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U.S. Senate's energy bill pushes grants for biofuels

June 29, 2005

Measure would open new markets in state, Cantwell says

WASHINGTON — Miles Richardson at University Volkswagen and Audi in Seattle is a firm believer in biofuels. So is King County Executive Ron Sims. Last year, Washington State Ferries and Seattle City Light came on board.

Yesterday, the Senate did as well, endorsing $550 million in grants over the next five years to perfect and promote a new class of biofuels made from vegetables such as soybeans, mustard seed and canola and from high-starch crops such as timber, wheat straw, barley and even municipal waste.

The provision, sponsored by Sen. Maria Cantwell, D-Wash., aims to wean the United States from foreign oil while providing new markets for crops grown in Washington. It was part of the overall energy bill passed by the Senate yesterday.

“Washington state can show how you lead the way on a new energy economy,” Cantwell said. Cantwell said she expects the University of Washington and Washington State University to apply for grants, as well as entrepreneurs and others interested in expanding the market and availability of biodiesel. Cantwell’s provision will underwrite research programs geared toward improving the quality and availability of biofuels.

Cantwell argued successfully that expanding biofuels beyond ethanol, which uses corn, makes sense both economically and in promoting energy independence. Virtually all ethanol is produced from corn grown in five Midwestern states, a reality that adds 30 to 50 cents per gallon to the price because of the distance it has to be shipped. Using crops grown closer, she said, will drive the cost down and open up new markets. “By expanding production of clean biofuels, produced from crops grown in the Northwest, we will create jobs right here in Washington state, while lowering prices at the pump and decreasing our dependence on foreign oil,” Cantwell said.

Cantwell’s provision was part of a sprawling, $18 billion energy bill the Senate adopted yesterday by an 85-12 vote. Among other things, it seeks to double the use of ethanol to 8 billion gallons a year by 2012, provides incentives to increase imports of natural gas, and it provides tax breaks to people who buy efficient appliances and gas-electric hybrid cars.

It also offers loan guarantees of up to 80 percent for developing new technologies for clean coal and next-generation nuclear power reactors and requires that utilities produce 10 percent of their electricity from renewable sources, such as wind and biomass from garbage or plants, by 2020.

While yesterday’s vote marked a significant step forward, the energy bill is far from finished. The Senate version must now be reconciled with a much different version passed by the House. Congress must also approve the money for Cantwell’s grant program separately, though if it remains in the final energy bill, that money will likely be provided.

The new breed of fuel championed by Cantwell has emerged as a common part of everyday life in Seattle. City of Seattle vehicles have been using a blend of 80 percent low-sulfur diesel and 20 percent biodiesel since late 2003. Commercial garbage trucks cruising the city use the same blend.

King County Metro buses began using a blend of 5 percent biodiesel mixed with regular diesel last year, and officials hope to eventually use it in all 1,100 buses in the fleet. Washington State Ferries began using biodiesel on the Fauntleroy-Southworth-Vashon ferry route in an effort to reduce air pollution. The program was suspended this month because engine filters became clogged, but ferry officials say they hope to fix the problem.

“It’s exciting to be in the forefront of alternative fuels, and we knew there would be challenges,” said Mike Anderson, director of the state ferry system. “We are committed to figuring out what is causing the filter-clogging problems.”

Seattle also seems to be a hub of commercial and private action. The city is home to Seattle Biodiesel, a refinery that began operations this year and can produce up to 5 million gallons a year. The Seattle area has at least seven service stations and two marinas that sell biodiesel. Dr. Dan’s Alternative Fuel Werks in Ballard, the biggest retailer to individual drivers, will open another pump in the Roosevelt area within the next few weeks.

Five years ago, biodiesel could barely be found in Washington. Most of it was made by home brewers, a pioneering group that helped raise consciousness of the product. Today, more than 1 million gallons are consumed in Washington each year, making the state one of the nation’s top users of biodiesel.

Continue reading this story from the Seattle P-I:
U.S. Senate’s energy bill pushes grants for biofuels

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