BILL REQ. #:  S-3714.1 

Read first time 01/12/10.   Referred to Committee on Transportation.

     AN ACT Relating to biodiesel requirements for ferry fuel; and amending RCW 43.19.642.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 43.19.642 and 2009 c 470 s 716 are each amended to read as follows:
     (1) Effective June 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, 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 two percent.
     (2) Effective June 1, 2009, state agencies are required to use a minimum of twenty percent biodiesel as compared to total volume of all diesel purchases made by the agencies for the operation of the agencies' diesel-powered vessels, vehicles, and construction equipment.
     (3) All state agencies using biodiesel fuel shall, beginning on July 1, 2006, file biannual reports with the department of general administration documenting the use of the fuel and a description of how any problems encountered were resolved.
     (4) For the 2009-2011 fiscal biennium, the Washington state ferries is required to use a minimum of five percent biodiesel as compared to total volume of all diesel purchases made by the Washington state ferries for the operation of the Washington state ferries diesel-powered vessels so long as the per gallon ((price)) cost of diesel containing a five percent biodiesel blend level does not exceed the per gallon ((price)) cost of diesel by more than five percent. If the per gallon ((price)) cost of diesel containing a five percent biodiesel blend level exceeds the per gallon ((price)) cost of diesel by more than five percent, the requirements of this section do not apply to vessel fuel purchases by the Washington state ferries. The Washington state ferries shall issue a request for proposals when seeking to purchase ferry fuel in order to best determine the true cost to the department of transportation of using a biodiesel blend versus diesel fuel.
     (5) By December 1, 2009, the department of general administration shall:
     (a) Report to the legislature on the average true price differential for biodiesel by blend and location; and
     (b) Examine alternative fuel procurement methods that work to address potential market barriers for in-state biodiesel producers and report these findings to the legislature.