Will Portland weaken its policy to phase out diesel, replace it with biofuels?
Portland leaders may soon weigh whether to roll back parts of the city’s signature climate policy on replacing diesel with renewable fuels, a first-in-the-nation standard critical to reducing emissions and harmful particulate matter pollution. The policy, adopted by the City Council in 2022 and aimed at medium and heavy trucks, phases out the sale of petroleum diesel by 2030, gradually replacing it with diesel blended with renewable fuels at increasingly higher increments.Council members had hailed the diesel phase-out as a tool to reduce pollution in low-income neighborhoods often located near freeways with high concentrations of diesel emissions. As part of the policy, a 15% blend requirement began in 2024, a 50% blend will be required by 2026 and a 99% blend by 2030. Medium and heavy trucks affected by the policy include delivery trucks, school and transit buses, dump trucks, tractor trailers and cement mixers. But Portland’s Renewable Fuels Standards Advisory Committee is poised to recommend weakening the phase-out. The committee was established in July 2023 to advise the city Bureau of Planning and Sustainability director on technical and economic issues related to the renewable fuel supply as well as meeting the policy’s fuel requirements. A draft memo, made public in advance of the committee’s meeting this week, shows the committee is planning to ask the city to reduce the 2026 biofuel percentage requirement from 50% to 20% and delay implementation until 2028 or 2030. The memo was obtained by the Braided River Campaign, a Portland nonprofit that advocates for a green working waterfront, and shared with The Oregonian/OregonLive. The proposed rollback essentially would allow trucks to continue to emit black carbon or “soot” at a higher level and for longer than under the original plan.The draft also recommends pausing for at least two years strict restrictions on the type of feedstock used to make renewable fuels – a standard that three years ago was hailed as the most innovative, emission-reducing part of Portland’s diesel phase-out. The pause would allow retailers to fall back on using biofuels made from feedstocks such as soybean, canola and palm oils which have been linked to much higher carbon emissions, displacing food production and causing deforestation. The draft memo, addressed to Planning and Sustainability’s Director Eric Engstrom, says the changes would respond to unfavorable biodiesel and renewable diesel market conditions in Oregon and Portland, including the scarcity of low-carbon intensity feedstocks such as used cooking oil and animal tallow.It’s unclear who will decide on the future of the diesel phase-out. While Engstrom has sole discretion to make changes to the program’s rules, the City Council holds the authority to amend city code. Engstrom did not immediately comment on whether the recommended changes would require rule or code changes. Portland officials have said they are fully committed to electrification of trucks but that transition will take many years. Moving from diesel to biofuels is an interim step, they said, allowing for faster emission and particulate matter reductions. The committee’ draft recommendation comes as Portland leaders are debating the future of the Critical Energy Infrastructure Hub, a 6-mile stretch on the northwest bank of the Willamette River where most of Oregon’s fuel supply is stored. Zenith Energy, which operates a terminal at the hub that has drawn environmental opposition, has promised the city to convert from fossil fuel loading and storage to renewable fuels. Other companies at the hub are also eyeing renewable fuels as a new income stream. Earlier this week, the city unveiled four alternatives for the hub, one of which allows for unlimited renewable fuel expansion. Environmental advocates said the committee’s recommendations are unacceptable and would gut the renewable fuel policy’s environmental credibility.“This is a complete walk-back of a promise made to Portlanders,” said Marnie Glickman, Braided River Campaign’s executive director. “The city sold this policy on the promise of a rapid decline in carbon pollution. Now, before the strongest rules even take effect, the industry-dominated advisory board is asking for a hall pass to continue using the cheapest, dirtiest biofuels.” The committee is set to refine the memo at its meeting on Thursday and may vote on the recommendation. It must submit the final recommendation to Engstrom by mid-October. Biofuel cost is one of the major reasons the committee cites for the recommended changes. “If the RFS (renewable fuel standard) is left unchanged, the cost of the diesel fuel in Portland could get significantly higher in the City of Portland compared to the rest of the state of Oregon due to the combined higher requirement of renewable content and lower carbon intensity,” the memo said. The draft memo also says Portland’s program has trouble competing with other regional markets such as California for scarce low-carbon intensity biofuels. It also mentions Trump’s One Big Beautiful Bill excluding feedstocks supplied from countries outside North America from tax incentives – which is likely to further reduce the supply of low-carbon feedstocks. Glickman said she’s also concerned about the committee’s potential conflict of interest when making recommendations to the sustainability director – a fact the draft memo acknowledges. Six of the seven members of the advisory committee are representatives of fuel producers and suppliers – including bpAmerica, Phillips 66 and the Western States Petroleum Association. The committee’s only non-industry member – Andrew Dyke, a senior economist at ECOnorthwest – declined to comment on the draft memo. In 2006, Portland became the first city in the U.S. to adopt a renewable fuel standard, which required the city’s fuel retailers to sell a minimum blend of 5% biodiesel. The city updated the policy in 2022 to a full diesel phase-out. The current policy far exceeds the federal and state renewable fuel standards.If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.
Portland’s Renewable Fuels Standards Advisory Committee is poised to recommend delaying the phase-out -- but the decision on how to move ahead will be made by city leaders.
Portland leaders may soon weigh whether to roll back parts of the city’s signature climate policy on replacing diesel with renewable fuels, a first-in-the-nation standard critical to reducing emissions and harmful particulate matter pollution.
The policy, adopted by the City Council in 2022 and aimed at medium and heavy trucks, phases out the sale of petroleum diesel by 2030, gradually replacing it with diesel blended with renewable fuels at increasingly higher increments.
Council members had hailed the diesel phase-out as a tool to reduce pollution in low-income neighborhoods often located near freeways with high concentrations of diesel emissions.
As part of the policy, a 15% blend requirement began in 2024, a 50% blend will be required by 2026 and a 99% blend by 2030. Medium and heavy trucks affected by the policy include delivery trucks, school and transit buses, dump trucks, tractor trailers and cement mixers.
But Portland’s Renewable Fuels Standards Advisory Committee is poised to recommend weakening the phase-out.
The committee was established in July 2023 to advise the city Bureau of Planning and Sustainability director on technical and economic issues related to the renewable fuel supply as well as meeting the policy’s fuel requirements.
A draft memo, made public in advance of the committee’s meeting this week, shows the committee is planning to ask the city to reduce the 2026 biofuel percentage requirement from 50% to 20% and delay implementation until 2028 or 2030.
The memo was obtained by the Braided River Campaign, a Portland nonprofit that advocates for a green working waterfront, and shared with The Oregonian/OregonLive.
The proposed rollback essentially would allow trucks to continue to emit black carbon or “soot” at a higher level and for longer than under the original plan.
The draft also recommends pausing for at least two years strict restrictions on the type of feedstock used to make renewable fuels – a standard that three years ago was hailed as the most innovative, emission-reducing part of Portland’s diesel phase-out.
The pause would allow retailers to fall back on using biofuels made from feedstocks such as soybean, canola and palm oils which have been linked to much higher carbon emissions, displacing food production and causing deforestation.
The draft memo, addressed to Planning and Sustainability’s Director Eric Engstrom, says the changes would respond to unfavorable biodiesel and renewable diesel market conditions in Oregon and Portland, including the scarcity of low-carbon intensity feedstocks such as used cooking oil and animal tallow.
It’s unclear who will decide on the future of the diesel phase-out. While Engstrom has sole discretion to make changes to the program’s rules, the City Council holds the authority to amend city code.
Engstrom did not immediately comment on whether the recommended changes would require rule or code changes.
Portland officials have said they are fully committed to electrification of trucks but that transition will take many years. Moving from diesel to biofuels is an interim step, they said, allowing for faster emission and particulate matter reductions.
The committee’ draft recommendation comes as Portland leaders are debating the future of the Critical Energy Infrastructure Hub, a 6-mile stretch on the northwest bank of the Willamette River where most of Oregon’s fuel supply is stored. Zenith Energy, which operates a terminal at the hub that has drawn environmental opposition, has promised the city to convert from fossil fuel loading and storage to renewable fuels. Other companies at the hub are also eyeing renewable fuels as a new income stream.
Earlier this week, the city unveiled four alternatives for the hub, one of which allows for unlimited renewable fuel expansion.
Environmental advocates said the committee’s recommendations are unacceptable and would gut the renewable fuel policy’s environmental credibility.
“This is a complete walk-back of a promise made to Portlanders,” said Marnie Glickman, Braided River Campaign’s executive director. “The city sold this policy on the promise of a rapid decline in carbon pollution. Now, before the strongest rules even take effect, the industry-dominated advisory board is asking for a hall pass to continue using the cheapest, dirtiest biofuels.”
The committee is set to refine the memo at its meeting on Thursday and may vote on the recommendation. It must submit the final recommendation to Engstrom by mid-October.
Biofuel cost is one of the major reasons the committee cites for the recommended changes.
“If the RFS (renewable fuel standard) is left unchanged, the cost of the diesel fuel in Portland could get significantly higher in the City of Portland compared to the rest of the state of Oregon due to the combined higher requirement of renewable content and lower carbon intensity,” the memo said.
The draft memo also says Portland’s program has trouble competing with other regional markets such as California for scarce low-carbon intensity biofuels. It also mentions Trump’s One Big Beautiful Bill excluding feedstocks supplied from countries outside North America from tax incentives – which is likely to further reduce the supply of low-carbon feedstocks.
Glickman said she’s also concerned about the committee’s potential conflict of interest when making recommendations to the sustainability director – a fact the draft memo acknowledges. Six of the seven members of the advisory committee are representatives of fuel producers and suppliers – including bpAmerica, Phillips 66 and the Western States Petroleum Association.
The committee’s only non-industry member – Andrew Dyke, a senior economist at ECOnorthwest – declined to comment on the draft memo.
In 2006, Portland became the first city in the U.S. to adopt a renewable fuel standard, which required the city’s fuel retailers to sell a minimum blend of 5% biodiesel. The city updated the policy in 2022 to a full diesel phase-out. The current policy far exceeds the federal and state renewable fuel standards.
If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.