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Bridging the Biodiesel Gap Draft Presentation with the Environmental Protection Agency February, 2009 Distributor Presentation

Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

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Page 1: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap Draft Presentation with the

Environmental Protection Agency February, 2009

Distributor Presentation

Page 2: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

•  Vision –  Transition to Biodiesel –  Energy Context

–  What exactly is biodiesel? –  How is it different from other biofuels? –  Emissions, Quality standards, Tanks and Storage –  Market trends and challenges - industry and policy –  Pilot programs, Sampling, Record Keeping –  Marketing your success

•  Current challenges and research directions •  Conclusions and resources

Bridging the Biodiesel Gap

Page 3: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

Page 4: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

Page 5: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Transition to Biodiesel

GoFleet-WideAfterPilot

MarkettheBenefits

DocumentResultsOngoing

PilotLowLevelBlends&Sample6months–1year

ContactFuelDistributor1–3weeks

Educate&Research&PLAN1month

Step 9

Steps 8 (Plus 1-7)

Step 7

Steps 5-6

Step 4

Steps 1-3

Bridging the Biodiesel Gap

Page 6: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Appointing a Project Manager (like a fleet maintenance or hands-on person interested in biodiesel), then have them:

1. Read the Department of Energyʼs “Biodiesel Handling and Use Guidelines”

2. Reach out to fleet operators of biodiesel blends with similar fleet sizes and applications.

3. Require a D-6751 ASTM spec sheet from the distributor to ensure that your fuel has been tested to meet the most recent specifications.

Bridging the Biodiesel Gap

Step 1: Educate Step 1

Page 7: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

  Handling and Use

  Compatibility and Cost   High Blend Characteristics

•  Biodiesel Solvency

•  Cold Flow– Specify your feedstocks!

•  Microbial Growth

•  Oxidative Stability– Ask about additives

  Know your trucks and your people!

Bridging the Biodiesel Gap

Step 2: Research Step 2

Page 8: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

•  Clean ALL tanks and ALL storage •  Get the rubber OUT (Viton & Teflon) •  Review containment regulations and compliance •  Work hard for maintenance buy-in and create a solid maintenance schedule •  Apply a filtration system to at least 5 microns •  Use protocols to prevent contamination •  Create paper trails from supplier to end user You can be stopped by gelling, poor maintenance: clogged filters, dirty tanks and infected tanks– BUT NOT BY GOOD FUEL

Bridging the Biodiesel Gap

Step 3: PLAN Step 3

Page 9: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

Step 4: Contact Fuel Distributor   Visual inspection of quality operations- Permits and ethics?

  BQ 9000 equivalent program- Procedural compliance?

  Feedstock choices impact sustainability and cloud point

  Certificates of Analysis- Who does their COA? Lab on site?

  Availability– reliable producers?

  Customer service- reference check? Good paper trail?

  Cost history- Bulk discount levels?

  Location– transportation surcharges?

  Experience – years of distribution or production?

Step 4

Page 10: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

  It is wise to start small– have your PROJECT MANAGER focus on logistics (feedstock control, producer/distributor relations, individual trucks, tanks, piping, filters, education)

  Individual engines/tanks may demonstrate different carbon deposit build-ups. Have spare parts on-hand, keep an eye on drips, & change oil

  To minimize the possibility of disturbance to your fleet systems apply lower blend levels at first to a few vehicles (if feasible) and work up as you and your fleet adjust to the new fuel

  Biodiesel is easy to phase in and out, so you can maintain flexibility in technology deployment

  Never let your guard down- feedstocks and producers do change

Bridging the Biodiesel Gap

Step 5: Pilot Step 5

Page 11: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

USE A FIELD TEST TO PRE-DETERMINE QUALITY Batch-specific samples of B100 for testing critical parameters, such as ʻBiodiesel Quality Status Reportʼ

Distributor has a quality program* that includes: 1. Acid Number/oxidative stability 2. Free and total Glycerin 3. Flash point 4. Cold Flow 5. Water and sediment

Fleet Manager has a quality program* that includes above & secure storage: 1. Remote sensor log 2. Sticking for water 3. Bacterial growth (filter changes) 4. Acid number (fuel degradation)

quality program*-- will vary by location, fleet, distributor, use, etc

Bridging the Biodiesel Gap

Step 6

Step 6: Sampling

Page 12: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Everything from a broken headlight to a faulty alternator has been blamed on biodiesel. Without a strict record keeping regime, there is no means of documenting maintenance and cost impacts of biodiesel.

This can be especially effective if you have a solid record keeping system already in place. •  Biodiesel Program File

1.  Create a vehicle list in Excel 2.  Educational Resources 3.  Training and Quality Processes 4.  Check Lists

•  Infrastructure 1.  Create a tank list in Excel 2.  Tank drawings 3.  Tank History Bridging the Biodiesel Gap

Audit is intended to establish baseline of system and verify old tanks are clean for new good clean fuel before a fleet begins a B20 program

Step 7: Record Keeping Step 7

Page 13: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Have you taken step 1-7 again?

Approach pyramid again and review to be sure all elements from compatibility, storage and fueling are in place.

•  B5 pilot does not mean you are ready for B20.

•  B20 Pilot does not mean you are ready for B20 Fleet-wide.

•  B20 Fleet-wide does not mean you are ready for high blend levels. Bridging the Biodiesel Gap

Step 8: Go Fleet Wide Step 8

Page 14: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

By diversifying your fueling sources and stabilizing prices, your company can save money and prepare for the future.

Beyond the economic advantages, many companies are finding that by doing the right thing for the environment, our national security, and vehicle performance they are directly benefiting from the marketing advantages of using biodiesel.

Stickers on vehicles, press releases about environmental responsibility, participation in industry panels, and leadership in the realm of sustainability all come with biodiesel use. Over 700 fleets currently use biodiesel or a biodiesel blend.

Your fleet can be next.

Bridging the Biodiesel Gap

Step 9

Step 9: Market your Success

Page 15: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

Page 16: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

• Fuel and labor prices: It now costs nearly twice as much as a year ago to grow, harvest and ship commodities to Europe from the Gulf Coast of the U.S.

•  Dollar decline: Makes food imports more expensive at the store and creates greater demand for US agricultural exports.

• Trade restrictions: Major exporting countries are applying export taxes and/or bans on exports to control local prices, in effect reducing global supply.

• Increased food demand in developing countries: Diets are changing in countries like China and India, moving from starchy foods to meat and poultry. 10-16lbs of grain for one lb of meat.

• Climate change: Severe weather events (drought, heat, rain) in farming regions around the world have reduced harvests of cereal crops.

•  Speculators: have flocked onto commodity exchanges, pushing futures prices for grains above those that actual supply and demand would probably dictate.

Bridging the Biodiesel Gap

Step 1

Page 17: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

•  Limited petroleum supply

•  National energy security

•  Need to reduce greenhouse gas emissions

Bridging the Biodiesel Gap

Step 1

Page 18: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

Step 1

Old Oil wells 100 : 1

Current Oil wells 15 : 1

Corn based ethanol 1.3 : 1

Sugar based ethanol 8 : 1

Soy based biodiesel 3.5 : 1

Tallow/ Waste vegetable Oil 4-7 : 1

Page 19: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Fuel Density g/cm3

Net Heating Value Avg.

Btu/gal. % Difference

vs. No. 2 Diesel Avg.

No. 2 Diesel 0.850 129,500

Biodiesel (B100) 0.880 118,296 8.65 %

B20 Blend (B20) 0.856* 127,259* 1.73 %*

B2 Blend (B2) 0.851* 129,276* 0.17 %*

Bridging the Biodiesel Gap

Step 1

Energy Content

Page 20: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

Page 21: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

•  Biodiesel: Alkyl esters of long chain fatty acids –  Non-toxic, biodegradable, renewable fuel

derived from vegetable oils or animal fats

•  Fastest growing fuel meeting ASTM (D 6751)

•  May be used in any diesel engine

•  May be blended with petroleum diesel at any level

Bridging the Biodiesel Gap

Step 1

Page 22: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Virgin vegetable

oils

Animal fats or used cooking oils

Pre-treatment Transesterification reaction Purification

Methanol

Catalyst

Biodiesel 90%

Glycerin 10%

Methanol recovery

Bridging the Biodiesel Gap

Step 1

Page 23: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

  Complete Reaction/Removal of Glycerin Insured through total/free glycerin spec

  Removal of Catalyst Insured through sulfated ash spec

  Removal of Alcohol Insured through flash point spec

  Absence of Free Fatty Acids Insured through acid value spec

Step 1

Page 24: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

Step 1

Page 25: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

•  Passenger vehicles

•  Commercial & municipal fleets

•  Agricultural & construction equipment

•  Railroads & marine

•  Heating

•  OEM warrantyissues remain

Heavy duty vehicles turnover on average every 28 years compared to light dutyvehicles that turnover every 15 years.

24 million children in the U.S step into school buses

Bridging the Biodiesel Gap

Step 1

Page 26: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

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Bridging the Biodiesel Gap

Straight Vegetable Oil: Triglyceridesused directly as fuel

Biodiesel: Triglycerides converted to methyl ester fuel: ASTM D-6751

Step 1

Page 28: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

•  SVO contains glycerin

•  SVO Benefits –  waste vegetable oil can

be cheap or free –  limited filtering required

•  SVO Barriers –  non-standardized fuel –  cannot blend –  carbon deposits

•  SVO: –  “engine conversion”

•  Biodiesel replaces glycerin with alcohol

•  Biodiesel Benefits –  no engine modifications –  ASTM 6751 standard –  lubricity improvements –  blend at any level –  emissions reductions

•  Biodiesel Barriers –  requires fuel processing

•  Biodiesel: –  “Fuel conversion”

Bridging the Biodiesel Gap

No/Yes

Step 1

Page 29: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

ETHANOL Starting material: Sugars/starches (corn, sugar cane, sugar beets, etc.) Process: Fermentation Product: Alcohol Energy Balance: 1.3 : 1 Application: Spark ignition engines

(gasoline substitute)

BIODIESEL Starting material: Oils/fats (soybean, palm, poultry fat, etc.) Process: Transesterification Product: Alkyl esters Energy Balance: 3.5 : 1 Application: Compression engines

(diesel substitute) Bridging the Biodiesel Gap

Step 1

Page 30: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

DIESEL ULSD BIODIESEL Sulfur: 500 ppm Sulfur : 15 ppm Sulfur : 2-15 ppm

Particulates: Baseline Process: 13 % less Process: 13 % less

Energy: Baseline Energy: 1% less Energy: 5-8.5% less

Water: up to 500ppm – 50ppm

Water: up to 500ppm- 500ppm

Water: up to 1200ppm-1800ppm

Step 1

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Bridging the Biodiesel Gap

B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) •  Lubricity enhancer in ultra-low sulfur diesel •  “Transparent” to fleets and public •  October 2008: Allowance of up to 5% biodiesel into ASTM D 975

B20 (20% biodiesel, 80% petroleum diesel) •  Eligible for EPAct credits (State & Federal fleets) •  Noticeable improvements in smoke and odor •  Easy substitute– less storage, winter & compatibility issues •  October 2008: ASTM spec for B6-B20 blends has been approved

High Blends (up to 100% biodiesel) •  Sensitive markets: school buses, agriculture, marine, construction, parks •  Immediate reduction in emissions •  Some precautions necessary •  October 2008: ASTM spec for B100 has been approved and updated

Step 1

Page 32: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

BIODIESEL

• ASTM D-6751

• Defined B5 as ASTM

• Defined up to B20 as ASTM

• Blends with Diesel at all levels

RENEWABLE DIESEL

•  Fats and oils refined at petroleum refineries-- Non Ester Renewable Diesel (NERD)

• Unrefined Oils- SVO/WVO

• Partially Esterified Oils

• Fisher Trophes: Synthetic Diesel from Biomass, Coal, LNG

Bridging the Biodiesel Gap

Step 1

Page 33: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

•  Starts with a demand side economics (Public Transit, Bike lanes, Eat /purchase locally). Petroleum baseline.

•  Contract requirements for sustainability

•  Depending on Scale: Field, Farm, Region, State, etc.

•  We must ask: feedstock to fuel •  Does this enhance energy and/or economic security? •  Does this protect the environment and human health? •  Is it long-term? How long? Does it meet statuary laws?

•  Development of sustainable metrics/labeling Bridging the Biodiesel Gap

“development that meets the needs of the present without compromising the ability of future generations to meet their own needs”

Step 1

Page 34: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

For the state:• Reduced reliance on petroleum & crude oil products, all finite resources• Reduced emissions of greenhouse gases.• Decreased reliance on external/foreign supplies of oil• Increased security for energy supplies

For the Environment:• Recycling of waste oils and fats into fuel• Improved air quality, particularly in high smog & population dense areas.• Reduced pollution for water and soil sources• Positive environmental impacts with sustainable production of feedstock's

Bridging the Biodiesel Gap

Step 1

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Bridging the Biodiesel Gap

8 Principles and 40 Criteria for Sustainability Certification 1.  Transparency 2.  Compliance with Applicable Laws and Regulations 3.  Long-Term Economic Viability 4.  Best Practices for Growers and Millers 5.  Environmental Responsibility, Conservation of Natural

Resources and Biodiversity 6.  Consideration of Employees, Individuals & Communities

Affected by Growers and Mills 7.  Responsible Development of New Planting 8.  Continuous Improvement Key Question: Can It Guarantee Sustainable Production?

www.rspo.org/

Step 1

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Bridging the Biodiesel Gap

Processing Technology is Continually being adapted for decentralized Rural and Urban Biomass production for fleets and distributors.

When sourcing your fuel begin looking for this local, sustainable optional and begin by inquiring with your local public and private utility operators. For example…

The San Francisco PUC launched the SFGreasecycle program to solve the problem of grease inappropriately being disposed of down the drain. By offering collection of all types of Fats, Oils and Grease (FOG) sufficient quantities are generated for local biofuel production, ultimately designated for the Public Fleet.

www.sfgreasecycle.org

Step 1

Page 37: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Bridging the Biodiesel Gap

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Life cycle emissions: Total emissions calculated over all phases of fuel production and use

Bridging the Biodiesel Gap

Step 1

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The combustion of biofuels does not result in the addition of new CO2 to the atmosphere

Bridging the Biodiesel Gap

Step 1

Page 40: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Sources: A Comprehensive Analysis of Biodiesel Impacts on Exhaust Emissions, EPA, 2002 (compared to petroleum diesel)

a An Overview of Biodiesel and Petroleum Diesel Life Cycles, DOE/USDA, 1998 b Proceedings of the National Academy of Sciences, 2006 c Based on Effects of Biodiesel Blends on Vehicle Emissions , NREL/MP-540-40554, October 2006

Bridging the Biodiesel Gap

47%

78%a

41%b 48%

67%

100%

80%

2+/-%c

10%a

Step 1

Page 41: Bridging the Biodiesel Gap Draft Presentation with the ... · 2/20/2009  · Bridging the Biodiesel Gap B2 – B5 (2-5% biodiesel, 95-98% petroleum diesel) • Lubricity enhancer

Sources: A Comprehensive Analysis of Biodiesel Impacts on Exhaust Emissions, EPA, 2002 aAn Overview of Biodiesel and Petroleum Diesel Life Cycles, DOE/USDA, 1998 bProceedings of the National Academy of Sciences, 2006

c Based on Effects of Biodiesel Blends on Vehicle Emissions , NREL/MP-540-40554, October 2006

Bridging the Biodiesel Gap

16% 17%

12%

19% 22%

+2%

8.2%b

16%a

-2%c

Step 1

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“On average B20 caused PM and CO emissions to be reduced by 16% to 17% and HC emissions to be reduced by 12% relative to petroleum diesel.”

“Considering all of the

data available, we conclude that B20 has

no net impact on NOx.” Source: Effects of Biodiesel Blends on Vehicle Emissions , NREL/MP-540-40554, October 2006

Bridging the Biodiesel Gap

Step 1

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Bridging the Biodiesel Gap

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ASTM D 6751- Quality Standard

Bridging the Biodiesel Gap

Step 1

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ASTM D7467-08 for B6 - B20 Step 1

Bridging the Biodiesel Gap

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Bridging the Biodiesel Gap

* Published October 1, 2008 Copyright © ASMT International

Step 1

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Bridging the Biodiesel Gap

•  Biodiesel Industryʼs “Good Housekeeping” TM seal of approval for production & distribution companies •  Quality Control System covers biodiesel manufacturing, sampling, testing, blending, storage, shipping, distribution •  Web Site www.bq-9000.org/

Step 1

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Bridging the Biodiesel Gap

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TheBiodieselIndustry

OEM Warranty

Fleets

Consumers & Military

Distributors/ Retailers

Blenders

Biodiesel Producers

Crushers/ Renderers

Feedstock Producers

Biodiesel Industry

Bridging the Biodiesel Gap

Step 1

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Data source: Energy Information Administration, U.S. DOE

U.S. Consumption of Distillate Fuel Oil Products, 1945 - 2030

Bridging the Biodiesel Gap

Step 1

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Table: Hirsch, R.L. (2005), SAIC (report commissioned by DOE)

Bridging the Biodiesel Gap

Projections of the peaking of world oil production

Step 1

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Bridging the Biodiesel Gap

We currently import 55% of our daily oil supply, a figure that is forecasted to rise to 70% by 2025.

Step 1

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Source: National Biodiesel Board

2005: 75 Mgal < 1% U.S. diesel use ~12.5% EU biodiesel production < 3% U.S. ethanol production

2005 EU Producton level

2011: 700 Mgal (projected) Source: USDA (2007) Agricultural Projections to 2016

Bridging the Biodiesel Gap

2006: 250 Mgal

2007: 450 Mgal

Step 1

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Soybean

Mustard

Safflower Sunflower

Canola(rapeseed)

Palm

Camelinasativa Jatropha

Animalfats

Algae Bridging the Biodiesel Gap

YellowGrease

Step 1

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Feedstock variation:

•  Cold Flow (Filter plugging)

•  Color (E and natural preservatives)

•  Iodine (gumming tendencies) •  NOx (Contributes to local smog)

•  Cetane (combustibility)

•  Bulk modulus (compressibility)

•  Stability (acid –corrosive)

•  Sulfur (0+>15ppt)

Bridging the Biodiesel Gap

Step 1

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Average monthly price

Bridging the Biodiesel Gap

Step 1

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Data source: US DOE Office of Energy Efficiency and Renewable Energy

• Relative to Diesel Prices • Diversifies your fuel supply while providing performance benefits • Price Stability • Low-Cost insurance-- PREPARE

Bridging the Biodiesel Gap

Step 1

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Taxes & Fees Included in the Retail Price Per Gallon

Bridging the Biodiesel Gap

Federal Fuel Tax $.244

State Fuel Tax $.18

State Underground Storage Tank Fee (UST)

$.014

Sales Tax* * Sales Tax is determined at point of sale - varies by city and county

Total (approx) - $0.75 per gallon

Step 1

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Can I produce it myself?

Bridging the Biodiesel Gap

  Safety Concerns •  Methanol is hazardous •  By-products (removal and disposal)

  Quality Concerns •  Hurting the vehicle •  Market penetration

  Legal Concerns •  Permitting •  Taxes

Step 1

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Source: National Biodiesel Board

Bridging the Biodiesel Gap

Biodiesel Production by fiscal year 2007 Step 1

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Source: National Biodiesel Board

Bridging the Biodiesel Gap

U.S. Commercial Biodiesel Plants

2.61 Billion gallon capacity

Step 1

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Bridging the Biodiesel Gap

AB 32 and Carbon Share What the Carbon Share is: “In 2006 California passed the Global Warming Solutions Act (AB32), committing the state to reduce carbon dioxide emissions to 1990 levels by 2020. Cap and dividend is a simple, market based way to reduce CO2 emissions without reducing household incomes. It caps fossil fuel supplies, makes polluters pay, and returns the revenue to everyone equally. AB32 gave the California Air Resources Board (CARB) the authority to impose an economy -wide cap on state-wide greenhouse gas emissions

Regulated companies like fuel distributors and fleets will buy the shares and return it to the government agency.

www.carbonshare.org

Step 1

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•  MN and WA B2 Mandate (MN expected to add $206M to economy & 973 new jobs •  33 other states have laws– another 135+ bills introduced in ʼ07 •  Louisiana, Minnesota, Oregon, and Washington have approved B2 standards •  New Mexico and Missouri have authorized a B5 requirement

Bridging the Biodiesel Gap

Step 1

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Current CA Legislation

Source: http://gov.ca.gov

Bridging the Biodiesel Gap

•  State Alternative Fuels Plan Goals (AB 1007) - 2005 •  9 percent by 2012 increasing to 26 percent by 2022

•  Global Warming Solutions Act (AB 32) - September 2006 •  Cap on greenhouse gas emissions: 1990 levels by 2020 and beyond •  Mandatory emissions reporting & develop market-based compliance program

•  Low Carbon Fuel Standard (Executive Order) - January 2007 •  Reduce carbon intensity of passenger vehicle fuels by 10% or more by 2020 •  Biodiesel reduces “carbon intensity” more than other alternatives

•  The Alternative and Renewable Fuel and Technology Program (AB 118)- October 2007

CEC: $120 million/year for over 7 years- Alternative & Renewable Fuel and Vehicle Technology Program ARB: $80 million/year for over 7 years- Enhanced Fleet Modernization and Air Quality Improvement.

Step 1

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Bridging the Biodiesel Gap

  EPA regulates Renewable Identification Numbers (RINs) to track compliance and volumes

  RINs MUST be tracked by Product Transfer Documents (PTDs) whenever change of ownership occurs

  For more information on creating and tracking: http://www.epa.gov/otaq/renewablefuels/index.htm

Step 1

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Bridging the Biodiesel Gap

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You may save money in the end through reduced maintenance, improved marketing or diesel price fluctuations. You should ensure that you dedicate the initial funds and time for a smooth transition.

The transition to a biodiesel blend may include some upfront costs, such as a component compatibility review, that may save you money in the long run.

•  You may need to install or clean out a tank •  Dedicate employee training time •  Purchase filters, hoses, etc. for increased initial maintenance •  Be prepared to pay more or less for the blend

Bridging the Biodiesel Gap

Compatibility and Cost Step 2

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High Blend Characteristics (+) Lubricity 1% biodiesel replaces 65% of lacking lubricity of ULSD.

2% or higher totally replaces it = improved performance

Cetane # Higher cetane = improved combustibility – varies with feedstock

Safety in Handling Higher flash point and biodegradability= improved safety and handling

Less Smoke Less soot and toxics = reduction in plume and odor. B100 exhibits up to 47% decrease of particulates that carry the toxic chemicals resulting from combustion.

Quieter More complete combustion + lubricity = reduction of knocks and pings (noticeable at idle)

Lower Toxicity Absence of aromatics = reduced PAHs (cancer causing compounds)– Diesel has 20-25% aromatics

Bridging the Biodiesel Gap

Step 2

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High Blend Characteristics (-) Solvency Change fuel filter frequently as biodiesel will remove

accumulated deposits. Check fuel lines. Paint precautions.

Fuel Gelling B100 @ 20-55+º depending on feedstock; 0-25º for B20; recommend lower blends in winter

Microbial Growth More organically digestible by bacteria that commonly impact diesel systems

Elastomer, Pump and Seal Compatibility

Check compatibility/replace parts for engines prior to 1994

Oxidation Stability Donʼt store for long periods (6 months+) or expose to sunlight. Old fuel can become acidic and form sediments and varnish. Additives can retard this.

Energy Content 8% fewer BTUʼs per gallon, but also higher cetane #, lubricity, better combustion offsets lower BTU.

Bridging the Biodiesel Gap

Step 2

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Strong Solvency can (and will):

•  Lift sludge from tanks and lines i.e. fuel filter changing– change your filters after 2 days/months.

•  Can remove paint without cleaning

•  Degrade rubber parts- elastomer compatibility

•  Be confused with microbial growth or fuel quality– all of which can impact filter plugging

•  Pure biodiesel will dissolve asphalt– stop drips. Bridging the Biodiesel Gap

Step 2

Biodiesel Solvency

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Bridging the Biodiesel Gap

Sediments, bacterial slime, precipitates and free water can be trapped by filters along with any insoluble impurities associated with the fuel But…deteriorated fuel & acids can damage engines

Step 2

Biodiesel Solvency: Some problems get caught

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Cold weather can cloud and even gel any diesel fuel, including biodiesel.

As of 2008, all ASTM biodiesel has been cold soak tested to help determine cold flow. In cold weather, a B20 will have a cloud point approximately 2 to 10° Fahrenheit.

•  cloud point- crystals are formed •  pour point- crystals impact flow •  cold filter plugging point- flow impacts filter

B20 has been used successfully in climates below -20ºF

Similar precautions employed for petroleum diesel in cold weather are needed for fueling with B20.

•  blending with #1 diesel (kerosene) •  using fuel heaters and parking indoors •  adding a cold-flow improvement additive

Bridging the Biodiesel Gap

Step 2

Cold Flow- Fuel Gelling

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Source: NRELʼs Biodiesel Handling and Use Guidelines

Bridging the Biodiesel Gap

Step 2

Cold Flow- Fuel Gelling

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Bridging the Biodiesel Gap

•  Was the fuel exposed to cold temperatures?

•  Did it get cold and then warm up?

•  Cold flow is not Cold Filter Plug Point • 2-11 degree below Cloud point is estimated as your CFPP

•  Have you checked fuel (diesel and biodiesel) specifications?

•  When was your fuel produced?

•  Were additives blended? By whom?

Step 2

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Water/fuel interface is where the bacteria lives. Monitor infrastructure regularly:

•  Stick the tank with modified water detecting paste • Sargel • Color Kut • Algae-X Test Kit (take sample for growth results) • Fleet Biodiesel Test Kit

•  Install desiccant filters for vents

Biocides are recommended for conventional and biodiesel fuels wherever biological growth in the fuel has been a problem. Biocides are toxic – use sparingly at recommended dosages. Eliminate all water from tanks.

If biological contamination is a problem, water contamination needs to be controlled at the fuel-water interface. Anaerobic colonies, usually sulfur reducing, can be active in sediments on tank surfaces and cause corrosion. Same biocides that work on diesel will work with biodiesel.

Bridging the Biodiesel Gap

Microbial Growth Step 2

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Bridging the Biodiesel Gap

•  Have you tested for water?

•  Have you ensured this is not a sludge or cold flow issue?

•  Have you tested for microbial growth? • Field test kit • Lab analysis

•  Have you shocked your tank with biocides?

•  Increased filter changing intervals will be an indication of growth

Step 2

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•  ASTM D6751 demands 3 hours minimal

•  Some distributors are concerned that the 3 hours is not enough because of excessive heat or prolonged storage by the end user.

•  Re-test for oxidative stability.

•  The biodiesel specification contains parameters for insuring adequate fuel stability for normal applications

•  The shelf life of biodiesel blends is recommended by NBB as 6 months unless the fuel is treated with additives and protected from water intrusion– in which case it can extend the shelf life.

Bridging the Biodiesel Gap 8/31/2008

Step 2

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Bridging the Biodiesel Gap

•  Have you checked the condition of you vehicle tank or storage tanks?

•  When have you checked fuel filters and tank filters?

•  Have you checked equipment compatibility? •  Tanks at Distributor and Fleet and vehicle? •  Hoses at Distributor and Fleet and vehicle?

•  Trace your fuel. Was the delivery method checked? •  Delivery tanker washed out? •  Did the tanker clean out? •  Tanks tested for water?

•  How long have you been using?

• Have you re-checked stability and water parameters as a rusty or contaminated tank can negatively impact these parameters easily?

Step 2

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Bridging the Biodiesel Gap

Mechanics can tell customers: “You got bad fuel” “We have to drain your tank” “Your fuel system is junked-up” “Your fuel pump should be changed”

All this means = CHANGE YOUR FUEL FILTER and see if that works first.

Mechanics push more expensive solutions often because fuel filter changing with regular diesel will not solve typical problems. They also donʼt understand how frequently fuel filters need to be changed, if they donʼt work with biodiesel– this is not a typical response. Mechanics tell customer: “Your fuel pump should be changed”– so clarify what is wrong with it.

Step 2

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Bridging the Biodiesel Gap

•  Is the elastomer in question listed as a known biodiesel compatible material?

•  Have you checked all transfer hoses and tanks for fuel residues that was put in the tank/hose/pump prior to biodiesel?

•  Is there evidence of sediment or rust particles in your tank?

•  When was your fuel produced? How was it stored? Was it exposed to heat?

•  Have you re-tested for oxidation stability? Did the fuel contain anti-oxidants? Is this dose documented?

Seals leaking? Or are mechanics of it failing? Are the vehicle or transfer hoses hard? Soft?

See NBB “Materials Compatibility”

Step 2

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Bridging the Biodiesel Gap

•  Identify the date of the first symptom •  Go back to your samples •  Hire a Consultant to analyze the Blend samples. •  Pull samples from the storage tank –send to consultant/ laboratory for analysis. •  Review your Blend Sheets from the date of the first issue •  Review the COA (Certificate of Analysis) from your Supplier –send to the consultant/laboratory •  Construct a Work Plan to solve your Customerʼs issue.

When quality standards fail and customer concerns grow. What do you do?

Step 2

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Bridging the Biodiesel Gap

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Bridging the Biodiesel Gap

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  Biodiesel is electrically conductive = more corrosive

  Biodiesel can oxidize: producing corrosive peroxides

  Solvents can degrade elastomers

  Biodiesel effects may be slow to appear –important to system designers and testing organizations

  Biodiesel can exhibit counterintuitive blend level effects

  Biodiesel can be more aggressive when water contaminated

  Biodiesel can be more aggressive in acidic conditions

  Biodiesel can be more aggressive with age Alternative Fuels Lead UST Section/Division of Water Quality State Water Resources Control Board Sacramento, California, February 2008

Bridging the Biodiesel Gap

Compatibility Precautions Step 3

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  Avoid vulnerable metals (Copper, Brass, Lead, Zinc, Tin )

  Avoid off-spec fuel, water, and “old” fuel

  Insist on guarantee of ASTM D6751 fuel quality

  Ask polymer manufacturers for advice

  Select UST system components tested at > 500 hours exposure

  Ask supplier for “Rancimat” test certification on each fuel drop

  Keep everything free of water Robert Hodam, MSE, MBA Alternative Fuels Lead UST Section/Division of Water Quality State Water Resources Control Board Sacramento, California, February 2008

Bridging the Biodiesel Gap

Step 3

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•  NO DIFFERENT THAN DIESEL

•  Dispose of rags properly-

•  Tied into flash point (gasoline is the worst)

•  Rag service

•  Dispose in air tight or water filled

•  Oiled rags can spontaneously combust

Bridging the Biodiesel Gap

Step 3

Absorbent/Rags

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Precaution: Biodiesel is electrically conductive inferring it induces greater corrosion.

Update: Biodiesel is slightly more conductive than diesel. However, the difference is not great enough to induce noticeable corrosion increase. This was proven by the research published by the Steel Tank Institute. Additives are often added to diesel to make it more conductive to reduce fire hazard. Corrosion is not a concern due to electrical conductance in diesel or biodiesel.

Bridging the Biodiesel Gap

Biodiesel Compatibility Step 3

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Precaution: Biodiesel can oxidize: producing corrosive peroxides.

Update: Recent ASTM Biodiesel specifications ensure that oxidation stability and acid number are sufficient to avoid these concerns.

When biodiesel oxidation does occur, the peroxides formed are nothing like H202 that is normally considered peroxide.

Peroxides, however, are the first step in oxidation and will lead to fuel deterioration through polymer formation and acids.

Bridging the Biodiesel Gap

Step 3

Biodiesel Compatibility

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Precaution: Biodiesel has frequently been out of spec and contaminated with corrosives.

Update: Fuel quality has been a persistent problem in the last several years. While the initial National Renewable Energy Laboratory survey on quality indicated perhaps 50%* of biodiesel on the market place was out of specification, the current survey published by NREL in March 2008 reported over 90% of biodiesel nationwide meets ASTM D-6751

ASTM compliance through enforcement of existing state and federal fuel quality regulations should always be a priority.

Bridging the Biodiesel Gap

Step 3

Biodiesel Compatibility

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Precaution: Water contamination makes biodiesel more aggressive.

Update: Water contamination is a problem for any fuel. Free water is extremely corrosive . Dissolved phase water, in turn, can increase the conductivity of the fuel, diesel or biodiesel-- and therefore accelerate electrolysis.

Bridging the Biodiesel Gap

Step 3

Biodiesel Compatibility

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Precaution: Acidic conditions make biodiesel more aggressive to some polymers.

Update: Acidic contaminants are controlled in Biodiesel fuel quality by measuring Total Acid Number (TAN) . The ASTM specification for TAN is 0.5 mg KOH/g . The national average acid number is 0.3 mg KOH/g.

These low acid values means these fuels are non-aggressive with respect to acid content. However, oxidized biodiesel (out of specification) can form acids over time in the presence of heat, moisture, bacteria and metal ions.

Biodiesel which meets the legal requirement to meet the ASTM specification is not aggressive to most polymers, although always confirm compatibility with the manufacturers.

Bridging the Biodiesel Gap

Step 3

Biodiesel Compatibility

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Precaution: Biodiesel may degrade elastomers cured using metal oxides.

Update: This formulation is the only formulation to present elastomeric swelling, and is the one on which based all previous suppositions. We believe it has no implications for UST systems operating at ambient temperatures.

Bridging the Biodiesel Gap

Biodiesel Compatibility Step 3

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Precaution: Changes in elastomeric properties may be delayed.

Update: While this is true on certain elastomers, long-term durability tests referenced from a recent DuPont study were carried out at 125 degrees C.

This well exceeds the temperatures experienced by UST systems, and this failure mode does not occur at lower temperatures.

To extrapolate this accelerated test to real world conditions would equate to 3 or 4 decades of trouble-free use at ambient storage temperatures and normal engine operation temperatures.

Bridging the Biodiesel Gap

Biodiesel Compatibility Step 3

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Precaution: Aging makes biodiesel more aggressive.

Update: DuPont data that was conducted at extreme conditions not subjected to by UST systems.

Specifics were not given as to what properties of the biodiesel changed due to aging for this experiment.

The ASTM specification includes oxidative stability as a requirement, so the properties of biodiesel remain constant during its useable shelf-life.

It is presumed that this “aged” biodiesel exceeded some ASTM parameter such as oxidation stability, acid number and water and sediment.

Bridging the Biodiesel Gap

Step 3

Biodiesel Compatibility

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Bridging the Biodiesel Gap

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Field reports indicated a cleaning effect is still a possibility even with the B5 blends, especially if your fuel storage and handling systems are old or have not been carefully maintained.

Depending on the condition and age of your fueling infrastructure, you should clean any fuel tanks that will store biodiesel to remove any build up of sediment before transitioning to biodiesel or a biodiesel blend.

Develop a tank management quality program for your site to ascertain the ongoing status of your fuel and tanks. Take regular bottom samples to verify lack of moisture content and microbial activity. Depending on how quickly you use the fuel an additive may be recommended.

Maintain dry tanks and insist on dry fuel

Bridging the Biodiesel Gap

Tanks and Storage Step 3

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•  What Tank? ALL TANKS!

•  Distributor UST? •  Delivery Tanker? •  Your Storage tank(s)? •  Vehicle Tank?

•  Storage tank materials include: Aluminum, steel, fluorinated polyethylene, Fiberglass, fluorinated polypropylene and Teflon

•  Must meet local requirements for diesel storage

• Should not be stored over 6 months without precautions: •  Testing regularly •  Additives may be used for prolonged storage •  Fuel Rotation- drain and use fuel every 6 months

•  See NBB “Materials Compatibility”

Bridging the Biodiesel Gap

Step 3

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1)  Ideally use a wet/dry stinger to clean tanks Do this now to pay off later:

•  less fuel filter changes •  Less down time •  Less maintenance costs •  May lose contaminated fuel •  May have to do this later anyway

2)  Invest in Bacon Bomb/sample thief to sample bottom of tank for contaminants regularly

3)  Sump pump and wet/dry vacuum

4)  Keep it clean: regular cleaning, changing filters and desiccant filter on top.

Clean to the bottom! Clean means clean!

Bridging the Biodiesel Gap

Step 3

Clean Your Tanks

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Usually your 2” rain cap can be replaced with a desiccant filter. Note: Commonly used in moist environments: •  Size appropriately for air flow rate during fuel delivery •  Size for appropriate desiccant filter changing intervals, ideally change annually (check with manufacturer)

Bridging the Biodiesel Gap

Step 3

Tank Breathers

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  Federal Trade Commission's (FTC) fines of up to $11,000/day for non-compliance

  Labels must be on pumps by Dec. 16, 2008

  6%-20% biodiesel or biomass-based diesel, retailers can either specify the exact blend being vended or can opt for more general language

  Above 20%, the exact blend ratio is required

  For biodiesel, the label will be blue and appear as "BXX"

  The rule doesn't require labels for pumps with 5% or less of either biodiesel blends or biomass-based diesel

  For more information, visit www.ftc.gov

Bridging the Biodiesel Gap

Retailers must Label! Step 3

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Bridging the Biodiesel Gap

  ASTM spec fuel that is improperly stored, transported and handled can go out of specification

  Observed distribution problems include:   Storage tanks contaminated with water or bad fuel

(ULSD or B20); bacteria slime builds in tank and eventually released by biodiesel

  Trucks not clean; carry over residues to fuel   Improper techniques for blending and fueling   Aged fuel – oxidized, precipitates, sediments   Mixed batches of fuel from various suppliers

Step 3

Biodiesel Storage: Fuel Quality Can Deteriorate

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Is switching from petroleum diesel to a biodiesel blend considered a change of stored substance?

“Yes. When any percentage of biodiesel is added to an UST system that has been permitted to store petroleum diesel fuel, it is considered a change of stored substance. California Code of Regulations, Title 23, section 2711 requires the UST owner or operator to inform the local regulatory agency of the hazardous substances that are stored, or are proposed to be stored, in the UST system. Section 2711 also requires the owner or operator to notify the local agency of any changes to that information within thirty days unless required to obtain approval before making the change. We strongly advise local regulatory agencies to require notification from the UST owner/operator PRIOR to any change of stored substance. This will allow the local agency to determine ahead of time whether or not the UST system is suitable for storing the new substance.”

California EPA Kevin L. Graves, P.E. Underground Storage Tank Program Manager February 28, 2008

Bridging the Biodiesel Gap

Step 3

California Biodiesel Storage

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Bridging the Biodiesel Gap

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Bridging the Biodiesel Gap

  pHlip test   Color change- reject fuel (purple= alkaline = soap or methanol or catalyst and

yellow= acidic = old= not stable)   Interface between two layers (no third layer, ideally a mirror surface– although this

takes time and higher temps)

  Confirm the Basics   Oxidative Stability: Can change easily and should be confirmed after leaving your

producer   Water: Because of Biodieselʼs ability to attract and hold water, this parameter should

be checked and confirmed after leaving your producer

  Make decision to take/reject fuel   Spill containment- between tanker and hose and between hose and storage tank   Filter- to at least 10 micron into storage tank (pressure cage is better than not

watching speed flow decrease to determine filter clogging)   Watch for overflow of storage tank

Step 4

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Bridging the Biodiesel Gap

  Sample-do independent 3rd party testing for (at least partial) ASTM D-6751

  COA (Certificate of Analysis)- required before delivery and at time of delivery   Total Glycerin- how much below .24 is it? Even .2 may raise eyebrows   Stability test- When was it performed and is 3 hours enough?   Cloud point- checking your summer and winter parameters

  1 Visual test-- Clarity- can you read a newspaper behind your fuel?   Cloud Point- Get to know your cloud point and check temp of liquid   May be glycerides, but may be lack of filtering or non-compatible   May be a sign of moisture   May be a sign of soaps   If not clear, keep draining out tank until you get the sample you want to see. If you go

beyond 10 gallons, the whole lot is likely bad   Compare feedstocks– changes dramatically (even canola that is not bleached my be

green)

Step 4

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Bridging the Biodiesel Gap

DISTRIBUTOR TRAINING - Comprises information for the purchase and transferring for resale of biodiesel in bulk quantities.

California Air Resources Board, H&S 43026 Definition of "Motor Vehicle Fuel Distributor"

For purposes of this section, "motor vehicle fuel distributor" means any person who (1) refines, blends, or otherwise produces motor vehicle fuel, or (2) with an ownership interest in the fuel, transports or causes the transport of motor vehicle fuel at any point between a production or import facility and a retail outlet, or sells, offers for sale, or supplies motor vehicle fuel to motor vehicle fuel retailers.

Step 4

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To successfully sell biodiesel, the operational characteristics and physical properties of the fuel need to be understood to be able to adequately address customers concerns and requests. After achieving an in depth understanding of what biodiesel is and how it operates in diesel engines, the next steps are to implement biodiesel as another fuel product for sale.

The most important item is the quality of the incoming biodiesel purchased. Different than diesel, protective measures must be maintained to preserve the integrity of the product at each stage of storage, blending and delivery. A Biodiesel Quality Manual should be used as a process management tool that details each step in the distribution chain of the product. In general, this manual will help create the process for getting good quality biodiesel in and checking the quality right as it is sold through a Biodiesel Status Report.

Step 4

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Bridging the Biodiesel Gap

Quality Manual Programs

The National Biodiesel Board (NBB) www.nbb.org has an industry standard program for both Biodiesel Marketers or Distributors and Producers. The BQ-9000 Quality Management Program brings an industry standard approach and provides updated information and developing best management practices.

“The National Biodiesel Accreditation Program is a cooperative and voluntary program for the accreditation of producers and marketers of biodiesel fuel called BQ-9000. The program is a unique combination of the ASTM standard for biodiesel, ASTM D 6751, and a quality systems program that includes storage, sampling, testing, blending, shipping, distribution, and fuel management practices. “

More information at www.bq-9000.org

Step 4

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Bridging the Biodiesel Gap

Purchasing Incoming fuel purchased for distribution must be carefully selected and screened for ongoing quality verification. One bad batch of fuel can cause significant problems for you and your customer. Fuel quality is a constant variable and producers must have adequate manufacturing technology and extensive fuel testing capabilities. Producers must consistently provide quality fuel and be able to provide their own quality management procedures.

Require documentation: •  (certificate of analysis) COA •  Previous (bill of lading) BOL

Step 4

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  Tank cleaning– same issues as above

  Contamination with other petroleum products (i.e gasoline, engine oils)

  Oxidized diesel fuel– can be demonstrated by black slimy material in filter or in tanks

  Blending– can you count?

  Equipment compatibility? Part of hoses?

  Not filtering properly

  Retail station must filter to 5 micron (not very much)

  RINs: basic currency for the RFS program for credits, trading, and use by obligated parties and renewable fuel exporters to demonstrate compliance, as well as track the volumes of renewable fuels

Bridging the Biodiesel Gap

Step 4

Common Distributor Hurdles

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www.biodiesel.org

Source: National Biodiesel Board

May 2008

Bridging the Biodiesel Gap

Step 4

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Bridging the Biodiesel Gap

NearBio is a FREE providing verified list of US biodiesel stations (retail pumps) and driving directions with easy access from your cell phone or your computer! National Biodiesel Board http://www.biodiesel.org/buyingbiodiesel/retailfuelingsites/

http://www.afdc.energy.gov/afdc/stations/find_station.php

Step 4

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Manufacturing Costs Feedstock Soy Yellow Grease

$2.10 (.28 per Lb) $1.35 (.16 per lb) Processing Costs Chemicals .17 .21 Energy .06 .13 Labor .08 .15 Plant overheads* .12 .20 Fixed Charges** .11 .19 Processing Costs .54 .88 Total Manufacturing $2.64 $2.23

Source: Estimations Based on Rendering Magazine, February 2007

Bridging the Biodiesel Gap

Step 4

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Bridging the Biodiesel Gap

Benefits Of Worker Owned Cooperatives   Empowers workers to control their livelihood & workplace

  Encourages community through sharing

  Motivates by worker benefit rather than shareholder

  Inspires prosperity with common social interest

Bulk buys and purchasing consortiums   Combined purchasing power   Industry of volumes   Community organizing   Fuel security

CA Co-opʼs and Bulk Buys Step 4

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Bridging the Biodiesel Gap

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OEM Statements

Bridging the Biodiesel Gap

Step 5

  “New Holland, has approved the use of 20 percent B20 in all of its equipment using New Holland engines.” (www.newholland.com)

  “John Deere is a strong advocate for the production and use of biodiesel fuel. Developing alternative, renewable energy is good for the consumer, the environment, and the American farmer.” (www.deere.com)

  “Cummins Inc. today (March 20, 2007) announced the approval of biodiesel B20 blends for use in its 2002 and later emissions-compliant ISX, ISM, ISL, ISC and ISB engines. This includes the recently released 2007 products.” (www.cummins.com/)

  “Case IH equipment globally is leaving the factory with a biodiesel blend in the tank.  And, all Case IH engines are warranted for approved B5 blends and most engines are warranted up to the B20 level.” (www.caseih.com)

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OEM Statements

Bridging the Biodiesel Gap

Step 5

  Caterpillar has a “Tiered biodiesel blend approval structure based on equipment type and model.” (www.cat.com)

  “GM currently approves the use of certified biodiesel blends of up to 5% (B5 blend biodiesel) in its 2006 Duramax engine sold in the U.S., and is aggressively researching the use of 20% mix for its future diesel models.” (www.gm.com)

  “Any recent-model Ford truck with a diesel engine can run on a mixture including up to 5 percent biodiesel (B5) . . . Ford is working with researchers and other partners to develop a biodiesel fuel that will allow utilization of at least 20 percent biodiesel (B20) in future diesel vehicles.” (www.fleet.ford.com/)

  International will warranty engines using up to and including the B5 blend. Association (EMA). International's warranty policy does not deny coverage solely for the use of blends higher than B5, but only if the failure is attributed to the use of higher biodiesel blends. (www.internationaldelivers.com/)

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OEM – Current issues

Bridging the Biodiesel Gap

Step 5

Blue-tech technologies keeps B20 warranty issues:   Chrysler/dodge/sprinter– 2009   Mercedes thinks it will be ok?

Volkswagen: Post injection of fuel which is diluting engine oil because the flashpoint of biodiesel is higher, therefore not burning completely and condensing into engine oil

Engine oil needs to be low soot-- specific to post combustion fuel technologies (canʼt be Rotella)

All major U.S. OEMs support B5 and lower blends, provided they are made with biodiesel meeting ASTM D 6751, the existing ASTM International standard for pure biodiesel (B100)

Many are progressing toward support for B20 pending approval of a new ASTM standard for B20 blends

Use of blends higher than B5 will not necessarily void existing warranties

For a complete listing of OEM position statements on biodiesel, visit: http://www.biodiesel.org/resources/fuelfactsheets/standards_and_warranties.shtm

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Bridging the Biodiesel Gap

 Municipalities  Agriculture  Trucking  Construction  Distributor

Step 5

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“Itʼs a no-brainer to use biodiesel,” . . . By using the biodiesel weʼve eliminated the particulate and the big black plume. Weʼre doing good for the environment and weʼre reducing our petroleum use by 20 percent.” Arlington Countyʼs fleet of biodiesel-fueled vehicles is approximately 350 vehicles, which includes 125 school buses, all its heavy trucks, and all its construction equipment. “Our operators really donʼt notice a difference,”

-- Ric Hiller - Bureau Chief, Arlington County Virginia

“There is much less smoke at the B20 level and both the mechanics and bus drivers have noted the difference, not to mention the kids.” Hettler tracked statistics like the time the buses idle, the miles per hour they drive, oil analysis, and the mileage the buses get.  

-- Wayne Hettler, Garage Foreman & Head, Mechanic Michigan school district

Bridging the Biodiesel Gap

Municipalities Using Biodiesel Step 5

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April, 2008 Denver's Department of Public Works began using B20 in 2004 during a pilot program. Since then, the city has gradually increased its biodiesel use and now fuels the city's entire diesel fleet of approximately 1,000 vehicles and equipment with B20. That does not include Denver International Airport, which also uses B20.

In Colorado Springs, the diesel fleet of more than 2,400 vehicles and equipment runs on B20. In fact, Colorado Springs has been recognized as a national leader in the effort to utilize cleaner-burning biodiesel in its fleet. The city was recently named the top municipal biodiesel fleet in the nation by Government Fleet Magazine.

Since Colorado Springs first began using B20 in 2003, the city has made a significant contribution to environmental protection. As of early 2008, the city had used 1.6 million gallons of B20. City officials estimate that this amount is equivalent to 500 vehicles not being driven for one year, or a reduction of over five million pounds of carbon dioxide being released into the atmosphere.”

-- Denver Post

Bridging the Biodiesel Gap

Municipalities Using Biodiesel Step 5

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August, 2007 “The City of Kingsport has been looking into using biodiesel for some time and got started about six months ago when they began putting B5 in their 1,000 gallon tank at the cityʼs landfill. About 10 pieces of equipment used the B5 there.

In April they moved the blend up to B20. As things went well during that trial phase, city Assistant Manager David Light decided to approach city council about moving the rest of the fleet to biodiesel.

“They were supportive,” says Light of that meeting. “It was then that we made plans to move our main fueling center 10,000-gallon underground tank to B5. Weʼve been on B5 for about two months now and we plan to ramp up to B20 over the next nine or so months. So far we have not had any major problems – some fuel filter change-outs, but nothing else.”

-- Assistant Manager, David Light

Bridging the Biodiesel Gap

Municipalities Using Biodiesel Step 5

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Others include. . .

Bridging the Biodiesel Gap

Step 5

•  Atlantic County Utilities Authority •  City of Flagstaff, AZ •  City of San Francisco, CA •  City of Santa Monica, CA •  City of St. Louis, MO  •  Hennepin County, Minnesota •  Peterson Air Force Base, CO

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Bridging the Biodiesel Gap

Step 5

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"For me, the most important aspect of all of this is simple; we're farmers helping farmers.”

--Lino Bozzano, Vineyard Manager

“Biodiesel is non-toxic and has very few emissions. The men operating the tractors and forklifts throughout the day are no longer inhaling harmful fumes. That's very important to us.”

--Nadia Wellisz, owner

Bridging the Biodiesel Gap

Laetitia Vineyard and Winery Step 5

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“Like our use of solar energy for electricity, biodiesel fuels allow us to employ renewable energy sources to meet our farming needs and at the same time create a healthier, safer work environment.”

--Co-owner Ted Hall

“With the price of oil pushing $60 per barrel, our use of biodiesel fuel is looking more and more like a very sound long-term economic decision.”

--Co-owner Ted Hall

Bridging the Biodiesel Gap

Long Meadow Ranch Step 5

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"I never used diesel-fired pressure washers before because I didn't like diesel fumes, but biodiesel fumes are pleasant and food grade. . . I'm not doing it as a feel-good thing--I want to make a better product.”

-- Jim Klein, Winemaker “This (biodiesel) replaces the solvent that we have to pay to get replaced every three months, and this other microbial cleaner we tried that's a hazard to dispose of. The biodiesel is so much cheaper--we can use the same 5 gallons for months. And it's safer. It's not flammable.”

-- Chris Swinney, Mechanic Bridging the Biodiesel Gap

Navarro and Fetzer Vineyards Step 5

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Others include. . .

Bridging the Biodiesel Gap

Step 5

•  Honig Vineyard and Winery, Napa •  Heller Estate Vineyards, Monterey County •  Navarro Vineyards, Anderson Valley •  Halter Ranch Vineyard, Paso Robles •  Porter Creek Vineyard, Russian River •  Benzinger, Sonoma •  Bokisch Vineyards, San Joaquin •  Greenwood Ridge Vineyards, Philo

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Biodiesel Integration Process

At Coast Oil, biodiesel is embraced as an overall fantastic and flexible product that works really well especially in blended form. Biodiesel offers our customers options not only in environmental effects, but economical as well when biodiesel costs are lower than regular diesel. By offering competitive pricing on various consistent high quality blends, their customers can save by having fuel choices. For Coast Oil, this means good product growth and expanded business.

Bridging the Biodiesel Gap

Step 5

To accommodate the quality concerns of their customers, Coast Oil has integrated a BQ-9000 Quality Management System.

Distributor: Coast Oil

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“As soon as we made a transition to Biodiesel , 3 of our subcontractors transitioned as well!!” “ Our demolition and debris business has served the Bay Area for over 20 years and have a wide range of modern equipment running on B99.9 biodiesel - from large dump trucks, dump trailers, pick-up trucks, bobcats. Cleaner burning biodiesel provides a healthier work environment for our staff and our clients. We exclusively purchase biodiesel made from 100% recycled vegetable oil to ensure we are engaged in sustainable business practices. -- Paul Sonnabend and David Sherman, Owners

Bridging the Biodiesel Gap

Construction: Hurricane Hauling & Demolition Inc.

Step 5

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Bridging the Biodiesel Gap

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Distributor has a sampling program that includes quality: 1. Acid Number 2. Free and total Glycerin 3. Flash point 4. Water (Note: May want to send to local testing laboratory for low cost testing) Batch-specific samples of B100 for testing critical parameters, such as ʻBiodiesel Quality Status Reportʼ

Fleet Manager has a sampling program that includes above & secure storage: 1. Water 2. Remote sensor log 3. Sticking for water 4. Bacterial growth (filter changes) 5. Acid number (fuel degradation) 6. D 7371 (%Bio)– “rancimat”

Bridging the Biodiesel Gap

Step 6

Sampling

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  Complete Reaction – avoid partially reacted fuel!

  Removal of Glycerin – residues accumulate in engine

  Removal of Catalyst – destroys gaskets and seals

  Removal of Alcohol – lowers flash point of fuel

  Absence of Free Fatty Acids – aged, oxidized fuel

Bridging the Biodiesel Gap

Distributor and fleet managers should be aware of basic principles of biodiesel handling:

Step 6

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Bridging the Biodiesel Gap

 Residues in storage tanks, filters and lines  Clogged dispenser filters, then bus filters  Dissolved contaminants foul injectors  Coking of injectors and varnish on valves  Rough engine operation, smoke, wear  Crankcase oil deterioration, polymerization   Long term or catastrophic engine damage

Step 6

Anticipating and Avoiding Fuel Problems Associated with Deteriorated B20 Fuel

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Bridging the Biodiesel Gap

  Biocides can inhibit growth of bacteria and mold when traces of water contaminate fuel – common problem in storage tanks, particularly in humid climates

  Maintain seals and gaskets on caps and steel lids over the fill pipe sump

  Pump fill pipe sump; never let it drain into tank

  Monitor, monitor, monitor; Polish fuel regularly

  Filtration of fuel to at least 3 microns

  Fuel “polished” (filtered to remove water and sediment) as required

Step 6

More on additives and techniques

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1. Each Distributor may recommend varying additives:

•  Stabilizer-Prevents Oxidation (Ketone) •  Winterized Fuel •  Bug-Out –Prevents Algae and Bacteria •  Anti-Gel -to “0”F. •  Dehazer –Disperses Entrained Water

2. Fleet Manager should verify quantities and compatibility of any additives that are added by producer or distributor.

3. Additional additives may be required

Bridging the Biodiesel Gap

Step 6

Additives

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Bridging the Biodiesel Gap

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Bridging the Biodiesel Gap

Step 7

  Certification   Transportation   Storage   Quality Sampling   Biodiesel Blending

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Bridging the Biodiesel Gap

 Certification of Analysis – Producers full verification of ASTM standards when sampled properly provide proof of biodiesel quality. Be sure to request this upon transfer of product.

 Field Testing – spot testing for drivers and trained biodiesel managers to read and record. Several industry examples include pHlip tests and

 Third Party Laboratory Analysis - for certain parameters (BQSR) report. This report is important for understanding the key properties that are sensitive to change. Verification of quality after time and transportation is essential to make sure that the fuel still meets ASTM requirements.

 See the sample BQSR report in the resource folder for more information.

Step 7

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Bridging the Biodiesel Gap

Transportation Previous Bill of Lading for the bulk material that was on the vehicle just prior to biodiesel loading. This is particularly important for distributor fleets that transfer gasoline too. Verifying Diesel was transported prior provides proof that gasoline or bulk lubricating oils were not mixed. Even the small amount of gasoline will increase the flash point beyond acceptable ranges.

See the Tank Truck Inspection Form in the Resource folder for more information.

Step 7

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Bridging the Biodiesel Gap

Storage – Use tanks that only are compatible and have been inspected for integrity. Testing for the same parameters as the BQSR is recommended.

Baseline Analysis testing of the tanks monthly provide verification that stratification and/or oxidation is occurring.

Quarterly Analysis may be done when there is a stable rotation of fuel from known producers. This analysis will verify that the fuel is not changing in storage and that off product was not received.

Step 7

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Bridging the Biodiesel Gap

Step 7

Biodiesel Quality Sampling

Purchase BQSR Report – ensures the biodiesel integrity

Storage Tank BQSR Report - ensures biodiesel is stable in storage

Blending Analysis Tests – ensures biodiesel is blended appropriately Some customers may periodically require sampling to occur at the point of delivery. This fuel can be tested for the blend percentage to verify fuel integrity and billing details.

Sample Retention – compatible storage jars in an environmentally appropriate storage area for at least 60 days Samples must be labeled with lot number, date, tank, and operator that connect to purchasing and customer records. This connects the sample and test results to the original raw materials and production batches.

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Bridging the Biodiesel Gap

Record must be kept of biodiesel purchase receipts, lot number, and quantity received, producer origin and storage tanks.

Sufficient organization of the related documents such that retained samples can be identified with the relevant COA, previous Bill of Ladings, Blending Worksheets, BQSR reports and Tank Truck inspection forms that contain identification and tracking information that references customerʼs order numbers.

In summary: At time of delivery Customer gets CoA, BQSR, previous BoL and Truck Inspection Forms for rail car unloading and delivery vehicle, Blending worksheet, storage tank BQSR, and copy of Distributors Quality Control Management Program.

Step 7

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Records and Documentation

Bridging the Biodiesel Gap

Essential documentation for the sale or transfer of any Biodiesel products.

•  BQSR: Biodiesel Quality Status Report

•  BOL: Bill of Lading (previous and current) •  COA: Certificate of Analysis

*All files should be made available in electronic format and received by fuel manager at time of transfer allowing instant access to information.

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Bridging the Biodiesel Gap

Distributor: RC Offloading Checklist Distributor: Tanker car unloading

Fleet: Tanker car unloading

Distributor: Fuel Blending Review

Fleet : Tank Inspection

Distributor: Tanker Loading

Fleet: QC Sampling Checklist

Distributor: QC Sampling Checklist

End User: QC Protocol

Distributer: Tank Inspection

Fleet: QA/QC Compliance of Distributor

Laboratory: QC Verification

Fleet : Tank Inspection

Step 7

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Bridging the Biodiesel Gap

Blending with Diesel •  Splash •  In-Line

Blending with Red-dye Inject directly at the rack into the tank truck, similar to current performance fuel additives and red dye.

Blending with additives 

Blending regulations/Taxes

Step 7

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Bridging the Biodiesel Gap 8/31/2008

Biodiesel Blending Step 7

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Goals: Homogeneous Blend To Avoid: Stratification

RECOMMENDED: Pre Blended •  In-Line Blending/Wild stream blending– INJECTION BLENDING

•  Ratio Blending: Tank/Bulk transport ratio Blending: Bottom Loading all biodiesel and Additives

NOT RECOMMENDED Splash Blending: Can blend B100 for pilot programs:

•  Wet fueling with pump and meter •  Small above ground storage/drum w/pump and meter

NOTE: Cold weather impacts blending. If cold, biodiesel should be heated if Biodiesel is within 10% of cloud point

Bridging the Biodiesel Gap

Specific gravities No. 1 diesel fuel = 0.81 No. 2 diesel fuel = 0.84 -0.855 Biodiesel = 0.878-0.88

Fuel Blending Options Step 7

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Check Lists

Bridging the Biodiesel Gap

•  Biodiesel blending procedures and worksheet •  Environmental and Safety Information •  External Laboratory Verification Form •  Material Safety Data Sheet •  Rail Car Unloading Checklist •  Sample NFPA Placard •  Storage Tank Monitoring and Inspection form •  Tank Truck Checklist •  Sampling shortlist - needs to be added •  Transport Loading and Unloading Procedure / Biodiesel Transfer Inspection Form

Step 7

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Bridging the Biodiesel Gap

Filter

Biodiesel plant

Filter

Filter

Veg oil/animal fat

Filter Filter

Step 7

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Bridging the Biodiesel Gap

Biodiesel Filtration   What are you filtering? B100? B20?

  What kind of results do you want?

  What is the temperature of what you are filtering?

  What is the flow rate? And how is it impacted by filtration?

  What are you using to move the fluid?

  Do you have pressure regulators before and after the filter?

  Compare your needs for absolute (99.9%) vs. nominal (+/_ 80%) filtration

Step 7

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Bridging the Biodiesel Gap

SF Muni, Norcal and UC Davis fleets run B20 with Clearair Longview after-treatment system to reduce PM and NOx emissions – B20 compatible device

Biodiesel with Particulate Filters Step 7

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Bridging the Biodiesel Gap

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Bridging the Biodiesel Gap

Step 8

Maintenance Costs

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Bridging the Biodiesel Gap

Step 8

Maintenance Costs

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Diesel Solutions

Bridging the Biodiesel Gap

Step 8

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Bridging the Biodiesel Gap

• BPT is 40ºC lower for B20 • Soot is more easily burned off of filter • B20 can be used for lower temperature duty cycle

• Regeneration rate increases with increasing biodiesel content

•  Even at 5%, biodiesel PM measurably oxidizes more quickly

•  Improved performance: 67% PM drop

BPT ULSD 360ºC B20 320ºC B100 250ºC

Step 8

2007 Particle Filters: DOE-NREL Study

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Bridging the Biodiesel Gap

Step 8

Fuel Economy

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Bridging the Biodiesel Gap

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Safewayʼs distribution fleets in California and Arizona have converted to biodiesel. Safeway operates 550 trucks in California and 79 in Arizona.

The biodiesel is grown and manufactured domestically from 100% virgin soybean oil. 69% of our diesel purchase is now B20.

B20 Biodiesel reduces sulfur, carbon monoxide, hydrocarbon and particulate emissions. CO2 gas output is reduced by 23,021 metric tons per year. This is equivalent to one of the following:

•  4,983 passenger cars not driven for one year •  2,955 households electricity use for one year •  19,184 acres of pine or fir forests storing carbon for one year •  590,286 number of tree seedlings grown for 19 years

Bridging the Biodiesel Gap

Step 9

Market your Success

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Bridging the Biodiesel Gap

Step 9

Stickers

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Bridging the Biodiesel Gap

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•  Potential U.S. biodiesel glut –  2006: 249 MM gal/yr –  2007: 450 MM gal/yr

•  Feedstock costs and/or scarcity –  57% (petroleum) vs. 75% (soy oil) increase in 2007 –  Production limitations

•  NREL forecast of 3.4 billion gal/yr of fats & oils •  Represents <6% of U.S. diesel consumption

•  Regulatory changes •  Responsible commercial production

–  Safety and environmental compliance –  Commitment to ASTM standards (ASTM D6751-07b)

•  Renewable diesel or other alternatives Bridging the Biodiesel Gap

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Limitations of conventional feedstock sources

Social / environmental issues •  Displacement of food crops

–  food vs. fuel debate •  Environmental impacts of commercial agriculture

–  water consumption –  application of fertilizers and pesticides –  particular concern about palm plantations and

destruction of tropical rainforests Developing viable alternative feedstock sources will be critical as the biodiesel industry continues to grow

Bridging the Biodiesel Gap

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Bridging the Biodiesel Gap

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Bridging the Biodiesel Gap

  B100 must meet D 6751 prior to blending to insure trouble-free use of B20 and lower blends

  BQ-9000 fuel quality program helps to promote high quality fuel from producers and marketers

  B20 and lower blends are recommended since most of the research and successful use of the fuel has been with these blends

  See NBB Toolkit document “Use of Biodiesel Blends Up to B20” for more information

  Blends over B20 require special precautions and should only be used by knowledgeable and experienced users

  See NBB document “Guidance on Biodiesel Blends Above B20” for more information: http://www.biodiesel.org/pdf_files/fuelfactsheets/Use_of_Biodiesel_Blends_above_%2020.pdf

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Bridging the Biodiesel Gap

  Market place auctions   Online research   Trust experienced brokers   BQ-9000 cert   NBB distributor list   National Biodiesel Accreditation Commission (NBAC)   Certified Marketers

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Bridging the Biodiesel Gap

  Quality Testing   Broker: Sourcing / Availability   Liability   QA/QC Programs and Manuals

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• Biodiesel is a swiftly maturing industry

• Quality and Experience dictates a relatively easy transition

• All costs must be evaluated in order for biodiesel transition to occur successfully

• Your biodiesel program needs continued inspection and verification

Bridging the Biodiesel Gap

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Environment •  Nontoxic and biodegradable •  Clean burning (reduces emissions including carbon dioxide,

particulates, carcinogens) •  Renewable

Economy •  Distributed energy made in America -- supports domestic

agricultural producers & increases national energy security •  Manufacturing job creation and increased tax base •  Diversifies fuel supply and provides hedge against rising

petroleum prices – improves trade balance Performance

•  Road tested and simple to use •  Reduced maintenance costs Bridging the Biodiesel Gap

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On-line: •  Education and availability: www.biodiesel.org

•  Reports database (cold flow, fleets, compatibility, etc.) •  BQ-9000: www.bq-9000.org •  Education and events: www.bbibiofuels.com

•  Biodiesel Magazine •  Biofuel Magazine

•  Education and Hard data: www.nrel.gov •  NREL Handling & Use Guidelines

•  Availability: www.nearbio.com •  California Biomass Collaborative: www.ucdavisbiomasscollaborative.org Telephone:

•  866-BIODIESEL Hotline is staffed 24/7 Books:

•  Growing A New Energy Economy by Greg Pahl

Bridging the Biodiesel Gap

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  Community Fuels   Peopleʼs Fuel Cooperative   The BioSolar Group   The National Biodiesel Board   BioFuel Oasis   Piedmont Biofuels   San Francisco Community College   San Francisco Department of the Environment

Bridging the Biodiesel Gap

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Learn more at: WWW.WESTCOASTCOLLABORATIVE.ORG