Biofuels Legislation Bill Signed in Eugene

Gov. Kulongoski fills up with biodiesel, signs legislation

Measure requires gas to be mixed with 10% ethanol

BY AARON CLARK
The Associated Press

July 4, 2007

Gov. Ted Kulongoski fueled up his official ride -- a black, four-wheel-drive Chevrolet Tahoe -- at a biodiesel station in Eugene on Tuesday where he signed legislation aimed at increasing the production and use of the alternative fuels in Oregon.

The measure requires gasoline sold in the state to be mixed with 10 percent ethanol after in-state production of ethanol reaches 40 million gallons per year, in order to support the change.

A similar production target for biodiesel crops used for biofuel production will trigger a mandatory 2 percent blend in all diesel fuels sold in Oregon.

"These bills will not only create financial opportunities for Oregon's agricultural sectors, but it will help reduce our greenhouse gas emissions while creating thousands of jobs in rural Oregon," said Kulongoski. "It will move Oregon significantly down the road to a renewable energy future, creating hundreds of millions -- if not billions -- of dollars of investment."

The biofuels package includes tax incentives for both growers and producers of feedstocks that include crops such as canola seeds, grass and wheat straw. Those crops can be converted to either ethanol or biodiesel which are added to motor fuel and can be used in most vehicles.

But biofuels have faced criticism for the amount of energy they take to grow and some observers say they are driving up the price of food staples such as corn.

"The price of tortillas in Mexico is climbing rapidly because of the amount of corn going into ethanol in the United States in particular," said John Balbach, managing partner of Cleantech Group.

But proponents argue biofuels offer a cleaner, more stable alternative to imported fossil fuels which contribute to climate change. "Today is about signing legislation that creates a lasting environmental legacy for future generations," said Kulongoski.