Examines the economics of three biofuel options for Oregon: corn-based ethanol, canola-based biodiesel, and cellulosic wood-based ethanol. For each option, four questions are addressed: 1. Is the biofuel commercially viable? 2. Is it a cost-effective way to pursue our national goal of energy independence? 3. Is it a cost-effective way to pursue the goal of reducing greenhouse gas emissions? 4. On what scale might these biofuels be produced in Oregon? The analysis finds two of the three biofuels evaluated to be commercially viable in Oregon given current prices, technologies, and subsidies. The study also shows, however, that the apparent commercial viability of a particular biofuel may not be a strong indicator of its cost-effectiveness or potential for achieving society's goals for energy independence or environmental quality. Tables, figures, references.