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Bill for incentives to make, use biodiesel pending, Petrus says
Tuesday, Jan 30, 2007

Arkansas News Bureau

LITTLE ROCK - House Speaker Benny Petrus said Monday that legislation would be filed as early as today proposing financial incentives for the production and distribution of biodiesel fuel in Arkansas.

Petrus, D-Stuttgart, said more than 60 House members had signed on as co-sponsors by Monday afternoon, and he said he hoped that all 100 House members eventually would sign on in support of the proposal to be known as the Arkansas Alternative Fuels Development Act.

The measure would provide up to $2 million in incentives to produce biodiesel fuel and up to $2 million in incentives for infrastructure - plants and crushers - needed for production, Petrus said.

Also, distributors of biodiesel fuel would be eligible to receive up to $50,000 per station to install the necessary heating equipment. Biodiesel turns to jelly in cold weather, he said.

A funding bill, which he said is still being developed, would appropriate $2 million to the University of Arkansas agriculture department for research, and up to $4 million for matching federal grants for research.

The measure also would include $2 million for the state's weatherization assistance fund, a program directed by the state Department of Health and Human Services which helps those living in poverty insulate and weatherize their homes.

Sen. Robert Thompson, D-Paragould, said Monday he also is working on legislation that would require all service stations in the state to sell only biodiesel fuel when production in Arkansas reaches a certain level. He declined to give more details on the measure, which he said he expects to file by week's end.













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