Oregon Clean Fuels Program
Clean Fuel Standards
OR CFP Scenario Simulator v2.0
Tuesday, 3rd March 2026
The Oregon CFP (OR CFP) demand-supply model is a credit/deficit balancing framework that projects credit generation, deficits, and credit bank evolution based on projected transportation fuel consumption while meeting the program’s carbon intensity reduction targets. By employing a credit/deficit demand-supply framework, the model evaluates the usage of various fuel types and generates projections for credit, deficit, and bank. It simulates vehicle sales, fleet turnover, retirement, and usage across different classes like BEV, HEVs, and PHEVs using economic and technical assumptions, and generates fuel demand projections through 2035 across gasoline and gasoline substitutes (e.g., ethanol), diesel and diesel substitutes (e.g., biodiesel, renewable diesel), compressed and liquefied natural gas (CNG and LNG), electricity, and hydrogen. By integrating varying assumptions on zero-emission vehicle (ZEV) uptake, renewable fuel penetration, and infrastructure development within a unified supply-demand structure, the model provides forward-looking insights into credit market balance, compliance trajectories, and credit bank dynamics for stakeholders across the clean fuels value chain.

Model Change Log:

This version of the model has been calibrated using the latest available data (till 2025 Q3). The scenarios have also been updated to reflect delayed timeline for full ZEV adoption, reduced renewable diesel blend in the diesel pool and increase of ethanol blend to 15%. Click here for the Explainer!

The Oregon Clean Fuels Program (OR CFP) is a key regulatory framework aimed at reducing the carbon intensity (CI) of transportation fuels in Oregon. Modeled similarly to California’s Low Carbon Fuel Standard, the program sets declining CI targets that fuel suppliers must meet over time, encouraging a gradual shift toward cleaner fuel alternatives.

A defining feature of the OR CFP is its credit-based compliance mechanism. Fuels with lower carbon intensity than the benchmark—such as renewable diesel, biodiesel, electricity, and renewable natural gas (RNG)—generate credits, while higher-carbon fuels like gasoline and diesel generate deficits. Obligated parties must balance deficits with credits, creating a market-driven incentive for cleaner fuel adoption.

In recent years, renewable diesel has emerged as a dominant contributor to credit generation within the program. Blend rates have exceeded expectations, reflecting strong supply growth and the fuel’s compatibility as a drop-in replacement for conventional diesel. Electricity credits, driven by increasing electric vehicle (EV) adoption, are also gaining importance, although their overall contribution remains smaller compared to liquid fuels in the near term.

Despite these positive trends, the program faces several challenges. Credit supply has at times outpaced demand, leading to relatively stable or softer credit prices. Additionally, future market dynamics will depend heavily on the pace of EV adoption, availability of low-CI feedstocks, and regulatory adjustments to CI reduction targets.

Looking ahead, the OR CFP is expected to play a critical role in Oregon’s decarbonization strategy. As targets become more stringent, the market will likely tighten, increasing reliance on advanced fuels and electrification. Continued policy support, infrastructure development, and innovation in low-carbon fuel pathways will be essential to ensure long-term program success and market stability.