Lawmakers, governor pushing to make state a biofuel pioneer

OLYMPIA — Washington is poised to become the second state in the nation to mandate the use of ethanol and biodiesel — over the objections of truckers, railroads, business groups and even some farmers.

Legislation backed by Democratic Gov. Christine Gregoire and Democratic leaders in both houses sets a deadline for requiring gasoline and diesel sold in Washington to be mixed with fuels made from farm crops.

It would mandate that all gasoline sold in the state contain at least 2 percent ethanol and that 2 percent of all diesel sales be biodiesel by December 2008. Two versions of the bill that do essentially the same thing are moving through the Legislature. One is expected to pass as early as next week.

Supporters say mandates will help wean the state from dependence on foreign oil, improve the environment and create a lucrative market for farmers who grow crops used to make the fuel.

Critics, however, contend the Legislature is moving too fast and are uneasy about the biodiesel requirement.

Biodiesel is a nonpetroleum diesel fuel that can be made from animal fats and vegetable-oil crops such as soybean and canola. It can be mixed with regular diesel fuels to create a blend. Ethanol is made from crops such as wheat and corn, and can be mixed with gasoline.

Truckers and other business groups worry biodiesel could damage their equipment and question whether the fuel is ready for widespread use. And some people wonder how many farmers are interested in growing the crops and whether they can gear up in time to produce enough biodiesel.

Minnesota, the only other state with similar laws in place, temporarily suspended its biodiesel mandate this year because of problems with the quality of the fuel.

Given that lawmakers tend to move slowly when bills create a ruckus, opponents question why there's a rush to approve the legislation this session.

Gregoire made biofuels one of her top priorities, and Democratic leaders in the House and Senate have pushed the issue hard. Republicans are mixed. Some support the legislation, others don't.

Republican Sen. Mark Schoesler, a Ritzville wheat farmer, thinks Democrats are eager to get to a bill passed this session because of the November election. All House seats and about half the Senate seats are on the ballot this year.

"I think it's an election-year issue for the environmental community more than a farm bill," he said.

Democrats say one reason the state needs to act now is so farmers can plant fuel crops this spring. They also note that a Republican, Rep. Janéa Holmquist of Moses Lake, is lead sponsor of the House version of the bill. The legislation lets the governor suspend the mandate if problems develop.

Chad Kruger, outreach director for the Climate Friendly Farming Project at Washington State University, said it's true that farmers are now deciding what to plant. But Kruger said there's so much uncertainty with biodiesel crops that "if legislation passes this session, I don't think it will have much influence on who plants."

The idea behind the biofuels mandate, in part, is to create a market for crops in Washington. There's little debate over ethanol because Washington farmers already grow plenty of wheat, which can produce the fuel. And there's a long history of ethanol being used by vehicles in the state.

Biodiesel is a different matter.

Washington State Ferries asked the Legislature to consider exempting its fleet from a mandate until it can make sure the fuel will work. The ferry system began experimenting with a 20 percent blend of biodiesel in 2004 but stopped because it clogged fuel filters and left a brown sludge in the fuel tanks.

The Washington Trucking Association has raised concerns about what biodiesel could do to truck engines — and company schedules if trucks break down. The construction industry has similar concerns.

"If you put it into an earthmover or bulldozer and you're using it like crazy for four or five weeks and then your equipment sits for a month or more, the stability of the biodiesel is very questionable," said Duke Schuab, a lobbyist for Associated General Contractors of Washington.

"It separates and you can't use it."

Problems overstated?

Biodiesel supporters disagree.

"It's mostly hyperbole," said Rob Elam, president of Propel Biofuels, a Seattle company that helps stations sell the fuel and organizations convert fleets to use it.

"On the retail level, we have a couple thousand customers at least from individual vehicles to small fleets, and we've had less than 20 instances of filter clogging" from biodiesel in the past 18 months, he said.

Supporters note that the legislation requires 2 percent of all diesel sales be biodiesel. That means stations could sell a fuel containing high concentrations of biodiesel, or one with none. But the total amount sold statewide has to equal 2 percent of all diesel sales.

The Engine Manufacturers Association, which represents all major automobile companies, is generally satisfied with low-level blends of the fuel, said Joe Suchecki, a spokesman for the organization. "The manufacturers' position is that in amounts less than 5 percent, we really don't see potential for a problem."

However, he said, "we were very surprised to see the issues they've had in Minnesota this past year. They went to the 2 percent mandate ... and they've had some quality problems."

Minnesota suspended its mandate for 45 days after a bad batch of 2 percent biodiesel got into the market and plugged fuel filters, said Ken Bickel, a research fellow with the University of Minnesota Center for Diesel Research.

The mandates recently went back into effect in Minnesota. The problems appear to have been resolved — at least for now, Bickel said. "For me, it's sort of a wait-and-see."

Supporters of the Washington biodiesel legislation say the fuel would be required to meet strict standards to avoid the problems experienced in Minnesota.

Concerns about the fuel aside, it's not clear that Washington farmers — the people the law is intended to help — can produce the 20 million gallons of vegetable oil needed to meet the 2008 mandate.

The Washington Farm Bureau thinks it's possible. "It gives growers another commodity they can potentially make money on," said John Stuhlmiller, assistant director of the bureau.

But the Washington Association of Wheat Growers says the Legislature should start small by first requiring the state's fleet to use biodiesel.

"Farming isn't something you can change overnight," said Gretchen Borck, director of issues for the wheat growers. And for farmers, she said, "two years is overnight."

Andrew Garber: 360-943-9882 or agarber@seattletimes.com