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Lawmaker proposes to close
biofuel loophole
Deputy Republican Leader: “Imported palm oil
doesn’t
deliver on tax-incentive promises”
A state lawmaker wants to
make sure Washington citizens are getting what they pay for out of the
tax incentives that are offered to biofuel producers in the state.
Rep. Doug Ericksen, R-Ferndale, will introduce an amendment that
would make biofuel production from imported palm oil ineligible for
state-approved tax exemptions. The amendment does not prevent palm oil
from being imported and used as biofuel, it simply states that palm oil
will not qualify for the tax credits unless it comes from a sustainable
source that is certified by governmental or third party groups.
Ericksen said he raised a caution flag two years ago, when
lawmakers first considered biofuel legislation. His concern remains that
if refineries import readily available palm oil from areas such as
Malaysia and Indonesia, the legislation would fail to lift the state’s
agriculture industry as a viable partner in new biofuel ventures.
Ericksen said there is also growing evidence that the production
of biofuel from palm oil may actually increase the emission of
greenhouse gases.
According to a study released in December by Netherlands-based Wetlands
International and Delft Hydraulics, biofuel produced from palm oil is
often more polluting than fossil fuels. The study indicates that
peatlands converted to palm oil plantations release huge emissions of
carbon dioxide, as drained peat decomposes very rapidly. The decomposing
peatland emits 10 times more carbon dioxide than if coal was used
instead of biofuel, the study found.
Environmental groups also warn that vast areas of tropical rainforests
are being decimated and converted to palm oil plantations.
“The prevailing point of view in Olympia is that the Legislature should
take a global view of our state’s energy policies, and encourage the
development of clean, renewable energy sources,” said Ericksen,
who holds a masters degree in environmental policy. “As we learn more
about the viability of biofuels, we need to make certain our policies
have the desired effects on our environment and our economy.”
“We’re providing tax breaks for biofuel production with the promise of a
cleaner environment and an economic boon for agriculture. But when
refineries are importing palm oil the end result is something quite
different,” said Ericksen, Deputy Republican Leader. “We have to
make sure the taxpayers are getting what they expect for their money. If
we’re not contributing to a healthier environment and creating new
economic growth for agriculture, then we’re defeating the purpose of
offering taxpayer support for the fledgling biofuels industry.”
Ericksen will offer his amendment to
House Bill 1055, a bill to promote cleaner energy in Washington. To
view the amendment visit:
http://www.leg.wa.gov/pub/billinfo/2007-08/Pdf/Amendments/House/1055-S
AMH ERIC DURB 083.pdf
For more information on Ericksen visit:
http://www.houserepublicans.wa.gov/Ericksen/
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