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.

Yellow diesel backup generator for emergency power
Emergency Backup Generator’s – Why The Fuel Quality Matters. 1024 683 Star Oilco

Emergency Backup Generator’s – Why The Fuel Quality Matters.

                             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

  • This field is for validation purposes and should be left unchanged.

 

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
Low CO2 Diesel Fuel – B99/R99 Facts. 1024 683 Star Oilco

Low CO2 Diesel Fuel – B99/R99 Facts.

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.

 

Star Oilco Crest

 

Contact Form

  • This field is for validation purposes and should be left unchanged.
Star Oilco’s Commitment to Sustainability 150 150 Star Oilco

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.

Star Oilco truck fueling a large generator during winter conditions
Treating And Refilling Your Diesel Backup Tanks 1024 768 Star Oilco

Treating And Refilling Your Diesel Backup Tanks

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

  • This field is for validation purposes and should be left unchanged.

 

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)

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!

I Have Questions

Choose Star Oilco As Your Preferred Fuel Delivery Company

Contact Us

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

Contact Us

JOIN THE FUEL MARKET REPORT NEWSLETTER FOR YOUR WEEKLY FILL OF UPDATES!

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

Emergency Back-up Fuel

Does your Emergency Back Up generator have the diesel it will need when an emergency power outage happens?

We deliver dyed diesel and will keep your equipment full for you.

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.

Back-up Fuel Tank

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?  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.

Proper Generator 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 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

  • This field is for validation purposes and should be left unchanged.

 

For more reading on diesel fuel quality assurance:

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

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

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)

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.

Contact Us Today To Schedule Your Next Bulk Fuel Delivery

Contact Us

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.

Sign Up To Receive Our Fuel Market Report For Your Weekly Fill Of Updates!

Name
greenhouse gas emissions reduction graphic by Star Oilco
Why diesel fuel in Oregon may go up in 2025 940 788 Star Oilco

Why diesel fuel in Oregon may go up in 2025

What are the market forces impacting diesel in Oregon for 2025?

There are some big changes coming for diesel fuel in Oregon and it is not widely reported. The biggest likely change being a smaller supply of renewable diesel in the first quarter of 2025.  Renewable Diesel is expected to see a shorter supply than in recent years as imports drop off with the removal of subsidies.

Contact Us Today

Oregon is going to see several major market forces impacting the wholesale, as well as retail cost of diesel to those that buy it.   To list them simply, the following events will converge on New Years Eve:
– The end of the $1 a gallon US Blenders Tax Credit (BTC) subsidy on biodiesel and renewable diesel.
– The subsidy replacing the BTC, the Producers Tax Credit (PTC), blocks imported biofuels such as Neste Renewable Diesel.
– Oregon is relaunching its Climate Protection Program which will cap the market allowance for fossil fuels.
– Portland has a Renewable Fuels Program that requires the blending of Biodiesel and Renewable Diesel under a 60% reduction in CO2 emissions from petroleum diesel (biofuels sold in Portland must be below a 40CI under Oregon’s Clean Fuels Program).
– California has mandates for Renewable Diesel in many uses raising the cost of R99 renewable diesel throughout the US.

These forces will raise the cost of fossil fuel diesel, renewable diesel and biodiesel while at the same time Oregon and Portland are requiring the use of these biofuels.  This will mean a higher retail and wholesale price inside Oregon compared to the rest of the United States. We cover the details of these trends below in depth.

THE OREGON CLIMATE PROTECTION PROGRAM

The biggest change impacting the price for on-road diesel is the return of Oregon’s Climate Protection Program (CPP). The program’s more common name is Cap and Invest, in fuel pricing it is referred to as “Cap at the Rack” as its allowance requirements are priced on a gallon of fossil fuel.  The program caps the total fossil fuel allowed to be sold inside Oregon. Then, revenue generated from selling the allowances to import CO2 contributing fossil fuels into the state, is invested to reduce future needs for these fuels.  In 2025, this program will return and fuel importers into the state of Oregon will have to capture the cost of reducing their CO2 emissions under this program.

Oregon previously had a “Cap and Invest” program limiting the total market share allowed for petroleum diesel fuels.  This created a higher cost for diesel fuels refined from petroleum compared to renewable diesel and biodiesel. This program was stopped by an Oregon court decision in 2023. The Oregon Department of Environmental Quality (DEQ) just finished and published the new rules for this program correcting the issues the court had with the program.

The way the Oregon Cap and Invest works on the market is similar to musical chairs. If you imagine the market for diesel is limited just like seats in musical chairs, every year they will take a few of the fossil fuel chairs away.  That means that anyone maintaining their existing customer gallons or trying to grow their volumes must meet this demand with renewable diesel, biodiesel or some other fuel.  The limited market for fossil fuels is represented by “Allowances” provided by the Oregon DEQ.  If a fuel seller cannot reduce their fossil fuel dependency, they need to buy a CPP Allowance in an Oregon DEQ curated market for them.

The value of these CPP Allowances is actually charged on each gallon of fuel sold by the regulated parties.  It is commonly called “Cap at the Rack” and can range in cost from nothing to over $.50 a gallon depending on how hard it is to meet the need of the program.  The biggest impact on the Cap at the Rack cost is how much renewable diesel or biodiesel is being used by those selling fuel.   Prior to the stoppage of Oregon’s CPP program, the Cap at the Rack cost usually ran around $.05 to $.30 a gallon.  It is expected we will see a return to this cost starting January 1st, 2025.  OPIS reports have an adjusted and non-adjusted option to capture the cost of this program.

The way the CPP program is designed is that if a fuel seller brings in a lower CO2 fuel like renewable diesel or biodiesel into the state of Oregon those gallons do not count towards the fossil fuel market cap.  So a R99 seller has no CPP Allowance obligations for those gallons.  A B20 biodiesel blender, as well, picks up 20% more gallons available to sell as those biodiesel gallons do not count against their CPP Allowances.  This facet of the CPP is why the market of renewable diesel in particular is a big deal for diesel prices.

The intent of Oregon is for consumers, fleets, farmers, municipalities, and industry in Oregon to grow their energy needs, they will need to use more low carbon energy.  If this energy use is a fleet running over 32,000 GVW this will mean low CO2 biomass based diesel fuels.   At the same time, the CPP program is kick-starting back into existence, the world of these biofuels is seeing some major market changes.

Secure Your Low Carbon Fuel Today

OREGON CLEAN FUELS PROGRAM

Oregon has another program to reduce the CO2 of the liquid fuels sold inside the state.  This program is additional and works in conjunction with the CPP.  It is the Clean Fuels Program (CFP) and is extremely similar to the California Low Carbon Fuel Standard (LCFS).  This program creates a market for Carbon Credits that are traded and required by fuel importers into Oregon.  OPIS also shows this program’s cost per gallon on their reporters.

Where the Climate Protection Program is like musical chairs with market share as the allowed market for fossil fuel shrinks year over year, the Clean Fuels Program is like a coupon required with sales of fossil fuel.  The major importers of fossil fuels into Oregon must show they are blending lower CO2 biofuels by presenting CO2 credit generated under the CFP program.  Users of fuel inside Oregon also see a benefit for bringing in low CO2 fuels when the market needs the credits so that voluntary users of high blend biofuels like R99, B99, B20 or E85 (85% ethanol) get financial support via a reduced final cost per gallon if using those fuels.

The reason we see renewable diesel in Oregon compared to the rest of the United States is because of this program.  This value of a Carbon Credit is usually taken to buy down the competitive price of these biofuels.  The concept is that if a fuel importer is bringing low CO2 fuels into Oregon, the reduction in CO2 these fuels represent can generate a CO2 credit.  That credit being sold on an open market to help reduce the cost of a low CO2 fuel compared to a fossil fuel.  The market for these credits is banked and has been building for years. Currently, the CO2 value is low as there are plenty of credits.

If the market availability of renewable diesel and biodiesel is dropping, the value of these credits should be rising.  The overall market will be bearing this cost though consumers will likely never see it.  In effect these regulatory market impacts of less renewable diesel in Oregon will mean a higher Carbon Credit price under the CFP program.  That will help lower the blended or delivered costs of B99 biodiesel and R99 renewable diesel hitting the end consumer.

RENEWABLE DIESEL AND BIODIESEL SUPPLY IN OREGON

Biodiesel and renewable diesel are called “Biomass Based Diesel” as a respective class of biofuels.  Where fossil fuel diesel is made from crude petroleum, biomass based diesels are diesel fuels made by several technologies from biomass feedstocks. The most widely used feedstock being fats, oils, and greases from virgin vegetable seed oils (soy and canola) or waste streams like recycled deep fryer oils, meat processors rendering fats, recovered trap greases, and many other sources of fat waste streams.

The 2025 Oregon Fuels Forecast for Oregon predicts a 199+ million gallon need for R99

The Oregon Department of Administrative Services Office of Economic Analysis produces a Clean Fuels Forecast which describes the size of the market need in Oregon.  In 2023, Oregon used 133.3 million gallons of R99 inside the state. The fossil fuel diesel used in 2023 was 577.6  million gallons by comparison.  So R99 and B99 blended with those gallons is a substantial 26% of the diesel burned in Oregon by the most recent total data.  The forecast for 2024 Renewable Diesel is 46.6 million gallons of R99, which appears to be exceeded by quite a bit.

We do not have total consumption numbers for 2024 yet, but we do know thanks to the US Energy Information Agency, that imported R99 from Neste Singapore by itself through October was roughly 62 million gallons rounding up.  The Oregon Clean Fuels Forecast expects 199.5 million gallons of renewable diesel in 2025.  As the program ramps up with this expectation, the imports of previous years will be far less competitive without subsidies.  This means the price of renewable diesel will be higher, unless US production scales to not only fill this market void but also add tens of millions of gallons into the state.

Of that 133.3 million gallons of R99 used in 2023 in Oregon, a third, more than 40 million gallons of it was imported Neste Renewable Diesel.  973,000 barrels of renewable diesel was shipped from Singapore to Oregon that year.  Other renewable diesel refiners such as Diamond Green, HF Sinclair, Marathon, Montana Renewables, Phillips 66 and Chevron also had R99 product sold into Oregon.  Regardless of the expansion of US domestic Renewable Diesel production in recent years, the Neste product no longer receiving subsidies will have a real impact to maintain these 133+ million gallons of R99 inside Oregon.

This same projection reports that Oregon’s B99 Biodiesel use inside the state in 2023 was 78.8 million gallons.  With a projection of Biodiesel to rise 83.8 million gallons in 2025.  Given these market needs, Star Oilco predicts R99 to be expensive compared to petroleum diesel. Biodiesel will be more competitive given the available product and no substantial change in suppliers.  Biodiesel will also need to be used to replace R99 gallons under the CO2 reduction programs of Oregon. Due to these market forces Star Oilco has contracts for supply at reasonable prices for our existing customers.

R99 is mandated in certain diesel uses in California by the California Air Resource Board (CARB) which make for an inelastic price.  Diesel equipment operators in California will have to buy R99 at any price.  This will raise the prices we in Oregon can expect to see renewable diesel at.  The other low CO2 diesel fuel biodiesel will not be impacted by CARB the same way and we can expect to see B20 become more widely sold because of its more competitive price.

Biodiesel has a much more widely used market development around the US, especially in over-the-road trucking.  The plants that make biodiesel also tend to be co-located, owned in collaboration with feedstock producers, and integrated within the Soy industry that produces the feedstock.  Expect that biodiesel will continue to be more competitive with diesel than renewable diesel if price is the concern.

It is worth mentioning that the CARB mandates for R99 use in California will have impact to set the price for renewable diesel in other states.  If the market demand mandated by CARB continues and the market is short, the price can be expected to rise to meet this demand.  So unsubsidized imported R99 will likely continue to flow into California and other states but it will be at a full cost to make up the subsidy.  This will likely mean that incremental gallons of R99 needed to meet the market growth projected in Oregon will be at a premium over Oregon diesel to match California’s diesel market.

US BLENDERS TAX CREDIT EXPIRATION IMPACTING OREGON

The biggest unknown on how expensive diesel will be for Oregonians relates to Federal biofuel policy.  For the last twenty years the US Government has had an on-again/off-again subsidy on biodiesel and more recently renewable diesel.  There have been years the subsidy was not renewed which informs us of what probably will happen with prices on biodiesel.  Renewable diesel though is a stickier market.  The reaction of R99 renewable diesel prices in California, Washington and Oregon market is the big question and it comes down to an issue of production.  Two big issues at play are how much renewable diesel will these states continue to see from Neste’s Singapore plant and how much new US production for renewable diesel comes online to feed the market need.

The Blenders Tax Credit will be replaced with the Producers Tax Credit

The Blenders Tax Credit expired December 31st.  There are those that hope that in January the new Congress will take up an extension of this but most experts in the industry do not expect and are not betting an extension will not occur.  Meanwhile there is subsidy regime named the “Clean Fuels Production Credit” or the slang term preferred by industry the Producers Tax Credit (PTC) which ranges from $.20 a gallon to $.80 a gallon depending on how low CO2 the fuel as well as some labor practices.  The PTC also bars imported renewable diesel and biodiesels from getting any money at import.  Approximately more than 40,000,000 gallons a month of renewable diesel flows from Neste Singapore to the west coast, this will have a huge impact on Oregon.  For those accustomed to that fuel at the same price as fossil fuel diesel, the expiration of this subsidy will raise our prices for those demanding R99 renewable diesel which was already in short supply prior to this change.

There is also another wrinkle in the subsidy policy of the US with this.  The subsidy on Sustainable Aviation Fuel (SAF), basically renewable diesel meeting the Jet A fuel specification, is still in place for imported product for another year.  Europe also has some significant incentives and mandates for SAF.  Renewable diesel refiners, both domestic as well as foreign have a huge financial incentive to make renewable jet fuel over renewable diesel. This reality probably means that if a gallon of fuel can go to a jet fuel market over a transportation market it will.

So the market forces for renewable diesel in particular probably means less R99 available nationwide in the US.  While that is happening, the state of California has mandated that all off road equipment run R99 Renewable Diesel.  So regardless of what the price of this fuel is, California will have to use it in huge volumes.  Markets being what they are, for high volume fleets demanding R99 they can expect the R99 price in Oregon will track the price paid in California.  There will be exceptions of contract relationships for supply of R99 as well as retail brands moving renewable diesel blends to meet their strategic CPP requirements.  This will definitely mean anyone wanting R99 will want to line up a contractual supply agreement or can expect a higher price than in 2024.

THE FEDERAL RFS AND RINS

It should also be mentioned that the US EPA has a Renewable Fuel Standard of its own. It is a completely different regulatory system compared to the Portland RFS.  This program requires gasoline refiners as well as importers to use so much biofuel in their sales inside the United States.  Federally refiners and importers must prove they blended specifically assigned amounts of ethanol, and biomass based diesel fuels.

This program attaches a Renewable Industry Number (RIN) on every gallon of biofuel sold in the US.  As there are many unobligated users of this biofuel in the US those blending their own biodiesel, renewable diesel and ethanol generate RINs that can be sold to the refiners and importers of gasoline inside the US.

The RIN value has been low compared to historic values for biomass based diesels.  As Biodiesel and Renewable Diesel generate the same type of RIN, the reduction in imported R99 might raise the value of these RINs.  This value increase for the Renewable Industry Number is expected to slightly off set the hard subsidy.  It will be a market based value so it can not be relied upon for lowering the cost of biofuels, but can be expected to help with price.

As more US produced renewable diesel is coming online, hopefully enough to replace the lost imported gallons before the busy summer diesel season, these RIN values may not have a major contribution to the wholesale price of R99.

CONCLUSION

We predict diesel prices to rise in Oregon compared to the US in the first quarter of 2025

Star Oilco’s team saw these market conditions coming during the summer of 2024.  We have locked in contractual supply of R99 renewable diesel for our existing customers and have additional supply for customers seeking R99 renewable diesel by Star Oilco owned cardlock sites, mobile onsite fueling or smaller volume bulk delivery.

Star Oilco expects a Cap at the Rack price from the Oregon CPP to be between $.10 and $.40 a gallon by the end of January depending on biofuel supply. With unofficial conversational predictions with several large fossil fuel refiners and brokers, there is an expectation of over $.25 a gallon as a Cap at the Rack price.  We think it will be higher than that with the removal of millions of gallons of R99 from Oregon’s market.  In the first quarter with the removal of imported R99 hitting the state we expect the Cap at the Rack price to start in the higher $.30 a gallon range where it left off when the program was ended by a court. As the low CO2 exempt renewable diesel gallons shrink in the first quarter a heavier reliance on fossil diesel will be required.

We expect quite a bit of biodiesel to be loaded up ahead of the $1 a gallon subsidy being ended on December 31st.  Renewable diesel will be in short supply due to disruptions in supply of imported product.  So first quarter R99 will be at a premium and B99 for blending with diesel will be a deal to be had as fossil fuel diesel prices rise.  Expect to see far more B10 and B20 offered in the market place as either a more common than not fuel at retail gas stations, truck stops, and most cardlock stations, especially in Portland.  Star Oilco will have options for our customers of either B20, R99, or R20 blends of diesel all complying with the City of Portland Renewable Fuel Standard inside the city.  Star Oilco’s Portland CFN and Pacific Pride locations will have both R99 and B20 hoses available for customers.

California will continue to demand any and all R99.  If the market is short R99 because of a removal of imported renewable diesel, the value of R99 in California will rise to justify foreign R99 to enter the market without a subsidy.  Star Oilco presumes that number will be between $.40 to $.80 a gallon.  If R99 in California is able to demand a premium, Oregon will have to pay that price for incremental gallons.  Oregon has a specific need for R99 and B99 for retail gasoline sellers to meet the Climate Protection Program (if you sell so much gasoline you must reduce your market share someplace and R99 diesel is the easiest way to do that).  Oregon retailers will be seeking to move a budgeted amount of renewable diesel and biodiesel to meet their fossil fuel allowance budgets under the CPP.  Each gallon beyond that will have to compete with California at a high price.

R99 will still be available but we expect incremental gallons to be at a premium.  Contractual gallons direct with a refiner of renewable diesel will have a consistent price that a business can manage fuel surcharges against diesel.  Outside of a contract for volumes, the wholesale rack price of R99 may vary wildly compared to a B5 ULSD fossil fuel diesel prices depending on how high diesel is going for are as well as the CPP and CFP values of a Carbon Credit and Cap at the Rack.

The big unknown to price is how one key importer of R99 will respond to the market without a subsidy.  It is the assumption of Star Oilco that California will continue to buy imported R99 without a subsidy for it’s off-road mandated market. If the economics of Neste are such, they can compete and open the floodgates of R99 and this could change.  This open flood of product is not expected especially given the economics of Sustainable Aviation Fuel which renewable diesel plants are expected to make more of in 2025.

The Oregon and Washington market will see a flow of new capacity of R99 for retailers mandated to reduce their fossil fuel volumes.  US production of R99 is expected to more than compensate by 2026, but 2025 will be a chasm to jump.  Chevron, HF Sinclair, Marathon, and Phillips 66 will be procuring and supplying US made biomass based diesel to the Pacific NW for their retail gas station needs.  We would expect to see R99 or blends of it sold at parity with branded diesel in the retail market in Oregon.

Commercial sellers of wholesale unbranded diesel will have a tougher time lining up R99 at a price in line with wholesale B5 or B20 ULSD.  No doubt with these higher prices we will be seeing an evolution of R20 (20% renewable diesel) as well as blends of biodiesel with renewable diesel available inside the City of Portland for it’s Renewable Fuel Standard as a premium fuel at a competitive price with diesel.

Star Oilco has R99 and R20 blends for commercial customers in the Portland, Oregon area.  We also have R99 available for Clark County Washington commercial and municipal fleets.  Star Oilco also has biodiesel blends and can support fleets seeking to succeed with it.  Call us if you would like to talk about your fuel supply in 2025.

If your fleet has an interest in a consistent and contractual supply of R99 renewable diesel or wants to develop a relationship that prioritizes a 20% of renewable diesel blended to meet Portland’s Renewable Fuel Standard compliance please feel free to reach out to Star Oilco.

Call Us Today

For further reading of news coverage of the Oregon Climate Protection Program please see the following:

KGW8 – Climate Protection Program returns after being struck down by court

KATU2 – Oregon adopts Climate Protection Program to cut fossil fuel pollution by 90% by 2050

Oregon Capital Chronicle – Redo of Oregon program to cap greenhouse gas pollution ready for public review. 

The Oregonian – Oregon restores signature Climate Protection Program to cut greenhouse gases.  

Central Oregon Daily News – Oregon commission approves redo of landmark climate program after lawsuit derailed it

Oregon Public Broadcasting – Oregon to reinstate ambitious climate program amid divided reactions from industries, environmentalists

US Energy Information Agency: Biofuels Displacing Petroleum on the West Coast

Reach Out To Our Team

Our team of fuel experts would be happy to work with you and help you understand how this affects your operations

Contact Us
home insulation representing energy efficiency for renewable fuel standard compliance in Portland Oregon
What Is The Renewable Fuel Standard In Portland? 1024 683 Star Oilco

What Is The Renewable Fuel Standard In Portland?

Did you hear about the time Portland banned fossil fuel diesel?

Portland is making a big move to provide cleaner air and reduce greenhouse gas emissions. Portland has implemented what’s called the Renewable Fuel Standard (RFS) beginning  its first phase on May 15th, 2024. The RFS policy in Portland mandates that there has to be an increase of use of low-carbon biofuels in diesel within city limits of Portland. This is part of the ultimate Climate Emergency plan. This RFS mandate was first implemented in 2006 as a B5 (5%) Biodiesel blend mandate with the goal of mandating a 20% blend. The RFS is the first of its kind not only in Oregon but in the entire United States. Portland’s reputation as a leader in environmental sustainability efforts continues. 

Portland’s Phases To Implement Almost 100% Renewable Diesel

What makes Portland’s mandate unique is the requirement that the biofuels have a CO2 value so low it bars most American made biodiesels. The blending requirement starts at 15% in 2024, and then it will steadily increase to 50% by 2026 and will reach 99% by 2030. This schedule demonstrates how Portland’s low-carbon ambition is present to transition away from fossil fuels and promote alternative energy sources.

This policy is expected to reduce air pollution and carbon emissions. It will also create new markets for biofuels, which will lead to increased economic opportunities. This will ultimately help the city become a more sustainable and environmentally friendly place to live as Portland has taken the lead in striving for sustainability over the years.

The policy will also help create jobs in the biofuel industry and provide opportunities for businesses to switch to renewable energy sources. It will also help reduce the city’s dependence on fossil fuels and protect the environment for future generations.

Want to learn more about meeting Portland’s requirements for the Renewable Fuel Standard mandate?

Contact Us
landscape view of Mount Hood representing Star Oilco’s fuel delivery service area in Oregon

Focus on Lower-Emission Biofuels

Uniquely, Portland’s RFS goes beyond just the biofuel blend. It also sets a strict carbon intensity (CI) standard for the biofuels themselves. This ensures the biodiesels used have a significantly lower carbon footprint compared to traditional options. Biodiesels produced domestically often fall short of this CI requirement, prompting many suppliers to look to renewable diesel sources. This focus on biofuels with a lower lifecycle carbon footprint makes Portland’s RFS even more impactful in reducing greenhouse gas emissions.

Iconic Portland sign on Broadway at dusk with city buildings in the background

Exemptions and Implementation Details

The initial phase of the RFS targets on-road diesel sales. This applies to diesel purchased at gas stations, by mobile fueling companies, and for use in large stationary tanks. However, the long-term goal includes all diesel use within the city. Some temporary exemptions apply to off-road diesel uses such as heating oil, generator fuel, aircraft fuels, watercraft fuels, and other dyed fuel users. One local truck stop, Jubitz Truckstop, was granted a temporary exemption. This is likely due to concerns about disrupting critical transportation operations. Daimler (the manufacturer of Freightliner and Western Star trucks) has a research facility in Portland. Daimler was also granted an exemption to meet their specific fuel needs for testing purposes. 

The RFS enforces compliance through fuel sampling and requires documentation proving the fuel meets the minimum biofuel content and CI standards. Businesses that purchase diesel need to be able to show their compliance through bills of lading (BOLs) or similar records from their fuel provider, like Star Oilco. If a business does not comply and provide this documentation, it can result in pretty hefty fines. First offenses can be a fine of $10,000 per day. Repeat offenders will end up facing even bigger penalties of up to $15,000 per day. These fines can really show the impact of how serious Portland is taking this initiative. 

Impact on Businesses and Consumers

While residential consumers who don’t purchase diesel directly are not directly impacted, businesses purchasing diesel, especially in bulk, will need to adapt to the new regulations. This may involve acquiring documentation from fuel suppliers or entering into contracts guaranteeing compliant fuel blends. Wholesale fuel distributors, who sometimes purchase from multiple vendors and blend fuel mid-route, may face additional challenges in tracking the biofuel content and CI of their product. However, as the program matures, the industry is expected to adapt and streamline these compliance procedures.

Contact Us Today To Discuss What This Means For Your Business

Contact Us

A Step Forward for Cleaner Transportation

Portland’s ambitious RFS sets a new expectation for sustainable transportation. Promoting low-carbon biofuels allows Portland to aim to significantly reduce its reliance on fossil fuels and be able to contribute to cleaner air for its residents. The RFS program will be able to serve as a model for other cities that are looking at implementing similar initiatives. Great job Portland for paving the way to a sustainable future for other cities! Although challenges will remain, as businesses adapt to this new norm, Portland’s RFS represents a significant step forward in creating a more sustainable transportation sector.

The RFS program is an important step in the fight towards sustainability and lower carbon fuels. It sends a clear message that cities are willing to take action to reduce emissions and protect the environment. We anticipate that other cities will follow Portland’s lead and create similar initiatives. This will have a significant impact in reducing emissions and helping to protect the environment.

It is a positive step towards a more sustainable future. Alternative fuels have become more and more readily available. Investing in alternative fuels and reducing carbon emissions is essential for protecting the planet for future generations. Governments should prioritize investing in renewable energy sources and incentivize communities to switch to alternative fuel solutions.

Thank you for choosing Star Oilco as your preferred fuel provider in Portland and Vancouver, Washington. Give us a call to discuss how the RFS mandate can affect your business and one of our team members would be happy to discuss this with you.

JOIN THE FUEL MARKET REPORT NEWSLETTER FOR YOUR WEEKLY FILL OF UPDATES!

Name
Ceramic house with red winter hat and pinecones
Every question Star Oilco has been asked about heating oil 1024 683 Star Oilco

Every question Star Oilco has been asked about heating oil

Heating Oil FAQ (and not so FAQ)

heating-oil-tank

When it gets cold in the Pacific Northwest, it’s time to take a look at some common questions we have been asked about Heating Oil.  If you don’t see an answer to a question you have, please feel free to call, email, or message Star Oilco and we will gladly answer. We especially welcome questions  that require research.

Get A Heating Oil Quote

What is Heating Oil in Oregon?

Heating Oil in Oregon is diesel and can have a biodiesel blend as well.  Diesel fuel has several grades either #1 or #2 Diesel.  The number refers to the grade with #1 being called either “stove oil” or “Kerosene” as another term for it.  Typically when someone is requesting or talking about heating oil they are talking about #2 Diesel dyed red to denote there are no on-road fuel taxes associated with the fuel.

How Does a Furnace Work?

There are several types of oil furnaces.  The most common is a vaporizing burner.  These furnaces typically work by taking a liquid combustible fuel, vaporizing it into a fine mist through a fuel oil nozzle, and igniting that mist into fire. That fire heats either air or water for your home’s comfort.

Heating Oil Fired Air Furnaces

Air furnaces usually move the air through a heat exchanger where a blower then moves air over the heat generated by your furnace, and finally the air is pushed through your home’s vents. 

Heating Oil Fired Water Furnaces and Boilers

Boilers and Water furnaces heat a tank of water which is then distributed several different ways to heat your home.  Either by moving hot water to radiators, radiant plumbing under your floor, or to a heat exchanger and blower which transfers the heat from the hot water into vents blown throughout your home. 

Heating Oil System prior to the combustion system

The parts leading up to the Burner of of an oil furnace system are simple. There is a tank to hold a reservoir of oil, a line from that tank (and sometimes a line back to it), a fuel filter, a fuel pump, and a vaporizing burner that combusts the heating oil into fire. Combustion of the fuel takes place in a fire box next to the heat exchanger. The heat exchanger takes on the heat of the flames to heat either air or water. In an oil furnace, the heat exchanger is assisted with a blower that pushes the hot air throughout your home to keep you comfy.

How Do I Check the Volume of Fuel in My Tank?

If you have an above or below ground heating oil tank you can confirm your fuel volume by the inches of fuel in the tank.  If you have an above ground tank there is probably a tank gauge that can tell you an approximate volume in the tank.  If you have an below ground tank you can confirm how many gallons are in the tank by putting  a measuring stick or tape-measure into the tank.

You will want to confirm the size of the tank you have. Your oil provider will probably have an idea of what size your tank is by looking or historic deliveries. Star Oilco has a tank chart which will help.  If you place a stick or tape measure into your tank and see how much fuel is in it you can compare that to a tank chart found on Star Oilco’s website.  When delivering fuel you can “stick” measure the tank before and after the delivery. Compare these volumes with the delivery and you can often figure out your tank size based on the before and after volume lining up with how much fuel filled your tank.

To view Star Oilco’s Tank Chart please click HERE. 

What is “Home Heating Oil” or “Residential Heating Oil?”

Home heating oil can be either a petroleum diesel fuel, bio-synthetic diesel fuel, or biodiesel fuel. In Oregon and Washington, home heating oil is typically ultra-low sulfur diesel fuel often containing between 5% and 20% biodiesel. Star Oilco’s standard home heating oil fuel is B5 dyed ultra-low sulfur diesel. Oregon mandates require that all diesel fuel sold contain a minimum 5% biodiesel. For that reason Star Oilco carries B5 or 5% biodiesel blends in our heating oil.

(NOTE: Kerosene sold by Star Oilco contains no biodiesel due to the reality that wick heaters cannot handle even a minute amount of biodiesel in them.) Star Oilco also carries a 20% biodiesel blend, called B20 Bioheat, for customers who want a cleaner burning low carbon fuel for their home.

What is Kerosene?

Kerosene is a heating oil product that is capable of being picked up and fed consistently by a wick heater. Kerosene is a diesel product that is very similar to the fuel used for over the road trucks. The big difference is that kerosene is a “lighter end” distillate fuel, which means it has a lighter specific gravity. This lighter characteristic means that it also works better in certain systems like wick heaters, pressure washers, and pot burner stoves.

Can Heating Oil be Used in a Kerosene Heater?

It depends on what type of system the kerosene heater is operating with. If you have a wick heater it will not work with heating oil. You will likely have to replace the wick to get it to work again as diesel will not readily drawn into the wick. Even if it does, it will burn far dirtier. If it is a pot burning system like a Toyostove or Monitor heater, then it will burn ultra low sulfur heating oil. Increased maintenance is to be expected on the pot burner, as there is a likelihood of more coking (crusty black soot build up) to occur inside that system.

What is “Bio Heating Oil” or Bioheat?

Bio heating oil and bioheat refer to heating oil products with a blend of biodiesel in them. Typically bioheat is a blend between 5% to 20% biodiesel with ultra low sulfur diesel for a clean burning and low CO2 heating fuel.

For a really in-depth look at biodiesel used as a heating oil check out this article. 

Will Heating Oil Run a Diesel Engine?

Yes, heating oil will run in a diesel engine. Heating oil is diesel. Be aware though that on-road vehicles must only run clear diesel fuels. If caught using heating oil in an on-road vehicle in Oregon and Washington, the fines can run in the tens of thousands of dollars. Heating oil can also be dyed to signify it isn’t for on-road use. 

Also be aware that even many off-road pieces of equipment and generators need ultra low sulfur diesel to operate without very expensive maintenance. Heating oil can have low sulfur or even high sulfur contents that could cause real issues for modern clean diesel engines. Some consideration is needed prior to burning a fuel marked “heating oil” in a diesel engine.

What Fuel Do I Need?

Consult your furnace, stove, boiler or water heater’s factory recommended specification. Typically it’s Number 2 Diesel unless it is a stove pot or wick heated system. If you have a furnace or a boiler in your basement, you can assume it’s heating oil. Call a licensed and bonded heating oil furnace technician to tune up your furnace to confirm for sure. If you do not have one, Star Oilco can refer you to a number of reputable long-time firms who can help.

What Are Additives and Are They Worth it?

Heating oil additives are added to fuel in order to improve it’s long term storage and performance.  They are worth it and most reputable heating oil providers additize their fuel without an extra charge.  This is because most heating oil customers store their fuel for long periods of time.  If you are planning on storing heating oil for years you will need a fuel additive to keep that fuel in the quality needed for your furnace.

Star Oilco provides a premium diesel additive called Hydrotex PowerKleen to every gallon of heating oil we sell.  Beyond this stabilizers, if you are planning on storing fuel for years we recommend ValvTect Plus 6.  You will want to treat your fuel with a biocide like ValvTect Plus 6 to will kill any bacteria, yeast, algae, or other biological organism that can grow inside your heating oil tank.

For more on storing diesel or heating oil for long periods of time please read this article on long term fuel storage.

What Does Heating Oil Smell Like?

Heating oil smells like diesel. It is a diesel product and often, depending on location, it is the same as on-road diesel. It may be dyed to denote that it is an off-road fuel with a untaxed use. Heating oil is dyed red in the Pacific NW to show it is off-road diesel.

What is Heating Oil #2?

Heating Oil #2 is number 2 diesel or the standard diesel sold in most places for on-road diesel use. Heating Oil #2 is a slightly different specification than on-road diesel that allows for more sulfur. That is a big difference as far as the EPA is concerned. On-road and off-road vehicles in the U.S. are required to use ultra-low sulfur diesel. Heating oil systems can use low or high sulfur diesel fuels. Ultra low-sulfur diesel is the most common Heating Oil #2 fuel that is delivered by Star Oilco since it is a superior and cleaner burning fuel, in our opinion.

Where can I buy heating oil at the pump?

In the Pacific NW heating oil is ultra low sulfur diesel. Therefore, you can buy any diesel sold at a retail gas station, truckstop, farm supply or other liquid fuel seller.  Heating oil is dyed red to show that it is not taxed for on-road fuel use.  Other than that red dye, typical auto-diesel will work in your oil furnace if you need to supply it from a diesel can.

At What Temperature Does Heating Oil Freeze?

Heating Oil Gel Point:

In the Pacific NW we expect number 2 diesel heating oils to be operable beyond -10 degrees. The record cold weather in the Willamette Valley is above 0 degrees (recent decades 16 degrees was our record low in Portland). We do test and add additives to our fuels to ensure they meet this specification even if they contain 5% biodiesel blended into heating oil.

Kerosene Gel Point:

Kerosene fuels (Number 1 Diesel, Number 1 Stove Oil, and Kerosene labeled fuels) are expected to be good below -30 degrees and are designed to be used in high altitude applications. (Kerosene and jet fuels are often the same specification in the Pacific NW.)

B20+ Biodiesel Gel Point:

Biodiesel blends of B20 and above are assumed to be good to 20 degrees but if Star Oilco expects below-freezing weather, we highly recommend B5 as your delivered fuel. B99 biodiesel typically gels at 40 degrees, so it’s not a winter fuel unless you have a system designed to keep the fuel warm in the middle of winter.

What do “Oil Heating,” “Oil Fired Heater,” or “Oil Furnace” Mean When Referring to a House?

“Oil Heat” or “Oil Fired” refers to a heating system reliant on burning heating oil. Typically this is by use of a vaporizing burner that takes the combustible liquid that is heating oil and vaporizes it through a nozzle into an igniter that causes it to burn.  This system burns the heating oil, creating a great deal of heat that can warm air, water, or both to heat a home or commercial space.

Can Heating Oil Fumes Make You Sick? Are the Fumes Harmful, Dangerous, or Toxic?

NOTE: IF HEATING OIL HAS BEEN INGESTED PLEASE SEE A MEDICAL PROFESSIONAL.

Heating oil by itself is not dangerous or toxic if it come in contact with your skin.  It is easily washed off with soap and water.  A small amount of diesel spilled on the surface of the ground, typically will break down on it’s own in the presence of the environment.  A small amount spilled on concrete or asphalt can be cleaned up easily with dish soap and water. If your tank leaks and heating oil is soaked below ground this will not break down easily and will take professional help to treat.

The exhaust from heating oil systems contains carbon monoxide and carbon dioxide as well as particulates.  Heating oil and other diesel exhausts are very dangerous and toxic and should be avoided.  Do not allow exhausts of any kind to collect in an enclosed space.

Can Heating Oil Evaporate?

Heating Oil’s vapor point (the temperature it turns to vapor and evaporates) is around 140 degrees Fahrenheit.  Heating oil ignites at 160 degrees.  Typically in the Pacific NW the temperature (especially outside) is well below the vapor and flash point of diesel fuels including heating oil and kerosene. If spilled it will not usually evaporate. You can clean heating oil and diesel up with regular dish soap and water.

Can Heating Oil Vapor Explode? Can They Ignite?

Heating oil ignites at 160 degrees.  So unless the temperature is that high an explosion is not a risk.  Fire Code regulating heating oil tanks and placement takes this concern into account.  So typically except in extreme scenarios heating oil vapor does not pose an explosion risk.

If you drop a match into a cup of heating oil at room temperature it will go out.  If you hold a match to the surface of the heating oil in that cup the flame will get large and bright but the heating oil itself will not ignite.  Heating oil needs to be vaporized before it will ignite. It is a combustible fuel so it must be in a vapor form to light.  The vaporizing nozzle of your heating oil furnace turns diesel into a vapor mist easily ignitable.

Can Heating Oil Go Bad? How Long Can I Store Heating Oil?

Yes, heating oil can go bad. If you are planning to store heating oil for longer than a year, you should use a diesel additive that stabilizes fuel for long term storage. If you are storing the fuel as a back-up where you might go years without using it, you should also consider adding a biocide to ensure nothing grows in your tank. The two biggest threats to your fuel staying in specification are water and biological growth. Biological growth occurs inside the water that can collect in your tank bottom naturally through condensation over time.

Star Oilco treats 100% of our dyed fuels with Hydrotex Powerkleen to ensure that it is stable for storage for over a year. If you need to store it longer than that, we further recommend adding a desiccant breather to scrub moisture out of the air when your tank breaths, which protects it from additional water.

For more on additizing your heating oil for long term storage please follow THIS link.

Can a Heating Oil Tank be Outside?

Yes, heating oil tanks properly installed outside are perfectly safe and capable of ensuring your fuel stays clean and dry.

Are Oil Tanks Regulated?

Yes, at several different levels. With residential use, there are local jurisdictions’ building permit requirements for installation and safety. With commercial use, there is the same building permit regulation and usually an added level of Fire Marshall sign-off for siting of any tanks. In rural areas, regulations are different if the tank is associated with an agricultural use.

In Oregon and Washington, a 90 day temporary tank for construction purposes (to move from one tank to another in a formal process) is usually allowed, but you should ensure the temporary tank is a double wall tank and is in a safe place. If your tank leaks (or even if there is a suspicion of a leak), the Oregon Department of Environmental Quality and Washington Department of Ecology have an involved process to close out a leaking oil tank.  

Do I Need to do Maintenance on My Furnace? How Often?

Yes, you need to ensure you maintain your oil furnace. Star Oilco recommends getting a tune up annually or at least every other year.  If you are seeking a referral to a HVAC company that specializes in oil heat, call Star Oilco’s office 503-283-1256 and ask for a list of qualified license and bonded companies we recommend. You also want to check your oil furnace for water annually. Star Oilco can stick your tank for water at no charge upon request with a fuel delivery.

One of the great benefits of oil heat is that oil furnaces are known to last for over fifty years if maintained properly. Natural gas and propane furnaces typically wear out every ten to twenty years dependent on their construction. The primary wear consideration on any furnace is the heat exchanger. The heavy steel part takes the flame of burning fuel, transmits this heat to the air, and is then pushed to heat your home. Oil furnaces must be tuned up every year or two to ensure the heat exchanger is cleaned.

If you do not service the heat exchanger, it will collect soot. Soot insulates the heat exchanger unevenly and causes wear that will eventually lead to a crack. If a heat exchanger is cracked, the furnace is no longer safe to operate. Additionally, an annual tune-up will pay for itself by ensuring your furnace is burning at peak efficiency. You will want to replace your furnace air filter regularly on an annual basis.

How Do I Reduce My Consumption of Heating Oil?

Tuning your furnace annually or every other year is highly recommended. Adjusting the fuel air mixture for the most efficient combustion goes a long way to ensure you use as little heating oil as possible. Star Oilco has witnessed fifty and even seventy year oil furnaces operate at modern efficiencies when maintained regularly over their lives. Today, there are a host of high efficiency oil furnaces manufactured and supported to reduce your cost of fuel.  Additionally, confirming the envelope of your home is not drafty or needlessly wasting heat can go a long way in reducing your heating expenses.

How Can I Reduce the Cost of My Heating Oil?

The price of heating oil fluctuates frequently due to market conditions. Comparison shopping is your best way to ensure you pay the best possible price. One web based tool we have heard customers like to use to save time while shopping for heating oil is Fuelwonk.com.  It is free and easy to use.

Best Practices with a Fuel Tank

Even though the cost of fuel is dependent on the market and out of our control, there are best practices to reduce the amount of oil you’ll need. The temperature you keep your house will affect how much oil you go through. Keeping your temperature higher will lead to more oil burned during the winter months. How insulated your home is will also affect the amount of oil you burn. Having poor insulation will result in having your furnace running hotter for longer periods of time, increasing fuel use. Annual maintenance of your furnace will keep your furnace operating at top efficiencies. Having a well working and operating furnace will keep costs down by not wasting oil on an underperforming unit.

Heating Oil Discounts

Star Oilco also has a number of discounts and programs for price reduction. We offer $.05/gallon veteran and senior citizen discount. We frequently have discounts on Google and our social media pages so make sure to check those out. Mention where you saw it to receive the discount.

Heating oil customers at Star Oilco have the opportunity to enroll in our Equal Pay program. The program allows you to make equal monthly payments on future heating oil deliveries. As an Equal Pay customer, you will receive a discount of .20 cents per gallon on all heating oil deliveries. We also have an Autofill program which dictates you receive our best price as well as automatic deliveries. You don’t have to keep track of your fuel or when you need a delivery. We do the work for you!

If you do not like our price and someone else is cheaper let us know.  We will match their price.

Will Heating Oil be Phased Out?

Heating Oil is a modern fuel that uses today’s heating oils and biofuels.  The investments in research and development for heating oil furnace by the National Oil Research Alliance to use a wider variety of biofuels in higher lower CO2 blends have kept heating oil relevant in many applications.  As a heating fuel, it’s use will become more rural than urban rather than a phase out. As it is today, the use of heating oil will be used where natural gas is not available especially if the temperatures get below zero. Urban adoption of natural gas has increased, as it’s cheaper than heating oil due to increased fracking development of petroleum.

What are "Degree Days?"

Star Oilco uses a Degree Day system for our customers on Automatic Keep-Full Service.  We fill your tank before it needs it automatically. A statistical regression analysis correlates your typical use of heating oil in your home and the weather.  Our systems will track your usual fuel usage and we automatically schedule delivery to keep your tank full.

What is The Energy Content or "BTU's"?

The technical term “BTUs” refers to “British Thermal Units” which is a measure of energy content of a fuel. The energy content of diesel fuels can vary slightly by regions and specifications of those regions.  In the Pacific Northwest, heating oil is typically Ultra Low Sulfur Diesel with a blend of biodiesel content. This can range from 5% to 20% biodiesel added to the fuel. This means the exact BTU measured for a gallon of heating oil an slightly vary.

Source: US Alternative Fuel Data Center Fuel Properties Comparisons
Ultra Low Sulfur Diesel: 128,488 BTUs to 138,490 BTUs per gallon.
B5 Biodiesel is presumed to be about the same BTUs as ULS Diesel.
B100 Biodiesel: 119,550 BTUs to 127,960 BTUs per gallon.
B20 Biodiesel: 126,700 BTUs to 136,384 BTUs per gallon.

Get A Heating Oil Quote Today

  • This field is for validation purposes and should be left unchanged.