The first step to boosting alternative fuel production in Maryland is to encourage greater demand for biofuels through incentives to homeowners and local jurisdictions, said one state lawmaker.
State Sen. Rob Garagiola, D-Montgomery, plans to push four bills this session, based on recommendations from a state task force that examined alternative fuel sources.
“They are modest, but if you take them all together, [they will] increase the demand for biofuels, and then we can work on supply side,” said Garagiola, who was a task force member.
Maryland has no ethanol production facilities and only three small biodiesel producers, according to the report released Friday from the task force on renewable alternative fuels.
“The biofuels industry in Maryland has encountered barriers such as infrastructure challenges, and in the case of biofuel, high feed stock costs,” the report states.
These barriers hinder the state?s ability to reduce greenhouse gas emissions and strengthen the agricultural economy, the task force said.
Other report recommendations, such as creating a $4 million annual fund for biofuel promotion programs, is expected to be pursued in future General Assembly sessions, Garagiola said.
However, task force member Brad Heavner, head of Environment Maryland, said there is no money for incentives and dedicated funds, which are “proposed like a taxpayer subsidy.”
Rather than tax breaks, mandates should be put in place, he said.
“It would be great to simple require that a fuel distributor use biodiesel, and build it into the market,” he said.
AT A GLANCE
The legislation proposed by state Sen. Garagiola, D-Montgomery, would:
? Provide a tax credit to homeowners who use home heating oil with at least 5 percent biofuel, known as B5;
? Grant state gas tax exemptions to local jurisdictions that use fuel with at least 20 percent biofuel, known as B20;
? Increase state fleet mandate from 5 percent biodiesel blend to 10 percent by 2010;
? Require half of the state?s flexible fuel vehicles, which can run on gas or a blend, use ethanol blends of up to 85 percent, known as E85, by 2012.
