Wholesale purchaser-consumer

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

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

Wholesale purchaser-consumer (WPC) organizations, whether public or private, are covered by PCC Chapter 16.60. WPCs are required to register with the RFS program by May 1, 2024.

WPCs are required to meet three primary components of the RFS:

1. Biofuel Minimum Content Requirements,
2. Carbon Intensity standard,
3. Selecting a compliance option, and
4. Record keeping.

Biofuel content requirements

WPCs in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they purchase for their vehicle fleet. Beginning July 1, 2024, all diesel purchased must include 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 fleet facilities to see that they (1) have a contract in place with fuel suppliers that specifies that fuel meets the minimum blend requirements, or (2) verification of actual products purchased through testing or review of product transfer documents.

Carbon intensity standard

All WPCs 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 WPCs:

1. Product Transfer Documents. The easiest option for WPCs to comply with the carbon intensity standard is to procure fuels that meet the standard and only purchase compliant fuel products. In this case, the WPC has no reporting requirements and just needs to have (1) a contract with a fuel supplier specifying the carbon intensity requirements of PCC Chapter 16.60 or (2) 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 available for WPCs is if their fuel supplier is working with a fuel importer that will take responsibility for compliance under Book and Claim. This compliance option will allow WPCs 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 by a fuel importer to verify that on average fuels meet the Carbon Intensity Standard.

WPCs selecting this compliance option should work with their distributor(s) to connect with fuel importers about compliance with reporting requirements under Book and Claim.

Distributors or suppliers who opt to comply through book and claim on behalf of WPCs 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 memorandum of understanding among the parties is sufficient. More information about Book and Claim can be found on the Retailers page.

3. Delivered Fuel Summary. The third compliance option is a hybrid of the first two compliance options. Delivered fuel summary will allow WPCs, Distributors or nonretail dealers 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. WPCs must provide the location where the summary report will be held when selecting a compliance option. The location may be with the WPC, fuel distributor, or with a nonretail fuel dealer.

Summary reports must include the WPC’s fleet facility 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.

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

Selecting a compliance option

WPCs 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. WPCs 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 WPC or have a contract with a fuel supplier specifying the carbon intensity requirements of PCC Chapter 16.60.

All WPCs must keep records at their registered place of business of Product Transfer Documents or other documentation for each product purchased 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, WPCs 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, WPCs must inform BPS when selecting a compliance option.