Massachusetts governor Deval Patrick signed legislation at the end of last month which will make Massachusetts the first state in the nation to exempt cellulosic ethanol from state gasoline taxes. The bill also requires diesel fuel and oil heat distributors to start adding biodiesel or renewable diesel to their fuel blends in 2010.
"The world is waiting for the next generation of clean, renewable alternatives to petroleum fuels, and Massachusetts is poised to deliver," said Patrick.
The legislation exempts cellulosic ethanol from the state’s gasoline excise tax, based on the percentage of renewable fuel used. For example, the gasoline tax for a blend of E10 (10% cellulosic ethanol and 90% petroleum) would be reduced by about 2.3 cents. The bill also requires that by July, 2010, all diesel transportation fuels and distillate heating oil blends contain 2% biodiesel, or other qualifying renewable diesel.
It then increases the requirement by 1% a year, to a cap in 2013, when all diesel transport and heating oil blends will contain 5% of the renewable fuel by volume.
"New England is addicted to oil. In Massachusetts alone, we spend more than $10 billion a year on petroleum, and it is very clear where most of those dollars are going," said Delahunt, noting that Saudi Arabia alone made $160 billion in 2005 exporting oil. "I applaud the Massachusetts Legislature and Governor for taking steps which will both reduce our dependence on foreign oil and help boost the emerging clean energy industry in the Commonwealth."
Significant environmental and consumer protection safeguards were built into the legislation. For example, all qualifying fuels must achieve at least a 50% reduction in lifecycle greenhouse gas emissions over petroleum. Moreover, all fuels will be required to undergo a full lifecycle analysis, which includes "significant indirect emissions" and land use changes. The bill also allows state regulators to delay or scale back the blending requirement if there are issues associated with supply or cost.
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