Capitol Report for 2/06/08

Biodiesel FAQs - February 6, 2008

Q. What is biodiesel?
A. Biodiesel is the name of a clean burning alternative fuel, produced from domestic, renewable resources such as soybean oil. Biodiesel contains no petroleum, but it can be blended at any level with petroleum-based diesel to create a biodiesel blend. It can be used in diesel engines without modification. Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of sulfur and aromatics.

Q. How many bushels of soybeans are needed to manufacture one gallon of biodiesel?
A. One bushel of soybeans yields 1.5 gallons of biodiesel.

Q. Is biodiesel approved for use in the U.S.?
A. Yes. Biodiesel is registered as a fuel and fuel additive with the U.S. Environmental Protection Agency (EPA) and meets clean diesel standards established by the California Air Resources Board (CARB). B-100 (100 percent biodiesel) has been designated as an alternative fuel by the U.S. Department of Energy (DOE) and the U.S. Department of Transportation (DOT).

Q. Is biodiesel used as a pure fuel or is it blended with petroleum-based diesel fuel?
A. Biodiesel can be used as a pure fuel or blended in any percentage with petroleum-based diesel fuel. The most popular blends levels are 20 percent, 10 percent, 5 percent, and 2 percent.

Q. How do biodiesel emissions compare to petroleum-based diesel emissions?
A. Biodiesel is the only alternative fuel to have fully completed the health effects testing requirements of the Clean Air Act. The use of Biodiesel in a conventional diesel engine results in substantial reduction of unburned hydrocarbons (ozone precursors), carbon monoxide (poisonous gas), and particulate matter (black smoke from the tailpipe) compared to emissions from petroleum-based diesel fuel. In addition, the exhaust emissions of sulfur oxides and sulfates (major components of acid rain) from biodiesel are essentially eliminated compared to diesel.

Q. Is biodiesel healthier than petroleum-based diesel?
A. Scientific research confirms that biodiesel exhaust has a less harmful impact on human health than petroleum-based diesel fuel. Biodiesel emissions have decreased levels of polycyclic aromatic hydrocarbons (PAH) and nitrited PAH compounds that have been identified as potential cancer causing compounds. Test results indicate PAH compounds were reduced by 75 to 85 percent, with the exception of benzo(a)anthracene, which was reduced by roughly 50 percent1. Also, particulate matter, an emission linked to asthma and other diseases, is reduced by about 47 percent, and carbon monoxide, a poisonous gas, is reduced by about 48 percent.

Q. Does biodiesel cost more than petroleum-based diesel?
A. In our market economy, biodiesel tracks very closely with the price of petroleum-based diesel.

Q. Does biodiesel take more energy than it gives back?
A. No. Biodiesel actually has the highest “energy balance” of any transportation fuel, alternative or conventional. The DOE/USDA lifecycle analysis shows for every unit of fossil energy it takes to make biodiesel, 3.2 units of energy are gained. This takes into account the planting, harvesting, fuel production, and fuel transportation to the end user.

Q. Does biodiesel void the manufacturer’s warranty?
A. No. Major original engine manufacturer’s (OEM) such as Case, John Deere, Caterpillar, Ford, GM, Mack, Mercedes Benz, New Holland, Volkswagon, and Volvo approve the use of biodiesel blends. Specific warranty statements can be found at http://www.biodiesel.org/resources/fuelfactsheets/standards_and_warranties.shtm

Q. Does biodiesel perform as well as diesel?
A. In more than 50 million miles of in-field demonstrations, biodiesel showed similar fuel consumption, horsepower, torque, and haulage rates as petroleum-based diesel. Biodiesel also has superior lubricity and it has the highest BTU content of any alternative fuel.

Q. Does biodiesel cause engine filters to plug?
A. Pure biodiesel (B100) has a solvent effect, which may release deposits on tank walls and pipes from previous petroleum-based diesel fuel use. This will occur until all deposits are gone, requiring more frequent filter changes. However, this issue is less prevalent in B-20 blends and there is no evidence that lower-level blends, such as B-5 or B-2, have caused filters to plug.

Q. Does biodiesel cause degradation of engine gaskets and seals?
A. In general, biodiesel used in pure form can soften and degrade certain types of natural rubbers over time. This degredation, however, is not experienced with B-20 and lower blends. In addition, the recent switch to low-sulfur diesel fuel has caused engine manufacturers to switch to components that are also suitable for pure biodiesel.

Q. Does biodiesel have a sufficient shelf life?
A. Most petroleum companies do not recommend storing petroleum-based fuel for more than six months. In general, this same recommendation applies to biodiesel, although it can be stored longer with the use of certain additives.

Q. Does biodiesel “gel” in cold weather?
A. Tests performed at the Cleveland Technical Center indicate that B-20 begins to have cold flow problems at -22 degrees Fahrenheit. If biodiesel blends are subjected to temperatures colder than these, it is recommended that kerosene or other cold weather additives be used.

Q. Is fuel quality a problem with biodiesel?
A. Both petroleum-based diesel and biodiesel are susceptible to fuel quality deficiencies resulting from manufacturers producing fuel that does not meet American Society for Testing and Materials (ASTM) specifications. The State of Minnesota was the first state in the nation to produce and utilize biodiesel on a large scale. In 2006 they experienced some production quality issues which have been addressed successfully by adopting the National Biodiesel Accreditation Commission’s BQ-9000 certification standard. This quality systems program includes procedures for fuel storage, sampling, testing, blending, shipping, distribution, and management aimed at ensuring fuel quality. SB 204 implements the BQ-9000 standard for all biodiesel sold in Missouri to guarantee that only quality fuel meeting the ASTM standards is used in Missourians’ cars, trucks, and tractors.

Q. Isn’t the word “standard” just a euphemism for “mandate?”
A. The government already sets mandatory health, safety, and environmental standards for fuel. The government also controls which compounds (of hundreds) shall, can, and cannot be in fuel. So the B-5 standard is really just the next step in the evolution of the current fuel standard, which is designed to protect the health and safety of the public and preserve our natural environment.

It should also be mentioned that modifying the standard is not unusual. The last major modification of the current fuel standard took effect in January of 2006. It was a mandated reduction in sulfur content to help improve air quality.

Q. Does the B-5 bill allow biodiesel made from animal fats to be sold?
A. Yes. Any biodiesel that meets federal ASTM fuel standards is allowed to be sold in the state as part of the B-5 standard, including biodiesel made from “livestock” and “poultry products.” Conoco-Phillips is partnering with Tyson in Louisiana and Texas to produce a product it calls “renewable diesel” which, in part, is made from poultry products. This product does not, however, meet the current ASTM fuel standard for biodiesel and, as such, would not be allowed to be sold as part of the Missouri standard.

Q. This sounds great, but can Missouri facilities produce enough fuel to meet the demand created by a state B-5 standard?
A. Yes. Easily. Missouri utilized about 1.1 billion gallons of diesel fuel in 2005 (1 billion on-road, 100 million off-road). Missouri biodiesel facilities are expected to have the capacity to produce nearly 200 million gallons per year by the end of 2008. This represents more than three times the 55 million gallons of biodiesel needed under a B-5 standard.

Q. This makes a lot of sense. Does anyone not support the initiative?
A. Only the major petroleum and petroleum-related companies do not support the B-5 initiative. Put simply, these out-of-state and foreign companies oppose the initiative because biodiesel is a competing product. The petroleum companies have an oligopoly; they control what is sold in the marketplace through contractual agreements with their franchisee gas stations which do not allow biodiesel to be sold and/or advertised. This means that many stations that sell biodiesel do so in violation of their franchise agreement. So, in effect, the free market is not allowed to operate. Rather than using biodiesel – a better, homegrown and produced, environmentally-friendly product – consumers are forced to purchase conventional diesel, even when it is more expensive. In the final analysis, the oil industry has a good deal – and they want to keep it.

Q. Have other states passed biodiesel standards?
A. Minnesota passed and enacted the nation’s first biodiesel standard (2 percent). Louisiana, Oregon, and Washington have also passed 2 percent biodiesel standards, but these policies will not take effect until certain in-state production targets are met. Therefore, Missouri has the opportunity to become the fifth state to pass a biodiesel standard and the second to implement one. Most importantly, we have the opportunity to become the first state to pass a B-5 initiative.

Q. Why should I support a B-5 standard?
A. Why not? At a time when the U.S. spends about $475,000 a minute on foreign oil, we can be a significant part of the solution while, at the same time, improving the health of our citizens, cleaning the air we breath, protecting our environment, and boosting our entire state economy. This is a win-win.

Thank you.

Ron and Rep. Brian Yates - R consider pending legislation.

Ron discusses HB 327 with Rep. Michael Spreng – D (left), Rep. Fred Kratky – D. All are members of the Special Committee on Job Creation and Economic Development, of which Ron is the chair.