Oregon Governor Kulongoski Signs Biofuels Legislation

Biofuels bill encourages renewable energy production and use throughout the state

July 3, 2007 -- Eugene – Kicking off Energy Independence Month, Oregon Governor Ted Kulongoski today was joined by legislators, environmental and agricultural leaders at a biofuels facility in Eugene to sign House Bill 2210, which creates a Renewable Fuel Standard and tax incentives for both consumers and producers of biofuels.

“These bills will not only create financial opportunities for Oregon’s agricultural sectors, but it will help reduce our green house gas emissions while creating thousands of jobs in rural Oregon,” said Governor Kulongoski. “Today is about signing legislation that creates a lasting environmental legacy for future generations.”

The Biofuels Bill was developed by the Biofuels Subcommittee of the Governor’s Renewable Energy Work Group that convened during the summer of 2006 and was part of the Governor’s energy independence agenda for the 2007 legislative session. House Bill 2210, coupled with Senate Bill 838, the Governor’s Renewable Portfolio Standard of 25 percent of Oregon’s electricity coming from renewable sources by 2025, will make Oregon’s commitment to renewable and alternative energy among the most ambitious in the nation.

“House Bill 2210 will do for the fuel sector what SB 838 will do for the electricity sector,” the Governor said referring to the renewable energy standard. “It will move Oregon significantly down the road to a renewable energy future, creating hundreds of millions – if not billions – of dollars of investment, and thousands of new high quality jobs around the state. And it will help Oregon reduce our greenhouse gas emissions and tackle global warming.”

The major components of House Bill 2210 include:

Renewable Fuels Standard: All gasoline sold in the state must be blended with 10 percent ethanol after Oregon production of ethanol reaches 40 million gallons per year. All diesel fuel sold in the state must be blended with two percent biodiesel when the production of biodiesel from sources in the Pacific Northwest reaches a level of at least 5 million gallons per year. The biodiesel blending requirement increases to 5 percent when annual production reaches a level of at least 15 million gallons per year.

Tax Incentives:

* For producers or collectors of biofuels feedstock: Including forest or agriculture-sourced biomass, oil seed crops, grain crops (excluding corn), grass or wheat straw and animal rendering byproducts.

* For consumers of biofuels: Oregonians who purchase gasoline blended with an 85 percent ethanol concentration or biodiesel blended with a 99 percent concentration qualify for this tax credit. Additionally, Oregonians who use agriculture or forest waste pellets for home heating containing 100 percent biofuel also qualify.

* This is in addition to the business energy tax credit available for biofuels refineries and farm based equipment.

The Governor also declared July as “Energy Independence Month” and encouraged Oregonians to reduce their carbon footprint. Leading by example, the Governor filled his alternative fuel state vehicle with E-85 biodiesel at SeQuential Biofuels Station, a Eugene gas station that offers biofuel blends for all gasoline and diesel-powered vehicles.

The Governor also highlighted that that since taking office, the state fleet has transitioned to more than 300 hybrids (close to 10% of its sedan fleet), 577 flex fuel vehicles that can run on E-85 and 178 compressed natural gas vehicles, comprising approximately 1/3 of the state motor pool. Under the Governor’s direction, the state also has committed to using a minimum 10 percent blend of biodiesel for its diesel fuel use with the Oregon Department of Transportation leading the way by using a B-20 blend in the Portland Metro area

“Today marks another step forward, but it is not the end,” the Governor continued. “We must build on the momentum of this year and create a truly more energy independent and renewable energy future for Oregon – both in the public and private sectors.”

A copy of the enrolled bill language can be found here:
http://landru.leg.state.or.us/07reg/measures/hb2200.dir/hb2210.en.html

Other energy and climate change bills passed this session include:

Renewable Energy Standard: A Bold, Achievable Goal of 25% by 2025. The Governor won approval of his Renewable Portfolio Standard to require 25 percent of Oregon’s energy to come from renewable sources by 2025 – one of the most ambitious standards in the nation. [SB 838]

Alternative Energy Development: Investing in Oregon’s Future. The Legislature approved the Governor’s proposal to boost the Business Energy Tax Credit (BETC) on renewable energy systems from 35 percent to 50 percent and increase the credit cap from $10 million to $20 million. The BETC has been integral to attracting new energy projects to the state like Solarworld AG and Solaicx. The Governor also expanded the Residential Energy Tax Credit to encourage greater adoption of renewable energy technologies. [HB 2211, 2212]

Clean Diesel: Reducing Diesel Engines Pollution. The Governor’s proposal to fund the upgrading of old polluting diesel school bus and truck engines became a reality. The legislation provides millions of dollars to replace old diesel engines, reducing emissions and creating cleaner air. It also establishes a first-in-the-nation goal of reducing cancer risk from diesel emissions to less than one in a million. [HB 2172]

Climate Change: Combating Global Warming. The Governor supported and signed into law legislation that creates aggressive greenhouse gas reduction goals of 10% below 1990 levels by 2020; and 75% below 1990 levels by 2050. It also creates a Global Warming Commission and a university-level climate research center.[HB 3543]

A copy of the Governor’s proclamation for Energy Independence Month can be found here:
http://governor.oregon.gov/Gov/pdf/energymonth.pdf

Source: Oregon Governor