Holmquist announces biofuel proposals

Advisory committee met Tuesday

OLYMPIA — Sen. Janea Holmquist announced three renewable fuel legislation proposals at the first Biofuels Advisory Committee meeting Tuesday.

"We need a financial incentive to reward consumers, farmers, businesses and others who choose to use renewable fuels," Holmquist said.

She proposes biofuels, including biodiesel and ethanol, be exempt from Washington's portion of the gas tax if produced within the state. Washington's gas tax is 34 cents, she said.

She proposes red-dye diesel be exempt from Washington sales tax too.

"We need to help those farmers who elect to use a renewable fuel," she said.

Her final proposal is to change the State Environmental Protection Act process concerning biofuel storage tanks. The process for the installation of tanks and other infrastructure installation for biofuel needs to be streamlined because storage facilities must be in place before late 2008, Holmquist said. Renewable fuel standards take effect by late 2008.

She believes the proposals will prepare Washington for the renewable fuel standards.

Holmquist plans to present her proposals at the 2007 Legislative Session.