Oregon governor signs biofuels law

| Friday, July 20, 2007

A new law in Oregon is aimed at increasing the production and use of alternative fuels in the state. Tax credits will be made available for residents.

Gov. Ted Kulongoski signed the bill into law that includes a requirement that at least a 2-percent biodiesel blend be offered as soon as production of biodiesel in the Pacific Northwest reaches 5 million gallons per year. A 5-percent biodiesel blend will be required when production in the region reaches 15 million gallons per year.

The new law, previously HB2210, also requires gasoline to be mixed with 10 percent ethanol after in-state production of ethanol reaches 40 million gallons per year.

Supporters say such standards for fuel are needed to help reduce the nation’s dependence on imported fuel.

The new law also creates tax incentives for producers and consumers of biofuel. Consumers of biodiesel blended with a 99 percent concentration can receive up to $200 annually in tax credits. Purchases of a gasoline blend that is at least 85 percent ethanol also will be eligible for the tax credits.

To view other legislative activities of interest for Oregon from 2007, click here.

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