Filling up on soybeans and diesel

By Brian Farkas

updated 11:30 a.m. ET Oct. 2, 2005

CHARLESTON, W.Va. - Sherry Dean has a secret she’s been keeping from her drivers since March — their Upshur County school buses are running on an alternative fuel made of vegetable oil and diesel.

“I wanted to run it without my drivers or mechanics knowing,” she said. “That way I can have a true feeling for how it’s doing.”

So far, the results have been “great.”

Dean is among a slowly growing number of county transportation directors in West Virginia and across the nation who are switching from straight diesel to a vegetable oil, diesel mixture called biodiesel.

Biodiesel use has been growing since 1992 when Congress passed the Energy Policy Act in a move to reduce the nation’s dependency on foreign oil. It has since been approved by the federal Environmental Protection Agency as an alternative fuel.

100 school systems on board
Since 1999, biodiesel use nationwide has grown from 500,000 gallons to 25 million gallons in 2004. It is estimated that usage will surpass 50 million gallons this year, said Amber Pearson with the Missouri-based National Biodiesel Board. The board was established in 1992 by soybean commodity groups to promote the use and research of biodiesel.

School systems have contributed to the growth. About 100 systems nationwide have made the switch, “and that number is growing all the time,” Pearson said.

Nevada’s Clark County started using the fuel after lawmakers in that state required the phased-in purchase of alternative-powered vehicles. The school system, which includes Las Vegas, uses about 3 million gallons a year, said Frank Giordano, who oversees the county’s fleet of 1,300 school buses and 1,600 other vehicles.

“The good part of that is we’ve displaced 600,000 gallons of petroleum fuel,” said Giordano. “That’s something we’re pretty proud of.”

No modifications required, less emissions
While county and school officials say they haven’t noticed any appreciable increase in miles-per-gallon, they all say biodiesel doesn’t require expensive modifications to their diesel engine buses. Also, the fuel produces less emissions and is healthier for the 24 million schoolchildren who ride buses daily.

And, perhaps, more importantly, recent petroleum price increases — coupled with state and federal incentives — now makes biodiesel an economical choice.

The EPA announced a $7.5 million grant program over the summer to help school systems reduce emissions from their older buses through replacing engines or switching to alternative fuels.

Kentucky officials expect to announce a $48,000 grant program in October. The state’s 176 county and municipal school systems can use the money to pay the difference between regular diesel and biodiesel.

Switch could mean more funding
New Jersey also offers biodiesel on a statewide contract for local and state agencies to use. The state also has a biodiesel rebate program to offset the additional cost.

Four of West Virginia’s 55 counties are using the fuel, and several more are planning to make the switch. Those that do use biodiesel are eligible for increased state transportation funding.

“I was banking on fuel continuing to rise,” said Buster Nicholson, Jefferson County’s operations director. “It’s kind of a hedge against inflation.”

The county, which is about 90 miles from Washington, D.C., began using the fuel in May and Nicholson said the change may generate about $60,000 in additional funding from the state Department of Education.

Under the state school aid formula, counties receive about 85 cents for every dollar in transportation costs. By switching to biodiesel, the reimbursement increases to 95 cents. While it takes up to two years for the state to begin paying at the higher rate, “once that cycle kicks in, it just keeps coming,” Nicholson said.

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