Clean Fuel Standards
The current version of the Clean Fuels Program's regulation can be found on the Secretary of State's website.
The clean fuel standards are the annual average carbon intensity that a
regulated party must comply with. There is a standard for gasoline and gasoline
substitutes and one for diesel and diesel substitutes. The baseline year for the
program is 2015 and represents 10 percent ethanol blended with gasoline and 5
percent biodiesel blended with diesel. The rule requires a 10 percent reduction
in average carbon intensity from 2015 levels by 2025. Tables 1 and 2 at the end of OAR 340-253 contain these values and are shown here:
Deficits and Credits
Deficits are generated when the carbon intensity of a specific fuel exceeds
the clean fuel standard in a given year. Credits are generated when the carbon
intensity of a specific fuel is lower than the clean fuel standard in a given
Regulated parties in the Clean Fuels Program are importers
of gasoline, diesel, ethanol and biodiesel. An “importer” is the entity who has
ownership title to a transportation fuel from locations outside of Oregon at the
time it is brought into the State of Oregon. Businesses that produce ethanol and
biodiesel in Oregon are also regulated parties. Regulated parties must comply
with all of the regulations for the Clean Fuels Program.
Small importers are businesses that import less than 500,000 gallons of transportation fuels per year. Small importers do not have to comply with the Clean Fuel Standards. Small importers have the option of submitting their annual compliance report through the EZ-Fuels Online Reporting Tool for Fuel Distributors.
Fuels used in the following applications are exempt from the regulations: aircraft, construction equipment, farm tractors, farm vehicles, implements of husbandry, locomotives, log trucks, military tactical vehicles and tactical support equipment, racing activity vehicles and watercraft.
Credit generators are providers of clean fuels – fuels whose
carbon intensity is lower than the standard for the gasoline or diesel they
substitute for. Credit generators are not required to participate but can choose
to voluntarily participate by registering with the program if they want to generate credits. Examples include businesses that own electric vehicle charging
stations, dispensers for propane, producers of
biogas, electric utilities and transit agencies.
Requirements for regulated parties and credit
Collectively, regulated parties and credit generators who opt into the program are referred to as Registered Parties and must:
- Register with DEQ before producing fuel in Oregon, importing fuel into
Oregon or generating or transacting credits for fuels supplied in Oregon;
- Keep records for each transaction of transportation fuel imported, sold or
supplied for use in Oregon; and
- Submit quarterly annual reports using the
DEQ-administered Oregon Fuels Reporting System.
Regulated parties must initially comply with the Clean Fuel Standards by
balancing their credits and deficits for 2016 and 2017 by the end of the 2017
calendar year. Starting in 2018 regulated parties must comply yearly by the end
of each calendar year. Regulated parties can retire credits they generated themselves or purchase credits from other entities. A new Credit Clearance Market will provide an additional opportunity for regulated parties to comply with the clean fuel standards if they cannot generate or purchase sufficient credits during the year.
To register with the Oregon Clean Fuels Program:
Submit the following registration forms to: Oregon Clean Fuels and mail the copy with wet ink signatures to:
ATTN: Bill Peters
700 NE Multnomah St., Ste 600
Portland, Oregon 97232-4100
For more information on this program, email Oregon Clean Fuels.