Biodiesel Conference: Look Towards Colorado and Washington as Emerging Markets

Biodiesel Conference: Look Towards Colorado and Washington as Emerging Markets

Donnell Rehagen, the chief executive officer of the National Biodiesel Board, started off the session and talked about aggressive carbon policies within many states which helped “set the stage” for monumental growth.

“In California, biomass-based diesel fuels are now accounting for nearly half of the state’s carbon reduction under the LCFS (low-carbon fuel standard),” said Rehagen. “Let’s be honest, California’s LCFS didn’t even envision a role for biomass-based diesel fuels when it was put into place in 2009. Today, our industry is responsible for nearly half of its successes.”  

Rehagen said the state consumed 14 million gallons of biomass-based diesel in 2009. He expects those numbers will reach 1 billion gallons consumed in California for 2020 once the numbers are tallied.  

California was one of the first states to lead the charge in carbon policies and greenhouse gas emissions a decade ago. They were followed quickly by states along the East coast and elsewhere.  

“Now, only 10 years later, half of the country has comprehensive carbon policies and targets,” said Floyd Vergara, director of state gov. affairs with the National Biodiesel Board. “These policies generally call for GHG (greenhouse gas emissions) reductions of 40% by 2030 and 80% by 2050. These states represent more than half of the population [and] a large portion of on-road fuel consumption.”   

National Biodiesel Conference & Expo

Vergara says there are key areas beyond California which could be “emerging markets for the next wave.” Vergara mentioned The Midwest and the Northeast. He also mentioned the specific states of Washington and Colorado.  

“Washington state is an emerging hotspot,” said Scott Richards, an independent state lobbyist for the National Biodiesel Board. “[That’s] mainly because many legislatures and stakeholders in Washington think this will be the year that a low-carbon fuel standard will pass the legislature and be signed into law by Governor Jay Inslee.” 

Richards says the transportation sector is the largest source of emissions in Washington, which makes up roughly 45% of emissions. He says it has yet to be addressed in a significant way. He says Washington state has also seen a significant population growth in the western part of the state.  

“[A lot of it] comes down to two corporations which are headquartered here: Amazon and Microsoft,” said Richards. “Then, throw in a coffee company you may have heard of, Starbucks, and you’ll start to see why.”  

Rehagen mentioned a wave of global companies such as Amazon, Ikea, Walmart, Pepsi and McDonald’s have announced commitments to carbon reductions as well.  

The groups said Colorado is another state to watch as it potentially develops more of a low-carbon approach. Elizabeth Burns Thompson, a corporate affairs manager with the Renewable Energy Group says Colorado is traditionally an oil and gas state as it usually ranks about number 5 annually for oil and gas production but there could be some changes.  

“Colorado is not unique in that transportation is a large piece of that pie in terms of evaluating the contributors on the emissions,” said Burns Thompson. “That necessitated a strong conversation about what type of endeavors could be made to alleviate some of those concerns.” 

Burns Thompson says the group was invited to participate in some legislative interim committees and present before both of the energy interim committee and transportation committee about what had been done with other states on higher blends, greenhouse gas emissions and energy-focused goals. 

She said there are some set-backs as Colorado was supposed to “gavel in” during January but is postponing until February due to the pandemic.  

“We will hopefully get to see early movement on [biodiesel] measures very soon and see somewhat of a statewide floor for biodiesel content throughout the state,” said Burns Thompson. 

Burns Thompson said at the same time, Colorado Governor Jared Polis has been very “climate centric” as well as captivated by electrification arguments.  

National Biodiesel Conference & Expo

The 2021 National Biodiesel Conference & Expo kicked off in a virtual fashion Tuesday. The conference and expo are held and sponsored by some of the top names in the renewable fuels and biodiesel industries.

The opening session called, “Conference Grand Opening Rise: The Dawn of a New Era for Low-Carbon Fuels” looked at progress within the industry over the last decade. It also touched on which opportunities exist for biodiesel and renewable diesel during a time when there’s a push for low-carbon.

Click here for more on the 2021 National Biodiesel Conference & Expo.  

 

 

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