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Oregon Clean Fuels Program

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Clean Fuels Program Regulations

Here is an overview of the Clean Fuels Program.

Program basics

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.

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 year.

graph showing generated credits and deficits

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 the Clean Fuels Program.

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 if they want to generate credits for fuel they provide in Oregon. Examples include businesses that own electric charging stations, compressors for natural gas, dispensers for propane or producers of biogas.

Requirements for regulated parties and credit generators:

  • 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, including its carbon intensity value and whether the obligation is being transferred or retained; and
  • Submit quarterly progress reports and annual compliance reports using the DEQ-administered CFP Online System.

Compliance timeline

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.

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.

Exemptions

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.

To register with the Clean Fuels Program:

Submit the following registration forms to: OregonCleanFuels@deq.state.or.us.

Contact

For more information on this program, call 503-229-5388 (toll-free in Oregon at 800-452-4011, ext. 5388) or email Oregon Clean Fuels.

[print version]

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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