Biodiesel in Oregon: Policies, Programs, and Incentives. Local. Cleaner. Better.
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1 Biodiesel in Oregon: Policies, Programs, and Incentives Local. Cleaner. Better. 1
2 SeQuential Biodiesel Founded in 2005 Community Centric Production Capacity 6.5 mgy Feedstock: Used Cooking Oil Collection Region: San Francisco Reno Seattle Boise 84 Employees with medical/dental benefits Local. Cleaner. Better. Slide 2 of 10
3 Oregon Clean Fuels Program Lowers the carbon content of transportation fuels by 10% over a 10 year period. Phase 1: Adopted in 2012 allowed DEQ to collect information about fuels imported into the state and use it to create a baseline to measure future reductions against. Phase 2: Implemented in 2014 requires DEQ to finalize the rulemaking with an advisory committee to provide input on how the program is designed. Local. Cleaner. Better. Slide 3 of 10
4 Governor Advisory Committee Met 14 times in past year Committee represented by: Intel, International Brotherhood of Electrical Workers, NW Natural Gas, Daimler Trucks North America Heard presentations from CARB Members, compliance scenarios, economic benefits Three recommendations to Governor Kitzhaber 1. Include a cost containment mechanism to protect consumers (eliminate the on/off scenarios with DEQ rules) 2. Ensure transparency in customer information, supply and pricing 3. Maintain regional approach to carbon intensity methodology of transportation fuels (align with CA-LCFS) Local. Cleaner. Better. Slide 4 of 10
5 Biodiesel Potential Feedstock Soy Canola Waste Oil Total % BD in ULSD 5% 5% 5% 6% 8% 10% 10% 10% 10% 10% Local. Cleaner. Better. Slide 5 of 10
6 Oregon Tax Forgiveness Program Waives $0.30 state road tax for B20 and higher Retail Sales Only B99 has to be 100% UCO 26,000 GVW or less vehicles (no semi s/large trucks) Opened retail market 61 B20 locations Safeway, Shell, Proven B20 higher blends in thousands of vehicles Local. Cleaner. Better. Slide 6 of 10
7 SeQuential B20 Locations - 60% of our sales are Tax Forgiveness - 270,000 gallons/month into retail B20 sales Local. Cleaner. Better. Slide 7 of 10
8 Oregon Legislative Update No opposition in Senate D s have a super majority Democratic Majority in House + 10 House freshman D s and R s being inundated by opposition Local. Cleaner. Better. Slide 8 of 10
9 A VOTE FOR THE LCFS IS A VOTE FOR A HIDDEN GAS TAX OPPOSED BY OREGON VOTERS OREGONIANS OVERWHELMINGLY OPPOSE THE LCFS. Oregonians oppose implementation of the Low Carbon Fuel Standard (LCFS) if the program will increase the cost of fuel. Oregonians overwhelmingly oppose implementation of the LCFS by 56%, with only 38% of Oregonians supporting the increase. The number of those who strongly oppose the LCFS is almost double the number who strongly support the program, 41% to 24%. THE LCFS IS A HIDDEN GAS TAX. Even the Oregon DEQ assumes that gasoline prices will increase between 6 and 19 cents per gallon under the LCFS. Other studies show that the price will increase between 33 cents and $1.06 per gallon. THE LCFS IS DESIGNED TO INCREASE THE COST OF FUEL. The purpose of the LCFS is to drive up the cost of traditional fuels, thereby forcing people to purchase alternative fuel vehicles. If the program does not drive up the cost of fuel significantly, the program fails. RURAL OREGON, LOW-INCOME AND WORKING FAMILIES WILL SUFFER UNDER THE LCFS. The wealthy will be able to buy new vehicles; the less fortunate will have to suffer the high fuel prices. Rural Oregonians and those who have to drive long distances, or those who do not have alternative transportation available, will suffer the most. THE EXAMPLE OF THE CALIFORNIA LCFS IS FALSE AND MISLEADING. Proponents of the LCFS are quick to say that the price of fuel under the California LCFS has not risen. What they fail to say is that the California LCFS is stuck because of a court decision, so the program has not been tested. In fact, the carbon content for gasoline currently sold in Oregon is about the same as that sold in California after 4 years under the LCFS. THE LCFS IS ABOUT MONEY, NOT CARBON REDUCTION. Oregon and the federal government already mandate the blending of every drop of cellulosic ethanol produced. Additionally, Oregon has a 10 percent ethanol mandate. Oregon consumers resist a higher ethanol content because ethanol is not as fuel efficient as gasoline. Ethanol is cheaper because of taxpayer funded credits to the ethanol industry. The LCFS is about transferring money from consumers who drive gasoline and diesel-powered vehicles to those who purchase electric vehicles. Local. Cleaner. Better. Slide 9 of 10
10 Questions Gavin Carpenter Policy and Business Development (503) Local. Cleaner. Better. Slide 10 of 10
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