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Renewable Diesel

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The Future of Diesel Fuel

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

Diesel Fuel In Oregon and Washington

Star Oilco has been getting questions on the changes of diesel in Portland, Oregon.  If you have not noticed, many diesel pumps at retail gas stations and cardlock have seen changing stickers on the face of the fuel pumps.  As of July 1st, 2024 the City of Portland requires a minimum 15% biofuel content of all diesel sold.  This policy is called the Portland Renewable Fuel Standard.

This has caused quite a few changes in what fuel pumps have for fuel.  Diesel fuel buyers are noticing the bright yellow color of B20 biodiesel, the water clear color of Renewable Diesel or a a mix of several fuels tinting the color of their diesel.  This trend is bigger than just Portland.

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

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

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

THE RISE OF RENEWABLE DIESEL

Renewable diesel is a synthetic diesel fuel made from the same feedstock as biodiesel, but the finished product is hydrocarbon diesel.  Though it is a biofuel, it is also diesel. For fuel regulation they refer to it (as well as biodiesel) as “Biomass Based Diesel” for labeling at the fuel pump.

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

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

THE AVAILABILITY OF BIODIESEL

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

When crude petroleum prices are high and therefore refined diesel prices are equally as high biodiesel is often an extremely competitive fuel.  If a large seller of diesel (including petroleum refiners) can pick up pennies per gallons on millions of gallons sold they will do so.  Therefore Biodiesel is often seen in diesel in small blends even if you do not see a label on retail pump.  For blends above 5% a label is required for retail fuel sales. RTHWEST?

R99 Renewable Diesel fuel dispenser label
Ultra Low Sulfur Retail Diesel Label
Biodiesel Blend Percentage label for retail diesel dispenser

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

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

Renewable diesel is a hydrocarbon diesel. 

 

It is diesel meeting the ASTM D975 specification for diesel. 

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

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

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

Renewable Diesel and Biodiesel Blend fuel dispenser label.

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

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

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

WHAT ARE THE DIESEL FUELS AND THEIR SPECIFICATIONS

Petroleum Diesel:
ASTM D975 Specification.

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

Renewable Diesel:
ASTM D975 Specification.

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

Biodiesel (Methyl Esther):
ASTM D6751 Specification.

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

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

THE HISTORY OF DIESEL FUEL SPECIFICATIONS IN THE UNITED STATES

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

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

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

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What Is The Renewable Fuel Standard In Portland? 1024 683 Star Oilco

What Is The Renewable Fuel Standard In Portland?

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

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

Portland’s Phases To Implement Almost 100% Renewable Diesel

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

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

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

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

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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.

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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.

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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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Understanding The Renewable Fuel Standard In Portland 1024 682 Star Oilco

Understanding The Renewable Fuel Standard In Portland

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

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

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

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

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

Portlands Renewable Fuel Standard Requirements

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

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

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

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

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

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

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

  • On-Site Fleet Fueling
  • Wet Hose Fueling

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

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

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

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

Biofuel Minimum Content Requirements for Wholesale Purchaser-Consumers

  • WPCs in the City of Portland are required to meet the minimum biofuel content requirements for all fuel they purchase for their vehicle fleet. Beginning July 1, 2024, all diesel purchased must include 15% biofuel content, from either renewable diesel or biodiesel. This requirement increases to 50% on July 1, 2026, and 99% on July 1, 2030.
  • The biofuel content requirements will be enforced through random inspections of fleet facilities to see that they (1) have a contract in place with fuel suppliers that specifies that fuel meets the minimum blend requirements, or (2) verification of actual products purchased through testing or review of product transfer documents.
  • All WPCs also need to be aware of the Carbon Intensity Standard in PCC Chapter 16.60.
  • All biodiesel and renewable diesel sold in the City of Portland must have a carbon intensity equal to or less than 40g CO2e/MJ as certified by DEQ’s Clean Fuels Program, Approved Carbon Intensity Values.
  • Carbon intensity requirements apply to biofuel blendstock, not the final blended products, which may contain a portion of petroleum-based diesel fuel at a higher carbon intensity.

Selecting a compliance option for Wholesale Purchaser-Consumers

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

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

Record Keeping Requirements for Wholesale Purchaser-Consumers

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

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

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

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Every Question We Have Been Asked About Renewable Diesel 1024 696 Star Oilco

Every Question We Have Been Asked About Renewable Diesel

Renewable Diesel Frequently Asked Questions (FAQ)

Every Question we have been asked about Renewable Diesel

What is renewable diesel?

Renewable diesel is a synthetic diesel fuel, known for it’s lower CO2 characteristics, typically seeing purity and real world performance response superior to petroleum diesel fuel.  Renewable diesel is a next generation hydrocarbon diesel biofuel made by either the Fischer-Tropsch or Hydrogenation processes.

Hydrogenated renewable diesel is made by taking fats, oils, and greases by use of a hydro-treater.  The biomass based oil or fat is cracked and reformed in the presence of hydrogen and  catalyst forming a hydrocarbon diesel molecule.

Fischer-Tropsch renewable diesel is used by converting any btu dense feedstock (wood waste, woody biomass, municipal garbage, coal, and an endless list of low value waste products into syngas, then converting this into a wax that is reformed into hydrocarbon diesel.

Can Renewable Diesel be used as Heating Oil?

Yes.  Renewable Diesel is a synthetic hydrocarbon diesel fuel.  It can be used interchangeably with petroleum diesel products of similar grade. Heating Oil is typically number 2 diesel which is the same specification as Dyed R99 Renewable Diesel (or blends of Renewable Diesel with petroleum diesel).   Star Oilco now offers R99 Heating Oil delivered in the Portland metro region area of Oregon.

Most modern oil heat appliances use a Becket Burner.  For more on heating fuel compatibility with oil furnaces and oil burning appliance please see “Alternative Fuels and Becket Burners” for more information.

Why do people use renewable diesel over petroleum diesel?

Fleet managers operating R99 Renewable Diesel report a lower mechanical cost of operation using the fuel.  Beyond the immediate benefit of R99 cutting CO2 emissions by half or more, fleets experience performance benefits from the fuel.  The big savings are seen the the performance of Tier 4 Emission systems on modern diesel seeing far less wear of the Diesel Particulate Filter system as well as far fewer regenerations of the system.  Additionally Renewable Diesel is a very clean and dry diesel fuel improving the storage stability, field operation, and general predictability of the fuel’s performance.

How do I know Renewable Diesel is being sold at a retail location?

Renewable Diesel is a hydrocarbon diesel that meets the specification for petroleum diesel known as ASTM D975 specification.  This means currently R99 can be readily blended and sold with petroleum diesel without a disclosure.  The US Federal Trade Commission and local state Weights and Measures have rules for retail pump labeling.  Blend percentages of biomass based diesel must be labeled especially if being advertised.  As R99 Renewable Diesel has a higher value and is sought out by many consumers though usually it is disclosed.  The pump labeling for R99 Renewable Diesel typically looks like the below.

R99 Renewable Diesel fuel dispenser label

What is renewable diesel made of?

Renewable diesel can be made from a host of things, usually a low value waste product. The most common feedstock used currently is waste vegetable oil, wastes from animal rendering, and other biologically derived oils. Processes using bio-oils are following a Hydrogenation process to turn low value waste oils into high value diesel and jet fuel.

Chevron Renewable Energy Group and Diamond Green Diesel (Diamond Green is in a joint venture with Valero) are the largest producer of renewable diesel with their REG Ultra Clean Diesel product in the United States. Neste is the largest producer of renewable diesel internationally, with its “Neste My” product.  being the two largest producers of low CO2 bio-oil derived renewable diesel fuels.

Major petroleum refiners have also turned around existing petroleum refineries into Renewable Diesel Refineries to produce this in demand low CO2 fuel. HF Sinclair , Marathon, Phillips 66, and Montana Renewables. There are quite a few newer Renewable Diesel projects planned and in progress around the United States as well as in the Pacific Northwest.

Other refiners of renewable diesel (on a much smaller scale of production) are using a Fischer-Tropsch process with wood waste, sorted higher grade municipal garbage, and other high btu value carbon based waste products.  Many expect this to technology to be the future of all diesel and jet fuel refining turning refuse into fungible low carbon fuel.

What is renewable hydrocarbon diesel?

Renewable hydrocarbon diesel is a synthetic diesel fuel made from non-petroleum feedstocks like vegetable oil, animal fats, municipal waste, agricultural biomass, and woody biomass. It is characterized by having a low CO2 and renewable resource for its feedstock and is made without crude petroleum, coal, or natural gas as a direct feedstock input in the refining process.

How do they make renewable diesel?

Renewable diesel is made by several processes. If you are buying renewable diesel, it is probably from a Hydrogenation process used by Renewable Energy Group and Neste for their products. Other smaller volume producers are using a Fischer-Tropsch process or Fast Pyrolysis. Both processes involve taking energy dense molecules, cracking those molecules under heat and pressure, then reforming them in the presence of a catalyst and added hydrogen, which forms a renewable diesel molecule.

Is renewable diesel a lower carbon fuel compared to petroleum diesel?

Yes, to this point all renewable diesel made from renewable feedstocks have appeared to be a lower CO2 fuel compared to petroleum diesels. The California Air Research Board in particular has done research on this in depth.

The low CO2 lifecycle emissions of Renewable Diesel also is tracked closely and supervised by California’s Low Carbon Fuel Standard, Washington’s Low Carbon Fuel Standard, and Oregon’s Clean Fuels Program. The highest value markets for low CO2 fuels in the United States are California and Oregon, which both have mechanisms that track and price the CO2 intensity of diesel fuels as well as the sustainable lower CO2 substitutes and blend-stocks that can go in those diesels. They track, rate, and determine the carbon intensity of the fuels providing a neutral and scientifically defensible number for CO2 reduction.

Is renewable diesel available in Oregon?

Renewable diesel is readily available for delivery from Star Oilco throughout the Pacific Northwest via 10,000 gallon volumes of bulk delivery.   Star Oilco is also offering bulk delivery of any size and mobile onsite fueling service within 100 miles of the Portland, Oregon market.

Star Oilco has R99 Renewable Diesel available with a Star Oilco CFN Cardlock card in Portland, Oregon.

What is the difference between biodiesel and renewable diesel?

Biodiesel and renewable diesel are very different fuels made with very different processes. In a nutshell, biodiesel is made with a simple chemical reaction that turns vegetable and animal fats into fuel. Renewable diesel is made from far more complicated process where vegetable and animal fats (as well as other feedstocks) are cracked on a molecular level and built back into synthetic diesel fuel.

What is the difference between renewable diesel and Sustainable Aviation Fuel?

The difference between the fuels is the specific gravity and general specification for what the fuel is used for. Jet fuel, or Sustainable Aviation Fuel, and on-road diesel fuel are different fuels and therefore have different specifications. Renewable diesel is typically referring to a #2 diesel specification for on road diesel use.

Sustainable Aviation Fuel or “SAF” is typically referring to “Jet A” or “JP8” jet fuel specification for fuel. This is a #1 diesel range fuel with use and handling requirements that are far more stringent than for on-road or off-road diesel fuels. Renewable jet fuel can be used as a kerosene or #1 diesel fuel but renewable diesel cannot be used as a jet fuel.

Where do I buy renewable diesel in Oregon or Washington?

Renewable Diesel is currently available for bulk delivery and mobile onsite fueling. It will soon be offered at commercial cardlock in the Portland area. It is being sold as R99 and as Ultra Clean Diesel, which is a mixture of biodiesel, renewable diesel, and petroleum diesel.

What is R99?

R99 stands for 99% renewable diesel and 1% petroleum diesel.  Federal rules over alternative diesel fuels made fuels requires that manufacturers of non-petroleum derived diesel fuels must blend a minimum 1% petroleum with the fuel to generate a Renewable Industry Number or “RIN” under the US Federal Renewable Fuel Standard. Additionally there are other incentives that require a “blender of record” to receive these tax credits.

Is renewable diesel being made in Oregon?

As of Spring 2022, renewable diesel is not being manufactured in Oregon. There is a major projects underway, Next Renewable Fuels in Port Westward, Oregon.

What is renewable diesel made from?

Renewable diesel can be made from many energy dense carbon based material.  By volume of produced product sold in the United States, vegetable oils and animal fat-based wastes are the most common feedstock. Woody biomass, agricultural wastes, and sorted municipal wastes are also sources for renewable diesel production.

Is renewable diesel made from palm oil?

Palm oil can be used as a feedstock for renewable diesel. There are producers who use palm oil as a feedstock. In the United States, feedstocks and carbon intensity are tracked closely under both Oregon and California’s fuel programs.  You can determine if a supplier is using palm oil as a feedstock through these regulated pathways.

How much does renewable diesel cost?

This is a tough question to answer given there are several markets intersecting.  From the feedstocks to the market demand for the finished product as well as both California and Oregon’s Clean Fuel Standards which place a price on the CO2 intensity of the fuel which reduces the cost of the fuel if consumed in Oregon and California.

It has consistently been trending between the same cost and over $1 a gallon higher than petroleum diesel depending on the state, you buy renewable diesel in. In California, renewable diesel is very close to petroleum diesel depending on the value of CO2 credits for lower-carbon fuels. In Oregon, it has consistently been between $.05 to $.80 a gallon higher than diesel also depending on the value of CO2 abatement associated with the fuel and what these carbon credits are trading for.

When petroleum diesel costs are high Renewable Diesel tends to be more competitive with petroleum diesel.  When petroleum diesel is below $3 a gallon the cost of Renewable Diesel by comparison is usually higher unless CO2 credits are in higher than normal demand for Clean Fuels Program demands.

Can you mix petroleum diesel and renewable diesel?

Yes. Renewable diesel and petroleum diesel can be blended in any mixture without worry. They are drop-in substitutes for each other in your fleet’s use.  Renewable Diesel is a drop-in fuel. It is a hydrocarbon diesel that will work mixed with diesel or biodiesel blends of petroleum diesel.

Learn more about renewable diesel and how it can benefit your operations. Contact us today.

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Oregon Legislature proposes an end to petroleum diesel 1024 683 Star Oilco

Oregon Legislature proposes an end to petroleum diesel

What are the alternatives to petroleum diesel in Oregon?

If Oregon bans the sale of petroleum diesel, a rapid transition to biofuels such as renewable diesel and biodiesel would happen.

 

Oregon HB3305 explained

 

 

HB 3305 Petroleum Diesel ban

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

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

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

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

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

News coverage of Oregon HB 3305 is below

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

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

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

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

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

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

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

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

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

What HB 3305 means in the real world?

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

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

  • Retail gas stations
  • Trucks stops
  • Commercial cardlocks (Pacific Pride and CFN)
  • Privately owned bulk tanks
  • Mobile on-site fueling (wet hose fueling), and
  • All other bulk deliveries of diesel fuel.

Given the media coverage of this law, which no doubt will grow if this bill progresses to hearings.  Star Oilco wanted to provide more background of what this law would mean for Oregon.  We hope this provides in depth information about what the options are for diesel fuels and a whole host of background information.  The news coverage so far fails to really provide this depth and background for those with concerns.  If you have questions, please do not hesitate to ask. Star Oilco seeks to be a neutral and accurate source of information.

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

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

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

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

Biodiesel and Renewable Diesel are very different fuels.

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

What are non-petroleum diesel fuels?

Oregon HB 3305

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

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

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

HB3305 allows for biofuels in replacement for diesel.  We assume that change would be from a current Oregon fuel mandates of B5 or R5 biofuel diesel blend to a B99 or R99 mandated fuel.   Under current Oregon law all diesel fuel must contain a 5% blend of biodiesel or renewable diesel.  Oregon’s biofuel content law can be read at ORS 646.922 and we can assume this would change that to a 99% mandate. Why 99% instead of 100%, that is a good question relating to Federal regulation of the US diesel and gasoline markets.

 

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

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

What are the fuels HB 3305 would allow to be used by diesel motor vehicles in Oregon if this bill was passed into law?

The two fuels immediately available if this law was passed into law are B99 Biodiesel and R99 Renewable Diesel.

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

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

B99 Biodiesel in depth.

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

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

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

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

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

 

R99 Renewable Diesel in depth.

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

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

Renewable Diesel from Hydrogenation or Hydrotreating

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

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

Renewable Diesel from Fischer Tropsch process.

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

Where can you get Renewable Diesel in Oregon?

Star Oilco currently is selling R99 Renewable Diesel for commercial use.  We can deliver to fleets seeking it in bulk or mobile onsite delivery (wet hose R99 diesel service begins Spring 2021).  If you fleet wants to trial renewable diesel, Star Oilco can work with you on a loaner tank for a 90 day demonstration of the fuel.  Call Star Oilco if you have an interest in Renewable Diesel for your fleet 503-283-1256.

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

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

 

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Do you have questions about Renewable Diesel in Oregon? 1024 768 Star Oilco

Do you have questions about Renewable Diesel in Oregon?

Renewable Diesel delivered in Oregon

Renewable Diesel direct to your fleet.

Imagine a superior next generation renewable diesel direct to your fleet.

 

Star Oilco is delivering R99 Renewable Diesel to fleets now.

Renewable Diesel delivered to your fleet by mobile onsite fueling or in bulk.

Imagine a fuel that is cleaner and drier than your typical diesel fuel bought in Oregon.  Now imagine that this dry and clean characteristic means a better performing fleet.  A fuel that causes less maintenance and increased performance benefits as it relates to your modern Tier 3 Diesel Emission systems.  Fewer DPF (particulate trap) regens and other post engine maintenance issues in your fleet while more power and up time reported by the drivers behind the wheel.  Now add to that a more than half reduction in CO2 emissions and Oregon has incentives for the adoption of this fuel because it is a biofuel.  A biofuel that outperforms traditional diesel in performance, emissions, and in lifecycle analysis.

That next generation biofuel is here. Renewable Diesel!

Star Oilco can deliver Renewable Diesel to your tank in Oregon and Washington.  If you are looking at this fuel we will work hard to make it easy for you regardless of how small or large your fleet. It is immediately available for bulk customers.   If you are interested in mobile on-site refueling, wet-hosing, construction job site fueling, or a retail option for the fuel we can work with you as well to make that happen.

Renewable Diesel: A Next Generation low CO2 Diesel Fuel.

This product is available in Oregon and we are excited to make getting this fuel simple.  Star Oilco is a proud seller Renewable Diesel product. If decarbonizing your fleet is your goal  while reducing the total cost of maintenance on your fleet, Star Oilco is ready to serve your needs.

Renewable Diesel is available from several manufacturers of Renewable Diesel shipped to Oregon, Washington and California.  This product being made available given it’s lower than petroleum CO2 emissions meeting the Low Carbon Fuel standards created by California, Oregon, and expected in Washington state.

Renewable Diesel clean burning

For more on Renewable Hydrocarbons, please check out the US Department of Energy’s Alternative Fuels Data Center page on the subject. 

Call Star Oilco with any questions you may have about Renewable Diesel, Biodiesel, Ethanol or other emerging alternative fuels.  We have a track record of making alternative fuels easy for those wanting to use them. Call 503-283-1256 or email OrderDesk@Star Oilco.net and we can get you in conversation with our team about a future fuel available today.

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Star Oilco is delivering R99 Renewable Diesel to fleets in bulk and by mobile onsite fueling.

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For more on Renewable Diesel please also see the following:

Renewable Diesel as a major Transportation Fuel in California

Every Question Star Oilco has been asked about Renewable Diesel

Renewable Energy Group’s Ultra Clean Diesel (Renewable Diesel fuel blends)

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Diesel storage tanks UL-2085 needed for modern Fire Code 1024 683 Star Oilco

Diesel storage tanks UL-2085 needed for modern Fire Code

What is required to install a fuel tank in Oregon?

A Tank that meets International Fire Code is a 2 Hour Fire Guard labeled tank.

In recent years Oregon and Washington have been moving to International Fire Code as their adopted standard. Following California with this higher standard of safety as it relates to liquid fuels.  The new standards are far more involved in their construction and therefore their installation as well. Heavy and far more expensive is the most notable standard of a modern Fire Marshall approved tank.

UL 142 – Double Wall Tanks

The old standard for diesel storage was UL-142 (commonly referred to as double wall or “diked tanks” by fleet managers).  These tanks are still made and extremely common throughout the US. If you see one of these tanks for sale and it looks like a great deal it’s probably because of an upgrade requirement causing them to sell it.  Be aware to check code in your local jurisdiction. These tanks still have a wide market for use especially for agricultural zones as well as temporary use with construction sites.

UL 2085 – 2 Hour Fire Guard and Double Wall Tanks

The new standard for storing diesel for refueling vehicles is the UL-2085. This code has been around for gasoline, it is only new in the way that Fire Marshall’s and local municipalities will require it for diesel fuels.

This standard has been around for a long time but typically was used when storing gasoline or more flammable liquids. That standard now applies to diesel fuels as well if they are being installed to refuel equipment, trucks or any other service.  Its worth noting that boilers, HVAC oil furnaces, and other plumbed stationary applications can still use the UL-142 code. Similarly agricultural use in Oregon is allowed a UL-142 use in most applications.  But for fleet fueling even if only a 100 gallon tank the Fire Marshall’s new standard is the UL-2085 concrete lined fire guard tank. It is also worth noting that if you have an installed UL-142 tank in a commercial or industrial zoned property you probably are okay with grandfathered use. But if you want to change anything the Fire Marshall and local Code Enforcement are going to be looking at the newer and safer standard.

Ask your local Fire Marshall to be sure of what the requirements are.

When discussing diesel storage tank options with your local Fire Marshall it helps to see the reason they have the standards they demand. Also be aware of other requirements that local jurisdiction may have. For instance Portland, Oregon’s Bureau of Environmental Services will often demand a cover be placed over the fueling area, an engineered concrete pad beneath it, as well as a potential oil water separator.  Usually there can be an additional permit and process associated with a tank install to meet the needs of a local Fire Marshall as well.

Two hour fire guard or UL-2085 rated tanks are the new standard in Oregon as we have adopted the International Fire Code. and the picture below says a thousand words. It will protect your property from a lake of fire preventing your diesel fuel from feeding disaster.

This is a great picture of a tank being tested for a two hour fire rating by a vendor of Star Oilco’s. Its speaks to why and what is the concern of your local regulator.

Modern Weld Company is a tank manufacturer out of California that makes great tanks to order exactly perfect for your site.

As they make what you need to the specifications you need you can make the Fire Marshall, local City Code enforcement, and your CFO happy at the same time.  If you have questions about installing a bulk diesel fuel tank to either UL-142 or UL-2085 standards give Star Oilco a call. We can help you meet UL codes for diesel, gasoline, biodiesel, or other storage needs.

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Renewable Diesel as a Major Transportation Fuel in California 1000 723 Star Oilco

Renewable Diesel as a Major Transportation Fuel in California

RENEWABLE DIESEL IS AVAILABLE

STAR OILCO HAS RENEWABLE DIESEL FOR YOUR FLEET

In the Pacific Northwest we have gone from a complete scarcity of Renewable Diesel availability to several players having terminal positions and this next generation sustainable fuel being readily available.  Star Oilco is ready to serve you with renewable diesel in several blends to meet both your fleet’s financial and carbon budgets.

For years California has lead the west coast with availability of renewable diesel and various blends with both petroleum diesel and biodiesel fuels. This experience is available in the research paper below to help inform your fleet in making decisions about de-carbonizing your fleets.

IS RENEWABLE DIESEL WORTH THE ADDED COST?

Fleet managers fell in love with this exceptionally high quality synthetic diesel fuel. Cleaner and drier than your typical petroleum diesel quite  a few believers are willing to pay a large premium for this fuel.  There are hardcore supporters of this fuel and it’s overall ability to reduce operational cost in far excess of it’s added cost. Which raises the next question.  Is it superior to petroleum diesel?

Caravan of white trucks on country highway under blue sky

IS RENEWABLE DIESEL SUPERIOR TO PETROLEUM DIESEL?

The answer points to yes based on initial experience rating the fuel on real world performance, fuel mileage, emissions system maintenance costs, and the much lower CO2 emissions.

The whitepaper shown is probably the most in depth resource for a fleet seeking to understand the potential of renewable diesel for its own use.

Renewable diesel is a next generation diesel fuel.  It has a low CO2 footprint similar to biodiesel, yet it is a high performance fuel that reduces down time and maintenance in urban stop-and-go fleet use.  Long story short, it is an impressive fuel solving many problems associated with modern clean diesel engines.

Given the newness of this fuel along, with the few producers of it, there is a real lack of in depth research on the subject.

If you have any questions about Renewable Diesel please feel free to contact us.

RENEWABLE DIESEL AS A MAJOR TRANSPORTATION FUEL

This white paper is the most in depth examination of Renewable Diesel operating in the real world. It covers a complete view of the product from the perspective of both fleets operating it and regulators seeking to reduce emissions. In our experience this is the most complete document you are going to find to advise a fleet considering using R99 Renewable Diesel.

Whitepaper – Renewable Diesel as a Major Transportation in California: Opportunities, Benefits, and Challenges.
Whitepaper that Gladstein, Neandross and Associates produced for the Bay Area Air Quality Management District and South Coast AQMD.

This report reinforces the manufacturers of renewable diesel’s statements and many anecdotal statements from fleets using the fuel. Renewable diesel sees superior performance in both emission reduction and performance in existing diesel technology. It is a cleaner burning and lower CO2 fuel that also contributes to a lower cost of vehicle maintenance.

According to this August 2017 report, California was on course to see approximately 250,000,000 gallons of R99 fuel sold in the state that year. This is a world-shaking volume of a next generation biofuel. With these readily adopted volumes, no doubt more product will be finding its way into the marketplace. The report cites a CARB expectation of the California Renewable Diesel market growing to over 2,000,000,000 (that’s BILLION) gallons in the next decade.

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Diesel Fuel in Portland, Oregon 1024 683 Star Oilco

Diesel Fuel in Portland, Oregon

What is the difference between diesel fuel in Portland, Oregon and the rest of the Pacific Northwest?

Oregon Diesel Fuel

Star Oilco delivers and sells diesel fuel in Portland, Oregon.

We are ready for your diesel needs be they off-road, on-road, biodiesel, renewable diesel, or anything else you want.

Star Oilco has simple fuel solutions to keep your business moving.

On the West Coast, expect biodiesel blends to be in all diesel fuel. B5 biodiesel being the most commonly found fuel. Be aware though, in Oregon,  B20 biodiesel (a 20% blend of biodiesel mixed with petroleum diesel) is extremely common at retail throughout the state. B5 through B20 blends of biodiesel are becoming more common as Oregon’s legal framework regulates CO2 emissions requiring diesel sellers to blend biodiesel or charge substantially more for every gallon they sell.

On top of that, Oregon has a 5% biofuel blend mandate that can include a number of fuels, most commonly biodiesel and renewable diesel. Washington state also has a mandate for 5% biodiesel though it isn’t as specific as the Oregon mandate.

That’s Oregon Diesel. What about Portland?

The city of Portland has a stand-along city fuel tax due to its policy goals (which cause it to codify rules for low CO2 fuels and the sources of diesel in particular), as well as its own budget needs.

Portland, Oregon Diesel Fuel Mandates

A little known fact is that Portland, Oregon has its own biofuels mandate and fuel tax structure on diesel. This mandate affects all diesel equipment both on and off-road use. It does not affect boilers or HVAC systems though most people selling heating oil and boiler fuel are still handling a 5% biodiesel product to ensure they don’t cross fuel in violation of the law.

Functionally, the city of Portland’s mandate and Oregon’s specific mandate do not make a huge difference. Your biggest noticeable difference is the higher price due to the diesel fuel tax, given that Portland’s biofuel mandate now overlaps with Oregon state’s fuel mandates.

For more on the actual code for biofuel mandates in Portland, see the Portland City Code.

Until 2019, Portland had a 5% biodiesel “methylester” mandate. This meant that Portland mandated that all diesel fuel sold inside the city must contain 5% of biodiesel or sellers of fuel inside city limits would face a fine. For years, Portland actually checked every seller of diesel for a 5% biodiesel blend in person annually. This mandate also included feedstocks and did not allow for palm oil sourced biodiesel, as palm oil is responsible for a large amount of deforestation in Indonesia and other places. The Portland mandate required that half of all biodiesel blended to meet the 5% mandate must be derived from canola and waste vegetable oil sources, as Oregon can produce them.

In 2019, the city of Portland suddenly lined up their mandate to match the state of Oregon’s, which allows for renewable diesel to be used as a feedstock. Anything derived from palm is still a barred feedstock for the fuel to meet Portland mandate requirements (which is distinctly different than Oregon’s biofuel mandate).

Onsite Diesel wethose service Portland
Portland, Oregon Diesel Fuel Taxes

(NOTE: Read this article by Star Oilco for more on Oregon Fuel Taxes Explained.

In 2016, the city of Portland, Oregon created its own diesel tax of $.10 a gallon. This tax is on both gasoline and diesel fuels sold at retail or commercially.  If you are operating vehicles over 26,000 GVW that are exempt from Oregon road tax, Portland also has a weight mile for those tax exempt vehicles.

If you are fueling inside the Portland city limits, that diesel tax will be charged at the pump when you fill up unless you are a P.U.C. tax exempted vehicle in Oregon.

Find a list of every diesel and gasoline tax by city and municipalities in Oregon see the Oregon Fuel Tax Group.

If you have any questions about Portland, Oregon diesel fuel standards please feel free to call or message Star Oilco for more information.

Star Oilco is here to be your Bulk Fuel Supplier in Portland, Oregon.

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For more on the subject of Diesel fuel please read these other posts by Star Oilco on the subject:

Every Question Star Oilco has been asked about Biodiesel

Every Question Star Oilco has been asked about Off Road Diesel

About Diesel Fuel – Star Oilco’s Diesel Fuel FAQ

Oregon Biodiesel Tax Breaks for Retail Stations

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Oregon Biodiesel and Ethanol Fuel Mandates 1024 640 Star Oilco

Oregon Biodiesel and Ethanol Fuel Mandates

Oregon Biofuel Blending Requirements for Gasoline and Diesel.

Oregon law has a 5% Biodiesel and 10% Ethanol fuel blend mandate.

In Oregon, you can expect to buy a biofuel with every gallon of gas or diesel, whether you are buying at a retail pump or commercially delivered bulk fuel. Unless you are expressly seeking out a ethanol-free premium unleaded or off road heating oil expressly free of biodiesel, you can expect the fuel will have a low carbon blend of biofuel in it.

Why does Oregon have biofuel blended in every gallon of fuel?

There are several layers of rules, requirements, and incentives placing a minimum of 5% biodiesel blend in diesel and a 10% ethanol blend in gasoline. The City of Portland’s Bureau of Development Services provides information and resources on the background of both Portland and Oregon’s requirements.

Oregon state has a 5% blend mandate for all diesel fuels sold statewide. Portland has its own standard of for 5% biofule in diesel, which is slightly different but functionally the same as the states. Oregon’s standard requires B5/R5 if it’s sold into  machinery (dyed off road or clear on road diesel), which requires a 5% biofuel component. In the  formation of this Oregon statewide mandate, renewable diesel was considered acceptable.

Oregon also has a 10% ethanol blend mandate for all gasoline fuels with a few exceptions. Portland has this same rule as it mandated ethanol blends prior to Oregon state. Oregon has exceptions for ethanol-free premium unleaded.  (Warning: the City of Portland has no exemption for non-oxygenated premium fuels) though there are some sellers of it. Oregon state’s exceptions being premium gasoline for aviation and non-ethanol premium gasoline sold at retail gas stations. This was adopted later after the initial Renewable Fuel Standard mandates. Portland did not follow Oregon with this flexibility for small engine or classic car enthusiasts seeking non-ethanol fuel.

The rules that drive biofuel use in Oregon’s fuel:

The City of Portland has its own Renewable Fuel Standard (RFS) which is seen in Portland City Code Chapter 16.60 Motor Vehicle Fuels. This RFS requires all diesel sold (either commercial or retail fuel) to contain a minimum 5% biodiesel (specifically methyl-ester molecule). The RFS also requires all gasoline sold (either commercial or retail gas stations) to contain a 10% blend of ethanol. In addition to this fuel blend requirement, Portland also has requirements for the original feedstock biodiesel is made from. Portland requires that 50% of the biodiesel feedstock be sourced from recycled vegetable oil, canola oil, and a few other types available in the Pacific NW.

The State of Oregon has its own Renewable Fuel Standard. It is less restrictive than Portland’s, allowing renewable diesel or biodiesel to meet its 5% blend requirement. You can find the law in Oregon Revised Statute 646.922. The Oregon RFS also requires a 10% ethanol to be blended with gasoline. There is an exception for premium gasoline to be ethanol-free.  This fuel is commonly called “Non-Oxy Premium” or “Clear Premium” by those seeking to order it.

If you want more information on successfully using Biodiesel and Ethanol in your fleet.

If your fleet is seeking to succeed with biofuels, here are some great resources to learn more about biodiesel, ethanol,  and renewable diesel fuels.

If you have questions about biofuels, Star Oilco can help. Do not hesitate to reach out if you have questions, even if you are not in our market. We want you to be successful in your fleet.  We are here to help.

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