Public comment period open for Renewable Fuel Standard administrative rules

The public is invited to submit comment on the proposed administrative rules for the Renewable Fuel Standard. Since permanent rules were adopted on August 23, 2024, BPS has received feedback from covered entities on a wide variety of implementation challenges. This public comment period seeks input on proposed changes BPS has made to the administrative rules in response.

This rulemaking resolves issues raised by regulated parties, removes outdated content (i.e., 2024 deadlines), adds a new proposed penalty schedule, changes authority to City Administrator, and makes formatting changes for consistency with other City of Portland Administrative Rules.

The most significant changes include:

• More flexibility for book and claim compliance by allowing a letter from the importer or position holder taking responsibility for book and claim reporting, rather than a written agreement.
• More flexibility for some distributors and commercial cardlocks to enable book and claim compliance, that otherwise do not have workable compliance options.
• More flexibility for covered entities to use excess low carbon fuels in one compliance period to support compliance in the following period, like the Oregon DEQ Clean Fuels program requirements.
• A new rule requiring Oregon Fuel Pathway Codes on at least one Product Transfer Document associated with any delivery made to a facility in the city of Portland.
• A new exclusion for retained fuel (or fuel returned to storage) that can no longer comply with the carbon intensity standard due to lack of a known fuel pathway.
• Administrative rule authority is moved from the BPS Director to the City Administrator following charter reform organizational changes.
• Specification that BPS will use the certified population numbers from Portland State University Population Research Center for book and claim compliance.
• Allowance for covered entities to submit book and claim and delivered fuel summary reports on the following business day, if the deadline falls on a National holiday.
• New penalty schedule for violations of P.C.C. 16.60 and the RFS Administrative Rules.

Additional changes were made to clarify definitions and there are numerous non-substantive formatting, text, and punctuation changes for consistency with other City policy documents.

Submit public comment

Policy History

In December 2022, Portland City Council unanimously adopted amendments to the RFS, which regulates the volume of low-carbon biofuels blended with gasoline and diesel fuel sold in the city of Portland. The policy intent is to phase out petroleum diesel sold in Portland and replace it with 99 percent renewable fuels by 2030. Portland's policy uniquely includes a carbon intensity standard, to ensure that the renewable fuels sold here will be lower carbon across their entire lifecycle.

The new diesel fuel sales standards went into effect on July 1, 2024, when retailers were required to begin selling diesel with a biofuel content of 15% and that meets the carbon intensity standard. Administrative Rules were initially adopted on March 13, 2024. Interim Rules went into effect on May 15, 2024. Permanent rules were adopted by BPS and effective August 23, 2024. This administrative rulemaking proposes updates to the most recent permanent rules.

Process

BPS has gathered feedback from stakeholders over the last year and a half regarding challenges with implementation and compliance. Staff met individually with a variety of covered entities in November and December 2025 to hear their concerns and seek recommendations for rule changes. In addition, BPS has received feedback from the Technical Advisory Committee regarding the program requirements and potential impacts resulting from uncertainty in market conditions. BPS is proposing these rule changes to address the concerns raised by stakeholders and seeks input on these changes through the public review and comment period in February 2026. BPS intends to issue the permanent final rule in Spring 2026.