Why does my company need access to a Tier 1 or Tier 2 to sell my biodiesel?
According to the EPA, if your company will be selling your product for "on road" use you need to get registered with the EPA.
How do I know which testing does my company need?
If you are a new company and have previous years sales of less than $30million dollars, then all that is required is a Tier 1. If you had revenue greater than $30 million then a Tier 1 and a Tier 2 are required.
What is the difference between these tests?
A Tier 1 (engine testing) was conducted by Nextfuels to be able to sell our product for "on road" use and to grant other companies access to our testing so that they can file for the $1 tax credit.
Why would I pay for access to a Tier 1 when I can join the National Biodiesel Board and get access to a Tier 1 and a Tier 2?
The answer to this is very simple-Nextfuels is allowed to recoup the money it spent on getting approval(appr $650,000) and only charges a one time fee for access to our Tier 1. The NBB has a program where you must make a lifetime commitment to their association and pay a percentage of your sales to the organization forever. They also have the right to audit your company and several other rights that Nextfuels feels is unduly onerous. That is the reason Nextfuels paid to get its own access when the NBB made it available to them.
What if the tax credit is not extended. Do I still need access to a Tier 1?
Even if congress does not extend the tax credit, if you intend to sell your biodiesel for use "on road" , then you will need to have your product registered with the EPA and they require at least the engine testing data(Tier1) for approval.
How do I get approved with the EPA?
Obviously the first thing you will want to do is call Jim Caldwell at the EPA at 1-202-343-9303 in the Fuels Division to apply and ask any questions regarding this process. If you want access to Nextfuels testing data then please contact me at the following location. Nextfuels will be happy to make our testing available to you.
Kevin Gorman
Nextfuels
380 Bush St #300
San Francisco, Ca 94104
work: 1-415-578-4419
cell: 1-817-343-3559
Kevin@Nextfuels.com