Wednesday, September 29, 2004

Biodiesel: Something to look forward to?

The vote on the biodiesel was successful and the bill is out of committee. The sponsor of the bill now has to make a decision as to how the bill will be moved. While I was in the committee room, I listened to the various opponents and proponents of the bill.

Although no one said that they were opposed to biodiesel, they just did not want the legislature mandate its use. A mandate would force gas companies to buy new equipment—particularly in the area of storage. Also, if I remember right, prices would increase 2 cents per gallon. They also cited evidence that biodiesel has a higher cloud point meaning that it freezes or solidifies more easily. Also, biodiesel when used in older vehicles tends to clog up filters that will constantly need to be replaced.

The aim of this piece of legislation is to position Michigan as a leading state when it comes to biodiesel. It is anticipated that in the long run, biodiesel will be considered for alternative fuels and that eventually, the federal government will mandate its use. If that happens, Michigan will have to upgrade their gas stations and storage facilities at a higher price in the future anyways. Additionally, Michigan would end up having to import biodiesel from other states such as Minnesota which is already further along and starting production. With a mandate, 5 soy processing plants will be opened which will provide jobs. Also, Michigan agriculture will benefit as soy prices become higher—allowing farmers a bigger profit margin. Michigan would become a producer and exporter of biodiesel because it produces the soy as well as the processing. Michigan stands to makes some money selling biodiesel.

The vote ended up being 6 yea. I noticed though that the vote wasn’t party based, which was alluded to yesterday. But when I first heard of this, I thought that this doesn’t sound like a Republican idea… but after hearing what the proponents say… it makes sense. The republicans that voted yea want this for the money that it will generate. The democrats that voted yea want this because biodiesel is environmentally friendly. Or does that sound like complete BS to you?

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