Oregon Legislative Update

[Revised 8/16/07]

· HB2210 – On July 3, 2007, Oregon Governor Ted Kulongoski signed House Bill 2210, creating a renewable fuels standard (RFS). It requires B2 once Oregon production from regional feedstocks totals 5 mgy, B5 once that production reaches 15 mgy. The content requirements do not apply to rail, marine or home heating uses. E10 is required once Oregon ethanol production reaches 40 mgy.

The bill allows non-esterified “renewable diesel” to qualify for RFS compliance if it meets a yet-to-be-established ASTM standard, is approved by EPA, and meets specifications of the National Conference of Weights and Measures . HB2210 also creates income tax credit for production or collection of biomass used to produce biofuel; creates income tax credit for consumer use of biofuels for transportation or home heating (up to $200); and modifies energy facility siting requirement exemptions. HB 2210 creates a quality assurance program and establishes state production tax credits for such feedstocks as woody biomass, canola, barley, triticale, straw, camelina and flax as well as tax incentives for construction of processing facilities. (landru.leg.state.or.us/07reg/measures/hb2200.dir/hb2210.b.html).

· HB3201 – This companion legislation was also passed and increases the annual cap on the business energy tax credit from 35% to 50%, expands BETC to include facilities that manufacture or distribute alternative fuels, and modifies the period over which credit may be claimed (landru.leg.state.or.us/07reg/measures/hb2200.dir/hb2211.b.html).

· Some $2.5 million in funding was approved for the 2007-08 biennium for Oregon Bio-economy and Sustainable Technology Research (BEST) Center which provides research and testing of commercial applications of various green technologies throughout the Oregon university system, focusing initially on biofuels and bio-based products.