Midwestern states, including Minnesota and Missouri, are looking at different ways of boosting renewable energy use within their borders.
Minnesota, under legislation recently signed by Gov. Tim Pawlenty (pictured), is generally requiring that all diesel sold in the state for use as engine fuel contain no less than 20 percent biodiesel by spring 2015. Missourians, meanwhile, may get to soon vote on a proposal requiring utilities to hike their reliance on "clean" energy such as solar and wind.
The omnibus measure signed by Pawlenty, which also deals with veterans and agriculture issues, ratchets up the biodiesel content requirement from the current 2 percent to 5 percent next year, 10 percent by 2012 and then to 20 percent by May 1, 2015. But the new law also contains a number of exceptions and qualifications (see text of bill here).
For instance, the 10 percent and 20 percent levels would be in place only during the warmer months of April through October. For the rest of the year, the content level would revert to 5 percent. However, state officials could allow the higher standards to go forward during the cooler months if they find that technical issues associated with the state's frigid weather have been solved.
The higher standards also depend on certifications by the state officials -- including the commissioners of agriculture, commerce and pollution control -- that a number of conditions exist. Those include finding that either private industry or federal standards exist for fuel blends; that a sufficient supply of biodiesel is in place, with much of it coming from either the United States or Canada and that an "adequate blending infrastructure and regulatory protocol" are in place to promote quality and avoid economic disruptions.
Additionally, the law requires that at least 5 percent of the biodiesel needed for the blends come from sources such as algae, waste oils or tallow, provided it is economical to do so. It generally prohibits palm oil from being used as biodiesel, except when it is within a waste product.
The state's commerce commissioner could also suspend the biodiesel content requirements in cases of supply shortages. Also, the measure exempts certain uses from the content requirements, such as for railroad engines.
On the other hand, the bill allows up to $300,000 for projects related to biodiesel use in cold weather and it also requires officials to provide recommendations on the use of biological alternatives to diesel fuel.
The bill defines biodiesel fuel as being renewable, biodegradable and "derived from agricultural and other plant oils or animal fats" and that meets American Society for Testing and Materials specifications. Biodiesel can come from such sources as vegetable oils, animal fats and recycled restaurant grease.
Since at least last year, Pawlenty, a Republican, has advocated hiking the state's biodiesel content standards (see press release here; access additional background information here).
The Minnesota legislation comes at a time when some forms of biofuels, such as corn-based ethanol, have been under fire for various reasons (see Climate Law Update story here). But the U.S. Department of Energy has touted the fuel as a way to reduce greenhouse gas emissions, noting that the carbon dioxide released in biodiesel combustion is offset by the carbon dioxide sequestered while growing the feedstock. (see backgrounder here).
Backers of the Missouri proposal reported earlier this month that they have gathered 170,000 signatures to get an initiative on the ballot that would require investor-owned utilities to generate or purchase 15 percent of their electricity from sources such as wind or solar (see press release here). The portfolio standard would phase in over time, reaching the 15 percent level by 2021, with at least 2 percent of each increment coming from solar generation (see text of initiative here).
The 15 percent requirement is somewhat more modest than other states. California, for instance, has established a 20 percent renewable objective by 2010 and is considering boosting that in later years (access California standards here).
The Missouri measure's supporters said they were happy with the campaign so far. In the statement from the group proposing the imitative, Missourians for Cleaner Cheaper Energy, the organization's spokesman, P.J. Wilson, said:
"We are pleased that so many Missourians have gathered signatures to put this clean energy measure on the ballot. Using clean, renewable energy works for everyone in Missouri, and voters will now get the chance to vote on the future of energy in Missouri."
The group claims support from a variety of labor, environmental and religious groups. Recently, the campaign also picked up the endorsement of Kansas City Power & Light, which noted the proposal protected utilities and and consumers by making sure compliance costs and associated rate impacts would be limited to 1 percent. In a statement, Michael Chesser, the chairman of Great Plains Energy Inc., the utility's parent company, said (see text of statement here):
“A strong renewable energy policy benefits our customers by reducing costs and stimulating the growth of the renewable energy industry locally. Policies such as this, coupled with tax credits for construction of new renewable electricity generation, benefit consumers as the sources of electricity are diversified and renewable electricity generation costs are low.”
(Photo courtesy of Minnesota governor's office)
