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Oregon House Passes Biofuels Bill; Credits and Renewable Fuel Standard

The Oregon House passed a package of biofuels tax credits and a renewable fuel standard.

House Bill 2210 requires fuel retailers to sell gasoline blended with at least 10% ethanol once Oregon production exceeds 40 million gallons a year, and diesel blended with at least 2% biodiesel by volume—or other renewable diesel with at least 2% renewable component by volume—once production of biodiesel in the state reaches 15 million gallons a year.

The bill also directs that state-owned motor vehicles use alternative fuel to the maximum extent economically possible. State agencies in the future can only acquire motor vehicles capable of using alternative fuel, with some exceptions.

The bill also mandates the use of biofuel, or direct-application electricity generated from biofuel, where petroleum diesel in currently used for stationary or back-up generation.

Under the bill’s provision, consumers get tax breaks as well for filling up with E85 ethanol or B99 biodiesel. Individuals will receive tax credits equal to $0.50 per gallon, not to exceed $200 in any one year—for using those blends.

Individuals will also receive a tax credit for using B20 biodiesel in home heating of the lesser of five cents per gallon or $200.

The bill now goes to the Senate.




Oregon even leads California in setting the pace for biofuels adoption policy. Bravo!

Kit P.

There are two ethanol facilities under construction in Oregon that should replace about 7.5% of the gasoline demand. Way to go Oregon.

Kit P.

The 2005 energy bill created the economic incentives to build ethanol plants, the plants get built, and then Oregon state takes credit.


Maybe the ethanol will dilute out some the benzene in the alaskan crude we get here! Kugi is doing a good job for oregon. He just got a big solar cell company to take over an idled fab in hillsboro. With the rate intel does shrinks on cpu's they will lots of spare capacity with ageing 90um fabs.

Jim in pdx


Oregon has huge forestry industry, with massive amount of wood wastes, like bark and trimmings from coniferous trees. This stuff is no good for anything but gasification.

Big potential.

Spokane Walt

Kudos to Oregon, It is also a smart move on thier part, because anyone in Vancouver, WA that wants to buy biofuels is going across the border adn buying in Oregon - that way any highway taxes that are collected stay in Oregon.

Washington is way behind the power curve on this. They seem to be ignoring BioDiesel for the most part and there is a total of 1 public E85 retailer in the entire state of Washington (Richland). Washington has a Bill on the docket (# 1895) to give a 71% motor fuels tax discount to E85, but nothing for BioDiesel.

Kit P.

The Washington State mandate for ethanol and biodiesel is 2% and was the second nation, a year ahead of oregon.

Washington State will also be the host to the nation’s largest biodiesel production facility located in Greys Harbor. An ethanol facility is located not far from Vancouver.

It would appear that Washington is way ahead of Oregon, and both are ahead of California. Being ahead of California is nothing to brag about however where they spend a lot of time bragging about past accomplishments. Supplying renewable energy to California looks like a growth industry.

Spokane Walt

Laws don't mean anyhing if they aren't put into action. Laws might make the people who pass them and sign them look good, but unless they are put into action, they do no good. Oregon and other states have time to catch up. Washington's Law referenced above doesn't kick in until 2008. Oregon's currnet rebates kick in this year!

The Ethanol plant referenced is "under construction" and won't do Washington any good if most of the product goes to Oregon or further south to California.

Oh, you say that won't happen? Ask the oil companies why there are tankers from the Middle East in the port above Everet, WA - it is because Alaska crude is being shipped to China and the rest of the Far East for better profits.

Seattle has a BioDiesel plant in town , same company that is building in Greys Harbor. They will sell to the highest bidder for thier product. No guarantee it will be sold in Washington. If Oregon has a bigger market, it will go there. Currently, SoyPower Brand from Iowa is being sold in West Seattle as well as just 100 Miles away from Seattle in Ellensburg.

My biggest gripe is that WA state is not promoting BioDiesel and using it as a tool to lower the price of Dino Based Diesel so that people in places like Spokane and Vancouver won't buy across state lines whenever they can. The taxes in Oregon and Idaho are only pennies less than in Wshington, but the price of Diesel in Post Falls Idaho is typically 15 cents to 20 cents cheaper than Spokane - 10 cents a gallon less in Portland vs. Vancouver - at least along I-5. Currently WA State is loosign all that motor fuel tax to other states.

If you don't think Truckers, RVers and others that pass through the area aren't privy to where the cheapest fuel is, think again.


Kit P.

I think producing and selling high price energy to California is a really good idea. Having a modest RPS is also good idea. If biodiesel and ethanol are really good ideas they business will expand to level that makes sense. Incentives may be needed to get the first projects built but time and the market will tell if these are truly good ideas.

Frank Hinde

Just a small issue.

Private aircraft can basically use 100 octane leaded fuel (and it has a lot of lead in it) or 92 octane Ethanol free autofuel.

If the ethanol ends up in the premium all the small aircraft that had changed over to lead free gas will switch back to pumping lead back into the atmosphere.

Sounds like a good deal to me...NOT!

Frank..Private Pilot.


Why is this for biodiesel only? We drive on WVO (waste vegetable oil). Shouldn't there be an incentive for this recycling, renewable fuel too?

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