California biofuel industry calls on support for $210 million for biofuels fund

In California, the state’s biofuel industry is calling on state legislators to allocate $210 million in the Governor’s Greenhouse Gas Reduction Fund to incentivize in-state production of low carbon biofuels. For the first time, biodiesel, ethanol and biomethane trade associations and companies are united by the common goal of getting the biofuel initiative passed as part of this year’s budget.

To meet Gov. Jerry Brown’s environmental goals, more than 7 billion gallons of low carbon biofuel will be needed annually in California by 2030. However, a large portion of California’s low carbon fuels currently are imported from out of state and abroad. Through proper funding, California biofuels production could increase from 250 million gallons per year (MMgy) in 2014 to 906 MMgy in 2019, according to industry projections, creating meaningful employment for thousands of Californians in disadvantaged communities.

A $210-million allocation of AB 32 cap and trade auction proceeds from the state budget’s Greenhouse Gas Reduction Fund, administered by the California Air Resources Board, would:

– Create 24,750 direct and indirect jobs;
– Reduce greenhouse gas emissions by nearly 6,000,000 metric tons;
– Spur economic development of $11.5 billion;
– Displace 714 mgy of petroleum;
– Generate fuel tax revenues of $230 million; and
– Bring in other state and local tax revenues of $408 million.