Re: Pennsylvania governor confirms biodiesel b2 mandate

From an NBB email.

JEFFERSON CITY, Mo. – Diesel fuel sold in Pennsylvania will be a shade greener while giving a boost to the state’s economy, thanks to an announcement Gov. Ed Rendell made today at the Pennsylvania Farm Show. The Governor confirmed that each gallon of diesel fuel in Pennsylvania will contain at least 2 percent biodiesel starting in January of next year.

“The major challenge we’ve always had is getting fuel out to the public,” said Ben Wootton, President of the Pennsylvania Biodiesel Producers Group (PABPG) and President of Keystone Biofuels, a biodiesel producer. “We repeatedly hear ‘Where can I buy the fuel?’ This legislation helps ensure that the oil companies’ terminals offer biodiesel product.”

The legislation, passed in July 2008, called for a blend of B2 (2 percent biodiesel, 98 percent diesel fuel) in each gallon of biodiesel sold in Pennsylvania. This was contingent upon the in-state production of biodiesel of 40 million gallons, which has now been met. Producers maintained a 3.3 million gallon per-month average for a 90 day period. The twelve month period from this January, until the effective date next January, is to allow infrastructure to be built up to prepare for the additional biodiesel sales.

“Pennsylvania is one of only a handful of states that has adopted biodiesel requirement legislation,” said Shelby Neal, National Biodiesel Board Director of State Governmental Affairs. “Pennsylvania is improving its environment, enhancing economic development during a challenging time, and helping the US break its dependence on foreign oil.”

The requirement is legislated to ramp up to B5 and to B20, with higher in-state production criteria for each level. The Pennsylvania Department of Agriculture’s Weights and Measures division will help to enforce the on-road B2 requirement.

Wootton said that members of the PABPG such as Middletown Biofuels; the Pennsylvania Farm Bureau; PennFuture (a non-profit environmental group); and United Oil, Pittsburgh; helped to make this announcement a reality.

“We at Keystone, and other producers here, have had challenging times with recent economics of biodiesel production, but have had some positive developments since last year's production incentive,” said Wootton. “We are starting to be able to hire back some employees who were laid off. Now, thanks to this B2 requirement, we look forward to future sales.”

Biodiesel is a renewable fuel for diesel engines, made from a variety of natural oils from sources such as plants, animal fats and recycled cooking oil. A study by the U.S. Departments of Energy and Agriculture found that life cycle carbon dioxide is reduced by 78% with biodiesel, compared to regular diesel fuel. The NBB is the national trade association of the biodiesel industry and is the coordinating body for biodiesel research and development in the U.S.

Mandate huh? Sounds like a good way to inflate already high prices. So what does PA do if there is no BD to blend with? Just not sell it?