Biodiesel - “Fat to Fuel” An Opportunity for

Environmental Partnerships

Olof Hansen, EPA R9National Environmental Partnership Summit

Atlanta, GA May 2006

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Benefits of Biodiesel

Protect your environment (air, water, waste)

Save costs Protect your workers Promote renewable energy Create sustainable market

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U.S. EPA Pacific Southwest (Region 9)

Main Office in San Francisco w/ 800 employees

Field Offices in L.A., San Diego, & Honolulu Offices: Regional Administrator, Public

Affairs, Regional Counsel, Air, Superfund, Waste Management, Water, Communities and Ecosystems, Policy and Management

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Region 9 covers these 4 States…

Arizona, California,Hawai'i, and Nevada,and ...

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… and works with Tribes as well…

"Indian "Indian Country"Country" (Over 150 Federally Recognized Tribes)

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…and has responsibilities in Pacific Islands

Hawai'i

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“Biodiesel is one of our nation's most promising alternative fuel sources. And by developing biodiesel, you're making this country less dependent on foreign sources of oil.”

President George W. Bush Remarks at Virginia Biodiesel Refinery

May, 2005

Why Biodiesel?

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“Advanced Energy Initiative: national goal of replacing more than 75 % of our oil imports by 2025…

Biodiesel will help end dependency on foreign oil … Foreign oil will go the way of typewriter and walkman… Restaurant grease which would normally be thrown

away, will be turned into fuel… Biodiesel is making the black puff of diesel smoke a

thing of the past. “ Administrator Steve Johnson Remarks at National Biodiesel ConferenceSan Diego, February 2006

Why EPA and Biodiesel?

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Why Region 9 - West Coast?

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Prevent pollution and promote recycling and reuse;

Reduce priority chemicals at all product life cycle stages; and

Conserve energy and materials.

Resource Conservation Challenge (RCC)

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How do you Make Biodiesel?

Transesterification

Biodiesel can be splash-blended with petroleum diesel – B2 vs. B20 vs. B100 (2% to 100%)

Biodiesel + Glycerol 90% 10%

Waste oil + Alcohol + Catalyst 87% 12% 1%

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Little Known Fact

Rudolph Diesel designedthe diesel engine in 1894 to run on peanut oil“The use of vegetable oils for engine fuels may seem insignificant today. But such oils may become in the course of time as important as petroleum and the coal tar products of the present time.”

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Environmental Benefits of Biodiesel

Resource conservation: waste to fuel conversion Only alternative fuel passed Clean Air Act Tier I and

II health effects testing Reduction of virtually all regulated air emissions Over 75% reduction of green house gases Non-toxic, contains no sulfur: the cause of acid rain Bio-degradable, no oil spill contamination

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Emission Change between Biodiesel and Petrodiesel

-90-80-70-60-50-40-30-20-10

010

Perc

enta

ge

B100

Carbon MonoxideHydrocarbonsParticulatesAir ToxicsMutagenicityCarbon DioxideNitrogen Oxides

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Economic Benefits of Waste Cooking Oil as Feedstock for Biodiesel

75%

12%

3%2% 7%

1%

Oil Feedstock Chemical FeedstocksEnergy Direct LaborGeneral Overhead Depreciation

Cost Breakdown for Biodiesel Production

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Why Focus on Waste Cooking Oil?

Resource Conservation Challenge (RCC)– Reduce waste, and reuse and recycle more products– Recover energy lost in waste going to landfills

U.S. alone: Restaurants and hotels generate over a billion gallons of waste cooking oil annually

Traditionally grease goes to rendering industry

1 billion gallons waste grease = 400,000 tanker trucks

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How much Biodiesel from Waste Oil?

Could produce enough biodiesel to displace all diesel consumption in Nevada and Arizona combined.

Assume over 1 billion gallons of biodiesel from nation-wide waste oil

AZ consumes 912 million gallons of distillate fuels

NV consumes 511 million gallons of distillate fuels

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How can Biodiesel Solve Waste and Water Pollution Problems?

By converting waste grease to a higher value commodity.

Diverts large waste stream from:– Landfills or illegal dumping– Publicly-owned treatment works (POTWs)

Prevents spills and sewer blockages:– Raw sewage and grease onto land and water– In 2001, EPA sued Los Angeles for 2,000 sewer spills,

40% due to FOG (fat-oil-grease)

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Obstacles to Biodiesel Acceptance

Limited supply – Due to both demand and supply reasons

Potential increase of NOx emissions– Depends on engine type and test settings

Lack of familiarity Quality of fuel

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Biodiesel Activities of Region 9 Waste Management Division

Innovations Workgroup grant to Univ. of Nevada, Reno– Lower NOx emissions in pre-production (w/o additives)– Decrease costs by continuous process

IWG grant to Ecology Action in Santa Cruz– Demonstrate cradle-to-cradle community-based model

Internet Biodiesel Guide (Government leading by example)

Gila River Indian Community Grant– “From Frybread to the Fuel Tank”

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More R9 WMD Biodiesel Partnerships

Working with West Coast Collaborative to promote biodiesel – Emphasize waste cooking oil-generated biodiesel

WCC sectors: Trucking, Marine, Construction, Locomotive, Agriculture, and Cleaner Fuels Waste cooking oil based biodiesel pilot

with U.S. Navy at Port Hueneme, CA Partnership with Casinos, Universities,

and POTWs Biodiesel as local fuel source on

Pacific Islands

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Web-based Biodiesel Guide-- for Federal Agencies --

Federal Network for Sustainability (FNS)– EPA, DOD, NPS, U.S. Postal Service, GSA

Enormous purchasing power – $300 billion spent through contracts for goods and services– 1.7 million employees

Regulatory mandates – EPACT: 450 gallons of B100 = one AFV credit = $2.5-20K

FY02 DoD use of Biodiesel: 1.8 Million gallons

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Some Tribal Biodiesel Projects

Gila River Indian Community, Arizona “From Frybread to the Fuel Tank”

Nez Perce Tribe, Idaho Biodiesel production plant

Minnesota Tribal Coalition - White Earth Biodiesel project from casino waste vegetable oil

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Casinos and Biodiesel

MGM Grand in Las Vegas– Uses grease from casino kitchen to fuel

fleet of Las Vegas Valley Water District, Clark County School District

Eldorado Hotel Casino in Reno– Uses vegetable oil to heat buildings and

generate domestic hot water– Other casinos involved: Circus Circus,

Club CalNeva, Silver Legacy Resort, Sands Regency, Fitzgerald’s in Reno; Silver Club in Sparks; Tamarack Junction south of Reno

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Federal Environmental and Energy Conservation Requirements/Incentives

IRS, Fuel tax credits and refunds of 50 cents/gallon of Biodiesel– http://www.irs.gov/publications/p378/ar01.html

EPAct (Energy Policy Act of 2005), fleet alternative fuel vehicle requirement

RCRA 6002, Agencies that generate heat, mechanical, or electrical energy from fossil fuel in systems that have the technical capability of using energy or fuels derived from solid waste

E.O. 13101, Greening the government through waste prevention, recycling, and federal acquisition

E.O. 13134, Developing and promoting bio-based products and bio-energy

E.O. 13149, Greening the government through federal fleet and transportation efficiency

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Benefits of Biodiesel

Environmental (Air, Water, Waste) Energy Independence (Domestic,

Renewable) Economic/Cost (Waste to Fuel) Quality/Standards Energy Policy Compliance Safety/Emergency Response

EPA Region 9Earth Day 2006 AwardeeWillie Nelson “BioWillie”

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Thank you

Olof Hansen

hansen.olof@epa.gov

(415) 972-3328