Bulk Fuel

We have daily routes for diesel fueling in Portland, Oregon and Vancouver, Washington. If you need diesel, kerosene, gasoline, biodiesel, or renewable diesel in bulk or as a wet-hose fueling service, we are ready for your next project.

multi colored fuel pump nozzles indicating different fuel types at Portland fueling station
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Clear Premium Non-Ethanol Gasoline

Do you need Non-Ethanol Gasoline delivered in the Portland, Oregon area?

If you are looking for Non-Ethanol Premium Gasoline delivered to your bulk tank or available at a Commercial Cardlock, Star Oilco has your needs covered in the Pacific Northwest.

Premium Unleaded without Ethanol in the Gasoline

Nonoxy Premium is the fuel you want in a gasoline tank if you are storing equipment with a full tank of fuel.

Premium gasoline without any ethanol blended into it goes by several names.  Clear premium unleaded, Non-Oxy (non-oxygenated) premium, nonethanol gasoline, or Clear 91 Octane are a few of the terms used.  Regardless of what it is called, getting gasoline without ethanol in the Portland, Oregon area requires buying a premium rated gasoline.

Clear Gasoline Premium bulk tank delivery

Why is the only ethanol free gasoline in Oregon and Washington premium grade of 92 octane?

This is because of several laws in Oregon as well as Washington that require the blending of 10% ethanol with all gasoline with the exception of premium grades for small engines, classic cars, aviation uses, and other type specification needs.

With the blend requirements for 10% ethanol this changed the way gasoline was supplied in the Pacific Northwest.  This was caused by the octane ratings of gasoline.  Regular gasoline is a 87 octane rating.  E98 ethanol has a 107 octane rating. With this blend requirement, the gasoline changed to account for the high octane of ethanol.  So refiners and sellers of gasoline began to use what the industry calls a “sub-octane” gasoline at 85 octane because the guaranteed blend of 10% ethanol would boost the octane rating back up to 87 octane.

This is usually where people ask: “Why does this effect premium unleaded as well, and why the heck is clear premium so expensive?”

There are three reasons nonoxygenated gas costs more:

1- Ethanol is a lower cost fuel than gasoline, so less ethanol means a slight higher price of the fuel.

2- Fewer terminals carry a non-ethanol option for Premium unleaded reducing options for customers demanding the fuel and therefore higher prices.

3- CO2 regulations have raised the cost of fuels without biofuel blends in them as well.

REASON 1

The reason why is for several decades before the 10% ethanol blend mandate, the industry has been upgrading retail gas stations, cardlocks, and truckstops to blend regular gasoline and premium gasoline to the midgrade gasoline at the island. With a 10% ethanol blend mandate for regular unleaded and midgrade this required any and all retailers with blending pumps to use E10 (10% ethanol) premium to be legal with their midgrade product sold.  This also means that a non-ethanol premium pump requires a stand alone pump, line set up, and infrastructure need.

REASON 2

The blend mandates for gasoline caused all of the major branded gas station chains to move to a defacto 10% blend at the terminal level reducing availability of non-ethanol or “Clear” premium gasolines. With far fewer petroleum terminals, brokers, refiners, and other upstream wholesale dealers of gasoline exiting the non-ethanol gasoline market due to far lower volumes of it, the price went up.  This also means that there is far less volume of ethanol free premium unleaded being sold at the wholesale level. Reducing the volume of sales of a single fuel grade raises the cost risk in a volatile commodity market like gasoline.

REASON 3

Recently the entire western coastal states (Oregon, Washington, and California) passed laws around CO2 emissions and liquid fuels like gasoline.  This means that there is a cost for fossil fuels over biofuels which prices into the gallon of fuel.  The less biofuel the higher the CO2 cost for those buying it. Add to that the western states have Cap and Invest rules which put a total limit on volumes of fossil fuels.  These “Cap at the Rack” charges for fossil fuel have been as high as a full $1 for a gallon of fossil fuel in past years.  Cap at the Rack charges on fossil fuel gasoline is usually in the $.40 a gallon added cost range of the price you pay.

If Clear Premium Gas is so expensive why do people still use it?

It is the optimal fuel for small engines that have a habit of being stored for long periods of time without use.  Nonethanol fuel stores stable for a longer time and has a better cold start performance than an E10 gasoline fuel that has sat for over a year.  Add to that it also does not absorb water or impact plastic/rubber/elastomer seals in equipment.  That is why people prefer it.  Sure, the limited availability of terminals carrying this product makes it a specialty in Oregon and Washington.  But the added cost is worth it for sensitive low tolerance engines or for vehicles with long periods of storage between uses.

Choose Star Oilco as your fuel provider for your clear premium non-ethanol gasoline

Do you need Refrigerated Trailer fuel? We fuel reefers automatically. 1024 768 Star Oilco

Do you need Refrigerated Trailer fuel? We fuel reefers automatically.

Refrigerated Trailer Fueling Service.

Dyed Diesel delivered to your trailer.

Need to keep your refrigerated trailer running during the summer heat in the Pacific Northwest? When temperatures rise, having a reliable reefer trailer is more important than ever to protect your inventory. That’s where Star Oilco comes in. Our team provides fast, dependable refrigerated trailer fuel delivery in Portland, Salem, Vancouver, and nearby areas. We’ll keep your cold storage trailers fueled and your goods safe, so you can focus on your business, not the weather.

Keep your refrigerated trailer running with our automatic keep full program.

Reefer trailer fuel service

Refrigerated trailers, often also called “reefers” in trucking.  These are popular in grocers, food processors, and many other industries. Reefers expand refrigerated inventory for grocers during the food rush of the holidays, and Star Oilco is ready to keep your inventory cold.

Star Oilco is the Portland area’s leading refueler of refrigerated trailers. We’re ready to help you expand your on hand inventory by supplying dyed diesel for your refrigerated trucks. We have the industry’s lowest price for service, a flat fee of $65 for service on an automatic keep full schedule. We’ll keep your inventory the right temperature this holiday season! Our trucks are ready and on the road driving past your location. This program is designed specifically in response to grocers and food processors needing a partner to simplify their refrigeration needs during their busiest time of year.

We make it one less thing to worry about.

How often should you fuel your refrigeration trailer?

Reefer Trailers typically can run for two days without a refuel if opened only once or twice a day.  Three days if you go a weekend without opening the trailer if fueled on Friday.  If you have staff leaving the door open regularly expect to need fuel daily.

Refrigerated trailer fueling. Keep full program.

Call for service. The first step is to open an account or run the service on a credit card, fleet card, or other payment method used by your business. 

Star Oilco can provide either Ultra Low Sulfer B5 Diesel, or low CO2 R99 Renewable Diesel to your reefer. All fuels are dyed and for off-road use to avoid the expensive taxes associated with using clear diesel from a gas station pump. All of our dyed diesel is treated with Hydrotex PowerKleen Premium Diesel. This additive guarantees long-term storage stability and improves performance at time of combustion.

A refrigerated trailer typically burns between 10 and 15 gallons a day in the Portland area during the winter. In our experience, fuel burns faster if the door is continually opened. Some customers are able to get by with service twice a week. Given this experience, we usually recommend a refill schedule of three days a week. This ensures you have no downtime or worry with the refrigerated trailer.

Customers on automatic keep full schedule receive emergency response services for fuel theft at no additional charge. We will be there for you to make running your business that much easier.

Also remember if you are storing a trailer onsite for back up or overflow purposes you will want to prepare the fuel in the tank for long term storage. Star Oilco’s fuel additives ensure the storage and make sure your refrigerated trailer fires when you need it to.

To set up Refrigerated Trailer Refueling Service call or email our office.

We are ready to keep you full.

Construction equipment fuel delivery service

Message us below if you want to get a call back from our Dispatch about setting up service or call 503-283-1256 for immediate service.

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Blue diesel-powered emergency generator outdoors
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Backup Generator Fuel

Star Oilco Generator Refueling Service in the Portland area.

Line up a Generator Diesel Keep Full account with Star Oilco before the bad weather.

Need fuel for your backup generator? Star Oilco delivers emergency diesel fuel right to your location before the power goes out and while you’re relying on it. We offer fast, reliable backup generator fuel delivery in Portland, Oregon, Vancouver, Washington, and surrounding areas. Whether you’re powering a business, hospital, data center, or another business that uses a backup generator, you can count on us to keep your generator fuel tank full, your lights on, your business running and your customers served.

 

Commercial Fleet Fueling in Portland

 

Remember that ordering diesel for your generator is a specialized service.

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

Order fuel treated for long term storage!

We often receive questions about backup generators, backup water pumps, and other emergency equipment. Fueling these critical pieces of equipment is a special kind of fueling service but we’re here to answer all your questions. We also encourage you to call with questions about generator fuel.  If you have questions about your building’s back up diesel generator’s fuel quality in the Portland, Oregon area we will sample and test your fuel at not cost with if you have an account with Star Oilco.

Generator Fuel is a specially treated oxidative stabalized off-road fuel designed to store for years.

Fuel for a backup generator is a specialized product. Besides the fuel, the service itself takes a vendor who understands your needs and can keep you up and running in an emergency.

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

Backup Generator Fuel in Portland

Beyond just the service provided by a truck and driver, you also want a vendor who offers a fuel stabilizer and biocide for the special long term storage needs of your backup generator. Star Oilco recommends you add a biocide and long term storage stabilizer to your fuel to ensure it is good whenever you need it. We use Valvtect Bioguard Plus 6 for generators, emergency water pumps, backup boiler fuel, and other long term storage purposes. This product kills any existing biological growth and stabilizes your fresh diesel fuel for long term storage. Make sure your diesel is ready the next time you need backup power.

As a complimentary service to our customers, Star Oilco will also test fuel for its quality. If you want to confirm fuel quality at the time of a top off, let us know and we will ensure the driver has a sample kit to get your backup fuel tested for peace of mind.

Feel free to message us if you need a backup tank filled. If you are in charge of Corporate Fueling, please call with any questions you may have.

Read more about stabilizing your generator fuel for long term storage.

Keep it simple with Star Oilco. We make it easy for you to be prepared. Don’t wait for a power outage to find out your generator is low on fuel. Trust Star Oilco for fast, dependable diesel fuel delivery for backup generators in Portland, Salem, Vancouver, and throughout Oregon and SW Washington. Whether you need on-site generator fueling, dyed diesel, or emergency fuel service, we’re ready to help. Call (503) 283-1256 today to schedule your standby generator fuel delivery and ensure your power stays on when it matters most.

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When To Use Off-Road Diesel in Portland, Oregon

Off-road diesel is an important fuel that powers heavy equipment and machinery for industries like construction, farming, and transportation. It’s a popular choice because it’s affordable and reliable for tough jobs that need a strong energy source. In the Portland, Oregon metro area, fuel rules are getting stricter, especially with laws pushing for cleaner, renewable fuels. That means businesses using off-road diesel need to stay informed about the latest regulations and fuel options to keep running smoothly and legally.

This guide breaks down everything you need to know about off-road diesel, including how it’s used, the laws surrounding it, and its impact on the environment in Portland. It also looks at the challenges and benefits of switching to cleaner fuels. Whether you run construction equipment or want to learn more about renewable diesel options, this guide will help you understand what’s needed to keep up with Portland’s changing fuel standards while keeping costs low and reducing pollution.

1. Definition and Uses of Off-Road Diesel 

Off-road diesel, often referred to as “dyed diesel,” is a specialized fuel used exclusively in off-road applications. It is chemically identical to on-road diesel but contains a red dye that differentiates it for regulatory purposes. 

Common Applications of Off-Road Diesel: 

  • Construction equipment such as excavators, bulldozers, and cranes. 
  • Agricultural machinery like tractors and combines. 
  • Generators and other stationary equipment used on job sites. 
  • Marine vessels operating in inland or coastal waters. 
Excavators parked at a construction site during sunrise

The red dye in off-road diesel is a critical feature that ensures compliance with tax exemptions and usage restrictions mandated by federal and state regulations. This dye serves as a visual marker to easily differentiate untaxed off-road diesel from its taxed on-road counterpart, streamlining inspections and enforcement efforts. By law, off-road diesel is specifically designated for vehicles and machinery that operate exclusively off public roads, such as construction equipment, agricultural machinery, and generators. The red coloration not only identifies the fuel’s intended purpose but also acts as a deterrent against improper use in on-road vehicles, where the financial and legal penalties for misuse can be significant. Using red-dyed diesel outside its prescribed applications is considered tax evasion and can result in hefty fines and legal consequences. This visible distinction ensures transparency and accountability in fuel usage while supporting the infrastructure and industries reliant on off-road diesel. 

Off-road vehicle tire tracks in remote open terrain

2. Legal Considerations 

While off-road diesel is essential for many industries, it comes with strict legal guidelines. Using dyed diesel in on-road vehicles is a serious offense. 

Penalties for Misuse: 

  • In Oregon, using off-road diesel in on-road vehicles can result in fines of up to $10,000 per day. State authorities regularly perform roadside inspections to ensure compliance. 
  • Misuse can also lead to the revocation of fuel tax exemptions for businesses. 

To avoid these penalties, businesses must implement strict protocols to ensure the proper segregation of fuels and comprehensive employee training on the correct applications of dyed diesel. This includes maintaining dedicated storage tanks for dyed diesel to prevent accidental contamination with on-road fuel. Employees should be educated about the legal ramifications of misuse, as well as the operational differences between dyed and clear diesel. Regular audits of fuel usage logs and equipment can further enhance compliance. Additionally, businesses can leverage technological solutions like fuel monitoring systems to track usage and ensure that dyed diesel is utilized exclusively for off-road applications. Such measures not only mitigate the risk of hefty fines but also promote efficiency and accountability within operations, safeguarding the reputation and financial stability of the organization. 

3. Portland’s Renewable Fuel Standard 

Portland has been at the forefront of adopting renewable fuel standards (RFS) to reduce its carbon footprint. These standards directly impact off-road diesel and its renewable counterparts. 

Phased Renewable Content Requirements: 

  • By 2024, diesel sold in Portland must contain at least 15% renewable content. 
  • By 2030, this requirement will increase to 99%, effectively transitioning the market towards renewable diesel and biodiesel. 
Portland Old Town sign representing the city’s commitment to renewable fuel standards

Impact on Off-Road Diesel Users: 

  • Businesses will need to adapt to the changing fuel composition. 
  • Equipment compatibility and performance with renewable diesel must be assessed to ensure seamless operations. This involves evaluating whether older engines and fuel systems can handle the chemical properties of renewable diesel, which may differ from traditional ultra-low sulfur diesel (ULSD). Renewable diesel, while chemically similar to petroleum-based diesel, can have slight variations in viscosity and lubrication properties that might affect certain types of equipment. For optimal performance, businesses should consider consulting with equipment manufacturers or fuel suppliers to determine the suitability of renewable diesel for their machinery. Furthermore, implementing a phased approach to testing and monitoring fuel performance can help identify and address potential issues before transitioning entirely to renewable options. By ensuring compatibility, businesses can maximize efficiency and contribute to Portland’s broader environmental goals. 
Green diesel nozzle filling off-road fuel tank labeled for ultra low sulfur diesel

4. Environmental Impact 

Transitioning to renewable diesel and biodiesel offers significant environmental benefits, aligning with Portland’s goals to combat climate change. 

Key Benefits of Renewable Diesel: 

  • Reduced Carbon Intensity: Renewable diesel has a lower carbon intensity compared to traditional diesel, significantly reducing greenhouse gas emissions. 
  • Improved Air Quality: Lower emissions of particulate matter and nitrogen oxides contribute to cleaner air in the Portland metro area. 

Portland’s stringent fuel standards aim to cut carbon emissions by integrating renewable fuels, contributing to a sustainable and eco-friendly urban environment. These measures align with the city’s broader goals to become a leader in climate action and renewable energy adoption. By mandating the use of renewable diesel and biodiesel, Portland reduces its reliance on fossil fuels, helping to lower greenhouse gas emissions and improve air quality. This shift also supports the development of renewable fuel infrastructure and incentivizes innovations in sustainable energy technologies. Furthermore, these standards encourage local businesses to adopt environmentally responsible practices, fostering a culture of sustainability that benefits both the economy and the community. As Portland continues to implement these changes, it sets a benchmark for other cities aiming to combat climate change through progressive fuel regulations. 

5. Availability and Delivery 

Portland is home to several suppliers catering to the off-road diesel market, offering both bulk delivery and local fueling stations. 

Local Suppliers: 

  • Companies like Star Oilco provide dyed diesel in bulk quantities, tailored to industries requiring consistent fuel supplies. 
  • Fuel delivery options include on-site tank refills for construction sites and remote locations. 
Star Oilco technician testing off-road diesel fuel quality with a funnel and filter on-site in Portland OR

Businesses can rely on bulk delivery services for operational efficiency, ensuring equipment is fueled without delays. Bulk delivery eliminates the logistical challenges of transporting fuel to job sites, allowing companies to focus on their core operations without interruptions. Suppliers in Portland often provide flexible delivery schedules, ensuring that fuel needs are met even during peak demand periods. Additionally, bulk delivery services often include on-site fuel storage solutions, enabling businesses to maintain reserves for unforeseen requirements. This level of convenience and reliability ensures that critical operations, such as construction projects or agricultural activities, can proceed smoothly without fuel shortages impacting productivity. By leveraging these services, companies can streamline their operations and enhance overall efficiency. 

Star Oilco diesel fuel truck servicing portable generators on a snowy Portland job site

6. Cost Considerations 

Off-road diesel is less expensive than its on-road counterpart due to tax exemptions. However, the shift to renewable fuels may impact costs. 

Factors Influencing Costs: 

  • Tax Exemptions: Off-road diesel is exempt from federal and state road taxes, resulting in lower per-gallon costs. 
  • Renewable Fuel Standards: Increased renewable content may raise production costs, potentially leading to higher prices for end-users. 

Monitoring market trends and negotiating supplier contracts can help businesses manage fuel expenses effectively. Market fluctuations in crude oil prices, changes in renewable fuel standards, and supply chain disruptions can all influence the cost of off-road diesel. By staying informed about these factors, businesses can better anticipate price changes and adjust their budgets accordingly. Establishing long-term relationships with reliable suppliers can also secure more favorable rates and ensure consistent fuel availability. Additionally, investing in fuel-efficient equipment and adopting best practices for fuel storage and usage can help minimize waste and reduce overall costs. Proactive strategies like these enable businesses to remain competitive while navigating the complexities of the evolving fuel market. 

7. Future Trends 

The future of off-road diesel in Portland is closely tied to advancements in renewable energy and regulatory changes. 

Key Trends: 

  • A gradual shift from ultra-low sulfur diesel (ULSD) to renewable diesel. 
  • Increased focus on carbon intensity metrics to measure and reduce emissions. 
  • Technological innovations in fuel storage and distribution to accommodate renewable blends. 
Star Oilco fuel truck delivering to a construction jobsite in Portland

By staying informed about these trends, businesses can position themselves for success in a rapidly evolving energy landscape. The transition towards renewable diesel, for instance, offers both challenges and opportunities for industries dependent on fuel. Companies need to evaluate their current fuel strategies and determine how to integrate renewable options without disrupting operations. This involves not only upgrading equipment where necessary but also training staff on the use of new fuel types. Furthermore, staying ahead of technological innovations—such as advanced storage solutions or cleaner combustion technologies—can provide a competitive edge. By embracing these developments, businesses not only comply with regulations but also demonstrate their commitment to sustainability and innovation, fostering trust and loyalty among customers and stakeholders. 

Frequently Asked Questions About Off-Road Diesel

Finding reliable suppliers with consistent availability is a common challenge, especially as the demand for renewable fuels grows. Businesses must navigate a competitive market to identify suppliers who can meet their specific operational needs, whether through bulk delivery or on-site fueling options. Reliable suppliers often offer additional services, such as flexible delivery schedules, fuel monitoring, and emergency refueling, which are essential for maintaining consistent operations. Additionally, the shift towards renewable diesel means that suppliers must stay ahead of regulatory changes and ensure they provide compliant fuel blends. Partnering with established, well-regarded suppliers can help businesses reduce downtime, improve efficiency, and ensure they meet both operational and environmental goals. Investing time in research and forming long-term partnerships with suppliers can mitigate risks and streamline fuel logistics for industries relying on off-road diesel. 

Adapting to renewable fuel standards and ensuring equipment compatibility requires a proactive approach by businesses to seamlessly transition their operations. Renewable diesel, while chemically similar to traditional ultra-low sulfur diesel (ULSD), can have slight differences in physical properties such as viscosity and lubrication. These differences may necessitate modifications to older engines and equipment to maintain efficiency and prevent wear. Additionally, businesses need to assess their existing fuel storage and handling systems to ensure compatibility with renewable blends, which might behave differently under various environmental conditions. Partnering with equipment manufacturers, fuel suppliers, and industry experts can help identify and implement solutions tailored to specific operational needs. By staying informed and prepared, businesses can not only meet regulatory requirements but also benefit from the improved environmental performance and potential long-term cost savings associated with renewable fuels. 

Off-road diesel is a critical energy source utilized across various industries for powering construction equipment such as excavators, bulldozers, and cranes, which are indispensable for infrastructure development. It is equally essential for agricultural machinery like tractors, combines, and other specialized farm equipment that sustain food production and farming operations. Additionally, off-road diesel is widely employed in generators, providing reliable backup power for construction sites, remote areas, and emergency scenarios. Marine vessels, particularly those operating in inland waterways or coastal regions, also depend on off-road diesel for propulsion and auxiliary power. This specialized fuel ensures that vital machinery operates efficiently, supporting economic activities and maintaining productivity in diverse sectors.

No. Using dyed diesel in on-road vehicles is illegal and subject to significant fines due to its tax-exempt status and the strict regulations governing its use. These penalties are in place to ensure that dyed diesel is only utilized in its intended applications, such as off-road equipment and machinery. Enforcement agencies conduct random inspections and fuel tests to identify misuse, which can result in fines up to $10,000 per day in Oregon. Misusing dyed diesel not only leads to financial repercussions but also undermines the funding mechanisms for road maintenance, as road taxes are critical for infrastructure development. Businesses and individuals must remain vigilant and ensure compliance to avoid these severe consequences. 

Traditional off-road diesel contributes significantly to air pollution due to the release of greenhouse gases, particulate matter, and nitrogen oxides during combustion. These pollutants have far-reaching impacts on air quality, public health, and the environment, especially in urban areas like Portland where industrial and construction activities are prevalent. In contrast, renewable alternatives such as biodiesel and renewable diesel dramatically reduce emissions, including carbon dioxide and harmful particulates, making them a more sustainable choice. These renewable fuels are produced from non-petroleum sources such as waste oils, animal fats, and plant-based feedstocks, which not only lower their carbon intensity but also promote a circular economy. The adoption of renewable diesel in off-road applications aligns with Portland’s goals to reduce its environmental footprint, improve urban air quality, and mitigate climate change effects, setting a model for cleaner industrial operations statewide. 

Yes, off-road diesel is flammable and must be handled and stored with care. Due to its combustible nature, it’s essential to follow strict safety protocols when storing and transporting off-road diesel. Fuel should be kept in approved containers that are properly sealed to prevent leaks and vapor release. Storage areas should be well-ventilated and located away from sources of heat or open flames to minimize the risk of ignition. Additionally, fire suppression systems and emergency response plans should be in place in facilities where large quantities of off-road diesel are stored. Regular maintenance of fuel storage tanks, including inspections for corrosion or damage, further reduces the risk of accidents and ensures the long-term safety and integrity of the fuel. 

Cold temperatures can cause diesel to gel, significantly impacting engine performance and fuel flow in off-road equipment. As temperatures drop, the paraffin wax in diesel begins to solidify, creating a thick, gel-like consistency that can clog fuel lines and filters. This issue is particularly concerning in Portland during the winter months, where subfreezing conditions are common. To prevent gelling, operators should consider using anti-gel additives specifically formulated for cold weather. These additives lower the fuel’s pour point and cold filter plugging point, ensuring that diesel remains fluid even in extreme temperatures. Additionally, preheating fuel tanks or using insulated storage solutions can further mitigate the risks associated with cold weather. By taking these precautions, businesses can maintain operational efficiency and avoid costly downtime caused by gelled diesel.

Off-road diesel is exempt from road taxes, which makes it a cost-effective choice for industries operating heavy machinery and equipment. However, this tax exemption comes with stringent regulations to ensure that the fuel is used exclusively for its intended off-road purposes. Misuse, such as using dyed diesel in on-road vehicles, can lead to severe penalties, including fines of up to $10,000 per day in Oregon. Enforcement agencies frequently conduct inspections to detect improper use, emphasizing the importance of compliance. Businesses must educate their teams on proper fuel usage, maintain accurate records, and implement strict oversight to prevent accidental or intentional misuse. Beyond financial implications, non-compliance can damage a company’s reputation and disrupt operations.

Portland’s renewable fuel standards mandate increased renewable content in diesel, progressively reducing emissions over time and setting a strong example of environmental leadership. These standards not only focus on lowering greenhouse gas emissions but also encourage the adoption of innovative fuel technologies like renewable diesel and biodiesel. By requiring a phased increase in renewable content, the city ensures a gradual yet impactful transition, giving industries the time needed to adapt while aligning with long-term climate goals. This approach supports local economic growth by fostering investments in renewable energy infrastructure and creating opportunities for green technology advancements. As businesses comply with these standards, Portland strengthens its position as a pioneer in sustainable urban development. 

Dyed diesel is visually identifiable by its red color, distinguishing it from clear (on-road) diesel. The red dye is added to off-road diesel as a regulatory marker to signify its tax-exempt status and restricted use in off-road applications. This vivid coloration ensures easy identification during inspections and helps prevent accidental or intentional misuse. While chemically identical to on-road diesel, the presence of the dye plays a crucial role in compliance and enforcement, allowing authorities to quickly verify that fuel is being used appropriately. This distinction is essential for maintaining the integrity of tax systems that fund public infrastructure while supporting industries that rely on cost-effective fuel solutions. 

Dyed diesel is exclusively designated for off-road use and benefits from tax exemptions, making it a cost-effective option for industries that rely heavily on heavy-duty equipment and machinery. In contrast, clear diesel is taxed to fund public road infrastructure and is mandated for use in on-road vehicles. The differentiation is not merely a technicality but a legal requirement, with dyed diesel being subject to strict usage regulations. This separation ensures that industries using off-road diesel gain economic advantages while maintaining compliance with tax laws designed to support public infrastructure projects. The clear distinction between dyed and clear diesel fuels helps streamline enforcement and minimizes misuse, ensuring fairness and accountability in fuel taxation systems. 

Off-road diesel is typically ultra-low sulfur diesel (ULSD), which reduces harmful emissions and complies with environmental regulations. The transition to ULSD represents a significant step forward in minimizing the environmental impact of diesel fuel. By drastically reducing sulfur content, ULSD helps to lower the emissions of sulfur dioxide, a major contributor to acid rain, and particulate matter, which is harmful to respiratory health. This compliance with environmental standards is particularly important in urban areas like Portland, where air quality is a key concern. Furthermore, ULSD enhances the performance of advanced emission control technologies, such as diesel particulate filters (DPFs) and selective catalytic reduction (SCR) systems, allowing modern engines to meet stricter emissions requirements. The widespread adoption of ULSD underscores the diesel industry’s commitment to sustainability while ensuring that off-road diesel remains a reliable and efficient energy source for heavy-duty applications.

Use insulated or heated storage tanks and anti-gel additives during colder months to maintain fuel quality. Insulated tanks help to regulate temperatures, preventing the fuel from reaching conditions where gelling typically occurs. Heated storage options further ensure that the diesel remains fluid, even in extreme cold, by maintaining a consistent temperature above the gelling threshold. Anti-gel additives work by lowering the pour point and cold filter plugging point of the diesel, allowing it to flow smoothly through the fuel system. Additionally, regular monitoring of fuel tanks for condensation or water contamination is crucial during winter months, as water can exacerbate gelling issues. Combining these strategies provides comprehensive protection against cold-weather challenges, ensuring that equipment operates reliably in harsh conditions.

Off-road diesel is an indispensable resource for industries operating in the Portland metro area, serving as the backbone for critical operations in construction, agriculture, and logistics. Understanding the nuances of its uses, from powering heavy machinery to fueling generators, is essential for businesses aiming to maintain seamless operations. Moreover, staying informed about the legalities and environmental impacts of off-road diesel ensures compliance with stringent state and federal regulations, protecting businesses from costly penalties. As Portland takes bold steps towards adopting renewable diesel, industries have the opportunity to align their fuel strategies with the city’s ambitious sustainability goals. Embracing these changes not only reduces carbon footprints but also positions businesses as leaders in innovation and environmental stewardship, fostering a competitive edge in an increasingly eco-conscious market. 

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.

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.

OREGON CLEAN FUELS PROGRAM

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

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

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

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

RENEWABLE DIESEL AND BIODIESEL SUPPLY IN OREGON

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

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

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

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

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

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

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

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

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

US BLENDERS TAX CREDIT EXPIRATION IMPACTING OREGON

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

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

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

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

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

THE FEDERAL RFS AND RINS

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

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

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

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

CONCLUSION

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

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

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

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

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

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

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

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

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

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

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

Reach Out To Our Team

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

home insulation representing energy efficiency for renewable fuel standard compliance in Portland Oregon
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What Is The Renewable Fuel Standard In Portland?

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

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

Portland’s Phases To Implement Almost 100% Renewable Diesel

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

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

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

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

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

Focus on Lower-Emission Biofuels

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

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

Exemptions and Implementation Details

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

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

Impact on Businesses and Consumers

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

Contact Us Today To Discuss What This Means For Your Business

A Step Forward for Cleaner Transportation

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

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

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

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

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Green diesel nozzle filling off-road fuel tank labeled for ultra low sulfur diesel
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Every Question About Off-Road Diesel

Got questions about red dyed diesel? We have answers!

If you don’t find the answer you’re looking for related to red dyed diesel (or off-road diesel) reach out to us directly and we’d be happy to help answer your questions.

Red Diesel is off-road diesel, in the United States this fuel is denoted with a red dye. The dye marks this as fuel for off-road equipment and vehicles and as such it doesn’t have road fuel taxes included in the priceThis dye takes a great deal of clear fuel to dilute so it makes it very obvious if an on-road vehicle has been using off-road untaxed fuel. Tax authorities can and do check for vehicles using off-road red diesel in on-road vehicles. They do this by using a black light to spot any residual presence of dye in the fuel as well as at key places in the engine compartment.

On-road diesel is clear or slightly green. Refineries place a green dye into diesel fuel which is obvious if fuel is freshly dispensed into a bottle to observe its color. As fuel ages this dye fades to yellow or darker colors. Part of a visual observation to inspect diesel fuel quality is to check the fuel for a “bright” appearance with the slight green dye being a giveaway that the diesel is fresh and in good condition.

Nearly all diesel has dye in it. Typically when talking about dyed diesel, we’re referring to a red dye added to off-road diesel. Off-road diesel is normally used for heating oil, construction fueling, agricultural use, and other off-road equipment not used on the highway system where fuel taxes would be required by law.

comparison chart showing difference between off-road diesel and on-road diesel fuel in Portland OR

Why is diesel dyed?

Diesel is dyed in order to denote if it has paid road tax or not. On-road diesel in the United States usually has a light green tint to it. Off-road diesel has a red dye to denote it has not paid road taxes as required by all states and the Federal government.

What is off-road diesel?

Off-road diesel is diesel fuel dyed red to show it is untaxed and available only for off-road fuel uses such as construction fueling, equipment never used on a public road, agricultural use, heating oil, boiler fuel, and other non-taxed diesel fuel uses under state and Federal fuel tax law. In Oregon, with proper paperwork, some off-road uses can buy on-road fuel with the Oregon state tax exemption.

What is farm diesel?

Farm or diesel for agricultural use is off-road diesel that is not charged on-road fuel taxes. Agricultural use fuel is a tax-exempt use of diesel fuel. If diesel is burned on a farm and can be tracked for such, taxes can be avoided. Farms are allowed to receive clear diesel without road taxes charged on it in Oregon. Often it is dyed red to denote it is tax free. In Oregon, where P.U.C. for trucks over 26,000 GVW pay a weight mile tax instead of a per gallon state road tax, some farms will track their use of clear diesel so they can file for Federal road taxes on off-road usage.

Contact Us Today To Order Your Off-Road Diesel

Star Oilco technician testing off-road diesel fuel quality with a funnel and filter on-site in Portland OR

All diesel sold in the United States typically has some dye in it. On-road diesel usually has a slight green tint to it. This is a dye added by either the refiner or terminal provider with the fuel. Off road diesels are dyed red to denote that the fuel is untaxed and is for use in off-road purposes only.

Solvent Red 26 and Solvent Red 164 are the allowed dyes prescribed by the United States Internal Revenue Service for marking diesel as for un-taxed off-road use only.

Off-road diesel is classified as a Class II combustible liquid by the National Fire Code. A flammable fuel is one with a flash point below 100 degrees F. Diesel’s flash point is between 126 and 205 degrees F (typically assumed to be about 160 degrees F)That classifies it as a Class II combustible.

Fuel taxes charged is the big difference between the two fuels. All on-road diesel is clear or greenish in color to denote it is both ultra-low sulfur diesel and the on-road fuel taxes associated with using it to power a highway vehicle have been paid. Dyed fuel means that fuel taxes are not paid and that the fuel can not be used to power a vehicle on a public road.

It depends on the sulfur content of the fuel and the year/engineering of the truck.  If your dyed fuel is ultra low sulfur it is typically the exact fuel as on road diesel with an added injected red dye to denote it is untaxed for off road use only.

Red Dyed fuel can occasionally be low sulfur or high sulfur content.  That sulfur content will create real issues with a  post 2007 pick up or commercial diesel truck with a tier 3 or tier 4 emission system.  Most diesel in the US today including off-road diesel is ultra low sulfur (under 15 ppm sulfur). Low sulfur diesel is over 15 parts per million and can be as high as 500 ppm.  High sulfur diesel is over 500 ppm and can range in the thousands of parts per million.  That sulfur means far more soot and black smoke out of your tail pipe.  If you are “rolling coal” out of a modern diesel that’s bad for the truck as well as violates emissions laws in the US.  Similarly if you are using a 2007 or newer truck it will have very tight tolerances on the fuel injectors which can more easily coke up if running a higher sulfur or even dirtier specification diesel.  It is recommended to use ultra low sulfur fuel in all equipment.

It is illegal because diesel used for on-road use has taxes to pay for those roads. These taxes are charged at a federal, state, and municipal level depending on where you are at.  Off road diesel has a red dye injected into it at the time of loading the fuel delivery truck.  This loading of a fuel truck at a terminal is the point of taxation and tracking for diesel down stream in the economy.  If you see a fuel with a red dye, it is untaxed.  To use this in an on-road vehicle if you get caught can result in huge fines. In Oregon it could be as much as $10,000 a day for use of red dyed diesel in an on road use.  It is not uncommon for scale stops of commercial tanks to flashlight a saddle tank and check for any evidence of dye in fuel at a DOT scale stop.

Is off-road diesel or dyed diesel high sulfur diesel?

Dyed diesel (or off-road diesel) can be high sulfur fuel. High sulfur diesel is defined as diesel fuel with over 500 parts per million of sulfur content.

Is off-road diesel or dyed diesel ultra-low sulfur diesel?

Off-road and dyed diesel fuels can be ultra-low sulfur but are not guaranteed to be. There has been a consistent push to reduce sulfur in all fuels in the United States as led by EPA regulation. In recent years, EPA standards require off-road construction and agricultural equipment to have an emissions system that allow ultra-low sulfur to operate without major problems. So today’s off-road diesel being delivered is ultra-low sulfur. If you have a tank with old stored dyed red diesel fuel in it, you can assume it has a higher than ultra-low sulfur content.

What is dyed ULSD fuel?

Dyed ULSD fuel is ultra-low sulfur diesel with a red dye in it to denote that it is for off-road or untaxed purposes only. These purposes are typically for heating oil, construction fuel, agricultural fuel, generator fuel or other off-road uses. The “ULSD” is an acronym for ultra-low sulfur diesel.

Dyed diesel can be either #1 or #2 diesel. Both fuels require a red dye in them to confirm they are untaxed and cannot be used for on road fuels.

Dyed diesel and off-road diesel can be kerosene (which crosses as #1 diesel fuel), but not necessarily. Do not assume a dyed fuel is kerosene, which is a rarer fuel. Kerosene is different than #1 diesel for one characteristic: its confirmed ability to be absorbed and taken up by a wick. All kerosene is #1 dieselNot all #1 diesel fuels are kerosene. The same goes for dyed diesels and off-road fuels. All dyed kerosene is dyed and off-road diesel. Not all dyed fuel is kerosene.

Yes, dyed diesel and off-road diesel are stove oil. Typically a #1 stove oil or #2 stove oil, similar to diesel. Historically stove oils had a slightly different set of specification concerns which is why they were called “stove oils” versus diesel. When petroleum refineries distilled crude oils to get diesel range fuels, it was less exact than it is today with hydrocracking technology. Today with both oil refinery technologies and the EPA emission regulations, the number of distillate range fuel specifications is far more consolidated in order to ensure compliance with EPA and state rules. If your heating appliance is demanding stove oil, it typically needs a #1 stove oil or #1 kerosene product. This product is expected to produce less soot and therefore to work better in a pot stove type of application. The most modern stove oil appliance in the U.S. are Monitor and Toyostove thermostatically controlled direct vent heaters.

Depends on the year of your truck, and we assume you mean red dyed diesel fuelFirst, using dyed diesel, off road diesel, or heating oil in an on-road vehicle is against the lawIf you are caught in Oregon the fine can be as big as $10,000 and the State of Oregon does aggressively pursue this type of tax avoidanceBeyond the legal use of off-road fuelTypically on the west coast dyed diesel is ultra low sulfur diesel. Which means it will not cause maintenance issues if burned in your engine.  Dependent on the age of the dyed fuel, or if it is actually a heating oil, it might be high sulfur or low sulfur fuel. If you use that in a post 2007 engine with a particulate trap it will have serious maintenance issues if you use that fuel.

Yes, dyed diesel and off-road diesel are acceptably used as heating oil. Dyed diesel and off-road diesel these days are typically ultra-low sulfur diesel. Heating oil can be low sulfur or high sulfur in content under EPA and most state laws. So heating oil sometimes cannot be dyed diesel (when used for off-road equipment or agricultural use) but dyed/off-road diesel can always be used for heating oil and conform to the necessary specification required by heating oil furnaces.

Yes! But in today’s ultra-low sulfur market, most off-road diesel is below 15 parts per million. If your equipment requires ultra-low sulfur diesel, it is a good practice to confirm that is what fuel you are getting. Some low sulfur diesel (under 500 parts per million sulfur fuel) and high sulfur diesel (over 500 parts per million sulfur) is still in the marketplace used by heating oil, boiler systems, locomotive, and marine applications.

Off-road diesel gels at cold temperatures. At colder temperatures, wax crystals begin to form and fall out of the diesel, clogging filters and gelling up the fuel. Also, the water and naturally held-in diesel will ice up and obstruct filters. This phenomenon is called diesel gelling.

All diesel fuels will gel if it gets cold enough. Both a formation of wax crystals and ice forming in your fuel will obstruct filters and take your equipment down. Rule of thumb: with no treatment your diesel fuel should operate without any issues above 20 degrees Fahrenheit. Below 20 degrees Fahrenheit, you will want to ensure your vendor is treating the fuel for winter use to ensure it will operate down to -20 degrees FahrenheitIf you are facing temperatures below that, you will want to confirm with your vendor that they are testing that fuel to operate below -20 degrees Fahrenheit.

Why does the government require diesel be dyed red?

From a informational pamphlet from the US IRS on untaxed fuel: 

“The federal government requires dyeing of untaxed diesel fuel and kerosene for two reasons. To help reduce tax evasion by identifying fuel on which excise taxes have not been paid, and to help reduce air pollution by identifying fuel not suitable for use in highway vehicles.”

Does off-road diesel go bad?

Off-road and dyed diesel do age and can go bad. All diesel fuels adhering to ASTM specification should be safe for storage up to a year without additional treatment and testing. If you are storing diesel for long term use, it is a good best practice to treat the fuel with a biocide and oxidative stabilizer to ensure that the fuel stays within specification and nothing will begin to grow in your fuel tank. The biggest enemy of long term diesel storage is water and dirt entering the fuel through a tank vent. As temperatures change a tank will breath pulling in air and moisture from outside. Ensuring there is no water in the tank and that outside contaminants can’t get into a tank are how keep your fuel within specification.

Untreated, you can assume that diesel fuel is good for a year. If treated with a biocide to prevent biological growth from growing in the tank, you can expect diesel to be good for two to three years. After two to three years, diesel begins to show age as it loses its brightness when sampled. After three years you will want to sample and test the fuel to ensure it is within specification for reliable use.

Fuel taxes vary by state and sometimes even local municipality. With off-road diesel, usually the only taxes to consider are sales taxes on the fuel. In Oregon there are no taxes on dyed off-road fuel. In Washington state there are sales taxes for dyed-diesel charged on top of the sale price of the fuel. (NOTE: If you use clear diesel in Washington state there is no sales tax as the road tax is being charged.)  If you are curious for a more in depth answer Star Oilco has a full explanation of Oregon Diesel Taxes (a unique system in the United States for local fuel tax collection of trucks over 26,000 GVW).

Yes. If you are consuming dyed diesel and are not paying for the on-road fuel taxes in Washington state, the sales tax is charged. If you use clear fuel with road taxes attached to the fuel, the sales tax is not charged. For more on Washington fuel taxes see the Washington Department of Revenue. 

Your petroleum distributor has some small taxes (under $.01) attached to the fuel they buy at the wholesale terminal level. Those taxes being the U.S. EPA Superfund cleanup and the “LUST” or Leaking Underground Storage Tank cleanup fund. Beyond that, there are no taxes (Federal, state or local municipality) on fuel used for off-road diesel in Oregon state.

In Oregon you can buy clear fuel exempt of Oregon’s state road taxes. The qualifications for using clear diesel Oregon State tax exempt are the following: 

vehicles issued a valid ODOT Motor Carrier permit or pass (weight receipt) 

vehicles issued a valid Use Fuel User emblem by the ODOT Fuels Tax Group 

vehicles registered to a US government agency, Oregon state agency, Oregon county or city, and displays a valid Oregon “E” plate 

vehicles, or farm tractors/equipment only incidentally operated on the highway as defined in ORS 319.520 

vehicles or equipment that are unlicensed and/or used exclusively on privately owned property 

What happens if I use dyed diesel in an on-road vehicle?

If you get caught in Oregon, a $10,000 a day fine can be levied. We have seen fuel tax cheats get caught repeatedly so be aware Oregon is on the look out for any amount of dye in the saddle tank of an on-road vehicle. If the fuel you use is low sulfur or high sulfur fuel and your vehicle has a particulate trap, you will have maintenance issues with the emission system of your vehicle.

Only if that pickup is dedicated to an off-road use. If you plan to ever use that truck on a public road (even to cross a street), and dyed fuel is found in that vehicle, fines up to $10,000 per occurrence can (and are) levied by state regulators. If you have a closed facility or large farm and are not registering the vehicle for on-road use (so the pickup must not leave the site), you can use off-road diesel as the vehicle’s fuel. If you have license plates and it’s permitted for on-road use, any regulator spotting dyed fuel in that truck will presume it is an on-road pickup.

Typically when checking for illegal use of dyed fuel, regulators will sample from the tank or spin the fuel filter and observe for obvious dyed fuel. If the fuel is clear (or even slightly pink) and they suspect dyed fuel was used in the vehicle, they can apply a special black light that will glow an obvious color denoting dyed fuel had been in contact with the vehicle. They will shine that light on the filter, fuel tanks, and various parts in the engine compartment that would have come into contact with the fuel. If those areas denote even a mild trace of the red-dye used in off-road diesel, they will cite the vehicle operator. There are kits sold online for filtering dye out of fuel to remove the colorThose kits will not remove enough dye to avoid detection by these lights.

Off road diesel is dyed red to show that the on-road fuel taxes are not paid or that it is a tax-free fuelThe Federal Government and State Government’s have fuel taxes for on-road fuel usage to help pay for the roads we all drive onIf you are using diesel for a non-road equipment, machinery, or heating/boiler applications the fuel taxes are exempt and the fuel is dyed to ensure it’s tax free status is immediately seenRegulators in a road side or site level inspection can also shine a black light on specific places in a vehicles system to denote if dyed fuel is being used in violation of the law as well.

In the Pacific Northwest at the current moment? Usually nothing. Heating oil is dyed diesel. Most petroleum distributors are selling the mainstream dyed diesel specification for use as heating oil in order to lower the overall cost of the fuel. There are different ASTM specifications for heating oil and dyed diesel dependent on the state you buy it in. Heating oil’s specification has wider tolerances than diesel specifications as furnaces and boilers can handle dirtier, lower quality fuels than off-road equipment with a particulate trap. Heating oil is always a diesel fuel, but sometimes dyed diesel for off-road equipment has a different specification than heating oil. For example, in Oregon a 5% biodiesel or 5% renewable diesel mandate exists for any dyed diesel fuel used in off-road equipment. This biofuel mandate exempts heating oil and boilers. So heating oil can be biodiesel free but off-road diesel for equipment cannot.

Get Your Off-Road Diesel Delivered Today

Star Oilco truck refueling off-road diesel at a job site in Portland OR

Can refrigerated trailers or “reefers” use dyed diesel even if they are attached to a truck moving it on the highway?

Yes, refrigerated trailers are off-road equipment. The diesel fueled refrigeration trailer is off-road equipment as its engine is not powering something actually driving down the road. These trailers can use any ultra-low sulfur diesel fuel (dyed or clear). If using on-road clear fuel in a refrigerated trailer, if you track and keep proof of the on-road fuel being used in the off-road piece of equipment, you can file for those fuel taxes back. Proof is required though so consult with your CPA or accountant.

The first step is to set up an account with Star Oilco. It’s easy to pay through a simple credit application or by placing a credit card on the account. Oregon and Washington are highly regulated when it comes to fuels such as diesel. We need to account for who is ordering and getting fuel (yes, Oregon even checks sometimes as the DEQ tracks every gallon of diesel moving into the state). Determine if you want a loaner tank onsite or a keep-full service plan. Star Oilco will deliver bulk or wet hose fuel your job site on a regular schedule. We are here to make it as easy as possible for you to focus on your project, not fueling. Let us know what you want: we will keep it simple and make it easy for you.

If you are storing off-road or dyed diesel for longer than six months you will want to make sure it is stabalized. Star Oilco recommends Valvtect Plus Six as the fuel additive you want to useOur recommended fuel additive is a fuel microbiocide with stability additives made for diesel long term storageThis kills and prevents the growth of biological “hum-bugs” in your tankBacteria, yeast, and algae can grow in your fuel tank. Usually in a small amount of water that collects in the bottom of the fuel storage tank (be it the bulk tank you  fuel out of or the saddle tank on your equipment).

There are several ways to do this.  What you will want to do varies based on how much water and what it is in.  If you are dealing with a large bulk fuel tank you want to definitely pump the tank bottom to get the water out.  If you are seeing extreme biological activity (Hum-Bug growing in your tank) you want to do a kill dose treatment on that tank. It might not be a bad idea to also spend a few thousand dollars to have a professional tank cleaning company come in and manually clean the tank prior to adding the kill dose to kill anything growing in your tankIf it’s the tank on your equipment usually the best route is to drain the tank, flush the tank, and also put a kill dose of  a fuel microbiocide to make sure nothing continues to growIf you want to talk to someone feel free to call Star Oilco, you do not need to be our customer for us to walk through some solutions you can do yourself. 

There are a very few rural gas stations that provide this fuel.  Some Pacific Pride or CFN cardlock locations also have pump available for this fuel.  The easiest way to acquire this fuel is through a fuel company.  Star Oilco is one such company that can deliver dyed diesel for it’s customers, or provide cardlock cards for its customers.

Contact Us Today To Get Your Off-Road Diesel Delivered To Your Location

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Diesel 1 vs Diesel 2

Diesel 1 and Diesel 2 can often bring confusion when it comes to understanding what the differences are between them. Consumers can have confusion about which one is best for their equipment or their business. Whether they’re looking for improvements in quality, igniting quickly with its high cetane rating for easy starts in cold weather or ensuring overall efficiency with engine performance and lower maintenance needs. We will explore the differences between Diesel 1 and Diesel 2 and help you understand the benefits of each. 

Key distinctions between the properties of Diesel 1 and Diesel 2 

Before you invest your hard-earned money in fuel that might not be suitable or, even worse, could harm your vehicles and equipment, let’s clear the air. Let’s simplify the differences between Diesel 1 and Diesel 2 in a way that’s easy to follow and gives you the confidence you need. 

Sulfur Content

Diesel 1: Lower sulfur content, reducing sulfur dioxide emissions and aligning with environmental standards.

Diesel 2: Higher sulfur content for specific applications with advanced emissions control. 

Cetane Number

Diesel 1: Boasts a higher cetane number (ignition quality of diesel fuel), ensuring better ignition and smoother combustion, especially in cold weather.

Diesel 2: It has a lower cetane number and is optimized for slightly delayed ignition in engines designed for this grade. 

Viscosity

Diesel 1: It generally has a lower viscosity, facilitating smoother fuel flow and distribution. 

Diesel 2: Its higher viscosity may require specialized fuel systems designed to handle its thicker consistency, such as generator power plant engines or industrial machinery. 

Cold Flow Properties

Diesel 1: It excels in cold climates because it contains kerosene and lacks paraffin, which prevents the diesel from gelling in colder temperatures. So, it’s best for the residents of the coldest regions.

Diesel 2: This fuel needs additional winterization measures in extremely cold temperatures, like mixing Diesel 1 (20%) with Diesel 2 (80%) and additives to lower the viscosity of Disesel 2. But make sure that your vehicle’s engine is capable of handling it.

Additives

Diesel 1: Contains extra constituents that improve cleanliness and lubrication and reduce rusting effects due to corrosion inhibitors in the engine. It also has demulsifiers that separate water from the fuel system and prevent engine problems. 

Diesel 2: Generally has fewer additives; common ones decrease viscosity for more accessible engines starting in cold conditions. Due to the higher wax content, some other chemicals are infused within it to stop the accumulation of wax sediments. 

Engine Wear and Tear

Diesel 1: Gentle on engines with low wax content, anti-corrosive additives, and high cetane rating, resulting in less wear, lower maintenance, and a longer lifespan. 

Diesel 2: Causes more wear, but viscosity contributes to enhanced lubrication and mitigates engine damage by reducing friction. 

Sound

Diesel 1: Less noisy due to its high cetane rating, ensuring rapid ignition and reducing the usual knocking sound linked with diesel engines. 

Diesel 2: Tends to be noisier due to a lower cetane rating and a longer combustion process. Results in higher levels of heat and pressure for a louder engine. 

Smoke Release

Diesel 1: Emits less smoke due to quick ignition and cleaner exhaust due to lower wax levels, demulsifiers, and other additives that cause smoke. 

Diesel 2: Results in smokier emissions because of a lower cetane rating, slower ignition, and increased accumulation of unburned fuel. 

Fuel Energy Efficiency 

Diesel 1: Slightly lower fuel economy (miles per gallon) than Diesel 2 due to its lighter grade and lower heating value. 

Diesel 2: It burns more slowly and proves to be the superior choice for extended highway travel, optimizing efficiency and minimizing refueling stops.

Cost

Diesel 1: It comes at a slightly higher cost because it is enhanced with lubricants, reducing friction for efficient fuel system operation. The premium diesel D1 has more benefits, like reduced repairs.  

Diesel 2: Represents a more economical choice. Despite lacking premium additives, more miles per gallon and a higher heating value make it the least expensive option at the pump. 

Finding the Right Fuel Fit: Diesel Decisions 

Selecting the appropriate diesel for your vehicle is crucial, and it all comes down to your vehicle type, usage, and environmental conditions for optimal performance. Diesel #2 is cost-effective and versatile for everyday commuting, while Diesel #1 is ideal for high-performance or newer engines due to its higher cetane rating.  

Trucks and heavy-duty vehicles benefit from Diesel #2’s versatility and cost savings. In fleet management, Diesel #2 is practical for various vehicles. Diesel #1 is the choice for lower emissions compliance in environmentally strict areas. Always check your vehicle manual for specific recommendations. 

Diesel 1 and Diesel 2 bring unique qualities to engines and the environment. Diesel 1 is cleaner and ideal for high-performance engines and excels in colder climates. Diesel 2, versatile and cost-effective, suits everyday driving and heavy-duty vehicles.  

Understanding these distinctions empowers you to make informed diesel decisions, ensuring engine longevity and environmental responsibility. 

If you have any questions about different fuels, feel free to give us a call and speak to one of our fuel experts.  

503-283-1256
www.staroilco.net 

The Pros and Cons of Renewable Diesel in Your Diesel Truck  1024 768 Star Oilco

The Pros and Cons of Renewable Diesel in Your Diesel Truck 

The Pros and Cons of Renewable Diesel in Your Diesel Truck 

 As the world continues to become more aware of sustainable alternatives, renewable biodiesel (otherwise known as R99) has emerged as a promising solution to reduce carbon emissions in the transportation sector. Diesel truck owners, for example, may wonder whether they can switch to renewable diesel and contribute to a greener future as the city of Portland will be enforcing new restrictions and limitations on carbon emissions. Here is more information on the feasibility of using renewable diesel in diesel trucks and looking at the benefits and possible challenges. By understanding the advantages and limitations, you can make an informed decision about integrating this renewable fuel into your trucking operations.

1. Understanding Renewable diesel:

Renewable diesel is a clean-burning alternative fuel derived from natural sources such as vegetable oils, animal fats, and recycled cooking oil. It is produced through a process called transesterification, where the oils or fats are chemically reacted with alcohol to separate the glycerin from the fatty acids, resulting in renewable diesel. This sustainable fuel can be used in diesel engines with little to no modifications, making it a viable option for diesel truck owners. 

 

2. Environmental Benefits of Renewable Diesel:

Renewable diesel (known as R99) has significant environmental benefits. Renewable diesel reduces greenhouse gas emissions, such as carbon dioxide, sulfur dioxide, and particulates matter, compared to traditional diesel. It has lower levels of harmful pollutants, contributing to improved air quality and reduced smog formation. Additionally, renewable diesel is biodegradable, non-toxic, and significantly minimizes net carbon dioxide emissions over its lifecycle, making it a valuable tool in mitigating climate change. 

 

3. Compatibility and Performance:

While renewable diesel is compatible for diesel engines as a drop in solution, its essential to consider any factors before switching. Renewable diesel has a slightly lower energy content than regular diesel, which can result in a slight decrease in fuel economy.

 

4. Availability and Infrastructure:

Is renewable diesel readily available? While renewable diesel is becoming more widespread, its availability may vary depending on your location. Star Oilco offers delivery of renewable diesel (R99) to the Portland, Oregon surrounding area as well as Vancouver, Washington. You can reach out to us to get a quote based on your location and service needs. 

Renewable diesel offers a promising alternative for diesel truck owners who want to reduce their environmental impact. With its environmental benefits, compatibility with diesel engines as a drop-in solution, and ongoing availability improvements, renewable diesel presents a viable solution to achieve sustainable transportation and it contributes to a greener future across the Pacific Northwest.

Call Star Oilco today to discuss using Renewable Diesel as a drop-in solution for your diesel trucks.

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Renewable Diesel vs Biodiesel 683 1024 Star Oilco

Renewable Diesel vs Biodiesel

What’s the difference and how do they compare in price? 

If you are looking for a cleaner and greener alternative to diesel fuel, you might have come across two options: renewable diesel and biodiesel. Both fuels are made from organic sources, such as vegetable oils and animal fats, but they have different production processes and properties. In this blog post, we will compare renewable diesel and biodiesel in terms of their pros and cons, as well as their prices and incentives in Oregon. 

What is Renewable Diesel? 

Renewable diesel is a fuel that is chemically identical to petroleum diesel, but it is made from renewable raw materials through a process called hydrotreating. Hydrotreating removes impurities and oxygen from the feedstock, resulting in a pure and refined fuel that can be used in any diesel engine without modifications or blending. Renewable diesel (R99) has a high cetane number, which means it ignites easily and burns efficiently. It also has a low cloud point, which means it can withstand cold temperatures without gelling or clogging filters. 

What is Biodiesel? 

Biodiesel is a fuel that is made from renewable raw materials through a process called transesterification. Transesterification converts the feedstock into fatty acid methyl esters (FAME), which are then blended with petroleum diesel at various ratios. Biodiesel can be used in most diesel engines, but it may require some modifications or adjustments depending on the blend level and the engine type. Biodiesel has a lower cetane number than renewable diesel, which means it may not ignite or burn as well. It also has a higher cloud point than renewable diesel, which means it may gel or clog filters in cold weather. 

The cost of renewable diesel and biodiesel depends on various factors, such as the type and availability of feedstock, the production process, the market demand, and the government incentives. In general, renewable diesel is more expensive than biodiesel, as it requires more complex processing and higher quality feedstock. According to the U.S. Energy Information Administration (EIA), the average wholesale price of renewable diesel in California was $3.06 per gallon in October 2021, while the average wholesale price of biodiesel was $2.76 per gallon in the same month. However, both renewable diesel and biodiesel can benefit from federal RIN’s and state credits such as the low carbon fuel standards, which can lower their effective prices and make them more competitive with petroleum diesel. As of July 10th of 2023 renewable diesel (R99) in Portland Oregon was 60 cents higher than biodiesel (B99). 

 Renewable Diesel vs Biodiesel Carbon Intensity 

According to CARB, the carbon intensity of biodiesel ranges from 14.85 to 67.45 gCO2e/MJ and, renewable diesel ranges from 15.84 to 62.86 gCO2e/MJ, depending on the feedstock and production pathway. The lowest carbon intensity for biodiesel is achieved by using waste cooking oil as the feedstock and renewable methanol as the transesterification agent. The highest carbon intensity is associated with using soybean oil as the feedstock and fossil-based methanol as the transesterification agent. The lowest carbon intensity for renewable diesel is achieved by using waste cooking oil as the feedstock and renewable hydrogen as the hydrotreating agent. The highest carbon intensity is associated with using soybean oil as the feedstock and fossil-based hydrogen as the hydrotreating agent. 

Fuel-Pathways-Carbon-Intensity-Values

Pros and Cons of Renewable Diesel and Biodiesel 

Both renewable diesel and biodiesel have some advantages and disadvantages compared to petroleum diesel. Here are some of the main pros and cons of each fuel:  

Renewable Diesel Pros: 

– Reduces greenhouse gas emissions by up to 75% compared to petroleum diesel 

– Reduces tailpipe emissions of particulate matter, nitrogen oxides, carbon monoxide, and hydrocarbons 

– Improves engine performance and efficiency with fewer regeneration cycles of the emissions system 

– Compatible with existing infrastructure and vehicles 

– Biodegradable and nontoxic 

Renewable Diesel Cons: 

– More expensive than petroleum diesel 

– Limited availability and supply 

– May increase emissions of sulfur dioxide 

Biodiesel Pros: 

– Reduces greenhouse gas emissions by up to 78% compared to petroleum diesel 

– Reduces tailpipe emissions of particulate matter, carbon monoxide, and hydrocarbons 

– Biodegradable and nontoxic 

– Supports domestic agriculture and energy security 

 Biodiesel Cons: 

– May increase emissions of nitrogen oxides 

– May cause engine problems such as injector coking, filter plugging, corrosion, and reduced lubricity 

– May degrade over time or when exposed to water or microbes 

Oregon Prices and Incentives for Renewable Diesel and Biodiesel 

Oregon is one of the states that has adopted a Clean Fuels Program (CFP), which aims to reduce the carbon intensity of transportation fuels by 10% by 2025. The CFP creates a market for low-carbon fuels such as renewable diesel and biodiesel by requiring fuel suppliers to either blend them with petroleum diesel or buy credits from low-carbon fuel producers. The CFP also provides incentives for consumers to use low-carbon fuels by reducing their fuel taxes. 

According to the Oregon Department of Environmental Quality (DEQ), the average price of diesel in Oregon as of November 2021 was $3.87 per gallon. The average price of biodiesel blends ranged from $3.88 per gallon for B5 (5% biodiesel) to $4.01 per gallon for B20 (20% biodiesel). The average price of renewable diesel was $4.05 per gallon. As of July 2023 the price of renewable diesel (R99) in Oregon was 50 to 60 cents higher than biodiesel (B99). 

The DEQ also provides a Fuel Cost Calculator that allows consumers to compare the costs and benefits of different fuels based on their vehicle type, fuel efficiency, annual mileage, fuel price, carbon intensity, and tax rate. According to the calculator, using renewable diesel instead of petroleum diesel would save an average consumer $34 per year in fuel costs and reduce their carbon emissions by 1.6 metric tons per year. Using biodiesel instead of petroleum diesel would save an average consumer $12 per year in fuel costs and reduce their carbon emissions by 0.8 metric tons per year. 

Renewable diesel and biodiesel are both viable alternatives to petroleum diesel that can help reduce greenhouse gas emissions and support renewable energy sources. However, they also have some trade-offs in terms of cost, availability, performance, and emissions. Consumers should consider their vehicle type, driving habits, fuel preferences, and environmental goals when choosing between these fuels. Oregon offers some incentives and programs to encourage the use of low-carbon fuels such as renewable diesel and biodiesel, which can help consumers save money and reduce their carbon footprint.