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U.S. Navy Calls for Broad Use of Biodiesel at Navy/Marine Facilities
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The world’s largest user of diesel fuel is taking another proactive stance in reducing its consumption of petroleum. Recently, the U.S. Department of the Navy announced a new policy that will lead to greater use of biodiesel. Principal Deputy Assistant Secretary (Installations and Environment) Wayne Arny issued a memorandum that establishes a policy that most U.S. Navy and Marine non-tactical diesel vehicles shall operate on a blend of 20 percent biodiesel fuel (B20) no later than June 1, 2005.
“B20 was an ideal choice for the Navy and Marines because it’s easy to use, performs as well or better than diesel and is a safe, sensible way for us to meet our federal requirements to reduce petroleum consumption,” said Don Schregardus, Deputy Assistant Secretary of the Navy (Environment). “But we decided to take it a step above and beyond what the military is required to do. By bringing B20 to virtually every Navy and Marine base nationwide, we are significantly decreasing reliance on fossil fuels.” Reducing dependence on foreign oil is something Chief of Naval Operations Admiral Clark directed this past August, and more recently in his CNO Guidance for 2005 for the fleet.
The January 18, 2005 Navy memo provided guidance for biodiesel use including that it can be supplied by the Defense Energy Support Center (DESC) and used where adequate fuel tanks are available. The policy does not apply to tactical military equipment or deployable commercial equipment intended to support contingency operations.
The U.S. Navy, Army, Air Force and Marines all use B20 at different bases and stations throughout the country, including Ventura County Naval base in Port Hueneme, Calif., Navy Public Works Center San Diego, CA; Navy Public Works Center Washington, DC; Navy Public Works Center Pearl Harbor, HI; Naval Air Station JRB Willow Grove, PA; Commander of Navy Region Northwest, Everett, WA; and Fleet and Industrial Supply Center Puget Sound, Bremerton, WA.
Click here to view the Navy’s B20 announcement.
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Efforts Continue to Extend the Biodiesel Tax Incentive, Create RFS
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The biodiesel issue is still on the front burner in Washington, D.C., as the National Biodiesel Board (NBB) is working toward extending the biodiesel tax credit, which expires at the end of 2006. The tax incentive was made a reality last fall, with strong support from Senate Finance Committee Chairman Charles Grassley (R-IA) and Senator Blanche Lincoln (D-AR). Backers of the extension hope to see it extended through 2010. The extension legislation will also be strengthened if the tax incentive codifies into federal law an exclusive status for the current 11 feedstocks listed in the stature.
Other pieces of biodiesel legislation this session include three Renewable Fuels Standard bills, one of which is in a package that also establishes a tax credit for small biodiesel producers, allowing producers that make up to 60 million gallons of biodiesel per year to be eligible for a ten-cent-per-gallon tax credit.
Click here for more information on the various biodiesel and RFS bills introduced.
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Biodiesel Tax Incentive Update
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IRS Forms Available on NBB Web Site
The IRS has published updated versions of Form 637 and Form 720. Form 637 is the registration application that all biodiesel producers and blenders must complete. Form 720 is the Quarterly Federal Excise Tax Return. Entities utilize this form to report and pay federal excise tax. The updated form provides a line to report sales or removal of biodiesel mixture other than removal at a terminal rack. (IRS No. 60c) These forms and more information about using them is available at www.biodiesel.org/news/taxincentive/.
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First Renewable-Powered Biodiesel Plant Announced in Texas
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The City of Denton, Texas, and Biodiesel Industries, Inc., dedicated the latest biodiesel plant to join the rapidly growing effort in meeting demand for biodiesel, on March 29. The plant is unique because it is powered by renewable biogas extracted from an adjacent landfill. This is the first renewable energy-powered plant to produce biodiesel.
Speakers at the announcement included Daryl Hannah, actress and biodiesel advocate; Joe Jobe, Executive Director of the National Biodiesel Board and Euline Brock, Denton mayor. “We will be able to resolve some of our major environmental challenges while providing a major service to the public,” said Brock.
The three million gallon capacity plant is a cooperative effort between Biodiesel Industries and the City of Denton. Local restaurants are also included, as their used cooking oil will be collected and used in the operation, along with other local farm-based feedstocks.
The City will fuel its diesel vehicle fleet with B20, a blend of 80 percent diesel and 20 percent biodiesel produced from the facility. The City’s fleet-wide use of biodiesel is estimated to reduce criteria emissions from its vehicles by almost 12 tons per year, a welcome reduction in an area plagued by some of the most polluted air in the nation. This alternative fuel will also be sold through regional distribution channels.
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Santa Monica Switches to Biodiesel for Much of its Fleet
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The city of Santa Monica, Calif., has moved 80 of its heavy duty vehicles and equipment to biodiesel fuel. It is using a B20 blend of biodiesel.
The move is part of the 11-year old Sustainable City Program, promoting alternatively fueled vehicles, an effort that has successfully transformed 70 percent of the city’s fleet to clean-air fuel technologies, according to LA BioFuel. Working with the city’s Environmental and Public Works department, LA BioFuel educated the city about the benefits of biodiesel before the changes were made.
“The leadership role Santa Monica has taken will demonstrate to other municipalities and the public that sustainable fuel is available now,” says LA BioFuel President Joe Gershen.
The environmental attributes of biodiesel and its blends are especially significant for the city’s beach maintenance crew, which relies on diesel fuel for its daily operations and for pressure-washers used to clean the streets and sidewalks of retail districts throughout the city. “This equipment is deployed seven days a week on our beaches and streets,” says solid waste supervisor Wes Thompson. “This change is a huge step forward in making our operations more sustainable.”
LA BioFuel is a company who works with local municipalities and regionally-based businesses to inform, educate, promote, safely distribute and produce biodiesel, with the goal of increasing regional production and distribution infrastructure. They offer public outreach and educational programs along with consulting services in the greater Los Angeles and Southern California area.
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Two More Terminals Add Biodiesel
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Two new petroleum terminals now carry biodiesel: one in Alton, Ill. and another near Switz City, Ind. A dozen terminals now carry or will soon carry biodiesel nationwide, which streamlines the distribution process and improves availability. Biodiesel will become a part of the rack system and will be injection-blended through an automated system right along with petroleum diesel.
A special event March 17 marked the beginning of the new biodiesel-blending facility in Indiana, located at Countrymark Co-op’s Greene County terminal, near Switz City, Ind. This terminal serves fuel retailers in south central Indiana and is the third fuel terminal in Indiana with this unique blending capability.
A first for Illinois, a rack-injected biodiesel terminal was celebrated March 25 at Hartford Wood River Terminal (HWRT) Oil Company, LLC, in Hartford. Scott Hughes, Regulatory Director of the National Biodiesel Board was on hand to speak at the accompanying press conference.
Countrymark Co-op’s Jolietville, Ind., facility became the first terminal in the nation to offer biodiesel-blended fuels. Peru, Ind., also has a terminal with biodiesel available in northern Indiana.
For more on biodiesel distribution, visit www.biodiesel.org/buyingbiodiesel/guide/.
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Tennessee Co-op Offers First for Tennessee
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The Sevier Farmers Co-op, in Sevierville, Tenn., is now selling all its on-road diesel at its flagship location as a B5 blend of biodiesel. Sevier Farmers Co-op serves general public and fleet customers, with a pump for each. This location is at 321 Main St. in Sevierville, where about 2,000 member fleets and individual customers fuel up. A supplier only offering diesel fuel with biodiesel blended in is a first in Tennessee, as well as most of the nation.
The East Tennessee Clean Fuels Coalition oversees the region in which Sevierville is located.
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Drive Clean and Green Across Missouri
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April 4-8 will see a fleet of vehicles driving cleaner and greener across the state of Missouri. The Missouri Department of Natural Resources is coordinating an alternative fueled caravan with the drive to educate school and university students and others about the option and benefits of using these vehicles.
“Drive Clean and Green Across Missouri” is hosted by the Missouri Department of Natural Resources’ Energy Center, St. Louis Regional Clean Cities and Kansas City Clean Cities coalitions.
This caravan of alternative fueled and hybrid vehicles will start on the east side of the state at the St. Louis Science Center. Other stops include the Gateway Arch, Wentzville General Motors plant, universities and schools, the state Capitol, and the Kansas City Discovery Center.
The crowds will learn of benefits ranging from fuel economy, saving money and reducing oil imports to reducing greenhouse gas emissions.
Vehicles include a biodiesel-fueled Jeep Liberty; hybrid Chevrolet Silverado, Toyota Prius and Honda Insight; a clean natural gas bi-fuel Chevrolet Silverado; propane bi-fuel Ford 150 series pick-up truck; and E-85 ethanol Chevrolet Avalanche, Dodge Ram and Ford Taurus and Explorer.
The National Biodiesel Board will sponsor the event together with the National Ethanol Vehicle Coalition, Missouri Soybean Association, Missouri Corn Growers Association, Laclede Gas, Missouri Propane Gas Association and various automobile manufacturers and cosponsors.
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National Biodiesel Day Celebrated in March
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Farmers, engineers, environmentalists, and biofuel enthusiasts had reason to celebrate in March. These leaders commemorated National Biodiesel Day on March 18, which is the birthday of Rudolf Diesel, the inventor of the diesel engine. Festivities included a birthday party hosted by the Vermont Biofuels Association at the Statehouse in Montpelier, Vt. for state legislators and other supporters.
President Bush led up to this industry holiday the week before by showing his support for efforts afoot in Washington to encourage the use of biodiesel. In mid-March, he said one objective of energy policy “…is to diversify our energy supply by developing alternative sources of energy.” The President went on to say “Congress needs to continue strong support for ethanol and biodiesel. We're going to continue to figure out ways to grow our way out of dependence on foreign oil. Someday somebody is going to walk in and say, well, we got a lot of soybeans, Mr. President. And we're less dependent on foreign sources of oil because of biodiesel.”
The biodiesel industry chose Diesel’s birthday as National Biodiesel Day to honor him for his foresight in recognizing the valuable role of vegetable oil based fuel. In the late 19th Century, Diesel ran early versions of his engine on peanut oil. In a 1912 speech, Diesel said “the use of vegetable oils for engine fuels may seem insignificant today, but such oils may become, in the course of time, as important as petroleum and the coal tar products of the present time.”
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Correction to March Biodiesel Bulletin
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In the March 2005 NBB Biodiesel Bulletin, Indiana Soybean Board Executive Director Chris Novak’s name was misspelled. NBB apologizes for this mistake.
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Upcoming Events
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- 6th Annual Environmentally Preferable and Recycled Products Trade Show
April 6-7
Ontario Convention Center
Ontario, California
www.ciwmb.ca.gov/BuyRecycled/Events/TradeShow/
- National Assoc. of Fleet Administrators (NAFA), Inc., FMI Conference
April 10-13
Grapevine, TX
www.nafa.org
- 27th Symposium on Biotechnology for Fuels and Chemicals
May 1-4
Denver, CO
www.eere.energy.gov/biomass/biotech_symposium
- 11th Annual Clean Cities Conference & Expo
May 1-4
Palm Springs, CA
www.afvi.org/palmsprings/
- NBB Board Meeting
June 13-14
Washington, D.C.
- Solar Energy International Biodiesel Workshop
June 27-July 1
Boulder, CO
www.solarenergy.org/workshops/workshop.php?id=18
- 21st Annual International Fuel Ethanol Workshop & Expo
June 28-July 1, 2005
Kansas City Marriott Downtown & Kansas City Convention Center
Kansas City, MO
www.fuelethanolworkshop.com
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