Re: [biofuels-biz] Re: Legal Obstacles for Biodiesel -- suggestions from Len
Martin, you should check the archives, there's a lot about this subject here. Starting with this, from a small producer in the Northeast USA, dated 9 Feb 2002: "This week I have been shut down by the EPA because they say I may not use the health effects data developed by the non-profit National Biodiesel Board, which is used by every other commecial producer in the country, but must develop my own. The EPA estimates that will cost me in excess of $1,000,000. Needless to say, I cannot come up with that kind of money. The EPA stated this week if they catch me making more of the fuel, the fine is up to $25,000 per day. I choose not to join the National Biodiesel Board because of their contract requirements which are unduly burdensome on a small operation like mine. It is like other industries: get big or get out." AFAIK that's still the situation. There may be ways through it, if so nobody's found them yet. And there may be ways round it. But if you want to sell biodiesel for on-road use, this is what you're facing. Some of the list members know a great deal about this, I hope they'll contribute. Best wishes Keith >the batf only gets involved in ethanol distilling, not biodiesel. > >the questions are, who do you report to, what gallonage do you report, and >who knows besides you if it's accurate? > > >Steve Spence >Subscribe to the Renewable Energy Newsletter: >http://groups.yahoo.com/group/webconx > >Renewable Energy Pages - http://www.webconx.dns2go.com/ >Human powered devices, equipment, and transport - >http://www.webconx.dns2go.com/2000/humanpower.htm >[EMAIL PROTECTED] >- Original Message - >From: "Len Walde" <[EMAIL PROTECTED]> >To: >Sent: Sunday, July 21, 2002 8:21 PM >Subject: [biofuels-biz] Re: Legal Obstacles for Biodiesel -- suggestions >from Len > > > > Hi: > > > > "Hold the Phone"! Note I am not a lawyer (and you will need one if you >keep > > on the road you are traveling) So take these words considering the source. > > If you use the fuel "on-farm" only, there are no tax consequences. If >you > > use it on the road there are taxes to be paid. The purpose of these taxes > > are for Federal Highway construction and road maintenance etc.-- we all >pay > > a Fed. Excise Tax for this purpose and it is included in the price of > > gasoline. I suggest you contact the Fed. Alcohol and Firearms people ( not > > exactly the correct name) for the rules and permitting etc.) Failure to do > > so is a serious violation of the law. Now, contact the State Excise Tax > > people and ask for the rules and regulations. I suggest you do not tell >them > > more than they need to know in order for them to send the regulations. >Just > > explain what you would "like to do" without telling exactly -- see what I > > mean? A "feasibility study" is a good way to explain it -- no one can >fault > > you for a study. OSHA should not be too much of a problem if the >processing > > system is well designed and safe, the state may have some rules to >follow. > > > > Point: do it all "by the book" and you will not get into trouble. Taxes >are > > an added product cost to the user -- we can not escape that except by > > cheating -- and that is never a good idea -- read the news. > > > > If your business plan is well done and your raw material and process is >cost > > efficient, you will be successful. If these factors are not soundly based > > you do not want to do it anyway. > > > > I hope this helps. > > > > Good Luck. > > > > Len Walde, P.E. > > > > > > > > - Original Message - > > From: "Martin Stenflo" <[EMAIL PROTECTED]> > > To: > > Sent: Saturday, July 20, 2002 3:04 PM > > Subject: [biofuels-biz] Legal Obstacles for Biodiesel > > > > > > > Greetings, > > > My name is Martin Stenflo, I am part of a newly formed Biodiesel > > > Cooperative in Boulder, CO. Check us out at > > http://www.boulderbiodiesel.com > > > > > > We are setting up small processors on private land and distributing it > > among > > > members of our co-op, and charging a per-gallon user fee. Is this legal? > > No > > > fuel taxes, no OSHA, not in industrial/agriculture zone, no fuel > > standards. > > > Am I setting myself up to be shut down? Who do I contact to get this > > > information? > > > > > > Also, we may be able to set up a small station at our local recycling > > > center, but that needs OSHA regulations etc. Does anybody have >information > > > on the specific regulations I need to meet? > > > > > > Any help is greatly appreciated. > > > > > > Thanks > > > > > > Martin Stenflo > > > 303-245-0743 > > > > > > [EMAIL PROTECTED] > > > http://www.boulderbiodiesel.com Yahoo! Groups Sponsor -~--> Access your PC just like Web Mail http://us.click.yahoo.com/r5uw2C/zncEAA/Ey.GAA/9bTolB/TM -~-> Biofuels at Journey to Forever http://journeytoforever.org/biofuel.html Biofuel at WebConX http://www.webcon
Re: [biofuels-biz] Re: Legal Obstacles for Biodiesel -- suggestions from Len
Martin & Len, Fuel and fuel additives are technically to be registered with US EPA. Manufacturers of biodiesel being sold either for road, off-road or marine use must also be registered with the IRS. Off-road fuels must meet their dye requirements. On road biodiesel must meet ASTM D-6751 and fall under some form of health effects testing umbrella. The easiest "out" relative to access to Health Effects data is to become a member of the NBB at $5,000 a pop. As the demand for off-road and marine diesel is so large, there really is no reason to extend into on-road use until you've gotten accustomed to the regs that govern biodiesel manufacture, developed a clientele and have an express need and ability to expand. You'll run into local fire codes and your state's EPA regs relative to methanol and fuel storage. These will probably include remote storage and dike containment. Some states require an approved "rack" for loading bulk fuel. If you're disposing of the biodiesel as fast as you make it and are working in proximity of 1,000 gallons a day or less, it's doubtful that a rack would be required. Other factors with OSHA and EPA would be spill containment and recovery in the manufacturing area, vapor tight systems and recovery of the methanol (a VOC and toxin) and a hazard free work area. There are some minor variances with OSHA, depending upon the number of "employees." Generally, a sole proprietorship can get away with many conditions that would not be tolerated in other businesses. Either way, simple things like a heavy grating over the WVO settling tank aren't a bad idea, just to keep the mice from drowning. It's a really nasty death. Todd Swearingen - Original Message - From: Len Walde <[EMAIL PROTECTED]> To: Sent: Sunday, July 21, 2002 8:21 PM Subject: [biofuels-biz] Re: Legal Obstacles for Biodiesel -- suggestions from Len > Hi: > > "Hold the Phone"! Note I am not a lawyer (and you will need one if you keep > on the road you are traveling) So take these words considering the source. > If you use the fuel "on-farm" only, there are no tax consequences. If you > use it on the road there are taxes to be paid. The purpose of these taxes > are for Federal Highway construction and road maintenance etc.-- we all pay > a Fed. Excise Tax for this purpose and it is included in the price of > gasoline. I suggest you contact the Fed. Alcohol and Firearms people ( not > exactly the correct name) for the rules and permitting etc.) Failure to do > so is a serious violation of the law. Now, contact the State Excise Tax > people and ask for the rules and regulations. I suggest you do not tell them > more than they need to know in order for them to send the regulations. Just > explain what you would "like to do" without telling exactly -- see what I > mean? A "feasibility study" is a good way to explain it -- no one can fault > you for a study. OSHA should not be too much of a problem if the processing > system is well designed and safe, the state may have some rules to follow. > > Point: do it all "by the book" and you will not get into trouble. Taxes are > an added product cost to the user -- we can not escape that except by > cheating -- and that is never a good idea -- read the news. > > If your business plan is well done and your raw material and process is cost > efficient, you will be successful. If these factors are not soundly based > you do not want to do it anyway. > > I hope this helps. > > Good Luck. > > Len Walde, P.E. > > > > - Original Message - > From: "Martin Stenflo" <[EMAIL PROTECTED]> > To: > Sent: Saturday, July 20, 2002 3:04 PM > Subject: [biofuels-biz] Legal Obstacles for Biodiesel > > > > Greetings, > > My name is Martin Stenflo, I am part of a newly formed Biodiesel > > Cooperative in Boulder, CO. Check us out at > http://www.boulderbiodiesel.com > > > > We are setting up small processors on private land and distributing it > among > > members of our co-op, and charging a per-gallon user fee. Is this legal? > No > > fuel taxes, no OSHA, not in industrial/agriculture zone, no fuel > standards. > > Am I setting myself up to be shut down? Who do I contact to get this > > information? > > > > Also, we may be able to set up a small station at our local recycling > > center, but that needs OSHA regulations etc. Does anybody have information > > on the specific regulations I need to meet? > > > > Any help is greatly appreciated. > > > > Thanks > > > > Martin Stenflo > > 303-245-0743 > > > > [EMAIL PROTECTED] > > http://www.boulderbiodiesel.com > > > > > > > > > > Biofuels at Journey to Forever > > http://journeytoforever.org/biofuel.html > > Biofuel at WebConX > > http://www.webconx.com/2000/biofuel/biofuel.htm > > List messages are archived at the Info-Archive at NNYTech: > > http://archive.nnytech.net/ > > To unsubscribe from this group, send an email to: > > [EMAIL PROTECTED] > > > > > > > > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms
Re: [biofuels-biz] Re: Legal Obstacles for Biodiesel -- suggestions from Len
the batf only gets involved in ethanol distilling, not biodiesel. the questions are, who do you report to, what gallonage do you report, and who knows besides you if it's accurate? Steve Spence Subscribe to the Renewable Energy Newsletter: http://groups.yahoo.com/group/webconx Renewable Energy Pages - http://www.webconx.dns2go.com/ Human powered devices, equipment, and transport - http://www.webconx.dns2go.com/2000/humanpower.htm [EMAIL PROTECTED] - Original Message - From: "Len Walde" <[EMAIL PROTECTED]> To: Sent: Sunday, July 21, 2002 8:21 PM Subject: [biofuels-biz] Re: Legal Obstacles for Biodiesel -- suggestions from Len > Hi: > > "Hold the Phone"! Note I am not a lawyer (and you will need one if you keep > on the road you are traveling) So take these words considering the source. > If you use the fuel "on-farm" only, there are no tax consequences. If you > use it on the road there are taxes to be paid. The purpose of these taxes > are for Federal Highway construction and road maintenance etc.-- we all pay > a Fed. Excise Tax for this purpose and it is included in the price of > gasoline. I suggest you contact the Fed. Alcohol and Firearms people ( not > exactly the correct name) for the rules and permitting etc.) Failure to do > so is a serious violation of the law. Now, contact the State Excise Tax > people and ask for the rules and regulations. I suggest you do not tell them > more than they need to know in order for them to send the regulations. Just > explain what you would "like to do" without telling exactly -- see what I > mean? A "feasibility study" is a good way to explain it -- no one can fault > you for a study. OSHA should not be too much of a problem if the processing > system is well designed and safe, the state may have some rules to follow. > > Point: do it all "by the book" and you will not get into trouble. Taxes are > an added product cost to the user -- we can not escape that except by > cheating -- and that is never a good idea -- read the news. > > If your business plan is well done and your raw material and process is cost > efficient, you will be successful. If these factors are not soundly based > you do not want to do it anyway. > > I hope this helps. > > Good Luck. > > Len Walde, P.E. > > > > - Original Message - > From: "Martin Stenflo" <[EMAIL PROTECTED]> > To: > Sent: Saturday, July 20, 2002 3:04 PM > Subject: [biofuels-biz] Legal Obstacles for Biodiesel > > > > Greetings, > > My name is Martin Stenflo, I am part of a newly formed Biodiesel > > Cooperative in Boulder, CO. Check us out at > http://www.boulderbiodiesel.com > > > > We are setting up small processors on private land and distributing it > among > > members of our co-op, and charging a per-gallon user fee. Is this legal? > No > > fuel taxes, no OSHA, not in industrial/agriculture zone, no fuel > standards. > > Am I setting myself up to be shut down? Who do I contact to get this > > information? > > > > Also, we may be able to set up a small station at our local recycling > > center, but that needs OSHA regulations etc. Does anybody have information > > on the specific regulations I need to meet? > > > > Any help is greatly appreciated. > > > > Thanks > > > > Martin Stenflo > > 303-245-0743 > > > > [EMAIL PROTECTED] > > http://www.boulderbiodiesel.com > > > > > > > > > > Biofuels at Journey to Forever > > http://journeytoforever.org/biofuel.html > > Biofuel at WebConX > > http://www.webconx.com/2000/biofuel/biofuel.htm > > List messages are archived at the Info-Archive at NNYTech: > > http://archive.nnytech.net/ > > To unsubscribe from this group, send an email to: > > [EMAIL PROTECTED] > > > > > > > > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ > > > > > > > > > > > Biofuels at Journey to Forever > http://journeytoforever.org/biofuel.html > Biofuel at WebConX > http://www.webconx.com/2000/biofuel/biofuel.htm > List messages are archived at the Info-Archive at NNYTech: > http://archive.nnytech.net/ > To unsubscribe from this group, send an email to: > [EMAIL PROTECTED] > > > > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ > > > Yahoo! Groups Sponsor -~--> Will You Find True Love? Will You Meet the One? Free Love Reading by phone! http://us.click.yahoo.com/O3jeVD/R_ZEAA/Ey.GAA/9bTolB/TM -~-> Biofuels at Journey to Forever http://journeytoforever.org/biofuel.html Biofuel at WebConX http://www.webconx.com/2000/biofuel/biofuel.htm List messages are archived at the Info-Archive at NNYTech: http://archive.nnytech.net/ To unsubscribe from this group, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
