Jeremy Graybill’s Recent Comments

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  Really?

  To clarify: a subsidy gives you money.
  A tax incentive allows you to keep it.

  Quite different. Especially if you're an accountant.

  It's also worth noting that the incentives are sunsetted out once Oregon production reaches a defined threshold.On Johnny jumped off the Brooklyn Bridge ... must ... jump ... posted 2 years, 5 months ago 110 Responses

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  Spillover

  Ron: I appreciate that concern. And we have thought seriously about those issues. Here are some thoughts:

  What is needed is a clear vision of what sustainability criteria need to be addressed, such as land use changes or impacts on biodiversity, water resources, soil quality, buying locally first, energy balance analysis and so on. There is not yet an agreed-upon set of sustainability standards for biofuels. Eventually all biofuels should have a sustainability certificate that outlines their carbon savings and their ecological impact so that the public can use their dollars to support more local and sustainable practices over those which are destructive.

  We are attempting to create an established biofuels sustainability criterion to provide guidance for the industry and the public; it is a dialogue for ways to address the need to develop low carbon fuels and a way to address global warming pollution.

  1.      The most important priority of a new energy policy is to manage current energy usage and to focus efforts first on conservation and efficiency.  Conservation is the cheapest way to save energy at the source. Vehicle efficiency standards must be improved for the true impact of sustainable biofuels to have the needed impact of reducing America's dependence on foreign oil.

  2.      New sources should be not only environmentally sound, but developed in a socially responsible manner and production facilities locally-owned when possible.  The public benefits of an agriculturally based biofuels operations must be able to adhere to established sustainable agricultural practices.  These standards specify that they are economically viable, attentive to water quality and land-use regulations, locally owned and managed when possible, ecologically sound and a provider of family-wage jobs.

  3.      Biofuel feedstocks must reduce greenhouse gas emissions and analysis of the amount of GHG emissions reduced must be agreed upon by a consensus of crop scientists and academics so that low carbon fuels thrive.

  4.      All crop-based biofuel developments should be analyzed to assess the individual impacts to: wildlife and wetlands, land preservation and topsoil loss, nutrient management, appropriate water use and fossil energy inputs (including pesticides and herbicides) required to extract renewable energy.

  5.      Cellulosic and other biomass energy should not outweigh the need for wildlife habitat and recreational uses and no extraction should occur unless all appropriate regulations and safeguards have been formally addressed.  Watersheds should similarly not be negatively affected by biomass extraction. Biomass must be renewable on the lands where it was originally grown.

  6.      Biofuels feedstocks cannot be grown on environmentally sensitive lands like old growth forests, native grasslands or on ecosystems that support a rich diversity of species and life.

  7.      Byproducts of biofuel production should be utilized in an ecologically sound manner.  Handling these products in a responsible manner should promote sustainable livestock production rather than factory farm production.

  Best regards,
  -JeremyOn Johnny jumped off the Brooklyn Bridge ... must ... jump ... posted 2 years, 5 months ago 110 Responses

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  What subsidy?

  No subsidies are included in HB2210, only tax incentives.On Johnny jumped off the Brooklyn Bridge ... must ... jump ... posted 2 years, 5 months ago 110 Responses

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  What the bill actually does

  There seems to be a lot of discussion of generalities and moral relativism here and not a lot of substantial understanding of the mechanics of this particular bill.

  To help Oregon's rural communities provide economically viable feedstocks for Oregon-consumed biofuels, HB 2210 establishes state production tax credits for such feedstocks as woody biomass, canola, barley, triticale, straw, camelina and flax. And in a companion bill, HB 2211, the Business Energy Tax Credit is expanded to provide for greater capital investment in biorefineries.  HB 2211 still awaits passage in the Oregon Senate.

  Like any industry, biofuels production has environmental impacts. The Oregon Environmental Council worked with the legislature on this bill to ensure that the renewable fuel standards can't be met by biodiesel produced from imported palm oil (palm plantations are supplanting tropical forests) and supported complementary legislation that ensures corn production does not receive feedstock tax credits (conventionally grown corn requires heavy pesticide application and irrigation). There will also be a two-year delay for wheat tax credits.

  In the coming months, we here at OEC will work to ensure that the rules implementing this legislation are written to favor the biofuel feedstocks and biorefinery operations that are most environmentally beneficial.

  Here in Oregon, wheat prices are up from $3.50 / bu. last year to $5.50 today. That's over a 60% increase and it is a much needed change for Eastern Oregon's economy.  Although you may have to pay a little more for your loaf of bread.  The fuel crops are putting a little bit of a spark into the agricultural community.  Ask any Eastern Oregon wheat or hay farmer and they might even tell you that its overdue. From a consumer standpoint that means that the cost of Wheat in a $1.39  - one pound loaf of bread is up from $0.05 to $0.075 approximately.

  Don't let the perfect be the enemy of the good.

  And try not to post anonymously.

  best regards,
  -Jeremy
  On Johnny jumped off the Brooklyn Bridge ... must ... jump ... posted 2 years, 5 months ago 110 Responses