Lower Emission Fuels
Lower-emission transportation fuels have a lower carbon intensity than conventional gasoline or diesel, meaning they produce fewer greenhouse gas emissions to move a comparable vehicle the same distance. Fossil fuels can reduce their carbon intensity when blended with lower-carbon alternatives like ethanol, biodiesel or renewable diesel. In some cases, these lower-carbon fuels can also be used on their own as substitutes for fossil fuels.
Long term, we expect a wide-scale electrification of on- and off-road transportation vehicles. Investing in low-emission fuels in the meantime will help keep Oregon on track for our overall 2050 climate change goals. (See our Vehicle Technology page for more detail)
Lower emission fuels: Emissions reduction vision
By 2050, achieve a 20% reduction in lifecycle carbon intensity of non-electric fuels used by passenger, transit and delivery vehicles from 1990 levels.
By 2050, achieve a 30% reduction in lifecycle carbon intensity of non-electric fuels used by long-haul freight trucks, trains, and ships, relative to 1990 levels.
Build public fueling stations for lower emissions fuels along Oregon’s designated alternative fuel corridors and other major routes across the state.
How Oregon is doing
Reducing carbon intensity through the Clean Fuels program
The average carbon intensity of Oregon’s transportation fuels has been steadily decreasing in response to the Clean Fuels program, run by the Oregon Department of Environmental Quality. The program regulates the transition to lower carbon fuels by incentivizing cleaner production and sourcing of fuels. It also incentivizes fuel blends that reduce carbon intensity per gallon or fully replace the fossil fuel. This can happen by encouraging practices that use less carbon to generate the fuels, or by helping individuals and companies switch to cleaner vehicles.
The program currently requires a 20% carbon intensity reduction by 2030 and a 37% reduction by 2035, when combining reductions from liquid fuels and alternative fuel vehicles, including electric, natural gas, propane, and hydrogen vehicles.
In November 2025, Governor Tina Kotek instructed DEQ to propose extending the reduction targets to at least 50% reduction by 2040. As of the middle of 2026, the agency is working through the state rulemaking process to make those changes.
The most recent rounds of Clean Fuels program updates has also added incentives for transit providers, off-road freight, and long-haul freight truck fleets to shift to electric vehicles. This is good news because with federal setbacks in electrification (See Vehicle Technology page), we may have to rely more on low emission fuels to meet our climate goal.
Cars, trucks, SUVs and smaller delivery vehicles
Oregon is still expected to make progress in fuel carbon intensity for smaller vehicles. These vehicles use gasoline with at least 10% ethanol blend, per state standard. A 15% ethanol blend standard is anticipated by 2035 under the existing Clean Fuels Program and the Climate Protection Program.
A 15% blend is the limit for gasoline-ethanol fuels without expensive changes to vehicle engines. Further gains can come through incentivizing production of ethanol that emits less carbon. Long term, we expect wide-scale electrification of these vehicles.
Larger delivery vehicles, transit, and long-haul trucks
Our progress for this group varies by vehicle sector. Transit and larger delivery vehicles are doing well, but long-haul freight trucks lag behind our 2050 vision.
Conventional vehicles in these sectors use diesel blended with at least 5% biodiesel or renewable diesel according to state standard. Diesel blends are priced competitively with non-diesel blends and are available at many gas stations statewide. In 2025, over 20% of diesel gallons sold in Oregon were biodiesel or renewable diesel.
Biodiesel is plentiful throughout the U.S. but renewable diesel, which is popular for its performance and environmental benefits, has been in short supply. Multiple private renewable diesel production projects are expected to be up and running over the next few years, and that should ease supply issues.
As of 2025, nearly half of the diesel used by Oregon Department of Transportation fleet vehicles was either biodiesel or renewable diesel. Oregon transit providers are also turning to renewable diesel while they work to transition to battery and hydrogen fuel cell electric buses. Transit providers in Portland, Eugene, and Bend are using 100% renewable diesel in all diesel bus fleet miles today.
Decarbonizing heavy duty transportation over the long term will require further innovation on fuel technology or a transition to zero emission vehicles, including battery and hydrogen fuel cell electric. Oregon, along with California and Washington, plan to use shared federal funds to develop several EV charging stations and hydrogen stations to support medium and heavy-duty vehicles along Interstate 5.
Rail, ship and aviation yard equipment fuels
Renewable diesel use is increasing in this group of vehicles, but fuel supply remains low.
While some off-road equipment can be electrified now, like airport support equipment, construction yard trucks, and cargo handling equipment, lower emission fuels will be key to reducing emissions for off-road equipment until new vehicle and technology options are available in all categories.
Planes, boats, trains
Oregon doesn’t have metrics for planes, boats, and trains, but these vehicles produce over 20% of Oregon’s greenhouse gas emissions. State agencies will work with our partners across the state to advance ways to reduce emissions from these vehicles.
Sustainable aviation fuel is produced in the U.S. but use is limited in Oregon. The Port of Portland is committed to making sustainable aviation fuel available at Portland International Airport. They’ll do this by working with partners to accelerate supply chain development and support regulatory incentives to make sustainable aviation fuel more widely available.
How Oregon can improve
Oregon will need a mix of investments from the public and private sectors to increase the availability of lower emission fuels and build out supporting infrastructure.
DEQ has initiated rulemaking to extend the Clean Fuels program out to at least 2040. The goal of that rulemaking is to set a clear path for the program’s requirements to further reduce emissions from nearly all the transportation fuels the state uses. The rulemaking is also charged with promoting the strategic electrification of vehicles in a way that continues to support affordable and reliable transportation for Oregonians.
State government agencies are working to accelerate the shift to lower emission fuels by leveraging the Clean Fuels regulations, especially in the wake of the uncertainty of federal funding and vehicle regulations. State actions could include:
ODOT can help transit operators make the transition to lower emission fuels and vehicles through fleet asset planning, funding, and compliance under state and federal programs.
State agencies can incentivize more production of lower emissions fuels by leading with bulk use in public fleets.
The state could work with the private sector to deliver more renewable diesel to meet demand across the state. The Oregon Clean Fuels Program can work with neighboring states to align clean fuels policy to support the build out of renewable liquid and alternative fuel production and infrastructure.
The state could implement recommendations from studies that identified how Oregon can prepare for hydrogen fuel technology over the next 15 years: The Oregon Department of Energy’s Renewable Hydrogen study, and ODOT’s Hydrogen pathways study. Widespread adoption of hydrogen will require expanded hydrogen production and fueling infrastructure, lower cost ways to generate low emission “clean” hydrogen, and new regulatory processes to test and certify hydrogen refueling stations. (See the Long Haul Trucks page for more information)
The state could implement recommendations from the Oregon Energy Strategy, which highlights the need to advance the access and use of low-carbon fuels in sectors that are hard to electrify, including heavy-duty transportation and aviation, rail, and marine transport.
ODOT can designate more of Oregon’s highways and interstates as Alternative Fuel Corridors, which may allow them to receive more resources to expand infrastructure for lower emission fuels.
ODOT and local road managers can follow recommendations to reduce greenhouse gas emissions from road construction and maintenance in ODOT’s report on agency operational greenhouse gas emissions and a DEQ report on non-road vehicle emissions.
In general, the Oregon DEQ will implement the Clean Fuels Program, which will increase the availability of lower emission fuels and lower their prices. ODOT will focus on refueling and charging infrastructure for battery and hydrogen fuel cell electric vehicles.