Louisiana Passes a Renewable Fuel Requirement

June 21, 2006

Louisiana Governor Kathleen Blanco signed a bill into law on June 12th that will encourage greater biofuel production within the state through mandates for the sale of ethanol and biodiesel. House Bill 685 requires ethanol fuel to provide 2 percent by volume of gasoline sales in the state within six months after in-state ethanol fuel producers reach the capacity to produce 50 million gallons of ethanol fuel per year. Likewise, biodiesel must provide 2 percent by volume of the diesel fuel sold in the state within six months after in-state biodiesel production capacity reaches 10 million gallons per year. The law allows for an "alternative renewable fuel" to take the place of either ethanol or biodiesel, or both, and sets a 2 percent biofuels requirement for all the motor fuel sold in the state once the in-state capacity for producing an alternative renewable fuel hits 20 million gallons per year. The law exempts aviation fuels and motor fuel sales in ozone non-attainment areas, which includes five parishes in the Baton Rouge metropolitan area. See HB 685 (now Act No. 313) and the governor's press release.