Massachusetts biofuels bill received “overwhelmingly positive” reaction; some industry groups say the bill is too much, too little or too soon

In Massachusetts, a biofuels policy bill has been introduced into the state legislature, generating “overwhelmingly positive” reaction from lawmakers according to the state’s Secretary for Energy and Environment Affairs, but drawing criticism from some industry groups and legislators.

The bill requires all diesel and home heating fuel sold in the state to contain 2 percent of renewable alternatives by 2010, increasing to a 5 percent by 2013. The bill also exempts cellulosic ethanol from the state gasoline excise tax.

Sen. Michael Morrissey (D-Quincy) said he hoped to address criticisms of the bill in time to present a complete package within 45 days.

Berkshire Biodiesel opposed the bill because it did not provide a means of supporting state-based industry such as the new Berkshire Biodiesel plant under construction. The Massachusetts Oilheat Council said that the biofuels infrastructure was too young and could not handle the the increase in demand, and suggested that the mandate should be imposed only after domestic production reaches a minimum threshold. That approach is used in Minnesota and Oregon among other states. The Massachusetts Petroleum Council called the bill “il-advised” and said it would increase natural gas prices. Overall, the bill is expected to create 3,000 new jobs in Massachusetts and add $320 million to the domestic the economy.

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