North Carolina Legislation

Listed below are some of the biofuels and energy related pieces of legislation that are being considered by the North Carolina General Assembly during the 2011 session. (16 January, 2012)

House bill 187, Require Labels for Ethanol-Blended Gasoline

The bill requires the Gasoline and Oil Inspection Board to adopt rules to require labels for all dispensing pumps that offer ethanol-blended gasoline for retail sale in North Carolina.

Status:  The bill was signed into law on April 7.

House bill 512, Rendering Act Amendments

The bill would require that collectors of waste kitchen grease obtain a license from the Department of Agriculture and Consumer Services and makes the theft of waste kitchen grease a Class H felony. Some of the biodiesel producers in the state have expressed concerns that the new licensing requirements will add additional expense to their production costs.

Status:  This bill has passed both the House and Senate.  However, different versions were approved by each body so the bill was sent to a conference committee and remains eligible for the 2012 session.

House bill 724, Omnibus Energy Bill

The bill would amend the definition of renewable energy resource in the state's renewable energy law to clarify that plantation grown wood is a renewable energy resource.

Status:  The bill was referred to the Committee on Commerce and Job Development, which has taken no action on the legislation.

Senate bill 709, Energy Jobs Act

The bill is intended to increase energy production in NC to develop a secure, stable, and predictable energy supply to facilitate economic growth, job creation, and expansion of business and industry opportunities and to assign future revenue from energy exploration, development, and production of energy resources in order to protect and preserve the state's natural resources, cultural heritage, and quality of life.

Status: This Bill was vetoed by the Governor on 6/30/2011.   While the Senate voted to override the veto, the House did not take a vote on the veto override. 

Senate bill 378, Energy Crops for Biofuels Feedstocks

The bill would require a interagency governmental committee to establish agronomic rates for energy crops to be grown on hog farm sprayfields. Establishment of the agronomic rates is the first step, in ensuring that hog farms can grow energy crops, such as giant miscanthus, and continue to meet environmental compliance standards.

Status: This bill has been signed into law by the Governor. 

Senate bill 279, Clarify Renewable Energy Resource Definition

The bill would clarify that wood is a renewable energy resource and that wood need not be a waste product to qualify as a renewable energy resource.

Status:  The bill was approved by the Senate and moved to the House for consideration, which has referred it to the Committee on Environment.

Federal Legislation

Dozens of bills related to federal biofuels policy have been introduced in this congressional session.  Listed below are updates on legislation and priority bills that the Biofuels Center is actively working on.  (16 January 2012)

Update on Recent Congressional Action

The National Defense Authorization Act (NDAA) for FY 2012 was signed into law by the President on December 31, 2011.  The new law contained an important provision related to biofuels.  Section 863 of the bill includes a finding that "procurement of alternative fuels by the Department of Defense through the use of long-term contracts can provide stability for the industy, which could attract investment needed to develop alternative fuel sources."

This Sense of Congress provision in the NDAA lends support for pending legislation that would establish long term contracts for the purchase of advanced biofuels by the Department of Defense (see below).

House bill 1847, Domestic Fuel for Enhancing National Security Act of 2011

The bill would authorize the US Department of Defense to engage in 15 year contracts for advanced biofuels. The DOD accounts for 2 percent of the Nation's total energy consumption each year.   This bill is critical to linking the production of biofuels in North Carolina to utilization by the military bases in the eastern part of the state.

Status:  The bill has been referred to the House Subcommittee on Readiness.

House bill 1687, the Open Fuels Standard Act of 2011

The bill would require that at least 50 percent of new cars manufactured would be flex-fuel or alternative vehicles by the year 2014.  The mandate would increase up to 80 percent of new cars by 2016.  Flex-fuel vehicles can run on traditional gasoline or a blend of up to 85% ethanol (E-85). 

Status:The bill has been referred to the Committee on Energy and Commerce, Subcommittee on Energy and Power.

House bill 1149, Amendment to the Clean Air Act

The bill would amend the Clean Air Act to include algae-based biofuel in the renewable fuel program. Defines "algae-based biofuel," for purposes of such Act, as liquid fuel derived from the biomass of single- or multi-cellular organisms which are inherently aquatic and classified as non-vascular plants and that have lifecycle greenhouse gas emissions that are at least 60% less than the baseline for such emissions.

Status:The bill has been referred to the Subcommittee on Energy and Power.

Senate bill 748, Algae-Based Renewable Fuel Promotion Act of 2011

The bill would amend the Internal Revenue Code of 1986 to expand the definition of cellulosic biofuel to include algae-based biofuel for purposes of the cellulosic biofuel producer credit and the special allowance for cellulosic biofuel plant property.

Status: The bill has been referred to the Committee on Finance. 

Senate bill 1564, Amend Renewable Fuel Standard

The bill would amend the Renewable Fuel Standard by combining cellulosic biofuel and advanced biofuel into one feedstock neutral category.

Status:  The bill has been referred to the Environment and Public Works Committee.

North Carolina Energy Policy Council

The North Carolina Energy Policy Council is charged by statute with developing and recommending a long-term comprehensive energy policy for the State of North Carolina.  The Council was modified by the legislature in 2009 with new membership and a stronger emphasis on developing the Green Economy.  Steven Burke, President and CEO of the Biofuels Center, serves on the Council in the position designated for an alternative fuels representative.

In March 2011 the Council submitted a report to the Governor and General Assembly on some initial policy actions, including several recommendations on biofuels production and distribution.  All of the recommendations and background information can be found in the Energy Policy Council Report: March 2011.

• Fuels regulation