Pride Disposal Joins Clean Fleet Program

25 Sep 2016

Article by James Cronin, Portland Business Journal

A Sherwood recycling and refuse disposal firm has become the first of its kind to join the state’s Clean Fuels Program, investing millions into new, natural gas-burning trucks.

Pride Disposal Co. is one of the latest businesses to sign up for the statewide program that aims to create a market for clean fuel credits — tradable assets created by companies that invest in clean fuel technology.

To date, 103 companies have signed on to the program, according to Cory-Ann Wind, who heads up the Clean Fuels Program for the Department of Environmental QualityTesla Motors and Fred Meyer joined earlier this year.

Pride is capitalizing on the clean fleet of trucks it has been amassing for the last five years. In that time the company has purchased 18 new compressed natural gas-burning trucks, replacing dirty diesel engines with the less carbon-intensive fuel.

The company, which has a CNG fueling station onsite, spent around $340,000 each for the trucks it acquired last year, said Mike Leichner, the company's president. Each truck costs between $30,000 and $50,000 more than equivalent haulers with diesel engines.

Pride can sell the credits it generates to fuel providers that are required to meet a carbon cap. Those include importers of diesel, gasoline and other fuels.

Despite the upfront expenses, the company will see savings from the lower cost, less volatile CNG fuel, Leichner said. Another incentive: The fuel comes from North America, not overseas sources.

“We use a balance of economics and ethics to make such decisions,” Leichner said. “There was savings and it made sense environmentally.”

As of Jan. 1, the Clean Fuels standard mandates fuel importers lower their product's carbon levels by 10 percent over 10 years. One way to do that is by blending in lower-carbon alternatives into their fuel mix.

The program, though, also allows fuel importers to acquire credits toward the 10 percent goal, which they can buy from companies investing in electric vehicle charging stations, propane or other, cleaner fuel systems.

Renew Oregon, a nonprofit supporting renewable energy use in the state, applauded the move.

"It's great to see the Oregon Clean Fuels standard working for small businesses in Oregon,” said Brad Reed, communications director. “Pride Disposal is a family-owned business helping to clean the air by shifting away from dirtier diesel fuel."