2939-S3 AMH ANDG FRAS 062

3SHB 2939 - H AMD 816

By Representative Anderson

FAILED 2/11/2006

   On page 8, after line 32, insert the following: 

   "NEW SECTION. Sec. 9. (1) No later than January 1, 2010, the office of financial management shall contract for an independent study of the extent to which any state investments made under this act in ethanol and biodiesel production as alternative fuels are resulting in a positive net energy balance.

   (2) In evaluating the net energy of ethanol produced with the assistance of this act, the independent study shall consider, at a minimum, the following:

   (a) the cost of the feedstock per gallon of ethanol;

   (b) the number of distillation steps necessary to separate the ethanol;

   (c) the amount of treatment and energy required to produce the pure ethanol for mixture with gasoline; and

   (d) the amount of energy contained in the final ethanol product.

   (3) In evaluating the net energy of biodiesel produced with the assistance of this act, the independent study shall consider, at a minimum, the following:

   (a) the cost of production of the soybean, sunflower, mustard seed or other crops per gallon of biodiesel;

   (b) the amount of energy consumed in producing the crops and converting the crops to biodiesel fuel; and

   (c) the amount of energy in the final biodiesel product.

   (4) The office of financial management shall submit a report to the governor and the appropriate policy and fiscal committees in the legislature by December 1, 2010. The report shall include recommendations as to whether continued review of net energy balances resulting from state investments in ethanol and biodiesel fuel production are necessary and desirable.”

   Renumber the remaining sections and correct internal references accordingly. Correct the title.

   On page 9, line 4, after "9" insert ", 11,"

EFFECT: Directs the Office of Financial Management to contract by January 2010 for an independent study of whether state investments in biodiesel and ethanol production have resulted in a positive net energy balance. Establishes criteria to be used in evaluating net energy production. Requires OFM to report to the governor and the legislature by December 1, 2010, on whether continued review of such net energy balances would be necessary and desirable.