The policy regulates the volume of low-carbon biofuels blended with gasoline and diesel fuel sold in the city of Portland. Its intent is to phase out petroleum diesel and replace it with 99% renewable fuels by 2030. Portland’s policy uniquely includes a carbon intensity standard that will ensure that more renewable fuels sold in Oregon will be lower carbon across their entire lifecycle.
BPS then worked with fuel industry stakeholders to develop a workable approach to administer the new requirements. BPS conducted stakeholder interviews and one-on-one meetings with a wide range of fuel industry stakeholders. BPS also held a public meeting on June 15, 2023, where the public was invited to ask questions and provide feedback through an online survey to inform the rulemaking process. In addition, on June 27, 2023, BPS provided notice to all stakeholders by email and posting on the program website of a 4-week public comment period.
BPS made no substantial changes to the public comment draft, simply clarifying the terms and process based on 13 public comments received and reviewed.
The newly adopted administrative rules maintain existing practices with regard the minimum biofuel blending requirements. This ensures that fuel retailers in Portland will sell these biofuel blends:
- 15% in 2024
- 50% in 2026
- 99% in 2030
This will deliver local benefits in terms of reduced local carbon emissions and improved air quality.
The new rules, which go into effect May 15, 2024, create two compliance pathways for the carbon intensity standard that are aligned with the approach of Oregon Clean Fuels program. The two different compliance pathways reflect the real-world complexities of renewable fuel supply chains and concerns about additional storage in the Critical Energy Infrastructure Hub, while ensuring that Portland’s policy drives more low carbon fuels into the Oregon market.
BPS anticipates that stakeholders will need additional clarification in the coming months and may issue written interpretations of how the code and rules apply in general or to specific circumstances. Staff welcome additional stakeholder feedback as we move forward with implementation.