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Oregon Clean Fuels Program

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Oregon Clean Fuels Program

Oregon Clean Fuels Program

Approximately one-third of Oregon's greenhouse gases come from transportation sources. Providing cleaner fuels such as lower carbon ethanol and biodiesel, electricity, natural gas, biogas and propane will help reduce these emissions. Oregon's 10 Year Energy Action Plan, Transportation Planning Strategy, and the Global Warming Commission's Roadmap to 2020 all cite lower carbon transportation fuels as being a critical piece of Oregon's environmental and economic future.

Environmental Quality Commission approves rules to move Clean Fuels Program forward

On Jan. 7, 2015, the Oregon Environmental Quality Commission approved the rules which lay out the next phase of the Oregon Clean Fuels Program, which seeks to cut greenhouse gases by lowering the carbon content in Oregon transportation fuels. The rules go into effect Feb. 1, 2015.

The approved rules:

  • Establish clean fuel standards to reduce greenhouse gas emissions from Oregon’s transportation fuels by 10 percent over a 10-year period, implementing House Bill 2186, which the Oregon Legislature passed in 2009.
  • Require importers of transportation fuels – owners of the fuel when it crosses into Oregon – to reduce the average carbon intensity of fuels they provide in Oregon to meet the annual clean fuel standards. To meet the standards, regulated parties can choose a variety of strategies, including incorporating more lower-carbon biofuels, natural gas, biogas, propane or electricity into their fuel mix, or purchase clean fuel credits from providers of clean fuels.
  • Allow providers of clean fuels to generate and sell clean fuel credits for the fuels they provide in Oregon.
  • Establish fuel supply and fuel price deferrals to contain the program’s cost.

Next steps

  • The Clean Fuels Program currently has a required sunset date of Dec. 31, 2015. The 2015 Oregon Legislature will consider whether or not to remove the sunset. If the Legislature removes the sunset, DEQ will continue to implement the program beyond 2015. If the Legislature does not remove the sunset, the program cannot be implemented.
  • As part of its continuing outreach, DEQ will provide technical assistance about program requirements to regulated parties, credit generators and brokers.
  • DEQ will continue to provide general information to legislators, interested stakeholders and the general public about changes to the program as it proceeds.

Recommendations from Industry

The Clean Fuels Advisory Committee was created by Gov. Kitzhaber in early 2014 to help answer questions about how to leverage the economic potential of clean fuels in Oregon and accelerate job creation and investment. The committee recently presented to the governor its final recommendations, which call on the Legislature to lift the sunset on the state’s Clean Fuels Program and strengthen consumer protections, citing the program’s potential to create jobs, position the state as a leader in alternative fuel production and save Oregonians more than a billion dollars in fuel costs.

Working with Regional Partners

In October 2013, the leaders of British Columbia, California, Oregon and Washington signed the Pacific Coast Action Plan on Climate and Energy, committing their governments to combat climate change and promote clean energy. A major feature of the plan is to adopt and maintain low carbon fuel standards in each jurisdiction.

As part of the effort to develop an integrated low-carbon fuel market for the Pacific Coast region, the International Center for Clean Transportation and E4tech recently released a study to investigate the potential to meet the fuel carbon goals of the above four jurisdictions of the Pacific Coast region, simultaneously. The study shows that the targets in the policies those governments have adopted or proposed can be met with a range of low-carbon fuel options including conventional biofuels, electric vehicles, natural gas and advanced cellulosic biofuels. Click here for the full study.

More information

Clean Fuels Program Regulations - Are you an Oregon producer or importer of transportation fuels? Everything you need to know to be in compliance.

History of the Oregon Clean Fuels Program - The rulemaking process and public participation including: advisory committee proceedings, workshop materials, reports, written public comments, audio files of oral testimony, formal rulemaking documents and more.

Questions and Answers - Questions that we hear most often from Oregonians.

Want to Know More about Clean Fuels? – Links to related information and projects.

For more information on this program, call 503-229-5388 or email Oregon Clean Fuels.

For more information about Air Quality, call 503-229-5359 or email.
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For more information about Air Quality call 503-229-5359 or email.

Oregon Department of Environmental Quality
Headquarters: 811 SW Sixth Ave., Portland, OR 97204-1390
Phone: 503-229-5696 or toll free in Oregon 1-800-452-4011
Oregon Telecommunications Relay Service: 1-800-735-2900  FAX: 503-229-6124

The Oregon Department of Environmental Quality is a regulatory agency authorized to protect Oregon's environment by
the State of Oregon and the Environmental Protection Agency.

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