Quarterly News & Updates

Representatives of Hawaiian Electric Companies visited Pacific Biodiesel's biodiesel refinery on Hawaii Island in August. Left-to-right: Jay Ignacio, President, Hawai’i Electric Light; Kevin Waltjen, Director of Hawai’i Island, Hawaii Electric Light; Ellen Nashiwa, Director of Customer Solutions & Planning, Maui Electric Company; Jenna Long, Director of Operations, Pacific Biodiesel; Sharon Suzuki, President, Maui Electric Company; Kolter Kalberg, Planning Analyst, Maui Electric Company; Faustine Edge, Executive Secretary, Hawai’i Electric Light; Mathew McNeff, Director of Power Supply, Maui Electric Company; Mike Ito, Manager of Planning, Maui Electric Company; Paul Franklin, Director of Finance, Hawai’i Electric Light and Maui Electric Company; Bob King, Founder and President, Pacific Biodiesel .

November 2018

2018 - A Look Back Company reflects on challenging year exacerbated by lack of federal support For more than two decades, Pacific Biodiesel has championed renewable fuel production from its headquarters in Hawaii where it created the first retail biodiesel pump in America back in 1996. What started as a means to divert waste cooking oils and grease from Central Maui’s landfill has blossomed into a state-of-the-art biodiesel refinery, collection fleets on three islands, and an agricultural operation that spurred the creation of high value co-products. But this year has proven to be an extraordinarily challenging one for Pacific Biodiesel and other biofuel producers across the nation. “The lack of federal support for renewable fuels has created uncertainty in the industry and that’s led to a difficult climate for renewable fuel producers like us to support the nation’s goals for energy independence,” said Founder and President Bob King. This year the biodiesel industry has received fewer incentives than ever before. It is also unclear if the FET, also known as the BTC (Biodiesel Tax Credit), that expired in 2017 will be restored. While there is support for the BTC from both sides of the aisle in Congress ( Incentive Extension receives Bipartisan Support ) , the current administration is sending a very different message. Also under this administration, the EPA has decimated the federal Renewable Fuel Standard (RFS) program by granting “hardship” waivers to big oil companies. The RFS was created by Congress in 2005 as a mandate to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil.

In This Issue 2018 - A Look Back New Vehicles added to PBL Fleet Kuleana® Launches Reef-Safe Sunscreen Featured Customer: Maui’s Fairmont Kea Lani Walks the Talk of Sustainability  Crimson Renewable Energy and SeQuential Join Forces Maui Gold Partners with Pacific Biodiesel Events Showcase Pacific Biodiesel's Community-Based Model October Farm Tours Inform and Inspire Kelly King wins Re-election Bid for County Council Biodiesel Fuels 2018 Triple Crown Industry Updates Around Town

According to King, “Under these economic conditions, we are not looking to expand our production of biodiesel in the year ahead, but rather focus on ways to further reduce our costs of production while growing our business in high-value products such as culinary oils and cosmetic oils.” The company plans to continue its outreach with fleet customers to expand the use of biodiesel in transportation statewide while exploring other markets in Hawaii for its fuel. “When the time is right for expansion, we will be ready,” said King. “In the meantime, with the current limits on incentives here in Hawaii, we may look at selling biodiesel to the West Coast where there is increasing demand for biofuels and the LCFS (Low Carbon Fuel Standard) is more favorable to the industry.” Also, Pacific Biodiesel for years supported its used cooking oil collection and grease trap pumping operations with its biodiesel sales, providing free used cooking oil collection and discounted pumping pricing to island hotels, restaurants and other foodservice facilities. “Those days are numbered,” lamented King. “Unfortunately, we are increasingly needing to pass those costs on to our customers.”

Despite the many obstacles, Pacific Biodiesel has continued agricultural operations on Maui and expanded its crushing mill and production operation, located next to its biodiesel refinery on Hawaii Island. To expand feedstock access and create other revenue streams, Pacific Biodiesel is self-funding its farming operation and development of co-products like locally produced culinary oils and cosmetic oils by its wholly owned subsidiary, Maiden Hawaii Naturals, LLC.

Bob King explains the features of the combine, used to harvest sunflowers, to visitors at the company's central Maui farm.

The company’s Kuleana® line of natural skin care products recently launched a reef-safe sunscreen, coinciding with the announcement of Hawaii’s ban on the sale of chemical sunscreens. Also, the company’s new culinary oils that launched this summer have been receiving rave reviews from Hawaii’s professional chefs; an expansion into retail products is planned for the near future. Although faced with many industry challenges in 2018, Pacific Biodiesel appreciates the continued loyalty and support of its many longtime fuel customers here in Hawaii. “ While 2018 has been a challenge for us, we are grateful to our customers who have been with us for many years including all the subsidiaries of Hawaiian Electric Company that support our fuel, the City and County of Honolulu that has used our fuel in its fleet vehicles for more than a decade, and off-road fuel users such as Extended Horizons who was the first marine tour company in the state to use our biodegradable fuel,” King said. “The steadfast support of these and all our customers reflects a commitment to reduce our state’s dependence on fossil fuels and improve Hawaii’s environment. And THAT fuels our optimism for the future!”

New Vehicles added to PBL Fleet In addition to operational improvements and facility upgrades completed by the company this year, Pacific Biodiesel has added to its fleet of trucks – all running on its locally made 100% biodiesel – including four 2019 pump trucks for its logistics division.

Kuleana® Launches Reef-Safe Sunscreen In September, Pacific Biodiesel officially launched its new reef-safe Kuleana® Sunscreen when Vice President Kelly King was a guest speaker at the 50 th Anniversary Celebration of the Sierra Club of Hawaii. During this event attended by Governor Ige who signed the state’s chemical sunscreen ban into law this summer, King announced that Kuleana Sunscreen, through its membership in 1% for the Planet, will support Sierra Club of Hawaii during its 50 th anniversary year. Since then, local retailers have been steadily ordering this natural sunscreen product that features the company’s locally made Maui Sunflower Oil and Hawaiian Macadamia Nut Oil as skin nourishing ingredients. For a complete list of retail locations throughout the state now selling Kuleana natural beauty products and sunscreen, visit: https://kuleanabeauty.com/pages/stores The Kuleana team has recently participated in several community events to increase awareness of its new reef-safe sunscreen:

Last month, Kuleana Sunscreen sponsored the 2018 Maui Paddle for a Cure event at the Hyatt Regency, providing sunscreen for giveaways and hosting a display and product demonstration table at the event’s After Party. Maui surf champion Paige Alms, above center, shows off the sunscreen with members of our team. Proceeds of the event benefitted Susan G. Komen Hawaii in its initiatives to prevent and treat breast cancer in the Hawaiian Islands.

On October 3, Pacific Biodiesel’s Marketing Director Joy Galatro and MHN Operations Manager Chris Long presented “Sunflower Farming: A Sustainable Model That Benefits Local Coral Reefs” at Maui Nui Marine Resource Council’s monthly informational meeting . The company also donated a supply of full-size Kuleana Sunscreen tubes for MNMRC’s sunscreen sampler pack, a fundraiser that helps consumers make the switch to reef safe sunscreen. For more info click here.

At the annual Made in Maui County Festival held November 2-3, Kuleana Sunscreen made its debut at the Kuleana booth; the product nearly sold out during the two-day event at the Maui Arts and Cultural Center. This largest product show in Maui County features over 140 vendors and attracts more than 9,000 visitors and residents each year.

Kuleana provided samplers of its reef-safe sunscreen to several local beach cleanup events , including the Ka’ehu Beach Cleanup sponsored by Haliimaile Distillery which now sells the sunscreen in its retail shop. Above, Kelly and Bob King joined other supporters of Malama Maui Nui for a beach clean up at Kahului Harbor in September as part of International Coastal Cleanup Day.

For updates on events and promotions, follow Kuleana on Facebook and Instagram at @kuleanabeauty and sign up for news at www.kuleanabeauty.com .

Featured Customer: Maui’s Fairmont Kea Lani Walks the Talk of Sustainability The Fairmont Kea Lani shares our commitment to greater sustainability in Hawaii. Not only does this luxury resort recycle their used cooking oil with Pacific Biodiesel, their team is supporting our new products and embracing partnership with our company in a variety of ways:

Award-winning Executive Chef Tylun Pang of Kō Restaurant at Fairmont Kea Lani has enthusiastically integrated our company’s premium Maui Sunflower Oil into several menu items, including the passion fruit vinaigrette featured in his signature Mauka Harvest Salad as well as a drizzled finishing oil on the new Sesame Ahi Tataki. Produced from the fields of blooming sunflowers farmed by Pacific Biodiesel, our Maui Sunflower Oil is a cold-pressed and unrefined oil that’s ideal for high-heat cooking, dressings or as a flavorful finishing oil. Chef Pang has also integrated our flavorful Hawaiian Macadamia Nut Oil into select dishes. To make a reservation at Kō Restaurant to try the dishes now featuring our premium culinary oils, visit http://www.korestaurant.com/

The Willow Stream Spa at the Fairmont Kea Lani features the full line of Kuleana beauty oils and has integrated the Nourish beauty oil into select spa treatments including the therapists' favorite Awa Remedy. To learn more or schedule a spa experience featuring our Kuleana oils, visit Willow Stream Spa.

Fairmont Kea Lani now offers Kuleana Sunscreen for sale at its poolside pavilion. A pop-up event held at the resort earlier this month gave guests an opportunity to sample our company’s reef-safe sunscreen and learn about the benefits of this natural sunscreen product.

A sunscreen display and demonstration was set up poolside in the morning followed by a Willow Stream Spa party in the afternoon. Beautiful sunflower bouquets were displayed throughout the resort lobby and guests were invited to wear sunflower haku lei while posing for “sunflower selfies” in front of a “virtual sunflower field” a large fabric banner displaying a beautiful photo of Pacific Biodiesel’s Maui sunflower farm in full bloom. Fairmont Kea Lani is the first resort in Hawaii to offer Kuleana sunscreen to hotel guests in complimentary poolside dispensers .

To gain a better understanding of the sustainable, zero-waste, community-based agriculture and energy model that Pacific Biodiesel practices, nearly 30 employees of the Fairmont Kea Lani restaurant and spa teams visited our Maui sunflower farm for an educational tour in October (photo at right). After a presentation by Marketing Director Joy Galatro and Sales Manager Josh Circle-Woodburn, the team enjoyed a walk through the blooming sunflower field to take photographs.

As a continuation of the education, Pacific Biodiesel was invited to be a featured vendor at last month’s 2018 Fairmont Kea Lani Wellness Day, an annual event for employees to learn about health and healthy living. Woodburn and Galatro informed attendees of Pacific Biodiesel’s full range of sustainable services and products. Following the event, Woodburn and Galatro lead in depth trainings for the spa and beach & pool teams to learn about the products and harness greater product knowledge when working with guests. Learn more about our new culinary oils at   www.MaidenHawaiiNaturals.com  and our Kuleana natural beauty products and reef-safe sunscreen at   www.KuleanaBeauty.com.

Crimson Renewable Energy and SeQuential Join Forces Pacific Biodiesel affiliate enters new chapter With the expertise and technology of Pacific Biodiesel and the experience and talent of other partners, SeQuential was formed in 2004 as a partnership to build the first commercial biodiesel plant in Oregon.

Last month SeQuential was acquired in its entirety by Crimson Renewable Energy, California’s largest biodiesel producer. As stated in a joint press release issued by SeQuential and Crimson Renewable Energy, “Together, our combined operations will form the largest biodiesel production and marketing footprint on the West Coast, integrated with one of the largest used cooking oil collection operations in the western United States.”

“We wish the company continued success,” said Pacific Biodiesel President Bob King. “With 100% of our holdings now in Hawaii, we look forward to focusing all our attention on our operations here in the state.” Read the Biodiesel Magazine article here .

Maui Gold Partners with Pacific Biodiesel Company transitioning its diesel farming vehicles to B100 LeVecke Corporation, owners of Hali’imaile Distilling Co and Maui Gold Pineapple Co, continued the company’s quest for sustainability by recently switching from petroleum diesel to Pacific Biodiesel’s renewable fuel. The majority of Maui Gold’s farming vehicles with diesel engines are now operating on 100% biodiesel. “This makes Maui Gold one of the largest B100 fleets in the state,” noted Operations Director Jenna Long. To showcase its proud use of our company’s locally made, non-toxic fuel while expanding its diversified farming operation, the LeVecke team this summer invited Pacific Biodiesel to test farming of sunflowers in small fields at its Maui Gold farm. The plantings, located alongside the daily pineapple tour route, have sparked interest and enthusiasm among visitors and employees alike. The company is also now selling Kuleana Reef-Safe Sunscreen in its retail shop at Haliimaile Distillery – and promoting Maui sunflower oil as one of the locally made ingredients.

Pacific Biodiesel's Bob King shares information about sunflower farming with the team at Maui Gold during the first blooming field of sunflowers at this Upcountry farm in September.

"In this island state with superb but limited resources, we are sensitive to the problems of pollution and the importance of living an earth-friendly life," said Joe LeVecke, president of LeVecke Corporation. "When we first met the team at Pacific Biodiesel earlier this year, we were impressed to learn about their biodiesel production, their sunflower farming and all the natural products they're developing. We are proud to support them as we partner together for greater sustainability in Hawaii."

Last month, employees of Maui Gold and the Haliimaile Distillery along with representatives of the Maui Pineapple Tour Company visited Pacific Biodiesel’s sunflower farm in Maui’s central valley, at right, to learn more about the company’s sustainable agriculture operation that produces culinary oils and cosmetic oils in addition to its renewable fuel that supports clean energy in Hawaii.

Pacific Biodiesel will continue to evaluate farming of its sunflowers in the Upcountry location in the months ahead. “We have enjoyed collaborating with the Maui Gold team and appreciate their enthusiastic support of our company’s sustainability mission and locally made products,” said Bob King.

Events Showcase Pacific Biodiesel’s Community-Based Model   Public interest in Pacific Biodiesel’s sustainable agriculture and renewable energy model continues to grow. In addition to educational tours of its Maui sunflower farm, requests for Pacific Biodiesel representatives to address community events, industry conferences, environmental groups and schools are a regular occurrence. Here are some recent appearances: October 10 - Future Focus Conference, Oahu – President Bob King was a guest speaker during University of Hawaii’s 2018 Future Focus Conference themed “The Hawaii Innovation Initiatives Forum on Sustainable Agriculture, Food Security, Cybersecurity & More.” King was part of the panel that discussed the topic “Hawaii Agriculture Envisioned into the Future”. October 14 - Isolated Power System Conference, Maui – The IPS Connect Conference, hosted by Australia and Hawaii, attracted many attendees and speakers. Bob King presented on the topic “Sustainable Biodiesel” due to significant interest in Pacific Biodiesel’s experiences in using high blends of locally produced biodiesel in various applications. October 18 - Ka Ipu Kukui Fellows Energy Halawai, Maui – Maui Oil hosted the 2018 Ka Ipu Kukui Fellows for a “Halawai” or discussion about energy. The Ka Ipu Kukui Fellows is a nonprofit, community-based program created to identify and develop young leaders in Maui County. Pacific Biodiesel Operations Director Jenna Long was asked to speak to the group, who had previously visited the Maui Sunflower farm, on how biodiesel impacts energy security as well as the nuts and bolts of infrastructure, production and logistics of fuel in the state. November 5 - Environmental Health Forum, University of Hawaii Maui College - Program Coordinator for UHMC’s Sustainable Science Management program Tim Botkin invited Bob King to speak at the Environmental Health Forum about the company’s biofuel crops, biodiesel use in Hawaii and how biodiesel fits into the state’s overall plan for renewable energy. The event was open to the public.

Bob King, at far right, shares Pacific Biodiesel's sustainable agricultural practices at the 2018 Future Focus Conference last month on Oahu. Last month, Ka Ipu Kukui Fellows engage with Operations Director Jenna Long, at right, during a discussion about energy security in Hawaii.

October Farm Tours Inform and Inspire Visitors With this season’s last sunflower field in bloom, October was a busy time for tours at our Maui biofuel crop farm. These educational tours result in long-term benefits, extending our outreach far beyond the individual attendees. Once our visitors learn about our beginnings in recycling, the quality and uses of our renewable biodiesel, and the reasons behind our sustainable agricultural efforts, they become enthusiastic supporters and advocates of our locally produced renewable fuel, natural cosmetic products and premium culinary oils. The tours also provide our marketing team with valuable market research and feedback.

Maui Electric Tour and Service Project, October 20 After an informational farm tour, employees of Maui Electric Company began their service project by donning gloves and pickers to collect from a recently tilled field fragments of old plastic irrigation tubing that remain from previous sugarcane operations. Despite a brief downpour, the team collected more than a dozen bags of the plastic waste. This is the second service project by MECO employees at the farm. Mahalo to Malama Maui Nui for providing all the collection tools and supplies.

Maui Nui Marine Resource Council, October 25 After Pacific Biodiesel’s presentation at their monthly meeting earlier in the month, Board members of the Maui Nui Marine Resource Council (MNMRC) took the opportunity to visit the farm in person. Since the sunflower farm overlooks the ocean, it reinforced the interconnection and impact of activities on the land affecting the health of our marine environment.

The Mauimama Tour and Product Demo, October 26 Moms and their keiki were invited by The Mauimama magazine editor Kate Griffiths to the central Maui farm to learn about Pacific Biodiesel’s sustainable farming practices and sample products from its Kuleana natural skin care line. Co-founder Kelly King along with Marketing Director Joy Galatro presented information to guests, who also participated in an informal focus group to share their opinion on natural products. Look for an article about the visit in the current issue of Mauimama magazine .

Kelly King Wins Re-election Bid for County Council Pacific Biodiesel Co-founder and VP Kelly King won her bid for a second term on the Maui County Council with an overwhelming majority of votes from across Maui County. King is one of only three councilmembers reelected to their seats. The other six are either first-timers or former councilmembers who ran for election after an absence of some years. “I’m excited to look forward to another year representing Maui residents as the South Maui County Council member,” King said. “It was especially rewarding to have our Maui Pacific Biodiesel crew joining my campaign at our sign waving events. Mahalo,Team PB, for your support in my re-election and covering the PB front so I can concentrate on County issues!”

Biodiesel Fuels 2018 Triple Crown World Surf League uses locally produced fuel for sixth straight year Biodiesel-fueled generators have become an integral component of the environmental practices at World Surf League events. Oahu's Oahu's premier surfing trifecta, the Van's Triple Crown, continued its sustainable practices by fueling its generators with B80 biodiesel provided by Pacific Biodiesel. The World Surf League generators provide all power for the events, which take place November 12 to December 20.  The Triple Crown includes the Hawaiian Pro at Haleiwa, the Van's World Cup held at Sunset Beach and the Billabong Pro at Pipeline. This is the sixth year for the partnership between the World Surf League and Pacific Biodiesel.

Industry Updates and Links For interesting info and the latest news Fueling Growth in the Biodiesel Industry - Today, biodiesel is the #1 alternative fuel choice for fleets, according to the National Work Truck Association and American Transportation Research Institute 2018 Survey. Read Biodiesel Magazine's feature article here. BioFry 2018 Draws Hundreds for Facts and Fries - September Capitol Hill event helped educate congressional staff about biodiesel and the U.S. companies that produce it. Click here for more. House Proposal Would Extend Tax Credits - Ways and Means Committee Chair's proposal includes the Biodiesel tax incentive with a multi-year extension. Read the article here. EPA to Keep Exempting Refineries from Biofuel Quotas - The Trump administration has decided to keep waiving some oil refineries from U.S. biofuel mandates, despite pressure from advocates to end the practice. Click here to read the Bloomberg article.

Around Town Where else we've been Nov 14 – Pacific Edge Leaders in Hospitality- Prince Waikiki, Oahu Josh Circle-Woodburn and Senior Account Executive Dana Shinsato represented Pacific Biodiesel at the Pacific Edge Leaders In Hospitality Celebration held earlier this month on Oahu. As sponsors of the event, the team had an opportunity to network with industry leaders and showcase our recycling services, premier cooking oils and Kuleana natural skin care line to our core audience.

Founded in 1995, Pacific Biodiesel is the nation's longest operating and most experienced biodiesel producer, and the only commercial liquid biofuel producer in the state. A Maui-based company with nearly 100 employees statewide, we established the first retail biodiesel pump in America and for more than two decades we've been an innovative leader in the renewable energy industry. With a nameplate production capacity of 5.5 million gallons annually, our refinery on Hawaii Island utilizes advanced distillation technology to produce the highest-quality biodiesel in the country and in 2016 became the first facility in the world to be certified by the Sustainable Biodiesel Alliance. Our company has always focused on recycling with a zero waste philosophy that incorporates development of value-added co-products. Today, our collaborative, community-based "agriculture and energy" production model demonstrates a full-circle sustainability system designed to fight climate change and help Hawaii achieve a clean, sustainable energy future.

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Our Mission:   To promote a clean, sustainable energy future through the community-based production of renewable fuels On Earth Day 2016, the Pacific Biodiesel plant on Hawaii Island became the first biodiesel facility in the United States to earn certification by the Sustainable Biodiesel Alliance for showcasing sustainable biodiesel production and distribution practices.

Pacific Biodiesel 40 Hobron Avenue, Kahului Hi 96753 Editor: Joy Galatro, Marketing Director Staff Writer & Layout: Beth Mathias, Marketing Associate  For more information visit our website biodiesel.com or contact Beth Mathias at bmathias@biodiesel.com STAY CONNECTED ‌ ‌ ‌