HCS HB 868 -- BIODIESEL FUEL

SPONSOR:  Lawson (Meredith)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Environment and Energy by a vote of 14 to 1.

For school years 2002-2003 to 2005-2006, this bill allows school
districts to establish contracts with nonprofit, farmer-owned
new generation cooperatives to supply bus fuel containing at
least 20% biodiesel.  Subject to appropriation, districts that
establish contracts will receive additional state school aid
for  costs above the market price for regular diesel fuel.
Initial statewide payments are capped at 0.7% of the 1998-1999
entitlement for state transportation aid, but may be increased
by 4% each year.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of $0
in FY 2002, $0 to $926,614 in FY 2003, and $0 to $963,678 in FY
2004.  Subject to appropriation.  Estimated Net Cost to State
School Moneys Fund of $0 in FY 2002, FY 2003, and FY 2004.

PROPONENTS:  Supporters say that the bill allows school
districts to use biodiesel fuel without increasing local costs.
The agricultural economy will improve significantly if enough
demand is generated to justify construction of a biodiesel
production plant in Missouri.  Use of the fuel also improves air
quality, especially for children riding buses.

Testifying for the bill were Representatives Meredith and
Barnitz; Bi-State Development Agency; National Biodiesel Board;
Mark IV Consulting; Missouri Soybean Merchandising Council;
Missouri Soybean Association; St. Louis Board of Education;
Missouri Farmers Union; and Missouri Farm Bureau.

OPPONENTS:  There was no opposition voiced to the committee.

Terry Finger, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:46 am