While renewable fuels are often referred to as “carbon-neutral,” this is not quite the case. Although the carbon released when biofuels are burned is the same carbon that was captured by the plant as it grew, agricultural production – particularly through the use of chemical fertilizers – can produce substantial greenhouse gases (GHGs). Bringing new land into agriculture also accelerates global warming because the destruction of forests and grasslands releases large quantities of carbon dioxide and other GHGs within a very short period that had been sequestered in the plants and the soil over decades. Converting carbon-rich natural ecosystems to agricultural land for production of biofuels feedstocks diminishes any value the fuels might have in fighting global warming. Likewise, when biofuels production relies on fossil fuels like coal and natural gas to power the processing plants, the global warming benefits of biofuels decline.

To produce sustainable biofuels, it is important to evaluate the entire biofuels production process, from the fields where the feedstock is planted, through the processing plant, all the way to the tank. Based on this life-cycle analysis, those renewable fuels that provide the highest energy yield, most positive local economic and social impacts, greatest benefit to the environment, and lowest drain on scarce resources should be clearly identified and encouraged.

This report outlines the environmental implications of producing biofuels, both positive and negative, and provides recommendations that will put Oregon at the forefront of sustainable biofuels production.

Some members of the renewable fuels industry question whether they should be held to higher standards than the petroleum industry, particularly when they are just getting off the ground. We propose that there is not only a moral imperative to protect the environment, slow global warming and improve the public’s health, but that sustainable biofuels practices make sense from an economic standpoint. Consumers are increasingly demanding sustainably produced products; and citizens are increasingly demanding that government policy support sustainability. Whenever public funds are used to support expansion of an industry on the premise that that industry is providing a public benefit (in the case of biofuels a climate-friendly, environmentally sustainable, and local industry), the industry should meet these goals or government should withdraw its support.

At the 2007 annual Leadership Summit of the Oregon Business Council, much attention was drawn to Oregon’s competitive advantage in sustainability, and the biofuels industry was identified as a key growth opportunity for the state. After years of relying on imported fuel, renewable fuels offer the possibility of locally produced, locally consumed energy, which puts money back into the community and, if done right, helps rejuvenate rather then damage the environment. Biofuels are just the beginning. New technologies allowing a full range of bio-products to be produced can help reduce our use of polluting chemicals and reduce the amount of non-biodegradable trash we produce. By encouraging a sustainable biofuels industry today, Oregon can be at the vanguard of an entirely new global economy tomorrow.

The Environmental Impacts of Oil

Oil has provided many benefits since significant deposits were discovered in the 19th Century, but every stage in its life cycle, from exploration to use, has harmful effects on our health and the environmental systems on which we and other species depend. A few are outlined below:

• Drilling and extracting oil results in spills and fires, occupational injury and disease, and harm to ecosystems. As one example, offshore oil rigs along the Gulf Coast have contaminated sediments and fish with mercury at levels far exceeding what is considered safe for human consumption.

• Oil leaks and spills cause serious harm to marine life and fisheries. According to the Oil Spill Intelligence Report of 1999, approximately 32 million gallons of oil was spilled in worldwide waters as a result of 257 transport incidents that year.

• Petroleum refineries present major health hazards for those who work in and live near them; oil, its byproducts and the chemicals used in the refining process cause air and water pollution, thermal and noise pollution.
  

• Combustion of gasoline and diesel releases a variety of air pollutants that can lead to heart and lung disease, cancer and premature death. Combustion of gasoline and diesel also releases embedded carbon which combines with oxygen in the air to produce carbon dioxide, CO2, the most prolific greenhouse gas in our atmosphere. As levels of CO2 rise, the world warms, bringing a host of unwanted effects.