Monday, May 7, 2007

North Carolina a Leader...In Studies

North Carolina’s plan for biofuels is nothing more than pie-in-the-sky thinking. The plan should be applauded for its vision, but it does too little and too late. It wants to make the state a leader in the Mid-Atlantic and Southern states, but 2017 is too late. Identified in the plan are nine strategies. This entry will focus on the main ideas.

Strategy 1: By 2017, 10% of liquid fuels will be biofuels grown in the state.

North Carolina can do more. This matter is too pressing to be postponed by 10 years. Through proper incentives, North Carolina can produce enough biofuels to accomplish this goal by 2012.

Strategy 2: Development of a State-Level biofuels commission.

This commission can easily be implemented within the North Carolina Department of Agriculture and Consumer Services, answering to the Agriculture Commissioner. This organization should take the lead in the permitting process for fuel-grade ethanol and biodiesel. Currently, the process for approval for fuel-grade ethanol must go through the North Carolina Alcoholic Beverage Control Board. Fuel-grade ethanol is not an alcoholic beverage; therefore, it should not be regulated by the same individuals who enforce the drinking laws.

Strategy 5: Craft a plan for coordinating the effort.

It appears that North Carolina is completely set up on planning and studying; instead of implementing. By the time North Carolina is finished studying every little aspect of the issue, its goal for becoming a leader in biofuels will be lost. There is also no need to create a comprehensive list of feedstock which can be used. The producers already have this information. Let science, the market, and producers determine the most efficient feedstock. This aspect of the plan would only create more hurdles for biofuel producers. Regulation is necessary, but not when it begins to micromanage every aspect of the industry.

Strategy 6: Increase use of current feed stock and research new feedstock and processes.

This is one of the best ideas from the report. Increase production using current technology and feedstock, while research focuses on developing newer, more efficient, and greener processes and feedstock. One failure of strategy six is the call to streamline the environmental permitting process. The major draw for biofuels is that they are a more environmentally friendly energy source. We do not need to open the door for potential environmental hazard.

Strategy 7: Endorse the Novozymes proposal to the US Department of Energy.

While good, North Carolina needs to focus more on the present, not possible technology, which may, or may not pan out further down the line. This is more evidence that this plan fails to see the trees for the forest.

Strategy 8: Create a coordinated state-wide effort.

We agree, North Carolina must do more than displace 20 of petroleum use and we believe it can. The state does not; need to implement a pilot marketing program for biofuels. Smoky Mountain Biofuels has already announced a plan for 23 service stations offering biodiesel. Let this market driven approach serve as the test area, identify its failures and successes and spread its accomplishments throughout the state. Likewise, there is no need for the state to development curriculum necessary for the workforce. We already have four producers in the state, one of which provides education to the public through the state’s community college system. State mandates would be redundant and would create more barriers.

Strategy 9: Incentives

Legislation already exists before committee which would accomplish this strategy; however, it cannot get a vote. Senator John Snow is attempting to lead the battle charge for biofuels, but for some reason has met road blocks along the way.

Senate bill 1273 would establish a reduced excise tax for biodiesel components of 13.5 cents. North Carolina Consumers for Biofuels supports this legislation. It serves as an important catalyst for consumers to make the switch.

Senate Bill 1277 requires diesel vehicles procured by the state to receive a manufactures warranty covering the use of biofuels.

Senate Bill 1278 would remove the excise tax on fuel-grade ethanol produced and used by the same individual. This fuel is not for sale and therefore should not be taxed as such.

Senate Bill 1451 would create an incentives fund for producers of biofuels. Focused on benefiting smaller-scale North Carolina based producers, this legislation would benefit the economy of North Carolina. Instead of money being directed out of the state to out-of-state producers, the money would be directly placed back into the economy.

Senate Bill 1452 would require all school buses purchased in North Carolina to be capable of running B-20. On average, each school bus in North Carolina requires 100 gallons of diesel a week to operate. With over 1000 school buses operating in the state, which would be well over 200,000 gallons reduction of petroleum derived fuel.

It is now time for implementation. We need to encourage our State leaders to discuss and vote for these bills. Stop the bottleneck and actually work to make North Carolina a leader in biofuels. Stop talking! Act!

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