Deep-Fried Bananas

An April 3rd, I.R.S. Ruling makes about as much sense as deep frying a banana and thinking it is healthy. Notice 2007-37 would dramatically undercut the efforts of the biofuels industry and would just open the door for more Big Oil subsidies. In the 2005 Energy Policy Act, Congress passed a biodiesel tax incentive extension. Members in Congress, in cahoots with Big Oil, also passed a provision to provide incentives for Thermal De-Polymerization (TDP), a system of refining petroleum by using plastics, and food wastes (pig offal and carcasses). This provision was never debated by Congress.

Now, ConocoPhilips with help from their friends in the I.R.S. has an end around to receive the same $1.00 a gallon subsidy as real biofuel manufacturers. The I.R.S. ruled that because TDP uses animal byproducts in its production, it qualifies as a biofuel. This makes as much sense as lighting a match to see if you have a gas leak. The process is nothing more than dumping animal carcasses into the petroleum as it is being refined.

Biodiesel has undergone over 15 years of testing, to assure its quality, safety, and environmental impact. TDP oil has not undergone these same tests. It is not known what impact this type of oil would have on the engines running it, or what impact it would have on the environment. Likewise, this process wouldn’t add a single gallon of refining capacity. Furthermore, if TDP is proved to be not environmentally friendly, or if it has a negative impact on engines, all biofuels will be maligned. Also teaming with ConocoPhilips in this endeavor is Tyson Food Incorporated. This move gives Tyson Food Incorporated, a cheap and easy means of disposing of its hazardous waste. ConocoPhilips and Tyson Foods claim that the end product is “renewable diesel” has as much validity as claiming light cigarettes won’t give you cancer.

North Carolina needs to prevent a similar event from happening here. North Carolinians need to support Senate Bill 1272, a measure that would clearly define Biodiesel, according to the actual industry standards. We need to prevent another industry end-around, and further violations of commons sense.

North Carolina a Leader...In Studies

North Carolina’s plan for biofuels is nothing more than pie-in-the-sky thinking. The plan should be applauded for its vision, but it does too little and too late. It wants to make the state a leader in the Mid-Atlantic and Southern states, but 2017 is too late. Identified in the plan are nine strategies. This entry will focus on the main ideas.

Strategy 1: By 2017, 10% of liquid fuels will be biofuels grown in the state.

North Carolina can do more. This matter is too pressing to be postponed by 10 years. Through proper incentives, North Carolina can produce enough biofuels to accomplish this goal by 2012.

Strategy 2: Development of a State-Level biofuels commission.

This commission can easily be implemented within the North Carolina Department of Agriculture and Consumer Services, answering to the Agriculture Commissioner. This organization should take the lead in the permitting process for fuel-grade ethanol and biodiesel. Currently, the process for approval for fuel-grade ethanol must go through the North Carolina Alcoholic Beverage Control Board. Fuel-grade ethanol is not an alcoholic beverage; therefore, it should not be regulated by the same individuals who enforce the drinking laws.

Strategy 5: Craft a plan for coordinating the effort.

It appears that North Carolina is completely set up on planning and studying; instead of implementing. By the time North Carolina is finished studying every little aspect of the issue, its goal for becoming a leader in biofuels will be lost. There is also no need to create a comprehensive list of feedstock which can be used. The producers already have this information. Let science, the market, and producers determine the most efficient feedstock. This aspect of the plan would only create more hurdles for biofuel producers. Regulation is necessary, but not when it begins to micromanage every aspect of the industry.

Strategy 6: Increase use of current feed stock and research new feedstock and processes.

This is one of the best ideas from the report. Increase production using current technology and feedstock, while research focuses on developing newer, more efficient, and greener processes and feedstock. One failure of strategy six is the call to streamline the environmental permitting process. The major draw for biofuels is that they are a more environmentally friendly energy source. We do not need to open the door for potential environmental hazard.

Strategy 7: Endorse the Novozymes proposal to the US Department of Energy.

While good, North Carolina needs to focus more on the present, not possible technology, which may, or may not pan out further down the line. This is more evidence that this plan fails to see the trees for the forest.

Strategy 8: Create a coordinated state-wide effort.

We agree, North Carolina must do more than displace 20 of petroleum use and we believe it can. The state does not; need to implement a pilot marketing program for biofuels. Smoky Mountain Biofuels has already announced a plan for 23 service stations offering biodiesel. Let this market driven approach serve as the test area, identify its failures and successes and spread its accomplishments throughout the state. Likewise, there is no need for the state to development curriculum necessary for the workforce. We already have four producers in the state, one of which provides education to the public through the state’s community college system. State mandates would be redundant and would create more barriers.

Strategy 9: Incentives

Legislation already exists before committee which would accomplish this strategy; however, it cannot get a vote. Senator John Snow is attempting to lead the battle charge for biofuels, but for some reason has met road blocks along the way.

Senate bill 1273 would establish a reduced excise tax for biodiesel components of 13.5 cents. North Carolina Consumers for Biofuels supports this legislation. It serves as an important catalyst for consumers to make the switch.

Senate Bill 1277 requires diesel vehicles procured by the state to receive a manufactures warranty covering the use of biofuels.

Senate Bill 1278 would remove the excise tax on fuel-grade ethanol produced and used by the same individual. This fuel is not for sale and therefore should not be taxed as such.

Senate Bill 1451 would create an incentives fund for producers of biofuels. Focused on benefiting smaller-scale North Carolina based producers, this legislation would benefit the economy of North Carolina. Instead of money being directed out of the state to out-of-state producers, the money would be directly placed back into the economy.

Senate Bill 1452 would require all school buses purchased in North Carolina to be capable of running B-20. On average, each school bus in North Carolina requires 100 gallons of diesel a week to operate. With over 1000 school buses operating in the state, which would be well over 200,000 gallons reduction of petroleum derived fuel.

It is now time for implementation. We need to encourage our State leaders to discuss and vote for these bills. Stop the bottleneck and actually work to make North Carolina a leader in biofuels. Stop talking! Act!

North Carolina Consumers for Biofuels

We are pleased to announce the creation of a new Political Action Committee, North Carolina Consumers for Biofuels. This organization is dedicated to improving communication between, the producers, users, and legislators when it comes to biofuels, and their availability. It is our hope to create a streamlined effort for the development of sound policy regarding biofuels and their use throughout the State. We believe that North Carolina can become the true leader in the production and use of biofuels technology. Our main tool for communicating our plans and needs will be through this blog. We want to keep you, the consumer and producer, informed about actions currently happening in North Carolina, which concerns biofuels. With in the coming weeks, we plan to outline the current strategies in place along with future plans.

Western North Carolina to See Increase in BioFuel Availability

It's been a crazy month for biofuels in North Carolina. Earlier in April, Smoky Mountain Biofuels announced a deal to bring online 23 Biodiesel pumps in seven Western North Carolina Counties. This deal will allow Smoky Mountain Biofuels to go from a 1 million gallon a year operation upwards of 3-4 million gallons a year. The end result for users will be increased supply, which should bring down the prices.

"New equipment has been ordered to ramp up production at their current site from 1 million gallons a year to 3 or 4 million. But there’s not enough room for all the volume they need. They will open a second plant in coming months to handle even more production. More than one county is courting Smoky Mountain Biofuels in hopes of landing the plant in their county, and Begley and Gray are weighing their options. They will continue to produce at the Jackson site after opening a second facility."

http://www.smokymountainnews.com/issues/04_07/04_11_07/fr_new_market.html

OUR TAKE: With the increase in availablity, it will only be time before more companies enter the market for biofuels. All of this will make the price more cost efficient and will enable the biofuels industry to grow. Not only is their an environmental benefit, but it will benefit the farmers of North Carolina, who have seen the bushel price for soy rise to 753.25 cents per bushel.