Green Car Congress: Louisiana Governor Signs 2% Renewable Fuels Standard into Law

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Louisiana Governor Signs 2% Renewable Fuels Standard into Law

13 June 2006

Dark green states have signed an RFS into law. Light green states have an RFS in the legislative process.

Bucking opposition from a number of quarters (earlier post), Louisiana Governor Kathleen Blanco signed HB 685, Louisiana’s Renewable Fuels Standard (RFS) into law. The bill will mandate a 2% target by sales volume for both ethanol and biodiesel once pre-conditions are met.

This makes Louisiana the sixth state with its own renewable fuels standard, and the first Southern state to mandate one. (Missouri may become the next state with an RFS, as the legislature has passed the Missouri RFS (HB 1270) and it now awaits the signature of that Missouri Governor Matt Blunt.)

The Louisiana RFS, however, will likely not take effect, according to the Governor, for some time.

In examining this bill, I looked at four key points. First, ethanol facilities will provide Louisiana farmers a new market for their crops, diversifying our economy and creating hundreds of permanent jobs. Second, consumers are expected to have affordable, quality choices at the pump or the implementation of the ethanol legislation will be delayed by the Department of Agriculture. Third, ethanol blends reduce the toxicity of fuels and are better for the environment. And finally, it will take at least 18 to 24 months before producers can make enough product to trigger the mandate in the legislation.

—Governor Blanco

Furthermore, Bob Odom, the Louisiana Commissioner of Agriculture & Forestry, has agreed to “delay implementation of the law if it means consumers will have to pay more to fill up their vehicles.”

That promise of a delay based on high prices is designed to counter the objections that the implementation of the RFS will drive up the price at the pump.

June 13, 2006 in Biodiesel, Ethanol, Policy | Permalink | Comments (8) | TrackBack (0)

Comments

According to this Green Car Congress report from several weeks ago, Iowa was the fifth state. That would make Louisiana the 6th:

http://www.greencarcongress.com/2006/05/iowa_governor_s.html

Posted by: Bryan Walton | June 13, 2006 at 10:00 AM

What sort of impact could a 2% mandate possibly have? I mean, if it was *twice* as expensive, it would result in price increases of... 2%. Since it isn't twice as expensive, we'd expect the price increase to be less than 2%.

So, gas would go from $2.80 a gallon to $2.85. That isn't exactly bank-breaking stuff here.

Posted by: stomv | June 13, 2006 at 10:38 AM

Corrected. Thank you.

Posted by: Mike | June 13, 2006 at 11:01 AM

Great! What a wonderful world. 2 %.....

Posted by: jan | June 13, 2006 at 11:44 AM

At least it's a step in the right direction, Ian. Now only if we can get more states to follow suit.

Posted by: Mark R. W. Jr. | June 13, 2006 at 03:48 PM

Last time I checked 2% is greater than 0%.

Besides, if we increased ethanol requirements too much across the entire USA we'd have to start importing ethanol...and how does that help energy independence?

Posted by: Patrick | June 13, 2006 at 04:05 PM

California and Arizona are shown as not participating, but that's not really accurate. Since the ban on MTBE, CA and the major populated regions of AZ are all on E10, which is of course way more than E2.

Posted by: Sid Hoffman | June 13, 2006 at 04:22 PM

Ethanol represents about 5.6% of the California gasoline pool, but is not due to a RFS standard. Legislators are evaluating the possibility of an E10 standard. http://www.greencarcongress.com/2006/04/brazilian_ethan.html

Posted by: Mike | June 13, 2006 at 04:49 PM