SEPTEMBER 2008: AROUND THE STATE

ethanol.jpgWalker  attacks ethanol law


SALEM Just weeks before Eastern Oregon gas stations will be required to sell fuel blended with ethanol, one lawmaker is already reconsidering the state’s year-old renewable fuel mandate, provoking an industry that’s invested upward of $300 million to produce ethanol in, and for, the Oregon market.

Sen. Vicki Walker (D-Eugene) calls ethanol a “boondoggle” and says one of her top priorities in the next legislative session is to repeal or retool the requirement that all unleaded fuel sold in the state be at least 10% ethanol. Walker voted for the law, but now calls her decision a mistake. She says most of her other Natural Resources Committee members side with her.

As more states set biofuel standards and more drivers begin to use it, ethanol as a viable alternative to conventional gas is coming under fresh scrutiny at a time when gas prices are soaring.

Walker says the gas mileage in her Toyota Camry hybrid has dipped since she started using the blended fuel, an ethanol side effect the industry acknowledges. She also blames the increased use of corn for ethanol for rising food prices, although experts continue to debate this. “We have created a very expensive alternative to fuel,” she says.

In June, the new Cascade Grain plant in Clatskanie began producing its goal of 113 million gallons of ethanol per year. President Charles Carlson says the $200 million plant was built in Oregon because of the renewable fuel law, and vows to fight any attempt to overturn it.

It’s a “knee-jerk reaction” Carlson says of Walker’s plans. When locally produced and sold, ethanol drives down prices at the pump and reduces dependence on foreign oil, he says.

The Oregon Environmental Council recognizes corn ethanol isn’t the most efficient alternative fuel, but supports the law because it lays the infrastructure for future investment and research in Oregon into other biofuels such as cellulostic ethanol, says John Galloway, program director.

“Corn ethanol is the only market-ready crop right now,” says Tim Raphael, director of government affairs for Sacramento-based Pacific Ethanol. Last year the company completed a $100 million ethanol plant in Boardman. In January the federal Department of Energy awarded the company $25 million to research and produce cellulosic ethanol at its Boardman facility.

Repealing the law would have a “chilling effect” on similar research and investment, says Raphael.                    

JASON SHUFFLER


Have an opinion? E-mail feedback@oregonbusiness.com

Current Issue | DEC 08

  • The sky is not falling
    10 reasons why you shouldn't panic* *And 9 reasons why you should  MORE >

  • Where did they go? What does it matter that Oregon hasn't seen an IPO for years?
  • Down the line The future of the seafood industry rests with leaders such as Pacific Seafood’s Frank Dulcich, and his ability to balance strong-willed business tactics with collaboration.
  • Economist Tim Duy tempers state's optimism How will Oregon weather the economic storm in comparison to the rest of the nation? This question is at the top of the list for local policymakers and firms.

Around the State

Car dealers collapse as sales drive off a cliff
At first glance, the car lot in outer Southeast Portland looks like all the others nearby, plentifully stocked with “Dealer’s Specials” and “Fresh Start Financing” deals.

Q&A with Jeff Merkley on business
Shortly after he defeated Republican Gordon Smith in early November, U.S. Senator-elect Jeff Merkley caught his breath just long enough to talk briefly about how he would address the challenges facing Oregon businesses.

Telecom suffers and shrinks
The loss of 100 Oregon jobs from Denver-based Qwest, part of 1,200 jobs the telecom company said it would cut nationwide by year’s end, is another blow to an already shrinking job sector in Oregon.

View all Around the State >




Advertisement | Advertising


Biz Life

The boxer rebellion
If ever there was a persuasive reason to start a men’s underwear shop in downtown Portland, Steven Lien thinks he has it. “Women,” he observes, “are tired of seeing guys in bad underwear.”

View all Biz Life >


Lists

Deal Watch: Room to grow for Willamette Valley Vineyards

View all Lists >


From The Editor

Out of the frying pan
There’s been a lot of criticism directed at those who believe the economic sky is is falling.

View all Editorials >


Feedback

Readers put forth their legislative agenda

View all Feedback >