In 2009 the Oregon Legislature passed HB 2186 authorizing the Environmental Quality Commission (EQC) to adopt a low carbon fuel standard to reduce the carbon intensity, or lifecycle greenhouse gas emissions per unit of energy, of Oregon’s transportation fuels. Under the CFP, all parts of a fuel’s lifecycle – extracting/growing, transporting, bio/refining, distributing, and combusting – are accounted for in a fuel’s carbon score – creating multiple opportunities to reduce carbon emissions. Common strategies to lower the average carbon intensity of transportation fuels in Oregon include: blending higher levels of biofuels into petroleum fuels, developing new feedstocks and technologies to make new lower carbon fuels, making existing technologies more efficient, and increasing the number of alternative fuel vehicles available.
The current CFP is designed to reduce the average carbon intensity of transportation fuels used in Oregon by at least 10% below 2015 levels by 2025.
Executive Order 20-04 (EO 20-04) directs DEQ and the EQC to expand the CFP to achieve reductions in average carbon intensity of transportation fuels used in Oregon of at least 20% (relative to 2015) by 2030, and of at least 25% by 2035. EO 20-04 also directs DEQ and the EQC to “advance methods [for] accelerating the generation and aggregation of clean fuels credits by utilities that can advance the transportation electrification goals set forth in Senate Bill 1044 (2019).
This workplan describes the steps necessary to carry out this expansion of the CFP, along with a high-level summary of some of the key policy issues that will be addressed leading up to and including rulemakings by the EQC.
This webinar walks you through this process including what is in scope, the timeline, and the opportunities for public engagement.
The Clean Fuels Program is a key component of Oregon’s plan to reduce greenhouse gases including creating cleaner cars, using cleaner fuels and reducing the amount that Oregonians drive. In addition to reducing greenhouse gases, the program has other benefits including reductions in other air pollutants, improvements to public health and increased energy security.
The purpose of the backstop aggregator is to capture the lost value of residential electric vehicle charging if an electric utility does not opt into the CFP. In the case where credits are stranded, the backstop aggregator will serve as the agent. DEQ will work with the selected entity to generate and sell credits and use the proceeds to promote and support transportation electrification across the state.
Oregon Revised Statutes (2017) Chapter 750, Section 163 authorizes the Office of Economic Analysis (OEA), with substantial assistance from DEQ, to produce annually a forecast regarding deficits and credits owing to fossil and alternative fuel consumption, as well as the availability of fossil and alternative fuels in Oregon. In particular, the forecast is to determine whether fuel supply will be sufficient to generate alternative fuel (ethanol, electricity, and diesel substitutes - including biodiesel, renewable diesel, natural gas, and propane) credits to meet the scheduled applicable low carbon fuel standards for the compliance period. The forecast report is required to include an assessment of banked deficits and credits at the beginning of the compliance period. The Clean Fuels Forecast is issued annually on Oct. 1.