Portland Adopts Renewable Fuel Standard Emergency Administrative Rule

The emergency rule change adopted by the City of Portland today, which comes shortly after permanent administrative rules were adopted earlier this month, effectively increases the carbon intensity (CI) requirement from 40 gCO2e/MJ to 46 gCO2e/MJ. This change is effective for 180 days to give the City time to advance a long-term solution for adjustments to the carbon intensity requirement.

View the temporary administrative rules

The City will continue to work with impacted stakeholders as we develop this approach. Staff welcome questions and additional stakeholder feedback as we work to develop a long-term resolution to this issue.

What is the RFS and what has changed?

The RFS regulates the volume of low-carbon biofuels blended with gasoline and diesel fuel sold in the city of Portland. Its intent is to phase out petroleum diesel and replace it with 50% renewable fuel this year, and 99% renewable fuel in 2030. Portland's policy uniquely includes a lifecycle carbon intensity (CI) requirement that previously limited fuels to 40g CO2e/MJ or less to ensure that more renewable fuels sold in Oregon will be lower carbon across their entire lifecycle.

Portland relies on Oregon DEQ certifications of lifecycle carbon intensity to determine compliance with the CI requirement. Due to rule changes at Oregon DEQ, fuel importers are required to begin using OR-GREET model 4.0 (instead of version 3.0) to demonstrate the lifecycle CI of fuels. The modeling change increases the operational CI value for all biodiesel and renewable diesel fuel products by an average of 5.5g CO2e/MJ. DEQ's modeling change impacts Portland's fuel supply as some products that had previously been allowed will now be disallowed.

Portland supports the DEQ model change because it improves the accuracy of accounting for lifecycle carbon emissions. However, since the modeling changes created an across-the-board increase in carbon emissions from all fuels, the City's goal with the emergency rule change is to ensure that fuel products approved by City Council under GREET Model 3.0 are still allowed under Model 4.0. To meet this goal, Portland has temporarily revised the CI requirement to allow an additional 6g CO2e/MJ. This temporary emergency rule change effectively increases the CI requirement from 40 gCO2e/MJ to 46 gCO2e/MJ.

Why is this an emergency rule change?

On May 15, 2026, the RFS's fuel blending requirement increases from 15% to 50% renewable for distributors. DEQ's recent modeling change reduced the number of available products that meet the 50% mandate. This limitation could make compliance more expensive and challenging for the fuel suppliers. The resulting risk of diesel fuel shortages or cost increases could seriously harm the public interest. The RFS Technical Advisory Committee identified this issue and recommended that the City align CI requirements with DEQ's model change to avert such consequences.