05.15.05

Cantwell: Biofuels Production in Washington Can Lower Prices 25 to 50 Cents A Gallon

Senate Committee Beings Crafting new Energy Plan on Tuesday; Cantwell to Offer Amendments to Spur Western Biofuels Production

Seattle, WA – Senator Maria Cantwell (D-WA) today said that biodiesel could cost 25 cents to 50 cents a gallon less in the North west if Congress adopts her legislation to spur production in Washington state.

"My goal is to make biodiesel an affordable option for all drivers," said Cantwell, a member of the Senate Energy Committee. "In other parts of the country, biodiesel actually costs less than regular gas costs here. I'm working to create ways for North west consumers to pay less at the gas pumps by providing other affordable options."

Next week, the Senate Energy Committee will begin crafting a new energy plan for America. Cantwell plans to offer amendments that will make it easier for Washington state farmers to produce biofuels, and more affordable for the state's consumers to use them.

One of the first ways to lower biodiesel costs is by producing it in the North west, to avoid paying transportation costs that are involved when shipping it in from the Midwest. Today, Washington is one of the top states for biodiesel consumption in the country. However, 90 percent of the fuel is made from soy—a crop that is not grown in the state. As a result, biodiesel refiners must have it shipped in from the Midwest, which can add anywhere from a quarter to 50 cents a gallon, according to North west biodiesel refiners and distributors.

While Washington state biodiesel prices typically reach about $3.00 a gallon, prices in the Midwest are consistently lower. According to recent reports from the Department of Energy, prices in the Midwest averaged $2.19 a gallon.

Cantwell believes the key to making the fuel more affordable is to start producing biodiesel from crops like canola, which is grown in Washington . Eliminating the cost of importing soybean oil would reduce prices at the pump at the same time it would provide a new revenue stream for Washington state farmers.

"We need to recognize that biofuels are part of the answer to curbing our nation's dangerous over-dependence on foreign oil," Cantwell added. "And if we're going to get serious about this strategy, we need to invest in the infrastructure and technology that will make biofuels an option for farmers and consumers across this country, particularly in the North west. In the Senate, I'm going to work to target incentives to emerging technologies and regions of the country that are trying to start up biofuels production."

Next week, the Senate Energy Committee is considering new energy legislation and Cantwell plans to offer amendments that will provide incentives to build better infrastructure closer to home, to make biofuels more affordable in Washington and throughout the West.

Cantwell also plans to focus on policies to increase the number of "flex-fuel" vehicles that can use any blend of fuel, from 100 percent biodiesel to 100 percent gasoline. These vehicles give consumers a choice when they go to the gas pump, and will ultimately lower prices by spurring competition.

Cantwell made her announcement at Laurelhurst Oil, where two new biodiesel pumps were dedicated yesterday—making the fuel more available for Puget Sound users. She was joined by representatives of Propel Fuels and Seattle Biodiesel.

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