|
|
|
 |
|
Home / Washington Business - April 2006 / Pushing Biodiesel by Legislative Fiat |
|
|
|
 |
|
|
|
Pushing Biodiesel by Legislative Fiat |
|
|
|
Written On: April 2006 |
|
|
|
Written By: by Daniel Brunell |
|
|
|
Among the hot topics debated in Olympia this session were the alternative energy bills. To supporters, they represent the great first step for energy independence, a way for farmers to be more self-sufficient, and it's another way that Washington can be a national environmental leader. To detractors the biodiesel bill places Washington's economy at risk for feel-good measures, it does nothing for energy independence, and farmers and everyone who uses biodiesel will be at risk.
Biofuels were popular in the early 20th century. However by the 1930s, petroleum-based fuels with their greater quantities, a more developed infrastructure and lower prices overtook biofuels. With the need for energy alternatives, people are looking again at biofuels.
This year's biofuel bill contains several things. First, it gives incentives for farmers to grow crops that can be made into bio-fuels. Second, it mandates that 2 percent of all diesel fuels sold in Washington will be biodiesel by 2008. Third, it gives the Washington State Department of Agriculture the power to enforce and regulate the law.
"If the price of crude goes up, then we don't really need the mandate because the price of alternative energies can compete in the market," said Sen. Mark Schoesler, R-Ritzville. "If the price of crude goes down, this legislation will be a burden on the state economy."
"The reason why we put the mandate in is to guarantee market access for alternative energies," said Rep. Hans Dunshee, D-Snohomish.
More than 80 percent of all diesel engines in Washington are sold to commercial customers ranging from road and fire departments to truckers and heavy machinery operators. They are concerned about what biodiesel might do to their engines. Some engine manufactures are voiding warrantees if biodiesel is used. Many operators are nervous, especially after hearing about problems with Minnesota’s biodiesel mandate.
"What happened in Minnesota is that a bad batch of biodiesel that reached market scared a lot of consumers," said Christophe Allen of ACME Fuels. "They were not ready with the quality control necessary to bring this to market the right way. The mandate forced them into a bad situation that I hope we don't repeat."
For the last two years, ACME has successfully introduced B20 and B99 mixtures of biodiesel in their stations. Even though they are providing enough biodiesel to be in compliance with the mandate, ACME doesn't support the mandate. "If people are forced into something, people tend to push back. I think we need to encourage the demand instead of demand the demand."
"We learned the lessons from other states, hence we put several safety measures in the bill," said Rep. Janéa Holmquist, R-Moses Lake. "We will have high quality-control standards to ensure that we have a safe, clean supply of biodiesel. This is all about making sure that we open this product to market and give it a kick start."
The Legislature set up a fund to provide long-term low-interest loans and other forms of assistance to farmers in Washington state to produce alternative energies, with a maximum loan of $5 million. The goal is to have a self-sufficient biofuels supply in the state and bring more economic stability to eastern Washington through a new energy market.
There are concerns, however. Some say that it will be impossible for Washington farmers to compete on the open market. "The price to import canola is half what it costs [to produce] in the United States," said Bill Kidd, director of external affairs with BP. "Even though this is intended to help Washington farmers, it gets them into a market which they cannot compete."
The fear is that farmers who want the mandate and start producing biofuels, will be left holding that bag. "When I talked to my constituents, they said they wanted the mandate because it will create a market," Rep. Holmquist said. "These are smart people and have been farming for generations. They would not be doing this if they didn’t think they could compete."
"This is either the end of the world or the greatest thing in the universe," Rep. Dunshee said.
|
|
|
|
|
 |
|
