BioDieselNow - Renewable biodiesel fuel

I have a friend that owns a business that runs large machinery. 

He is asking if I can sell him biodiesel for his equipment.

 I don't think that I can, but does anyone know the legal way to go about this?

 I'm thinking it's way above my scope of "to do's" but am curious.

 any suggestions would be appreciated.

very good question. Im starting production of biodiesel from jatropha as well. how much of those taxes will i have to add to the price?

thanks.

I researched this last year for Illinois.  To sell to the over the road side you'll have to collect and pay fuel taxes like a gas station.  Off-road use doesn't have the same criteria so I could sell directly.  What you need to do is research via google your state's fuel sales laws.  You'll end up reading laws but you should be able to get through it.  I also hired a very experienced environmental lawyer who was ultimately no help at all since I'd already looked up all the information online.  The challenge with biodiesel production is, what to do with the glycerine waste.  It's considered a hazardous waste so you can't legally dump it on the ground or down the drain.  I have yet to crack that code for large quantities.  My personal use waste product I can give to a soap maker who turns my meager gallon a month into soap.  But when selling a hundred or so gallons a month to a commercial operator, you'll end up with 20 or more gallons in waste.  You can handle the first month, but by the 6th months you're staring at over 100 gallons of glycerin.  I'm still waiting to hear about the municipal water system overcome by bubbles created by glycerin waste dumped into drains.

A note towards the glycerin problem.

From the November 2007 Issue of Ethanol Producer Magazine

Research Reveals New Biofuels Link

Crude glycerin is a low-value byproduct of the growing biodiesel industry. But one company, Glycos Biotechnologies Inc., sees potential for the product as a feedstock for ethanol production.

by Anduin Kirkbride McElroy

MOTOR FUELS TAX: FYI

Biodiesel Fuels and Blends

Issue: Whether biodiesel fuel and biodiesel fuel blends are taxed, and the types of licenses required.

Texas Tax Code Section 162.204 exempts from tax the volume of biodiesel fuel, or biodiesel fuel blended together with taxable petroleum diesel, when the finished product sold or used is clearly identified on the retail pump, storage tank, and sales invoice.

Even though the volume of biodiesel fuel is exempt from tax, there are specific license requirements for producers, blenders, sellers, and resellers.

For example, a person who resells biodiesel or biodiesel fuel blends to other wholesalers or retail dealers for resale or makes bulk sales to end users by way of transport truck, railcar, or barge is required to be licensed as a diesel fuel distributor.

Similarly, a person who blends biodiesel with taxable petroleum diesel and resells the biodiesel blended fuel to other wholesalers or in bulk to an end user is required to obtain a diesel fuel distributor license.

Persons who blend biodiesel with tax-paid petroleum diesel fuel and use the final product for their own use or resell the biodiesel blended fuel through their own service stations are required to be licensed as diesel fuel blenders.

Persons who import biodiesel or biodiesel blended fuel into the state for their own use or resell the product through their own service stations are required to be licensed as diesel fuel importers, unless they are licensed as diesel fuel distributors.

Persons who export biodiesel or biodiesel blended fuel must be licensed as diesel fuel exporters unless they are licensed as diesel fuel distributors or diesel fuel importers.

No license is required for persons who produce or purchase B-100 (100 percent biodiesel) for use in their own vehicles or who sell B-100 through their own retail outlets. However, all storage tank labeling and invoice requirements found in Rule 3.443 must still be met.

The sales invoice must list the basis of calculating the tax as either 20 cents for each gallon of taxable diesel fuel in the blended product or a tax rate based on the percent of taxable diesel fuel in the blended product. For example, the invoice for the sale of 100 gallons of a blend of 20 percent biodiesel and 80 percent taxable diesel fuel may list the state diesel fuel tax at 20 cents per gallon on 80 gallons, or state diesel fuel tax at 16 cents (80 percent of 20 cents) on 100 gallons of biodiesel blended fuel.

See Rule 3.443, "Diesel Fuel Tax Exemption for Water, Fuel Ethanol, Biodiesel, and Biodiesel Mixtures" for additional information about definitions, invoice documentation, notices required on storage tanks and retail pumps, and refunds.

There is NO TAX and NO LICENSE for B100 for PERSONAL USE or SALE at your own station or pump. You must follow rules in this post for Invoicing and notice sign posted in the right locations.

Where I live  oil if free or they pay someone to pick it up. Texas

You will also need a "blender's license" if you produce over so many gallons being you are using Methanol... as per the Texas Comptroller's Office. 

Lowen70.... As far as getting the oil for free or being paid to haul it off... I need to talk with you if you are interested... I would be willing to work a deal on a finders fee.  I am not a dealer or in the "used oil" business, I am just stumped on finding oil.  I just want enough to fuel my personal vehicle. 

Blending license is only for blending B1,2,3,4,?  not B100 as you are not blending fuels you are reacting your oil. The methanol is not to be present after the B100 is finished so this does not pertain to us!

Conroe, Tx is a little far from me. I'm honing in on a couple of restaurants some are in contracts. I'm picky on who i'm going to use. I will sample oil before i commit aswell.

i called around the texas state offices yesterday and found the following info. maybe it will be of some help.

if you grow jatropha curcas, harvest the seeds, dry them, and haul them to a biodiesel plant here in texas, you need no licensing at all.

if you grow JC to make your own fuel and sell to no one else, you need no license.

if you grow jc, and crush the seeds and sell the oil as fuel (straight) no mixing, you need a wastewater treatment operators permit and an evaluation from the EPA.

if you grow JC as a nursury, you can obtain a license for ONE permanant building for $75 to sell JC from, saplings or seeds.

those permits range up in how many acres you are growing, to the largest, over 20 acres. at a cost of $180 per year, with that you get 10 permits to attend conferences and shows and take product with you to show off and sell as well.