Oregon Public Broadcasting

Northwest biodiesel producers fear they’re about to lose their biggest potential customer.  Many biodiesel companies are barely surviving the down economy. 

Then again, the big customer in question, the Washington State Ferries, has money issues of its own.  Correspondent Tom Banse reports on the difficult balance between pinching pennies and living green.

A state law that takes effect June first will require all Washington State agencies to fuel their diesel vehicles and vessels with 20 percent biodiesel.

Ferry managers estimate the biodiesel mandate will add $8 million to their fuel tab over the next two years. 

Budget writers like State Senator Mary Margaret Haugen blanched when they saw how much green it costs to go green at the nation’s biggest ferry system.

Mary Margaret Haugen: “It’s just so expensive and it’s the ferry passengers that have to pay this.”

State lawmakers proposed to exempt the ferry system from the green fuel requirement.  But that brought a wave of protest from biodiesel makers.

Now the legislature has shipped out a compromise.  The ferries would run on five percent biodiesel as long as the price is within five percent of regular diesel.

Oregon’s single biggest biodiesel buyer is Tri-Met in Portland.  Budget constraints and the high price of biodiesel forced the transit agency to put plans to increase its use of biofuel on indefinite hold.

It uses a five percent blend in its buses today.

Online:

Washington State Legislature: Senate Bill 6109