Biodiesel in Seattle, Washington
4Refuel is the LEADER in fuel management services in Canada. We supply over 1 million liters per month of blended biodiesel to municipal and corporate fleets throughout the Greater Vancouver Regional District and the Province of British Columbia. On-site biodiesel refueling allows fleet operators to reduce overhead and improve efficiency since vehicles are refueled during idle hours, saving you time and money. Last year our clients saved over $5.5 million in refueling costs.
United States Biodiesel Study
In 1998, the US Department of Energy and the US Department of Agriculture completed a biodiesel lifecycle study. The study concluded biodiesel reduced CO2 emissions by 78% compared to petroleum diesel due to biodiesel’s closed carbon cycle. It was found that biodiesel was safer than petroleum diesel because its exhaust had lower levels of polycyclic aromatic hydrocarbons (PAH) and nitrated PAH compounds, identified as potential cancer causing compounds. Scientific research later confirmed biodiesel exhaust as being less harmful on human health.
Washington State Tax Incentives
Washington state legislature passed in 2003 tax incentives to benefit biodiesel fuel management. A property and leasehold tax emption for buildings, machinery, equipment, and land associated with production of biodiesel fuel and biodiesel feed stock would later contribute to soaring biodiesel fuel sales. The second tax incentive offered investors of machinery, equipment and labor, used to establish the distribution and retail sale of biodiesel fuel, to save and pass the savings onto the consumer.
Seattle and Energy Freedom Loan Program
Established in 2006 by the State of Washington, the Energy Freedom Loan Program became a solution to reducing dependency of foreign oil and boosting local economic profits. The biodiesel industry would soon see many changes within Washington State, and especially in the city of Seattle. The bill passed by Washington legislature and supported by Governor Christine Gregoire offered incentives to companies and persons interested in building infrastructure for biodiesel and ethanol. Realizing the economic importance of biodiesel, $25 million was allocated to the program. The low interest loans were made available to local governments, ports and other public entities in Seattle and outlying cities and county’s.
Since commencement of the program, Washington State has had an influx of jobs, creating greater financial stability and economic benefits. Job creation has been greatest in rural communities and supporting of farming families. Emphasis on using domestic feedstock for fuel and even purchases of carbon offsets has helped the environment, boosted the economy and improved quality of life.
Companies who qualify for the Energy Freedom Program sign up for a 10-year term with a 1% annual interest rate. To qualify for the program, matching funds are required to cover a minimum of one-half of a projects total cost.
Another bill, passed by both houses of legislature requires state agencies to use biodiesel in construction equipment, vessels and vehicles powered by diesel engines.
Consumption of Biodiesel
Biodiesel has been sold in the United States since 1999 with 500,000 gallons sold the first year. The National Biodiesel Board released the following sales volume estimates for the US:
- 2006 – 250 million gallons
- 2005 – 75 million gallons
- 2004 – 25 million gallons
- 2003 – 20 million gallons
- 2002 – 15 million gallons
- 2001 – 5 million gallons
- 2000 – 2 million gallons
Future of Biodiesel in Seattle, Washington
The future is vast for the use of biodiesel as an alternative fuel choice in Seattle and the state of Washington. King County, Washington will continue to increase its use of biodiesel from 5% to 20% across metro busses, waste water and solid waste trucks. Northwest farmers and Seattle Biodiesel will continue two pilot projects to develop oilseed crushing and refining capacity in the state.
In 2008, Washington State becomes the first state to mandate that 2% of all gasoline and diesel sold within the state be in a form of biodiesel. Washington will also receive a renewable fuel standard in 2008. The construction in 2007 of what was at the time, the nation’s largest biodiesel refinery in Grays Harbour, may be fuelling the demand and contributing to biodiesel industry.
With the support of Federal, state and local governments, the biodiesel industry will continue to flourish. It is evident through Federal tax incentives of $1 per gallon for blended biodiesel, and biodiesel producers granted credits will help in decreasing the cost for biodiesel fuel. Executive order 13149 will also help biodiesel fuel management, with government agencies required to reduce petroleum consumption, boosting alternative fuel consumption.
By 2009, all Washington state vehicles, vessels and construction equipment will use a minimum B20 (20% biodiesel).
