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beyond 2008, stems from recent legislation Department of Agriculture promulgated <br /> relating to reformulated gasoline. administrative rules (O.A.R. 603-027) to <br /> implement the legislation in the fall of 2007. <br /> Figure 4: Motor Fuel Consumption The mandate to distributors and retailers to <br /> implement the blending of ethanol spanned <br /> ° <br /> ° three phases across the state. For the nine <br /> o 4°'° counties in the northwestern part of the state, <br /> 2,200- 2°% ~ blends with 10 percent ethanol (E10) needed <br /> a <br /> 2,000_ o°% ~ to be in place no later than January 15, 2008. <br /> a 1,800_ _2°,° 3 The nine counties in the southwestern part of <br /> o 1600 _ _4°,° ~ the state were to meet the blending <br /> requirements in mid-April. Finally, the <br /> 1,400- remaining 18 counties, largely in the regions <br /> 1,200 - <br /> 1990 1995 2000 2005 2010 2015 east of the Cascades, were to have the blends <br /> 0 Motor Fuel Consumption ~ Percentage Change in place no later than September 16, 2008. <br /> Eschewing here a comprehensive discussion <br /> of the pros and cons of using ethanol to <br /> In the fall of 2007, Congress passed and the ox enate asoline it is well known that <br /> President si ned new ener le islation as an yg g ' <br /> g gy g ethanol is less fuel efficient than MTBE <br /> outgrowth of somewhat unfavorable blended as. There is considerable debate <br /> develo ments in lobal oil markets and g <br /> p g over the actual extent of lower gas mileage <br /> concerns with climate change. One that drivers are likel to ex erience however. <br /> coin onent of the le islation deals with the y p ' <br /> p g <br /> fuel efficiency of light passenger vehicles. Poorer fuel efficiency by the light vehicle <br /> The law requires car and light truck makers to fleet will partly manifest itself in more gallons <br /> improve the miles per gallon (mpg) of being consumed and somewhat larger gas tax <br /> vehicles under the CAFE standards to 35 revenues.3 While some estimates are for as <br /> miles per gallon by the year 2020. Since this much as a 10 percent loss in efficiency, most <br /> is considerably beyond the horizon of our indications are for a probable range of 2 to 5 <br /> present forecast, and will be for a number of percent losses. (On a pure BTU basis, E10 is <br /> years, its effects are not captured in our fuel roughly 3.8 percent lower than MTBE- <br /> demand forecasts. (It will be, however, part of blended gasoline by our calculations.) <br /> our long-range projections. These are done on Coupled with this uncertainty over the lower <br /> an as-needed basis and routinely go out 20-25 mpg likely to result from E 10, the staggered <br /> years into the future to help the Agency gauge implementation of the bill's requirements <br /> the long-term prospects for fuels tax makes an assessment of the likely effect of <br /> revenues.) this new law on the State Highway Fund <br /> somewhat problematic at best. <br /> Effects of House Bill 2210 <br /> A statistical analysis would be of considerable <br /> In the 2007 Regular Session, the Oregon utility in this regard, but the necessary data <br /> Legislature passed House Bill 2210, the will not be available until well into calendar <br /> <br /> Biofuels Bill. Several sections of the bill year 2009. Even then, the findings may lack <br /> pertain to the required use of ethanol as a <br /> blend with gasoline in lieu of using methyl 3 <br /> tertiary butyl ether ("MTBE") to make There are no material or similar considerations, <br /> however, applying to the impacts of the bill in <br /> reformulated gasoline that burns cleaner and romotin biodiesel blends in use fuels which is <br /> miti ates ozone and carbon emissions. The p g ' <br /> g predominately diesel fuel. <br /> 8 <br /> <br />