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Promoting
Alternative Fuels Through Effective legislation
House Bills 1240 through 1243
In 2003, the Washington State Legislature and Governor Gary Locke approved a package of bills to promote in-state production and use of biodiesel and ethanol fuels. The District supported these bills as part of its Biodiesel and Oil Seed Industries Program.
These
bills form a cohesive package aimed at encouraging in-state
production of biodiesel and ethanol fuels, increasing
the supply and local availability of these fuels, lowering
fuels costs and increasing demand. The potential multi-million
dollar economic benefits for the state of Washington
are matched by the positive impacts of the improved air
quality and public health, and a significant step toward
energy independence.
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House Bills 1240 and 1241: These bills encourage the development of in-state production facilities for biodiesel and ethanol fuels and the creation of distribution and retail sales facilities. In-state
production of biodiesel and ethanol will have a significant
benefit on rural economic development and local farm economies.
Eastern Washington production of feedstock crops could add
$85 million annually to the local economy. Statewide production
and sales of biodiesel and ethanol fuels could top $2 billion.
House Bill 1240 – Biodiesel and Ethanol
Production in Washington State
- Allows machinery, equipment, labor and services for development
of biodiesel and ethanol production facilities to qualify
under the existing Distressed Area Sales and Use Tax Deferral
Program (rural counties and areas with designated community
empowerment zones).
- Provides property and leasehold excise tax exemption for
buildings, machinery, equipment and other personal property
used in the production of biodiesel and ethanol fuels and
the land on which this property is located.
- Allows a reduces B&O tax rate (.138 percent) for biodiesel
and ethanol fuel production.
House Bill 1241 – Biodiesel and Ethanol
Distribution and Retail Sales
- Provides a sales tax exemption on qualifying investments
in machinery, equipment, labor and services to establish
distribution and retail sales of biodiesel and ethanol fuels.
- Allows a B&O tax deduction on amounts received from
distribution and retail sales of biodiesel and ethanol fuels.
Note:
- Applies only to fuels that are a minimum 20% biodiesel
or minimum 85% ethanol.
House bills 1242 and 1243: These bills encourage the use of biodiesel by state agencies and establish a biodiesel pilot program with school districts. State use of biodiesel demonstrates
state leadership, and sets the example
for municipal and private fleets. In addition, state government use helps to build the biodiesel
market,
resulting in lower prices due to increase demand. Use of biodiesel by school districts help to protect
the health of children, as numerous studies have shown the
health risk from diesel exhaust.
House Bill 1242 – Biodiesel by State
Agencies
Encourages state agencies to use a blend of
20% biodiesel in all diesel-powered vehicles and equipment.
After 2006, mandate the use of a 2% blend of biodiesel as a
lubricity additive to ultra-low sulfur diesel, provided that
the use of a lubricity additive is warranted and provided that
the use of a biodiesel is comparable in performance and cost
with other available lubricity additives. In 2004, Governor Gary Locke reinforced this policy with the creation of Executive Order concerning state purchasing and sustainability practices.
House
Bill 1243 – Biodiesel Pilot Project for School Districts
Establishes a pilot program in two school districts
for use of blend of 20% biodiesel with 80% ultra-low sulfur
diesel. Program includes evaluation of emission benefits, maintenance
costs, fuel economy, and other performance-related factors.
Bill specifies that the financial burden of the program will
not be place on participating school districts or the state.
Commitment to find non-state funding from Office of Trade and
Economic Development and the Washington State Department of
Ecology.
More information is available on:
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