Abstract:
Although Oregon’s active forest sector and extensive forests make wood a plentiful source of energy, the costs of handling and transporting woody biomass can be a significant obstacle to increased use of this energy source. Oregon’s Biomass Producer or Collector (BPC) Tax Credit offsets costs for transporting and processing biomass used in the production of bioenergy. We quantified how the BPC Tax Credit has changed the amount of woody biomass used for bioenergy and the price of woody biomass in Oregon in 2011. Further, we estimated the amount of economic activity created within Oregon from additional work to collect and transport woody biomass supported under the BPC Tax Credit program. Finally, we described two potential alternate program formulations for consideration in reviewing and evaluating modifications.