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Portland gas stations since 2007 have sold diesel fuel that includes 5 percent biodiesel. And it’s likely to stay that way, at least for the foreseeable future.

The city of called for all diesel fuel sold in the city to contain at least 10 percent biodiesel as of July 1, 2010. But the city in March 2010 decided to delay the increase. And the city this week chose to stay at 5 percent indefinitely, citing concerns over engine warranties.

The Portland Water Bureau manages the city’s renewable fuel standard, and the bureau’s fleet runs on fuel with 99 percent biodiesel, or B-99. The city is comfortable using higher blends of biodiesel in its own equipment; however, Ty Kovatch, chief of staff for Commissioner Randy Leonard, said that requiring all diesel users to follow suit wouldn’t be in the best interest of consumers because of possible conflicts with warranties.

One problem is that when biodiesel cools, it can crystallize and cause engine problems in vehicles using higher percentages of the fuel, according to the .

“The B-5 standard was set based on the level of biodiesel that all engine manufacturers (guarantee),” Kovatch said. “As long as that remains the case, we won’t pursue something where people have to make a choice that could jeopardize their engine warranty.”

Since 2005, Jay’s Garage in Southeast Portland has supplied customers with fuel containing up to 99 percent biodiesel. Some businesses, such as Portland Roasting and Sustainable Northwest Wood, fill their fleets with the alternative fuel. For warranties, engine manufacturers are more concerned about the use of home-brewed biodiesel, which is more likely to cause problems, company owner Jay Dykeman said.

As long as someone using B-99 switches to a B-50 blend in winter, an engine should be safe, Dykeman said. Some patrons of Jay’s Garage have traveled nearly 200,000 miles in biodiesel-powered vehicles, and Dykeman said he has never received a complaint about a busted engine. The city, he said, should move forward with its B-10 requirement so it can continue to promote cleaner burning fuels.

“I think that’s unfortunate (that the city has delayed its increased biodiesel requirements) because Portland should be the leader,” Dykeman said. “They should be waving the flag.”

Sustainable Northwest Wood fuels up its two-vehicle fleet with B-99 in the summer and with B-50 in the winter, according to company president Ryan Temple. No engine trouble has arisen in two years of biodiesel usage, he said.

“We have a Dodge pickup and a larger commercial vehicle, and both do great with biodiesel,” Temple said. “In Portland, you don’t get those zero-degree days that cause concerns over starting an engine cold with biodiesel.”

Several states have renewable fuel standards, but Portland is the first and only U.S. city to have one, Kovatch said. Once manufacturers begin to guarantee engines running on greater concentrations of biodiesel, the city plans to implement B-10. But Kovatch said that may not happen for a while because research and development efforts have slowed.

The city’s renewable fuel standard, according to Ian Hill of Sequential Biofuels of Eugene, led the state of Oregon to pursue its own – a 2 percent biodiesel requirement. The state is in the process of increasing that requirement to 5 percent, Hill said.

“The city has been an incredible partner since we began our business eight years ago,” Hill said. “As we transition away from petroleum, policy decisions have helped push our production forward. We look forward to them continuing to be a strong partner. Industries won’t volunteer to pursue innovation. They need to be pushed.”