This quote from a listserv post quoting an article by Adam Schwartz, President of the Green Guild Biodiesel Coop in the DC area just south.
- Nothing Grows from the Top Down: Biodiesel Industry in Crisis June 20th, 2010 As many of you already know, the Green Guild has not had fuel in stock for several months. This has been an long and ongoing saga for this coop, but is also part of a greater crisis within the biodiesel industry. In the past few years, big biodiesel interests and soybean lobbyists have consolidated the biodiesel market and set up regulations that make it prohibitively expensive for small grassroots producers like farmers, coops and DIYers to make biodiesel. This has resulted in a top down fuel system that has sought to mimic the profitable big oil model and doesn't stop to reconsider heinous things like importing soy oil from deforested zones in Brazil. However, in troubling economic times, when communities should be seeking local alternatives to stimulate local economies, we are stuck in red tape and restrictions based on the old way of doing things. We are stuck with a vulnerable system; by being reliant on a relatively small number of multi-million gallon facilities, we have lost community control of our own energy resources once again. This winter, as the Congress allowed a critical $1/gallon tax credit to expire, the biodiesel industry took a huge hit. Overnight, prices skyrocketed and plants began to close for good, while the crackdown on small local producers has continued. In Virginia new legislation made it illegal to transport vegetable oil without a commercial license, essentially forcing an already marginalized biodiesel community to go completely underground. This all happened despite an organized resistance from biodiesel producers, users and farmers on the ground. And now, in perhaps the most critical moment for alternative fuels, during the BP Gulf Oil Spill, one of the worst environmental disasters of our time, when supply and demand for renewable, local fuel should be at its highest, we are way off track. What would happen if the US government were to allow subsidies for the petroleum industry to expire and we were forced to pay the real cost of oil at the pump?; an estimated $10-15/gallon. There would be hell to pay in Washington, yet we do not demand support for renewables with the same fervor. I think there is an important lesson to learn here: nothing grows from the top down. I believe that the best way to really grow long lasting alternatives to a fossil fuel economy is through grassroots initiatives. As a community-based coop, we have been both a small time producer and a bulk purchaser, giving us insight into both realms of the biodiesel world. Purchasing fuel from big producers via middle men suppliers has been frustrating and difficult. As a small coop we have very little purchasing power in relation to big fleets that blend at a B20 ratio. Additionally, maintaining a commitment to B100 while the majority of the industry is moving backwards has been frustrating, with the National Biodiesel Board focusing support for low blends B5-B20. This past year several of the most critical Mid-Atlantic producers went out of business, and without notice, we were delivered B100 from the midwest that was produced from a beef tallow feedstock. This fuel is of horrible, unacceptable quality, its gel point is at nearly 55 degrees and thus can only be used a few months out of the year without causing serious engine problems. From its inception, a critical goal of the Green Guild has been to develop a local, sustainable fuel supply, and cultivate real alternatives to oil consumption. While our own trial at making fuel was successful, it was not to scale, nor was relying on 100% volunteer efforts a sustainable or equitable model. The Green Guild is currently making arrangements with a local producer/farm to become a dedicated supplier to the coop. This will secure a more reliable supply of locally made, WVO feedstock, biodiesel for the coop while maintaining transparency between producer/consumer for using best practices in sustainability and quality control. While this is more complicated logistically, it is a far better solution towards our local energy sufficiency and a more sustainable solution both economically and environmentally. I want to apologize to all the members and folks who would like to be using biodiesel from the coop right now but let everyone know that we are working through this crisis and are committed to providing renewable, sustainable, local fuel to our members. -Adam Schwartz, President, Green Guild Biodiesel Coop
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