Washington state is missing out on a multibillion dollar market1 of low-cost, low-carbon transportation fuel. This deficit hurts our economy, our air quality, and our efforts to fight climate change.
The Washington state legislature can rectify this by adopting a similar standard for clean transportation fuels in our state as the ones enacted in British Columbia, California and Oregon.
The transportation sector needs more clean fuels.
Low-carbon fuel standards (LCFS) make cleaner fuel available to all consumers by incentivizing production. Suppliers that provide fuels that meet or exceed clean fuel standards earn credits. Suppliers that provide below-standard fuels can purchase those credits to meet their compliance requirements.
Clean fuels can go to immediate use and industries doing business in Washington state are ready to take the lead with low-carbon options. For example, Boeing aircraft have successfully flown tens of thousands of flights on sustainable aviation fuel and auto manufacturers already produce 38 zero-emission vehicle models.
For health, economic, and climate reasons, it is urgent that the Washington state legislature create a low-carbon fuel standard by passing House Bill 1110.
Replacing traditional petroleum fuels with cleaner burning renewables not only reduces greenhouse gases but also improves air quality in our communities most burdened by air pollution. Sustainable aviation fuels reduce sulfur emissions by at least 30% and particulate emissions by 40 to 70%, depending on how much jet fuel it’s blended with.
A clean fuel standard can spur new economic activity. Production of renewable fuels like biodiesel are already creating jobs in rural Washington. For example, Renewable Energy Group (REG) operates the largest biodiesel plant on the west coast in Grays Harbor. The plant employs 40 people and supports approximately another 800 indirect jobs in the community and region. Unfortunately, due to Washington’s lack of a LCFS there are not more production facilities in our state, and the fuels produced in Grays Harbor are combusted in California, depriving our communities of the air quality benefits.
In fact, Washington has lost two renewable fuel companies to California because their clean fuel standard created higher demand for renewable diesel, ethanol, biodiesel, and renewable natural gas. Propel Fuels started in Seattle but moved its headquarters to Sacramento to better reach the growing California market. In 2011, AltAir Fuels, another Seattle start-up, was expected to build the first sustainable aviation fuel refinery here in Washington. By 2013, they chose to build that refinery in California, and are now the number one producer of sustainable aviation fuel in the world.
Flying and driving make our connected lives possible. There’s no reason our state can’t continue making critical transportation investments while also adopting a low-carbon fuel standard. Not only will the production of new low-carbon fuels create new jobs and revenue, cleaner fuels can also cost less per mile. Propel Fuels in California was able to sell renewable diesel and ethanol for 10 to 50 cents cheaper per gallon than petroleum diesel and gasoline. Propel can now afford to offer electric vehicle charging at their stations, too.
We have testified to the legislature in support of HB 1110 to emphasize the priority we place on the passage of this legislation. The market incentives and innovation that would come from a statewide clean fuel standard will reduce emissions from transportation and spark economic development, attract innovative fuel producers to Washington, and provide local environmental and health benefits.
It’s time to unleash a clean fuel industry alongside the many other industries in Washington that have revolutionized the way people live, work, and connect.
Seattle Port Commissioners Fred Felleman and Ryan Calkins are co-chairs of the port’s Energy & Sustainability Committee. Curt Augustine is senior director of policy and government affairs for the Alliance of Automobile Manufacturers.
