictured) is traveling through 47 states in six months to educate consumers on the latest advances in sustainability. Launched on June 15, the 2008 tour features a 40-foot biodiesel powered motor coach equipped with solar power charging. The bus, which is running on a B20 biodiesel blend (20 percent biodiesel, 80 percent petroleum diesel), will visit 120 cities and cover more than 50,000 miles.
At each stop, local residents can visit the Clean Air Green Tour to get hands-on experience with well-known brands that support environmental awareness and receive information on ways to maintain a green lifestyle. The tour hosts service activities along the way, such as adopting highways. In many cities, the tour stop is at a Lowe’s home improvement store.
"We know the importance of reducing emissions in the air; it is important for consumers to know they can make an easy adjustment to protecting our environment and feeling good about it by using biodiesel the next time they fill up,” said Jim Paar, director of Full Motion Marketing, the tour organizer. “We love the way our motor coach runs when using biodiesel."
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