Celebrating 10 Years of Oregon’s Clean Fuels Program
Ten years ago, OEC championed a bold step toward a cleaner future.
The Clean Fuels Program was built on an elegant, yet transformative idea: Reward cleaner transportation fuels, encourage industry innovation, and reduce climate pollution from the state’s biggest emissions sources.
Despite significant hurdles, the program has been a resounding success at the ten-year mark. To commemorate this milestone, we sat down with OEC’s Executive Director and early Clean Fuels Program champion, Jana Gastellum, and Bill Peters, who leads the program at Oregon’s Department of Environmental Quality (DEQ), to discuss the impact of the program and lessons learned along the way.
For folks who haven’t heard of it, what is the Clean Fuels Program?
Bill: The basic purpose of the program is to create a value for innovating and commercializing low-carbon fuels to clean up the transportation system here in Oregon. The program operates on the principle that we’re going to take responsibility for all of the carbon pollution from the state’s transportation sector, and clean it up.
Jana: The Clean Fuels Program is a cornerstone for cleaning up transportation pollution. It’s part of a three-legged stool that says we need cleaner vehicles, cleaner fuels, and systems that help us get to where we need to go more efficiently. It promotes health, livability, innovation, and is part of a bigger strategy to clean up the transportation sector.
On a higher philosophical level, it’s also about believing that different things are possible. When I was growing up, no one could imagine running a vehicle on anything other than oil. Today we’re in a world where we don’t have to depend on oil.
What were some of the biggest challenges during the early years?
Jana: Oregon legislative leaders were really committed to this program. There was tremendous excitement and energy to innovate. The oil industry, however, liked the way things had been. They felt like they could come in, hire some lobbyists, throw millions of dollars around, and squash the program in Oregon, which would send a chilling effect to other states.
There’s always fear of change – but there was an even stronger will to figure it out. We had broad engagement from the business community, DEQ, academics, the American Lung Association and others to make sure the program was supported and implemented well. We had to defend the program in court against frivolous lawsuits, but were able to overcome the challenges oil corporations were throwing our way.
Bill: The basic premise is that we need to stop adding fossil carbon to the atmosphere. We’ve had a fossil fuel system supported by refineries and pipelines for over a hundred years. We have more than 4 million cars and trucks on the road. When we started the program there were fewer than 5,000 electric vehicles in Oregon.
It’s a long shift. We need individual Oregonians to choose cleaner fuels and cleaner vehicles. That means making those options available and helping explain how everything works.
Looking back after 10 years, what impact has the Clean Fuels Program had?
Bill: We’ve reduced millions of tons of pollution. As of the last set of data we collected for 2025, we hit the 10% carbon intensity reduction target. That means the fuels we use are 10% cleaner than they were in 2015, and over the life of the program we’ve reduced about 17.2 million tons of carbon dioxide going into the atmosphere.
I always think of the program as having two parallel mandates. One is to reduce as much climate pollution as we can. The other is to help the technology innovation and commercialization needed to get cleaner fuels and vehicles up and running.
Jana: It was cool to hear stories early on about what a little bit of electrification money could do. One rural electric cooperative got EV credits, put in an EV charger, and put up a highway sign. They felt like they could leverage it for tourism and economic development. Meals on Wheels has also benefited with electric vans that save on fuel costs so they can spend more on food for seniors.
I love that this program serves the whole state. Part of what we’re trying to do is reduce the green divide based on geography, income, or access. I’ve appreciated how DEQ has set up the program to serve all of Oregon and partner and problem-solve with bigger and smaller entities across the state.
My kids went to a preschool that overlooked I-84. Every molecule of air toxics that can be reduced from tailpipe pollution feels personal and important to me. Kids’ bodies are smaller and they’re more vulnerable. The faster we can get cleaner fuels and electric vehicles out there, the better.
Has Oregon’s Clean Fuels Program influenced other places?
Bill: Since the program went into effect, Washington passed a Clean Fuels bill, and we worked closely with the Department of Ecology as they stood up that program. New Mexico has now launched its version, and Hawaii passed a Clean Fuels bill. We’ve also gotten inquiries from states in the Midwest and East Coast.
The entire Pacific Coast from British Columbia down to Southern California now has one of these policies in place. Canada also has a version of this policy that covers the entire country.
Looking ahead, what do you hope the next 10 years look like?
Bill: We’re looking at helping transition the fleet over to electric vehicles because we know the cars being sold today are likely still going to be on the road in 2040. We need to make sure homeowners, renters, and everyone has access to charging because if you don’t know where you’re going to charge, you’re probably going to keep going with a gasoline or diesel vehicle.
What we’re really trying to do is create the ecosystem that’s unlocking even more reductions in the future. That’s one step on the way to the 2050 climate targets that we know we need in order to have a livable climate for our children.
Jana: I want it to be that kids born today feel like, “Oh, it’s weird that we used to drive on oil.”
It has been interesting talking with fleet managers. Frito-Lay was an early adopter of electric vehicles, and they talked about how their drivers experienced less fatigue and fewer accidents because the vehicles were smoother and quieter. Really being able to leverage clean technology for holistic benefit is what I would love to see more of in the future.
What lessons from the Clean Fuels Program can help guide future climate progress?
Bill: One thing that I would never underestimate is the need for somebody to go first – and then to share the story about what went right and, maybe more importantly, what went wrong. It’s about making sure people have examples they can learn from, that they understand what worked, and that they have information they can research themselves. These are not small changes for companies or fleets. Building that ecosystem of people who’ve done it first and can help bring others along is what’s going to accelerate the transition over the next decades.
Jana: One of the wonderful designs of the Clean Fuels Program is that long-term horizon and consistency. It creates certainty: Here’s our north star, here’s where we need to get, while still allowing for innovation and adjustment along the way.
I also love that early actors can be rewarded. Some people are ready to go further, faster immediately, and the credit system rewards them. They can keep going, and we don’t lose today’s progress because of how far we still need to go tomorrow.
It’s important to take time to celebrate. We’re thrilled to celebrate the 10th anniversary of progress under Oregon’s Clean Fuels Program!
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