www.flexiblemagazin.com | FLEXIBLE MAGAZIN | JANUARY | 1 Remembering Beth Jo Calabotta

example of using renewable energy to displace fossil fuels. Leader, Scientist, The solar energy that powers Mentor & Friend agriculture can also provide a substitute for petroleum if we I first came to know Beth through follow the examples in nature. National Biodiesel Board meetings Vegetable oils store solar energy where she represented Monsanto. I was instantly struck with her knowl- in a liquid form that can be edge and, just as importantly, her used without adding carbon to strength of conviction and her ability the atmosphere. The question to organize and motivate people. that remained was how can we It was through the National Biodiesel produce more of this renewable, Foundation in 2008-2009 that Beth re- carbon-neutral fuel? alized how answering the sustainability eth Jo Calabotta was a Beth knew this was a critical and indirect land use issues would be essential to the long-term success of transforming force for question and she led others to use the best available science to biodiesel. She kick-started the work improving the scientific through coalition building and fund- B find the answer. Beth encouraged raising; bringing in strong partners like understanding of the sustainability experts from disparate disciplines impacts of biodiesel. Beth lost the National Corn Growers Association to work together to quantify along with various state corn boards. her battle with metastatic breast the land available to produce Through her vision and leadership, cancer in 2017. food and fuel. By understanding the California Air Resources Board the increasing demand for food Beth was highly respected for her would come to accept biodiesel’s true around the globe, she started score on carbon emissions. Her work expertise in chemical engineering by solving societies most critical also showed how the negative food and especially for her knowledge of need—the need for protein. to fuel argument against agricultural the ag industry. She became a true based biofuels did not apply to Farmers are steadily producing leader as a director of the National biodiesel. Biodiesel Foundation and inspired more protein and using fewer acres by increasing yields and Her passion was not limited to big the foundation to coordinate policy issues. Beth could often be seen planting more efficient crops. industry and academic experts. doing the little things, like working Seed-bearing plants are especially Beth was positive that biodiesel fundraising auctions or selling 50/50 good at storing solar energy. tickets for a worthy industry cause. and agriculture could achieve When we harvest seeds for I would often pass through her powerful things. As a scientist, protein, we also get more fat than she knew that it was not enough home city of St. Louis and we’d meet we can eat. This excess fat is a gift at the airport for an informal dinner to simply hope for better things. of stored solar energy that can She knew that understanding the where she would continue to share fuel our economy as a feedstock her passion for the industry. She would science would help businesses and for biodiesel. talk and I would listen, taking copious policymakers avoid pitfalls. notes. Even when her cancer returned, It took the leadership of Beth She also knew that understanding I would visit her in the hospital, Calabotta for this story to be notebook in hand of course, and leave the agricultural economy and uncovered in scientific literature potential environmental impacts with even more notes. I never passed drawing on decades of ag industry up a chance to learn something from would dispel myths created to data. The National Biodiesel her. hamper the advancement of Foundation is following and biofuels. Beth is very much missed by the building upon Beth’s example to industry and those who worked with The path to making our society uncover data that illustrates the her. To honor her dedicated service, the and our economy more sustainable elegant power of natural systems. NBB has established the Beth Calabotta is to follow natural systems that Sustainable Education Grant.

are replenished and renewed Don Scott Tom Verry continually. Biodiesel is a prime Director of Sustainability, NBB Director of Outreach & Development , NBB

2 Biodiesel Success Stories

BiodieselSUCCESS STORIES

2| Remembering Beth Jo Calabotta |Don Scott & Tom Verry, National Biodiesel Board

5| Biodiesel: Bright Things Ahead

6| It’s Good for America | Chuck Grassley, United States Senator, IA

8| Like Taking 175,000 Cars Off The Road | Costa Constantinides,New York City Councilman

10| Exceeding Expectations| Earl Christensen, Senior Scientist, National Renewable Energy Laboratory

12| NBB Opens Markets | Donnell Rehagen, CEO, National Biodiesel Board

14| Nebraska Grows Biodiesel Markets | Victor Bohuslavsky, Executive Director, Nebraska Soybean Board

16| Meeting Government Sustainability and Emissions Goals, Mike Youngerberg Director of Product Development & Commercialization, Minnesota Soybean Growers Association

18| Biodiesel Short Stories

20| Wanting to Clean-up the City| Rocco Lacertosa, CEO, New York Oil Heating Association

22| Easy Solution to Becoming Green | David Harris, Director of Transit and Fleet Management Harvard University

24| Defense Against Natural Gas | Charlie Uglietto, Owner, Cubby Oil

26| Helping Schools Be Progressive | Joe Biluck, Director of Technology (Retired), Medford NJ Schools

28| Better Air Quality in New York| Keith Kerman, Deputy Commissioner New York City Department of Citywide Administrative Services

30| Biodiesel Has a Seat at the Table |Tyson Keever, CEO, SeQuential

32| Three and a Half Units of Energy Out for Every Unit Put In | Pat Black, Owner, HERO BX

34| Are We Better Off Using More Fossil Fuel? | Gene Gebolys, CEO, World Energy

36| We Switched to Biodiesel, Never Looked Back | Tim Fitzgerald, Director Fleet Management, DC Water

38| Biodiesel Fits Right Into What We Do | Patti Earley, Fleet Fuels Operations Specialist, Florida Power & Light Information gathered from personal interviews.

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Biodiesel Success Stories 3 4 Biodiesel Success Stories Biodiesel: Bright things ahead

hat modestly began as biodiesel. You’ll find stories of government servants a patent application in who have championed its use and retailers and marketers who bring biodiesel to the public. 1937 Belgium by Georges All of these stories have one thing in common: the Chavanne for a “Procedure embracing of biodiesel to solve specific problems, forW the transformation of vegetable oils while at the same time marshalling in a new for their uses as fuels” using a process stewardship of our environment and our future. now called transesterification, has since We face a time when traditional petroleum become a multi-billion industry that diesel is too carbon intensive to be able to satisfy regulators, policy makers and the international touches so many aspects of American life. community as they struggle to meet desired Biodiesel, the eventual result of that patent greenhouse gas levels. Biodiesel, with its carbon idea, serves in the on-road transportation, neutral long-term sustainability, is leading the way marine and home heating industries. With its forward. advantages, instantly obvious to even the most Of course, these stories are just snapshots as recent acquaintance of biodiesel, it provides biodiesel’s influence continues to grow. There are significant carbon reduction, improved operational multiple states with mandates requiring the use characteristics, domestic jobs, and with its source of biodiesel in on-road transportation or in home of renewable agricultural products, long term heating. Thousands of children are brought to and sustainability unmatched by the fuel it naturally from school by biodiesel-powered buses. Tens replaces. of thousands of people go to work each day to This publication contains stories shining the light biodiesel created jobs. Millions of homes are heated on individuals and organizations that have been each winter with biodiesel blended into their fuel. instrumental in creating the biodiesel industry; in conducting research and development to ensure It seems as if Monsieur Chavanne was that it performs optimally and continues to improve; looking into our future…and saw bright of entrepreneurs who have ventured forth into the unknown and continue to add to the production of things.

Biodiesel Success Stories 5 Legislative Champion

It’s Good for Jobs It’s Good for the Environment It’s Good for National Defense

iodiesel producers and Grassley, a family farmer himself, to have the tax credit for biodiesel marketers can trace much has been proud to bring his legendary to become a viable, mature industry, of their success to the hard tenacity to bear for biodiesel. “There is and every time it sunsets, we have to work of veteran U.S. Senator an abundance of soybeans in my state, reauthorize it. It got reauthorized in this Chuck Grassley. and the value added beyond exports last deal we did, but only for 2017. Now B is very important to our economy,” here we are in 2018, and we ought to The Iowa Republican has made the he said. Biodiesel also helps reduce have had it authorized for two or three biodiesel industry a chief concern for U.S. dependence on foreign sources years so that the industry could depend much of his 37-year tenure on Capitol of energy and improves national on it. We need some certainty so that Hill. He led the way in 2004 and 2005 security. “The fuel is clean burning we can expand production.” when Congress passed two landmark and low-carbon, so it’s very good for measures that have helped spark the the environment, and you create good Changes in U.S. petroleum industry’s growth to 2.9 billion annual paying jobs in rural America, where the production have only made his job gallons and beyond: the Renewable Fuel small towns often don’t have that,” he harder. Since the Oil & Gas producers Standard (RFS) and the Biodiesel Tax said. began using hydraulic fracturing, aka Credit. fracking, to increase yields, production Since the RFS was established in has soared and the United States has While there have been challenges 2005, Grassley has worked hard to make regained its place as a global petroleum with both measures through the years, the law more effective for biodiesel by powerhouse. Concern about energy the overall effects of both have been raising the required volume obligations security was so diminished by late 2015 highly favorable. The RFS has created (RVOs) for advanced biofuels and that Congress lifted a ban on crude oil financial incentives for the blending biomass-based biodiesel. exports that had been in place for 40 of biodiesel with petroleum, while the years. biodiesel tax credit has reduced the He has also worked to preserve market price of biodiesel and helped the the biodiesel tax credit and resuscitate “Back in the 1980s we thought we fuel compete. it whenever it has lapsed. “We need weren’t going to have any more natural

6 Biodiesel Success Stories Chuck Grassley U.S. Senator, IA

gas and petroleum in the United States, under the RFS. Grassley last year I’m confident that the Renewable Fuel but fracking has really changed things,” convened a meeting in his office between Standard isn’t harming refineries, that Grassley said. “Five or six years ago we lawmakers and the new EPA chief that other factors are at work, and that the were building facilities to import liquefied helped turn the tide and save the RFS. “I RFS law is working as Congress intended. natural gas, and now we’re using those told Administrator Pruitt that supporting Once these facts are known, there ought same facilities to export it. ” biofuels isn’t just good policy, it’s also to be an end to the misleading rhetoric what President Trump promised,” the blaming the RFS.” The powerful petroleum lobby is senator told reporters after the meeting. constantly pushing back against the RFS “I reiterated what the President told Grassley sees a bright future for and the tax credit, but the Iowa senator me personally and what he told Iowans biodiesel. “It’s good for agriculture. tirelessly defends biodiesel and carves during the campaign, that he’s for It’s good for jobs in rural America. It’s out every advantage he can get. “Big biofuels and for a strong RFS.” good for the environment. It’s good for Oil has always been a strong voice in national defense. When it all adds up, Congress and they don’t want to market Grassley also works to combat everything about it is beneficial, and any products they don’t control, so they misinformation about renewable fuels. there are no known negatives. So like the have been a big obstacle to tax credits When Philadelphia Energy Solutions (PES) 1930s tune that Campbell’s Soup used to and things of that nature,” he said. “It has and other refiners recently blamed the sing, it’s mmm, mmm, good.” just been a constant fight.” RFS for their financial struggles, Grassley took action. “After I heard The assault on biodiesel intensified that the Renewable Fuel Standard in 2017 with the presidency of Donald was being blamed for the financial the year the Renewable Trump who placed Scott Pruitt in charge troubles of some refineries, I 2007 Fuel Standard was expanded of the U.S. Environmental Protection wanted to know more,” Grassley Agency (EPA). The petroleum industry said at the time. “So I asked my to include biodiesel stalwart quickly moved to curtail staff to get to the bottom of the renewable volume obligations (RVOs) situation. After reviewing the facts,

Biodiesel Success Stories 7 Policy

20 percent in 2034, that will be like taking 175,000 cars off the road

olicymakers in New York City has achieved tremendous success in his content of all heating oil sold within the are determined to reduce ongoing campaign to increase biodiesel city to 5% effective in 2017. Over the harmful emissions from en- usage in the nation’s largest city. next 17 years, the standard will increase ergy sources, and they have incrementally, reaching B20 in 2034. made biodiesel a linchpin in The City Council’s landmark achieve- Pthat effort. ment was the enactment in 2016 of Biodiesel is an apt solution for New Intro. 642, a local law he introduced that York because heating oil provides winter New York City Council Member will eventually make B20 Bioheat® the warmth in many buildings and homes Costa Constantinides, who represents city’s standard for heating oil. Passed in in a densely packed environment. Local a portion of the Borough of Queens, 2016, the law increased the biodiesel policymakers have been quick to see the health and environmental benefits of incorporating clean-burning biodiesel in the fuel supply.

Constantinides is passionate in his support. “I look at biodiesel as one of the main solutions in New York City to reduce emissions,” he said. “Going to a 5% biodiesel blend was the equivalent of taking about 40,000 cars off the road. When we go to 20% in 2034, that will be like tak- ing 175,000 cars off the road. As we work to go green and fight climate change, this is a huge deal. We are burning less petroleum by replacing it with fuel that can emit up to 90% less greenhouse gas and 10% less particulate matter.”

While climate change is the issue that gets the headlines, health is another critical issue for Constantinides and his allies in city government. “Particulate matter is what gets in your lungs and causes asthma. We have communities that have large power plants and

8 Biodiesel Success Stories other environmental detriments,” he said. “Creating policy that reduces our reliance on traditional petroleum and makes us greener is a big win in our fight to make our communities healthier and less afflicted with asthma.”

The benefits don’t stop there because biodiesel can also bring down the cost of indoor heating by expanding the market for fuels. “We can keep more money in people’s pockets from the purchase of biodiesel, which has been either competitively equivalent to traditional petroleum or less expensive over the last several years,” the council member said.

Biodiesel production also boosts the local and national economies. “We are creating jobs for recycling grease and building markets for waste product from Costa Constantinides soy crops,” Constantinides said. “We are building a green economy with biodiesel New York City Councilman that will endure and improve New York City’s tax base. From all sides, whether from dollars and cents, job creation, emissions reduction, or health, biodiesel standards will maximize our emissions There have been no issues with supply has been an important part of making reduction and fight climate change.” but the city has built “circuit break- our city greener.” ers” into the legislation to suspend the Environmental and health organiza- biodiesel requirements in the event of a Support for biodiesel has been strong tions such as League of Conservation supply crisis or a price blowout. There is among New York City policymakers for Voters, the Environmental Defense also a seven-year gap before the switch years. The city had previously moved to Fund, and Empire Clean Cities have to B10 to allow equipment manufactur- B2 heating oil in 2012, and when Intro. come out in favor of the city’s biodiesel ers to prepare for the higher biodiesel 642 came up for final consideration in fuel standards. blends. 2016, the City Council passed it by a 47-3 vote. “The only entity that was really Constantinides would like to see against us was the American Petroleum biodiesel powering vehicles of all kinds, By contrast, only Long Island and the Institute,” said Constantinides. “They including New York’s ferry fleet. “If there downstate counties of New York State spent close to a quarter of a million are opportunities for us to push the have joined New York City in adopting a dollars to kill my bill, and it didn’t work. envelope a bit, to continue to be Bioheat® standard. We had environmental groups that were greener and make biodiesel part of that talking about the importance of emis- solution, we’re going to seize those,” Constantinides believes it is important sions reduction and public health. We he said. for the City Council to lead on the had the industry talking environment. “As a city, we’re setting about how biodiesel standards for how much biodiesel is helps build jobs. utilized,” he said. “In adopting these increasing blend levels, we are making The other side tried reduction of lifecycle carbon sure that we are setting a good fuel to spin their version of 86% standard for New York City in the long the story but we stayed emissions by advanced biodiesel term. We are saying that if you are focused on the truth going to sell home heating oil, these are and the facts, and the the standards that we expect. These bill won on its merits.”

Biodiesel Success Stories 9 Research/Science

Exceeding Expectations Earl Christensen Senior Scientist, National Renewable Energy Laboratory

NBB’s quality BQ-9000assurance program for producers, marketers, retailers and labs

10 Biodiesel Success Stories unadditized shelf life as biodiesel from to drop below target levels, you add a Biodiesel has something more saturated like or animal certain amount of additive and mix or fats or frying oils. However, some frying churn it to disperse it and this extends oils are solid at room temperature, so the useful life of the fuel,” he said. “In our been put to there is always this balance between cold readditization study, we achieved over 4 flow and unadditized oxidation reserve,” years of simulated storage with B20, which the test and Christensen explained. was impressive.” “The secondary factor that really plays Christensen’s work is very important to into this is antioxidant additives, and fuel distributors and users. “The fuel users passed with that’s how you get the really long shelf are very interested. I am a lab chemist, life with lower cloud biodiesel (which so it’s valuable to me when people share tends to be more unsaturated), by adding their experiences about what happens in flying colors antioxidants. You tune that composition the field.” with the different types of feedstocks and additives you use.” OEMs also pay close attention. “They arl Christensen, a Senior have a huge vested interest in the quality Scientist at the National Producers of high-quality biodiesel of the fuels going through their vehicles. Renewable Energy Laboratory are adept at adjusting fuel properties They don’t need to be having any (NREL), and his colleagues for the intended applications, and fuel problems based on fuels.” have done extensive testing buyers can generally specify the oxidation Eon biodiesel over the last eight years, and reserve they need. “As long as the B100 “We want to be able to give people the findings have impressed him. “As we met spec, the ASTM specs were originally the tools they need” to trust biodiesel, he did more and more long-term storage designed to provide a minimum shelf life said. “It’s unfortunate that a lot of people testing, I was a bit surprised at how stable of 6 months for B20 or lower blends. All have it in their minds that diesel fuel itself all these recent samples were.” he said. the B20 samples we collected that met is good forever. That’s not necessarily “Today’s biodiesel can be very stable and the 6 hour oxidation reserve spec had a the case, and there might even be some can be stored for a long time, especially minimum predicted shelf life of over one overlooked issues there that might be as a blend, so we have started looking year—that’s some good news. In longer- worth looking into as well.” at even longer storage times and more term storage scenarios, that is where storage scenarios.” you monitor the fuel or use antioxidants Most of his work has been on blends of proactively,” Christensen said. up to B20, but that is changing. “You’re The National Biodiesel Board (NBB) starting to see a lot of interest in blends up has honored Christensen twice for his “If you have fuel going into long-term to B50 and even in applications of B100, achievements. At the Biodiesel Technical storage, the ASTM specifications advise particularly in home heating,” he said. “In Workshop in November 2017, Christensen users that successful long term storage theory, there really shouldn’t be a difficult was named Biodiesel Researcher of requires attention to fuel selection, transition. There might be considerations the Year. Then at the 2018 Biodiesel storage conditions, handling and about materials compatibility for seals that convention, NBB honored him with the monitoring of properties during storage. weren’t designed for these fuels, but for Eye on Biodiesel Innovation award. That goes for either petroleum diesel or a actual combustion, I don’t see too much biodiesel blend,” Christensen said. “One difficulty moving up.” Christensen’s research on relatively has to make sure to get good, in-spec fuel recent market samples of B20 biodiesel for long term storage and smart users Christensen’s work at NREL has given blends indicated B20 meeting today’s utilize antioxidants and other fuel storage him a strong appreciation of biodiesel. ASTM standards had a minimum simulated enhancing additives up front and monitor “I’m entirely neutral on how we reduce shelf life of over one year, with many of the fuel in storage periodically. Even the amount of petroleum we use, but the samples having a simulated shelf life petroleum diesel does not have an infinite from what I’ve seen of biodiesel, I think it of over 3 years. shelf life.” is a really great path for us to supplement our diesel usage in a way that reduces “The oxidation reserve of a biodiesel Christensen’s research helped prove emissions and ultimately gets us all to blend is dependent upon both the the viability of long term storage options where we want to be.” petrodiesel and the biodiesel. For the for biodiesel blends. Users can periodically biodiesel component, the make-up test the fuel’s oxidation reserve, which He believes biodiesel should play of the oil or fat used to produce the naturally goes lower over time, and add a larger role in the energy mix going biodiesel is one important factor. The more antioxidants to extend the fuel’s forward. “It doesn’t take a whole lot of more unsaturated a fuel is the lower the life, which mirrors common practices for energy to make and we’ve got quite a oxidation reserve in general, so biodiesel many petroleum products. “Once you bit of oil to make it from,” he said. “It from unsaturated oils/fats like linseed have a fuel that’s in storage for a while absolutely deserves to grow as far as it oil and fish oil won’t have as long of an and you see the oxidation reserve start can go.”

Biodiesel Success Stories 11 Industry Leadership Group

Strong support helps NBB open markets

NBB’s task “is to knock down barriers and to help provide certainty to our membership,” he added. “The U.S. model of business development and capitalism is well documented to be successful, but without certainty, it is really challenging he National Biodiesel Board Association’s Kenlon Johannes were for businesses to make the right has enjoyed great support promoting the biodiesel vision. “We decisions. Investment in downstream throughout its first 25 years weren’t talking about tax credits, policy blending and infrastructure becomes as it has worked to establish a or state mandates,” Rehagen said, “We highly questionable when the long-term vital, new energy supply and first had to figure out whether technically certainty of your industry is in question.” Tcreate an important market for farmers you could transform soybean oil into fuel. and food producers. Once the determination was made you NBB has gotten better at clearing the could, that started Phase Two. How could obstacles, whether they are technical or “It’s a very proud history that the we commercialize the fuel? What did we environmental. “We have become widely National Biodiesel Board enjoys,” said need to do with OEMs and equipment known experts in environmental policy Donnell Rehagen, NBB’s chief executive manufacturers? for liquid fuels,” the CEO said. “We need officer. “Twenty-five years ago, NBB to be that knowledge base in order to was founded on the principle of turning “There was a huge Phase Two of make arguments from a positive policy excess soybean oil that was on the industry development. Out of that standpoint and convince lawmakers that market into fuel. It was extremely came some attention to policy and biodiesel is good for the environment visionary, and when I speak to groups of regulatory initiatives and the creation and a sound investment of resources. I’m farmers who have been around for many of a framework to support an emerging really proud to be a part of an association of those years, I applaud them for their industry in a challenging industry. The like this that is able to keep its eye on that patience. Through the early phases, they liquid fuel sector is very different from prize and put resources where they need certainly must have wondered whether other energy sectors such as electricity, to be to knock down those barriers.” they should keep putting money into this, which enjoys some certainty in regard to not knowing if there would be a positive cost. We don’t have that in liquid fuels. The ongoing support of the soybean outcome on the back end.” What’s crude oil going to sell for six checkoff has made NBB’s mission weeks from now? Nobody even knows attainable. “It has allowed us to punch There were many years of investment what it’s going to sell for six days from above our weight class,” Rehagen said. “It in pure research and development, now. It’s a very uncertain space that our lets us totally leverage our membership when leaders like the Missouri Soybean biodiesel producers operate in.” dues so that nearly all of that goes

12 Biodiesel Success Stories 1992 the organization that became NBB was founded “We see an industry that is just waiting to burst with its ability to grow and produce more.”

old, we are still the little kid in the family Donnell Rehagen compared to petroleum and ethanol. We CEO, National Biodiesel Board want to get back to where policy is not so on-again, off-again. We enjoy the support of Democrats and Republicans, but we just don’t enjoy the support of enough of to policy work. It’s a great model of bridges to heating oil dealers in the them.” partnership and respect that two Northeast. “Our farmer leaders saw that different industries, farmers and biodiesel a lot of heating oil dealers are just like NBB is also continuing to propel producers, have. They fund us, so we can them. Their businesses have been in the biodiesel technology forward. “The accomplish a lot of great things.” family for generations. They rely on the quality of the product going out today weather for their livelihood. And to hear is much improved, and because of that, When the soy industry established that the heating oil dealers were being we’ve enjoyed more support from engine NBB, the farmers who were paying into put out of business by the competition, manufacturers. But they continue to the checkoff program decided that the that is not lost on the farmers, who saw develop their technology in response to board should advocate from a feedstock- many farms lost to challenges that they policymakers seeking cleaner fuel, so we neutral point of view. “In 2018, we see a had no control over. It’s also a nice fit have to be ready to step up with research little over 50% of the biodiesel produced because heating oil is consumed primarily on our side. We have a lot to offer to in the United States is made with in the winter. With Paul Nazzaro’s conventional diesel fuel to make that end soybean oil, so the other half is produced guidance and the buy-in from a lot of product much cleaner burning.” from other feedstocks,” he explained. leaders on our side, the cooperative “It was a very visionary decision by the research and investment have continued. The CEO is very optimistic about soybean industry to see biodiesel as It’s been a great match for our two biodiesel’s future. “We see an industry something bigger than just them. It has industries.” that is just waiting to burst with its ability proved very beneficial not only to them, to grow and produce more. What has but it has also resulted in a lot higher Policy has been a consistent challenge been missing is a consistent signal from value in other markets, such as restaurant for NBB. Ten years ago, “biodiesel was our government that investment in this oil collection and meat production.” the darling of the ball” on Capitol Hill, industry over a long term is a good idea. NBB also advocates for renewable diesel but some of that shine has now gone, One of our primary goals is to get that producers. Rehagen said. “We’ve got some work to settled down. There are a lot of our do in that area, because it is important companies, as well as outside investors, The National Biodiesel Board has to have policy that is a backstop for the that would like to put money back into also helped the biodiesel industry build industry. Even though we’re 25 years this industry and see it grow.”

Biodiesel Success Stories 13 Industry Leadership Group

Nebraska helps grow the biodiesel market

he biodiesel market adds emissions and address air quality to organizations such as the National significant value to soybean concerns raised by the California Air Oilheat Research Alliance (NORA) and crops and the Nebraska Resources Board. Brookhaven National Laboratory. Soybean Board (NSB) has aggressively supported fuel The Nebraska association has Those organizations took advantage Tresearch projects year after year to also played an important role in the of the support to conduct fundamental expand opportunities for their members. development of the Bioheat® fuel market research on fuel blending, combustion, on the East Coast. When the nascent storage, emissions, and other topics “When we first started with biodiesel biodiesel industry began exploring the that set the stage for ASTM approval of fuel, we had a glut of soybean oil sitting opportunities to blend biodiesel into biodiesel in heating oil applications. around, and our board worked hard heating oil, NSB directed checkoff funding to build the market for that In 2008, ASTM updated its product,” said NSB Executive heating oil specification, ASTM Director Victor Bohuslavsky. “We D396, to allow for biodiesel have a very good board that content of up to 5% in all heating understands we need markets for oil applications. That revision to products, and they are willing to the standard made it possible support research to build those for any fuel marketer to sell B5 markets.” Bioheat® without any risk of violating equipment warranties. Nebraska has a limited biodiesel production industry Many individual marketers of its own so it uses its checkoff quickly saw the value of dollars to support the growth Bioheat® and began promoting of emerging markets, mostly on it to customers as an attractive the east and west coasts. When alternative to traditional heating there is a healthy market for oil. It offered an improved soybean oil, the value of each emissions profile and directly soybean bushel increases by displaced petroleum with about 65 cents, according to Cale biodiesel that could be produced Buhr, the association’s market with soybeans grown by U.S. development coordinator. farmers.

In recent years, NSB has The Nebraska Soybean Board directed funds for research built a particularly strong bond into additives for the California Victor Bohuslavsky with heating oil marketers in New biodiesel market. Nebraska’s Executive Director, Nebraska Soybean Board York City. In 2012, B2 Bioheat® support has helped create became the heating oil standard additives that reduce NOx in the nation’s largest city, creating

14 Biodiesel Success Stories “The public is saying they want cleaner air and cleaner fuel, and that is what will push our industry forward.”

a 20-million-gallon market for biodiesel. population centers on the east and west saying they want cleaner air and cleaner “That has been a great thing for our coasts. “The big cities are addressing the fuel, and that is what will push our members,” Bohuslavsky said. environment more quickly than Midwest industry forward.” cities are,” he said. “They want to have a As the Bioheat® market was emerging, cleaner, safer environment.” He believes policymakers do not have NSB worked to build relationships enough information about the benefits between farmers and heating oil He would like to see stronger biodiesel of biodiesel. “If they are not informed, marketers. One focal point was programs in the Midwest, and he is they cannot move forward like some ambassador-type programs that brought encouraged by recent developments would like them to do,” he said. “That is two groups together on each other’s turf. in Omaha, NE, where policymakers are our challenge, to get them informed and First, the New Yorkers visited the Midwest beginning to leverage biodiesel in bus educated. to see the soy farms and biodiesel fleets to improve air quality. “Biodiesel is production facilities that would ensure a great way to clean the air,” he said. He is optimistic about biodiesel’s robust supply. Then the Midwesterners future. “I think the outlook is good, went to New York to meet the dealers He believes the biodiesel industry we have got a good group of retail and fleet operators who were putting advocates effectively for the fuel in distributors who believe in the product biodiesel in their tanks. the face of stiff opposition from the and merchandising, and we’ve got a petroleum industry. “We are doing a good reputation for a product that is very The visits have continued through really good job for the amount of money compatible to the engines people are the years, and now NSB and other soy or collateral that we have available. We driving today.” associations make an annual pilgrimage are going against some to New York to exchange ideas and forge industries that really have greater cooperation. The New York City their pockets loaded.” Council recently passed a measure that increased the biodiesel blend level in He believes the gallons of heating oil to B5 in 2017. The bill also petroleum industry 21 Billionadvanced biofuel to be used implemented a series of increases that will continue to resist will culminate in a B20 standard in 2034. biodiesel. “They are in the US by 2022 through RFS-2* concerned about their Bohuslavsky says biodiesel’s strongest bottom line, not about *Renewable Fuel Standard domestic markets are in the large the environment,” he said. “The public is

Biodiesel Success Stories 15 Industry Leadership Group There are government fleets and businesses with sustainability & emissions goals, biodiesel can help

he biodiesel industry passed Millennium. Farmers were already a major opportunity in diesel fuel and a major milestone on May struggling to sell oil when the U.S. Food began researching opportunities. 1, 2018 when fuel retailers and Drug Administration (FDA) began throughout Minnesota began its campaign against hydrogenated oils In Minnesota, the first fuel-related dispensing B20. and other “transfats.” Suddenly, the success was the creation of a packaged T market for soy frying oil dried up, and the biodiesel fuel additive. “You could Minnesota’s statewide standard, which soybean growers were left to search for sell it in a small jug. It was mostly soy calls for B5 in the winter months and B20 a new, high-volume market. The National methyl ester and some additive that you in the summer, is the fruit of nearly could just dump into your pickup two decades of labor by the Minnesota tank or tractor tank, and it would Soybean Growers Association and treat about 50 gallons of fuel,” its allied confederation of farmers, Youngerberg explained. “We started lawmakers and associations. with that product and it was a huge success. We promoted the heck out The journey began in the 1990s of, ‘Put some soy additive in your with the sale of packaged biodiesel fuel. It’s good for lubricity.’ Then fuel additives and progressed through one of the petroleum companies in many stages, with plenty of hard-fought Minnesota said, ‘Hey, that’s such a battles along the way. great deal, how about we just start adding that automatically to the Of the many biodiesel advocates fuel, and we can sell that like crazy,’ in the fray, one Minnesotan has and they did.” worked steadfastly year after year since 1999. Mike Youngerberg, Senior That modest success led some Director of Product Development and farmers to float a far more radical Commercialization for the Minnesota idea: a state biodiesel mandate. The Soybean Growers Association, was NBB had already worked with ASTM at the front lines when the first to create a biodiesel specification, requirement was proposed in 2002, and supply seemed strong enough, and he remains a driving force as B20 Mike Youngerberg so Youngerberg found some becomes Minnesota’s standard summer Sr. Director of Product Development legislators willing to sponsor a bill fuel. The National Biodiesel Board & Commercialization and got the ball rolling. “Little did (NBB) this year honored Youngerberg Minnesota Soybean Growers Association we know how long and arduous an with its Eye on Biodiesel Impact award. effort that was going to be,” he said.

The “Minnesota miracle” was The legislative journey began with conceived during a dark era for soybean Soy Diesel Development Board, which a string of hearings, where Youngerberg farmers in the years surrounding the was the predecessor of the NBB, saw and association lobbyist Jerry Schoenfeld

16 Biodiesel Success Stories 2.4 Billion dollars in wages paid to biodiesel industry workers annually

quickly learned what they were up to continue fighting off challenges. The mercy of what the state budget is going against. “The opposition came out of new laws required that the fuel delivery to do. With a mandate you don’t have to the woodwork: the petroleum industry, infrastructure be biodiesel-ready in all deal with that, but you may have people the trucking industry, school buses, the parts of the state before the new blend coming after it every year.” mining industry,” he said. “Everybody levels took effect. in the world seemed to be against us.” He believes the sustainability The environmental community looked The state had seen enough foot- movement will create some good favorably on biodiesel, but the proposed dragging by then. “Last year we had two opportunities for biodiesel in the years blend rate of 2% didn’t generate much bills in the legislature to delay the B20 ahead. “There are government fleets and enthusiasm. “If we’d have gone right to again, because the infrastructure guys businesses that have sustainability and B20, I think the Sierra Club would have said they weren’t ready,” Youngerberg emissions goals and biodiesel can help. supported us,” Youngerberg said. explained. “It’s a credit to our governor People are looking for ways to hit their and legislature that they said, ‘Hey, it’s targets and there is only so much you can The state legislature finally passed the been on the books since 2008,’ and they do with E85,” he said. first biodiesel standard in 2002, but basically rejected any attempt to delay then-Governor Jesse Ventura wouldn’t the implementation.” Minnesota has achieved its biodiesel sign it. He was supportive of biodiesel miracle, and soybean acreage might but reluctant to implement a blending Youngerberg sees the mandate as exceed corn acreage for the first time mandate and he let the law take effect more effective than alternative policy ever in 2018. The soybean advocates can without his signature. approaches. “Mandates are hard to never rest on their laurels though. “It get, but we have watched states with seems that in every legislative session, Passage of the law did not trigger incentive programs struggle at times with you have to be at the state capitol implementation right away because the funding. Some of those measures have because there always are attempts to new law required that in-state production been repealed, or the state couldn’t fund delay it or push it off,” he said. must first account for at least 50% of the the program, so you’re always at the 16 million biodiesel gallons that would be required. Producers hustled to bring 8 million gallons of capacity online, and on September 9, 2005, the state finally enacted the B2 standard.

The plan was always to ramp up from B2 to higher levels, but it wasn’t until Tim Pawlenty was elected governor that biodiesel adoption accelerated. He signed bills that called for B5 to be used in winter months starting in 2009, with B10 being used in summer months as of 2012, and B20 in summer as of 2015.

Even with those legislative victories in hand, the soybean association had

Biodiesel Success Stories 17 BIODIESEL SHORT STORIES

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines and heating appliances* without modification. It is the nation’s first domestically produced, commercially available advanced biofuel.

“Bio” Heating the seven seas Clear skies Biodiesel isn’t just for vehicles – it A blend of 20 percent biodiesel fueled The last thing a hiker wants to encounter can also heat homes and buildings. a one-of-a-kind ship with a special is a haze of smog that diminishes the Most often used in the Northeast as mission during a 2016 voyage from view from atop a picturesque vista. With a blended product, called Bioheat®, New England-to-Florida-to-Cuba. The more than 11 million visitors annually, the National Oilheat Research Alliance 200-foot Sailing School Vessel, Oliver Great Smoky Mountains National Park has an aggressive goal of completely Hazard Perry, took on 6,000 gallons of first began using biodiesel blends in replacing petroleum-based heating oil B20 at Newport Shipyard in Newport, 2003, ramping up to using B20 to power with B100 Bioheat by the year 2050. Rhode Island. Newport Biodiesel sup- 40 pieces of heavy equipment. Bioheat® plied the fuel for the unique journey. is used to heat the park’s headquarters building. * Biolheat® Fuel

18 Biodiesel Success Stories Seattle Green oN THE rOAD AGAIn Cool Running When it comes to reducing their carbon Legendary musician Willie Nelson helped Jackson Hole Mountain Resort in Wyo- footprint, biodiesel is a municipal darling. propel biodiesel into becoming a house- ming may be famous for its challenging This includes the queen of the green cit- hold word in the early 2000s, using biodie- terrain, an aerial tram and a lively base ies—the City of Seattle. The city’s Green sel in his tour bus, promoting its benefits village, but behind the scenes, this popu- Action Fleet Plan has a goal of reduc- in media interviews, and even having lar ski and snowboarding resort relies on ing carbon emissions by more than 40 his own brand of fuel. In 2006, he was a biodiesel. Blends power its fleet of snow percent by 2020, and biodiesel is helping. keynote speaker at the National Biodiesel cats and plows even when temperatures Seattle now uses nearly 200,000 gallons Conference and Expo in San Diego. plunge to 30 below. of biodiesel per year in a 20 percent blend, and proactively educates other fleets interested in biodiesel.

Breathe easy “Super” REcord speeds The American Lung Association in Illinois From motorcycles to pickup trucks, says that if you want to save money on Sustainable biodiesel has powered multiple land health costs, use biodiesel! “Vehicles The Philadelphia Eagles finally won their speed records. Using a mostly stock fueled with B20 biodiesel generate first Super Bowl, but biodiesel helps the Ford F-250 pickup truck, Brent Hajek less harmful emissions that contribute team as an environmental winner. At and his team in 2011 first achieved a to asthma, bronchitis, cardiovascular Lincoln Financial Field, used cooking oil record speed of 171.123 mph running disease and other health ailments. Con- is recycled into biodiesel, which is then on regular diesel. The team then filled sidering hospitalizations, lost work days used to power the stadium’s lawn mow- the tank with the B20 biodiesel blend, and other health costs, using B20 saves ers. Sustainable efforts like this helped and broke the record with a speed of an estimated $1.22 million. make Super Bowl 52 the first to reach 182 mph! zero waste.

Biodiesel Success Stories 19 Industry Leadership Group

The City wanted to clean up this environment, we found a way to do it Rocco Lacertosa CEO, New York Oil Heating Association

very movement needs its allies, The results have been phenomenal for In 2016, the City built on its B2 success and biodiesel has some of its the biodiesel industry. Since 2012, New story by passing the landmark local most important backers in New York City has had made biodiesel part of law Intro. 642-A, which changed the York City. its uniform fuel standard for heating oil, heating oil standard to B5 in 2017 and while also adopting biodiesel widely in enacted incremental increases that will EThe largest city in the United fleets and setting the stage for Bioheat® culminate in a B20 standard in 2034. The States has been a bold leader in biodiesel adoption in three adjacent counties. City also requires using B20 biodiesel in adoption, and one of the key players is non-emergency vehicles (B5 in winter) the New York Oil Heating Association. The breakthrough event occurred in like sanitation vehicles, and the police NYOHA’s Board of Directors and their 2010, when the New York City Council, department is voluntarily using B10. Chief Executive Officer Rocco L. Lacertosa led by Council Member James Gennaro, There is a study under way of biodiesel and his predecessor, John Maniscalco, adopted legislation changing the city’s usage in ferries. “This is a great victory have made the association an essential heating oil standard to B2, effective for all New Yorkers and, of course, for our and vocal supporter of biodiesel blending. in 2012. Given the enormous mass of members,” said Lacertosa. New York’s heating oil consumption, a “We exist to serve our members and 20-million gallon biodiesel market was NYOHA’s successes were closely incorporating biodiesel in heating oil has born, and the biodiesel industry had its watched by heating oil dealers in the been an important part of our mission,” East Coast beachhead. greater New York metro area, and in Lacertosa said. “Energy suppliers need to 2017, NYOHA’s industry partners in be pro-environment these days, or you While the victory was an immense one, the Downstate region led a drive at become a target instead of a participant.” the biodiesel advocates at NYOHA and the Statehouse to make B5 the new within the city government were just fuel standard for Nassau, Suffolk, and With the heating oil dealers themselves getting started. The first wave of biodiesel Westchester counties effective later this stepping to the podium time and again champions, Maniscalco and Gennaro, year. Together with New York City, the and meeting with lawmakers to advocate left the stage with their victories intact, region is home to 1.3 million oil-heated for new fuel standards, New York’s and their mantle was picked up by homes. environmentalist policymakers have had Lacertosa and City Council Member Costa the wind at their back. Constantinides. The switch to B5 in New York City alone raised biodiesel demand to 50 million gallons last year. As the adjacent counties come online and the City’s biodiesel blend standard increases to B20, the biodiesel industry will have homes in New York a concentrated market measured in 1.3 million hundreds of millions of gallons. will use a blend of biodiesel for heating When NYOHA first emerged as the leading voice for biodiesel blending, its

20 Biodiesel Success Stories “The more biodiesel we blend, the less carbon in the system, that can only help.” members were, to some degree, acting in With both victories in hand, New York Through its advocacy, NYOHA has self-interest. Heating oil had a target on City became the home of what NYOHA gained an impressive list of political its back because environmentalists were called “Clean 2,” a one-of-a-kind ultra- allies, such as the National Resource pushing hard to reduce harmful emissions low-sulfur Bioheat® Fuel blend that was Defense Council (NRDC) and the New York from the City. The long-running pursuit the cleanest heating oil sold anywhere in League of Conservation Voters, who have of cleaner air was converging with the the country. welcomed the oil dealers’ leadership on emerging sentiment to make the city a the environment. leader in climate change, and petroleum “We are now the epicenter of this was in the crosshairs. whole movement and we have built a NYOHA can never rest on its laurels, great market for biodiesel,” Lacertosa according to Lacertosa. “The mayor and Rather than sit back and let others said. “There was some hesitation in the the governor are no fans of fossil fuels, decide their fate according to their beginning, but now everyone seems to and we have our work cut out. But the petroleum-hostile agendas, NYOHA’s have warmed up and embraced it,” he more biodiesel we blend, the less carbon leadership elected to push for a seat said. in the system, that can only help.” at the table. The association showed the region’s environmental advocates Biodiesel suppliers have taken The National Biodiesel Board (NBB) that they could make great progress by advantage of the Bioheat® standard has supported NYOHA every step of the addressing fuel quality instead of focusing to build out a robust infrastructure of way and expressed its gratitude. In 2016, exclusively on fuel conversion. terminals around the City. “As far as the Board honored Maniscalco with a I know, no one has had any trouble Biodiesel Pioneer award, and last year “The City wanted to clean up this securing biodiesel supply,” Lacertosa said. Constantinides won a Climate Leader environment, and we found this way to The city’s legislation calls for waivers of award from NBB. do it”, Lacertosa said. “We succeeded in biodiesel requirements in an emergency, positioning our dealers and their cleaner and that option was invoked in the wake “We have been trendsetters all along fuel as an important part of the solution. of Hurricane Sandy in 2012. “We were on biodiesel,” said Lacertosa. “I definitely Bioheat® is a great way to improve the having trouble just getting diesel into New see biodiesel continuing to grow, and it is environmental performance of the York Harbor at that time,” Lacertosa said. great to be out front on this.” equipment that is already in place at thousands of locations throughout the City.”

NYOHA successfully pursued two vital changes to fuel standards. One was blending biodiesel into the fuel, and the other was reducing the sulfur content. On-road diesel and other distillates were already in the process of converting over to ultra- low sulfur, as mandated by the U.S. Environmental Protection Agency (EPA), and the oil dealers saw an important opportunity. NYOHA and the state’s other oIlheat associations successfully pressed the state to make ultra-low sulfur (15 parts per million) the standard for heating oil statewide.

Biodiesel Success Stories 21 Fleets

Biodiesel is an easy solution to becoming green

arvard University strives to The biodiesel program has earned the with a 2,000-gallon dedicated outdoor be a leader in sustainability university recognition as a leader on tank, and quickly emerged as a leading among universities and the environment. In 2008, the National biodiesel user in the region. World Energy institutions, and biodiesel is Biodiesel Board honored Harvard with supplied virgin stock vegetable oil at the an important component of an Inspiration award, and in 2016, the outset to help Harvard comply with the Hits clean energy portfolio. U.S. Environmental Protection Agency’s ASTM standard that was recommended Region 1 bestowed an Environmental at the time by the National Biodiesel The Cambridge, MA university has an Merit award on the university for its Board. Dennis K. Burke created the B20 Office of Sustainability that sets standards outstanding efforts in promoting New blends. for the university and has published a 36- England’s environment. page guide for all departments to follow. “Back then we were looking for a Harvard President Drew Gilpin Faust The Office of Sustainability is a fuel that was renewable and cleaner tours the country and the world to talk fairly recent creation that grew out of burning and we were looking to reduce about sustainability at universities and Harvard’s 2004 Green Campus initiative. our dependence on foreign oil,” Harris other institutions. During that initial push, Harris answered explained. Before making the switch to the call with a proposal to convert B20, he had looked into compressed Harvard’s attention to sustainable Harvard’s 90 diesel-fueled vehicles to B20 natural gas (CNG), which was the only practices and greenhouse gas reduction biodiesel. The university green-lighted competing option. “The infrastructure spans all aspects of campus life, including the project, and the fleet manager signed costs for CNG were too high,” he said. the university’s 300-vehicle fleet, which up World Energy and Dennis K. Burke as “You would have to transition over and includes buses, cars, and work vehicles. fueling partners. retrofit your equipment and facilities. It Since 2004, the university has been was certainly cost prohibitive.” running all its diesel vehicles on a B20 “In 2004, biodiesel was not widely biodiesel blend, according to David accepted,” Harris said. “We started out “It was much more cost effective to Harris, Harvard’s Director of Transit and using biodiesel in 55-gallon drums and go with biodiesel, because we already Fleet Management. “Students like to putting it only in vehicles that were had diesel vehicles in our fleet, and we beyond their manufacturer’s could source a cleaner-burning fuel warranty, so that we couldn’t be that was renewable and helped reduce caught short. Once we had used our dependence on foreign fuel. With biodiesel in a couple of shuttle Harvard preferring to be on the leading D6751 ASTM’s buses for a while and validated edge, whether in education or in the specification for neat biodiesel that it did not pose any risks to services provided, we certainly had the the engines or to the fuel’s cold support of the university to look at these flow properties, we made the alternative fuels and build the fueling know that the university is embracing calculated risk that we would use B20 in station.” sustainability and that the shuttle buses our university’s vehicles.” they ride are powered by biodiesel,” he He likes the way that biodiesel drops said. “Sustainability is an expected goal The fleet department set up a 24-hour right into the diesel fleet fueling process. and practice.” self-service biodiesel fueling station “Biodiesel is an easy solution to becoming

22 Biodiesel Success Stories green,” he said. “You can use it in your guidance, because the university not fuel that benefits the environment heating oil and in your vehicles. You only fuels with biodiesel, but also and economy is so many ways. “When don’t have to buy new vehicles.” performs its own vehicle maintenance. you go to a biodiesel event and hear “There have been no problems at the farmers say how biodiesel gives In 2006, the AltWheels alternative all,” Harris said. “I can count on one them a market for soy oil beyond fuel convention honored Harvard as hand all the cold flow challenges the cosmetics market, that’s great. the highest-volume biodiesel fleet in we’ve had in 13 years, and they are Biodiesel supports a whole supply Massachusetts. Now the university not unlike what any diesel user would chain and creates jobs. It’s good is not even in the top 5 for the state. have. Engine problems have also been for the country, and clean-burning, “That sort of tells a story about non-existent. Every vehicle we have and it is part of why we are not so biodiesel gaining acceptance, and I like procured or leased since 2004 has dependent on foreign oil. I hope it will to think we’re a part of that,” Harris gone through its lifecycle without any continue to play a part on our energy said. “It’s nice to think we helped raise mechanical challenges related to the independence.” the visibility and prove that it could be use of biodiesel.” done.” Harris would like see biodiesel By the end of 2014, Harvard had integrated into the fuel market as Harris has enjoyed sharing his used a cumulative total of more than completely as ethanol is. “The only experiences with fleet managers at 1 million gallons of B20 fuel and challenge that exists today is getting other universities and institutions. continues to use about 100,000 gallons biodiesel in your fuel,” he said. “When Harvard has a lot to offer by way of per year. Harris is pleased to use a you go to the pump in Massachusetts, you’re mandated to buy up to 10% ethanol, but you don’t have that kind of mandate for biodiesel, so retail availability of biodiesel remains very limited in the state. In most cases, you need to source it yourself and have your own dispensing facilities. To the extent you have to build your own fueling infrastructure, that’s probably the one challenge people face in trying to use more biodiesel.”

If he owned a diesel vehicle, he would like to be able to drive it coast to coast and find biodiesel at every filling station. “Even as we find cheaper ways to extract oil and become exporters of oil, we can still find a place for biodiesel, because it’s a sustainable fuel,” he said. “It’s nice to think we helped raise the visibility and

David Harris prove that it Director of Transit and Fleet Management, Harvard University could be done.”

Biodiesel Success Stories 23 Home Heating Oil Distributor

Bioheat®, defense against natural gas

iodiesel is an essential blend could deliver, then lifeline for Cubby work on moving to higher Oil & Energy, a and higher blends as time Massachusetts retail went on. It’s no secret that heating oil dealer that the oilheat industry had been isB locked in an existential struggle plagued with an ongoing with natural gas utilities. public relations challenge and Bioheat® would be just the Heating oil was once the strategy to turn it all around— predominant heating fuel in as it has at Cubby. Massachusetts, as it was in many Northeast states. Over the last “The natural gas companies three decades however, the have been able to dictate region’s utilities have used their the narrative so that we financial advantages to capture were always considered market share by portraying natural the worse fuel, the dirtier gas as the “clean” alternative to fuel. Obviously, they were “dirty” heating oil. extremely successful; they cut into our business by 30 to Serving homes and businesses 40 percent in Massachusetts within 30 miles of Boston, Cubby over the last 20-plus years. We has watched the utilities eat into Charlie Uglietto wanted to jump out in front of their market share, according to President, Cubby Oil it, and we changed the name owner Charlie Uglietto. His strategy to Bioheat® fuel, and now, has been to accelerate blending years later we have Bioheat® biodiesel with petroleum heating Plus™ and Bioheat® Super oil, creating Bioheat® fuel, enabling Cubby “I don’t know how anyone could be Plus™ referring to blends up to 100% to tell a winning story. in this business for a period of time and biodiesel.” not realize that as an industry, if we don’t Cubby’s journey to cleaner fuel began transition to a greener fuel, we’re just Consumer awareness of Bioheat® was more than 10 years ago. “I initially counting the days until we’re no longer minimal, so Cubby Oil made some noise. adopted the inclusion of a proprietary fuel in business.” “Either we’re going to be “We don’t sell oil, we sell Bioheat®. additive that helped mitigate unscheduled legislated out of business or the industry service calls. Several years later, I was as a whole is just going to become extinct. We started to educate our customers introduced to the National Biodiesel The idea that we are delivering a carbon- through our newsletters and everything Board’s leadership; they were visiting based fuel that is seen to destroy the else we could get our hands on about New England to experience firsthand how environment and the equipment in which this new fuel that was better for the biodiesel was having a positive impact on it is used, is not something that is going to environment.” the heating oil community. sell for much longer.” There were questions, such as Following that meeting, I was entirely At that time, Massachusetts was on the whether the new fuel would work in convinced that with biodiesel, which verge of enacting a mandate for blending existing heating systems, “but also it was makes up the renewable component 5% biodiesel into heating oil (which was embraced by many of our customers,” of Bioheat®, my family business, my never enacted) compelling Uglietto to he said. “They like that we’re doing customers and the industry at large would “seize the opportunity before me.” “I something more sustainable and that benefit greatly.” wanted to make the most of what a 5% they didn’t have to opt in. We’ve received

24 Biodiesel Success Stories “If we don’t go to a greener fuel, then we’re basically just counting the days until we’re no longer in business.” some good coverage from it, but we also wanted to impact change in how people viewed our fuel and services. “

“Initially, we applied Bioheat® logos on all four sides of every single truck and van and then added it to our stationery. We dedicated the front page of our spring and fall newsletters to share the positive attributes about the new fuel—bringing it up to people so that they would be aware of it. We also had our service technicians talk about it with homeowners every chance they had.” protection of the fuel, that’s where you “We need to have legislators look at us Cubby began delivering a 20% blend can see issues with the higher blends. as a fuel that will help them meet their (B20) to all customers in July 2016 and However, we just endured a bitter cold greenhouse gas emissions goals while at as of July 2018 the fuel they deliver is December and January and we had only the same time not being ‘non-renewable,’ ultra low sulfur B20, which burns cleaner one tank that had a flow problem. It like natural gas is.” than natural gas. It improves combustion turned out the driver had not additized at efficiency and extends service intervals by the previous delivery.” Uglietto is deeply committed to keeping heat exchangers virtually free of changing how customers think. “We still deposits. Maintenance issues have not increased have gas conversions today, and it blows with the move to higher blends. “I am my mind that people will convert to gas,” In 2014, Massachusetts passed a law more interested when we have a fuel he said. “We tell them straight up, ‘Fine, that added biodiesel to its Alternative pump issue now because of the stories you want to pollute the environment? Go Energy Portfolio Standard and made we hear about pump seals leaking, but we right ahead,’ but you’re not going to do it eligible for Alternative Energy have not had an increase in pump seals that with Bioheat®, and certainly not with Credits (AECs) which are analogous to leaking, and that’s with a lot of customers a B20 blend. “ Renewable Energy Credits (RECs). Only using older equipment.” biodiesel derived from waste vegetable “We talk to them and ask, ‘Have you oils, waste animal fats and grease trap He is testing higher blend levels in his ever walked through your neighborhood waste qualifies and blends must have a own home. “I have confidence in B20 and smelled the gas leaking from the minimum of 10% biofuel. ultra low sulfur fuel and I’m just starting ground?’ It has happened 24 hours a to introduce some higher blend levels day, seven days a week for years and Uglietto said the waste-only to see what will happen. I went to a it’s important that we continue to drive requirement creates some supply B60 blend and after three days, I had to home that it is pollution. It doesn’t make challenges. “I give the state credit for make an adjustment to the burner. Now I a mess, but it is certainly contributing to wanting to commit to using waste as it is know that a B60 blend is going to require the problems that we have. If we want to a good thing to keep it out of landfills and equipment adjustments,” he said. satisfy the Paris Accord in 2030 and 2050, utilize it in a way that it would alleviate we need to have a fuel that we can tell the negative issues associated with the “There are restrictions if we are talking customers will help us get there.” heating oil of the past. They were not B100, but as an industry we have to push concerned about availability. They think how far we can go with the product and the market will fill in as long as dealers see what housekeeping we’ll need to like me are asking for it, but time will tell.” make sure our customers have working equipment,” he said. He has Cubby purchases B99 from qualified asked the National Oilheat producers and blends it in to qualify for Research Alliance to conduct available AECs. “We do treat our fuel as additional testing and ASTM’s spec for neat I mentioned earlier and since we kicked determine what measures D396 into the B20 blend, we have optimized are necessary to succeed with heating oil and biodiesel blends the additives and worked on the cold-flow higher blend levels.

Biodiesel Success Stories 25 Fleets Biodiesel helps schools be progressive

he Medford, NJ school system in alternative fuel, and in 1993, the Joe Biluck originally switched its bus and state energy office reached out to see if Director of Technology (retired), Medford, NJ School District vehicle fleet to a B20 biodiesel Medford would be interested in being a blend in 1997 in the pursuit of pilot site for biodiesel. Medford had to emissions reduction and the pass on the state’s first offer, because it fuel has delivered beyond expectations, was for new vehicles only, and Medford T Medford, which is located in south according to Joe Biluck, who recently was not looking to replace its fleet. central New Jersey, about 15 miles east of retired as Director of Operations and The breakthrough finally came in 1996 Philadelphia. Technology. when the state offered the district a Using biodiesel in a fleet might be no As the longest-running user of biodiesel $115,000 grant to participate in a four- big deal today, but it was a different story among school districts nationwide, year program to test the performance in 1997. Biodiesel was largely unknown, Medford has experienced direct of biodiesel blends in existing vehicles. and Biluck encountered some resistance improvements in fleet operations as well Medford was an excellent candidate, from bus drivers, who did not like the idea as many indirect benefits. The district has because they had maintained meticulous of relying on an unproven fuel when they built goodwill in the community, created records of fleet operations for the were driving buses full of school children learning opportunities for students, previous 10 years, which provided a solid in remote areas. bolstered pride among district staff, baseline for data comparison. and even become a better magnet for Nevertheless, the district put half There was a lot of preliminary work to educational talent. its buses and vehicles on B20, and the do. The district needed to test its buses positive results started piling up right The journey to biodiesel was long and and divide them into a test group for away. Emissions testing showed that circuitous. The genesis was Biluck’s pursuit biodiesel blends and a control group for B20 was delivering notable reductions in 1990 of new ideas to improve fleet straight diesel. Biluck inventoried the in emissions of particulate matter, operations, starting with a system that fleet and found he could divide vehicles hydrocarbon compounds, and NOx. The would reduce the time spent changing of comparable age and engine type easily district also saw a $0.02/mile reduction the oil in the school’s buses. This led him by simply assigning the even-numbered in operating costs, due primarily to to a motor oil vendor, who facilitated buses to the test group and the odd- reduced failure of exhaust systems and an introduction to training specialist numbered ones to the control group. fuel injection systems. Cost savings also Wayne Johnson, who had helped bring The district purchased and installed resulted from a reduction in engine alternative fuels in school bus fleets in a new 4,000-gallon tank for biodiesel vibration, which reduced the fatigue Pennsylvania. Biluck was interested in the storage, and Biluck began seeking bids on engine mounts, mirror brackets Pennsylvania program, and he reached for the fuel. He had originally expected to and similar parts. Engines vibrated less out to energy officials in New Jersey to see purchase pure B100 biodiesel and blend it because biodiesel has elevated oxygen if they wanted to test alternative fuel in into diesel at the district’s fleet facility, but content, Biluck said. bus fleets. the provider that the district chose, Twin It did not take long for the bus drivers Biluck’s original plan was to switch River, said that the only way to ensure the to come around. One driver who had Medford’s fleet to methanol, propane, or consistency of the fuel blend quality was expressed doubts about the fuel’s compressed natural gas (CNG), but state to blend the fuel prior to delivery. reliability apologized and told Biluck law prohibited the use of fuels other than In December 1997 Twin River (which about a student with pulmonary issues gasoline and diesel in school buses. later became World Energy), delivered its who seemed to tolerate the exhaust from The setback proved temporary, first load of B20 biodiesel to Medford’s the biodiesel-fueled buses much better however, because Medford was now new tank. Based in Quincy, MA, Twin than he had ever tolerated diesel exhaust known to the state as a district interested River would deliver two loads a week to fumes.

26 Biodiesel Success Stories “It is environmentally advantageous.... you’re reducing your petroleum usage by 20%”

Joe Biluck biodiesel, and the cold fuel blended Director of Technology (retired), Medford, NJ School District badly. The district used block heaters and fuel heaters to melt the solids and get the fuel flowing properly. Since that incident, he noted, biodiesel producers have begun using cold-filtering processes One area where biodiesel was initially economic benefits of those sustainability that reduce the incidence of solids falling disadvantaged was pricing. Medford projects were huge in that we were out of the fuel, he said. could purchase traditional diesel fuel able to release some $300,000 of our for $0.55/gallon, while the biodiesel operating budget and realign those funds The district also learned about the was priced at $1.83. By 2016, however, to support the district’s educational importance of inspecting tanks before biodiesel supplies and availability had goals,” Biluck said. adding biodiesel. “We focused a improved, and the district was able lot more on tank maintenance, and The district’s teachers use the to procure its biodiesel blends at the that’s just good business. If you’re biodiesel fueling facilities as a teaching same price as ULSD. The $0.02/vehicle not maintaining your tanks now, you tool to expose students to alternative mile reduction in operating costs led to should be, because even at a blend as energy adoption. “We have some savings of $10,000 to $12,000 from the low as B2 or B5, biodiesel will dislodge fantastic opportunities to enhance our use B20 blends, according to Biluck. contaminants, and you’ll get filter instructional environment,” “It’s economically advantageous he said. “We can use our fleet for the district. It is environmentally facilities as a lab to expose advantageous, and from an energy kids to career paths that security perspective, you’re reducing they might not otherwise your petroleum usage by 20%,” he said. consider.” 2.8 billion gallons of While the operational cost savings Medford’s commitment to biodiesel produced annually have been very beneficial, they are just alternative energy makes the the first chapter in Medford’s biodiesel district a better workplace, success story. The district also enjoys according to Biluck. “People have a plugging in your dispensing pumps. great appreciation from the community feeling of pride working in a district People want to blame the fuel, but for its commitment to the environment. that encourages progressive thinking the fuel is just revealing a preexisting “The feedback we have received from and not just doing the same old thing problem in the tank. I always advise the community is that they are proud of day after day.” people to inspect their tanks before they introduce biodiesel.” the fact that the district is progressive. Medford’s students benefit directly, I was fortunate to work for a school because the district has improved Given the success he has witnessed board that expects their administrators teacher retention, and it has an in Medford, Biluck hopes the federal to investigate progressive methods to advantage in recruiting new talent. government will strengthen its support improve their operations. It is part of the “Teachers want to be part of this of biodiesel. “I would like to see the district’s DNA.” program, and families do too,” Biluck Renewable Fuel Standard increase to The district’s success with biodiesel said. allow the biodiesel market to expand beyond 2.2 billion gallons of annual paved the way for more energy Biodiesel adoption had a few rough production,” he said. innovations. Medford outfitted four of its moments early on. The district ran seven schools with geothermal heating into fuel plugging problems when, and cooling systems and installed the unbeknownst to them, a heat exchanger state’s largest solar energy array. “The failed in a railway car that was delivering Biodiesel Success Stories 27 Fleets

Greenhouse gas reduction, better air quality, and a domestic, renewable fuel Keith Kerman Deputy Commissioner Department of Citywide Administrative Services

ew York City municipal to Keith Kerman, Deputy Commissioner, Biodiesel adoption started in 2005, fleet managers are deeply Department of Citywide Administrative when the Parks and Recreation committed to sustainable, Services (DCAS). Department began pilot-testing fuel environmentally sound blends in some of its vehicles. Usage operations, and biodiesel For example, fleet managers have been surged a few years later when the playsN a major role in reducing emissions experimenting with B20 usage in the Sanitation Department, the municipality’s from the city-owned vehicles. winter for several years to learn what largest consumer of diesel, piloted and works and what doesn’t. “We have used then adopted B5. “Parks is the steward Mayors Michael Bloomberg and B20 successfully in the colder months,” of the city’s open spaces, and they were Bill de Blasio and the New York City Kerman explained. “The real issue there a very early adopter of hybrid vehicles,” Council have passed a succession of laws is the mix, whether you mix with a D1 Kerman said. “They were always looking to update fleet fuel standards. Current heavily winterized kind of kerosene fuel for ways to have their fleets represent policy calls for B20 in non-emergency or what we call our winterized D2. When their mission, and we got an opportunity vehicles for most of the year, with a B5 I was at the Parks Department in the late to pilot biodiesel, via a donation. We standard in winter. 2000s, we used B20 and D1 for the entire first tested with garbage trucks on fleet over three consecutive winters, and Staten Island using B100 for much of the With the largest municipal fleet in it was very successful.” summer, and it went very well. That really the United States, the City is using its piqued our interest for all the reasons purchase power to help biodiesel gain a The City is well staffed to manage that people are interested in biodiesel: critical foothold on the East Coast, and fuel blending. DCAS has its own Quality greenhouse gas reduction, better air it hopes to do the same for renewable Assurance Bureau and the Fleets quality emissions, and a domestic, diesel. New York also maintains a Division employs a fulltime PhD chemical renewable fuel.” biodiesel standard for heating oil. engineer, Ramona Ledesma-Garrido. DCAS continues to study B20 and In addition to biodiesel, the Parks While policymakers are playing a run pilots with B50 and B100. “We’re Department uses hybrids, electric cars critical role by encoding the biodiesel confident we can use B20 year-round, but and even two solar-powered vehicles, and standards, it is the city’s fleet managers we’re still looking at the best ways to do the clean-fuel commitment is promoted who typically lead the charge, according it,” Kerman said. with decals and signage. The Department

28 Biodiesel Success Stories 64,000green jobs supported by biodiesel

“New York is a world leader in biodiesel adoption and recently partnered with the City of London to share the benefits of its experiences.”

hosts an annual fleet and equipment infrastructure. More than 150 types of diesel, but some are voluntarily adopting event to showcase the alternative fuels vehicles and equipment use biodiesel biodiesel, such as the Police Department, and technologies it uses. blends in the New York City fleet, including which has opted for B10. It is critical garbage trucks, mowers, beach-cleaning that ambulance and police cars have no While Parks and Recreation was the equipment, tractors, light towers and fuel related problems, and DCAS works early leader, “we have now seen that generators. with emergency fleet managers to help initiative move to all city agencies,” them gain comfort with biodiesel blends. Kerman explained. As more departments Even with application in 11,000 vehicles, “In every case the agencies started came on board, the City began specifying the City has experienced virtually no fuel with B5 and as they have become more biodiesel blends in its fuel contracts. By related problems, according to Kerman. comfortable moved ahead,” Kerman said. 2007, the City was already dispensing “Biodiesel has been environmentally “We spend the time to make sure we get B20 in at some of its fueling stations and positive, service-positive, and lately it has it right.” specifying B20 in fuel contracts. also been cost-positive,” Kerman said. “There has been no reason not to do it.” New York is a world leader in biodiesel Kerman appreciates the ease and adoption and recently partnered with the economy of biodiesel. There is no The current mandate allows emergency City of London to share the benefits of its need to change out vehicles or fueling departments to use straight petroleum experiences. “We’re looking to expand that,” Kerman explained. “We’ve been in discussion with a number of cities around the world to create a large fleet partnership.”

New Yorkers care about the environment, he noted. “They have elected mayors who promoted environmental stewardship, and the administration has worked with the City Council to enact environmental laws with near unanimity,” he said. “There has been a lot of support, and on the Bioheat® side, it’s not just city government that’s affected; all buildings are using Bioheat®.”

Biodiesel Success Stories 29 Producer

Biodiesel has a seat at the table, and earns it

arbon reduction matters to “A bunch of guys got together in 1998 SeQuential partnered with Pacific environmentally conscious and formed a club called Eugene Biodiesel in 2005 to build a 1-million- consumers, and they will use Biosource,” Keever explained. “We gallon plant in Salem, OR. Then in their buying power to make were home-brewing biodiesel in the 2008, they built a new, larger plant, it happen. If a fuel company garage, with a 55-gallon drum and a boat and they have since tripled its capacity Ccan claim an 85% reduction in carbon loader.” to 17 million gallons a year while also intensity vs. petroleum, it stands to acquiring 15 cooking oil and rendering attract a lot of activist customers. In 2002, Keever co-founded companies. “We now collect from the SeQuential, using financing from friends Mexican border to the Canadian border,” That is exactly the value proposition and family. “We bought a truck and Keever said. “Our tagline has evolved at SeQuential. The Eugene, OR-based began delivering biodiesel to people’s to be, ‘Collect, refine, refuel,’ which biodiesel company is reflects our model of vertical achieving an outstanding integration.” “carbon score” by collecting used cooking oil, The disciplined focus on refining it efficiently, and reducing carbon intensity is a selling finished product to reflection of Keever’s nature. both wholesale and retail “This is the way I like to channels across a tight approach life. I got my degree in geographical footprint. planning. My wife is a planner. We invest in good equipment. SeQuential is systematic Our core values are innovation, about driving down carbon relationships, results, and intensity, according to co- — one of my favorites — founder and CEO Tyson conscientiousness. We look at Keever. “Our feedstocks the big picture and build the are 99.9% used cooking company to last.” oils. We use B99 in our trucks. We have solar Building the business has panels on the roof of our been a pleasure. “We’ve got production facility, and a great team and a great we have really high yields community around us, and I and methanol recovery. think we are demonstrating We also have the greatest Tyson Keever that the economy and the high-density concentration CEO, SeQuential environment can work together in the country of stations to create jobs and clean that sell B20 or above, tailpipes,” he said. “I feel good so we have a really low about going to work every day.” carbon score on the delivery component.” homes in 55-gallon drums with little SeQuential is a BQ-9000 producer and hand-cranked pumps,” he said. “We also marketer. “I was resistant to that at first, SeQuential now produces more than did ‘parked retail,’ where we parked at but going through the process has made 8.4 million gallons a year and supplies a certain spot for four hours as a kind of us a better company and standardized 100 locations, but they started small. mobile retail pump for people’s cars.” a lot of our procedures. I think it is

30 Biodiesel Success Stories incredibly important and has done a lot to advance the industry. Customers want to trust what they are buying, and BQ-9000 has helped resellers—the people who touch the fuel—with their handling of it.”

Oregon customers have come to appreciate SeQuential’s style. “We have spent a lot of time and energy trying to simplify the value proposition. We collect, refine and refuel and put that back in the tank and we tell a simple story about building a better energy model. A lot of consumers are searching out better choices, whether they’re buying direct carbon offsets, or a hybrid electric car, or paying for a solar installation on their house.” need to do more as an industry to sell Fuel Standard and the biodiesel tax Sequential has been trying to mirror the molecule, push higher blends, get credit make it really hard to grow the organic produce movement. “People manufacturers on board, and get the consistently. When you are trying to are searching out organic food and the traditional fuel distribution infrastructure raise capital and you have a policy that values that go with it, like sustainability more comfortable with higher blends.” is expired, that hurts our ability to get and the health aspects. I think that same traditional financing. We need a longer- theory and mindset applies here, and SeQuential enables wholesale term horizon. If they really want to that’s why biodiesel is such a compelling customers to customize the fuel they unleash the potential of the industry, the offering.” buy. “We have a few terminal positions federal government needs to give us ten with inline rack blending, so we can offer years of consistent policy.” Oregon is highly supportive of any blend you want. We have a dozen or biodiesel, according to Keever. “The so pumps that offer B99 and blend down Keever sees an important role for state has done a great job. Every gallon to B50 and B20 as the weather gets biodiesel going forward. “Biodiesel isn’t of diesel sold here has 5% biodiesel in really cold.” the be-all and end-all, but it is a very it. That breaks down a lot of resistance good, logical next step. It is an available from OEMs and the petroleum industry During winter, the company solution that works in our current who were saying, ‘Oh no. You can’t go proactively adjusts its dispensers and infrastructure and vehicles today. It that high.’ Oregon is a cold state. We works with wholesale customers to has immediate impact, and it’s a clear have a lot of regions that get down blend down their tanks. “We want to contributor as part of a comprehensive below zero for an extended period of make it an easy process for them, and solution. In order to have a healthy, time, and we have proved that it works.” the best winterizing agent available now, diversified energy supply, we need to unfortunately, is petroleum diesel.” Years look at all the different energy sources He believes the biodiesel industry of experience have shown SeQuential out there. Biodiesel has a seat at the can do more to market its products and its customers that B20 works well table and earns it.” effectively. “We need to sell the year-round, even in the dead molecule. We need to spend more time of winter. working on selling higher blends beyond B5, beyond B10 and really push for a While winter blending $ B20 standard,” he said. “Biodiesel has is perfectly manageable, 78% less CO on average than petroleum inconsistent federal biodiesel 2 11.4 billion diesel, and our product has 15% of policy is highly problematic, biodiesel’s economic impact, 2016 the carbon intensity of that petroleum according to Keever. “The diesel! It’s a way better product, but we disruptions to the Renewable

Biodiesel Success Stories 31 Producer You get 3.5 units of energy out, for every one you put in

ERO BX has enjoyed 10 than three and a half units of energy out obligated parties, including the petroleum great years as a biodiesel for every unit you put in,” he explained. giants such as Exxon-Mobil, Shell, producer, and owner Pat “With ethanol, every unit you put in yields Valero and Chevron. Those companies Black is looking forward to three-quarters of a unit. Biodiesel is a became major buyers of both biodiesel many more. So strong is much more efficient process.” and biodiesel Renewable Identification Hhis belief in this young industry that he Numbers (RINs). HERO BX also developed recently published a book, The Biodiesel He launched Lake Erie Biofuels in 2004, a strong clientele of truck stop operators Solution, to call attention to the enormous built a plant from the ground up in Erie, and jobbers. potential. and began production in November 2007 with a nameplate capacity of 45 million Between 2010 and 2015, the company Black’s biodiesel journey began in gallons per year. Lake Erie shipped its focused on maximizing efficiency, which 2004 when he was shifting gears after products to Europe at first, but then increased the capacity of the Erie plant to a successful career in insurance and market conditions shifted between 2008 50 million gallons a year. To better serve looking for a way to create good jobs and 2010 with the imposition of tariffs customers in the South, HERO BX also in his hometown of Erie, PA. “Erie in Europe, the passage of the federal purchased a 15-million-gallon plant just used to get 50 percent of its GDP from Renewable Fuel Standard 2 (RFS2), south of Tuscaloosa, AL and retooled it. manufacturing, but that has fallen off as it and Pennsylvania’s enactment of a 2% has across the country. I wanted to build biodiesel mandate for on-road diesel. In 2016, HERO BX made its first major that back up, because the best-paying investment outside the manufacturing jobs with the most sustainable wages are The newfound focus on the U.S. market space by purchasing a blending in manufacturing.” led to several changes. The company terminal operation in North Hampton, revisited its branding and switched the NH. The acquisition put HERO BX in He decided to pursue renewable energy name to HERO BX, and they retooled the the New England heating oil market, production in either ethanol or biodiesel, Erie plant to increase feedstock versatility. where marketers are adopting the and his research made the decision easy. blending of petroleum heating oil with “When you make biodiesel, you get more The RFS had created different classes of biodiesel creating Bioheat® fuel as an environmentally friendly alternative to the pure petroleum product. The heating oil industry is committed to improving its product while ensuring its broad coalition of fuel dealers continue to enjoy a sustainable future. This is now possible with the advent of clean burning ultra-low sulfur heating oil blended with biodiesel, a fuel that is lower in greenhouse gas emissions and more aligned with policy decision makers’ thinking.

To bring its proprietary product one step closer to its customers, HERO BX’s New Hampshire facility offers electronic rack injection blending of biodiesel with heating oil using the Top Tech System MultiLoad II and TMS 6000 software. A Pat Black card-based system, it enables dealers to Owner, HERO BX select their preferred blend level for every truckload from presets that include B5, B10, B15, B20 and B80. The most popular

32 Biodiesel Success Stories choice is B20. “It allows retail dealers to walk the walk and say there is 20% biodiesel in the fuel,” Black said. “And most importantly, it keeps them within the ASTM standard for heating oil blends.”

HERO BX has worked to change the way its customers think about biodiesel feedstocks. While the fuel standards in Europe necessitate a virgin vegetable oil product, the U.S. market relies on ASTM specifications that can be achieved with a variety of feedstocks. HERO BX places the focus on the quality of the end product with its proprietary HBX-3000 standard, which is a fats and grease blend with a cloud point maximum of 9° C and a high cetane value. The company also offers HBX-1000, which is generally accepted as and is establishing a biodiesel research investors. The biodiesel blender’s tax a winter blend transportation fuel to be facility on the Erie campus of Penn State. credit has expired four times in eight used where colder ambient temperatures years, and there have been repeated are prevalent, or where the product will Black has been so impressed with the delays in U.S. Environmental Protection be blended with a higher-cloud diesel industry that he recently turned author Agency’s announcement of the annual fuel. HERO BX achieves consistent fuel and produced The Biodiesel Solution: Renewable Volume Obligation (RVO). quality as a BQ-9000 producer and How Biodiesel Is Making a Difference for encourages buyers to choose the product our Future. “This industry is only 25 years “The biodiesel industry is made up of with the specification that matches their old,” he noted. “They struggled a lot in entrepreneurs and innovators,” Black needs. the early years, and I wanted to capture said. “We just need to have clarity on the story of the early pioneers and tell whatever the rules are so that we can “Our plant runs on a multitude of the story of what they went through to run our businesses. Attracting outside feedstocks, which affords us the choice of create this. The biodiesel industry has capital for increased growth is extremely purchasing the most economical products made some large strides already, such as difficult, as banks and equity partners and creating fuel that is discounted having the City Council of New York create are not completely understanding of the against Soy Methyl Ester (SME),” Black a biodiesel requirement for heating oil.” risks associated with lapsing credits and said. “HBX-3000 has a higher cloud point unknown mandates.” than HBX-1000, but it makes a great The accomplishments are notable, blend stock for heating oil. In blends up but Black says the industry has just to B10, it makes perfect bio-blends in all scratched the surface. “The sky is conditions.” the limit for biodiesel. Obviously, we can use more domestically, starting the term 2003® HERO BX buys feedstocks in a daily with the airline industry, which has “Bioheat ” comes into existence spot market. “There are 15 different bio- not yet dealt with the pollution from feedstocks in the U.S., including used their vehicles.” cooking oil, soybean oil, chicken fat and Policy makers could make a big beef tallow. We use a mix, based on the With their strong focus on solar difference. “A multi-year credit program specification of the fuel that the customer and wind power, many green energy would be enormously helpful in attracting wants to buy.” advocates are overlooking the great new investment to spur expansion in the opportunity available by displacing industry. The clarity provided by a multi- Black believes in the social benefits petroleum diesel with cleaner-burning year package would allow financial folks of biodiesel. “We are making fuel out biodiesel. “There is a whole different to model returns more accurately, based of byproducts that would otherwise be model that could be in play,” he said. on a level and known playing field. This dumped in a landfill or poured down “Considering how much diesel is would, in turn, give EPA the necessary a drain,” he said. In addition, biodiesel produced in the U.S. each year, if we information to predict and postulate or biodiesel blends burn cleaner than could just get up to 20% of the market, future RVO levels on a timelier basis.” straight petroleum diesel, and the that would be a huge jump from where biodiesel industry supports 64,000 we are now.” There are obstacles, to be sure, but workers nationwide while indirectly Black is undeterred. “If there are no supporting contractors, logistics providers, He believes growth has been stunted challenges in life, you don’t get anywhere. and others. HERO BX itself employs about by stop-and-go renewable energy policy Biodiesel offers important benefits that 100 people in Pennsylvania and Alabama that creates uncertainty and discourages are worth pursuing as a nation.”

Biodiesel Success Stories 33 Producer “At some point, you have to achieve closer cooperation between biofuel suppliers and Are we better off using petroleum suppliers, and then we can start more fossil fuel? No to sketch out a joint vision for the future.”

Energy now operates “The tax credit gave us a competitive seven manufacturing advantage in Europe, so the business facilities, including became one of international trade,” recent purchases of Gebolys said. “Then once the Renewable a renewable diesel Fuel Standard (RFS) was phased in around facility in California and 2010, we had a standard-driven market two biodiesel plants in for the first time. This showed promise Ontario, Canada. that manufacturing of biodiesel would be required. It was in the transition in The company’s 2008 and 2009 that we started to lay journey mirrors the the groundwork for what we now are, evolution of the and we continue to transition today. We biodiesel industry. are kind of coming full circle, where the “When we started there downstream distribution and delivery all was no market, so half the way into fleet applications are again the first decade was emerging as key components of success spent not only creating in this business.” a market but creating a reason for there to be a World Energy has learned to cope market,” he explained. with the idiosyncrasies of biodiesel financing. “Because of the risk profile in “The biggest thing in this relatively complicated industry, it the early development may be better suited to nontraditional, of the industry was higher-risk capital rather than more trying to sell biodiesel mature capital,” he said. “This is a very to fuel suppliers so difficult industry to explain to a financier. that they would deliver With the uncertainty around the tax Gene Gebolys it to their fleets. Not credit, many traditional financiers run CEO, World Energy surprisingly, none of for the hills. If we had more predictable, them wanted to buy projectable growth, you would start to it, so we had to go and see more and more capital coming in sell it to the fleets and to the space, and with that the cost of orld Energy has solidified then buy what the fuel dealers supplied, capital would get cheaper and cheaper.” its standing as the second which was hauling and input and then largest biodiesel producer sell downstream to fleets.” The financial challenges make it hard in North America by to put together an efficient operation looking ahead and World Energy was acquiring end-use that extends from manufacturing to changingW with the times. customers and serving them from a distribution, Gebolys said. “On the one network of distribution outlets around hand, it’s a serious obstacle, but on “I have been in many different the country. “We were very focused on the other hand it’s a real opportunity. businesses over the last 20 years,” said a direct customer interface and getting If you are able to put together higher- founder and CEO Gene Gebolys. The folks that had never heard of biodiesel to risk, higher-reward capital, you can get company got its start in Quincy, MA, in specify it in their fuel requirements.” to scale and efficiency that are hard to 1998 when he purchased the biodiesel achieve otherwise.” He noted that most division of Twin River Technologies The arrival of the biodiesel tax credit in of World Energy’s manufacturing facilities on maxed-out credit cards. World 2005 ushered in a new market dynamic. are acquisitions that were built by others.

34 Biodiesel Success Stories “At some point, you have to achieve closer cooperation between biofuel suppliers and petroleum suppliers, and then we can start to sketch out a joint vision for the future.”

“The two largest players in the space part of the emergence of this industry.” While the future looks bright, really weren’t plant builders. They were World Energy is poised to capitalize on Gebolys doesn’t think it will be easy. Big plant acquirers,” he said. the pipeline opportunity with a plant petroleum has fought hard to guard its in Galena Park, TX connects to a Kinder market share, but he believes renewable Through good days and bad, Gebolys Morgan pipeline. energy has secured its place in the world has maintained a strong belief in the economy. “Are we better off using more future of biodiesel. “I don’t think we’re Biodiesel blending is poised to shift fossil fuel? No. So they are arguing for going back to a pure fossil fuel world. from a source of economic advantage for their own benefits, and that’s fine, but There is a greater and greater awareness some suppliers to an economic necessity, we just shouldn’t be hoodwinked to of the need to move towards cleaner, according to Gebolys. “It’s binary. There thinking that is a wise thing for society more renewable sources of convective is some point at which adoption of to do.” energy. Biodiesel is very important in moving B5 in pipelines is something you the diesel side of the equation. As the just have to do to keep pace. Biodiesel The debate has been particularly leading advanced renewable energy always trades, net of RINS and net of tax pitched in 2018, with some politicians in America, biodiesel is really at the credits, at a discount to heating oil, so if stoking a passion for annihilation of the forefront of where growth is going to you can move product up the pipe that RFS and the biofuels industry. “I think the happen.” has the discounted materials blended outcomes will soon provide clarity about in at its origination points, that’s an where we go from here. It’s becoming Biodiesel’s growth is tightly tied to opportunity. But if the competitor pipeline access, and the future looks is doing it every day, at that point bright now that ASTM has revised the jet it becomes ubiquitous. Nobody fuel specification to allow up to 50 parts is worried about what they might per million (ppm) of biodiesel in jet fuel. gain; they stress out over what they B5 the blend adopted into The former limit of 5 ppm had forced might lose.” Grade No. 1 and No. 2 heating oils shippers to keep biodiesel blends out of pipelines that also shipped jet fuel. That change has already happened at truck stops, Gebolys “Pipelines are by far the most efficient notes. “If you’re a truck stop operator increasingly clear that we’re just not way to move fuels from one point to the in the United States and you have not going back to a world where we don’t other,” Gebolys said. “Biodiesel really maximized biodiesel blends in your fuel, put renewable fuel into our fossil fuel. has not been moving by pipeline in any you’re just marking time until someone If we are going to grow the concept of significant way throughout its history. buys you.” Trucks stops in the south are renewable fuel in our fuel supply, the Now pipeline shippers are increasingly already maxing-out at B20 six months a question becomes how do we it most looking at shipments up to B5 in the year. efficiently. mainstream pipelines of the country. As that effort continues to progress, we will “I don’t think we’re going to be B20 “It is not efficient to have constant be in a dramatically different spot where everywhere all the time, because you policy squabbles, because then you can we can move biodiesel as efficiently as have seasonal, logistics and supply chain only attract the most expensive capital. we move diesel fuel.” constraints, but I think we’re going to be At some point, you have to achieve pretty standard B5 virtually everywhere, closer cooperation between biofuel Pipeline shipments can dramatically and in a 60-billion-gallon distillate suppliers and petroleum suppliers, and reduce biodiesel cost, he said. “If you can market, that’s 3 billion gallons a year, then we can start to sketch out a joint get 25 cents per gallon taken out of your with a fair amount of blending up to B20 vision for the future,” he said. “I really costs, you can really change the industry. beyond that. Certainly, an on-average do think we’re going to get to a better It took a long time to get here, but this B10 market is within our sights in the place.” is about to become a very important foreseeable future.”

Biodiesel Success Stories 35 Fleet

We switched to biodiesel and never looked back

That is the sentiment of out to engine manufacturers to make Timothy Fitzgerald, Director sure that they choose engines that of Fleets, DC Water, the support biodiesel and that they heed water and sewer authority the OEMs’ recommendations. Along the for the nation’s capital. way, DC Water and other agencies have influenced OEMs to accommodate their More than 672,000 preference for cleaner fuels, according to residents, 17.8 million Fitzgerald. annual visitors, and 700,000 people who are “There used to be a fear (around employed in the District biodiesel usage),” said Fitzgerald. “You of Columbia count on DC know, I’m not going to put my job on the Water. The agency maintains line and take this $300,000 or $400,000 infrastructure above and piece of equipment and introduce a below ground. unproven fuel to it. But now we are at the point where the OEMs are taking off Fitzgerald has worked with the cleaner fuels. They have listened to make biodiesel an to us.” important part of DC Timothy Fitzgerald Water’s environmental With blends from B5 to B20 in use, Director Fleet Management, DC Water stewardship, and he believes DC Water avoided using nearly 15,000 the fuel has a great future gallons of petroleum diesel during one that includes applications recent 12-month span. Protecting the of pure biodiesel. “Let’s environment is part of the culture at forge ahead with it and move it into the DC Water. “We’re an environmentally ’m glad to see biodiesel is next millennium, but let’s involve the friendly agency,” Fitzgerald said. “We finally getting the respect it kids, then we’ll have a gift that keeps on make sure we are conscious about deserves. It just makes sense. giving,” he said. what we’re using and how, in terms of We switched to biodiesel and choosing cleaner fuels and making better have never looked back. It DC Water uses biodiesel blends in use of fuels.” can“I be used in existing diesel engines, about 75 vehicles as well as stationary reduces emissions, and our drivers notice equipment such as generators, The agency’s current CEO and his a big difference in fumes.” compressors and cement mixers. predecessor are thought leaders, Fitzgerald and his colleagues according the Fleet Director. “They have have taken their transition put an emphasis on this, making sure we from diesel to biodiesel very are driving in the right direction in terms seriously. environmental leadership. We want to be the flash point of more than a government authority. We 160°Cmost biodiesel Most engines made are a conscious authority, and we want to the transition seamlessly. be a formidable force for the betterment They have also reached of our citizens and our children. We’re

36 Biodiesel Success Stories “Biodiesel plays a significant role because it is a viable, energetic fuel, and when we use it, we don’t have to use as much of the other fuels. It’s a win-win for everyone.”

not a sexy fortune 100 company, but our DC Water started using biodiesel in The performance of their vehicles and choices mean just as much. If we don’t 2009 on its own initiative, but not before equipment is carefully monitored. “We do it in Washington D.C., where else are checking with the manufacturers of the look at the performance, efficiency and we going to do it?” engines they were using. The authority longevity on an ongoing basis. Since also needed to secure the cooperation of introducing biodiesel, we have seen The authority’s other sustainability the city government as it buys all its fuel no negative impact and in fact, often efforts include the promotion of from the city. “We had to make sure they improvements. clean waterways and the reduction had the infrastructure in place,” he said. of combined sewer overflows. “Biodiesel plays a significant role Working with the D.C. Department DC Water adjusts its fuel blends based because it is a viable, energetic fuel, and of Transportation, the authority has on the weather and equipment type, when we use it, we don’t have to use as installed permeable pavement that Fitzgerald explained, and they have much of the other fuels,” he said. “It’s a minimizes storm runoff into the never experienced any problems with win-win for everyone.” combined sewer system. biodiesel fuel quality.

Ron S. Flowers, President, RK Solutions LLC with Timothy Fitzgerald

Biodiesel Success Stories 37 Fleet

Biodiesel really fits right into what we do, we are a very green company

lorida Power & Light Company producer of renewable power from wind The biodiesel program began quietly embraces environmental and solar, and it powers its entire fleet in 1999, when the utility authorized stewardship as a core value, of diesel vehicles and equipment with its wet-hose fuel supplier to begin and they have used biodiesel biodiesel blends. filling many diesel vehicles and pieces regularly for nearly 20 years – of equipment with B20. The utility did Patti Earley, FPL’s Fleet Fuels Operations one vital component of their corporate not alert employees to the change but F Specialist, manages fuel for 3,900 responsibility strategy. tracked maintenance records over a six- vehicles that serve and support 4.9 month period. No issues were detected, The utility is a subsidiary of NextEra million customer accounts in 35 counties. and employees reported no performance Energy, which is the world’s largest “Biodiesel really fits right in to what we changes, so the utility made the switch do,” she said. “We are official, and they have been using a very green company.” biodiesel blends fleet-wide ever since. Biodiesel helps FPL Due to the 2004 hurricane season, meet its alternative the utility decided it needed its own energy commitments fuel storage because of shortages under the Energy that hurricanes have caused. The fleet Policy Act (EPAct) by department leased a 2-million gallon reducing petroleum tank in Miami to store their diesel before consumption in refurbishing a 4-million gallon tank about vehicles. Through its four years ago. “Last year when Irma use of electric, hybrid hit, we had 3.3 million gallons in it. We and biodiesel vehicles, keep it at that level during storm season, the utility avoided because there are extreme fuel shortages using 690,000 gallons in a hurricane. Having the fuel on hand of petroleum fuel in insures our restoration isn’t delayed 2017 and reduced CO 2 because we can’t find fuel,” she said. emissions by 6,700 tons. More than half Earley said the fleet has used blends of those benefits up to B35 with no problem but has were achieved with now standardized at B20 so that it can biodiesel. “We over- maintain a consistent standard across comply every year all operations. FPL started as a biodiesel by a large number customer only but eventually became because of the amount a purveyor. “We do a lot of outreach Patti Earley of bio we burn,” she through the Clean Cities program and to Fleet Fuels Operations Specialist said. FPL promotes its municipalities across the state,” she said. Florida Power & Light green fuel policies with “After a number of these presentations, messaging on its trucks municipal officials would ask if they could and storage tanks. buy from us.”

38 Biodiesel Success Stories In the interest of expanding biodiesel they cannot afford to have fuel-related whenever possible but they also bring B99 usage, the utility now sells biodiesel issues. “When Hurricane Irma hit last year, into the state by rail. blends under their own Earth Era brand. we had a workforce of 28,000 restoring The utility has a new fuel facility coming power to customers. We had over 150 Earley appreciates the simplicity of FPL’s on line in Port Everglades with a B99 pieces of fueling equipment doing 14,000 fuel program. “The great thing about tank, an ultra low sulfur diesel tank and fuel transactions a night and many of biodiesel is it is a drop-in fuel You don’t injection blending equipment. “This facility those vehicles were burning B20 with no make any changes to fixed fuel sites or will give us the ability to easily change the issues, she said. changes to the transport equipment. You blend level in our fuel,” she said. don’t have to make any changes to the The utility also hauled biodiesel blends equipment it is being pumped into. If one in fuel transports to New Jersey during of our trucks needs to go to a filling station the Super Storm Sandy restoration in and get straight ultra low sulfur diesel and 2012. “We pumped it into vehicles from a “The great thing then go back to B20 when we fill it the number of other utilities and there were next time, it doesn’t matter.” no issues, even in the cold.” about biodiesel is That flexibility is particularly valuable FPL is particular about the specifications in utility work, because repair crews and of its fuel. “We buy fuel at ASTM spec, but it is a drop-in fuel. equipment travel across the country there are some parameters we require a to provide mutual aid in the event of tighter standard on, including glycerin, acid You don’t make any hurricanes and other catastrophes. They and oxidation stability, because we have switch from straight diesel to biodiesel hot, humid conditions,” she explained. The blends depending on where they are and utility works with local biodiesel producers changes to fixed fuel sites or changes to the transport equipment.”

lbs protein produced 32 for each gallon of biodiesel

Biodiesel Success Stories 39 BiodieselSUCCESS STORIES

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40 Biodiesel Success Stories