Renewable Fuels: An Economic Opportunity for Oregon
Investing in Oregon’s Economy
New Markets for Oregon Crops and New Jobs for Oregon Workers
When Oregonians spend a dollar on gasoline or diesel, we send that dollar out-of-state and often overseas for a finite, non-renewable resource. However, when we spend a dollar on biodiesel or ethanol, we support a renewable resource that can be produced right here at home, creating new markets for Oregon crops and new jobs for Oregon workers. Instead of sending our dollars out-of-state, these dollars are reinvested in our local economy, making Oregon communities stronger.
As Oregon's biofuels industry grows, it will provide new revenues for farmers and direct jobs for construction workers, operations people, truckers, and managers. Oregon manufacturers will provide most of the materials and equipment for the plants. All of this activity during construction and operation will generate hundreds of indirect jobs and new tax revenues for state and local governments.
Biodiesel can be crushed from oilseed crops, such as canola and mustard, grown in Oregon. These are good rotational crops, particularly for wheat and grass seed, two of Oregon’s main agricultural products. When farmers participate in the crushing operations that transform these oilseed crops into oil, they add value to their crop, providing them with an additional income stream.
Twenty-five percent of US corn exports flow through Pacific Northwest ports, giving Oregon an opportunity to capture part of that flow for in-state ethanol production. Emerging technology promises that ethanol will soon be produced from cellulosic feedstock, such as agricultural residue and wood waste, both abundant in Oregon. Cellulosic ethanol will provide Oregon a competitive edge in meeting future energy demands.
Securing Oregon’s Energy Independence:
Reducing Our Dependence on Foreign Oil, Protecting Oregonians from Spikes in Gas Prices
Producing biofuels in Oregon is one strategy for meeting future energy needs while reducing our dependence on foreign oil. Relying on the Middle East and other foreign sources for our energy makes Oregonians vulnerable to volatility in the global oil market. Over time, as petroleum production decreases and demand increases, prices will rise. Investing in renewable fuels now will help protect Oregonians from near-term price spikes and long-term fuel shortages.
OBA-OEC Report
A 2005 report from the Oregon Business Association and Oregon Environmental Council concluded that with a small amount of encouragement and a minimal impact on the state’s budget, Oregon stands a very good chance of leading a West Coast biofuels industry. Download the full report, executive summary or the action plans in PDF format.
Minnesota’s Biofuels Programs: Economic & Environmental Impacts
This case study, prepared by OEC, takes a look at Minnesota's biofuels incentive programs. Could Oregon be the Minnesota of the West Coast?
The Minnesota Ethanol Program was formed to build a new market for the state’s largest crop, develop processing facilities in the state, and help meet EPA air quality standards set for the Twin Cities Area. Minnesota’s ethanol industry is projected to contribute over $500 million in net annual benefit to the state.
In 2005, Minnesota became the first state to utilize biodiesel fuel on a broad scale. Over 60 million gallons per year of biodiesel production capacity is poised to come online this summer in Minnesota—twice the production of the U.S. in 2004. Two years ago, Minnesota produced almost no biodiesel. The recent state mandate requiring a 2% blend of biodiesel with petrodiesel has spurred unprecedented production. This massive economic transition will improve air quality in Minnesota, create new jobs in rural areas, and provide farmers with a new in-state value-added market for their crops without significant new costs to the state government. Download the full report in PDF format.
