Governor Gregoire Signs Legislation to Increase Washington Biofuels Industry and Reduce Dependence on Foreign Oil (As Written)

March 30, 2006

Governor Gregoire: Today we move away from our dependence on foreign oil and towards energy independence�just as we establish Washington as a leader of a dynamic, 21st century industry.

We spend $25 million a day on oil in our state, much of it imported from foreign countries. This money leaves Washington and provides no benefits to our communities. This is more than we spend educating our children!

Higher diesel prices are already overwhelming farmers�farmers who just received relief from fuel taxes thanks to the passage this session of HB2424. We've got to change course.

This bill requires fuel suppliers to ensure that 2 percent of the diesel and 2 percent of the gasoline they provide for sale in Washington is biodiesel and ethanol, beginning in December 2008. It ensures that state government will lead the way by pledging that 20 percent of the state's diesel needs will be met with biodiesel by 2009.

It allows farmers who want to grow these crops to begin, secure in the knowledge that there will be a market. It allows investors to begin to build the infrastructure to crush and refine crops into fuel. It ensures that everyone is committed to a market based on crops grown in Washington, by tying any increases in the amount of biofuels to increased Washington production.

This bill is the demand side of my supply-and-demand strategy for alternative fuels. Last week in the Tri-cities, I signed HB 2939, which provides seed funding for the critical infrastructure to produce these fuels.

Opportunity for our farmers and our rural communities

When I asked the legislature to hold hearings last fall, they went to Pasco and Seattle. They heard about the crushing combination of high fuel prices and low wheat prices. Our farmers know the ruthless side of global markets, and the importance of Washington succeeding in them, better than anyone.

I believe that Washington must compete in global markets. The quality of our products is second to none.

This bill creates an opportunity for our farmers where none existed previously. Crops like canola and mustard seed can be grown in Washington, giving another cash crop opportunity to the farmer. These crops can be rotated in with existing crops, or when conditions are right, substituted.

This bill won�t just help individual farmers. It will help rural communities. Seed crushing and refining facilities for renewable fuels are going to be located in communities looking to diversify their economies and provide new job opportunities - Warden, Odessa, and Moses Lake.

In addition, alternative fuels will unite Washington in a way few other things can:

We can grow these crops in eastern Washington, crush the seeds in places like Moses Lake, and ship them across the Cascades for use in busses in Seattle, Tacoma, and Olympia (where our local transit service uses 40% biodiesel blends).

If we do, we begin to keep some of that $25 million/day in our communities, not in the commodity traders� offices in Houston and New York, not in the pockets of oil company CEOs, and most particularly not in countries that do not share our interests and values.

This is a first step. We could not have taken it alone, it required all of us to step forward.

We must continue to work together to implement this bill, to achieve the promises of energy independence and rural economic vitality.

So thank you to:

Representative Janea Holmquist, who represents this community in the legislature. Janea sponsored this concept last year, and was eager to return to it this year in a partnership with my office that crossed political parties and geography. Janea worked tirelessly on the bill, to make sure it worked for Washington�s farmers.

Marilyn Rasmussen, who was the prime sponsor in the senate.

Senator Eric Poulsen, who steered the bill through his committee. While Rep. Holmquist was Farm Bureau �legislator of the year� last year, I think they should give serious consideration to Sen. Poulsen, from West Seattle, for his work on this and the Columbia River water partnership legislation.

Representatives Jeff Morris, Hans Dunshee & Deb Wallace, from Whatcom, Snohomish and Clark counties, all of whom worked very hard to move the bill through the House of Representatives.

To the farmers who took time from their farms and families and came to Olympia to testify in support of the bill � many of you are here today, others could not make it. But all of you were crucial to our success:

Adrian Higgenbothom � the owner of this facility, thanks for providing us with a venue to celebrate;

Ted Durfey � who testified with me in Seattle last summer on the promise of renewable fuels; and

Fred Fleming, Read Smith, Karl Kupers, Bill Warren, and countless others.

To the unique partnership of agricultural and environmental interests, led by the Farm Bureau (John Stumiller) and Climate Solutions (represented here today by Peter Moulton), that was able to find common ground on this issue.

To the entrepreneurs in this emerging industry: John Plaza and Martin Tobias at Seattle Biodiesel, Daniel Malarky & Jeff Stephens at Washington Biodiesel, and numerous others, who share my belief that we can and must begin to wean ourselves from our over-reliance on imported oil.


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