DRIVE: California's Alternative and Renewable Fuel and Vehicle Technology Program


Western States Oil Company Grant For a Bulk Biomass Diesel Dispenser adjacent to the San Jose Pipeline Terminal

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Western States Oil Company in San Jose has used an Energy Commission grant to install bulk biodiesel storage and dispensing infrastructure

Biofuels help reduce California's petroleum dependence and cut air pollution, but the lack of terminal locations, bulk storage and blending facilities prevents their wider use. At a site immediately adjacent to the Kinder Morgan Pipeline Terminal in San Jose, Western States Oil Company has converted an existing retail tank for premium gasoline into one that can dispense wholesale biodiesel. The previous, above-ground, 8,000-gallon tank was taken out of retail service and fitted with a high-speed pump and a dispenser designed for wholesale sales. The simple conversion will allow delivery trucks leaving the pipeline terminal to easily access the biofuel. The wholesale tank will hold 99 percent biodiesel (B99), which will be mixed in the truck or trailer truck to make blends of 5 percent, 20 percent and up to 99 percent biodiesel.

Grant Amount

$69,223 from the Energy Commission's Alternative and Renewable Fuel and Vehicle Technology Program

Match Funding

A minimum of $217,380 from project participants.

Project Benefits

The project will help to lower the price of biodiesel by reducing the cost of distribution and the time it takes to deliver the biofuel by truck. The biodiesel provided by this site will reduce diesel exhaust emissions, especially from older less emission controlled vehicles. Local air quality will be improved due to biodiesel's estimated criteria pollution reductions. Biodiesel made from soybeans reduces greenhouse gas emissions by at least 15 percent when compared to regular diesel. If made from waste grease, biodiesel reduces emissions by as much as 88 percent. By displacing petroleum-based diesel, the 5.25 million gallons of biodiesel will reduce greenhouse gas emissions by an estimated 32,000 tons of CO2 each year.

Grant Agreement Number: ARV-10-019

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