The Oregon Senate today approved House Bill 2210, creating a renewable fuels standard for the state. The bill now goes to Oregon Governor Ted Kulongoski for signing into law. 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 bill establishes minimum thresholds for in-state ethanol and biodiesel (or other renewable diesel) production at which point mandatory blending requirements are triggered.
40 million gallons per year of state ethanol production will trigger a mandatory E10 (10% ethanol) gasoline blend.
5 million gallons per year of state biodiesel or renewable diesel production will trigger a B2 blend requirement.
15 million gallons per year of state biodiesel or renewable diesel production will trigger a B5 blend requirement.
The bill also establishes consumer tax credits for biofuel use.
HB 2210 establishes state production tax credits for such feedstocks as woody biomass, canola, barley, triticale, straw, camelina and flax. A companion bill, HB 2211, provides for greater capital investment in biorefineries, and is still under deliberation in the Senate.
Currently, about 1,000,000 gallons of biofuels are produced annually in Oregon, according to the Oregon Environmental Council.
Earlier this month, Governor Kulongoski signed Senate Bill 838 into law, creating a renewable energy standard in Oregon that requires the state’s largest utilities to meet 25 percent of their electric load with new renewable energy sources by 2025.