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Oregon Legislation Targets Diesel Fuel Supply Chain

A controversial bill aimed at restricting petroleum diesel sales could reshape freight operations in the Pacific Northwest if enacted.

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SALEM, Oregon — Oregon House Representative Karin Power introduced HB 3305, a legislative proposal that seeks to phase out the sale of petroleum-based diesel fuel across the state. The bill specifically targets card-lock and retail fueling locations, creating a strict timeline that would force a transition toward renewable diesel or biodiesel blends containing at least 99 percent non-petroleum content. If passed, the state would mandate a shift away from traditional fuel sources starting as early as 2024 for non-retail outlets in Clackamas, Washington, and Multnomah counties.

For the average CDL-A driver, this legislation represents a significant shift in how fuel is sourced and priced along major freight corridors. The bill defines petroleum diesel broadly, effectively outlawing the standard fuel currently powering the vast majority of heavy-duty trucks on the road today. By setting a statewide ban for non-retail dealers by 2027 and retail dealers by 2028, the proposal forces a rapid infrastructure pivot that could leave many owner-operator rigs without access to traditional fuel supplies in key industrial hubs.

The legislative language differentiates between retail and non-retail dealers, applying different compliance deadlines to each. Retail dealers, defined as establishments selling fuel to the general public, face a 2025 deadline in the three specified counties before the 2028 state-wide mandate takes effect. Representative Power claims the policy is designed to transition the state toward cleaner fuel types and suggests that some trucking companies have already identified cost savings through renewable alternatives, though the proposal has faced immediate backlash from stakeholders concerned about the logistical feasibility of such a rapid transition.

What This Means for Drivers

The operational impact for an OTR truck driver would be immediate and severe if fueling networks fail to convert their pumps to renewable-only blends in time. Most modern diesel engines require specific fuel standards, and a sudden restriction on petroleum-based products could lead to severe supply shortages and unpredictable fuel surcharges. Drivers operating through the Pacific Northwest would need to carefully monitor fuel availability, as the mandate could effectively render current card-lock systems incompatible with standard diesel fuel. This transition creates uncertainty for anyone looking for stable truck driver jobs, as carriers may struggle to maintain consistent routes if their fueling infrastructure is compromised.

Industry Reaction

The Oregon House Republican Caucus has been vocal in its opposition, labeling the bill a direct attack on the working class and the state's freight economy. Representative Shelly Boshart Davis emphasized that the entire regional supply chain relies on the free flow of freight via truck and rail, both of which remain dependent on traditional diesel engines. Critics of the bill argue that there are currently no cost-effective, commercially available alternatives that can maintain the current level of freight volume without causing widespread economic disruption and job losses. While trucking companies are hiring now, the industry remains wary of legislative overreach that ignores the mechanical realities of heavy-duty transportation.

Key Points

  • HB 3305 mandates a phase-out of petroleum diesel starting in 2024 for non-retail dealers in three major Oregon counties.
  • The legislation establishes a full statewide ban for non-retail dealers by 2027 and retail dealers by 2028.
  • Only fuel blends consisting of at least 99 percent biodiesel or renewable diesel would remain legal for motor vehicle use under the proposal.
  • Opposition leaders warn the bill could destroy industries relying on heavy equipment and threaten the livelihoods of thousands of Oregonians.

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Photo by cottonbro studio on Pexels

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Tasha Bowman
Safety advocate and CDL instructor based in Tennessee. Tasha writes about roadside inspections, CVSA compliance, HOS violations, and the real-world gap between what the rulebook says and what happens at the scale house.