SB 803 Standards for renewable diesel

03/03/2023
VOTE:NO
Died In Committee
Status (overview) of bill:https://olis.oregonlegislature.gov/liz/2023R1/Measures/Overview/SB803
Committee assigned to bill:https://olis.oregonlegislature.gov/liz/2023R1/Committees/SEE/Overview

This bill establishes standard for carbon intensity and other characteristics of diesel fuel used in on-road motor vehicles. It would ban the sale of petroleum diesel on a regional basis beginning in 2026 and encompassing the entire state by 2030 in an attempt to force the fuel industry to switch to renewable diesel as the fuel choice for all on-road diesel applications. Directs State Department of Agriculture to suspend requirement that fuels meet standard if supply is insufficient to meet anticipated demand. Directs department to suspend requirement that fuels meet standard if price of fuels that meet standard exceeds price of petroleum diesel.

This bill seeks to force a shift to renewable diesel. Renewable diesel supply shortages simply will not be improved in the three short years when this bill would go into effect. There is not currently enough renewable diesel available to meet Oregon’s fuel demands and this bill does nothing to improve the supply. Production of renewable diesel is limited, and to date Oregon DEQ has denied permitting a facility in our state. Perhaps this bill should be aimed at DEQ before mandating what is being blocked out of the state.

Farm prices have suffered and diesel fuel nearly 2 times higher and fertilizer 100% higher leaving them with no profit with which to reinvest into farming. That hurts local farm suppliers and jobs will be lost. This bill will increase fuel cost even more, which will force some farms to collapse.

It is not logical to force the phase out of petroleum diesel for a more expensive renewable diesel as we are heading into recession or without the marketplace having the capacity to replace that diesel, which it does not. Oregon’s Clean Fuels Program and other efforts by Executive Order will dramatically reduce carbon emissions from petroleum diesel making this bill needless.

This bill needs incentives for the development of renewable diesel production in Oregon to support such a proposal before any conversion is even possible. Renewable diesel is a very clean fuel and conversion is easy, but the supply chain needs developing to make it feasible.