June 21, 2007 - Oregon Senate Passes HB 2210, Creating Renewable Fuel Standards, Promoting a Healthy Environment, Energy Independence and Rural Economic Development for Oregon
Oregon Environmental Council's priority bill creates opportunities for Oregon farmers, expands markets for Oregon biofuels, and establishes sustainable, regional model for biofuels production
PORTLAND, Ore.—June 21, 2007—The Oregon Senate today approved House Bill 2210, providing incentives for Oregonians to produce and use renewable fuels. The vote of 24 to 3 sends the bill to the desk of Gov. Ted Kulongoski for certain signing into law. Once passed, Oregon will join the 22 states that already have a combination of retailer incentives, processor incentives or both for renewable fuels. Unique to Oregon are incentives for feedstock production.
The beginning of a biofuels industry is underway in Oregon. A biorefinery in Salem is converting waste vegetable oil from Willamette Valley restaurants and canola grown by Eastern Oregon farmers into biodiesel, and biorefinery plants are being built along the Columbia River to convert corn and other grains, in the near-term, and waste agricultural and forestry products, in the long-term, to ethanol. HB 2210 will encourage greater investment in this industry and help establish a sustainable, regional model for biofuels production.
As soon as 5 million gallons of biodiesel are produced in Oregon, petroleum distributors will be required to blend a small percentage of biodiesel into the diesel sold in Oregon, with a similar phased requirement for blending ethanol into gasoline. "Passage of this legislation ensures that a portion of every dollar we spend at the pump will support fuels produced right here in Oregon by Oregon farmers and industry," said Oregon Environmental Council legislative director Lindsey Capps.
To help Oregon's rural communities provide economically viable feedstocks for biofuels, HB 2210 establishes state production tax credits for such feedstocks as woody biomass, canola, barley, triticale, straw, camelina and flax. And in a companion bill, HB 2211, the Business Energy Tax Credit is expanded to provide for greater capital investment in biorefineries. HB 2211 still awaits passage in the Oregon Senate.
More Oregon jobs and a boost to the rural economy
Currently, about 1,000,000 gallons of biofuels are produced annually in Oregon. With renewable fuel standards in place, this is expected to increase dramatically. "My guesstimate is 100,000,000 gallons per year by 2010 and 500,000,000 gallons by 2020," said Oregon Environmental Council program director Kevin Considine.
In Minnesota, which implemented the nation's first renewable fuel standards, the state is projected to produce 620 million gallons of ethanol in 2007, creating 11,444 jobs and over $3 billion in revenue, according to the Minnesota Department of Agriculture.
A healthier environment
Biofuels are cleaner and have a lower carbon footprint than petroleum fuels. But, like any industry, biofuels production has environmental impacts. The Oregon Environmental Council worked to ensure that the renewable fuel standards can't be met by biodiesel produced from imported palm oil (palm plantations are supplanting tropical forests) and supported complementary legislation that ensures corn production does not receive feedstock tax credits (conventionally grown corn requires heavy pesticide application and irrigation). There will also be a two-year delay for wheat tax credits.
"As we move into greater production of biofuels, we must ensure that it's done in an environmentally sustainable manner," said the Oregon Environmental Council's executive director Andrea Durbin. "This means the state must support sustainable farming practices for fuel, as well as food, and state-of-the art biorefineries."
In the coming months, OEC will work to ensure that the rules implementing this legislation are written to favor the biofuel feedstocks and biorefinery operations that are most environmentally beneficial.
About the Oregon Environmental Council
The Oregon Environmental Council safeguards what Oregonians love about Oregon - clean air and water, an unpolluted landscape and healthy food produced by local farmers. For nearly 40 years we've been a champion for solutions to protect the health of every Oregonian and the health of the place we call home. Our vision for Oregon includes solving global warming, protecting kids from toxins, cleaning up our rivers, building sustainable economies, and ensuring healthy food and local farms.
