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Biofuel renewable fuel standard

https://olis.leg.state.or.us/LIZ/2009R1/Measures/Text/HB3497/EnrolledIntroduction

The 2007 Oregon Legislative Assembly passed House Bill (HB) 2210 (120 KB pdf), which included a renewable fuel standard (RFS) mandate. HB 2210 mandates biodiesel and ethanol in Oregon’s motor fuels and requires the Oregon Department of Agriculture (ODA) to study and monitor ethanol fuel production, use, and sales in Oregon and to implement the RFS.
 
To address citizens' concerns about the mandate to blend all gasoline with 10% by volume ethanol, the 2008 Oregon Legislature passed Senate Bill (SB) 1079 (36 KB pdf), providing exceptions for very specific applications. The 2009 Oregon Legislature passed House Bill (HB) 3497 (24 KB pdf) exempting premium unleaded gasoline from the ethanol mandate.
 


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Biodiesel mandate

The Oregon Department of Agriculture (ODA) has determined that Oregon's in-state biodiesel production capacity has reached at least 15 million gallons on an annualized basis. In compliance with Oregon's Renewable Fuel Standard [Ref. Oregon Revised Stature (ORS) 646.921 and ORS 646.922], effective April 1, 2011, all diesel fuel sold or offered for sale in Oregon must contain a minimum of 5 percent by volume biodiesel, creating a B5 biodiesel blend, except for 1) railroad locomotives, 2) marine engines and 3) home heating applications.
 

Exceptions to biodiesel mandate
Diesel fuel sold or offered for sale for use by railroad locomotives, marine engines, and home heating is exempt for the requirement to be blended with biodiesel.
 
B5 Notification Letter

Winterizing Diesel
In the State of Oregon, the required minimum B5 biodiesel fuel may have substances added to enhance its cold weather operation from October 1, through February 28, of the following year. It is important to emphasize that the fuel must begin as at least a B5 blend and then the winterizing products may be added. For reference, this allowance is found in Oregon Revised Statute (ORS) 646.922(3) and Oregon Administrative Rule (OAR) 603-027-0420(11)(e)(B).
 

Biodiesel delivery documentation
Delivery documentation of biodiesel blends is required to identify the specific volume percent of biodiesel blended with the petroleum diesel.  An example of a sufficient statement for a 5% biodiesel blend is, “B5 Biodiesel Blend”, in addition to all of the other required information on the documentation.  This is to certify the volume percent of biodiesel that is blended into the diesel fuel. During inspections the department will check delivery documentation for biodiesel blend requirements.
 

Biodiesel dispenser labeling
If the fuel is a 5% or less biodiesel blend, then no additional dispenser (“pump”) labeling is required. For information on labeling biodiesel blends please see our biodiesel and E85 fuel requirements page.
 

Biodiesel storage tank preparation
Biodiesel is a natural solvent and may absorb any water and contaminants in your storage tank.  It may distribute them through your delivery system and into the consumer’s vehicle.  Due to this characteristic, the maximum permissible water in a biodiesel or biodiesel blend storage tank is 1/4 inch.  Proper cleaning of the storage tanks to remove all water and other contaminants is essential prior to your first delivery of any biodiesel or biodiesel blend.  Also during this transition, frequent changing of the dispenser’s fuel filters may be required.
 

Biodiesel availability, price, and quality issues
ODA received some input from fuel distributors in Eastern Oregon along the Idaho border indicating potential concerns of availability and price regarding the October 1 deadline. ODA investigated these issues and found that biodiesel was available from Boise, Hermiston, Salem, Portland, and other sources.
 
ODA also received questions from dealers about whether it's legal to splash blend conventional diesel with biodiesel to create the required B5 blend.  While injection blending is preferred, splash blending is legal as long as the final product is a 5 percent biodiesel blend. The issue of sourcing a blended product as B5, or pure biodiesel and splash blending, is a decision of the distributor based on their ability to handle and store product. For more information on splash blending best practices, consult with your distributor.  The National Renewable Energy Laboratory's Biodiesel Handling and Use Guide (1.6 MB pdf) also provides information about splash blending.
 
The law does not allow ODA to provide allowances or exceptions to the requirement for B5 blends on the grounds of price. Nor does ODA have any standard for deciding what level of price differential would even trigger such an exception. Further, information available to the department indicates that sourcing B5 or biodiesel for blending, even outside the area, is available without adding significantly to the final fuel cost.
 
Fuel quality is a critical issue to fuel handlers and consumers, and ODA will be monitoring to ensure motor fuel quality meets appropriate specifications.
 
Biodiesel distributors and retailers can be located at:
http://www.biodiesel.org/buyingbiodiesel/distributors/biomaps/biomaps.shtm
http://www.biodiesel.org/buyingbiodiesel/retailfuelingsites/biomaps/biomaps.shtm
* The state does not endorse nor sponsor products, services, or information provided by these links.
 
 

Biodiesel blending guide
The Minnesota Department of Agriculture and the Minnesota Department of Commerce are offering a technical guide designed to help biodiesel users avoid problems as winter approaches. The guide was prepared by independent experts working with the Technical Cold Weather Issues Team set up by the two Minnesota agencies to study the issues related to biodiesel and cold-temperature use.
 
A Biodiesel Blend Handling Guide (916 KB pdf)*
*The state does not endorse or sponsor products, services, or information provided by these links.
 
 

Biodiesel troubleshooting
The fuel supplier or distributor is the number one source for addressing biodiesel issues. The National Biodiesel Board provides biodiesel users with a toll free number to troubleshoot fuel issues in the event that the fuel distributor lacks the ability to resolve the issue. Call the Biodiesel Hotline at 1-800-929-3437.
 

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Ethanol mandate

All retail dealers, nonretail dealers, or wholesale dealers may only sell or offer for sale gasoline that contains ten percent ethanol by volume, unless it meets exceptions in OAR 603-027-0420(3)(c).
 

Exceptions to ethanol mandate for premium gasoline
The 2009 Legislature passed House Bill (HB) 3497 (24 KB pdf) exempting premium unleaded gasoline of 91 octane or higher from the ethanol blend requirement. This became effective January 1, 2010.
 
Businesses are not required to offer a non-ethanol blended premium fuel, but they have the ability to make a business decision to provide it based upon customer demand.
 
Note to retailers:
  • No additional dispenser labeling is required
  • Delivery documentation must state that it is non-ethanol blended gasoline
  • Storage tanks must identify that it is non-ethanol blended gasoline
  • Important:  If a blending dispenser is used, the mid-grade portion must be disabled and labeling removed. This is because a 10% ethanol regular blended with a 0% ethanol premium will yield approximately a 6% ethanol mid-grade which would not be legal. The mid-grade must still contain 10% ethanol.
 
 

Exceptions to ethanol mandate for all grades of gasoline
To address citizens' concerns about the mandate to blend all gasoline with 10% by volume ethanol, the 2008 Legislature Special Assembly passed Senate Bill (SB) 1079 providing exceptions for very specific applications.
 
SB 1079 allows non-ethanol blended gasoline of any grade for the following applications only:
  • Aircraft,
  • Antique vehicles,
  • All-terrain vehicles,
  • Racing activity vehicles,
  • Snowmobiles,
  • Tools including but not limited to lawn mowers, leaf blowers, and chain saws, or
  • Watercraft.

Locations are not required to offer a non-ethanol blended fuel, but they have the ability to make a business decision to provide it based upon customer demand. The Oregon State Marine Board has a list of locations on their website offering non-ethanol blended gasoline.
 
 

Posting ethanol exceptions
Businesses that offer non-ethanol blended gasoline of less than 91 octane for sale shall post the exceptions in a position that is clear and conspicuous to the consumer. They must be in capitol letters and type at least 1/4 inch in height and 1/32 inch width type.
 
Read OAR 603-027-0430(1)(c) (90 KB pdf) carefully for specific requirements. You may download an example (28 KB pdf) of an acceptable exception posting that you may wish to use.
 
This special posting requirement does not apply to non-ethanol blended premium gasoline.

Ethanol delivery documentation
Gasoline blended with ethanol
Delivery documentation shall state that the gasoline is blended with ethanol and the volume percent of ethanol.
 
Non-ethanol blended gasoline
Delivery documentation shall state that the gasoline is non-ethanol blended.
 

Ethanol dispenser labeling
Gasoline dispensers are required to be labeled that the product contains ethanol. This label is required to be on the upper 50% of the dispenser’s front panels, in a position that is clear and conspicuous from the driver’s position in type at least 1/2 inch in height and 1/16 inch width of type.

Due to the required use of 10% by volume ethanol, the label is required to state the specific amount in the gasoline blend, for example, "THIS PRODUCT CONTAINS 10% ETHANOL" or similar language. Prohibited terms and phrases include but are not limited to, "Contains up to 10% ethanol," "May contain ethanol," or any other similar language.

 
If a non-ethanol blended gasoline of less than 91 octane is used in compliance with the exceptions, the dispenser shall be labeled, “NON-ETHANOL BLENDED GASOLINE FOR EXEMPTED USE ONLY (ORS 646.913)”.
 
Non-ethanol blended gasoline of 91 octane or higher does not require any special labeling.
 
 

Ethanol storage tank labeling
Storage tank fill connections of non-ethanol blended gasoline shall be permanently, plainly, and visibly marked that the product contained therein is non-ethanol blended gasoline for use only in the exceptions complying with ORS 646.913.
 

Ethanol tank preparation
If you are not presently selling gasoline blended with 10% by volume ethanol, you will need to prepare your storage tanks prior to your first delivery.  Ethanol acts as a solvent and will quickly absorb any water and contaminants in your tank and dispense that through the system and into the consumer’s vehicle.  Proper cleaning of tanks to remove all water and sediment is essential.  Also during this transition, frequent changing of the dispenser’s filters may be required.

For information on tank preparation, see the Oregon Department of Energy’s website at http://oregon.gov/ENERGY/RENEW/Biomass/Producing.shtml, or Oregon Department of Environmental Quality’s (DEQ) web site at http://www.deq.state.or.us/lq/tanks/ust/index.htm, or contact your fuel distributor.
 

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Biofuel production reporting

The Oregon Department of Agriculture is responsible to monitor biofuel production, use and sales in Oregon. To track this information, the department created a monthly production and sales report form.
 
Biofuel production & sales report (MS Word 27 KB)
Biofuel production & sales report (pdf 60 KB)
 
These reports will help the department answer questions from legislators and other stakeholders about the status of the biofuels industry in Oregon. The department also needs monthly biodiesel production reports to determine when producers have reached the threshold to trigger Oregon’s renewable fuel standard for biodiesel.
 
We request that each biofuel producer complete and submit the form monthly to the department no later than the 15th of the following month. The first report for October 2008 was due November 15, 2008.
 
Please send reports by email or regular mail to:
 
Stephanie Page, Renewable Energy Specialist
Oregon Department of Agriculture
635 Capitol St. NE
Salem, OR 97301
spage@oda.state.or.us

Contact Stephanie Page at 503-986-4565 or Measurement Standards at 503-986-4670 if you have questions or concerns regarding this form.

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Downloads

House and Senate Bills
House Bill 3497 (24 KB pdf), 2009 Legislature
House Bill 2210 (120 KB pdf), 2007 Legislature

Administrative rules
Temporary administrative rule (100 KB pdf), clean version (July 2009)
Temporary administrative rule (132 KB pdf), with changes (July 2009)
Sample exception poster (28 KB pdf), 3/12/08
 
Notification letters
Notice to Oregon gasoline dealers (512 KB pdf), 07/22/2009
Notice to B100 producers and importers (53 KB pdf), 9/23/08
Notice to biofuel producers (29 KB pdf), 9/22/08
Notice to Oregon gasoline dealers (524 KB pdf), 3/26/08
Notice to users of exempt equipment (520 KB pdf), 3/17/08
Notice to Oregon gasoline dealers (67 KB pdf), 10/11/07
 
Biofuel production and sales reports
Biofuel production & sales report (MS Word 27 KB)
Biofuel production & sales report (60 KB pdf)
 
Handouts
Biodiesel blending requirement (40 KB pdf), 9/23/09
Biodiesel Handling and Use Guide (1.6 MB pdf), (Courtesy of the National Renewable Energy Laboratory)
A Biodiesel Blend Handling Guide (916 KB pdf), (Courtesy of the Minnesota Department of Agriculture)

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For more information

Measurement Standards Division:  Biodiesel and E85 fuel requirements
Oregon Department of Energy: http://oregon.gov/ENERGY/RENEW/Biomass/Producing.shtml
Oregon Department Environmental Quality: http://www.deq.state.or.us/lq/tanks/ust/index.htm
Oregon State Marine Board: http://www.boatoregon.com/OSMB/news/ClearGasoline.shtml

Measurement Standards Division
Phone: 503-986-4670
Email: msd-info@oda.state.or.us

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