Prepared for a Senior Chemical Engineering Design Class at UW Seattle, Washington April 6, 2005

1. Regulatory, Political, and Economical Aspects As Related to Sustainable Design of A Biodiesel Facility Prepared for a Senior Chemical Engineering Design Class at UW Seattle, Washington April 6, 2005 Tapas K. Das Washington Department of Ecology Olympia, Washington 98504 E-mail: tdas461@ecy.wa.gov shivaniki@comcast.net

2. Areas will be addressed in today’s class • Regulatory Aspects of Renewable Energy Sources and Biodiesel • Governor’s Executive Order for Use of Biodiesel • Clean Air Act and Air Quality Standards • Geographical and Political Issues Pertinent to Growing Crops and Biodiesel Manufacturing in Washington • Environmental and Economical Benefits of Biodiesel • Costs (Life Cycle Costs) • Define Sustainability - Chemical Engineers’ Perspective • Group Discussion, Questions, or Comments

3. Clean Air Act (CAA) Enacted 1970 Amended 1990 • The CAA is intended to control the emissions of air pollution by establishing uniform ambient air quality standards that are in some instances health-based and in others, technology-based (RACT, BACT, MACT, LAER). • The CAA also address specific air pollution problems such as hazardous air pollutants, stratospheric ozone depletion, and acid rain.

4. CAA Key Provisions • The CAA established the National Ambient Air Quality Standards (NAAQS) for maximum concentrations in ambient air of CO, NO2, VOC, SO2, O3, PM10, PM2.5, and Pb • States must develop source-specific emission limits to achieve the NAAQS. • States coordinate with adjacent states, local air authority (i.e., Puget Sound Clean Air Agency in Seattle), and USEPA (Region 10 in Seattle), and issue air emission permits to facilities (i.e., Prevention of Significant Deterioration (PSD) and New Source Review (NSR) permits) • Stricter requirements are often established for hazardous air pollutant and for new source

5. Criteria Pollutants and Standards

6. Air Quality Standards

7. Air Quality Standards, Cont. • A -   0.25 not to be exceeded more than two times in any 7 consecutive days. • B-   Eight hour ozone standard went into effect on September 16, 1997.         But implementation is limited. • ppm = parts per million • µg/m3 = micrograms per cubic meter • Primary standards are listed in this table as they appear in the federal regulations. Ambient concentrations are rounded using the next higher decimal place to determine whether a standard has been exceeded. The data charts in this report are shown with these un rounded numbers. • Details of the National Standards are available in 40 CFR Part 50. • Online:EPA Air Quality Standards Link to 40 CFR Part 50

8. Table: Biodiesel Emissions Compared to Petroleum Diesel Source: California Air Resources Board (CARB); National Biodiesel Board (NBB)

9. State Implementation Plan (SIP) • The CAA requires states to develop their SIPs that outline how they intend to achieve NAAQS. The SIP-NAAQS system is an example of “State-Federal Joint Efforts” to protect Air Quality. • The Federal government ensures that provisions of CAA are implemented but states are responsible for controlling local sources of air pollution. • When an airshed violates NAAQS for any criteria pollutant, the airshed is designated Nonattainment. Violation would depend on pollutant and averaging time. For example, if the 24-hr PM10 standard of 150 μg/m3 is exceeded more than once per year, the area is designated as nonattainment for PM10. • SIP establishes control strategy to attain and maintain the NAAQS standards through stricter permit limits, control of area mobile sources, inspection/maintenance program, dust control plan, and other measures.

12. Executive Order “Establishing Sustainability and Efficiency Goals for State Operations” WHEREAS, sustainability means meeting the needs of current generations without impairing the ability of future generations to meet their own needs, and is an important strategy for the long-term health of the state’s economy, environment and citizens; and WHEREAS,efficiency and cost effectiveness are continuing objectives of state government; and WHEREAS, establishing targets and adopting sustainable building, transportation, paper use and energy use practices will accelerate progress in accomplishing the sustainability goals established in Executive Order 02-03; and WHEREAS, the use of green building practices can improve employee productivity, improve building operational performance, reduce building operating costs and improve compatibility between the natural and built environments; and WHEREAS, transportation activities are responsible for a majority of the greenhouse gasemissions in Washington state, and state fleets represent an opportunity to decrease greenhouse gas and other toxic emissions as well as achieve operating savings and efficiencies; and WHEREAS, state government can reduce the resource and environmental impacts of paper throughout its lifecycle by changing the way we purchase, use and recycle paper; NOW, THEREFORE, I, Gary Locke, Governor of the State of Washington, declare my commitment that state agencies shall adopt targets and take actions to further the adoption of sustainable practices.

13. Agencies will take all reasonable actions to achieve a target of a 20% reduction in petroleum use from the operation of state vehicles and privately owned vehicles used for state business by September 1, 2009. • By September 1, 2009, state agencies will replace standard diesel with a 20% biodiesel blend (B20). As soon as practicable, agencies will begin using a minimum 5% biodiesel blend (B5).

14. In the U.S most biodiesel is made from soy oil. Last year about 30 million gallons of biodiesel was produced, mainly in the mid-west.  Passage of the Job Creation Act last fall is expected to up the production of biodiesel to 124 million gallons or more. Where does biodiesel come from?

15. Washington Snapshot • Currently about 1 to 1.5 million gallons of biodiesel is being consumed in Washington, mainly by public fleets. By comparison, about 1 billion gallons of petroleum fuels were consumed in Washington in 2002. • There is currently about 17 biodiesel suppliers in the state and about 20 biodiesel retail outlets. • Seattle Biodiesel began operations this spring and expects to produce about 1 to 2 million gallons per year, with the ability to produce up to 5 million gallons.

16. There is a growing interest to produce in-state feedstock for biodiesel production from oilseeds - primarily canola and mustard seed. Work is being done to help develop markets for the crush or meal to enhance the market value of oilseeds in order to get farmers to commit to growing oilseed crops.  Without these markets, the oil would be too expensive to compete with out of state biodiesel.

17. A couple of potential projects are under away in Spokane and Columbia counties. Spokane County coops are looking at an integrated project which would include a crusher and a 2.5 MGY biodiesel plant. Farmers would grow mustard seed as a rotational crop and sell the meal for mustard flour or powder. If this high-value market is realized, they anticipate being able to produce biodiesel at a cost equal or below fossil diesel. Similarly, Columbia County is looking at growing both canola and mustard seed in sufficient quantities to support a 10 million gallons per year plant. 

18. Table:  Total Annual Production of US Oils and Fats 

19. Table: Biodiesel Emissions Compared to Petroleum Diesel And Costs Presently B100 costs between $1.25 and $2.25 per gallons which is pretty competitive with regular gasoline Source: California Air Resources Board (CARB); National Biodiesel Board (NBB)

20. WHAT IS SUSTAINABILITY? "..development that meets the needs of the present without compromising the ability of future generations to meet their own needs”* (*) World Commission on the Environment and Development (Brundtland Commission), and “Our Common Future”

21. Definition of Sustainability • Sustainability is the action of business in response to Health, Safety, Environmental issues that affect employees, contractors, stakeholders, and the surrounding community. • It is a balanced process of taking economic and social benefits with care for the environment and preservation of natural resources (stewardship). Courtesy of:John Carberry, DuPont

22. Figure: Conflicting Objectives of Sustainable Development

24. What is Industrial Ecology? • A metaphor, emphasizing the need to design industrial systems that mimic the mass conservation and material cycling properties of natural ecosystems. • A new set of systems for chemical engineers to design and optimize, including the integration of chemical processes with processes with industrial sectors (byproduct synergy), and the interaction of anthropogenic emissions and discharges with natural cycles of materials. • A set of design tools to address byproducts synergy (resource recovery and reuse make the entire process more cost-effective; i. e, reuse of crush or meal from biodiesel manufacturing process), and to integrate environmental performance indices into products and process design.

25. What Have We Learned Today? • Group Discussion • Conclusions

26. Questions & Comments? Thank you for your attention!