BILL REQ. #:  H-5274.1 

Read first time 02/07/08.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to the development of renewable fuels; adding a new section to chapter 19.112 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature recognizes that: Rising fuel costs are adversely impacting the Washington state economy; dependence upon oil imports is a continuing threat to national security; Washington state residents have a vested interest in providing environmentally sound energy alternatives and solutions for low-income residents in heating their homes; Washington state has developed policies that support recycling and alternative energy efforts; yellow and brown grease cause a major problem in Washington state sewage; yellow and brown grease are estimated by the United States environmental protection agency to cause up to seventy percent of sewer plant blockages and thirty percent of pump station failures; and the result of such sewer plant blockages and pump station failures is that untreated sewage is discharged directly into the rivers, lakes, and waterways of Washington state.

NEW SECTION.  Sec. 2   A new section is added to chapter 19.112 RCW to read as follows:
     (1) A fund of up to five million dollars shall be made available for grants for converting yellow or brown grease into biodiesel or renewable diesel fuel, or both. For purposes of this act, "biodiesel" shall be defined as a diesel fuel substitute produced from vegetable oils, animal fats, biomass, or other nonpetroleum renewable resources that meet the registration requirements for fuels and fuel additives established by the United States environmental protection agency and any blending components derived from renewable fuel.
     (2) Counties, municipalities, port districts, water districts, or other special taxation districts may apply for any portion of the grant to be utilized in developing a facility that produces biodiesel from waste vegetable oil, known as yellow grease, and brown grease recovered from grease traps or interceptors of restaurants or other commercial kitchen facilities.
     (3) This grant is limited only to those production facilities that convert diesel fuel from used vegetable oils, animal fats, biomass, or other nonpetroleum renewable resources.
     (4) To be eligible for grant money, the county, municipality, port district, water district, or other special taxation district must work with a company that meets the following minimum criteria:
     (a) Licensed as a corporation under the laws of the state of Washington for a period of one year prior to the date of grant application; and
     (b) Has been in continuous production of biodiesel for a period of not less than twelve months and has a demonstrated ability in biofuel production particularly from multisource, nonvirgin, and waste feedstock.
     (5) A county, municipality, port district, water district, or other special taxation district may seek a grant of funds for use in establishing a facility that converts yellow or brown grease into biodiesel if the private company they are collaborating with meets the criteria in subsection (4) of this section.
     (6) Grants shall be available in one million dollar increments to qualifying public entities who seek to support the construction of a facility that converts yellow or brown grease to biodiesel, subject to the following minimum requirements:
     (a) A grant of one million dollars shall be available for a facility that produces a minimum of five hundred thousand gallons of biodiesel fuel from yellow or brown grease over a one-year period once the construction of the facility is complete; or
     (b) A grant of two million dollars shall be available for a facility that shall produce a minimum of one million two hundred thousand gallons of biodiesel fuel from yellow or brown grease over a one-year period once construction of the facility is complete.
     (7) Any facility receiving a grant from this fund through a county, municipality, water district, port district, or other special taxation district must engage in one of the following fuel for low-income residents programs:
     (a) The facility shall make available at least seven percent of that fuel to low-income residents with a minimum discount of one dollar per gallon for a fifteen-year period once the facility is complete. For each one million dollars in grant money, there shall be a minimum of seventy thousand gallons of biofuel, either home heating oil or biodiesel, made available to low-income residents with the one dollar per gallon discount. After fifteen years, the facility shall make a minimum of three percent of fuel produced available with the one dollar per gallon discount in a fuel for low-income residents programs. This shall continue for the life of the facility; and
     (b) The program must be implemented no later than two years after the grant has been made. In the event the program is not implemented within the specified time frame, the state shall have the right to demand immediate repayment of the grant in full.
     (8) The fuel for low-income residents program and the distribution of funds in the program shall be administered by the office of the state auditor.