SALEM, Ore. -- With the stroke of a pen, Oregon is moving into the next phase of its Clean Fuels Program, which aims to cut carbon emissions from transportation fuels, partly by changing the mix of fuels importers bring into the state.
Governor Kate Brown (D) has signed Senate Bill 324, which removes a December 2015 sunset date on the Clean Fuels Program, according to The Oregonian. The bill, which narrowly cleared the state legislature, extends the program through 2016 and allows it to fully enter its second phase, which requires fuel importers to calculate surpluses and shortfalls against baseline carbon-intensity values and then strike a balance by blending with biofuel or purchasing offsets.
"With California, Washington and British Columbia moving forward with their own clean fuels programs, which will shape the West Coast market, it is imperative not only that Oregon does its part to reduce greenhouse gas emissions, but also that we build a program that meets the needs of Oregonians," said Brown.
"I appreciate the years of work by countless Oregonians who helped develop this law, and I applaud the Oregon Legislature for its thorough examination of these issues," she continued. "The work begins now to ensure this program is well implemented and well managed."
The bill, which was a priority for Democratic leaders in the state, was heavily opposed by Republicans and some rural Democrats, who argued it could significantly increase gasoline prices. They point to a study by the state Department of Environmental Quality, which estimates that the program could raise fuel prices from four to 19 cents per gallon by 2025, once fully enacted.
Brown, conscious of the Clean Fuel Program's "unintended consequences," has suggested that regulators could track gasoline and farm prices, as well as the program's impact on supplies of alternative fuels, said the report.
But Republican legislators remain unconvinced, and have since cancelled plans to work with their Democratic counterparts on transportation funding to repair roads and bridges, which might have been paid for with an increase to the state excise tax on gasoline. Assuming the Clean Fuels Program did raise gasoline prices in the state, an increase to the gas tax would be even more of a burden on Oregonians, they argue.
Brown told the editorial board of The Oregonian that the transportation funding efforts might not get resolved in the current session. But Lindsey O'Brien, a spokesperson for House Speaker Tina Kotek (D), said that the speaker plans to keep pursuing transportation funding.
"The need for investment in our transportation system is painfully clear," said O'Brien, "and the speaker is going to keep working to fix it."
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