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| State website for bioenergy information is Bioenergy Washington - a multi-agency site.
Washington State Bioenergy Policy Framework
(Summary of Legislative Actions, 2003-2009 – updated June 29, 2009)
Production
Tax Incentives
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Reduced B&O rate is provided for manufacture of wood biomass or alcohol fuels. (RCW 82.04.260(1)f)
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A B&O tax credit is provided for each green ton of forest-derived biomass sold or used for production of power, steam, heat or biofuel. The credit is valued at $3/ton from July 2010 through June 2013, then $5/ton through June 2015. Expires June 30, 2015. (RCW 82.04 – section to be codified)
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Cogeneration equipment integrated into a manufacturing site is exempt from retail sales and use taxes. (RCW 82.08.02565, 82.12.02565)
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Equipment, labor and associated services for power production of at least 1 kW from various renewable energy sources, including biomass energy, anaerobic digestion and landfill gas, are exempt from retail sales and use taxes. During 2011-13 biennia, exemption rate drops to 75% and is claimed through remittance. Expires July 1, 2013. (RCW 82.08.02567, 82.12.02567)
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Anaerobic digester construction and operation, and related services or components, are exempt from retail sales and use taxes. More than half of digester feedstock must be livestock manure. (RCW 82.08.900, 82.12.900)
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Land, buildings and equipment used for anaerobic digestion, manufacturing alcohol, biodiesel and wood biomass fuels, or biodiesel feedstock are exempt from property and leasehold taxes for six years following date facility becomes operational. Exemption is not renewable. No claims may be filed after December 31, 2009 for biofuels; December 31, 2012 for digesters. (RCW 82.29A.135, 84.36.635, 84.36.640)
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Sale and use of hog fuel or forest-derived biomass for production of power, steam, heat or biofuel is exempt from retail sales and use taxes. Expires June 30, 2013. (RCW 82.08, 82.12 – sections to be codified)
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Sale and use of waste vegetable oil for production of biodiesel for personal use is exempt from retail sales and use taxes. (RCW 82.08.0205, 82.12.0205)
Public Sector Production
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Conservation districts and public development authorities may contract for crops, produce, sell and distribute biodiesel produced from instate feedstocks, and cellulosic ethanol. Municipal utilities and public utility districts may do the same, and use these fuels to generate power. (RCW 35.21.465, 35.92.440, 54.04.190, 89.08.570)
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Counties may construct and own biopower facilities so long as there is a Public Utility District with an electrical system in the county. Most feedstocks are allowed, except for biosolids, yard and food waste, and demolition and construction debris. (RCW 36 – section to be codified)
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Counties may enact “energy overlay zones” to facilitate siting of renewable energy projects based on feedstock availability, infrastructure and environmental impacts. Eligible technologies include biomass energy, mill waste, and landfill and wastewater treatment gas. (RCW 36.70C.020, 36.70C.130)
Financial Assistance
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Energy Freedom Account under Energy Freedom Program provides financial support for projects converting farm products, wastes, cellulose, or biogas directly into electricity or biofuel or other coproducts. No appropriation for the 2009-11 biennia. Expires June 30, 2016. (RCW 43.325.020)
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Energy Recovery Act Account under Energy Freedom Program directs federal funds to a wide range of renewable energy projects, including any bioenergy project except those based on municipal solid waste. Unlike other Energy Freedom Program accounts, state agencies, nonprofit corporations and for-profit business are eligible to apply. Some $38.5 million will be distributed during 2009. (RCW 43.325.020)
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Producers of grid intertied power from anaerobic digesters are eligible for .15¢/ kWh incentive payments of up to $2,000/yr. Expires June 30, 2014. (RCW 82.16.110)
Expedited Permitting
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Anaerobic digesters are exempt from solid waste permitting if feedstocks are at least 50% livestock manure and no more than 30% organic waste, including yard waste and pre-consumer food waste, but not material collected through municipal solid waste programs. Certain design and operational standards must also be met. (RCW 70.95 – section to be codified)
Distribution & Use
Tax Incentives
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New passenger cars, light duty trucks, and medium duty passenger vehicles powered by a clean alternative fuel (natural gas, propane, hydrogen or electricity) are exempt from retail sales tax. Effective January 1, 2009 until January 1, 2011. (RCW 82.08.809)
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Sales to and use of non-highway biodiesel and biodiesel blends by farm fuel users are exempt from retail sales and use taxes. Fuel used for space or water heating for human habitation not included. (RCW 82.08.865, 82.12.865)
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Sales and use of equipment, and related services or components, used for retail sale of E85 and biodiesel blends of B20 or higher are exempt from retail sales and use taxes. Sales of fuel delivery vehicles, and related services or components, are exempt if at least 75% of the fuel is E85 or biodiesel blend of B20 or higher. Expires July 1, 2015. (RCW 82.08.955, 82.12.955)
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Retailers of biodiesel and E85 are eligible for a B&O tax deduction. Expires July 1, 2015. (RCW 82.04.4334)
Financial Assistance
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Green Energy Incentive Account under Energy Freedom Program provides financial support for development of biofuels refueling infrastructure along interstate corridors. No appropriation for the 2009-11 biennia. Expires June 30, 2016. (RCW 43.325.040)
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Energy Recovery Act Account under Energy Freedom Program directs federal funds to a wide range of renewable energy projects, including any bioenergy project except those based on municipal solid waste. Unlike other Energy Freedom Program accounts, state agencies, nonprofit corporations and for-profit business are eligible to apply. Some $38.5 million will be distributed during 2009. (RCW 43.325.020)
Public Sector
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Effective June 1, 2006, agencies complying with EPA’s ultra-low sulfur diesel mandate must use at least 2% biodiesel as a lubricity additive, provided the use is warranted and biodiesel is comparable in performance and cost with other additives. (RCW 43.19.642)
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Beginning July 1, 2006, all state agencies using biodiesel shall file biannual reports with GA documenting their fuel use and describing how any problems encountered were resolved. (RCW 43.19.642)
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Effective June 1, 2009, state agencies as a whole are required to use a minimum of 20% biodiesel to operate diesel-powered vessels, vehicles, and construction equipment. (RCW 43.19.642)
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GA may combine the needs of local governments, including ports, special districts, school districts, and municipal corporations, and contract in advance with public or private producers, suppliers, or other parties for the purchase of biofuels and biofuel blends. (RCW 43.19.647)
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Effective June 1, 2013, all state agencies and local governments are required to satisfy 40% of their fuel usage for publicly owned vessels, vehicles, and construction equipment with electricity or biofuel. By June 1, 2015, 100% these fuel needs are to be met by electricity or biofuel, to the extent practicable. (RCW 43.19.648)
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At least 30% of all new vehicles purchased by state contract must be clean-fuel vehicles; this percentage shall increase 5% each year. Dedicated clean-fuel vehicles are preferred; if they are not available or would not meet operational needs, conventional vehicles may be converted to clean-fuel or dual-fuel use. (RCW 43.19.637)
Fuel Content Requirements
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At least 2% of the total annual diesel sales must be biodiesel or renewable diesel by November 30, 2008. At least 5% must be biodiesel or renewable diesel when Agriculture determines instate oil seed crushing capacity and feedstocks can satisfy a 3% requirement. (RCW 19.112.110)
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At least 2% of total gasoline sales, measured on a quarterly basis, must be ethanol by December 1, 2008. Ethanol content between 2% and at least 10% may be required if Ecology determines it will not jeopardize air quality standards for ozone pollution, and Agriculture
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determines instate raw materials are available to support economical production. (RCW 19.112.120)
Content requirements will be repealed when the diesel supply is at least 10% biodiesel made predominantly from instate feedstocks, and the gasoline supply is at least 20% ethanol made predominantly from instate feedstocks, without jeopardizing air quality standards for ozone pollution. (RCW 19.112.170)
Federal Financial Resources for Bioenergy (Current as of July 22, 2009.)
Washington State Energy Program
State Energy Program Recovery Act Funds (DE-FOA-0000052)*
Close to $61 million from US Department of Energy is being channeled through the Washington State Department of Commerce and WSU. Components include: Community-Wide Urban Residential & Commercial Energy Efficiency Program ($14.5 million), Farm Energy Assessments Program ($500,000), Energy Efficiency Credit Enhancement Program ($5 million), and Energy Efficiency & Renewable Energy Loans & Grants Program ($38.5 million). The Loans and Grants Program will provide interim financing to renewable energy projects, assist innovative companies that have commercial or near commercial energy technologies, and support cost-effective energy efficiency projects. Two rounds are anticipated, $20 million this summer and the balance toward the end of the year. A letter of intent now due August 3. Applications are due August 17.
US Department of Energy
CHP Systems Technology Development & Demonstration (DE-FOA-0000016)
Awards of $250,000 to $30 million are authorized, but only $15 million is available during the first year of this program. Three areas are defined based on CHP output: large (up to 20 MW), medium (1 MW to 20 MW) and small (5 kW to 1 MW). Applications are for research, development and demonstration of technologies that increase efficiency and reduce costs of CHP systems, meet future emission requirements, and replace or mitigate natural gas usage. In addition to more efficient use of natural gas, use of alternatives such as landfill gas, digester gas, or other alternative gaseous fuels would be appropriate. Cost share must be at least 30% for research and development and at least 50% for demonstration and commercial application. Application deadline recently extended to August 4.
Community Renewable Energy Deployment (DE-FOA-0000122)*
This program is designed to address the technical, economic and policy barriers to implementing a combination of renewable energy technologies into one integrated solution for a community to reduce its carbon footprint. Projects should create examples that can be replicated by other communities, nationally and internationally. Only state, local and tribal governments are eligible Applications can range from $5 million to the complete $21.45 million available under the program, but the agency anticipates issuing up to 4 awards of $5-7 million. A 50% match is required. Applications are due September 3.
Development of Algal / Advanced Biofuels Consortia (DE-FOA-0000123)*
Some $85 million is available to teams from specific scientific, engineering, system design, analysis and project management disciplines pursuing algal and advanced infrastructure-compatible biofuels. A single award of $35 million is anticipated to a consortium working on advanced biofuels, and one or two awards of $25-50 million is anticipated for algal biofuels consortia. A 20% match is requested, though proposals with cost share down to 10% will be considered. Applications are due September 14.
Clean Cities Petroleum Reduction Technologies Projects for the Transportation Sector (DE-PS26-09NT01236-04)*
Up to 30 awards of $5-15 million, with a 50% match, will be issued under the Alternative Fuel and Advanced Technology Vehicles Pilot Grant Program. Clean Cities Coalitions need to be the lead applicants. Proposals ready for immediate initiation, including evidence of mature design, site agreements, site licensing and permitting, partner commitments, and equipment availability, will receive higher priority in the evaluation process. Applications are due September 30.
US Department of Agriculture
Rural Energy for America Program (RDBCP-09-REAP-FEASIBILITY/RDBCP-09-REAP-RES-EEI)
Some $60 million will be available nationally through REAP, including roughly $28 million in grants and the balance in loan guarantees. States are provided “starter funds” to allocate before rolling additional applications up to the federal level. Washington State has about $220,000 for grants, $750,000 for loan guarantees, and $156,000 for combination grants/loan guarantees. Small (<$20,000) projects will be handled only on the federal level. Funding is available in three areas: 1) Feasibility Studies grants up to $50,000, 2) Renewable Energy Systems grants of $2,500 to $500,000 plus loan guarantees, and 3) Energy Efficiency Improvement grants of $1,500 to $250,000 plus loan guarantees. Grants under the last two categories can cover all up to 25% of project cost. Loan guarantees of $5,000 to $25 million can cover up to 75% of project costs, with the percentage of guarantee varying by loan amount. Applications are due July 31.
Value-Added Producer Grants (Farm Bill Section 6202)
Approximately $18 million in competitive VAPG grants will be available for 2009. The original May 6 notice is being reissued in the near future, and will likely have a 30-day turn around.
Advanced Biofuel Producer Payments (Farm Bill Section 9005)
Direct payments are offered to eligible biofuel producers to expand production of advanced biofuels, defined as pretty much anything other than corn-based ethanol. Payment will be for production from October 1, 2008 through September 30, 2009. The amount of each payment will depend on the number of participants and amount of advanced biofuels. Applications are due August 11.
Small Business Innovation Research Program Phase I (USDA-CSREES-SBIR-002363)
SBIR supports innovative, applied, research and development projects from small businesses that address problems facing agriculture and have the potential to lead to significant public benefits. Twelve categories are listed, including Forests, Rural Development, Animal Manure Management, and Biofuels and Biobased Products. Some $18.5 million is available, with individual awards primarily in the $70,000-90,000 range. No match required. Applications are due September 3.
Repowering Assistance Payments to Eligible Biorefineries (Farm Bill Section 9001)
Up to $5 million or 50% of total eligible projects, whichever is less, is available to biorefineries in existence on June 18, 2008, to replace fossil fuels used to produce heat or power at their facilities with new systems that use renewable biomass, or produce new energy from renewable biomass. Applications are due November 1.
Biomass Crop Assistance Program (Farm Bill Section 9011)
A dollar per dollar match, up to $45 per dry ton, is provided for up to two years to producers who deliver eligible biomass material to designated biomass conversion facilities to generate heat, power, biobased products or biofuels. Initial assistance will be for collection, harvest, storage and transportation costs. The Farm Service Agency will develop implementation guidelines later this year. A fact sheet, application and list of participating facilities should be available soon.
National Science Foundation
Energy for Sustainability
This program supports research and education in energy production, conversion, and storage, and is focused on energy sources that are environmentally friendly and renewable, including solar, wind and biomass. Average individual award is $100,000. Applications are due September 17.
Environmental Sustainability
This program supports engineering research that seeks to balance society's need to provide ecological protection and maintain stable economic conditions. Principal areas of research include: Industrial Ecology, Green Engineering, Ecological Engineering, and Earth Systems Engineering. Average individual award is $100,000. Applications are due September 17.
Reports
E85 (Ethanol) in Washington:
Books & Publications:
Other information:
Contact the Bioenergy Coordinator at email
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