AGRICULTURE AND NATURAL RESOURCES

 

 

January 28, 2005   Hearing Room C

9:00 A.M.   Tapes  10-11

Corrected 9/26/2005)

MEMBERS PRESENT:            Rep. Patti Smith, Chair

Rep. Arnie Roblan, Vice-Chair

Rep. Terry Beyer

Rep. Chuck Burley

Rep. Mark Hass

Rep. Mac Sumner

 

MEMBER EXCUSED:            Rep. Brian Boquist, Vice-Chair

 

STAFF PRESENT:                  Patrick Brennan, Committee Administrator

Jania Zeeb, Committee Assistant

 

MEASURES/ISSUES HEARD:

                                                HJM 1-Public Hearing and Work Session

                                                                  Briefing on Biodiesel and Biofuels- Informational Meeting

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 10, A

003

Chair P. Smith

Calls the meeting to order at 9:02 a.m. and opens the public hearing on     HJM 1.

HJM 1-PUBLIC HEARING

009

Patrick Brennan

Committee Administrator.  Explains HJM 1.

014

Dave Barrows

Legislative Counsel for the Association of O&C Counties.  States that this is a critical memorial.

025

Barrows

Explains what the memorial does and the consequences if it does not pass. 

039

Barrows

Urges the committee to adopt the -2 amendments.

049

Rep. Dave Hunt

House District 40. Testifies on behalf of Rep. Jeff Merkley, House District 47, in support of HJM 1.  Explains why he is interested in the memorial.  States that if the Secure Rural Schools and Community Self-Determination Act is not renewed it will seriously hurt finances in communities throughout the state. 

064

Rep. Hunt

States that the message needs to be sent to the federal government that this is a high priority for Oregon.

070

Chair P. Smith

Closes the informational meeting and opens the work session on     HJM 1.

HJM 1-WORK SESSION

073

Rep. Burley

MOTION:  Moves to ADOPT HJM 1-2 amendments dated 1/26/05.

077

Rep. Beyer

Notes the interest in the room, and states that she is happy to be supporting this memorial. 

 

 

VOTE:  6-0-1

EXCUSED:  1 - Boquist

 

Chair P. Smith

Hearing no objection, declares the motion CARRIED.

 

087

Rep. Burley

MOTION:  Moves HJM 1 be sent to the floor with a BE ADOPTED AS AMENDED recommendation.

090

Rep. Roblan

Comments that it is important that people understand that federal policies have direct impacts on state governments and on the lives of the citizens. 

105

 

VOTE:  6-0-1

AYE:            In a roll call vote, all members present vote Aye.

EXCUSED:  1 - Boquist

 

Chair P. Smith

The motion CARRIES.

 

113

Chair P. Smith

Closes the work session on HJM 1 and opens the informational meeting on biofuels and biodiesel.

BRIEFING ON BIODIESEL AND BIOFUELS-INFORMATIONAL MEETING

121

David Van’t Hof

Governor’s Natural Resource Office. States that Governor Kulongoski is very interested in biofuels, and this is an important window to try to generate the biofuel industry in Oregon.  Lists communities that are supportive. 

149

Van’t Hof

Explains the initiatives the Governor has been involved with that deal with biofuels. 

172

Van’t Hof

Expands on stakeholder involvement.

184

Van’t Hof

States that Governor’s office partners with the Department of Energy and Climate Solutions to reach out to educate farmers and agriculture associations to help them understand the opportunities in biofuels.  States that many people are interested in the subject.

201

Glen Montgomery

Sustainable Business Liaison, Oregon Economic and Community Development Department (OECDD).  Explains the economic and environmental benefits to biofuels.  

221

Montgomery

Says the state could have locally grown fuels that benefit Oregon and can be exported to other areas of the country.  Gives and example of the demand for ethanol.

244

Montgomery

States that there are currently no biofuel production plants in operation on the west coast.

250

Montgomery

Quotes a study performed in 2002 that gives and example of the benefits of an ethanol plant.  

271

Montgomery

Emphasizes the opportunities that biodiesel brings to Oregon. 

307

David Hackleman

Professor of Chemical Engineering, Oregon State University (OSU). Submits and begins a PowerPoint presentation on Biodiesel and Biofuels (EXHIBIT A).

325

Hackleman

Explains the graphs on (EXHIBIT A, Page 1).

347

Hackleman

Compares how biodiesel is made to how petroleum diesel is made. 

377

Hackleman

Expands on the chart (EXHIBIT A, Page 4).

386

Hackleman

Explains the different products that are created when making biodiesel.

403

Tom Chastain

Professor of Crop and Soil Science, OSU.  Explains the implications and benefits that biodiesels represent for Oregon.

425

Chastain

Discusses Canola-based biodiesel and it’s implications for Oregon and gives reasons it is one of our best options.

TAPE 11, A

024

Chastain

Explains chart in (EXHIBIT A, Page 6) and how we can meet the State’s biodiesel needs.   Indicates that the state has a need for processing facilities.

036

Jan Auyong

Assistant Director, Sun Grant Western Regional Center.  States that ethanol is a good opportunity for Oregon but there is more required in terms of manufacturing than biodiesel. 

058

Auyong

Explains chart on (EXHIBIT A, Page 7).

071

Hacklemna

Details the current involvement in this product at OSU, and how the different people at OSU are working together. 

092

Auyong

Explains the Sun Grant Initiative, and how OSU interacts with the project.

134

Rep. Beyer

States that she has attended an informational meeting on the subject, where it was said that the United States will not be able to eliminate its dependence on foreign countries because the nation must import many of the products needed for the manufacture of biofuels.  Inquires if there is sufficient capacity in the United States to meet the demand.

136

Hackleman

Responds that in his opinion that we could cover most of what is needed.

156

Rep. Beyer

Requests clarification whether the nation could produce enough biofuels to meet current demand, or if the ability to do so into the future would require Americans to change their consumption habits.

158

Hackleman

Concurs that it would not be possible to keep up with current demand unless consumption habits were changed.

164

Charles Carson

President, Cascade Grain Products.  Submits and begins a PowerPoint presentation entitled Today’s Ethanol Industry (EXHIBIT B).

190

Carson

Expands on the benefits of the ethanol plant (EXHIBIT B).

225

Chair P. Smith

Inquires what the average wage will be for the people working at the plant.

228

Carson

Gives the average wage with benefits for all the people working at the plant.

237

Carson

Explains the chart in (EXHIBIT B, Page 5).

264

Carson

Explains the chart in (EXHIBIT B, Page 7).

284

Carson

Reviews the uses and benefits of ethanol.

306

Carson

Gives the different opportunities currently available in the ethanol production industry.

327

Carson

Expands on the world ethanol production chart in (EXHIBIT B,     Page 12).

345

Carson

Explains the bans on Methyl Tertiary Butyl Ether (MTBE) in 21 states.

358

Carson

Talks about the current United States petroleum industry.

389

Carson

Expands on mandates listed in (EXHIBIT B, Page 16).

407

Carson

Discusses the potential for ethanol.

TAPE 10, B

012

Rep. Sumner

Inquires of the location of the ethanol plant in Oregon.

015

Carson

Responds that it is at Port Westward in Columbia county.

016

Rep. Roblan

Asks if the cellulose technology is as advanced as the grain technology

017

Carson

States that cellulose technology is advancing, but is not as advanced as the grain technology.

025

Rep. Roblan

States that the Oregon plant will use corn as a base for the fuel.  Inquires whether there are other crops that produce more ethanol than corn.

026

Carson

Answers that corn is used in over 95 percent of ethanol producing plants because it has the highest yields. 

031

Rep. Roblan

Inquires if ethanol production might exhaust corn production capacity or if there is the potential for growth.

033

Carson

States that there is growth in terms of production of seeds and states that production is increasing in terms of both yields and acreage. 

041

Rep. Roblan

Asks about crops that are used in rotation with corn.

042

Carson

Responds that corn is its own rotational crop.

053

Chair P. Smith

Closes the informational meeting on biodiesel and biofuels and adjourns the meeting at 10:01 a.m.

 

EXHIBIT SUMMARY

 

  • A.     Biodiesel and BiofuelsBiofuels and Biodiesel, PowerPoint presentation, David Hackleman, 10 pp
  • B.     Biodiesel and Ethanol, EthanolBiofuels,  Industry presentation, Charles Carson, 17 pp