Biodiesel Cooperatives and Community Scale Projects

1. Biodiesel Cooperatives and Community Scale Projects Chelsea Jenkins Virginia Clean Cities Hampton Roads Clean Cities Coalition Biodiesel Public Education Forum May 30, 2007 Hollins University

2. Overview • Brief overview what is Clean Cities? • Categories of biodiesel producers • Biodiesel Cooperatives • Case Study

3. Categories of Biodiesel Producers • Biodiesel producers typically fall into three main categories: • Large-scale commercial: corporate or community-owned, and subject to a wide range of federal, state, and local regulations because of size and customers. • Small-scale: falls between large scale and homebrew, typically producing between 100,000 to 500,000 gallons per year, and are too large to go undetected by government but too small to easily afford the high cost of meeting regulatory requirements for selling ASTM-compliant fuel to the general public. • Individual: “homebrew” producers who produce for themselves, and tend to operate below the radar of most government oversight. • Most government incentive programs favor large, corporate players, presenting arduous challenges to the small producer. The small cooperative eliminates many of these problems.

4. Cooperative • A Cooperative (co-op) is a business entity that is owned and democratically controlled by a group of members who benefit from the use of its goods and services. Sole purpose is to provide and distribute benefits to members on the basis of their use. • Co-ops range in size from small storefronts to large Fortune 500 companies. • Usually incorporated under state law by filing articles of incorporation that grant them the right to do business. • Leadership group writes up bylaws and other necessary legal papers • Members elect a board of directors • The board sets policies and designates a manager or group to implement them and run the day-to-day operations. • Co-op’s are unique from for-profit business: Co-op’s purpose, ownership, control, benefit distribution, and extremely high customer satisfaction are key differences.

5. Cooperative • Large or small, co-ops operate for the benefit of and are governed by their member-owners. • In the process, co-ops provide jobs, support business and personal needs, and enhance quality of life. • Co-ops can sell consumer goods such as food, supplies, outdoors equipment, or biodiesel. Co-ops can also provide services such as electricity, housing, insurance, telecommunications, biodiesel delivery, testing, or marketing. • Almost every consumer need can be met by a cooperative.

6. Biodiesel Coop • Small scale community based initiatives generally don’t sell homemade fuel to the public. • Not practical to make biodiesel for public sale because of the regulatory hurdles. • Small scale cooperatives are able to bypass some of the worst regulatory hurdles GoBiodiesel.org

7. Biodiesel Coop They generally fall into one of three main categories: Very small-scale producer: involves a couple experienced fuelmakers who take care of all fuel-making chores for themselves and a small group of members. Bulk-buyer: eliminates production completely (in addition to health and safety hazards associated with biodiesel production) and offers discounted fuel to cooperative members. Some bulk-buyers coops have a large, central storage tank where a load is delivered and everyone fills up at. Others have a distributed model with more smaller storage tanks in multiple locations. Large volunteer producer group: Provides the opportunity for worker members to get trained to make fuel on a volunteer basis. Note: Homebrewers are still required to comply with state tax (licensed, bonded, and paying road taxes) and legal requirements (permits, etc.)

8. Coop Principles • Voluntary and open membership • Democratic member control • Member economic participation • Autonomy and independence • Education, training and information • Cooperation among cooperatives • Concern for community

9. Typical biodiesel coop • Worker & member owned • Volunteer based, non-profit • Mission is to provide members and the public with the technical expertise and resources needed to create their own biodiesel or increase use of biodiesel through sale to members • Members have flexibility to become as involved as they wish • Education and outreach; regional expertise • Knowledge sharing amongst eachother and other co-ops to improve production methods, • Sustainability, biodiesel from regional sources • 24-7-365; LIVE, BREATH & EAT BIODIESEL!

10. Case Study: Piedmont Biofuels Member-owned cooperative, incorporated in 2003, based in Chatham County, NC • Provides the community with pure biodiesel and complete information on renewable biofuels. • Strives to model sustainability in all aspects of our organization.

11. Case Study: Piedmont Biofuels Areas of Concentration • Education and outreach • Fuel distribution • Non-commercial fuel production • Research • Commercial fuel production

12. Case Study: Piedmont Biofuels Education and outreach: open-source; wrote curriculum for CCCC, Biodiesel Power, host website, teach Biofuels program, biodiesel, SVO conversions and fuel-making workshops, weekly tours on research farm

13. Case Study: Piedmont Biofuels Fuel Distribution: sell biodiesel someone else produces (EPA registered and meets ASTM spec); available to coop members in bulk or at several retail locations

14. Case Study: Piedmont Biofuels B100 Trail • Moncure • Pittsboro • Durham • Carrboro • Hillsborough • Raleigh (under development) • Burlington • Boone • Wilmington • Asheville

15. Case Study: Piedmont Biofuels Non-commercial fuel production: Members who choose to make their own biodiesel do so using the coop’s equipment and supplies. Zoo Reactor (v 2.5)

16. Case Study: Piedmont Biofuels Coop Research • Small-scale oilseed crop production. • Mustard seed study. • Wash water remediation with wetland plants. • Glycerin as soil supplement and goat protein supplement. • Active and passive solar thermal heating. • Photovoltaic electric generation. • Energy balance (solar thermal heating, PV fuel pump, etc.)

17. Case Study: Piedmont Biofuels

18. Case Study: Piedmont Biofuels Piedmont Biofuels (919) 321-8260 www.biofuels.coop

19. Hampton Roads Virginia Contact Information www.hrccc.org Al Christopher 804-436-3867 al.christopher@hrccc.org www.hrccc.org Chelsea Jenkins 757-256-8528 cjenkins@hrccc.org