Wednesday, May 9, 2007

Contact Your Legislators

Senate Bill 1272: Definition of Biodiesel

Motor Fuel History in North Carolina
In North Carolina’s history it has never produced or refined any type of fuel to be used in automobiles. In fact North Carolina has to import 100% of all of its motor fuels from either other states or countries. Last year nearly 6 billion gallons of petroleum were imported into North Carolina. As alternative fuels, such as biodiesel and ethanol gain ground in the motor fuels supply new policy questions emerge for North Carolina legislators. The single largest challenge that biofuels present to North Carolina policy makers is how to regulate the industry in a way that both promotes the industry and at the same time protects the consumer who chooses to use these new fuels.

Making Biofuels
When Rudolph Diesel, the inventor of the Diesel engine, first built his engine he ran it off of biodiesel made from peanut oil. The science behind biofuels, such as biodiesel, has been around for over a century. The scientific and financial formula for biodiesel calls for a number of people and industries to be involved in the process. Biofuels, unlike standard petroleum fuels, bring together an incredible number of people across industries and backgrounds, these include: farmers, commodity traders, agriculture processors, biofuel producers, distributors, retailers, and consumers. Each person in this line of development plays an important role in the development or distribution of the fuel to the final consumer. Biofuels can do a lot to reinvigorate North Carolina’s rural communities.

The Need For a Biodiesel Definition
As North Carolina enters a period of history where it can make its own motor fuels it is important that North Carolina policy makers take the time to define the different biofuels that are being made. Senate Bill 1272 defines biodiesel. Currently the definition of Biodiesel is found in Section 105-449.60 of the General Statutes. Per that section:

Biodiesel. Any fuel or mixture of fuels derived in whole or in part from agricultural products or animal fats or wastes from these products or fats.

While this does describe biodiesel in a very general form it does not specify the specific chemical structure that is required for certification by the American Society for Testing and materials (ASTM) which is the certifying body for all motor fuels. Additionally, the warranties for many new cars that can use Biodiesel are requiring this ASTM certification. Moreover, this definition allows any type of mixture that is made of agricultural products or animal fats or wastes to qualify for the tax credits without being functional in a motor vehicle. The ASTM standard will ensure that the fuel will work in a motor and provides assurance to consumers that the fuel they are putting in their engine will in fact work.

The Bill is currently in the Senate Committee on Commerce, Small Business, and Entrepreneurship

Please Contact these Senators:

Sen. R.C. Soles
rcsoles@ncleg.net
NC Senate
16 W. Jones Street, Room 2022
Raleigh, NC 27601-2808

Sen. David Hoyle
davidh@ncleg.net
NC Senate
300 N. Salisbury Street, Room 300-A
Raleigh, NC 27603-5925

Sen. Tony Rand
tonyr@ncleg.net
NC Senate
300 N. Salisbury Street, Room 300-C
Raleigh, NC 27603-5925


Senate Bill 1273: Excise Tax Reduction for Biodiesel

Currently, in North Carolina, there is no difference in the taxes required for one gallon of regular diesel fuel and biodiesel motor fuel. Right now there appears to be about a $0.06 difference in the price of retail petrolem based gallon of diesel fuel and biodiesel (Based on February 12, 2007 prices per the US Department of Energy website). this bill reduces the excise tax on a gallon of B20 by $0.06. This should make the price between the two motor fuels competitive, which is the intent of the bill. If prices are similar then the consumer can make a choice based on product and not price.

The loss to the State based on a 2005 fiscal note is around $3,000,000.00 at 1% market penetration. According to a January 2007 presenation by Brian Winslett of Blue Ridge Biofuels, North Carolina is currently at a 1% market penetration of biofuels from all sources.

This tax reduction ends on December 31, 2013 at the same time as the production incentive ends.

This bill is currently in the Senate Committee on Finance.

Please Contact These Senators:

Sen. Daniel Clodfelter
danielc@ncleg.net
NC Senate
300 N. Salisbury Street, Room 408
Raleigh, NC 27603-5925

Sen. David Hoyle
davidh@ncleg.net
NC Senate
300 N. Salisbury Street, Room 300-A
Raleigh, NC 27603-5925

Sen. John Kerr
johnk@ncleg.net
NC Senate
300 N. Salisbury Street, Room 526
Raleigh, NC 27603-5925


Senate Bill 1277: State Diesel Vehicles' Warranties/B-20 Fuel

The Going trend in the automotive industry is to build engines that can use B20. As such, warranties are being geared to this specific fuel. This bill instructs the State to only buy or lease vehicles that carry this warranty to use B20 fuel. This will encourage the automotive industry to make thse types of behicles; because they will know that a new market is out there for this type of motor.

The Bill is currently in the Senate Committee on Commerce, Small Business, and Entrepreneurship

Please Contact these Senators:

Sen. R.C. Soles
rcsoles@ncleg.net
NC Senate
16 W. Jones Street, Room 2022
Raleigh, NC 27601-2808

Sen. David Hoyle
davidh@ncleg.net
NC Senate
300 N. Salisbury Street, Room 300-A
Raleigh, NC 27603-5925

Sen. Tony Rand
tonyr@ncleg.net
NC Senate
300 N. Salisbury Street, Room 300-C
Raleigh, NC 27603-5925

Senate Bill 1451: Biodiesel Incentive Fund

This bill will create a special incentive fund to help producers of biodiesel, which use North Carolina agricultural products as their main source of feedstock. In the event that North Carolina agricultural products are in short supply other American grown products can be used in their place. A 30 cent per gallon credit is given for the first 2,500,000 gallons of qualified biodiesel produced from North Carolina agricultural products in the fiscal year. An additional 10 cent credit is given per gallon for an additional 2,500,000. Any amount produced over 5 million gallons will not recieve the credit. In all no more tahn $1,000,000 is eligible to one producer in a given year.

The Bill is currently in the Senate Committee on Commerce, Small Business, and Entrepreneurship

Please Contact these Senators:

Sen. R.C. Soles
rcsoles@ncleg.net
NC Senate
16 W. Jones Street, Room 2022
Raleigh, NC 27601-2808

Sen. David Hoyle
davidh@ncleg.net
NC Senate
300 N. Salisbury Street, Room 300-A
Raleigh, NC 27603-5925

Sen. Tony Rand
tonyr@ncleg.net
NC Senate
300 N. Salisbury Street, Room 300-C
Raleigh, NC 27603-5925

Senate Bill 1452: Diesel School Buses to Use Minimum B-20 Fuel

The reason for this bill is two-fold. The first is to encourage the production of biodiesel in North Carolina. By requiring school busses to use biodiesel production in the State, production in the State will ramp up to meet this demand. The other effect of this is that several reports have linked reducted lung development in children to the soot left behind after diesel fuel is burned. These are both expressed in the two sections of this bill through using the state's public school bus system. This legislation goes into effect after December 31, 2008.

The Bill is currently in the Senate Committee on Commerce, Small Business, and Entrepreneurship

Please Contact these Senators:

Sen. R.C. Soles
rcsoles@ncleg.net
NC Senate
16 W. Jones Street, Room 2022
Raleigh, NC 27601-2808

Sen. David Hoyle
davidh@ncleg.net
NC Senate
300 N. Salisbury Street, Room 300-A
Raleigh, NC 27603-5925

Sen. Tony Rand
tonyr@ncleg.net
NC Senate
300 N. Salisbury Street, Room 300-C
Raleigh, NC 27603-5925