Biofuel bills cropping up

Legislation aims to aid emerging industry

COLUMBIA BASIN — The future of fuel is renewable, and for legislators like Rep. Janea Holmquist those renewable fuels could grow from the farms of the Columbia Basin.

The Moses Lake Republican is sponsoring legislation that would create a minimum renewable fuel standard for biodiesel and ethanol sold at the pumps in Washington State. Holmquist's House Bill 2738 is one of numerous bills making waves in the state Legislature that aim to create a biofuel industry from farmers and producers in Washington state.

"This is definitely about economic development and jobs," Holmquist said of biofuels. "It could literally bring millions of dollars to our state."

HB 2738 passed the House of Representatives by a vote of 70-28 earlier this month, and is currently under consideration in the senate, where Holmquist is optimistic about its passage. The bill would require all gasoline sold in the state to contain at least two percent ethanol and would require two percent of the state's aggregate consumption of diesel to be biodiesel. The requirements would kick in Dec. 1, 2008, or sooner if the two percent requirement is fully met with feesdstock grown in Washington.

Holmquist said she originally introduced the bill last year at the request of farmers in Grant County. Though the bill failed to garner attention last year, increased awareness of biofuels is bringing this type of bill to the forefront this session.

Federal standards will soon require oil companies to utilize more renewable fuels, and she sees her proposed legislation as an opportunity for Washington to take advantage of the economic opportunities that will be available as federal standards kick in.

"This is an opportunity for Washington state to become a leader, other states are looking to follow our leads," she said.

Another bill biofuels enthusiasts are watching is HB 2393, which would create a seed crusher loan program in the Washington Department of Trade and Economic Development and provide $9 million in low-interest loans to four political subdivisions in eastern Washington, including the Odessa public development authority, for the development of biofuel oilseed crushers, supporting infrastructure and facilities. HB 2393 passed the house on Jan. 30 and is currently in the Senate.

A bill similar to Holmquist's HB 2738, Senate Bill 6508, passed in the Senate on Feb. 13. The bill would require similar standards to HB 2738. When the state determines that crops grown in Washington can sustain a three percent biodiesel mandate, the minimum would be raised to five percent. SB 6508 is now under consideration in the House.

Bill Riley concedes everyone is early along in the biofuels process, but has commended Holmquist on looking into the future of the industry.

Riley is executive director of the Big Bend Economic Development Council, and said biofuels are a possibility for farmers and groups like port districts. The BBEDC and North Columbia Community Action Council have formed an alternative energy group, the nonprofit Northwest Alternative Energy Cooperative, and aim to obtain funding from the U.S. Department of Agriculture to build a portable biofuel plant as a teaching tool for farmers and students and to display at fairs and other events.

He said though that there has to be some incentive to farmers to produce the fuel. As gasoline nears $3 per gallon, Riley said he thinks farmers will notice the market for this production. Riley concedes that biofuels are never going to replace fossil fuels completely, but said there is a need to find a market that will alleviate that strain.

"There's going to have to be some stimulus toward farmers here," Riley said in pointing to legislation. "I think that's what that does is assist those in the crushing business, assist with financing."

Riley said Holmquist and the Legislature have not been able to solve all the issues at once, but said they need to begin to address them while they have the time to do so.

"This is being done in other areas, and we think it's a good fit for the Columbia Basin," Riley said, noting one of the best opportunities he has seen is through the USDA grant. With good luck, Riley said they could have the mobile production plant in working order by late fall.

Riley said a few questions do remain with biofuels, like the byproduct glycerin that has created a flood on the market. Another question is the need for seed crushing locally.

Gary Trautman feels the current legislation will be a good incentive to create an initial demand for the different biofuels. But ultimately, Trautman said, the seeds derived from biodiesel are going to have to be crushed nearby.

"It's going to take an oil seed crushing plant," Trautman said, noting there are no industrial-sized plants in the Northwest.

Trautman is part of Columbia Biofuels, a biofuels group still in the early stages with hopes to have biofuels available in Moses Lake this spring. Trautman himself recently returned from a national biodiesel conference, where he said there is a great deal of interest in the process throughout the country.