Domestic Fuel

Missouri’s requirement to have all gasoline contain at least 10 percent biodiesel started on January 1st. And now, there’s a proposal in the legislature to make a similar mandate for biodiesel.

State Sen. Bill Stouffer’s (R-Napton) SB 759 would require all diesel fuel sold in the state would contain a biodiesel blend by April 1, 2010:

fuel terminals in Missouri that sell diesel fuel shall sell biodiesel, conventional diesel fuel, and biodiesel-blended fuel that contains 5% biodiesel by volume, but it shall not be considered a violation for a terminal to sell biodiesel-blended fuel that contains more than 5% biodiesel by volume provided any such sale adheres to notification requirements promulgated by the Department of Agriculture.

The Department of Agriculture shall develop cold temperature operability standards for biodiesel and shall enforce the standards beginning January 1, 2010.

The bill is similar to legislation introduced by Stouffer last year. That bill ran out of time before the session ended last May.

The city of Cary, North Carolina has changed its fleet of diesel vehicles to biodiesel. The city runs about 3.5 million miles a year, and now those miles will be greener.

This story in the Cary (NC) News says 169 diesel vehicles are now running on B20 biodiesel:

“It’s purely trying to reduce our dependency on oil,” (Mike Bajorek, the town’s public works director) said.

Data from recent Cary budgets bear that out. In fiscal year 2006, which ran from July 1, 2005 to June 30, 2006 and included Katrina and its aftermath, the town used 528,209 gallons of fuel.

And the change seems to be saving fuel for the city:

Estimates for fiscal year 2007, which ended June 30, 2007, show an increase to 535,000 gallons, or 1.3 percent, even though the fleet grew by 26 vehicles.

A similarly small increase in fuel usage, along with a similar increase in fleet size is expected for fiscal year 2008, which ends June 30.

Crude oil prices broke the $100 a barrel barrier for the first time today on rising concerns over violence in Nigeria.

Light, sweet crude for January delivery rose $4.02 to $100 a barrel on the New York Mercantile Exchange, before slipping back to $99.48.

Robert White, interim head of the Ethanol Promotion and Information Council, says higher oil prices translate into economic hardship for consumers and higher profits for oil companies. “The American public is looking for realistic solutions to our dependence on a dwindling supply of energy of which ethanol plays an important role,” said White. “Once again, the ethanol industry will rise to the challenge and continue to provide a renewable, efficient, economy boosting product for Americans. Without ethanol, the cost of our oil addiction is far too great.”

According to White, America’s foreign oil bill continues to climb, to a record total of nearly one billion dollars a day. Oil from the Middle East accounts for approximately 17 percent of U.S. oil imports.

Renewable Fuels Association President Bob Dinneen says the continuing volatility of world oil and energy markets highlights the importance of the energy legislation Congress passed late last year.

“By pairing higher fuel economy standards with the increased use of renewable fuels from non-traditional feedstocks, our country now has a policy and plan in place to begin mitigating the impact of volatile and ever-increasing world oil prices,” said Dinneen. “The energy paradigm in this country and around the world is beginning to change. Volatile oil prices and dwindling supplies further emphasize the need to develop renewable alternatives. The American ethanol industry stands ready to help lead the revolution away from fossil fuels and to a more stable, sustainable energy future.”

The Canadian Renewable Fuels Association says the case for biofuels has never been stronger.

“Oil at $100 makes the case for biofuels crystal clear. The price of oil is simply too high and too unreliable. We must continue to diversify our fuel supply” said Gordon Quaiattini, President of the Canadian Renewable Fuels Association. “Biofuels, such as ethanol and biodiesel, are real viable alternatives and are better for the environment, prices, and farmers.”