Gov. Rendell this week announced the creation of a stakeholders group to develop a legislative initiative that would mandate the use of biofuels in gas and diesel vehicles and in heating oil for homes.

Gov. Rendell charged the departments of Environmental Protection and Agriculture with forming a stakeholder group with the General Assembly, trucking associations, refiners and fuel retailers, farming organizations, conservation groups and others to draft legislation by July 31.

The Governor unveiled his “PennSecurity Fuels Initiative” while inaugurating the first publicly-available E85 ethanol blend fueling station in Pennsylvania. Worley & Obetz’s WoGo service station in Lititz, Lancaster County, is the first publicly available refueling station in the Northeast to dispense fuel that is 85 percent ethanol and 15 percent gasoline.

Among the key elements of the Governor’s PennSecurity Fuels Initiative:

· Mandate 17 percent of transportation fuels sold at retail in Pennsylvania contain eligible fuels by 2018. Eligible fuels include ethanol, biodiesel, coal-derived sources, methane gas derived from landfills or coal-mine methane used in transportation, and biodiesel used as a replacement for petroleum engine lubricants. Substitution of biofuel for petroleum-based home-heating products also will receive credit;

· Replace 900 million gallons of the state’s transportation fuels over the next decade with alternative sources, such as ethanol and biodiesel, or with fuels derived from coal liquefaction processes equipped with carbon offsets. The 900 million gallons represents the forecasted amount of fuels that will be imported from the Persian Gulf to Pennsylvania 10 years from now;

· $30 million from the state’s Alternative Fuels Incentive Grant program would be dedicated over the next five years to build re-fueling and production infrastructure to support the standard for alternative fuel distribution to consumers;

· Create incentives that open new markets to Pennsylvania farmers who grow the feedstock to produce ethanol and biodiesel, and encourage clean technology that puts to use the state’s vast coal reserves to reduce foreign fuel dependency, create new jobs and economic growth, improve the environment and build a diversified energy base. Extra credits will be provided for fuels derived from Pennsylvania feedstock; and

· Provide safeguards against price increases by allowing alterations or delays in the compliance schedule if prices of eligible alternative fuels rise above conventional fuels by a certain level for a prolonged period. Additionally, a credit trading system will be set up to further enhance the suite of compliance options.

“This initiative will do for transportation fuels what our Alternative Energy Portfolio Standard is doing for electricity production: restore Pennsylvania’s environment by ensuring more fuel comes from clean, renewable resources and promote economic development by encouraging investments in advanced technologies,” Gov. Rendell said.

Four other states – Hawaii, Minnesota, Montana and Washington – have implemented fuel standards. Other states are proposing similar transportation fuel portfolios.

NewsClip: Governor Unveils PennSecurity Fuels Initiative

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