CALIFORNIA’S BIODIESEL INDUSTRY TRADE ASSOCIATION



First Annual Conference a Big Hit


CBA's first annual California Biodiesel and Renewable Diesel Conference succeeded beyond our expectations! CBA is already looking forward to next year's conference and to working with our new members in 2012. Details on this important event in the life of our industry can be found on the About page.




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CALIFORNIA POLICY ISSUE UPDATES


CBA is engaged in efforts in Sacramento in the following major policy areas:

EMISSIONS REGULATIONS


On October 4th, the California Air Resources Board (ARB) issued its Biodiesel Regulatory Guidance. The guidance document follows months of discussion between the ARB and biodiesel stakeholders regarding ARB's biodiesel/renewable diesel regulatory process. The document clarifies ARB's existing policy for blends above B5 and establishes guidance that ARB is unlikely to regulate blends up to B5 for the next five years while it continues testing and that ARB will continue to work on blends of B6 and above, which it expects to issue regulations for in late 2012.

CBA recognizes and appreciates this ARB action and will remain actively engaged with ARB as they continue testing and development of the biodiesel regulations. CBA is committed to safeguarding the use of all blends of biodiesel in California and will work to make sure that once new regulations come out in 2012, higher blends are able to make their full and much-needed contribution to California's carbon reduction goals.

CALIFORNIA ENERGY COMMISSION FUNDING


The grant solicitation (PON-11-601) for biofuels production facilities has been issued. Funding will be available for new, low carbon facilities, or for projects that lower the carbon intensity of fuels produced at existing facilities. Projects must demonstrate economically competitive yields and lower GHG potential than Low Carbon Fuel Standard (LCFS) pathways for corn ethanol or soy biodiesel. Deadline to submit proposals: February 21, 2012 no later than 4:00 pm. Click here for information on this solicitation and new solicitations as they are issued. A soliciation for $3.14 million for bulk terminal storage and blending facilities is expected to be released soon.

LOW CARBON FUEL STANDARD (LCFS)


ARB: "On December 29, 2011, the U.S. District Court for the Eastern District of California issued several rulings in the federal lawsuits challenging the low carbon fuel standard (LCFS). One of the court's rulings preliminarily enjoins the Air Resources Board (ARB or Board) from enforcing the regulation during the pendency of the litigation. While ARB has filed an appeal and will seek an order staying the preliminary injunction, as long as the injunction remains in effect, ARB will respect the Court's ruling and withhold enforcement of the LCFS requirements. To the extent that stakeholders have requested additional fuel pathways or additional or revised biofuel producer registrations, or the Board has requested modifications to the regulation, ARB will continue its stakeholder and rulemaking processes. This includes the posting of these new or modified fuel pathways in response to stakeholder requests."

UST REGULATIONS


On Friday, November 18th, the State Water Resources Control Board issued a notice and rulemaking documents to amend the current underground storage tank regulations applying to the storage of biodiesel in double-walled tanks (containment and components). The proposed regulation would allow UST owner/operators to store biodiesel provided they can show both the UL listing for petroleum diesel (until such time as a UL listing for biodiesel replaces it) and written materials compatibility documentation for biodiesel from the equipment manufacturer for their UST equipment. It would begin in June of 2012 and replace the variance that has been in place for the last 3 years.

The Water Board cited the fact that the Underwriter's Laboratory (UL) testing and approval process can take years and that the delay in UL material compatibility testing and approval is reducing the use of alternative fuels, like biodiesel, that are necessary to lower GHG emissions and comply with AB 32's carbon reduction goals. The Initial Statement of Reasons states that the Water Board "wishes to provide an alternative to UL's material compatibility testing and approval to facilitate the use of alternative fuels in California and reduce GHG emissions, while also minimizing the risk of UST failures and, therefore, harm to water quality."

CBA will remain actively engaged with the Water Board throughout the process to ensure a smooth transition from the current variance process and will publish updates in this newsletter. All relevant rulemaking documents are located on this State Water Board webpage.


Biodiesel is an advanced biofuel made from waste or virgin vegetable oils or animal fats. It is a sustainable, cleaner-burning, diesel fuel
replacement that meets strict quality specifications. Biodiesel derived from waste can reduce greenhouse gas emissions up to 80%.