SALEM, OR - Oregon last week became the second state to require that most of the diesel sold in the state contains at least 5 percent biodiesel (B5).

"Policymakers in Oregon should be congratulated for displaying national leadership on clean energy issues," said Shelby Neal, regulatory affairs director for the National Biodiesel Board. "As a result of the biodiesel policy, Oregon's citizens will enjoy cleaner air, green jobs and a higher level of energy independence."

The state already had a 2 percent biodiesel (B2) requirement in effect. Oregon's B5 requirement was scheduled to be triggered when the in-state production capacity reached 15 million gallons annually, which the biodiesel plants recently accomplished. The requirement will generate about 25 million gallons of biodiesel demand annually.

The new statewide requirement took effect April 1, but the city of Portland has required B5 since July 2007.

"Increasing the use of domestically produced, low-carbon fuels like biodiesel is a win-win for Oregon," said Rick Wallace, a senior policy analyst at the Oregon Department of Energy who also serves as coordinator of the Columbia-Willamette Clean Cities Coalition. "We're supporting the local economy while reducing pollution, rather than relying entirely on fossil fuels to power our state."

Minnesota was the first state to pass a B2 biodiesel requirement, which has since increased to B5. The state's required volume of biodiesel is scheduled to rise to B10 by 2012, and B20 by 2015.

Washington and Pennsylvania both have a B2 requirement in effect. Connecticut, Louisiana, Massachusetts and New Mexico have all passed similar legislation that hasn't yet taken effect.