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State Representative Dan Kristiansen - 39th Legislative District

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News from Washington House Republicans.
 

 
FOR IMMEDIATE RELEASE

 June 24, 2009

 


Consumers should dictate biofuel use, not government
By Rep. Dan Kristiansen

Recently, I was contacted by a Sedro-Woolley antique car collector frustrated about state mandates which require gasoline and diesel to contain ethanol and biodiesel. It turns out ethanol is not compatible with many older engines, nor with marine engines. Apparently that's the tip of the iceberg of problems now emerging with these mandates.

Senate Bill 6508 seemed like a good idea to the Legislature in 2006 because Washington is one of the largest wheat-producing states in the nation. Lawmakers thought expanded use of biofuels would create a new commodity market that would boost our state’s farm communities and provide new jobs. However, I had serious concerns about government leaping ahead of the private sector by forcing an artificial market, as well as effects mandates could have against consumers.

The bill required at least 2 percent of gas and diesel sold in Washington be ethanol or biodiesel beginning in December 2008, or when it was determined that the state's feedstock could satisfy that requirement. Mandates would be ramped up as more feedstock and seed-crushing capacity became available. The measure also required state agencies to use a minimum of 20 percent biodiesel in diesel-powered vehicles by June 1, 2009.

I support expansion of safe, clean alternative energy sources, including biofuel use, to reduce our dependence on foreign and domestic oil.  However, I also believe in a bottoms-up approach, in which consumer demand should determine the best timing for biofuel expansion as an option to regular fuel. I opposed SB 6508, as did many of my Republican colleagues, because it involved a government top-down approach that dictated unreasonable deadlines and requirements we knew Washington could not meet, even under the best of circumstances.

Three years after the hype that persuaded Washington to aggressively jump in with untested biofuel mandates, our concerns are playing out and reality is setting in.

Commodity prices have skyrocketed. Diesel has fallen. West Coast canola-based biodiesel is about $3.42 per gallon, before taxes. Conventional diesel is still under $2, before taxes. Even with federal subsidies, many biofuel refiners are closing, including a Hoquiam plant where 24 workers were recently laid off.

Worldwide biofuel mandates are affecting food and livestock feed prices, creating an economic burden for families. Although one segment of agriculture has benefitted, another is suffering higher prices. 

One study has determined biofuel production may even create more carbon than it saves, prompting the question, "Why bother?"

Finally, Washington did not meet the June 1 requirement for biodiesel to make up 20 percent of state agencies’ fuel use. Usage has barely surpassed 2 percent. The governor says she still wants the state to meet its usage requirement. She's willing to spend more time and money to not "lose the momentum." 

Rather than pouring millions of taxpayer dollars into an uncertain future, we should step back and re-examine government's role. The answer to alternative energy sources is not more government mandates. Government needs to step out of the way and let the private sector develop at its own pace, with supply and demand creating a sustainable market that doesn’t jeopardize food supply, ensures stability for growers and producers, and provides an additional option from which consumers can choose.

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EDITOR'S NOTE: State Rep. Dan Kristiansen, R-Snohomish, represents the 39th Legislative District, and also serves as chairman of the Washington House Republican Caucus. He can be contacted at (360) 786-7967 or from his Web site at: www.houserepublicans.wa.gov/Kristiansen.

For more information, contact: John Sattgast, Senior Information Officer: (360) 786-7257
 

 
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