Biodiesel

Biodiesel is a domestic, renewable and low CO2 fuel with benign tail pipe emissions. In the Pacific Northwest, B99 was the fuel of choice for dozens of fleets.

Close-up of diesel engine components and fuel system
Make And Keep Your Diesel Fuel A Lot More Clean 1024 768 Star Oilco

Make And Keep Your Diesel Fuel A Lot More Clean

                               Make And Keep Your Diesel Fuel A Lot More CleanClean, dry, premium diesel

What is Clean Diesel? 

Clean diesel is free of the contaminants that harm modern diesel engines. Today, there is a gap between ASTM diesel standards and the ISO cleanliness standards needed for use in high pressure common rail engines. Anyone operating a modern clean diesel engine is seeing the effect, including injector replacement, DPF regeneration, and a host of other fuel quality related maintenance concerns we never saw twenty years ago. On top of all of that, today’s refined diesel fuels are less storage stable than ever before. What is on the bottom of your bulk tank can also complicate matters further. When diesel is bought wholesale, it typically meets and exceeds ASTM required industry standards, but almost always requires additional filtration to avoid excessive engine wear and premature part failures.

Having clean diesel requires an additional amount of care. Namely, you need to make sure that the fuel is aggressively filtered at 4 microns to catch the microscopic particles that are big enough to damage your modern diesel engine’s high pressure fuel rail system. Furthermore, clean diesel is fuel that is free of water and stabilized with Premium Diesel to guarantee no bacteria, yeast and other creatures can grow and further contaminate the saddle tanks on your trucks.

For more on clean diesel, see Donaldson’s description of “The New Clean” for an in-depth explanation of what ISO cleanliness and filtration mean for your diesel fleet.

Making Diesel Cleaner!

Knowing the quality of your fuel is the first step. This is done by taking samples off of the bottom of your bulk storage, as well as a representative sample from your fuel dispenser. Lab tests of those samples will tell you if you have water, biological growth, or dirt issues with your storage. The contaminants in the tank being sampled are almost always visible, which is to say that they look horribly ugly. If your fuel quality assurance has been on autopilot, do not be surprised if you find this. After gathering knowledge about your fuel, the next step is to get your fuel quality clean.

Filtration and tank bottom sampling is the start. Beyond that, the only way to improve your fuel quality performance is to filter your fuel, ensure water is not getting into the tank through condensation, and additize it with a Premium Diesel additive to upgrade the performance of the fuel. Many fleets today are seeing injector wear and continual problems with particulate trap maintenance. This is a combination of water in fuel and microscopic particles not captured by a 10 or 30 micron filter used at most diesel dispensers. You have to filter more aggressively than this.

Clean, Dry, and Premium Diese

Where To Start?

The first step is sampling your bulk diesel tank. We check your bulk tank for water and dirt to make sure and meet the specifications your engine is built for. Star Oilco can help by providing a complementary diesel test for those fleets interested in taking control of their fuel quality assurance. Usually when testing fuel, we take a sample off of the tank bottom as well as a representative sample out of the fuel dispensing nozzle.

What we usually find is ASTM specification diesel fuel (it meets ASTM spec) that is higher than you’d want (still in spec) for water with far more dirt than the OEM’s would want to see in your engine. This dirt fails to be within the “ISO Cleanliness” specifications recommended by engine manufacturers. Usually, we also see water on the bottom of the fuel tank, which is a likely source for future or current biological growth in your fuel tank.

Star Oilco can help you fix this! The first step is to sample your fuel tank.

NOTE: If you have a current biological growth problem in your bulk fuel tank or fleet, your first step is to treat that effected fuel with a diesel microbiocide to kill the bugs growing in your tank. For more on this, see our Valvtect Plus 6 Diesel Microbiocide page.

Tank Testing Form

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Bio-diesel and Feed-stock samples at REG
What Types of Feedstock Can Be Used To Make Biodiesel? 700 525 Star Oilco

What Types of Feedstock Can Be Used To Make Biodiesel?

               What Types Of Feedstock Can Be Used To Make Biodiesel?

        To answer what feedstocks can be used to make biodiesel we need to first answer:  What is Biodiesel?

Biodiesel is created through a process called transesterification.  Transecterification is when an alcohol such as methanol or ethanol is added to an oil or fat.  This creates methyl esters and glycerin.  Methyl esters is the scientific name of Biodiesel.  Because biodiesel needs a fat or an oil to start with, this fuel can can be created with any number of feedstocks.  If you would like to learn more about Biodiesel check out this for more questions about biodiesel.

According to the U.S. Office of Energy Efficiency & Renewable Energy:

“A feedstock is defined as any renewable, biological material that can be used directly as a fuel, or converted to another form of fuel or energy product. Biomass feedstocks are the plant and algal materials used to derive fuels like ethanol, butanol, biodiesel, and other hydrocarbon fuels. Examples of biomass feedstocks include corn starch, sugarcane juice, crop residues  such as corn stover and sugarcane bagasse, purpose-grown grass crops, and woody plants. “

Renewable Energy Group (REG) performed a study in 2009 with the support of the Iowa Power Fund Board and the Iowa Office of Energy Independence that tested 36 individual feed-stocks.  Star Oilco will be spotlighting these feedstocks through our blog and our social media. The full report can be found on their site if you would like to read ahead or explore the results in more depth. We hope you find these as interesting as we did!

Bio-diesel and Feed-stock samples at REG

Above photo taken at REG headquarters in Ames, Iowa.

This first blog highlights the following 2 types of feed-stock:

                                                            Babussa Oil & Beef Tallow

Babassu Oil

Attalea speciosa

Babassu oil is extracted from the seeds of the babassu palm tree, Attalea speciosa, an evergreen tree growing to 30 m (98ft) by 20 m (65ft) at a slow rate. It is hardy to zone (UK) 10 and is not frost tender. The flowers are pollinated by bees and other insects. The tree is common in Brazil, Mexico, and Honduras; it grows well in areas typically cultivated for coconut or palm. The kernels contain 60-70% oil, appear transparent, and smell like walnuts. In its natural form the oil is liquid at 20-30°C (68 – 86°F). The seeds are edible and the oil is used in margarine, soaps, detergents, lamp oil and skin products. Oil extraction results in a cake containing 15-25% protein (depending on the shell content), which is a valuable feedstuff.

In February 2008, Babassu palm oil and coconut oil were blended with jet fuel to power a Virgin Atlantic Boeing 747 during a test flight from London’s Heathrow to Amsterdam.

Babassu oil is extracted from the seeds of the babassu palm treeBabassu Oil Chart

Beef Tallow

Tallow is a rendered form of the waste fats and greases from processing beef. Rendering is a process by which lipid material is separated from meat tissue and water under heat and pressure. Beef tallow is primarily made up of triglycerides and it is solid at room temperature. The B100 that is created from this source has a very high cloud point. “Cloud point is the temperature at which wax (paraffin) begins to separate when oil chilled to a low temperature, and it serves as an important indicator of practical performance in automotive applications in low temperatures.”  (Source)  The other uses for tallow include animal feed, soap, cooking and in the past, candles.

Beef Tallow Animal tissue is converted to tallow using rendering; a process by which lipid material is separated from meat tissue and water under heat and pressure.Beef Tallow Chart

 

Article 2 Feedstock : Borage Oil & Camelina Oil

Article 3 Feedstock : Algae Oil & Canola Oil.

Article 4 Feedstock : Castor Oil and Choice White Grease

Article 5 Feedstock : Coconut Oil and Coffee Oil

Article 6 Feedstock : Evening Primrose Oil and Fish Oil

Article 7 Feedstocks : Hemp Oil & High IV and Low IV Hepar

Article 8 Feedstocks : Jatropha Oil, Jojoba Oil, & Karania Oil

Article 9 Feedstocks : Lesquerella Oil & Linseed Oil

Article 10 Feedstocks – Moringa Oil & Neem Oil

Article 11 Feedstocks – Palm Oil & Perilla Seed Oil

Article 12 Feedstocks – Poultry Fat & Rice Bran Oil

Article 13 Feedstocks – Soybean Oil & Stillingia Oil

Article 14 Feedstocks – Sunflower Oil & Tung Oil

Person looking through binoculars in an autumn forest with vibrant fall colors reflected in both lenses, symbolizing focus on Oregon’s diesel and CO2 credit market conditions.
Fall Diesel Outlook for 2025 – the Oregon Market 1024 1024 Star Oilco

Fall Diesel Outlook for 2025 – the Oregon Market

What market forces are impacting the Oregon diesel outlook?

The US market is short diesel in storage while the Oregon market is short CO2 credits causing a unique market condition as we head into fall.

Diesel prices in the Pacific Northwest have not been following National trends for diesel.  The west coast is paying a premium compared to other nearby states.  Diesel in Oregon is significantly higher than the national average.  More to the point, the carbon credits associated with biodiesel and renewable diesel in Oregon are trading at recent record high prices. Higher than California’s CO2 credit prices. What’s going on?

Well for once it isn’t the price of crude oil causing this, or the amount of biofuels. Its all about todays Oregon diesel and carbon markets.  The story starts a few weeks before Memorial day.

Memorial day is often cited as the kick off to the driving season.  It also is when we usually see construction and trucking pick up with the summer weather.  A few weeks before Memorial day the Olympic pipeline went down unexpectedly.  The Olympic pipeline serves Portland and Eugene with their diesel and gasoline fuels from the refineries in northwest Washington state.

That pipeline had an unexpected outage.  Those happen for plenty of reasons usually safety checks or repairs. When the pipeline went down the market was notified it would probably be a week and open again the Monday before memorial day.  That Monday, the Monday before one of the bigger fuel weekends of the year, came and notice went out the pipeline would still be down for another week.

At that moment supply was already short for gas and diesel. Especially diesel.  The Portland and Eugene market saw diesel like a dollar cheaper in states like Idaho, Utah and others. So guess where diesel started flowing from? Markets responded as the bigger players on the ground in Oregon started moving diesel from those states.  Your local truck stops, gas stations, and cardlocks didn’t run out of fuel in several parts of Oregon because of these efforts.

In a US diesel market that was already tight for diesel supply, Portland, Oregon had an event that made it even tighter demanding diesel from around the region. Markets responded sending higher price offers to bring diesel into Oregon. Source is US EIA.

Oregon does not have any petroleum refineries or even biofuel plants.  It can only be supplied by pipeline, barge, rail or truck from outside the state.  When the pipeline came back online quite a bit of outside diesel had flowed into the state from nontraditional sources by rail and truck.

The people who moved that diesel are regulated in Oregon with two programs for CO2 emissions.  One is called the Clean Fuels Program which requires anyone importing diesel into Oregon to come up with a CO2 reductions by either blending low carbon biofuels or buying CO2 credits from others that use those fuels in the state.  Oregon also has a Cap and Invest program which only allows so much fossil fuel to be sold inside Oregon in a calendar year.  Oregon caps the total market for fossil fuels sold at retail stations as part of it’s carbon reducing strategy.

Guess what happens when a bunch of suppliers start bringing in gas and diesel to meet the market need?  They have to come up with Carbon credits and allowances to meet those carbon reduction programs for liquid fuels.  When unexpected volumes of diesel get imported into Oregon the CO2 market dynamics change.

For diesel, they need to start blending biofuels such as renewable diesel and biodiesel.  So since that Memorial Day pipeline outage the people who imported diesel from other states need CO2 credits under Oregon Clean Fuels Program as well as to ensure they done sell to many additional gallons of fossil fuel diesel to exceed the allowance of Oregon’s cap and invest regime.

Therefore CO2 credits are high, people are trying to blend more biofuels to catch up to the unexpected volumes of diesel they moved into Oregon.  Prices are higher than the rest of the US for diesel as a hangover to the supply disruption.

Upside for the first summer in a few years there is plenty of Renewable Diesel in the Portland, Oregon market as the CO2 credit prices are higher than California and the diesel prices are also high to help.  In the last month we have seen a huge amount of Renewable Diesel show up into the terminals in Portland.  So hopefully we will see lower prices heading into fall as all this works itself out.  As we pass by Labor Day the market cost of diesel should normalize and return to a much more affordable price.

The one downside of high diesel prices is that it makes Renewable Diesel the same price as fossil diesel.  If you want to try it, now is a good time where you can get it affordably and field test it for results with your fleet.  Want to see how it performs in reducing truck regens, EGR services, and see if fuel economy improves with a cleaner burning synthetic diesel running in your fleet.  This fall is a good time to experiment with it.

If you want to try Renewable Diesel in your fleet.  Star Oilco has it immediately available.  Please reach out to give it a try at either our Cardlock locations, with Mobile Onsite Refueling in your yard, or a Loaner Bulk Tank trial of the fuel in a few trucks.

Star Oilco has Renewable Diesel seven days a week for your fleet: Mobile Onsite Fueling, Cardlock, and Bulk Delivery.
Call us at 503-283-1256 or email at OrderDesk@StarOilco.net.

Renewable Diesel in Oregon

Industrial backup generator installed outside a commercial building
Emergency Back-up Diesel Fuel 1024 683 Star Oilco

Emergency Back-up Diesel Fuel

In an emergency, how often will your Emergency Back-up Diesel Fuel tank need to be filled?

We deliver dyed diesel seven days a week and will keep your equipment full for you.

Emergency Back-up diesel fuel delivered in Portland, Oregon

What is the condition of your Emergency Back-up Diesel Fuel in your generator tank?
When the Power goes out, we have diesel ready to keep your backup generator fueled.  We can also set up automatic fueling and DEF top off service with confirmation for your facility team’s needs. Whether you want long term stabilized diesel, dyed R99 renewable diesel, or B20 biodiesel blends we have you covered with your fuel specification needs.

Emergency Back-up diesel fuel tank avaialble.

Star Oilco has 250 gallon and 500 gallon tanks available to increase the onsite supply for an emergency back-up diesel need in the Pacific Northwest.

We have drivers on the road today with diesel.

When was the last time you had your generator filled with stabilized diesel?  We deliver off road diesel treated for long term storage.

Open an account with Star Oilco today and prepare for the next power outage.

Recent heat waves might have caused power outages.  Make sure your generators are full for this winter now.  With dynamic changes in the way power is used in the Pacific Northwest power outages have become more common than ever before.

 

Are you prepared for the next emergency?
Have you filled up since the last time?
Would you want to test your diesel fuel oxidative stability to make sure it is still good?

Keeping your back-up generator fueled could be the difference between an inconvenience and a disaster.  Stay ahead of the next emergency and re-fuel now.

 

Remember that ordering diesel for your generator is a specialized service, we will make it easy for you.

Getting the fuel for your generator or emergency equipment is only one part of the problem.  How you store it can be just as important.  This is why its important to work with a company that can help you.

You want to stabilize and treat your diesel for generators and other back up equipment.

Order fuel treated for long term storage!

Star Oilco is an expert at fueling back-up generators, emergency water pumps, and other long term off-road diesel storage requirements. We understand, that in the Pacific Northwest, biodiesel blending is required by state laws. Biodiesel needs an extra layer of care when stored as a back-up diesel fuel.Filling a Generator in the Snow

Most off-road diesels and heating oils are ultra-low sulfur diesel containing at least 5% quantity of biodiesel.  This means long term storage requires a proactive approach.  You can’t just hope it works or wait to see if the fuel will burn after years of storage.

Emergency back-up generator diesel fuel is a specially treated oxidative stabilized off-road fuel designed to store for years.

Fueling a backup generator is a specialized product. The fueling service requires a vendor who understands your needs and keeps you up and running in an emergency.

Generators take off-road diesel, of course, but you want an ultra-low sulfur diesel to ensure it works with modern emission systems. Some companies deliver higher sulfur product that look the same but foul the emission systems of your equipment.

Beyond the service provided, you also want a vendor who offers a fuel stabilizer and biocide for the special long term storage needs of your backup generator. Star Oilco recommends you add a biocide and long-term storage stabilizer to your fuel to ensure it is good whenever you need it.

Use additives designed to prolong the life of your emergency diesel fuel.

Biocides prevent the growth of biological activity in the tank. In scenarios where micro-organisms like algae, bacteria, yeasts, and other bugs are growing in your fuel, biocides kill this growth. It is still important to remove the residual grit and other contaminants that are the hallmark of bugs growing in your tank. Usually, turning over the fuel or using a filtration can remove this.

If your tank absolutely has to be clean, you can contract a tank professional to enter the tank and physically clean the tank bottom or reline the tank with either fiberglass or an epoxy resin. We use Valvtect Bioguard Plus 6 for generators, emergency water pumps, backup boiler fuel, and other long term storage purposes. This product kills any existing biological growth and stabilizes your fresh diesel fuel for long term storage. Make sure your diesel is ready the next time you need backup power.

Water in diesel destroys fuel quality rapidly.

Check your tank for water every fall and spring.

Pumping the tank bottom removes water if it ever finds its way into your storage tank. Additionally, you want to put in an absorbent material designed to absorb water and not fuel. If your long-term storage tank has water and you are not planning to burn 100% of the fuel in the near future, DO NOT add anything that removes water by distributing into the fuel. Adding a “fuel drier” that actually pushes the water into solution with the diesel will worsen the long-term quality of your fuel, not improve it. That water is where bugs find their home to grow in fuel.

Star Oilco will test your fuel at no charge if you have an open account.

Feel free to call us with any questions you may have about long term storage of diesel. Star Oil can also deliver treated diesel ready for long term storage complete with Premium Diesel additive to improve the long-term storage quality of your fuel. For biocide, we use Valvtect BioGuard fuel microbiocide to kill any possible biological activity and prevent any chance of it starting.

Diesel Testing and Storage in Portland

If you have a long-term diesel storage tank and you are in the Portland, Oregon area, we are here to test your fuel.  Make sure your diesel is there for you when disaster strikes.

Tank Testing Form

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For more reading on diesel fuel quality assurance:

Fight Humbug in your Diesel Tank (using Valvtect Bioguard Plus 6 to stabilize your stored diesel)

Emergency Back Up Generator Fuel Quality (designed to provide a checklist to help Facility Managers keep those backup generators ready for emergency action)

Using Dessicant Breathers to keep diesel fuel dry and clean (an introductory primer on desiccant breathers and how they can be used to keep long term diesel storage drier and cleaner)

Using Diesel Filters to clean up your diesel fuel quality (an introductory primer on using aggressive filtration in line with diesel fuel dispensing for fuel quality assurance)

Yellow diesel backup generator for emergency power
Fuel Quality In An Emergency Back-Up Generator Matters – Find Out Why 1024 683 Star Oilco

Fuel Quality In An Emergency Back-Up Generator Matters – Find Out Why

                      Emergency Back Up Generator Diesel Fuel Quality

The fuel in your generator is the single most overlooked item in maintaining a back up generator.  Be prepared and know your back up generator diesel fuel quality is ready with these best practices.

When the power goes out, don’t let a decade old tank of diesel be your weak link.

 

Diesel Generator Fueling Service

As a provider of back up generator fueling services we know how critical fuel is in an emergency.

Back up generators are everywhere when you start looking for them.  Rarely needed but when a storm or disaster strikes their failure to fire will be extremely conspicuous. In the Pacific Northwest where resilience planning around a major subduction zone earthquake is a monthly subject of talk.  Back up diesel will be the only immediately power source after a quake.  Diesel generators are taking center stage for emergency preparedness, placing those who maintain them in some high level policy discussions.

Avoid a double emergency when the back up power isn’t there for your need by focusing on the diesel fuel quality.

The worst case scenario for fuel quality is water getting into your diesel fuel reservoir as well as biological growth occurring in that water logged diesel. If water is present in diesel, and that diesel is in a warm dark place, bacteria will start growing in your tank. So first preventive step is watch for water.  The most likely problem with fuel you will see is the fuel aging and degrading in place over years of not being used.  That can be addressed with your routine maintenance on the tank.

CIM-TEK water absorber

NOTE: To get a small amount of water or to ensure a dryer tank of fuel, CIM TEK makes a Tank Dryer which absorbs a small amount of water in a tank. Handy similar to adding a desiccant into a closet with a slight condensation issue. 

Back up power generator diesel fuel quality.

The big rule for storing back up generator fuel is to make sure the diesel you use is clean and dry.

First ensure you are testing the generator by running it once a month.  Move fuel through the system and ensure the generator is starting right up. Run the generator for a while to use up fuel and be prepared to order a regular top off when you get below 3/4th of a tank. When checking the fluids on the generator prior to start up see if the fuel filter has a visual transparent bottom where you can see what the fuel looks like there. If it looks like dirty fuel or there is evidence of water take notice.  After cycling the generator take a peek and make sure the fuel it’s pulling into the generator is bright (not dark and degraded).  If you are seeing any water (even a small drop) that is an indication of real concerns.

If you are using up half a tank a year and adding to it, the fuel quality will usually stay within specification.  If you have worries the easiest way is to just start over. With older generators sometimes it’s a good idea to just evacuate the tank (empty all the older diesel fuel) and replace it with fresh diesel treated and stabilized for long term storage.

Most back up generators are seeing routine annual maintenance where the mechanical needs of the equipment are walked through. If this is occurring ask for a bottom sample from the back up generators fuel tank. Also ask to see what the fuel in the bottom of the fuel filter (assuming they are changing that) would give an indication if problems might exist deep in the fuel tank.

Back Up Diesel Generator Fuel Service

Sampling and Onsite Testing of Fuel from Generator Diesel Tank:

  1. Pull sample from tank bottom
    1. Use a professional “Bacon-Bomb Sampler” (google it to see one) or a small fuel transfer pump available at any auto parts store.
  2. Visually inspect it by swirling it in a beaker or mason jar.
    • Look for water and dirt fall out as you swirl.  If you see a few drops of water form you’ve got a water problem. If you are seeing coffee ground type material in the fuel, that’s biological growth. If an algal or gunk type slime appears, that’s also biological growth.
    • If clear like cranberry juice and bright – your fuel is in good shape.  If a darker cherry color yet still clear, your fuel is aging and you should consider swapping or burning fuel off in the next year.
  3. If fuel is dark in color (showing that it is aging in the tank) you can send that sample to a lab to test it. You want to ensure you are confirming the following:
    • Oxidation Stability (or Accelerated Stability)
    • Water Content in PPM (under 50 PPM is what you want, under 100 PPM is not uncommon, and over 100 PPM there is probably water in the fuel and you want to pursue remedial action.)
    • Make sure the fuel testing lab you are using (your current fuel vendor should have a recommendation or do it for free for you) is checking for:
      • oxidative stability (if it’s aging out of specification),
      • biological growth (if bugs are growing in it),
      • water content (indicating a puddle someplace in the tank causing higher water content in the fuel) and,
      • dirt content of the fuel (if there is dirt, there is probably biological growth or some other problem).
  4. Set aside sample in a warm dark place for a month and check it for biological growth occurring which will confirm if you have fuel growing inside the tank.
    • How to test diesel for biological growth In-House:
      • Take your sample that appears to be in great condition and set it aside in a warm dark place for a month (day light kills most biological growth in fuel, though day light ages your diesel in other ways).
      • When you come back to look at the sample, if a film or layer of darker color is appearing in the fuel, this is biological growth occurring.
      • If you see nothing and want to experiment further, add a slight amount of water to this sample, shake it up, and put it back in a warm dark place.
      • When you check back if there is a a new layer of darker color on the surface of where the water contacts the fuel, that’s what grows in your tank.
      • If nothing grows, your fuel is safely stabilized for storage this year. Even if water is finding its way into your fuel tank, the fuel is safe and will be ready to start.
        • NOTE: Do not leave water in your tank, even if the fuel looks good. Eventually it will be a major problem and something will grow. If you are putting biocide in your tank regularly and their is an environment for growth, something resistant to that biocide will take root and you WILL NOT be able to get it out of the tank without serious effort.

NOTE: If you are curious to see a fuel lab analysis of the diesel this is an example.  This is a lab analysis from Hydrotex, Star Oilco’s premium diesel additive provider.  They are very supportive in testing everything we send them for quality assurance. 

 

Do you have questions about generator diesel fuel storage?

If you have questions about fuel storage, Star Oilco has answers.  Star Oilco does not do tank cleaning, we still will help you figure out what you need to do in order to have the result you need.

Contact Form

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For more on Diesel Fuel Quality Assurance please see these other Star Oilco articles:

Desiccant breathers, dry diesel, and keeping your diesel fuel clean.

Every question Star Oilco has been asked about dyed diesel.

Keep and make your diesel fuel cleaner. 

Bioguard Plus 6, Kill and prevent biological growth in your diesel fuel storage tank.

 

Welcome to Oregon road sign on a forested highway
The Next Generation Of Diesel – Bio Diesel 1024 683 Star Oilco

The Next Generation Of Diesel – Bio Diesel

B99 and R99 Biofuels are the alternatives to petroleum diesel in Oregon

Oregon bans the sale of petroleum diesel, a rapid transition to biofuels such as renewable diesel and biodiesel are happening.

 

Oregon HB3305 explained

 

 

HB 3305 Petroleum Diesel ban

In Oregon, HB3305 is a House Bill proposed by Representative Karin Power outlaws the sales of petroleum diesel to the public for use in motor vehicles.  HB3305 quoted below:

“Prohibits retail dealer, nonretail dealer or wholesale dealer from selling petroleum diesel for use in motor vehicle on or after specified dates. Requires public improvement contract to require that motor vehicles be powered by fuel other than petroleum diesel. Prohibits public body from using petroleum diesel in motor vehicle under control of public body”

The full text of the current version of HB3305 can be seen here.

HB 3305 mandates non-petroleum diesel be the only legal fuel for sale to diesel powered motor vehicles in Oregon.

Star Oilco has customers ask about this proposal and how real it is?  In Oregon the focus on low CO2 fuels in the legislature is so consistent we can expect this to not go away.  Even if HB 3305 does not move this Legislative session, this will not be the last of biofuel mandates.  For this reason Star Oilco has been working to be ahead of the curve with non-petroleum diesel substitutes. Star Oilco has been selling B99 biodiesel since 2002 and renewable diesel since 2015.  If your fleet has an interest in learning more about low CO2 fuels or try these fuels, Star Oilco is ready to serve you with both R99 renewable diesel and B99 biodiesel.

News coverage of Oregon HB 3305 is below

The Center Square’s Oregon, whose coverage of this has been syndicated to many other online news organizations, lead with the headline: Bill in the Oregon Legislature would ban diesel fuel sales by end of decade.

CDL Life had this to say: The bill would begin to ban the sale of “petroleum” diesel by “non-retail dealers” as soon as 2024 in Clackamas, Washington or Multnomah counties and state-wide by 2027.

Landline as well has following the story: Oregon bill would ban petroleum diesel. Later in the article they add this to the background of HB 3305’s origin: Power said in a statement that her goal is to phase out petroleum-based diesel and replace it with renewable diesel. She says she introduced the bill on behalf of Titan Freight, a local trucking company she says has already transitioned to renewable diesel.

KXL covered this local news quoting Oregon State Representative Shelly Boshart-Davis, a legislator who owns a trucking company and actually buys quite a bit of petroleum diesel.

Lars Larson radio interviews Rep. Shelly Boshart-Davis about HB 3305.

KQEN news radio in Douglas County also covered it with the headline: GOP says supermajority declares war on working class.

The Wildcoast Compass covered the story quoting Rep.Vikki Breese-Iverson (R-Prineville): “There is absolutely no way we can implement this legislation in accordance to these timelines without extreme disruption to Oregonians’ daily lives and the obliteration of our economy as we know it,” 

Oregon Public Broadcasting covered HB 3305 a few days after the bill dropped which might be an indication it’s moving forward. From the story: One bill, House Bill 3305, would set a staggered timeline for ending sales of diesel in the state — first in the Portland area, then throughout Oregon. Its backers hope to spur widespread use of “renewable diesel,” a product with far lower emissions that can be used in any diesel engine. They say the fuel could be an important and near-instant way for the state to cut into greenhouse gas emissions while other technologies emerge.

The Banks Post covered HB 3305 as well with the headline: Diesel fuel under fire in Oregon legislature.

What HB 3305 means in the real world?

HB 3305 means the petroleum diesel used by any commercial vehicles operated on Oregon’s highways will be replaced with biofuels.

Biofuels will replace on-road petroleum diesel at all Oregon:

  • Retail gas stations
  • Trucks stops
  • Commercial cardlocks (Pacific Pride and CFN)
  • Privately owned bulk tanks
  • Mobile on-site fueling (wet hose fueling), and
  • All other bulk deliveries of diesel fuel. Star Oilco wanted to provide more background of what this law would mean for Oregon.  We hope this provides in depth information about what the options are for diesel fuels and a whole host of background information.  The news coverage so far fails to really provide this depth and background for those with concerns.  If you have questions, please do not hesitate to ask. Star Oilco seeks to be a neutral and accurate source of information.

Star Oilco sells renewable diesel in bulk and by our mobile on-site fueling service. It is worth mentioning from our first hand experience that users of it become raving fans.  Renewable diesel is a new fuel that many believe out performs petroleum diesel in every way. Many customers who have used it experienced improvements in horse power, fuel economy, and emission regeneration system performance.

Currently renewable diesel is in extreme high demand, limited production, and commands a high premium over petroleum diesel with few sources of supply.  Renewable diesel has some major backers in the trucking industry as well as OEMs.  As the availability of this next generation fuel grows, the number of plants manufacturing it expands, and it’s price comes down, this type of law may make far more sense.

If petroleum diesel is no longer legal for sale in Oregon, what does that mean diesel vehicles will use?

There are two immediately available diesel rated biofuels that can replace petroleum diesel.  These are two very different fuels. Renewable Diesel and Biodiesel have differences in their properties.  So please don’t confuse biodiesel and renewable diesel as the same fuels.

Biodiesel and Renewable Diesel are very different fuels.

Biodiesel is a proven and longtime available fuel in Oregon.   Biodiesel is not actually a hydrocarbon diesel though, it is a diesel like biofuel made from vegetable oil usually sold in a 5% to 20% blend with petroleum diesel. It is not recommended to run pure biodiesel in late model diesel engines if they have a particulate trap.  This differs from Renewable Diesel which is a next generation synthetic hydrocarbon diesel made from various feedstocks including vegetable oil.  It is actually diesel, it can be used as a pure drop in fuel without any blending with petroleum diesel.

What are non-petroleum diesel fuels?

Oregon HB 3305

Biodiesel or B99 (99% Biodiesel + 1% Petroleum Diesel)

Renewable Diesel or R99 (99% Renewable Diesel + 1% Petroleum Diesel)

Blends of Biodiesel and Renewable Diesel (branded REG UltraClean Diesel)

HB3305 allows for biofuels in replacement for diesel.  We assume that change would be from a current Oregon fuel mandates of B5 or R5 biofuel diesel blend to a B99 or R99 mandated fuel.  Oregon’s biofuel content law can be read at ORS 646.922 and we can assume this would change that to a 99% mandate. Why 99% instead of 100%, that is a good question relating to Federal regulation of the US diesel and gasoline markets.

 

Why does this require a 99% blend (B99/R99) instead of 100% biofuel?

The reason biodiesel and renewable diesel are sold at a 99% blend is because of Federal rules associated with how petroleum companies must handle these fuels.  For this fuel to be used under the US EPA’s Renewable Fuel Standard program biodiesel and renewable diesel must be blended at a minimum 1%.  When fuel is blended at 1% with diesel, the EPA enables it to generate a “Renewable Identification Number” or “RIN” which is regulated to ensure a minimum amount of biofuels is used in the stream of commerce for fuel in the United States.  This Federal program is separate and unrelated to any program in Oregon, though the law recognizes and seeks to align with the framework created by the EPA.

What are the fuels HB 3305 allows to be used by diesel motor vehicles?

The two fuels immediately available if are B99 Biodiesel and R99 Renewable Diesel.

Both of these fuels exist today but have their own drawbacks.  In a nutshell, B99 is not a drop in substitute for petroleum diesel.  It is recommended to be blended at 20% with petroleum diesel (NOTE: B99 biodiesel can be used in modern diesel with an up-fit kit provided by Optimus Technologies).  On the upside, biodiesel is plentiful and competitive with petroleum diesel in cost.  If HB 3305 passed though this plentiful fuel wouldn’t be a ready substitute beyond a 20% blend with renewable diesel or with mechanical changes to existing trucks.  Contrast this with  R99 renewable diesel as a drop in ready to go substitute for petroleum diesel.  It is ready to use without blending, but has the downside of being in short supply and at a cost premium above petroleum diesel.

If Oregon’s over 2,000,000 gallons of diesel usage a day (or 750+ million gallons a year) was mandated to renewable diesel no doubt that premium would probably exceed $2 a gallon over petroleum diesel given R99’s lack of ready additional supply.  This $5 a gallon presumes that Oregon would have to pay more for the existing renewable diesel supply finding it’s way to California with several dollars a gallon of value paid for it’s lower CO2 baseline value.  California has a Clean Fuel Standard and a CO2 Cap and Trade program which provide a monetary value for renewable diesel’s lower CO2 numbers.  Oregon has a Clean Fuel Program as well, but it’s program does not pay as much for low CO2 fuels as California, making low CO2 fuels such as renewable diesel more expensive in Oregon.

B99 Biodiesel in depth.

Blends of biodiesel below 20% are extremely common in Oregon.  All fuel must contain at least 5% biodiesel content and many retail outlets, cardlocks, and major truck stops commonly sell a 10% to 20% blend of biodiesel around the state.

Biodiesel is a diesel like fuel manufactured by a chemical reaction called transesterfication, typically from vegetable oil or recycled cooking oil.  It is made by a relatively simple process and biodiesel has been a proven fuel in use in Oregon for nearly twenty years.  Star Oilco started handling and selling biodiesel in 2002.  Prior to 2007, B99 was commonly used by many commercial fleets due to it’s huge reductions in tail pipe emissions.  Vehicles manufactured after 2007, are clean diesels.  The US EPA required new clean diesel emissions systems which are impressive in their ability to make modern diesel engines extremely clean, but they can only handle biodiesel blends below B20 or 20% biodiesel unless an upgraded system is added.

Today B99 is a possible fuel for a modern clean diesel fleet with an upgrade to existing vehicle fuel supply system.  Optimus Technologies has an approved technology to enable a modern diesel aftertreatment system to operate without problems on B99.   Star Oilco has purchased five of these systems and is currently fielding them in the Pacific NW.  We expect these systems to be mainstream in coming years, but just like Renewable Diesel the technology is newly available and scaling up.

For more information about biodiesel please see our biodiesel FAQ titled Every question Star Oilco has been asked about biodiesel.

If you are interested in using biodiesel in your fleet, you can contact Star Oilco with questions or if you want to start researching we highly recommend starting with this US Department of Energy handbook titled Biodiesel Use and Handling.

 

R99 Renewable Diesel in depth.

Renewable Diesel is a next generation biofuel made from fats, oils, and greases. It is not an alternative diesel, renewable diesel is a petroleum free hydrocarbon diesel fuel. It is diesel! Renewable diesel not only less than half the CO2 of diesel refined from petroleum fuel, but it is cleaner burning and has shown evidence of reducing the cost of maintenance in fleets using it. Renewable diesel is a profound technology which has the potential to use the lowest grade trap greases, sewer materials, rendering wastes, municipal garbage, and a host of other refuse products making them into this high performance, sustainable, low CO2 diesel.

There are two categories of technology that renewable diesel is made from.  Hydrogenation and Fischer Tropsch process.

Renewable Diesel from Hydrogenation or Hydrotreating

Hydrogenation derived renewable diesel is very similar in manufacture to modern petroleum diesel in that the molecules of a the feedstock is cracked and reformed in the presence of a catalyst to form a very specific series of hydrocarbon molecules.  These being diesel and propane range fuels. The feedstocks used by renewable diesel plants are vegetable oils and animal fats.

The hydrotreating plants providing renewable diesel to Oregon currently are Neste from a plant in Indonesia, Diamond Green (in a joint venture with Valero), Sinclair, and Renewable Energy Group. All of these plants are over subscribed and 100% of their production is being taken at a premium primarily by the California low CO2 fuels market.   There are several new renewable diesel plants under way though.  Holly Frontier, Marathon, CVR Energy, and Phillips 66 are converting existing petroleum refineries into renewable diesel plants.  This process costs billions of dollars, will take years to complete, and also will be likely destined for California’s low CO2 fuel market with smaller markets like Oregon being an afterthought.

Renewable Diesel from Fischer Tropsch process.

Currently there are a number of smaller demonstration facilities making renewable diesel from wood waste and other feedstocks.  The largest proposed project currently on the books is Illinois Clean Fuels which will be collocated with major CO2 capture facility making their product negative CO2.  Fischer Tropsch renewable diesel is expected to be the future of refining given it’s flexibility of feedstock.  It’s process enables the use of municipal garbage, agricultural waste, woody biomass, and other low value plentiful materials as feedstock.  Given that the United States is called by some the “Saudi Arabia of garbage” we have plenty of supply waiting for a higher and better use as low CO2 transportation fuel.  Illinois Clean Fuels has a great explanation of how Fischer Tropsch makes renewable diesel and jet fuels.

Where can you get Renewable Diesel in Oregon?

Star Oilco currently is selling R99 Renewable Diesel for commercial use.  We can deliver to fleets seeking it in bulk or mobile onsite delivery (wet hose R99 diesel service began in the Spring of 2021).  Call Star Oilco if you have an interest in Renewable Diesel for your fleet 503-283-1256.

If you have questions about renewable diesel, Star Oilco wants to provide answers.  Feel free to reach out if we do not have the answer we will research it.

For more information about renewable diesel please see our renewable diesel FAQ titled Every question Star Oilco has been asked about Renewable Diesel.

 

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Star Oilco’s Commitment to Sustainability

Star Oilco’s Commitment to Sustainability

What is biodiesel? Is it the same as raw vegetable oil?

Biodiesel is a cleaner burning diesel fuel made from vegetable oil. Simply stated, a biodiesel molecule is a                                                              vegetable oil molecule with the glycerol removed. Chemically, biodiesel is defined as a mono-alkyl ester of                                                           vegetable oil.

Biodiesel is NOT the same as raw vegetable oil or straight vegetable oil (SVO). Diesel engines actually can                                                             operate on straight vegetable oil (SVO) as a fuel. In fact, Rudolf Diesel’s first compression ignition (Diesel)                                                            engine introduced in 1895 used peanut oil as its fuel. Modern diesel equipment, however, requires some                                                          modification to burn straight vegetable oil, and it is yet unclear the effects of straight vegetable oil on diesel                                                         engine performance and longevity.

Will biodiesel void my engine warranty?

According to the National Renewable Energy Laboratory, “Original Engine Manufactures (OEM) provide a material and workmanship warranty on their products. Such warranties do not cover damage caused by external conditions, such as fuel. Thus, if an engine using biodiesel experiences a failure unrelated to the biodiesel use, it MUST be covered by the OEM’s warranty. Federal law prohibits the voiding of a warranty just because biodiesel was used – it has to be the cause of the failure. If an engine experiences a failure caused by biodiesel (or any other external condition, such as bad diesel fuel), it will not be covered by the OEM’s warranty.”

Star Oilco distributes only commercially produced biodiesel that meets ASTM D6751-03 specification – a demanding fuel testing regimen that guarantees the fuel will perform properly in your engine.

Biodiesel is considered an additive in blends less than 6% (B5). Petroleum diesel with 5% biodiesel added still meets ASTM specifications for #2 petroleum diesel fuel. The National Renewable Energy Laboratory and numerous states and federal fleets, including all branches of the U.S. Military, have performed more than 40 million miles of road testing on B20. The results of which have only been positive.

Fleets such as Yellowstone National Park and the City of Berkeley (CA) Solid Waste Management Division have had great success running diesel vehicles on pur biodiesel (B100).

Does biodiesel cost more than petroleum diesel?

Yes. The current retail price for on road B99 is $3.29 per gallon. Our customers pay a premium for biodiesel to support domestic energy sources and because of environmental concerns. Many biodiesel users experience a lower maintenance cost when they use biodiesel.

Can I use Oregon produced biodiesel?

Yes! In fact, the biodiesel you purchase through Star Oilco is produced right here in Oregon! Sequential Biofuels opened their first plant in Salem, OR in July 2005. This plant will produce 1 million gallons of biodiesel annually from waste vegetable oil. Oil sources include the Salem Kettle Chips plant. Country singer Willie Nelson is an investor in the effort.

Does biodiesel provide similar miles per gallon, torque, and horsepower?

In terms of energy contained in the fuel, a gallon of biodiesel contains slightly less energy than a gallon of petroleum diesel. For example, B20 tends to reduce fuel economy by approximately 1%. B20 users rarely report changes in torque or power. With B100, torque, power and fuel economy can be reduced by approximately 8%. However, the increased lubricity of biodiesel may help to counteract this energy difference. Some drivers report better performance with biodiesel, but most do not notice any difference.

Can I switch back and forth between diesel and biodiesel?

Yes! Biodiesel is the ultimate flexible fuel, so you can switch back and forth between biodiesel and petroleum diesel whenever necessary. Also, you can blend biodiesel with petroleum diesel in any percentage.

Is biodiesel safe to handle?

Yes! Biodiesel is ten times less toxic than table salt and biodegrades faster than sugar. The EPA has tested biodiesel’s health effects extensively and has classified it as a non-toxic substance that poses absolutely no threat to human health. Biodiesel is such a clean fuel that it is used to remediate petroleum spills in water.

Can I use biodiesel in an oil furnace (to heat my home)?

Yes! Biodiesel can be used in any diesel application. Oil #2 is the primary heating oil sold in the U.S. It is essentially the same as the diesel sold at gas stations, but contains much more of the pollutant sulfur. Sulfur contributes to acid rain formation, as well as the creation of nitrous oxides and particulate matter, both of which have serious air quality and human health impacts.

Biodiesel is just as warm as regular heating oil, but will help keep both the furnace and the air cleaner. It reduces the oily smell of the liquid fuel and makes the exhaust coming from the chimney smell better – a little like French fries. Pure biodiesel is biodegradable, and it is far less toxic than diesel. With a higher flash point, it is also less of a fire hazard. Biodiesel reduces emissions of cancer-causing compounds by up to 50%, and emissions of nitrogen oxides, particulate matter and hydrocarbons by approximately 20%.

Do I have to modify my furnace to use biodiesel?

No. B20 requires no modification to your heating system. However, biodiesel is a solvent, and will actually clean heating oil tanks and all fuel-wetted parts of a furnace. Because of this, users may experience clogging of the furnace fuel filter early on. Fuel filters are cheap and easy to replace, and the problem will end once the system is cleaned out.

If your heating oil tank is outside and/or underground,Star Oilco will only deliver B20 home heating oil. If your heating oil tank is located inside and above ground, Star Oilco will deliver B20 or B99.

Can biodiesel replace petroleum diesel?

For most of the 20th century, petroleum diesel has been consumed as though it would last forever. Experts disagree about how much petroleum is left and how long it will last. They do agree, however, that less new oil will be found and that prices will increase. Because biodiesel is “home-grown”, it provides energy security. Biodiesel can be produced on a yearly cycle, instead of a 10-million-year-cycle. While we can not displace all petroleum with renewable fuels, it is one important piece of reducing our dependence on foreign oil.

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Diesel Backup Tanks – Treating and Refilling 1024 768 Star Oilco

Diesel Backup Tanks – Treating and Refilling

Here’s good advice if you are relying on diesel as a back up fuel in the Pacific NW.

Now is the time to refill and treat your back up fuel tanks.

Diesel as a back up fuel

Quite a bit of our business at Star Oilco is fueling back-up generators, emergency water pumps, refrigerated trailers and other long term off-road diesel storage requirements. In the Pacific Northwest, biodiesel blending is required by state laws and you need to take an extra duty of care when storing diesel as a back-up fuel.

This means that most off-road diesels and heating oils are ultra low sulfur diesel containing a small quantity of biodiesel.  That means long term storage requires a proactive approach.  You can’t just hope and wait to see what the fuel begins to look after years of storage.

Technical advice from Government Fleet Magazine to help you with storing diesel fuel.

Here is an article from Government Fleet Magazine on the subject which runs through the specifics of long term storage and what causes fuel to degrade when stored.  Government Fleet Magazine – How to Maintain Stored Diesel Fuel.

Star Oilco has also worked up a PDF check list on how to verify if your fuel is in need of freshening or is still in emergency ready shape.  If you are a customer of ours, we will deliver a laminated card version to keep next to your back up generator. If you are not a customer (or outside of our service area) drop us a message below and we will gladly email you the PDF.

For our customers, we recommend that you check the tank bottom fuel quality on an annual basis to make sure the product looks good. If the tank has sat for years and is dark in color (good diesel is bright and transparent – you will notice if it is in bad shape), we recommend pumping the tank out at least partially and replacing with fresh fuel. Often you can also hugely improve the quality of the fuel by polishing the fuel. Polishing is when you circulate fuel from the bottom of the tank through a pump, filter repeatedly in order to remove any sediment or growth from the fuel, and then place this fuel back in the same tank.

Look at your fuel for a bright and clear color.

For stored fuel, you also want to make sure it is stabilized and contains a biocide. Stabilizers prevent the oxidation of the fuel and prevent the effect of metals like lead, copper and zinc, which can react and degrade fuel. For heating oil systems with a return line, for instance, the fuel is flowing through a copper line to the furnace and then back to the tank in a return line.

Use additives designed to prolong the life of your emergency diesel fuel.

Biocides prevent the growth of biological activity in the tank. In scenarios whcontaminated_dieselere micro-organisms like algae, bacteria, yeasts, and other bugs are growing in your fuel, biocides can kill this growth. It is still important to remove the residual grit and other contaminants that are the hallmark of bugs growing in your tank. Usually you remove them by filtration or total turn over of the fuel. If your tank absolutely has to be clean, you can contract a tank professional to enter the tank and physically clean the tank bottom or reline the tank with either fiberglass or an epoxy resin.

Water in diesel destroys fuel quality rapidly. Check your tank for water every fall and spring.

In events where water finds its way into your storage tank, that can also be corrected by pumping the tank bottom. Additionally, you want to put in an absorbent material designed to absorb water and not fuel. If your long term storage tank has water and you are not planning to burn 100% of the fuel in the near future, DO NOT add anything that removes water by distributing into the fuel. Adding a “fuel drier” that actually pushes the water into solution with the diesel will worsen the long term quality of your fuel, not improve it. That water is where bugs find their home to grow in fuel.

Star Oilco will test your fuel at no charge if you have an open account.

Feel free to call us with any questions you may have about long term storage of diesel. Star Oil can also deliver treated diesel ready for long term storage complete with Hydrotex PowerKleen Premium Diesel additive to improve the long term storage quality of your fuel. For biocide, we use Valvtect BioGuard fuel microbiocide to kill any possible biological activity and prevent any chance of it starting.

Diesel Testing and Storage in Portland

If you have a long term diesel storage tank and you are in the Portland, Oregon area, we are here to test your fuel.  Make sure your diesel is there for you when disaster strikes.

Tank Testing Form

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For more reading on diesel fuel quality assurance:

Fight Humbug in your Diesel Tank (using Valvtect Bioguard Plus 6 to stabalize your stored diesel)

Diesel Fuel Technical Review (an easy to read and free text book on diesel fuel)

Emergency Back Up Generator Fuel Quality (designed to provide a checklist to help Facility Managers keep those back up generators ready for emergency action)

Using Desicant Breathers to keep diesel fuel dry and clean (an introductory primer on desicant breathers and how they can be used to keep long term diesel storage drier and cleaner)

Using Diesel Filters to clean up your diesel fuel quality (an introductory primer on using aggressive filtration in line with diesel fuel dispensing for fuel quality assurance)

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Understanding The Renewable Fuel Standard In Portland 1024 768 Star Oilco

Understanding The Renewable Fuel Standard In Portland

Diesel Fuel Is Changing In Portland With The Renewable Fuel Standard (RFS)

Portland Old Town sign representing the city’s commitment to renewable fuel standards

Figuring out what this means for you or your business can be challenging. We have shared many questions that we have been asked already, to help provide more clarity on what this Renewable Fuel Standard (RFS) means for Wholesale Purchaser-Consumers​. If your question isn’t listed below, please reach out to Star Oilco so we can make sure your questions are answered!

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What is the Portland's Renewable Fuel Standard?

The Renewable Fuel Standard (RFS) is Portland City Council’s response to the City’s 2022-2025 Climate Emergency Workplan,  which lists the City’s priority actions over the next three years.​

On Dec. 7, 2022, City Council unanimously adopted amendments to the Renewable Fuel Standard, Portland City Code Chapter 16.60, which reduces dependence on nonrenewable fossil fuels, by increasing the required percentage of renewable fuels blended with petroleum diesel sold in the city of Portland.​

This policy increases low-carbon biofuel blends, moving Portland’s diesel fuel mix to 99% renewable by 2030. This policy includes a carbon intensity standard to shift to fuels that are lower carbon across their entire lifecycle.

What Does The Renewable Fuel Standard Mean For Me?

Portlands Renewable Fuel Standard Requirements

 July 1, 2024, Portland required that all diesel fuel sold contain a minimum 15% blend of biodiesel or renewable diesel. This percentage will increase steadily over the next few years, reaching a minimum 99% renewable fuel requirement by July 1, 2030.

There are no reporting requirements for retailers to comply with this mandate. Instead, the city enforces compliance through random on-site inspections and by requiring retailers to maintain records of the biofuel content of the diesel they sell.

Who Does The Renewable Fuel Standard (RFS) Apply To?

  • The policy speaks to “Covered Entities”​
  • Diesel Fuel Transaction within the City of Portland Oregon​
  • Fuel distributors, resellers, retailers, nonretail dealers, terminals, importers and wholesale purchaser-consumers are directly regulated by PCC Chapter 16.60 and referred to as “covered entities.”
  • Wholesale Purchaser-Consumers​: also know as WPCs are directly regulated by PCC Chapter 16.60 and referred to as “covered entities.”​

What Are Considered Wholesale Purchaser-Consumers ?

Wholesale purchaser-consumer (WPC) is a category of entities that own or utilize diesel vehicle fleets and purchase fuel in bulk for delivery into a storage tank at their facility or directly into a vehicles fuel tank. WPCs are required to register with the RFS program.​

A fuel distributor or common carrier delivers on road diesel to your facilities on-site tank such as: ​

  • Bulk Tank​
  • Aboveground Storage Tank (AST)​
  • Underground Storage Tank (UST)​

A fuel distributor delivers on road diesel directly into your vehicles also known as:​

  • On-Site Fleet Fueling​
  • Wet Hose Fueling​

Does The RFS Only Apply To Wholesale Purchaser-Consumers of Diesel Fuel?

Yes, these rules apply to fuel for on-road motor vehicles. Fuels used for the following purposes are not covered by these rules: ​

  1. Railroad locomotives, watercraft, aircraft, and emergency equipment​
  2. Dyed diesel for off-road vehicles​
  3. Dyed diesel for furnaces, boilers, generators​
  4. Propane and liquefied natural gas for vehicles​

What Are The Requirements To Meet The RFS?

Wholesale Purchaser-Consumers 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.​

What is the biofuel minimum content requirements for Wholesale Purchaser-Consumers ?

Biofuel Minimum Content Requirements for Wholesale Purchaser-Consumers​

  • 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.

What is the Carbon Intensity (CI) Standard for Wholesale Purchaser-Consumers ?

  • 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.​

Selecting a compliance option for Wholesale Purchaser-Consumers​

  • WPCs will need to select a compliance option by the start of the compliance period, July 1, 2024.​
  • Portland Bureau of Planning & Sustainability (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 for Wholesale Purchaser-Consumers​

Portland City Code (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.​

Contact Us Today To Learn More About The RFS For Your Operations

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comparison chart showing difference between off-road diesel and on-road diesel fuel in Portland OR
The Future of Diesel Fuel 940 788 Star Oilco

The Future of Diesel Fuel
Retail Diesel Dispenser Example
Retail Diesel Pumps with a variety of blends of diesel. Biodiesel, Renewable Diesel, and Fossil Diesel blends shown in Portland, Oregon.

The Future of Diesel is Low CO2 Synthetic Fuels

The stew of molecules your diesel is made of has been changing. A next level technology in chemistry is enabling garbage to be transformed into hydrocarbon fuels like diesel, jet fuel, naphtha, and propane as well as other high value chemicals. These technologies enable petroleum refineries in the United States to retool themselves and move into making biofuels with the very technology used to refine modern gasoline and diesel fuels from crude oil.  Currently oil refineries take crude petroleum and crack the molecules and reform them with a hydrotreater.  This hydrogenation is what makes renewable diesel from fats, oils and greases.

If you have ever worked under your sink at home. Remember the greasy mess inside the pipes below your kitchen sink.  These renewable hydrogenation technologies can turn that trash into a super clean high performance synthetic diesel fuel.  That waste stream along with used deep fryer oil, the animal fats from rendering and other sources is the feedstock for renewable diesel.  It is exciting and this will be the future of our diesel and jet fuels.  These fuels also have a fraction of the CO2 footprint of a fossil fuel equivalent as measured by Oregon, Washington or California’s rules to measure the carbon intensity of fuels.

Diesel Fuel in Oregon and Washington

Star Oilco has been getting questions on the changes of diesel in Portland, Oregon.  If you have not noticed, many diesel pumps at retail gas stations and cardlock have seen changing stickers on the face of the fuel pumps.  As of July 1st, 2024 the City of Portland requires a minimum 15% biofuel content of all diesel sold.  This policy is called the Portland Renewable Fuel Standard.  Portland currently plans to ramp up this requirement to a 50% biofuel blend in May of 2026.  So that every gallon of diesel sold inside the City of Portland must be half biomass based diesel products blended with fossil diesel.

This has caused quite a few changes in what fuel pumps have as their fuel for sale.  Usually people notice this change with teh color of the diesel coming out of the retail nozzle.  Diesel fuel buyers are noticing the bright yellow color of B20 biodiesel, the fully clear color of Renewable Diesel or a mix of several fuels tinting the color of their diesel.  This trend is bigger than just Portland.

Today on the west coast there are a variety of product label stickers you will see on diesel pumps.  These show the variety of diesel fuel specifications that are being sold to diesel vehicles today. Blends of petroleum ultra low sulfur diesel, R99 (99%) renewable diesel, and B99 (99%) Biodiesel are combined to meet the market needs of the diesel we all buy.

This change is because of a combination of pure market forces, government rules and local decisions by fuel haulers.  Today’s diesel not only has a commodity market for the fuel it also has a market for CO2 credit value and a cap of total petroleum diesel fuel that can be sold into a west coast state with a “Cap and Invest” program requiring blends of low CO2 biofuels, the liquid fuels sold for vehicles.

Add on top of these market forces, advances in technology used to make the liquid diesel fuel.  The diesel arriving at truck stops, gas stations, cardlock or out of a hose from a bulk truck has been changing and it’s often in good ways.  Knowing how can be helpful in navigating why diesel may cost one price or another and may have a need or maintenance that another fuel does not.

THE RISE OF RENEWABLE DIESEL

Renewable diesel, also called R99 as in 99% renewable diesel, is a synthetic diesel fuel made from the same feedstock as biodiesel. The big difference though is that renewable diesel’s finished product is hydrocarbon diesel.  Biodiesel chemically is not a hydrocarbon or made up of diesel molecules.  Renewable diesel is a biofuel, but it is also chemically diesel on a molecular level. For fuel regulation they refer to it (as well as biodiesel) as “Biomass Based Diesel” for labeling at the fuel pump.

There have been billions of plant capacity brought online in the United States for renewable diesel.  During the COVID market drop in fuel prices a number of petroleum refineries shut down, then upgraded their technology to make hydrocarbon diesel fuels out of the very biobased fats, oils, and greases biodiesel is made from.  These refineries use hydrotreating technology just like they do with a crude petroleum to make an actual hydrocarbon diesel molecule.   With this technology adoption to make diesel and jet fuels from vegetable oils and animal fats billions of gallons of low CO2 diesel fuels are coming on the market and governments are requiring it’s use, such as Portland’s Renewable Fuel Standard.

Renewable Diesel Consumption it the US Source: Alternative Fuels Data Center

THE AVAILABILITY OF BIODIESEL

The US makes billions of gallons of biodiesel.  A fuel that’s quality and performance continues to improve.  If you are not a fan of biodiesel in your fuel thinking strategically about the fuel will likely benefit your fleet operation.  The big concern with diesel fuel in a ultra low sulfur world is water and dirt suspended in the fuel affecting the performance of diesel emission systems.  With clean and drier quality specifications of B99 blend stocks today versus a decade ago the use of this fuel has grown substantially especially in the truck stop market.

When crude petroleum prices are high and therefore refined diesel prices are equally as high biodiesel is often an extremely competitive fuel.  Recently changes in Federal subsidies on biodiesel have changed this market dynamic a bit but you can presume that biodiesel will often be sold at a discount against fossil fuel diesel.  If a large seller of diesel (including petroleum refiners) can pick up pennies per gallons on millions of gallons sold they will do so.  Therefore Biodiesel is often seen in diesel in small blends even if you do not see a label on retail pump.  For blends above 5% a label is required for retail fuel sales.

R99 Renewable Diesel label indicating 99% biomass-based diesel content
Ultra Low Sulfur Retail Diesel Label
Biodiesel Blend Percentage label for retail diesel dispenser

Above are a variety of labels used to denote what fuel blend is coming out of a retail diesel dispenser. Feel free to call Star Oilco at 503-283-1256 if this confuses you and you want it explained.  We would be glad to do so.

These labels can be found together often at one pump.  All state and Federal standards require ultra low sulfur diesel for any on-road diesel sale.  The Federal standards also adopted by the states require a disclosure at the fuel pump if a blend is above 5% biodiesel.  The max allowable blend of biodiesel for diesel truck manufactures is a 20% blend.  If a truck dealership says that you cannot blend biodiesel up to 20% they need to take that up with the Federal Government because they need to support it.  This is why the label shows a blend may contain between 5% and 20% biodiesel content.

Renewable diesel is a hydrocarbon diesel. 

 

It is diesel meeting the ASTM D975 specification for diesel. 

Retailers selling blends of R99 in their fuel do not need to label it given this.  They still do label it given the benefits of the fuel’s performance and that customers are seeking that fuel.

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Many retail places will have stacked labels showing they may be blending 5% to 20% biodiesel as well as may be adding R99 Renewable Diesel to the fuel as market conditions dictate it is the more cost competitive fuel.  When seeing a label like this it can usually be assumed they are blending a R80 (80% Renewable Diesel) and a B20 (20% Biodiesel) blend of fuel.  This blend is actually believed by some to be a higher performing fuel seeing better performance that a R99 or B20 fossil fuel blend.

Fossil fuel diesels are being replaced or blended with biomass based diesels.  Be it Renewable Diesel or Biodiesel.  These blends are driven by more than one industry requirements, government rules, or other market forces. One of these being Portland’s banned on petroleum diesel through the Renewable Fuel Standard (RFS). This is resulting in an increase of low-carbon biofuel blends that will ultimately move to a mix of 99% renewable fuel requirement by 2030.

Renewable Diesel and Biodiesel Blend fuel dispenser label.

The big drivers are industry specification for fuels (both labeling as well as chemical characteristics), state rules on selling these fuels, their quality assurance as well as CO2 content, and of course the market forces.  Market forces being the supply and demand availability of fuel needed to meet customers.  Less fuel available to sell means higher prices for customers.

A decade ago the market for diesel was far simpler. Though you had biofuels and some blend mandates basically you had a diesel specification accepted and the daily price as tracked by a lighted retailers sign, a wholesale market average or spot buying by some customers.   Today this market is far more complicated by government regulation on the west coast.  There are three big programs at state levels impacting this.

State Fuel Rules cause a unique need for one state or another. Whereas twenty years ago if Oregon or Washington fuel was selling for more than the Gulf Coast you might see brokers bring fuel into the region then driving down high prices.  With the creation of various complex and unique rules on diesel, imports of fuel to these low CO2 fuel states has dropped.  The amount of people moving product into west coast states has dropped.  The big rules causing this are the Cap and Invest programs of the West Coast states, the Low CO2 Fuel Standards of the states, and the fuel blend mandates of various jurisdictions of these states. For instance California now requires all off-road diesels but 99% renewable diesel.  Portland, Oregon also has a CO2 requirement and minimum 15% blend of biomass based diesel on all fuel sold in the state.

WHAT ARE THE DIESEL FUELS AND THEIR SPECIFICATIONS

Petroleum Diesel:
ASTM D975 Specification.

The ASTM D975 is a series of tests used to maintain consistent industry standard product performance for diesel fuel.  It includes among several tests cloud point, cold filter plug point (CFPP), several masurements of diesel fuel operability performance, intrained water content, sediment, carbon residue, ash, distillation, viscosity, sulfur, copper corrosion, cetane number, cetane index, aromaticity, and conductivity.

Renewable Diesel:
ASTM D975 Specification.

Renewable Diesel is following the same series of tests as petroleum refined diesel fuels.  It is the same ASTM D975 specification. Though Renewable Diesel has some different properties that exceed the ASTM specification of diesel.  Renewable Diesel is highly prized as a fuel because it typically is a cleaner and drier diesel fuel than petroleum diesel. This being seen by the tests on sediment and water content in a parts per million level.  Renewable Diesel content in diesel fuel can also be tested for looking for a C14 molecule (the chain typically created in a Hydrotreated Diesel process from fats, oils and greases.

Biodiesel (Methyl Esther):
ASTM D6751 Specification.

The ASTM for Biodiesel tests a mono-alkyl esters of long chain fatty acids derived from vegetable oils and animal fats. The testing for quality assurance covers an analysis for flash point, methanol, water and sediment, kinematic viscosity, sulfated ash, oxidation stability, sulfur, copper strip corrosion, cetane number, cloud point, acid number, carbon residue, total and free glycerin, phosphorus, reduce pressure distillation temperature, atmospheric equivalent temperature, combined calcium and magnesium, and combined sodium and magnesium.

For more on Biodiesel Use and Handling the National Renewable Energy Laboratory has a great book on the subject.

THE HISTORY OF DIESEL FUEL SPECIFICATIONS IN THE UNITED STATES

In the 1990’s the US EPA passed rules that demanded a phase out of sulfur in diesel fuel.  The presence of sulfur was very good for the fuel’s storage stability as well as fuel lubricity, but was horrible for air quality.   Additionally the big smog contributor was NOx (nitrous oxide) which was one of the EPA’s reason’s for pulling sulfur out of diesel.  For the EPA to get engine manufacturers to treat the NOx emissions at the tailpipe they needed all the sulfur gone (ultra low sulfur diesel) for modern diesel emission systems to be able to eliminate NOx as well as a host of other pollutants including particulates.

The story of changing diesel fuel standards in the US under the EPA is one of removing sulfur from our diesel fuel.  In 1996 the fuel refiners and sellers of diesel had to move the sulfur content of the fuel sold for on-road purposes to below a 500 parts per million standard. Commonly referred to as Low Sulfur Diesel fuel.   In 2006 the standard moved to a maximum of 15 parts per million of sulfur for all on road fuels.

In 2006 while the sulfur content of fuel was dropping the City of Portland released the first mandated blend of biodiesel content.  This being a 5% biodiesel blend.  The next year, the State of Oregon followed with its own Renewable Fuel Standard requiring this throughout the state.  This began the expectation of biodiesel in most diesel fuel in the Portland, Oregon area.  Washington also passed a similar policy for blending biodiesel but the enforcement and need for the fuel is less specific at Washington fuel pumps.

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