Oregon Incentives and Laws for Biodiesel
The list below contains summaries of all Oregon incentives and laws related to Biodiesel.
State Incentives
Biofuels Use Tax Credit
Oregon residents are eligible for an income tax credit of $0.50 per gallon of gasoline blended with at least 85% ethanol (E85) or diesel blended with at least 99% biodiesel (B99) purchased for use in an alternative fuel vehicle (AFV), up to $200 per tax year for each AFV that is registered in Oregon and owned or leased by the resident. For the purpose of this tax credit, an AFV is a motor vehicle that can operate using E85 or B99. This incentive is applicable until January 1, 2013. (Reference Oregon Revised Statutes 315.465)
Alternative Fuel School Bus Grant and Loan Program
The Oregon Department of Energy (ODOE) must establish the Clean Energy Deployment Program. Under this program, school districts may be eligible for grants and loans to retrofit school bus fleets to operate on compressed natural gas, propane, or other alternative fuels, or to operate with highly efficient engine technologies, such as hybrid electric engines. Funds may also be used to replace school buses with buses that operate on these fuels or technologies. (Reference House Bill 2960, 2011)
Alternative Fuel Loans
The Oregon Department of Energy administers the State Energy Loan Program (SELP) which offers low-interest loans for qualified projects. Eligible alternative fuel projects include fuel production facilities, dedicated feedstock production, fueling infrastructure, and fleet vehicles. Loan recipients must complete a loan application and pay a loan application fee. (Reference House Bill 3672, 2011, and Oregon Revised Statutes 470)
Biofuels Production Property Tax Exemption
Property used to produce biofuels may be eligible for a property tax exemption if it is located in a designated Renewable Energy Development Zone. The Oregon Business Development Department must receive and approve an application from a qualified rural area to designate the area as a Rural Renewable Energy Development Zone. (Reference Oregon Revised Statutes 285C.350 through 285C.370)
Laws and Regulations
Establishment Low Carbon Transportation Fuel Standards
The Oregon Department of Environmental Quality (DEQ) developed a proposed low carbon fuel standard for all transportation fuels, including a lifecycle greenhouse gas (GHG) emission standard for the production, storage, transportation and combustion of fuels. DEQ will conduct a formal rulemaking process to seek review and comments in 2011. The proposed standards aim to reduce average GHG emissions per unit of fuel energy by 10% below 2012 levels by 2022. For more information, see the DEQ Low Carbon Fuel Standard website. (Reference House Bill 2186, 2009)
Renewable Fuels Mandate
All gasoline sold in the state must be blended with 10% ethanol (E10). Gasoline with an octane rating of 91 or above is exempt from this mandate, as is gasoline sold for use in certain nonroad applications. Gasoline that contains at least 9.2% agriculturally derived ethanol that meets ASTM specification D4806 complies with the mandate. For the purpose of the mandate, the ethanol must meet ASTM specification D4806. The governor may suspend the renewable fuels mandate for ethanol if the Oregon Department of Energy finds that a sufficient amount of ethanol is not available.
All diesel fuel sold in the state must be blended with at least 5% biodiesel (B5). For the purpose of this mandate, biodiesel is defined as a motor vehicle fuel derived from vegetable oil, animal fat, or other non-petroleum resources, that is designated as B100 and complies with ASTM specification D6751. Diesel fuel blends sold between October 1 and February 28 may contain additives to prevent congealing or gelling. Beginning January 2, 2012, renewable diesel will qualify as a substitute for biodiesel in the blending requirement.
(Reference House Bill 3693, 2010, House Bills 2827, 2011, Oregon Revised Statutes 646.913-646.923, and Oregon Administrative Rules 603-027-0410 and 603-027-0420)
Biodiesel Quality Testing Procedures
Each biodiesel or other renewable diesel producer, distributor, or importer must retain the certificate of analysis for each batch or production lot of B100 sold or delivered in the state for at least one year. The Oregon Department of Agriculture (ODA) or authorized agents may examine these records as necessary. The ODA or authorized agents may also perform on-site testing or obtain samples of biodiesel or other renewable diesel from any producer, bulk facility, or retail location that sells, distributes, transports, hauls, delivers, or stores biodiesel or other renewable diesel. The related testing cost is the responsibility of the business providing the sample. (Reference Oregon Revised Statutes 646.923)
Biofuels Program Impact Studies
The Oregon Department of Energy (Department) must conduct periodic impact studies related to the biofuels industry in the state. These studies should evaluate such criteria as: jobs created; current and projected feedstock availability; amount of biofuels blends produced and consumed in the state; cost comparison of biofuels blends and petroleum fuel; environmental impacts; and the extent to which Oregon producers import biofuels or biofuels feedstocks from outside the state. The Department issued the first Biofuels Impact Study in 2010 and will conduct a study every two years through January 1, 2025. (Reference Oregon Revised Statutes 469.785)
Alternative Fuel Vehicle (AFV) Acquisition, Fuel Use, and Emissions Reductions Requirements
All state agencies and transit districts must purchase AFVs and use alternative fuels to operate those vehicles to the maximum extent possible, except when it is not economically or logistically possible to purchase or fuel an AFV. Each state agency must develop and report a greenhouse gas reduction baseline and determine annual reduction targets. Reports to the Oregon Department of Administrative Services must include the volume of ethanol and biodiesel used by state agency fleets, as well as any cost savings attributable to driving more fuel-efficient vehicles and using alternative fuels. (Reference Oregon Revised Statutes 283.327 and 267.030, and Executive Order 06-02, 2006)
