Gov. Gregoire: Move Toward Energy Independence

For Immediate Release: December 13, 2005

Governor wants home-grown fuel market, help for low-income households, energy conservation steps

YAKIMA � Governor Chris Gregoire today discussed her plan to jump-start a market for homegrown biofuels, help hard-hit households pay power bills and put new resources into energy conservation.

�I am proposing a real energy agenda for Washington,� said Governor Gregoire. �This agenda will start to reduce our dependence on foreign oil and create new markets for crops grown in Washington.�

The Governor in Spokane met with a family to discuss their difficulty keeping up with skyrocketing utility bills, caused by higher energy prices.

�This is an energy agenda that demonstrates our compassion for fellow Washingtonians, providing assistance to those who need it most � low-income families, schools, rural communities and small businesses � but also reducing our dependence,� the Governor said.

The Governor�s energy package will diversify energy supplies, make targeted investments in communities, promote renewable and affordable energy supplies, and improve the environment.

Governor Gregoire maintained her commitment to a fiscally responsible budget by using $25 million from the tax on higher energy bills and redirecting a substantial portion of existing funds.

To promote energy independence in Washington, Governor Gregoire will:

� Establish a market for biofuel crops. New legislation would set a minimum for the amount of biodiesel that must be blended with diesel fuel sold in-state. The minimum would take effect, and gradually increase, as the biodiesel market develops.

� Help finance essential infrastructure for the biofuels industry. Invest $17.5 million in low-interest loans for bioenergy projects such as seed crushers.

� Use the Utility and Transportation Commission penalty fund to boost the state�s existing program to help families pay high heating and lighting costs.

� Help low-income citizens by providing incentives, allowing utilities to use some of the state public utilities excise tax to boost subsidies for low-income households. The Governor�s plan also provides up to $1.5 million from the same funding sources to help assist small businesses conserve energy.

� Provide financial help for schools and public facilities this winter. The Governor would provide $16.4 million from the state General Fund to cover higher-than-expected costs for energy in our schools and state facilities, and for fuel for school buses and state ferries.

� Make more homes energy efficient. A one-time increase from the Housing Trust Fund would improve energy efficiency for low-income households through the existing Energy MatchMaker grant program.

� Improve opportunities for small renewable energy generation. Current law would be revised to give consumers incentive to develop more of their own renewable energy resources, and sell to utilities more of the energy they generate.

�My energy agenda will work for our state and its citizens to travel the path to energy independence,� said Governor Gregoire.

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