U.S. Department of Energy - Energy Efficiency and Renewable Energy
EERE Financial Opportunities
Oregon Requires Biofuel Blends in Both Gasoline and Diesel Fuels
July 11, 2007
Oregon Governor Ted Kulongoski signed legislation on July 3rd that will
require all gasoline sold in the state to be blended with 10% ethanol
(a blend known as E10) and all diesel fuel sold in the state to be
blended with 2% biodiesel (a blend known as B2). The requirement for
gasoline will take effect when Oregon's ethanol production reaches
40 million gallons per year, and the diesel requirement kicks in when
the Pacific Northwest's production of biodiesel reaches 5 million
gallons per year. When biodiesel production reaches 15 million gallons
per year, the blending requirement will increase to 5% (a blend known
as B5). The bill creates tax incentives for producers of biofuel
feedstocks and for consumers who buy E85 (a blend of 85% ethanol and
15% gasoline) or pure biodiesel. The bill also includes a tax
incentive for consumers that buy home heating pellets made exclusively
from biomass sources. See the text of the bill, HB 2210.
The governor also noted that the legislature approved a bill that
increases the business energy tax credit on renewable energy systems
from 35% to 50% and increases the credit cap from $10 million to
$20 million. A separate bill expands the residential energy tax credit
to encourage the greater adoption of renewable energy technologies.
See the governor's press release.