Initiative Pitches Energy Options
Westlund asks voters to assist in-state biofuels

By James Sinks / The Bulletin
January 20 2005

SALEM - State Sen. Ben Westlund, R-Tumalo, is joining with former Gov. John Kitzhaber in an effort to accomplish what the divided Legislature could not: spark alternative energy development in Oregon.

The two are the chief petitioners for an initiative filed Thursday that would ask voters in November to authorize tax breaks for in-state production of biofuels and also help finance seven clean energy innovation hubs in both urban and rural locales.

Two of those would be east of the Cascades.

"Oregonians are hungry for positive solutions that will strengthen our state's economy, and this measure will create quality jobs across our state in the fast-growing clean energy sector," Kitzhaber said.

Westlund was a driving force during the 2005 session behind an economic development package that would have encouraged alternative fuel development and opened the door to new cash crops that could be used for biofuels.

The legislation fizzled in end-of-session politicking.

"This was an example of where partisanship killed another great proposal and resulted in the loss of literally hundreds of millions of capital investment in rural Oregon, and help for our ailing farm economy," Westlund said.

House Republicans demanded the bill also extend tax breaks for polluters who comply with state emissions laws, but Senate Demo-crats balked. Democrats wanted to mandate a minimum content of biofuels in gas and oil sold in the state, but Republicans didn't agree.

Also, House leaders wanted to use the bill to stop Gov. Ted Kulongoski, a Democrat, from adopting tougher emission standards.

The governor has since moved to put those standards in place.

Kulongoski also is promoting alternative energy development and was involved in conversations about the new initiative, said Pat Egan, the governor's chief of staff.

The governor unveiled on Thursday a sustainability order that will encourage biofuels and renewable power. "He is doing everything in his power to support sustainable energy," Egan said.

The proposed ballot measure would require that 8 percent of transportation fuel come from renewable sources by 2010, and it would ratchet up to 25 percent in 2025.

But such a mandate could erode support for an otherwise popular idea, predicted Rep. Gordon Anderson, R-Grants Pass, the chairman of the House Environment Committee and one of the key negotiators on the failed biofuel bill.

"Mandates really put retailers under tremendous pressure," he said. "In Minnesota, they had to back off of their mandate because they couldn't produce enough."

If there is enough demand for a product, then there will be a supply, he said. But forcing retailers to use a certain amount might force them to import from Iowa or even Canada, Anderson said.

"The people of Oregon really want a biofuel bill and do not want to be giving more to OPEC nations," but the devil is in the details, he said.

With the goals of creating jobs, encouraging new crops and energy independence, supporters expect the measure to bring together a wide coalition, said campaign manager and environmental activist Mari Anne Gest.

"(It) will bring together Oregonians from all walks of life - business and labor, rancher and farmer, young and old, conservationist and logger - who understand that foreign oil dependence is hurting our state and our nation," she said.

The measure is statutory, and would not change the state Constitution. To qualify for the ballot, backers would need to secure 75,630 valid signatures.

The state of Washington is moving toward a biofuel standard that would start with a requirement that 2 percent of diesel fuel sold in the state come from renewable sources.

Biodiesel is a renewable fuel produced from crops such as canola or used cooking oils and unwanted animal fats. Ethanol is a renewable fuel currently distilled primarily from corn, but it can also be produced from cellulose from wood waste.

The ballot measure is the latest in a return to political headlines for Kitzhaber, who served two terms from 1995 to 2003 and is also trying to muster support for an overhaul of the public health system.

Ending months of speculation, Kitzhaber announced a week ago he is not seeking a return to the governor's mansion.

The alternative energy ballot measure - and pairing with the popular former governor - also promises to raise the statewide profile of Westlund, a political moderate who is being urged to join this year's gubernatorial race as an independent.

Both Kitzhaber and Westlund have said Oregon's polarized politics are hurting the state and that Oregonians are looking for change.

"This is something the Legislature should have done and had every opportunity," Westlund said. "But it got caught up in political brinkmanship for the single-minded purpose of power and control in the Legislature at the expense of good public policy - and Oregon can ill afford such short-term vision."

James Sinks can be reached at 503-566-2839 or at jamess@cyberis.net.