Washington State Adopts Biodiesel Requirement
National Biodiesel Board to Offer Implementation Guidance

JEFFERSON CITY, Mo.– A renewable energy standard has passed in Washington, making it the second state to commit to making biodiesel an everyday part of the diesel fuel market.

The bill, signed today by Governor Chris Gregoire, sets a requirement that at least 2 percent of diesel sales by volume will be comprised of biodiesel, with 2 percent ethanol in the gasoline market.

“We are establishing Washington as a leader of a dynamic, 21st century industry,” said Governor Gregoire, who requested the bill. “Alternative fuels will help bridge the rural and urban divide in Washington and across the nation: these crops can be grown and crushed in rural regions of the state and put to good use in urban areas. Biodiesel and ethanol are also good for the environment - they reduce air polluting emissions and do not contribute to climate change.”

The requirement goes into effect November 1, 2008 or when in-state production can meet the 2 percent requirement, whichever comes first. The law is expected to create demand for 20 million gallons of biodiesel annually in the first year. The U.S. Energy Information Administration reports that the state of Washington consumed one billion gallons of diesel in 2004.

“This is truly a bill the entire state can be proud of,” said Rep. Janea Holmquist, who sponsored the State House version of the bill. “We're talking about new jobs, cleaner air, and more independence from oil. That's a win-win for all citizens of Washington.”

Senator Marilyn Rasmussen sponsored the State Senate version of the bill.

The requirement is similar to a law that took effect in Minnesota in 2005. Under the Washington law, the Director of Agriculture will form a Biofuel Advisory Committee to advise the director on implementation of the requirement. NBB will work cooperatively with the committee to help ensure a smooth transition. NBB has provided, and will continue to provide technical support, education and other outreach support to help ensure the requirement is understood and proceeds smoothly.

NBB plans to issue a list of implementation recommendations to the committee. Those will include petroleum industry education and quality control measures for production and distribution. Already in place on a national scale is a voluntary industry quality control program called BQ-9000. The program accredits companies that adopt strict quality assurance practices. NBB recommends all biodiesel producers become accredited under the existing BQ-9000 program.

The Washington 2 percent requirement is based on biodiesel sales by percent volume. This means petroleum distributors can sell any blend, so long as biodiesel makes up 2 percent of total sales. It will ramp up to 5 percent total diesel fuel sales after the Director of Agriculture determines that there is crushing capacity and a supply of materials to satisfy a 3 percent requirement.

There is currently one biodiesel producer in the state, Seattle Biodiesel. The company reports its capacity to be 5 million gallons annually. Baker Commodities, a California-based supplier, says it plans to open a 10 million gallon plant in Tacoma, Wash. in June of 2007. Another company called Washington Biodiesel says it plans on constructing a plant with up to 35 million gallons of capacity in Warden, Wash., by September 2007.

The bill also requires state-operated vehicles and ferries to use a 20 percent biodiesel blend (B20) starting in 2009.

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