• 232 NE Middlefield Rd, Portland, OR 97211

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.

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What Are Our Options for Alternative Fuels? 1024 578 Star Oilco

What Are Our Options for Alternative Fuels?

What are our options for alternative fuel?

Biofuels are eco-friendly fuel choices because they are made from renewable resources and produce fewer emissions than fossil fuels. Biofuels and biodiesel can also be used to improve air quality. They also allow us to reduce the dependence we have on using fossil fuels. 

Biofuels are liquid fuels produced from biomass, which is organic matter such as plants, algae, and agricultural waste. Biofuels can be used to power vehicles, generate electricity, and heat homes and businesses.  Biofuels are renewable and can reduce emissions of greenhouse gases. They provide an alternative to fossil fuels and help to conserve natural resources. Reducing the emissions of greenhouse gases is an important factor in helping to combat climate change. Biofuels have the potential to be a significant part of the solution. Biofuels can reduce emissions of greenhouse gases by replacing fossil fuels, which are made from non-renewable sources. Using biofuels instead of fossil fuels can also help to reduce air pollution. 

Some common types of biofuels include: 

Ethanol

Ethanol is a type of alcohol that is made from fermented corn, sugarcane, and other crops. It is blended with gasoline to create E85, a fuel that can be used in flexible-fuel vehicles.  This type of fuel is cheaper than regular gasoline, and it is more environmentally friendly. It is also safer to store and transport than other types of fuel. The benefits of using ethanol fuel include reduced emissions of carbon dioxide, improved air quality, and increased energy security. It is also renewable and biodegradable, making it a more sustainable fuel choice. Additionally, the production and use of ethanol fuel can create jobs and support local economies. 

 

Biodiesel

Biodiesel is a type of diesel fuel that is made from vegetable oils, animal fats, and waste grease. It can be used in unmodified diesel engines as a drop-in solution. It is a renewable fuel and emits less carbon dioxide than petroleum-based diesel. Biodiesel is also less toxic and it’s biodegradable. The benefits of biodiesel include reduced emissions of carbon dioxide, sulfur dioxide, carbon monoxide, and unburned hydrocarbons; improved combustion efficiency and power output; improved lubricity; and improved fuel economy. Additionally, biodiesel is biodegradable and has a lower energy content than petroleum-based diesel, making it safer to handle and transport in the Portland, Oregon metro area as well as Vancouver, Washington. 

Biodiesel can be used in a variety of applications, including transportation, heating and electricity. Biodiesel is used in transportation to power diesel engines in cars, trucks, buses, and other vehicles. Biodiesel can also be used to heat homes and businesses. Biodiesel also can generate electricity in power plants.  

Biodiesel is a promising alternative to petroleum diesel, and its use is growing around the world. The United States is the world’s largest producer of biodiesel. 

Algae-based biofuels

Algae-based biofuels are a new type of biofuel that is made from algae. Algae are a rapidly renewable resource that can be grown in a variety of environments. Algae is a group of photosynthetic organisms that grow in water. Algae have the potential to produce significantly more oil than traditional biofuel crops, such as corn and soybeans, and they can be grown on non-arable land, such as saltwater or wastewater. This makes algae an attractive potential source of renewable fuel. 

When algae are grown in the right conditions, they can produce up to 77% oil, which can be converted into biodiesel, renewable diesel, or other biofuels such as ethanol, butanol and jet fuel. Algae-based biofuels have the potential to significantly reduce greenhouse gas emissions from transportation, electricity generation, and other industries. However, there are still challenges that need to be overcome before algae-based biofuels can be commercially viable. These challenges include scalable production, costs, efficient harvesting and efficient processing to extract the oil. There is a lot of research and development underway to overcome these challenges and with continued investment, algae-based biofuels have the potential to become a major source of renewable fuel in the future. 

 

Hydrogen

Hydrogen is a versatile energy carrier that has the potential to play a significant role in the transition to a clean energy future. It is the most abundant element in the universe and can be produced from a variety of sources, including natural gas, biomass, and renewable electricity. When used in a fuel cell, hydrogen produces only water and heat, making it a clean and efficient fuel source. 

Using hydrogen as a fuel provides clean burning, a high energy density, efficiency, among many other benefits. Hydrogen doesn’t produce any emissions of harmful pollutants which makes it an attractive option as a fossil fuel alternative. Hydrogen’s high energy density means that a relatively small amount of hydrogen can provide a lot of energy. Using hydrogen fuel cells to generate electricity are 2-3 times more efficient than internal combustion engines. It can also be used in a wide range of applications, including transportation, electricity generation as well as industrial processes.  

Some of the challenges we face with hydrogen as a fuel are its current methods of production. They are not always as clean or sustainable currently. Storing hydrogen, being a gas, requires specialized storage tanks. The infrastructure for transporting and distributing hydrogen is not yet fully developed.  

Overall, there is a growing interest in using hydrogen as a fuel source with very promising results and possibilities in our future. Governments and businesses all over the world have been investing in research and development to figure out solutions to these challenges in order to make hydrogen a more viable energy source.  

Renewable Diesel

Renewable diesel can also be known as hydro-treated vegetable oil (HVO) or green diesel, and is a type of biofuel that is chemically identical to petroleum diesel. It is produced from a variety of feedstocks, including vegetable oils, animal fats, and waste oils. Renewable diesel can be used in any diesel engine without modification, and it offers a number of environmental benefits over petroleum diesel, including: 

 

Reduced greenhouse gas emissions 

Renewable diesel (R99) reduces greenhouse gas emissions by up to 90% compared to petroleum diesel. R99 being cleaner and more efficient, makes it an attractive option for many transportation companies. 

 

Improved air quality 

Renewable diesel produces fewer harmful pollutants, such as particulate matter and sulfur oxides, than petroleum diesel. Additionally, renewable diesel is lower in carbon than petroleum diesel, making it a more sustainable option for transportation. Renewable diesel is also more efficient, reducing the amount of energy needed to produce the same amount of fuel. 

 

Biodegradability  

Renewable diesel is biodegradable, meaning that it breaks down naturally in the environment.  This helps to reduce the amount of harmful pollutants in the environment. Renewable diesel also reduces emissions of carbon dioxide, a major contributor to climate change. 

Renewable diesel is a promising alternative to petroleum diesel, and its use is growing around the world. The United States is the world’s largest producer of renewable diesel, and the European Union has a mandate to use 10% renewable diesel by 2030.  

Even more of the benefits of using renewable diesel:  

The use of renewable diesel helps reduce our dependence on fossil fuels since it is a renewable fuel.  

The local economy can be supported by renewable diesel, which is often produced from local crops.  

A number of sectors, including agriculture, manufacturing, and transportation, create jobs in the renewable diesel industry.  

Ultimately, renewable diesel is a clean and sustainable fuel that offers environmental and economic benefits. Around the world, its use is growing as an alternative to petroleum diesel. Renewable diesel helps to reduce air pollution, reduce greenhouse gas emissions, and reduce dependence on foreign oil. It is also a renewable and sustainable fuel source that can be used to produce electricity. As such, renewable diesel is an important option for reducing carbon emissions and improving sustainability overall. 

When we look at the variety of renewable and biofuel opportunities, there are a variety of ways that we can reduce our carbon footprint today without any modifications to our current engines. However, long term, we have opportunities that we can explore for where we believe that our future is going and the solutions that can allow for an even greater impact to our Pacific Northwest carbon footprint and reducing greenhouse gas emissions. Among all of the renewable resources, we can reduce air pollution, increase economic benefits and create a more sustainable future for the Portland, OR and Vancouver, WA metro areas. As technology continues to improve and the production of biofuels and biodiesel becomes more efficient, these fuels are likely to become more affordable and widely available. Feel free to give Star Oilco a call today to discuss your fueling needs today and how we can provide you with renewable sources today as a drop-in solution. 

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What Is Portland’s Renewable Fuel Standard? 1024 768 Star Oilco

What Is Portland’s Renewable Fuel Standard?

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

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

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

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What is the Portland's Renewable Fuel Standard?

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

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

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

What Does The Renewable Fuel Standard Mean For Me?

Portlands Renewable Fuel Standard Requirements

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

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

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

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

What Are Considered Wholesale Purchaser-Consumers ?

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

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

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

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

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

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

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

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

What Are The Requirements To Meet The RFS?

Wholesale Purchaser-Consumers are required to meet three primary components of the RFS:​

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

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

Biofuel Minimum Content Requirements for Wholesale Purchaser-Consumers​

  • WPCs in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they purchase for their vehicle fleet. Beginning July 1, 2024, all diesel purchased must include 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on July 1, 2026, and 99% on July 1, 2030.​
  • The biofuel content requirements will be enforced through random inspections of fleet facilities to see that they (1) have a contract in place with fuel suppliers that specifies that fuel meets the minimum blend requirements, or (2) verification of actual products purchased through testing or review of product transfer documents.

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

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

Selecting a compliance option for Wholesale Purchaser-Consumers​

  • WPCs will need to select a compliance option by the start of the compliance period, July 1, 2024.​
  • Portland Bureau of Planning & Sustainability (BPS) will provide notification about selecting compliance options by May 31, 2024.​
  • To receive notification, covered entities must be registered with the RFS Program. ​

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

Record Keeping Requirements for Wholesale Purchaser-Consumers​

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

  1. PTDs must include the type of renewable fuel, including biodiesel, renewable diesel, ethanol, or any blends of these fuels, and declare the volume percent of such renewable fuel.​
  2. PTDs must comply with OAR 603-027-0430 (1) (a) which includes identifying the quantity, the name of the product, the name and address of the seller and buyer, and the date and time of the sale.​
  3. WPCs using the Product Transfer Document compliance pathway must also ensure that fuel pathway codes issued by Oregon Clean Fuels Program are also included on a PTD associated with each delivery received by the WPC or have a contract with a fuel supplier specifying the carbon intensity requirements of PCC Chapter 16.60.​

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

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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.

B99 Biodiesel for Fleets & Heavy Equipment 150 150 Star Oilco

B99 Biodiesel for Fleets & Heavy Equipment

Using B99 Biodiesel in a Tier 4 Heavy Duty Diesel

B99 Biodiesel reduces CO2 footprint of a 105,500 GVW truck and trailer by more than half at a lower cost than petroleum diesel.

What is B99 Biodiesel?

B99 Biodiesel is as pure of blend of Biodiesel you can get in the United States and still participate in the incentives associated with this alternative fuel.  B99 is the product received by petroleum refiners, terminals, and truck stops to blend with petroleum diesel.  Biodiesel is a renewable, clean-burning diesel replacement.  B99 Biodiesel is a common blendstock with petroleum diesel (being 99% biodiesel).  It can be presumed that nearly every major truck stop throughout the US is consistently using either a blend of 5%, 10% or 20% of biodiesel   The reason for this is both due to its price advantage against petroleum currently as well as Federal/State laws requiring it’s use.

Why Higher Blends of Biodiesel Matter?

Biodiesel is a low CO2, net energy positive fuel.  Depending on the feedstock Biodiesel is made from a CO2 reduction of 30% to 80%+ can be expected compared to petroleum diesel.  As the West Coast (Oregon, Washington and California) ramps up CO2 regulations that charge an additional cost for carbon emissions associated with petroleum diesel the financial case for Biodiesel becomes obvious.  Early adopters will see direct financial benefit.

B99 Biodiesel for Fleets & Heavy Equipment

Star Oilco has fielded the Optimus Technologies system on our 105,500 GVW truck and trailers.  Star Oilco began with a single Freighliner truck and trailer operating a Cummins ISX as a trial.  This truck’s typical route was approximately 305 miles round trip from Portland, Oregon to Grays Harbor, Washington.  This run is from Star Oilco in Portland, Oregon to the Grays Harbor REG Biodiesel plant and back to the Portland terminals for delivery of this product.    Over the last year and a half this truck has performed amazingly well, the only maintenance concern is swapping the fuel filters more regularly with every oil change.  Mileage and power difference are negligible as noticed by drivers or our Elog system.  On a few occasions a loss of power was experienced requiring an in between service fuel filter swap.

This field trial of the Optimus Technologies system Star Oilco has regularly saved between $15 and $75 a day when running this dedicated route, depending on the cost of B99 Biodiesel versus petroleum ultra low sulfur diesel.  Consistently the price of B99 Biodiesel has been below petroleum diesel in the Portland, Oregon market. This has been due to a combination (or is effected by) RIN values, a Blender’s Tax Credit on biodiesel, and Oregon’s Clean Fuels Program which also prices the CO2 reduction value of B99 Biodiesel.   We see this trend continuing as an assumed market reality for biodiesel.

What is the business case for our deploying B99 Biodiesel Optimus Tech upfit kits?

The systems increase the intelligence of our late model trucks with their very complicated Tier 3 and Tier 4 emissions systems.   The Optimus Kit enables two saddle tanks to operate with the duty cycle of the truck. One tank (which we will be running B5 ULSD or R99 through) is dedicated to fuel the particulate trap and SCR systems.  These systems have extremely tight tolerances and tend to choke on higher blends of biodiesel.  By dedicating a tank with a smart controlling system we reduce the maintenance and concern with these after treatment systems hopefully extending the maintenance cycle on these traps by years while reducing inconvenient efficiency killing regens.

The Optimus Kit also enables a modern diesel engine to run B99 Biodiesel.  It does this by controlling the temperature of the fuel in it’s dedicated saddle tank and routing B99 to the engine when the RPMs and operating temperatures are best for this fuel. Upon start up and shut down the Optimus Technology kit will flush the engine, fuel rail, and injectors with the petroleum/R99 tank ensuring easy start up and no cold weather effects.  The B99 saddle tank is temperature controlled as well to enable performance in extreme weather.  When operating under load the Optimus Kit will move to B99 as the fuel into the engine.  As B99 Biodiesel has a substantial reduction of emissions, particulate, and other compounds when combusted; this further reduces the impact of miles on a truck to the particulate trap and it’s service needs.

Beyond this maintenance experience, the performance and function of the system has been indistinguishable to our other trucks running the same route.

Biodiesel Mandates in the Pacific Northwest

Oregon and Washington have passed legislation which puts a price on the CO2 emissions associated with petroleum diesel.   These laws mean that petroleum fuel costs more than biofuels with a low CO2 footprint.  These laws are also added on top of other mandates and incentives for biofuels.  Biodiesel blends between 5% and 20% are common on the west coast at every gas station, cardlock, and truckstop.

How Can I Utilize B99 or B100 in My Own Fleet? 

Star Oilco uses The Vector System developed by Pittsburgh-based Optimus Technologies. The Vector System is the only EPA-compliant biodiesel engine system and upgrades any medium or heavy-duty engine to operate on 100% biodiesel. It can be installed in as little as 12 hours. Learn more about The Vector System by contacting Optimus Technologies here directly or by reaching out to Star Oilco locally. 

 

 

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For more on Biodiesel, Renewable Diesel or Low CO2 fuels please see these other Star Oilco articles:

Every Question Star Oilco has been asked about Biodiesel

Every Question Star Oilco has been asked about Renewable Diesel 

Do you have questions about Renewable Diesel in Oregon 

Wet Hose Fueling Service in Portland, Oregon

About Diesel Fuel 

Biodiesel Use and Handling Guide 

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

The Future of Diesel Fuel: Trends & Outlook
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.

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.

This has caused quite a few changes in what fuel pumps have for fuel.  Diesel fuel buyers are noticing the bright yellow color of B20 biodiesel, the water clear color of Renewable Diesel or a 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 is a synthetic diesel fuel made from the same feedstock as biodiesel, but the finished product is hydrocarbon diesel.  Though it is a biofuel, it is also diesel. 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 for renewable diesel.  During the COVID collapse of 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.  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. RTHWEST?

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

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

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

Renewable diesel is a hydrocarbon diesel. 

 

It is diesel meeting the ASTM D975 specification for diesel. 

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

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

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

Renewable Diesel and Biodiesel Blend fuel dispenser label.

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

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

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

WHAT ARE THE DIESEL FUELS AND THEIR SPECIFICATIONS

Petroleum Diesel:
ASTM D975 Specification.

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

Renewable Diesel:
ASTM D975 Specification.

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

Biodiesel (Methyl Esther):
ASTM D6751 Specification.

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

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

THE HISTORY OF DIESEL FUEL SPECIFICATIONS IN THE UNITED STATES

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

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

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

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Heating Oil FAQ: Common Questions Answered 1024 683 Star Oilco

Heating Oil FAQ: Common Questions Answered

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.

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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.

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Close-up abstract image of diesel fuel with suspended droplets and fluid motion
What is Heating Oil? 1024 512 Star Oilco

What is Heating Oil?

                In the Pacific Northwest heating oil is diesel

New heating oil customers often ask us, “What is heating oil?” Heating oil is diesel fuel and there are several grades and types. For Star Oilco our standard heating oil product is a ultra low sulfur diesel with a 5% biodiesel blend in order to meet Oregon mandates for off-road diesel fuel. That way our heating oil trucks can also serve construction fueling, emergency back up generators, and other common off-road diesel uses.

Star Oilco has a simple Heating Oil FAQ available.

For full on fuel nerds though, check out this more in depth deeper technical dive below.  If we leave anything out please don’t hesitate to ask for those seeking a nerd-level understanding of heating oil, kerosene and bioheat.

There are three typically grades of heating oil you can order

Number 1 Diesel

Number 1 diesel is also called Kerosene or Stove Oil. This fuel has a lighter specification than typical heating oil which enables it to burn better in a “pot burner” or wick heater. Kerosene has its own specification as the fuel used by wick heaters. Kerosene is typically Number 1 diesel but not all Number 1 diesel’s are kerosene due to the need to be taken up by a wick heater. Any biodiesel content in a kerosene product WILL NOT work in a wick kerosene heater. So be very aware of confirming that your kerosene has never come into any contact with a biodiesel blend of fuel.

Red Number 2 Diesel

Red dyed diesel also called Heating Oil, Dyed Diesel, Off-Road Diesel is the default heating oil fuel. The fuel is dyed red to denote no on-road fuel taxes are attached to it. When you call and ask for heating oil, this is the fuel you are requesting. Clear or Green Number 2 Diesel is the fuel sold at retail gas stations and truck stops. That fuel will also work in your furnace, you just are paying for on-road taxes attached to that fuel.

Bioheat or Biodiesel Heating Oil

“Bioheat” is a blend of biodiesel and petroleum diesel to make a lower emission and lower CO2 heating fuel.  Typically Bioheat is Number 2 Heating Oil with a 20% blend of biodiesel or higher in it. It is a drop-in fuel for your heating oil furnace. There is no change other than routine maintenance is required. It is a cleaner burning fuel with a significant drop in CO2 emissions associated with your heating oil fuel consumption.  If you would like more information on biodiesel as a heating oil you can follow this link.

B20 Biodiesel Heating oil provider

Where do heating oil companies get their fuel?

In the Portland, Oregon market, diesel is fungible. Everyone buys or is expected to mix their fuel from each other in some way. Primarily this is due to the Portland/Vancouver market receiving most of its fuel down the Kinder Morgan-operated Olympic Pipeline. Which means all the refiners transporting fuel are mixing their product in transit. Additionally, there are shared terminal locations, which also have co-mingled owned diesel products.

Every refiner is typically expecting to mix their diesel and gasoline products. The difference is in the care a vendor takes to filter the fuel, using additives and continuously check their fuel quality. If you are buying at the absolute lowest price possible, know that there is an incentive to skip any added value of quality assurance.

Star Oilco buys our diesel products from a variety of vendors. The source refiner typically being either BP, Shell, Marathon(formerly Tesoro), Phillip 66, or a number of other refiners.

Portland, Oregon and Vancouver, Washington are not unique in in having fungible diesel and heating oil fuel specifications. Through its Pacific Operations unit, Kinder Morgan operates approximately 3,000 miles of refined products pipeline that serves Arizona, California, Nevada, New Mexico, Oregon, Washington and Texas. With roots dating back to 1956, it is the largest products pipeline in the Western U.S., transporting more than one million barrels per day of gasoline, jet fuel and diesel fuel to our customers. The company-owned terminals also provide additional services, such as liquid petroleum product storage and loading facilities for delivery trucks.

The heating oil and biofuel blends Star Oilco sells its customers

Heating oil is essentially off-road diesel. You can legally use a higher sulfur content for boilers and heating systems than you can off-road equipment and back-up generators. Regardless, we sell the lowest sulfur fuel available and optimize our fuel to be as versatile to our customers as possible. Construction equipment, back up generators and a host of others systems use off-road diesel, as do heating oil systems. Star Oilco sells the same diesel fuel specification for all of our off-road uses.

We also blend this fuel with biodiesel for our customers that want higher blends of low CO2 biodiesel fuels and heating oil. Star Oilco carries nothing but ultra low sulfur diesel fuels. In fact, our minimum blend of biodiesel is a B5 biodiesel blend (5% biodiesel and 95% petroleum diesel) and we also offer B20 (20% biodiesel blend) and B99 (99% pure biodiesel) for our customers.

About Diesel Fuels Specifications 

In the United States, diesel fuel is controlled according the American Society for Testing and Materials Standard D975-97. This standard describes a limited number of properties that diesel fuels must meet. It should be noted that the requirements are all performance-based, meaning they do not mandate the composition of the fuel, only the specific performance related requirements demanded of a fuel for a diesel engine. The requirements of D975 are described below.

ASTM Specifications for Diesel Fuel Oils (D975)*

*More info on ASTM specifications

Diesel fuel is characterized in the United States by the ASTM standard D975, which identifies five grades of diesel fuel. We are only going to talk about the two most popular commercially diesel fuel used — No 1 and No. 2 diesel. The ASTM D975 standard is made up of a series of different tests that check the characteristic ranges of a fuel to confirm it is adequate to operate in your equipment.

In simple terms, they are checking for specific gravity, the vapor point (when it turns into a gas), the flash point (when it catches fire), the dirt content, water content (how much microscopic entrained water) and a host of other requirements diesel must meet in order to be legal to be sold for use in your engine.

Grade No. 1-D and Ultra-Low Sulfur 1-D:

This is a light distillate fuel for applications requiring a higher volatility fuel to accommodate rapidly fluctuating loads and speeds, as in light trucks and buses. The specification for this grade of diesel fuel overlaps with kerosene and jet fuel, and all three are commonly produced from the same base stock. One major use for No. 1-D diesel fuel is to blend with No. 2-D during winter to provide improved cold flow properties. Ultra-low sulfur fuel is required for on-highway use with sulfur level < 0.05%. 

Grade No. 2-D and Ultra-Low Sulfur 2-D:

This is a middle- or mid-grade distillate fuel for applications that do not require a high volatility fuel. Typical applications include high-speed engines that operate for sustained periods at high load. Ultra-low sulfur fuel is required for on-highway use with sulfur level < 0.05%.

Biodiesel Fuels for Heating Oil

Biodiesel is a renewable fuel produced from oil seed crops, used cooking oil, and/or animal fat waste. It is chemically similar to petroleum diesel, and is produced by combining the oil stock with catalysts and then heating it. Biodiesel is not the same as vegetable oil or SVO (straight vegetable oil) and can be used in any diesel engine.

Biodiesel and biodiesel blends significantly reduce tailpipe emissions, especially carbon dioxide, carbon monoxide, sulfur dioxide and particulates (black smoke). ASTM D975 standard, as of 2008, allowed up to 5 percent biodiesel to be blended into the fuel. This is the called B5 — the ‘B’ stands for biodiesel and 5 stands for up to 5 percent biodiesel.

B6 to B20 – ASTM D7467-17:

Diesel blends up to 20% and more than 6% are referred to as B20. Biodiesel is a cleaner burning fuel than petroleum diesel. Using biodiesel can help reduce the amount of harmful emissions released into the air. Emissions such as sulfur dioxide, carbon monoxide, polycyclic aromatic hydrocarbons and other compounds found in diesel exhaust. Read the ASTM D7467-17 standards.

B99 & B100 –  ASTM D6751-15ce1:

These are fuels made of up to 100% biodiesel. Due to environmental regulations, most retailers will carry a maximum of B99. The standards for B99 and B100 are identical. Unlike gasoline, biodiesel can gel at cold temperatures. This can cause stress on fuel pumps and fuel injection systems, or can clog filters or even become too thick to pump to the engine. B99 has a higher temperature gel rate – meaning that it begins to cloud and thicken at higher temperatures – than conventional diesel.

“The cloud point of soybean biodiesel is about 34°F (1°C), whereas the cloud point for No. 1 diesel is about – 40°F (-40°C) and for No. 2 diesel between -18°F (-28°C) and +20°F (-7°C).” (Biodiesel Cloud Point and Cold Weather Issues) The solutions for cold weather involve additives and lower blends to ensure continuous operations. Read the ASTM D6751-15ce1 standards.

 

FURTHER READING ON DIESEL FUEL:

For a question and answer format about heating oil please see: Every question Star Oilco has been asked about Heating Oil

Here is an article about: an In-depth look at Biodiesel as a heating fuel 

Read about Star Oilco’s approach to Fuel Quality Assurance: Star Oilco – Precision Fuel Management

Read about dealing with biological growth in your diesel tank: Bioguard Plus 6 biocide treatment for diesel

Get Chevron’s Technical Manual to Diesel Fuel (essentially an easy to read text book on diesel): Chevron’s Fuel Technical Review

Get a white paper from Donaldson Filtration on tier 4 engines and fuel cleanliness: Donaldson on Tier 4 Engine Fuel Contamination

Read more about Donaldson Desiccant Breathers for bulk diesel tanks: Why use a Donaldson Desiccant Breather for a bulk diesel storage tank.

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

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

                      Emergency Back Up Generator Diesel Fuel Quality

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

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

 

Diesel Generator Fueling Service

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

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

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

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

CIM-TEK water absorber

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

Back up power generator diesel fuel quality.

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

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

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

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

Back Up Diesel Generator Fuel Service

Sampling and Onsite Testing of Fuel from Generator Diesel Tank:

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

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

 

Do you have questions about generator diesel fuel storage?

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

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  • 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.

 

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

Oregon Diesel Market Forecast Fall 2025

What market forces are impacting the Oregon diesel outlook?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Renewable Diesel in Oregon

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.

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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.

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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.

Renewable diesel imports to Oregon and Portland from Neste shown in EIA market volume chart

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.

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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

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