Community Toolkit > Transportation > Alternative Transportation > Biodiesel

Biodiesel

Keene, NH

Community Profile: Keene is a medium sized town of about 22,500 residents located in the southwestern corner of New Hampshire, equidistant to Vermont and Massachusetts by 15 miles. Serving as the County Seat for Cheshire County, Keene has been a leader not only politically, but also environmentally, joining the Cities for Climate Protection Campaign (CCP) in April 2000 in an effort to lower energy consumption and related greenhouse gas emissions. Additionally, Keene is a stakeholder in the Granite State Clean Cities Coalition, a deployment activity within the U.S. Department of Energy's FreedomCar and Vehicle Technologies (FCVT) Program.

Project Outline:

Currently all of Keene’s 77 Public Works Department vehicles run on B20 biodiesel fuel. The Biodiesel project was initiated by Steve Russell of the Keene Planning Department in 2002.

Cost & Savings:

• There were no costs associated with the conversion of the engines to run on biodiesel fuel. The purchase of the B20 biodiesel fuel itself was assisted by a $2500 grant awarded by the New Hampshire Governor’s Office of Energy and Community Services. This grant covered the cost of the fuel (then about $0.20/gallon more than petroleum diesel) for the first three months following the switch. Once the grant resources were used up, the additional cost of the fuel was incorporated into the Public Works Department’s annual budget.
  
• The estimated annual CO2 savings for the project is 417 tons.
  
• Visit the following sites for Federal Biodiesel Incentives currently being offered: Maine, New Hampshire, and Vermont. Also, check out the National Biodiesel Board site for general information and tax incentives.
  
• To be eligible for grants from the Clean Cities Program in Maine you do not have to be a stakeholder. For New Hampshire and Vermont you do need to apply for membership, but there are no dues or fees. For more information including grant cycles and current available funding, contact the coordinator in your state:

                        ME: Steven Linnell        207-774-9891

                        NH: Becky Ohler         603-271-6749

                        VT:  Kelly Launder       802-828-4039

• On August 8, 2005 President Bush signed into law the Energy Policy Act of 2005. This can be viewed in full text of 550 pages here. The Act provides incentives for consumers purchasing alternative energy vehicles as well as alternative fuel.
• According to the Act, the credit for the purchase of a new alternative fuel vehicles is calculated based on the vehicle weight class, amounting to a sum between $4,000 and $32,000 through the year 2010.
• Certain mixed fuel vehicles, that is vehicles that use a combination of an alternative fuel and a petroleum-based fuel, are eligible for a reduced credit. If the vehicle operates on a mixed fuel that is at least 75% alternative fuel, the vehicle is eligible for 70% of the otherwise allowable fuel vehicle credit. If the vehicle operates on a mixed fuel of at least 90% alternative fuel, the vehicle is eligible for 90% of the otherwise allowable fuel credit.
• If community blends the biodiesel itself, they are also eligible for a 50 cent per gallon credit if they can provide certification of the amount of alternative fuel in the product.
• If the community is not blending the biodiesel itself, the federal incentive for fuel is not available directly, but the final cost of purchase should be reflective of the discount the blender received.
• The current cost of purchasing biodiesel B20 fuel in New England is approximately $2.91 per gallon with a fluctuation of 9 cents per gallon. As this price can vary on a day-to-day basis, check the National Biodiesel Board’s website for the latest information as well as contacts for suppliers, retailers, and distributers. This is approximately 4 cents more per gallon than standard diesel fuel. The overall cost to the community would depend on how much fuel is required for their usage, and whether they were mixing the fuel themselves or purchasing it from a third party.
• The Tax Incentives Assistance Project (TIAP) offers up-to-date information on available credits and tax forms for use when applying for the credits, which are ultimately decided by the IRS.

Details:

• For more information on the Keene Biodiesel project as well as other energy saving initiatives taken by Keene, visit their Cities for Climate Protection Website
• The community’s Local Action Plan for Climate Protection can be visited on their Planning Website.

Benefits:

• The relative ease of its implementation, since no engine modifications were necessary and the biodiesel itself requires no special storage.
• In addition to being non-toxic to plants, animals, and humans, as well as a biodegradable fuel and a renewable source of energy, using biodiesel also helped Keene to lower the particulate emissions of their fleet vehicles.
• Workers inside the fleet maintenance facility have also benefited by the reduction in fumes, reporting better air quality and subsequently fewer headaches!