Merkley: "This is the future we envisioned... when we set out to make Oregon a leader in renewable energy."

"Expansion likely to trigger renewable fuel standard"
Mitch Lies, Capital Press
9/5/08

SALEM - Oregon's largest biodiesel processing facility on Friday, Aug. 29, celebrated a plant expansion that boosts its production capacity to 5 million gallons a year. The expansion is expected to trigger Oregon's renewable fuel standard for diesel.

"This is the future we envisioned at the start of the 2007 session when we set out to make Oregon a leader in renewable energy," said Oregon House Speaker Jeff Merkley, D-Portland, who spoke at the grand opening just days after speaking at the Democratic National Convention in Denver.

Merkley is running against Sen. Gordon Smith, R-Ore., for Smith's Senate seat. He was part of legislative leadership that passed Oregon's renewable fuel standard last year.

The standard requires all diesel sold in Oregon contain 2 percent biodiesel when in-state production reaches 5 million gallons a year from Northwest feedstocks.

Biodiesel produced from locally generated, used cooking oil - which Sequential Pacific Biodiesel uses as a source - counts toward the standard.

The standard could kick in as early as next summer.

The blending standard increases to 5 percent biodiesel when in-state production from Northwest feedstocks reaches 15 million gallon a year.

Oregon currently requires that fuel sold in Western Oregon contain 10 percent ethanol. Beginning Sept. 16, the ethanol standard kicks in for Central and Eastern Oregon.

Sequential Pacific plant investors said they relied on Oregon business energy tax credits and renewable energy tax credits adopted by the 2007 Legislature to help finance the expansion.

EPA Region 10 Administrator Elin Miller, who also spoke at the grand opening, said biodiesel improves public health, helps local economies, reduces reliance on foreign oil and reduces pollution.

"That for me is a win, win, win," she said.

Country music star Willie Nelson, who is an investor in the plant, also spoke at the opening.

Posted September 5, 2008
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