democratherald.com

Telling OPEC to keep its oil

Hasso Hering | Posted: Saturday, March 3, 2007 10:00 pm

The economics of biofuels are debatable, but regardless of the economics, alternative fuel has one overriding appeal: If we make enough of the stuff, we can tell OPEC and characters like Venezuela's Hugo Chavez to take their oil and stuff it.

A recent report out of Oregon State University called into question whether making ethanol or biodiesel was the most economical way to reduce greenhouse gases and cut our dependence on foreign oil. The report suggested that increasing the mileage standard for U.S. vehicles would accomplish more. And it sketched various other problems, such as getting enough raw material and disposing of enormous amounts of byproducts. These problems, defenders of biofuels say, were overstated or superseded by new information.

Using less fuel from foreign sources by driving with more efficient engines would be a welcome step. But we might as well see if we can increase our own fuel production at the same time. If that works too, then we get a double benefit.

That is why the Oregon House did the right thing last week when it overwhelmingly passed two bills, HB 2210 and 2211. In combination, both measures would establish or increase a range of property and income tax incentives for the production and use of alternative fuels. They also would require that when enough of it is being produced in Oregon, all fuel sold in the state contain at least 10 percent of ethanol and, in the case of diesel, 2 percent of biodiesel at one stage and 5 percent at the next.

Why not just let the market alone take care of the conversion? Because it's taking too long, and because in other places where government has taken a leading role, a lot of progress has been made.

Jeff Kropf, the former mid-valley legislator turned talk-show host and lobbyist, points to Minnesota. That state requires a 20 percent ethanol blend by 2013, and production is being ramped up. The state's ethanol industry accounted for more than 10,000 jobs last year and had a hugely positive impact on the state economy.

All vehicles now in use in Oregon can run on the fuel mixtures that would be required by the pending bills. Looking ahead, some pickups now being sold can even run on E85, which is 85 percent ethanol.

Imagine a future in Oregon where much of the fuel we burn is produced in this state. For one thing, no more worry about refineries in Washington or California causing us trouble by shutting down.

The proponents say that using locally made, clean-burning fuel would also be cheaper than gas. OK, but think of the benefits even if it's not. (hh)