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The Senate Committee on Energy and Environment will continue a public hearing this week on a bill that would effectively ban petroleum-based diesel fuel in Oregon by 2030, setting the stage for significant price volatility and supply uncertainty.

The effective ban imposed by Senate Bill 803 would happen first in the Portland metropolitan area. By the beginning of 2026, only renewable diesel could be sold in Clackamas, Washington and Multnomah counties. The mandate would apply to all of western Oregon two years after that. And beginning in 2030, petroleum-based diesel would be banned across the state.

The bill is intended to reduce Oregon’s carbon footprint. However, as OBI’s Sharla Moffett testified March 2, Oregon has only begun to adjust to a slew of climate-related regulations adopted as a result of a sweeping executive order issued by former Gov. Brown in 2020. Passing even more climate-related programs without ensuring that they are aligned with existing programs will only make it more difficult for Oregon to meet its climate goals, Moffett pointed out.

Speaking of misalignment, SB 803 would ban petroleum-based diesel fuel before adequate supplies of renewable diesel were available to replace it, ensuring significant price volatility. In the end, SB 803 would place Oregon’s climate policy far ahead of the technology needed to achieve it. A more sensible approach, Moffett argued, is to incentivize and accelerate technological innovation.

Read Moffett’s full testimony here.