2738-S AMH ERIC REDF 015

SHB 2738 - H AMD TO H AMD (H-5139.4/06) 804

By Representative Ericksen

   On page 1, beginning on line 3 of the amendment, strike everything and insert the following:

   "Sec. 1. RCW 43.19.642 and 2003 c 17 s 2 are each amended to read as follows:

   (1) All state agencies are encouraged to use a fuel blend of twenty percent biodiesel and eighty percent petroleum diesel for use in diesel-powered vehicles and equipment. The department shall ensure that the fuel used is produced from feedstock grown in Washington state.

   (2) Effective ((June)) July 1, 2006, for agencies complying with the ultra-low sulfur diesel mandate of the United States environmental protection agency for on-highway diesel fuel, agencies shall use biodiesel as an additive to ultra-low sulfur diesel for lubricity, except for vehicles engaged in fire suppression and life support activities((, provided that the use of a lubricity additive is warranted and that the use of biodiesel is comparable in performance and cost with other available lubricity additives)). The amount of biodiesel added to the ultra-low sulfur diesel fuel shall be not less than:

   (a) two percent, if both in-state oil seed crushing capacity and feedstock grown, produced, and refined in Washington state can fully satisfy the two percent requirement;

   (b) five percent, if feedstock grown, produced, and refined in Washington state can fully satisfy a five percent requirement;

   (c) ten percent, if feedstock grown, produced, and refined in Washington state can fully satisfy a ten percent requirement; and

         (d) twenty percent, if feedstock grown, produced, and refined in Washington state can fully satisfy a ten percent requirement.

   NEW SECTION. Sec. 2. A new section is added to chapter 19.112 RCW to read as follows:
  The director shall establish a biofuels advisory committee to advise the director on implementing or suspending the minimum renewable fuel content standards for state agencies. The committee shall advise the director on applicability to all users; logistical, technical and economic issues of implementation; and how the use of renewable fuel blends greater than two percent could achieve the goals of this act. The director shall make recommendations to the legislature and the governor on the implementation of this act by September 1, 2007.

   NEW SECTION. Sec. 3. The office of financial management shall conduct a fiscal impact study of the cost impacts of this act on state government. The office shall report its findings to the relevant committees of the legislature by November 1st, 2006."

   Correct the title.

EFFECT: The minimum fuel content requirements for all fuel sales is replaced by changes to existing law's diesel use requirements of state agencies. State agencies operating diesel vehicles are currently encouraged to use a blend of 20 percent biodiesel. This striking amendment directs the department of general administration to ensure the use of fuel produced from feedstock grown in state. Current law requires state agencies to use a two percent biodiesel blend beginning June 1, 2006. This striking amendment requires state agencies use a blend with an increasing amount of biodiesel added, as that amount can be fully supplied by in-state production. The requirement is also delayed to begin with the fiscal year, July 1, 2006. The Director of the state Department of Agriculture must establish a biofuels advisory committee to advise on implementation of suspension of minimum fuel content requirements for state agencies. OFM is required to conduct a fiscal impact study of the cost impacts of the act on state government.