Laws pass muster in three U.S. states

August 1, 2006

Lawmakers have stepped out in support of renewable fuels bills in several states across the nation.

In Louisiana, Gov. Kathleen Blanco approved a bill that calls for ethanol to make up 2 percent of the state's total gasoline sales within six months of monthly production in the state reaching 50 MMgy. The state currently has no ethanol plants, but there are projects in the works, according to Brian Breaux, associate commodity director for the Louisiana Farm Bureau Federation. The bill also specifies a 2 percent biodiesel mandate, within six months of biodiesel production reaching 10 MMgy in the state. For the standard to be implemented, the price of ethanol has to be equal to or less than the price of unleaded gas, he said.

In Missouri, legislators approved a bill that was signed by Gov. Matt Blunt on July 5. The bill requires gasoline in the state to contain a 10 percent ethanol blend beginning Jan. 1, 2008. If the price of ethanol rises above the price of gasoline, the standard will be suspended, according to Sen. John Cauthorn, the author of the bill. "I am pleased to sign this bill giving Missourians access to the affordable, homegrown gasoline they want and that they can be proud to use when they fill their tanks," Blunt said in a press release. "This renewable fuel standard benefits consumers, our economy, the environment and Missouri farmers."

In Ohio, an alternative fuels bill passed muster with Gov. Bill Taft. "We're working hard to make Ohio a leader in the production and deployment of alternative fuels to reduce our dependence on imported oil and focus on fuels we produce here in our state," Taft said in a press release. A key provision of the bill was a grant program to provide fueling and blending infrastructure for E85 and B20 or higher, according to Sam Spofforth, executive director of Clean Fuels Ohio. The bill also includes language that requires state fleet vehicles to fill up with either B20 or E85 "when reasonably available at a reasonable cost."

New York Gov. George Pataki proposed an energy independence plan that was approved by legislators, according to Peter Constantakes, spokesman for the governor. The state budget includes $20 million for the development of a pilot cellulosic ethanol plant, which will be awarded by competition bid (see Business & People page 20). A renewable fuel production tax credit was also established to provide tax savings of up to $2.5 million per facility annually, based on the quantity of fuel it produced.

Some proposed laws weren't approved. In May, Colorado Gov. Bill Owens vetoed legislation that would have mandated all gasoline sold in Colorado to contain at least 10 percent ethanol from November through April of every year. "This bill is yet another intrusion on the free market and is clearly unnecessary given the continued growth of ethanol production and use," he said in a veto letter.

Soon after the governor vetoed the ethanol bill, the Governor's Office of Energy Management and Conservation (OEMC) announced an ethanol coalition had been formed to increase awareness and use of E85 in the state. The office worked on the project for six to eight months before announcing it, according to Kourtnie Harris, director's assistant at the OEMC.
For an update on federal ethanol legislation see A View From the Hill on page 29.

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