Retailers and nonretail dealers

Read the Compliance Guidelines and Reporting overview, or visit these pages for more details:

1. Covered entities defined
2. Retailers and nonretail dealers (below)
3. Distributors and resellers, marketers or jobbers
4. Fuel terminal or fuel importer
5. Wholesale purchaser-consumer

Retailers and nonretail dealers must register with the RFS program by May 1, 2024.

There are three primary components of the RFS that apply to retailers:

1. Biofuel minimum content requirements,
2. Carbon intensity standard,
3. Selecting a compliance option, and
4. Record keeping.

Biofuel minimum content requirements

Retailers located in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they sell. Beginning July 1, 2024, all diesel fuel sold must include a minimum of 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on July 1, 2026, and 99% on July 1, 2030.

The biofuel content requirements will be enforced through random inspections of retail facilities to see that products advertised and sold onsite are compliant with PCC Chapter 16.60.

Carbon intensity standard

All retailers also need to be aware of the carbon intensity standard in PCC Chapter 16.60. All biodiesel and renewable diesel sold in the City of Portland must have a carbon intensity equal to or less than 40g CO2e/MJ as certified by DEQ’s Clean Fuels Program, approved carbon intensity values. Carbon intensity requirements apply to biofuel blendstock, not the final blended products, which may contain a portion of petroleum-based diesel fuel at a higher carbon intensity.

There are three compliance options available to retailers:

1. Product Transfer Documents. The easiest option for retailers to comply with the carbon intensity standard is to procure fuels that meet the standard and only sell compliant products. In this case, the retailer has no reporting requirements and just needs to maintain onsite a product transfer document from each fuel delivery showing a fuel pathway code issued by Oregon Department of Environmental Quality to confirm the CI value of the fuel purchased is equal to or less than 40g CO2e/MJ. These documents will need to be maintained on site in accordance with record keeping requirements shown below.

2. Book and claim. Another option is for retailers to participate in book and claim compliance. This compliance option will allow retailers to buy fuel at different CI values, such that on average, over the course of a calendar year, the fuels average at or below 40g CO2e/MJ. Book and claim compliance requires quarterly and annual reporting to the City in order to verify that on average fuels meet the carbon intensity standard.

Book and claim requires a fuel importer who will voluntarily report on behalf of one or more covered entities. Retailers in the City of Portland will need to work with their distributor(s) to connect with fuel importers about compliance under book and claim. Book and claim compliance was developed to align with the reporting requirements from Oregon’s Clean Fuels program (CFP). The CFP requires fuel importers to report to the state quarterly on the volume of fuels by CI that are imported into Oregon. As such, book and claim reports are due on the same schedule, 90 days after the end of the previous calendar quarter:

• June 30 for Q1;
• September 30 for Q2;
• January 10 for Q3 of the prior calendar year, and
• March 31 for Q4 of the prior calendar year.

Reports will be submitted on the program website with a simple reporting form and ability to upload documentation. Specifics on reported data can be found in Section 6.E.1 of the administrative rules.

Retailers who opt to comply through book and claim are required to submit a written agreement with a fuel importer who accepts responsibility for quarterly and annual compliance reporting on behalf of one or more covered entities. A memo of understanding among parties is sufficient. If the retailer sells fuel from multiple fuel importers, then they may need to execute multiple agreements. Written agreements must be executed before the start of the compliance period, July 1, 2024. At a minimum, written agreements must include:

1. A commitment to submit true, accurate and timely compliance reports to BPS, as required.
2. A clear understanding of how parties will manage audits and any issues of non-compliance.
3. A contact (including a full name and contact information) for each party who is authorized to respond to compliance and reporting issues.
4. Physical site addresses covered by the agreement where motor vehicle fuels are stored, transferred, or sold.
5. A signature from an individual from each party who is authorized to enter into agreements for their entity.

3. Delivered fuel summary. The third compliance option is a hybrid of the first two compliance options. Delivered fuel summary will allow retailers to directly comply with the carbon intensity standard without tracking fuel pathways codes on product transfer documents, quarterly reporting, nor needing a written agreement with a fuel importer. This option will also enable covered entities to average the carbon intensity over the quarter, like book and claim compliance. Delivered fuel summary allows covered entities to maintain a quarterly summary report of the fuel pathway codes (FPC) associated with each fuel delivery, in lieu of maintaining the FPC on a PTD from each delivery.

Quarterly summary reports must be maintained on site for inspection and must be completed on the same schedule as book and claim reporting – summaries must be available 90 days after the end of the previous calendar quarter:

• June 30 for Q1,
• September 30 for Q2,
• January 10 for Q3 of the prior calendar year, and
• March 31 for Q4 of the prior calendar year.

Covered entities must provide the location where the summary report will be held when selecting a compliance option.

All summary reports must be uploaded to the BPS website once annually, by March 31 for the prior calendar year.

Summary reports must include the retail location address, volume of diesel fuel delivered by date and the associated fuel pathway codes used for compliance. BPS will provide a template for the summary reports. There are two options that can be utilized to convey compliance under Delivered Fuel Summary Reporting:

1. CI averaging. The summary report must also include a calculation showing the weighted average of CI values by volume over the quarter.
2. Equivalent volume at compliant CI. The summary report must include a calculation showing that the volume of biofuel that meets the CI standard delivered in the quarter met or exceeded an equivalent volume as required by the standard as set by PCC Chapter 16.60. For example, in 2024, if 1,000 gallons was delivered over the quarter, 15% would need to meet the CI standard, or 150 gallons of fuel with a carbon intensity at or below 40g CO2e/MJ.

Selecting a compliance option

Retailers will need to select a compliance option by the start of the compliance period, July 1, 2024. BPS will provide notification about selecting compliance options by May 31, 2024. To receive notification, covered entities must be registered with the RFS Program.

Compliance option selection may be changed at any time during the compliance period after consulting with BPS. If a covered entity decides to change the compliance option during the compliance period, they are responsible for compliance under the new option for the full compliance period.

Record keeping requirements

PCC Chapter 16.60 and administrative rules requires that an invoice, bill of lading, shipping paper, or other documentation, referred to as “product transfer documents ” (PTD) must accompany each fuel delivery in the City of Portland. The administrative rules specify that:

1. PTDs must include the type of renewable fuel, including biodiesel, renewable diesel, ethanol, or any blends of these fuels, and declare the volume percent of such renewable fuel.
2. PTDs must comply with OAR 603-027-0430 (1) (a) which includes identifying the quantity, the name of the product, the name and address of the seller and buyer, and the date and time of the sale.
3. Retailers using the Product Transfer Document compliance pathway must also ensure that fuel pathway codes issued by Oregon Clean Fuels Program are also included on a PTD associated with each delivery received by the retailer.

All fuel retailers must keep records of Product Transfer Documents or other documentation for each product being sold at the person’s registered place of business for two years to comply with PCC Chapter 16.60 and administrative rules. If it is more efficient to store records in a central location, rather than at the registered place of business, retailers can choose a location for records storage in the Portland–Vancouver–Hillsboro Metropolitan Statistical Area. Records, excluding PTD, may also be stored electronically. To maintain records in a central location or electronically, retailers must inform BPS when selecting a compliance option.