Beginning Jan. 1, 2009, Missouri diesel fuel may be required to contain at least 5 percent biodiesel by volume, according to state Sen. Bill Stouffer. He introduced Senate Bill 204, which would require biodiesel to be blended in the state's diesel supply.

The bill amends the Missouri Renewable Fuel Standard Act to include biodiesel. The act, which requires most Missouri gasoline to contain at least 10 percent ethanol by Jan. 1, 2008, was signed into law in July 2006 by Gov. Matt Blunt.

Stouffer's bill requires that biodiesel used to meet the requirement would be produced and distributed by accredited producers and certified marketers under BQ-9000, which is the biodiesel industry's voluntary fuel quality assurance program. "We used the BQ-9000 standard with cold fuel filtration so we have a premium fuel on the market," Stouffer said. "The easiest way to kill this industry is to allow poor fuel in the retailer's market."

Unlike Minnesota's B2 requirement, which became effective in fall 2005, Stouffer's bill doesn't tie biodiesel use to an in-state production quota. The Minnesota requirement called for at least 8 MMgy of in-state production before it took effect. "By January 2009, we'll have four times as much production in Missouri as needed to satisfy the 5 percent," Stouffer said.

Missouri consumed approximately 34 million barrels of distillate fuel in 2004, according to the Energy Information Administration. The state has three biodiesel plants with capacity to produce approximately 36 MMgy. There are at least four biodiesel plants under construction with capacity for 98 MMgy of biodiesel. Cargill is also developing a 30 MMgy project in Kansas City, Mo.

Stouffer said biodiesel would be injected at the rack level, allowing blenders to splash higher blends of biodiesel if required. "Retailers don't want to put in the extra infrastructure such as heated tanks," he said. "We're trying not to burden them."

Stouffer said he is pushing for B5 so that if distributors and retailers need to put in infrastructure they are able to distribute the cost over more gallons of fuel.

A 2009 implementation was selected because of issues surrounding ultra low sulfur diesel (ULSD), according to Stouffer. He said there have been problems with ULSD holding diesel fuel additives. Stouffer said he wanted to give blenders time to iron out the problems so biodiesel isn't tagged with the blame.

The bill's text says if the acquisition of the biodiesel-blended fuel is more expensive for a distributor than conventional diesel fuel, the distributor is not required to acquire the biodiesel-blended fuel. "Neither this nor the sale of conventional diesel fuel at retail will be considered a violation of the act," the bill said.

SB 204 has had one hearing in the Senator Agriculture, Conservation, Parks & Natural Resources Committee. Stouffer said the earliest it would leave committee is next week.

Stouffer said he introduced the bill as an answer to importing crude oil. The state has no active oil wells. "This is our above-ground oil well, if you will," Stouffer said.

Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.

Posted: 10:45 a.m. CST Thursday, January 25, 2007