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From Coast to Coast: America Turns to Biofuelsby: Mason Rippey
Americans concerned about rising energy prices, national security, and environmental issues are turning to alternative fuels like biodiesel and ethanol as a way to reduce the nation's dependence on foreign oil supplies. As the supply and availability of biofuels continues to grow, state and federal lawmakers are providing more incentives to produce and use them.
Since 2000, domestic production and availability of both biodiesel and ethanol have grown exponentially. In 2005, the US produced approximately 75 million gallons of biodiesel. Experts predict that over 1 billion gallons will be produced in 2006. Ethanol production is also poised to hit record numbers in 2006, at a forecasted 4.7 billion gallons. New state legislation along with federal tax incentives seek to increase biofuel production even further.
On the east coast, Pennsylvania Gov. Edward G. Rendell launched the “PennSecurity Fuels Initiative”. The new initiative is designed reduce the nation’s dependence on foreign oil by replacing 900 million gallons of the state’s transportation fuels over the next 10 years with renewable sources. It also requires that a certain percentage of retail transportation fuel sales within Pennsylvania include fuels such as biodiesel. Maryland also sees potential in biofuels, requiring that by 2008 at least 50 percent of vehicles using diesel fuel in the State vehicle fleet use a blend of fuel that is at least 5 percent biodiesel.
On the west coast, California Gov. Arnold Schwarzenegger issued an Executive Order that establishes targets for biofuel production and use within the state of California. The order mandates that California produce and use a minimum of 20 percent of its biofuels, both ethanol and biodiesel, by 2010, 40 percent by 2020 and 75 percent by 2050. In Oregon, The Portland City Council unanimously approved an ordinance requiring all diesel fuel sold in the city to contain a minimum blend of 5% biodiesel, and all gasoline sold in the city to contain a minimum blend of 10% ethanol. In Arizona a state panel dedicated to lowering greenhouse gas emissions, has followed suit by recommending use of alternative fuel vehicles (AFV’s) for state vehicles, and increasing state biodiesel and ethanol production.
The Midwest continues to serve as the hub of biofuel production with Indiana, Illinois, and Minnesota providing over half of the nation’s biodiesel and ethanol. Minnesota currently leads the US in consumer ethanol availability, with almost 200 fueling stations offering E85 ethanol. Indiana has extended a law that increases the maximum amount of credits that may be granted for biodiesel production, biodiesel blending, and ethanol production. In Illinois, the house unanimously approved a bill that makes biodiesel blends eligible for state rebates and grants. Illinois has also eliminated state sales tax on E85 ethanol, thus making its price competitive with unleaded gasoline.
On the federal level President Bush has also showed his support of biofuels by increasing the DOE's biomass research funding by 65% to $150 million in 2007, the goal is to make cellulosic ethanol cost-competitive with corn-based ethanol by 2012 in order to reduce the nation's future oil consumption.
Consumers and state fleets are not the only groups that stand to benefit from the use and production of biofuels.
State and federal programs have created incentives that have opened new markets to farmers who use and grow feedstock to produce ethanol and biodiesel. Throughout the nation, farmers are finding financial incentive to turn their agricultural commodities and waste products into renewable fuels. Similarly, livestock farmers now have similar financial incentive to turn their waste by-products into renewable fuel.
In Oregon, House Bill 3034 includes waiving the "use fuel tax" for farm vehicles burning 100% biodiesel. The other bills included in the legislative package also provide incentives for biofuel production in Oregon utilizing canola and soybean crops. In Pennsylvania, extra tax credits are given to farmers who providing feedstock for fuel to be produced and distributed within the state.
As incentive for biofuels continue to grow, so does their popularity and availability in the mainstream market.
Examples of biofuels mainstream appeal can be found in musical acts such as The Indigo Girls, Bonnie Raitt, and Pearl Jam that have toured the country using only biodiesel blends to fuel their buses. Willie Nelson has become one of biodiesel’s biggest champions by founding “Willie Nelson Biodiesel”, a marketing group dedicated to the promotion and production of American-made biodiesel. Automotive giant General Motors has also launched its “Think Green, Go Yellow” campaign promoting their new ethanol-compatible Flex Fuel Vehicles, and the use of E85 ethanol fuel.
Across the country, more fueling stations are making ethanol and biodiesel available to the public at the pumps. In Oregon, SeQuential Biofuels, LLC, opened the country’s first solar-powered biofuel station. The station boasts one of the state’s largest solar-arrays, a living “green roof”, and storm water detention “bioswales” where plants will filter pollutants from rainwater. Consumers will not find any fossil fuels that are not blended with biofuels at the station. What is offered is E10 and E85 ethanol fuel, as well B5, B20, and B99 biodiesel blends. SeQuential Biofuels is one of the first of many emerging biofuel retailers that offer a glimpse into the bright future of renewable energy.
From California to Pennsylvania, Americans are realizing the potential of domestically produced, renewable, cleaner-burning fuels. As energy prices soar, and the situation in the middle-east continues to become more complicated, the US is turning to the simple choice: biofuels.