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Northwest Environmental News

Biodiesel gathering steam

September 28, 2005

Fueled in part by high diesel prices and the twin hurricanes that pushed those prices even higher, the Washington Legislature may take its biggest step yet in promoting the biodiesel industry.

State leaders are considering direct state funding for a biodiesel crushing and refining facility in Eastern Washington -- a move that could help position Washington as a national leader in a once-obscure energy sector that's getting renewed attention.

Rep. Hans Dunshee, who chairs the powerful House Capital Budget Committee, said he has identified money that could build a 5-million-gallon biodiesel plant at one of three locations in eastern Washington: Columbia County, Lincoln County or the Spokane vicinity. These are three areas where farmers are considering growing the crops, such as mustard and canola, that yield oil that can be made into biodiesel fuel.

Dunshee, D-Snohomish, plans to move fast and said he hopes to introduce a bill soon enough to encourage farmers to plant a significant oilseed crop as soon as next spring.

To make that timeline, several questions must be answered soon, including which site makes the most sense. Because the state can't directly provide money to private companies, legislators also must find an appropriate way to fund the project -- perhaps through some sort of grant to a governmental or quasi-governmental agency.

The source of the funding, Dunshee said, could be a portion of the $5 million previously set aside by the state to deal with potential military base closures. Because no major bases were closed in the recent round, the money earmarked to aid in closure transitions wasn't spent.

Dunshee's proposal is significant for two reasons: The committee he chairs could actually provide funding, and he has identified a particular source rather than merely endorsing the idea.

"It's not often when you get the chairman of the House Capital Budget Committee agreeing to put hard dollars behind something like this," said Rep. Brian Sullivan, D-Edmonds, a top biofuels supporter in the Legislature.

Dunshee said the proposal could bring significant economic development, energy security and environmental benefits to Washington. The state already has biodiesel refiners such as Seattle Biodiesel, retailers such as SeaPort BioFuels, and government, business and individual users. But right now, the oil used to make the fuel is shipped in from the Midwest. Encouraging Washington farmers to grow canola or mustard for biodiesel production would bring every step of the industry into the state for the first time.

The proposal also could reduce the cost of the fuel by driving down shipping and production costs and driving up economies of scale. That could be particularly helpful for farmers, who are suffering as high diesel prices slice into their already razor-thin profit margins.

Continue reading this story from the Puget Sound Business Journal:
Biodiesel gathering steam