Big Government Squashing Little Businesses

It looks as if the government is yet again serving the interests of big corporations instead of serving the public that elected them.

This particular case comes from another local biodiesel producer that also self-collects waste vegetable oil like we do.  The rendering industry in Virginia lead the charge to change the law that imposes a layer of regulation that adds significant compliance costs to small collectors.  The requirements are significant, and burdensome.  See http://leg1.state.va.us/cgi-bin/legp504.exe?101+ful+CHAP0868+pdf to read the actual law.

The buzz is that this same group has hired a firm that is working the halls of the NC General Assembly to quietly pass some similar legislation that could negatively impact small collectors.   The rendering companies have seen an army of small collection companies chipping away at their restaurant accounts in order to sell their waste vegetable oil to biodiesel plants like TBI, so now they’re fighting back by changing the law to protect them.   Ironically, the small renderers typically provide better service, remove the oil more frequently, and generate a better product for us as biodiesel feedstock (the oil from the large renderers is usually rotten and full of water).  Furthermore, most of the oil collected by the large rendering companies never goes to renewable fuel plants, it goes to feed mill plants that add it to livestock feed, thus putting it back into the food chain.  Yes, you are eating animals that have been fed the carcasses, fat, and ground up parts of other animals in their feed.  Europe has banned this practice (Since October 2004, waste vegetable cooking oil can no longer be used as an ingredient in animal feed.   See Animal By-Products Regulation EC 1774/2002).

Want to help?   Contact your NC state representative and tell them that NC needs biofuels, and tell them you promote small business and don’t want tighter regulations on small companies trying to promote biofuels.   Contact Bev Purdue and let her know that Virginia made a mistake by choking off small companies that are trying to fuel the biodiesel industry, and doing so in North Carolina will kill what is left of the biodiesel industry in this state.

Contact Bev Purdue:  http://www.governor.state.nc.us/forms/contact.aspx

Find your state representative:  http://www.ncga.state.nc.us/

Nasty WVO Bin

The rendering industry in Virginia lead the charge to that got a law
(just singed by their governor last month) that imposes a layer of
regulation that adds significant compliance costs to small collectors.

My understanding is that they have hired a firm that is working the
halls of the NC General Assembly to quietly pass some similar
legislation that could negatively impact small collectors.  No bills
have been introduced so there's nothing to look at and they may be
positioning it as a technical correction to keep it below the radar.

Food for Fuel, Again.

Well, it’s March, and the biodiesel tax credit has been in limbo for it’s third month, with no real idea when it will be reinstated.

Given the media hype in the recent past about renewable fuels causing food prices to skyrocket, you’d think that the market would breathe a huge sigh of relief and that commodity food prices would have plummeted to the bottom.  After all, almost 85% of the biodiesel plants in the USA are either idled or out of business. So where’s the pressure to keep price up, right?

Well, as of today, soybean oil is $.40 /lb. That’s $3.00 per gallon. Waste Vegetable Oil (WVO), another biodiesel feedstock, is $.26 / lb, or $1.95 per gallon. The average price per gallon for biodiesel right now is just slightly more than petroleum diesel, at around $2.25. What were prices for soybean oil and WVO back in March of last year? Around $.32 / lb for soybean oil, and around $.21 lb for WVO.

So who’s driving the price of raw feedstock materials up?  Not biodiesel, that’s for sure.   To me, it looks like the agricultural and food industries, just like they were before. They are currently exporting oils to Asia and South America. That’s good for everybody, except biodiesel. But yet the public perception when I talk to people is that we’re driving the price of food up.   Alternative feedstocks, such as algae oil, hold high hope for renewable fuels.   It provides a cheaper feedstock for us, and shuts up the critics of current feedstock supplies, unless they find something wrong with algae…

Soybean Oil Price Graph 2009