The Task Force has sunset on December 31, 2010, so approved minutes are not available.
CITY AND COUNTY OF SAN FRANCISCO
BIODIESEL ACCESS TASK FORCE REGULAR MEETING
TUESDAY, DECEMBER 7, 2010, 10:00 A.M.
CITY HALL, ROOM 278, ONE DR. CARLTON B. GOODLETT PLACE
SAN FRANCISCO, CA 94102
TASK FORCE MEMBERS: VOTING: Eric Bowen (Chair), Eric Smith (Vice-Chair), Joe Burgard, Kevin Clark, Shannon Devine, and Benjamin Jordan; (1 Vacant). Advisory: Richard Berman (Port), Sarah Dennis (Planning Department), Mike Ferry (Fire Department), Greg Kato (Treasurer/Tax Collector), Laurence Kornfield (DBI), Vacant (MOCD), Vacant (Department of the Environment), Marty Mellera (MTA), Virginia St. Jean (DPH), Karri Ving (PUC).
ORDER OF BUSINESS
1. Call to Order and Roll Call. The Biodiesel Access Task Force meeting convened at 10:10 a.m. Voting Members Present: Chair Bowen, Vice-Chair Smith, Members Clark (10:18), Devine and Jordan; Excused: Member Burgard; Advisory Member Present: Member St. Jean; Advisory Members Excused: Members Berman, Dennis, Ferry, Kato, Kornfield, Mellera, and Ving.
2. Approval of the October 5, 2010 Biodiesel Access Task Force Regular Meeting Draft Minutes. (Explanatory Document: October 5, 2010 Draft and Approved Minutes) (Discussion and Action) Upon Motion by Chair Bowen, second by Vice-Chair Smith, the October 5, 2010 Meeting Minutes were approved with corrections. (AYES: Chair Bowen, Vice-Chair Smith, Members Devine and Jordan; Absent: Members Burgard and Clark)
3. Public Comments: Members of the public may address the Task Force on matters that are within the Task Force’s jurisdiction and are not on today’s agenda. There was no public comment at this time.
4. Sylvatex Biofuels LLC Presentation to the Task Force. Sponsor: Vice-Chair Smith (Informational Report and Discussion); Speaker: Ms. Virginia Klausmeir, Sylvatex Biofuels LLC.
Vice-Chair Smith introduced Ms. Virginia Klausmeier, Co-Founder and Executive Officer of Sylvatex Biofuels LLC. Ms. Klausmeir presented an overview of Sylvatex Biofuels LLC mission, goals, and objectives. Topics discussed included:
· Problem statement: the health and disproportionate environmental effects caused by diesel emissions in California. NOx sources within the United States caused by transportation, electric utilities, fuel combustion, industrial sources, and other. Objective: to decrease the amount of pollution.
· United States/California diesel fuel market segmentation by total consumption, total market size, and on-highway segment.
· Biofuels to displace conventional fuels in the transportation mix--increase of biofuel use in the United States.
i. Biofuel content of United States motor gasoline and diesel consumption for 2007 and projections for 2015 and 2030.
ii. Average emission impacts of biodiesel for heavy-duty highway engines.
· State and federal policy developments to mitigate the harmful effects of diesel emission and policy backing for alternative fuel development.
· Potential solutions: mechanical, alternative fuels, reduction in fuel use.
· Sylvatex Mission: to maximize potential of microemulsion technology and focus on the transportation market to help decrease pollution and help promote sustainable growth within the market and the markets that Sylvatex works in.
· Sylvatex Overview: Company objectives, Sylvatex microemulsion, future development, market entrance, business and product development milestones, next steps, and how the Biodiesel Access Task Force can help.
Task Force members discussed microemulsion technology, feedstock, product sourcing, and potential roadblocks to overcome. Suggestions were provided.
5. Approval of Request for Extension of Biodiesel Access Task Force Sunset Date and/or Change in Scope of Work. (Continued from the October 5, 2010 Meeting) (Discussion and Action) (Explanatory Documents: Resolution 82-06 establishing the Biodiesel Access Task Force and Resolutions No. 17-10 and 674-07 extending the Biodiesel Access Task Force) Sponsor and Speaker: Chair Bowen
Chair Bowen reported that discussions will be scheduled with Board of Supervisors members and Department of the Environment staff to discuss an extension and expand the scope of the Task Force. Vice-Chair Smith reported that he would be following up with Supervisor Mirkarimi and Department of the Environment Director Nutter. Member Clark reported on Director Nutter’s comments on SFGate promoting biodiesel.
6. Biodiesel Access Task Force Report to the Board of Supervisors. The Task Force will review a draft report for transmittal to the Board of Supervisors. (Continued from the October 5, 2010 Meeting) (Discussion and Action) (Explanatory Document: Biodiesel Access Task Force Report of Activities Table of Contents) Sponsors and Speakers: Chair Bowen and Member Jordan
Member Jordan presented a Report Table of Contents listing sections from the previous report and bolded sections that have not yet been drafted but would be added to the next report. Task Force member’s recommendations that were discussed at the last meeting were incorporated. He reported that the Report will include what the Task Force and its Marine Subcommittee and Working Group have accomplished. Instead of including all of the appendices, there will be references to their location on the website.
Upon Motion by Chair Bowen, second by Vice-Chair Smith, the Biodiesel Access Task Force Report of Activities Table of Contents was approved in lieu of the report. The report would be reviewed with final approval issued by Chair Bowen at which time it would be forwarded to the Board of Supervisors with a copy to the Department of the Environment. (AYES: Chair Bowen, Vice-Chair Smith, Members Clark, Devine and Jordan; Absent: Member Burgard.)
Public Comment: Unidentified Speaker inquired whether the “TBD” listed on the report would be updated. Member Jordan reported that corresponding page numbers would be added once the report was finalized.
7. Proposal to Create a B20 Mandate in San Francisco. (Discussion) Sponsors and Speakers: Chair Bowen and Member Jordan
Member Jordan suggested starting with a B5 mandate that would be modeled after Portland’s mandate and then migrating to B20. He explained that there are problems with B20 in some of the newer vehicles especially with the DPF filters that would not present a problem with B5. Task Force Members discussed additional obstacles to converting to B20. Member Devine discussed the conversion costs that may be incurred if starting with B5 and then moving to B20. Members Clark and St. Jean discussed reasons for pursuing a B5 mandate instead of B20 due to vehicle warranty issues. Chair Bowen stated that all work that has been accomplished thus far has been for B5, and it would be a low-cost, easy place to start that would provide some reduction in carbon emissions. Chair Bowen reported that there was preliminary interest from the Mayor’s Office to create a mandate. He discussed personnel changes at all levels of government that have put this issue on hold. Vice-Chair Smith reported that he had spoken with Ms. Partin of the Mayor’s Office and is continuing discussions on this subject with Supervisor Mirkarimi.
Chair Bowen proposed that the Task Force recommend that the City adopt a B5 mandate for City vehicles modeled on Portland’s program with next steps to be determined once the Task Force has been resumed. The Task Force would then work with fuel suppliers, users and distributors of all fuel sold within the city limits as well as the Board of Supervisors and Mayor on a mandate.
8. City Biodiesel Pilot Program discussion on the acceptance of biodiesel and biodiesel blends across the city to ensure all fleets are capable to run the Mayor’s minimum mandate and have sufficient support in determining higher blend pilot programs. (Continued Discussion from the October 5, 2010 Meeting) (Discussion) Sponsor/Speaker: Member Jordan
Member Jordan stated that efforts have been made to request additional support at the City level to make sure that the Mayor’s program is fully implemented and sufficient staff time is allocated to monitoring and supporting the fleet vehicles. He asked that this issue be moved into an action item so that a specific recommendation can be made to the City to establish a position with this scope of work either through a City Department or an outside agency. The person would be in charge of implementing the Mayor’s mandate, identifying implementation barriers and a path to resolution that would help with emissions reporting, a usage definition, and work on the Master Fuel Contract to integrate local biofuels and do price comparisons. Member Jordan discussed previous Member Bali’s good work on this program bringing fleet managers and other relevant staff together. Chair Bowen suggested that this be an additional topic to be discussed with the Department of the Environment, Board of Supervisors, and the Mayor if an extension is granted.
9. Update on the Greasecycle Program and San Francisco Public Utilities Commission (SFPUC) Pilot Plant. (Continued Discussion from the October 5, 2010 Meeting) (Informational Report and Discussion) Speakers: Members Jordan and Ving
Member Jordan discussed the San Francisco Public Utilities Commission’s (SFPUC) Water Pollution Fats Oil and Grease (FOG) to biofuels program located at the Oceanside Treatment Plant. He stated that the SFPUC has done a tremendous job working with this product, but does not have specifics or details on their progress at this time. Chair Bowen reported that the SFPUC has self-funded and grant-funded programs. The grant-funded work has been exploratory in nature. He asked whether any preliminary conclusions were made on the viability of FOG to biodiesel co-located at wastewater treatment facilities. Member Jordan stated that final documents have not yet been generated and that the grant period has been extended. He discussed advances in technology, progress made, and challenges being faced. It was reported that there is a benefit to having this material located at these sorts of treatment plants. Chair Bowen inquired about the overall initiatives and next steps. Member Jordan suggested asking Member Ving for an update as he is unaware of a formal public process or format going forward.
10. Update on the Status of Darling’s Proposed Biodiesel Manufacturing Plant in San Francisco. (Continued Discussion from the October 5, 2010 Meeting) (Informational Report and Discussion) Speaker: Vice-Chair Smith
Vice Chair Smith reported that the Port voted to approve Darling’s plan for a biodiesel plant at Pier 96 to produce approximately 10 million gallons of biodiesel. The Mayor’s Office issued a press release announcement. He discussed community meetings that were led by Port Member Berman and his good work in oversight of Darling’s lease and proposal. Bayview Advocates were initially opposed to the project and filed a suit to oppose Darling’s request for a categorical exemption from the environmental review process. The group has since withdrawn their suit and became satisfied with Darling’s community outreach, odor abatement, and emergency response plans. Darling passed every single environmental test.
Vice-Chair Smith discussed local implications on the SFPUC’s plan because the only folks collecting grease in the city would be the PUC, several local collectors, and Darling. Vice-Chair Smith reported that Darling would be working in the Bayview community on local hiring to support the green jobs movement. Member St. Jean and Vice Chair Smith discussed the current impact on the Bayview community as a result of Darling’s current plant, e.g. odor problems and potential health effects from emissions.
Public Comment: Ms. Pamela Olivier, Office of Contract Administration, inquired about Darling’s timeline for the project. Chair Bowen stated that Darling has the authority to proceed, but there is no commitment to move forward. Vice Chair Smith reported that Darling would probably be using their existing structure and adding equipment to make biodiesel instead of building a new plant. Ms. Olivier inquired as to who owns the property and how long the lease is for. Vice-Chair Smith reported that the Port owns the property. Chair Bowen stated that the current lease is for 20 or 25 years but does not have information on the new lease.
Chair Bowen left the meeting during this agenda item.
11. Legislative update on the Biodiesel Fuel Tax Credit and discussion on Industry Impact. (Continued Discussion from the October 5, 2010 Meeting) (Informational Report and Discussion) Sponsor/Speakers: Chair Bowen and Member Jordan
Member Jordan reported that he does not believe there has been any movement on the tax credit. Vice-Chair Smith reported that the tax credit was to help local producers in the biofuel industry. It was attached to different bills that did not get approved, and the odds are that it won’t be coming back or in any form that others are accustomed to. It has had an effect on the biofuel community and industry, especially on biofuel producers.
Public Comment: Ms. Olivier inquired whether there would be a large increase in biofuel pricing as a result of the tax credit not being renewed. Member Jordan reported that pricing has been increasing as people realize that the credit is not coming back, and there are businesses going out of business as a result.
12. Master Fuel Contract and City Biodiesel Program Update. (Continued Discussion from the October 5, 2010 Meeting) (Discussion)
Member Jordan suggested that modernization of the Master Fuel Contract be placed on a future agenda as an action item. Vice-Chair Smith reported that the City’s objective is to purchase the best quality fuel from a good compliant, local sustainable company at the best prices. Member St. Jean stated that a company’s compliance record with environmental issues is very important and should be presented to the Office of Contract Administration. Member Devine stated that she had been advocating for the clause in the contract to purchase from local small producers and suggested talking to Sirona Biofuels about their experience. She stated that she has never had an opportunity to see the actual contract. Member Devine discussed the inequities of OPUS pricing.
Public Comment: Ms. Olivier, Senior Purchaser, Office of Contract Administration, introduced herself and described her work on the Master Fuel Contract. She stated that the contract had been extended last year and there has been consideration to another extension for this year. Ms. Olivier stated that she had heard that there has been discussion surrounding Sirona Fuels and this year’s contract. She reported on her discussions with Western States about purchasing from Sirona Fuels and explained that Western States would be providing a status update in mid-December. There would be further discussion on the Master Fuel Contract at a future date.
13. State Water Resources Control Board Underground Storage Tank (UST) Update. (Continued Discussion from the October 5, 2010 Meeting) (Informational Report and Discussion)
There were no updates provided at this time.
14. Update on the Local Biofuels Permit Work Group. (Continued Discussion from the October 5, 2010 Meeting) (Discussion) Speaker: Member Jordan
Member Jordan reported that the Biofuels Permit Work Group did hold a productive meeting this morning. Updates would be provided at a future date.
15. Green Depot Program Report. (Continued Discussion from the October 5, 2010 Meeting) (Informational Report and Discussion) Speaker: Vice-Chair Smith
Vice Chair Smith reported that the Green Depot is continuing their work with Biofuel Recycling. No additional updates were provided at this time.
16. Fat Free Biofuel LLC Refinery Update. (Continued Discussion from the October 5, 2010 Meeting) (Informational Report and Discussion) Speaker: Member Devine
Member Devine reported that Fat Free Biofuel LLC Refinery plans are still in progress. No additional updates were provided at this time.
17. New Business/Future Agenda Items. (Information and Discussion)
Vice Chair Smith reported that all items discussed during the course of the meeting would be discussed if the Task Force were to be renewed. Ms. Fish discussed the process for scheduling agenda items.
18. Public Comments: Members of the public may address the Task Force on matters that are within the Task Force’s jurisdiction and are not on today’s agenda. There was no public comment at this time.
19. Adjournment. The Biodiesel Access Task Force meeting adjourned at 12:00 p.m.
Respectfully submitted by,
Monica Fish, Task Force Secretary
**Copies of explanatory documents are available at (1) the Biodiesel Access Task Force Office, 11 Grove Street, San Francisco, California between the hours of 9 a.m. and 5 p.m., (2) upon request to the Task Force Secretary, at telephone number 415-355-3709 or via e-mail at Monica.Fish@sfgov.org, or (3) on the website with each agenda or meeting minutes at https://sites.google.com/a/sfenvironment.org/commission/biodiesel-access-task-force.