Oregon Business Association › Public Policy › Policy Committees

Environment and Economic Development

Upcoming meeting: Wednessday, April 16th. “Water Policy” with Speakers: Mike Carrier, Natural Resources Policy Director, Office of Governor Kulongoski.

Renewable Energy and Fuels

OBA supports Oregon’s transition to renewable energy and renewable fuels as part of both an economic development strategy and as a means of achieving energy independence, security, and energy cost savings to businesses.

Specifically, OBA supports:

Bio-Fuels Package. OBA supports the Governor’s Bio-Fuels package. The bill will promote alternative fuels for transportation. The purpose is to provide energy independence, jobs in Oregon and to reduce global warming pollution. Many people see this bill (and the companion which addresses electricity) as an opportunity to bring environmentalists, the business community and agriculture together. The bill includes:

property tax exemption for biofuel, ethanol and other renewable fuels. New tax credits for producers of biofuel raw materials. Prohibition on the use of MTBE and certain other additives;
Renewable Fuel Standard (RFS) for biodiesel and ethanol based on in-state production;
Clarification that the revised siting process for ethanol and biodiesel production facilities does not apply to coal-fueled facilities; and
Expansion of the state agency alternative fuel mandate to include biodiesel and off-road vehicles.

Renewable Portfolio Standard (RPS) and Energy Credits. The purpose is to develop Oregon jobs, provide diversity and stability to energy prices, and reduce global warming pollution. The Governor has identified clean energy as a key economic growth engine for Oregon. We believe that renewables are important. At the same time, it is critical that our electricity supplies remain in place, are dependable and are available at reasonable rates. For this reason, we advocate that the RPS be adopted in a careful and cautious manner that will ensure that our future energy needs are met.

OBA proposes the following actions:

Establish a Renewable Portfolio Standard (RPS) for electricity. OBA plans to support the goals and objectives of the Renewable Working Group, a group consisting of all the key stakeholders including business, producers and consumers, whose legislative proposal is likely to require that 25% of Oregon’s electric load come from new renewable energy by 2025. It is important that the RPS meet the intended result of creating new markets in Oregon and meeting standards for renewable energy while also protecting Oregon business and residential consumers from unreasonable or excessive costs.
Increase Business Energy Tax Credit (BETC) from 35 to 50% and cost limitations from $10 to 20 million. Increase the credit for combined heat and power from 35 to 50%.
Expand Residential Energy Tax Credit (RETC) to allow homebuilders who install solar and other renewables in new homes to receive the RETC; allow use of RETC more than once in a year; increase tax credit for fuel cells.

Pollution Control

OBA believes that protection and restoration of Oregon’s rivers and streams, air quality and land are essential to the long-term economic health of our state. We believe that business can and should continue to be a partner with government and individuals in this effort. OBA supports policies that encourage businesses to achieve environmental benchmarks that go beyond existing state and federal requirements. We also support the provision of incentives for businesses that create Environmental Management Systems (EMS) geared toward sustainable practices. We support funds for systematic plans for technologies and work process improvements that eliminate or reduce pollution throughout the business operation.

Specifically, OBA supports:

PCTC Sunset or Program Modernization

The Pollution Control Tax Credit is the largest and most important pollution control program in Oregon. It offers tax credits for companies that reduce pollution. OBA proposes to modernize the credit and emphasize programs that go “above and beyond” compliance with existing laws. OBA supports a tax credit that includes the following features:

Sunset or alter the current law to create an environmental enhancement law that offers a tax credit for businesses that reduce pollution.
Create the Environmental Enhancement Tax Credit, a larger tax credit for the portion of pollution control facility costs that have been spent to provide environmental results that are better than those required by regulation.
Enhanced tax credits for operational costs associated with creating an environmental management system (EMS) that prevents or reduces pollution.
Enhanced tax credits for capital costs associated with retooling and applicable processes.
Continue a smaller tax credit for environmental equipment that is used to achieve compliance with the law.
provision to phase in a goal whereby 70% of credits are awarded for projects that deliver environmental results that exceed regulatory levels.
Reporting requirements that improve program accountability.
Require the State to provide regular reports on the amount and type of pollution that is reduced by the tax credit.
Transferability of tax credits between companies.

Support for Environmental Programs

OBA believes that we should support institutions that have been created to manage and oversee environmental programs. The Department of Environmental Quality (DEQ) and key portions of the Public Health Division responsible for drinking water testing have suffered frequent budget cuts. This has led to problems including a backlog of permitting, reductions in monitoring and reporting, reductions in enforcement, and delays in new rule making. Failure to correct these problems may result in losing some key functions to federal control.

Specifically, OBA supports:

Budget increases requested by the Department of Environmental Quality (DEQ) and the Public Health Division.

Recycling

OBA supports recycling and product stewardship and we believe that manufacturers, retailers and consumers all have an important role to play. Oregon has played a leading role in recycling policy with the passage of the bottle bill and curbside recycling services. Oregonians are enthusiastic recyclers with one of the lowest rates of litter and highest recycling rates in the country. However, most electronic waste goes into landfills and currently there is no effective mechanism to control e-waste pollution. In addition, there is increased litter due to changes in consumption and merchandizing of bottled and canned beverages. The bottle bill has not been updated since 1970 and does not effectively address these changes.

Specifically, OBA supports:

E-Waste Legislation

The legislation would establish a statewide product stewardship system for televisions, monitors and personal computers. As a condition of selling these products in the state, manufacturers would be required to finance free, convenient and environmentally sound recycling services throughout the state. Manufacturers will be able to choose whether they will finance their own plan or jointly finance a plan with other manufacturers. E-waste legislation would provide:

Free drop off for households and small businesses;
Convenient collection locations across the state; and
Environmentally sound management of all collected e-waste.

Bottle Bill Modernization

The current legislation, while effective in promoting recycling and reducing litter, does not address the sources of the state’s increase in beverage container litter. Modernization of the bottle bill would include adding a deposit on water bottles, an increase in the current deposit amount and other alternatives. In addition, the legislation must address problems container handlers will face with an expansion of the current law.

Land Use

Oregon Business Association supports Oregon’s land use laws that protect farm and forest land and encourage responsible development. We support a long-term solution to Oregon’s land use protections that is fair to property owners while also protecting Oregon’s livability.

Climate Change

OBA recognizes global climate change as a threat to Oregon’s quality of life and economic health. This year we support the biofuels and renewable portfolio standard as practical ways that Oregon can begin to transition to a carbon-constrained economy. We believe that a comprehensive solution may be necessary as well. We will continue to monitor federal rules, the science, and opportunities for state and regional approaches. As time unfolds we will engage in discussions about a regional cap and trade program.

Research and Development

The Oregon Innovation Council, a statewide public-private advisory council recommends a stimulus package to up to $40 million to be invested by the state by 2009. One of the recommendations is an investment in a “signature research center” for sustainability. The Council is requesting $3.2 million for a center that will include research on green buildings, clean energy and bio-projects. The center will also act as an incubator for commercialization. In addition, the Council is requesting a $5.2 million grant supporting development of the nation’s first commercial-scale wave-generation park on the Oregon Coast.

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