Item 3: Ratification of IGR Committee Actions and Direction on Legislative Policy

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This bill should have the effect of increasing Oregon's waste diversion rate by allowing convenient recycling at ODOT managed rest stops. SB 0336 Relating Clause: Relating to fuel. Title: Provides that following notice from State Department of Agriculture, retailer dealer, nonretail dealer or wholesale dealer may not sell or offer for sale gasoline unless 20 percent of gasoline sold contains 10 percent ethanol by volume. Sponsored by: Senator WALKER URL:http://www.leg.state.or.us/09reg/measpdf/sb0300.dir/sb0336.intro.pdf ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Felicity Fahy Felicity Fahy CS-CMO 1/20/2009 Pri 3 Yes YesVII. A1 Monitor Comments: I agree with Eric Jones, same comments as SB 35 SB 0336 Relating Clause: Relating to fuel. Title: Provides that following notice from State Department of Agriculture, retailer dealer, nonretail dealer or wholesale dealer may not sell or offer for sale gasoline unless 20 percent of gasoline sold contains 10 percent ethanol by volume. Sponsored by: Senator WALKER URL:http://www.leg.state.or.us/09reg/measpdf/sb0300.dir/sb0336.intro.pdf ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Tony Jobanek PWM 1/27/2009 Pri 3 Monitor Comments: I agree with Comments from Eric Jones. This bill appears to weaken the current State biofuel requirement. The City of Eugene has been a leader in biofuel use in its fleet and continues to support the use of e10 and b20 to reduce emissions and the dependence on imported petroleum products. ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Eric Jones Eric Jones PW-ADM 1/20/2009 Pri 3 Yes VII. A1 Monitor Comments: SB 336 seeks to lower the requirements for ethanol blending by limiting the amount of fuel required to contain at least 10% ethanol to 20% of the gasoline sold. (Another ethanol bill, SB 35, is designed to include an eco-economic analysis into the decision as to whether ethanol blending should be required). The same considerations offered in the review of that bill apply to SB 336: The City of Eugene has been an advocate for the use of bio fuels in the organization for at least the past five years. This includes the use of ethanol and bio-diesel. We do not recommend that the City of Eugene move away from bio-fuel use unless it was shown to be environmentally harmful or more eco-costly than using 100% petroleum products. Another consideration in SB 336 is whether the 20% requirement is practical in terms of fuel-dispensing operations. Stations may have to have a separate dispensing system to meet the 20% requirement and still offer non-ethanol fuel. (Alternately, if the 20% requirement were on an annual basis, dealers could stock ethanol fuel seasonally to meet the 20% requirement). The City of Eugene proactively decided to use 10% ethanol blend before ethanol blending was required. (The City also proactively switched to bio-diesel.) In general, the city of Eugene is committed to sustainable practices, including the use of renewable and sustainable fuels. Based on that position, staff recommends monitoring the various ethanol- blend bills and leans toward opposing legislation that would weaken the effort to switch to 28