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The Exemptions That Aren't: SB 1079

How the Oregon Legislature panicked and fixed HB 2210?

Pigs Do Fly!

Are you now in one of the exalted exempted classes?

The Oregon Legislature panicked at the thought of "airplanes falling out of the sky" and "boat engines conking out on the Columbia bar" and decided that they should exempt certain classes of users from the mandatory E10 law, just like every other state that has so far passed a mandatory E10 law does. Lucky for them there was an experimental "interim" session of the legislature. They got right to work in the Senate crafting some gibberish to tack onto a must pass bill to fix an oversight on tax collection for card lock biodiesel dealers that slipped by in HB 2210. After all was said and done, this is what they came up with: (You can find the entire text of SB 1079 here.)

{ + (5) A retail dealer, nonretail dealer or wholesale dealer may sell or offer for sale gasoline that is not blended with
ethanol if the gasoline is for use in:
(a) An aircraft:
(A) With a supplemental type certificate approved by the Federal Aviation Administration that allows the aircraft to use
gasoline that is intended for use in motor vehicles; or
(B) Issued a type certificate by an aircraft engine manufacturer that allows the aircraft to use gasoline that is
intended for use in motor vehicles;
(b) An aircraft that has been issued an experimental certificate, described in 14 C.F.R. 21.191, by the Federal
Aviation Administration and that is required by the manufacturer's specifications to use gasoline that is intended
for use in motor vehicles;
(c) A light-sport aircraft, as defined in 14 C.F.R. 1.1, that is required by the manufacturer's specifications to use gasoline
that is intended for use in motor vehicles;
(d) A vintage aircraft, as defined by the Oregon Department of Aviation by rule, that is required by the manufacturer's
specifications to use gasoline that is intended for use in motor vehicles;
(e) An antique vehicle, as defined in ORS 801.125;
(f) A Class I all-terrain vehicle, as defined in ORS 801.190;
(g) A Class III all-terrain vehicle, as defined in ORS 801.194;
(h) A racing activity vehicle, as defined in ORS 801.404;
(i) A snowmobile, as defined in ORS 801.490;
(j) Tools, including but not limited to lawn mowers, leaf blowers and chain saws; or
(k) A watercraft. + }
>...
SECTION 6. { + This 2008 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2008 Act takes effect on its passage. + }

Note: This law does NOT include classic cars made between 1955 - 1982 (when they started making ethanol proof fuel systems) and it does not include motorcycles? And it does NOT include Class II all-terrain vehicles?

We pleaded with them to do this the easy way, just as Missouri did, and give a blanket exception to premium unleaded which would have given all constituencies a chance to get the fuel they need everywhere in Oregon easily, but the legislators decided that the best thing for the citizens of Oregon would be to adopt the more stringent language similar to that used in Minnesota.

You will notice that this language is "permissive" and that some constituencies are missing, like motorcycles. Being permissive means that each exempted constituency must find their own source of unblended fuel ... good luck fools. But notice that " ... an emergency is declared to exist ..." so this law will go into effect immediately instead of having to wait 90 days like other laws have to. It has been a couple of weeks since the law was passed by the legislature and the Governor still hasn't signed it and no gasoline station that I know of knows that it exists. The gas stations in Central Oregon are being converted to all E10 at a blazing clip, soon there will be no access to unblended gasoline, so where is the emergency?

It is in this state of affairs pretty much because of one man, the temporary director of the Oregon Department of Aviation, Mr. Dan Clem. You should know that Mr. Clem told four pilots who testified at the final public hearing for SB 1079 that "I don't work for you, I work for the Governor." And he certainly did on the final day of the public hearing. This is the key parts of what he said in answer to a question from Representative Smith of Heppner. (You can read his entire testimony here.)

Smith: "Mr. Harder raised a point about a possible amendment of just exempting premium fuel from the mixture. Do either of you have a comment or a thought on that suggestion?"

Clem: "Madame chair, Representative Smith. With regard to aviation, there are a
number of pilots and pilots associations who believe that that would be the fix, that it
would still guarantee the supply would equal the demand. I will tell you that I am
concerned that there are a number of small aircraft engines that burn regular. They don’t
burn premium. They are not … and some are not able to. Many of them that burn
regular can also burn premium but there are some that cannot. I am not sure that
solves it for everybody but there is a wide held belief that if you exempt all premium
you’re undoing the basic tenets of the ethanol blending law. But again if your
concern is also about price, you would be allowing premium to now become a
premium type fuel and it may not qualify under the business energy tax credits for
fuel infrastructure as well, because it would already be a permitted use. Under this
design of the –9 amendment, it allows the marketplace to discern whether or not
there is enough demand in that area or for that tank or that distributor for an
unblended fuel of any type."

This statement is either a bald faced lie or plain stupidity: "I will tell you that I am concerned that there are a number of small aircraft engines that burn regular. They don’t burn premium. They are not … and some are not able to. Many of them that burn regular can also burn premium but there are some that cannot." Any pilot would know that was untrue, but Mr. Clem, who is supposedly the director of the Oregon Department of Aviation isn't a pilot and he clearly doesn't know what he is talking about and shouldn't be representing us.

The next sentence is the key to the testimony: "I am not sure that solves it for everybody but there is a wide held belief that if you exempt all premium you’re undoing the basic tenets of the ethanol blending law." The man that " ... works for the Governor ..." protected HB 2210.

The last sentence of his testimony has to be the ultimate in cynical bullshit: "Under this design of the –9 amendment, it allows the marketplace to discern whether or not there is enough demand in that area or for that tank or that distributor for an unblended fuel of any type." HB 2210 granted a state mandated monopoly that delivered every gas tank in Oregon to the ethanol industry and now the Governor's man thinks that the market forces should discern if there is enough demand for unblended fuel? So where was the Governor's concern to discern market forces back when HB 2210 was being debated?

I urge you to call, email or write your legislators and ask them to repeal this law.