SENATE BILL REPORT

SHB 1010

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Environment, Water & Energy, March 17, 2009

Title: An act relating to the definition of a biofuel.

Brief Description: Regarding the definition of a biofuel.

Sponsors: House Committee on Technology, Energy & Communications (originally sponsored by Representatives Morris, Chase and Moeller).

Brief History: Passed House: 2/23/09, 97-0.

Committee Activity: Environment, Water & Energy: 3/13/09, 3/17/09 [DP].

SENATE COMMITTEE ON ENVIRONMENT, WATER & ENERGY

Majority Report: Do pass.

Signed by Senators Rockefeller, Chair; Pridemore, Vice Chair; Delvin, Fraser, Hatfield, Holmquist, Marr, Morton and Ranker.

Staff: Sam Thompson (786-7413)

Background: Renewable fuel standards enacted in 2006 require that at least 2 percent of diesel fuel annually sold in Washington be biodiesel fuel. "Biodiesel fuel" is defined as certain esters derived from plant or animal matter that meet requirements established by the U.S. Environmental Protection Agency (EPA) and standards established by the American Society of Testing and Materials (ASTM). The definition does not encompass “renewable diesel,” which are any of several petroleum diesel fuel substitutes produced from renewable feedstock that are not esters. It is suggested that this fuel has similar qualities to (and certain advantages over) biodiesel as defined in current law, and that it should be authorized to meet renewable fuel requirements.

Summary of Bill: Sale of renewable diesel meets state renewable fuel requirements. Renewable diesel is defined as a diesel fuel substitute produced from nonpetroleum renewable sources, including vegetable oils and animal fats, that meets registration requirements for fuels and fuel additives established by the EPA in federal regulations and meets requirements in an ASTM standard.

The EPA regulations require that manufacturers or importers provide chemical descriptions of their products and certain technical, marketing, and health-effects information. The ASTM standard sets diesel fuel grade requirements.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: This bill makes Washington's renewable fuel standards consistent with Oregon's renewable fuel standards. Renewable diesel has the advantage of being fully fungible in the distribution system, facilitating transmission by pipeline, including transmission in interstate commerce.

Persons Testifying: PRO: Greg Hanon, Western States Petroleum Association.