You asked what steps the state has taken to promote the use of

biodiesel fuel.

SUMMARY

The state has taken several steps to promote the use of biodiesel fuel. The Department of Public Utility Control has ruled that biodiesel is a renewable energy resource, and that electricity produced from it counts towards the state’s renewable portfolio standard. This ruling potentially opens up a major market for biodiesel fuel. Eastern Connecticut State University is conducting a pilot project where biodiesel is being used for space heating. The University of Connecticut (UConn) uses recycled cooking oil to power a shuttle bus. In addition, the state has entered into a $ 400,000 contract for biodiesel for Department of Transportation trucks for the period February 2005 through January 2007. Under the contract, municipalities and other political subdivisions of the state can buy biodiesel under the same terms as the state. The state is currently paying a premium of 50¢ per gallon over the price of conventional diesel for the biodiesel.

In March 2003 the Department of Environmental Protection cosponsored a regional workshop on biodiesel fuels. In March 2005, UConn published a study that found that biodiesel fuels have many environmental and other benefits. The study is available at

http: //ccea. uconn. edu/studies/Biodiesel%20Report. pdf.

STATE MEASURES TO ENCOURAGE BIODIESEL USE

Biodiesel fuel is derived from a variety of sources including soybean and other vegetable oils and animal fats. The sources can be obtained from agricultural oil or by recycling used oil such as cooking grease. The fuel can be used in diesel engines, in both vehicles and stationary sources of electricity and heat. Biodiesel fuels are often blended with conventional diesel fuels for these uses. The percentage of biodiesel fuel in the blend is designated by B followed by %; for example, fuel that is 20% biodiesel is designated B20. Fuels of more than 20% biodiesel content are less commonly used, since they may require extensive modifications to the diesel engines that burn them. In addition, high concentrations may present difficulties in handling and transportation.

In June 2005, the Department of Public Utility Control issued an advisory ruling that effectively expanded the market for biodiesel. The ruling addressed whether biodiesel fuel qualifies as a class I renewable resource under the state’s renewable portfolio standard. The portfolio standard requires electric companies to get part of their supply from renewable resources. Class I resources include biomass that meets certain criteria, as well as other fuels. Other types of biomass are considered a class II resource. Because there is a limited supply of these resources, electric companies pay a premium for the power produced from them.

The department found that biodiesel fuels are biomass and therefore qualify as a renewable energy source, so long as they meet the commonly accepted industry definition of biodiesel fuels and Connecticut’s emission requirements. In order to be considered a class I resource, the facility using the biodiesel fuels must emit no more than . 075 pounds of nitrogen oxides per million British Thermal Units (BTUs) of heat input for class I facilities. In order to be considered a class II resource, the facility must emit no more than 0. 2 pounds of nitrogen oxides per million BTU of heat input, subject to the limited exception provided in CGS § 16-1(a)(26). As a result, electric generators can use biodiesel fuels that meet these criteria in supplying power to electric companies in fulfillment of the renewable portfolio standard. Potentially, this gives biodiesel suppliers a new market and the possibility of long-term financing, which has been a major impediment in the development of this market. The department’s ruling (docket 05-03-13) is available on its Website, www. dpuc. state. ct. us.

Eastern Connecticut State University

Eastern Connecticut State University is conducting a biodiesel pilot project that involves operating a 100 horsepower boiler on B20 for the 2005–2006 heating season. It appears that this is the first time in this region that biodiesel is being used for heating purposes in a boiler of this size. The fuel will be a blend of 80% conventional diesel and 20% soy oil and its use will require no mechanical modifications to the boiler.

Testing will be conducted at Eastern before and during the heating season to demonstrate environmental effects of using this fuel for heating. Previous pilots using this blend in vehicles have shown emissions reductions of as much as 30%. The pilot will identify the permit modifications and other regulatory steps needed for a facility to use biodiesel. It will also analyze fuel efficiency and quality and the impacts on equipment in terms of maintenance and performance satisfaction and overall costs. The Department of Environmental Protection is providing funding for the project.

DEP Workshop

In 2003, the Department of Environmental Protection and other agencies sponsored a regional workshop on biodiesel fuel. Among the topics covered were modular biodiesel production technologies and the production of biodiesel fuels from restaurant grease. The workshop presentations are available at http: //www. easternct. edu/depts/sustainenergy/calendar/biodiesel/Biodiesel%20Presentations. htm.

While the department has been supportive of biodiesel, it has noted that its use can slightly increase emissions of nitrogen oxides, one of the precursors of ozone (smog).

UConn Study

In March 2005, UConn published a study that found that biodiesel has properties that make it desirable for use in transportation, home heating and power generation. Among other things, using biodiesel rather than conventional diesel reduces emissions of sulfur dioxide, which contributes to acid rain, and reduces particulate matter emissions by as much as 50%. The study found that the state could save $ 20 million or more in averted health care costs by switching to biodiesel for

space heating and heavy vehicle use. It also found that biodiesel is nontoxic, produces less skin irritation than soap and water, degrades four times as fast as conventional diesel, and has a flash point significantly higher than that of conventional diesel, thus making it safer to store and handle.

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