Massachusetts Governor Mandates Biofuel
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July 29 – Massachusetts Governor Deval Patrick signed biofuels legislation on July 28, placing the state at the forefront of the clean energy movement. The Clean Energy Biofuels Act requires all home heating oil and diesel fuel sold in the state to contain at least a 2% bio or agricultural component by 2010 and 5% by 2013.
July 29 – Massachusetts Governor Deval Patrick signed biofuels legislation on July 28, placing the state at the forefront of the clean energy movement. The Clean Energy Biofuels Act requires all home heating oil and diesel fuel sold in the state to contain at least a 2% bio or agricultural component by 2010 and 5% by 2013.
Apart from making biofuel use essential, Massachusetts has exempt cellulosic biofuels, which are made from agricultural wastes and forest products rather than corn, from the state’s 21-cent-per-gallon gas tax, becoming the first state to do so. The tax exemption is aimed at providing economic incentives for Massachusetts-based companies to produce cellulosic biofuels. The cellulosic or advanced biofuels can qualify as a state-approved biofuel only if they generate at least 50% less greenhouse gas than petroleum-based fuels.
The increased use of cellulosic biofuels is also likely to ease concerns surrounding the use of biofuels, such as corn-based ethanol, aggravating the food problem and substantially raising food costs. Governor Patrick assured that the new law would not pit fuel production against food production. The legislation, which promotes the growth of an advanced biofuel industry, has come at a time when people are bracing themselves for record high home heating bills.
In addition to reducing cost, pollution and dependence on foreign oil, the new law could contribute between $280 million and $1 billion per annum to the state’s economy by 2025, partly by creating 3,000 new “green collar” jobs for the development and production of biofuels, Governor Patrick added.
The implementation of the bill will necessitate Massachusetts to develop a low-carbon fuel standard for vehicles, making it the leading state after California to do so. This would help Massachusetts reduce greenhouse gases by 10%. Once the standard is set, it would be replicated across the ten-state Regional Greenhouse Gas Initiative that includes New York, New England, New Jersey, Maryland and Delaware.
Larry Chretien, executive director of the nonprofit Massachusetts Energy Consumers Alliance, called the law “a great measure that will have effects you will see in the long term, but not necessarily this winter.” The sentiments of the majority of the people also seem to be in favor of the law.
Alternatio Cirqui, EconomyWatch.com Energy
