Four bills encouraging in-state biodiesel production, the development of retail fuel stations, and the use of the alternative fuel in state fleets and school buses were recently made law in the state of Washington. Both the House and Senate overwhelming supported the House Bills (HBs), requiring only minor amendments before being sent to the governor for signature.
The four biodiesel measures will:
• Provide tax incentives for biodiesel and alcohol (ethanol) fuel production (HB 1240);
• Provide tax incentives for the distribution and retail sale of biodiesel and alcohol fuels (HB 1241);
• Encourage state agencies to use a 20 percent biodiesel blended fuel for diesel vehicles (HB 1242);
• Direct the superintendent of public instruction to conduct a pilot project using biodiesel in school buses in communities with poor air quality (HB 1243).
All four bills are feedstock neutral, defining biodiesel fuel as a “mono alkyl ester of long chain fatty acids derived from vegetable oils or animal fats…that meets the requirements of the American Society of Testing and Materials (ASTM) Specification D 6751 in effect as of January 1, 2003.”
Bill 1240 provides a multitude of tax exemptions and reductions. Equipment and labor used in the production of biodiesel and ethanol will be exempt from state sales and use taxes, and real and personal property will be exempt from property taxes.
The bill also reduces the state’s business income tax on biodiesel production facilities, down to .138 percent.
Bill 1241 removes the business and occupation tax of .484 percent on that part of fuel distribution and retail businesses that relate to biodiesel.
Under HB 1243, two school districts located in areas of concern for pollution emissions will be selected to partake in the pilot project. Biodiesel will be blended with ultra low sulfur diesel in school buses powered by compression-ignition engines, with the project beginning in September 2003.
All four bills have a sunset clause, ceasing the programs in six years.
“These are short term incentives to spurn long term action,” commented Linda Graham of the Puget Sound Clean Cities Coaltion. “It’s to get things going.”
Clean Cities has been working for the past several years to get biodiesel legislation passed in the state.
The coalition was one of many industry partner groups lobbying for the bills, which came about after Representative Brian Sullivan saw the coalition’s Bio Bug, a Volkswagen that runs on biodiesel, last year. Graham said that eastern and western Washington legislators, which included Democrats and Republicans, came together to push the bills through.
“It was pretty amazing,” she commented.
Graham believes the initial feedstock used in any in-state biodiesel production will be waste vegetable oil due to the limited availability of plant feedstocks, which will primarily be canola and mustard due to the agricultural terrain of the state.
“I think there’s a market for both [animal and plant feedstocks] and enough of both for use in biodiesel,” Graham added.
Other States Pass Bills
North Dakota enacted a 10 percent tax credit on equipment for producers or blenders. The bill, HB 1309, also included a $.0105-cent excise reduction on B2 (a blend of two percent biodiesel and 98 percent petroleum diesel) after an eight million gallon biodiesel production capacity is met. Biodiesel is defined in the bill as a fuel derived from vegetable oil or animal fats and meeting ASTM standards.
South Dakota recently passed legislation defining “biodiesel blend” as a “special fuel containing a minimum of two percent by volume of biodiesel…a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agriculture plant oils or animal fats” and meets ASTM standards.
Colorado College Goes Biodiesel
Thanks to an inventive student, The University of Colorado at Boulder began running one of its student “Buff” buses on 100 percent biodiesel fuel made from used cooking oil that is collected from residence halls and other kitchens on campus.
Last fall, Andrew Azman, a junior in civil and environmental engineering, designed and built a processor to convert used vegetable oil into fuel-grade biodiesel as a project for a class in sustainable engineering design. He also formed a student group, called CU (Colorado University) Biodiesel, which collects and recycles the oil from several locations on campus as the raw material.
The university’s biodiesel bus, nicknamed the “French Fry Bus,” debuted in April. CU-Boulder is reportedly the second campus in the United States to power part of its fleet with 100 percent biodiesel. The University of Montana was deemed the first. Tests will be conducted on the bus to evaluate emissions, fuel economy, cost per mile, and engine wear as a result of the change to biodiesel fuel.
Ultimately, students hope to see CU-Boulder convert its entire fleet to biodiesel, although it would require buying the alternative fuel commercially at a higher cost than standard diesel fuel. Cindy Rosenberg, a graduate student working at the university’s Environmental Center, is assisting to evaluate costs and other issues related to processing biodiesel on campus.
The Environmental Center and Boulder Biodiesel, a local group, are funding the demonstration project as a test of the technology, and Azman is sponsoring a student referendum to create a student biodiesel fee to support the project on a long-term basis.
Biodiesel Bulletin - June 2003 Render