(I'm crossposting this, read the rest of the thread below if you didnt get 
this through the biofuel list... The thread started with a new person 
asking why there aren't more small biodiesel producer businesses since it 
seems so easy, and continued with Keith Addison pointing out that some of 
the regulatory red tape is sudenly gone but there hasn't been much of a 
test case of that yet)


  One piece of the 'red tape' involved in small scale biodiesel production- 
the NBB stranglehold on the EPA Tier II health effects testing results- 
seems to have been cleared. Though a lot of people don't know that- I think 
the Blue Sun Biodiesel folks I talked to a few weeks ago didn't know about 
that (can't remember if it was the Blue Sun rep or another large-scale 
biodiesel advocacy guy who was with the Blue Sun guy, sorry if I get this 
wrong guys). Seems to me that, like with many victories where big business 
loses a legal battle, the NBB and whomever didn't make a very loud stink 
about their loss, and biodiesel people who weren't on these lists don't 
seem to be very aware of that.


But there's still plenty more red tape and obstacles, of the local and 
state-level and zoning and regulations variety. I'm watching a few people 
go through varying levels of interaction with the government and blundering 
in red tape- one for a business and one for a bulk buying coop, in two 
different cities, and our coop is no doubt going to go through the same thing.

The small producer business is finding that Oakland would require a site to 
be zoned 'heavy industrial' - a huge obstacle to a small business trying to 
break into biodiesel production here. There is far more more warehouse and 
industrial real estate in this city (and most of them I imagine) that is 
zoned light industrial, than heavy industrial. There is sometimes little 
difference between the types of facilities, and we all of course feel that 
a small producer would do fine in a light industrial warehouse, and have 
little impact on the immediate environment or neighborhood. Yet they're yet 
to convince the city otherwise of course- (changes to zoning regulations 
are a hellish process if you're not a real estate developer or otherwise 
well connected politically). Other would-be small producers are finding 
insurance to be unavailable or prohibitive. This pretty much kills a 
business like this, or makes it impossible to find certain kinds of 
investment or funding, and nonprofit status doesn't help in the cases I 
know about.

Keith mentioned 'various kinds of coops' below.  The bulk buying coop I;ve 
got in mind (not us in Berkeley, a coop in another city) wants to purchase 
some bulk biodiesel and put it into a tank to dispense to members. They are 
trying to go about all of this as legitimately as possible (some coops are 
not organized this way, and personally I think the most practical thing at 
this point in time is to do city-based coop work 'under the radar' and on a 
very, very small scale)

anyway they got a donated small aboveground diesel storage tank like that 
used on farms and by businesses that use generators, and cleaned out the 
sludge using some biodiesel. One member called the fire department to find 
out where to take the wastes (in the US we have local household hazardous 
wastes disposal facilities that accept stuff like this). The fire 
department immediately 'freaked out' and wanted to know where the tank was 
and how it was set up (the member didn't tell them the exact location). The 
upshot of their conversation is that for them to do this, biodiesel or not, 
they would have to buy an expensive doublewalled tank (too bad "they" 
didn't have those regulations in effect for the oil tanker that crashed off 
of Spain this winter!), with a bunch of other safety devices on it- and 
they wouldn't be able to do it in city limits without spending a huge pile 
of money, if at all (sorry I unfortunately don't remember all the details 
beyond the 'containment' and the 'doublewalled tank' part. I hope I got 
that one right). The irony is that the city they're in is surrounded by an 
agricultural county- and if they were just out on someone's farm right 
outside town, that kind of very common and safe diesel tank would have been 
just fine the way that they'd set it up. But that defeats the purpose of 
having a coop centrally located where members can come work on it easily 
and don't necessarily have to drive to get there to do their volunteer 
work, among other issues (like them perhaps not having a member with a farm 
nearby). So with this and other problems they're finding that they may not 
even be able to do the MOST basic part of a coop legitimately- buying some 
fuel in bulk and dispensing it to each other (taxes are all paid in this 
scenario, and everyone involved wants to 'play by the rules' and do this 
legitimately). the problems facing a city-based coop trying to actually 
MAKE fuel for themselves 'above ground'- ie in full knowledge of local 
authorities- are insurmountable in my opinion. No one's gonna insure 
amateurs playing with flammable chemicals, for instance. It seems to me 
that the obstacles facing small producers in a city are going to be 
similarly expensive and painful. It also seems that if you leave city 
limits it becomes easier. I would be interested in hearing anecdotes from 
others- small producers, coops, whatever- who have successfully or 
unsuccessfully interacted with the authorities. It seems to me that we 
focused so much on the NBB-controlled process for access to the EPA Tier II 
health effects data as an obstacle that we haven't talked much about the 
local issues.

We talk a lot about the great potential of biodiesel for revolutionizing 
and decentralizing energy production. It's been really interesting to me to 
see it play out in real life over the past year- lots of people trying to 
start coops, few of them are any kind of blazing success- and with the EPA 
regs lifted, many people starting to contemplate becoming small 
producers.  What 'decentralized energy production' looks like is anyone;s 
guess- there are so many different ways to organize it and so few recent 
models (you can't look at past solar stuff for this one, nor to farm wastes 
ethanol- WVO biodiesel is unique in that the energy already comes to you in 
the decentralized form of waste).   Given also that September 11th has 
galvanized  many people into making the connection between power, oil, and 
American foreign policy, there is also a huge amount of idealism and a lot 
of desire (at least here) to make 'decentralized energy production' work 
out. I'm seeing lots of that idealism dashed somewhat by the realities such 
as those anecdotes above, realities of insurance, etc. Again, like Keith in 
the post below, I'm interested in hearing more of the stories of people in 
other areas who have had successful or unsuccessful interactions with the 
regulations surrounding all of this.

mark


At 03:03 AM 2/8/2003 +0900, you wrote:
> >commercially, the road is fraught with red tape and government interference.
> >This is why we make it ourselves, for ourselves, and teach others to do the
> >same.
> >Steve Spence
>
>It seems as lot of the red tape and pure obstruction to small-scale
>operators may have been cleared away, largely as a result of work
>done by various list members here and at Biofuels-Biz. Lots of info
>in the archives about all this - really lots. Check out "EPA hassle"
>in both archives. However, it still needed a test case, and I haven't
>heard of one.
>
>Bill Clark, if you're listening, any news for us on this? Or anyone else?
>
>There are also other options - various kinds of coops, fuel for
>off-road use, etc. Actually, from what I hear and enquiries I get,
>there seems to be a large number of people at various stages of
>starting biodiesel and biofuels operations in the US (since you're
>talking about the US), and also elsewhere, in Britain, India,
>Thailand...
>
>Let's have some news about what's going on out there, you good folks
>who're doing it. Tell us your plans, progress, problems and
>constraints, if you can, without giving too much away. It would be
>good to try to get some sort of view of how it's all developing at
>that level.
>
>Best wishes
>
>Keith
>
>
> >Subscribe to the Renewable Energy Newsletter
> >& Discussion Boards. Read about Sustainable Technology:
> ><http://www.green-trust.org>http://www.green-trust.org
> >[EMAIL PROTECTED]
> >----- Original Message -----
> >From: <[EMAIL PROTECTED]>
> >To: <biofuel@yahoogroups.com>
> >Sent: Friday, February 07, 2003 2:57 AM
> >Subject: [biofuel] so i got one more ?
> >
> >
> > > and i read many archives i just searched for the wrong phrases i
> > > guess, and way the question is, how come people aren't opening
> > > biodiesel fuel operations, like for home heating, or cars even?, it
> > > seems being so cheap and easy it would have caught on a lot faster?,
> > > maybe you guys can explain this to me
>
>
>Biofuel at Journey to Forever:
><http://journeytoforever.org/biofuel.html>http://journeytoforever.org/biofuel.html
>
>Biofuels list archives:
><http://archive.nnytech.net/>http://archive.nnytech.net/
>
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