Washington legislature strikes a blow for energy independence,boosts biofuels economy
Renewable fuel standard will attract biofuels jobs, provide farm income
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The legislative session began with Republicans and Democrats calling for new energy independence strategies.  And with strong leadership from Governor Christine Gregoire and Representative Janea Holmquist (R-Moses Lake), they opened up a large new market for biofuels in Washington State.
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Bi-partisan cooperation for a major new energy policy can be hard to come by. But concerns about volatile oil prices, a struggling farm economy, and global warming pollution from fossil fuels proved a potent combination. Legislators passed a major bill establishing market access for ethanol and biodiesel, and a variety of incentives for in-state fuel crops and production facilities.
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These bills attracted unprecedented support from a politically diverse coalition that included farmers, organized labor, conservation groups, investors, entrepreneurs, and fuel producers and distributors. Supporters hailed it as a major victory for energy security, farming communities, good jobs, and environmental protection.
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“We are talking about economic development, revitalizing some of our agricultural communities, as well as cleaner air,� said Representative Holmquist. “This is a step in the right direction in breaking our addiction to foreign and domestic oil.�
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Representative Janea Holmquist was the prime sponsor in the house. Senator Marilyn Rasmussen was the prime sponsor in the senate, with leadership from Senator Eric Poulsen, chair of the Water, Energy and Environment committee.
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“This state has shown once again that economic prosperity, healthy communities, and conservation goals are not competitors. They are partners,� said K.C. Golden, Policy Director for Climate Solutions, a regional group working to build the clean energy economy. “The Legislature and the Governor have declared: ‘Washington is open for clean energy business!�
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The renewable fuel standard is designed to increase biofuel use as the state’s capacity to grow and produce biofuels increases. It contains specific provisions for expanding the market over time as the local industry grows. The standards start at 2%, and ramps up to 5% for biodiesel and 10% for ethanol. State vehicles and vessels will use higher percentages of biodiesel.
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The Washington State Apollo Alliance of Washington, supporting good jobs and energy independence, made the renewable fuel standard a priority this year. Washington State Labor Council, AFL-CIO President Rick Bender said the bill “will create a stable, growing market for biofuels. It’s the kind of strong, decisive, market-building policy that will get us moving toward a more secure energy future.�
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Washington’s environmental community made this bill one of four priorities for the session, as well. Agricultural interests are becoming increasingly focused on biofuels and renewable electricity as opportunities to diversify and strengthen Washington’s farm economy.Â
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“The time is now. The stars have aligned. There is no reason we cannot produce clean, alternative fuels,â€? said Washington Agriculture Director Valoria Loveland, speaking to an overflow crowd in Spokane that gathered last week for the Harvesting Clean Energy conference.Â
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Speaking at the same event, Washington Farm Bureau President Steve Appel said, “We believe that biodiesel and other biofuels hold great promise for America’s energy future. And we hope to see Washington’s farmer play an important role in that future.�
The renewable fuel standards will begin to take effect in 2008, after an advisory group helps the Department of Agriculture develop rules for implementation. Industry experts anticipate that the new fuel standards, one of the first in the nation, will attract substantial investment in growing biofuel feedstocks and producing the fuel.Â
The state has a huge potential to produce “advanced biofuels,� like ethanol from wheat straw, that can provide major reductions in fossil fuel use and global warming pollution in the future. Iogen, a Canadian firm, expects to be the first large producer of this fuel, called “cellulosic ethanol� – and they see Northwest wheat straw as their feedstock-of-choice.
This new state biofuels standard makes Washington a leader in national efforts to meet the federal Energy Bill's new Renewable Fuels Standard of 7.5 billion gallons per year by 2012. State fuel standards build biofuels industries positioned to take advantage of guaranteed markets created by the federal standard, while states without such industry-building standards could be passed by in the race to grow biofuels markets.Â
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The Northwest is positioning to become the leader in the biofuels industry. Montana already has a fuels standard. Idaho’s senate just passed an ethanol fuel standard. Oregon’s renewable fuels standard narrowly failed last year and Governor Kulongoski committed to increasing investment in biofuels in his annual state-of-the-state speech in late February. Minnesota and Hawaii are the only other states that have renewable fuels standards. Only Minnesota also calls for biodiesel in its mix.
