Portland, Oregon, has long been at the forefront of sustainability and environmental innovation. In a landmark move, the city is setting a new benchmark for urban environmental policy with its updated Renewable Fuel Standard, adopted in 2022. This ambitious policy is not just a statement of intent; it's a concrete step toward drastically reducing the carbon footprint of diesel fuel used within the city. Here's what you need to know about this pivotal change and how it affects our community and industry.
A Bold Step Forward
Starting July 1, 2024, Portland will begin phasing out petroleum diesel in favor of renewable diesel and biodiesel, marking a significant shift towards cleaner, more sustainable fuel options. By July 1, 2030, the city aims for its diesel fuel mix to be 99% renewable. This initiative is part of Portland's broader strategy to tackle climate change by reducing carbon emissions from transportation, which remains a significant contributor to the city's overall carbon footprint.
Understanding the Renewable Fuel Standard
The Renewable Fuel Standard mandates that diesel sold in Portland must contain at least 15% renewable fuel starting from mid-2024. This proportion will increase dramatically over the following years, reaching a near-total renewable composition by 2030. A crucial aspect of this policy is the introduction of a carbon intensity (CI) standard, which requires all biodiesel and renewable diesel to have a CI of 40 grams CO2 equivalent per megajoule (g CO2e/MJ) or lower, as certified by the Oregon Department of Environmental Quality's Clean Fuels Program. This CI standard ensures that the shift to renewable diesel and biodiesel also focuses on reducing greenhouse gas emissions across the fuel's entire lifecycle.
Who's Affected?
The policy applies to a broad spectrum of entities involved in the fuel supply chain within Portland, including fuel distributors, resellers, retailers, nonretail dealers, terminals, importers, and wholesale purchaser-consumers. These "covered entities" are directly regulated under PCC Chapter 16.60 and must adapt their operations to comply with the new standards.
Compliance and Reporting
Compliance with the Renewable Fuel Standard can be demonstrated through various means, such as advertising biofuel content, maintaining records of biofuel percentages on bills of lading or product transfer documents (PTD), and adhering to the carbon intensity requirements for biofuel blendstock. The city does not impose additional reporting requirements for minimum biofuel content; however, covered entities must navigate through three carbon intensity standard compliance options—book and claim, PTD, or delivered fuel summary—to ensure adherence to the CI standard.
A Model for the Future
Portland's updated Renewable Fuel Standard is not just about transforming the fuel landscape; it's about setting a precedent for other cities to follow. By prioritizing renewable fuels and implementing stringent carbon intensity standards, Portland is taking a holistic approach to reduce transportation emissions. This policy underscores the city's commitment to environmental stewardship and showcases the potential for urban areas to lead the way in the transition to a more sustainable and low-carbon future.
The Road Ahead
As Portland takes significant strides towards sustainability with its updated Renewable Fuel Standard, Diesel Direct is fully prepared to not only adhere to these new regulations but to lead the transition towards renewable diesel. Our partnership with Neste, a global leader in renewable diesel, positions us uniquely in the Portland area to meet and exceed the city's requirements.
Neste MY Renewable Diesel
Diesel Direct distributes and sells Neste MY Renewable Diesel in Portland, a premium product that perfectly aligns with the cities environmental aspirations. Neste MY Renewable Diesel is produced from 100% renewable raw materials, significantly reducing greenhouse gas emissions compared to conventional petroleum diesel. This product boasts a carbon intensity far below the 40 g CO2e/MJ threshold set by Portland's Renewable Fuel Standard, ensuring that our offerings not only comply with but also advance the city's environmental objectives.
As we navigate these changes, Diesel Direct remains committed to providing our customers with the most sustainable and environmentally friendly fuel options available in Portland and beyond. Together, we can drive towards a greener future, one gallon at a time. Click here to visit the Portlands official compliance guidelines: https://www.portland.gov/bps/climate-action/renewable-fuel-standard/rfs-compliance
