Department of Environmental Quality
Chapter 340
Division 253
OREGON CLEAN FUELS PROGRAM
340-253-0400
Carbon Intensities
(1) OR-GREET. Carbon intensities for fuels must be calculated using OR-GREET 3.0 or a model approved by DEQ. If a party wishes to use a modified or different lifecycle carbon intensity model, it must be approved by DEQ in advance of an application under OAR 340-253-0450.
(2) DEQ review of carbon intensities. Every three years, or sooner if DEQ determines that new information becomes available that warrants an earlier review, DEQ will review the carbon intensities used in the CFP and must consider, at a minimum, changes to:
(a) The sources of crude and associated factors that affect emissions such as flaring rates, extraction technologies, capture of fugitive emissions, and energy sources;
(b) The sources of natural gas and associated factors that affect emissions such as extraction technologies, capture of fugitive emissions, and energy sources;
(c) Fuel economy standards and energy economy ratios;
(d) GREET, OR-GREET, CA-GREET, GTAP, AEZ-EF or OPGEE;
(e) Methods to calculate lifecycle greenhouse gas emissions;
(f) Methods to quantify indirect land use change; and
(g) Methods to quantify other indirect effects.
(3) Statewide carbon intensities.
(a) Registered parties must use the statewide average carbon intensities listed in Table 4 under OAR 340-253-8010 for the following fuels:
(A) Clear gasoline or the gasoline blendstock of a blended gasoline fuel;
(B) Clear diesel or the diesel blendstock of a blended diesel fuel;
(C) Fossil CNG;
(D) Fossil LNG; and
(E) Fossil LPG.
(b) For electricity suppliers,
(A) The statewide average electricity carbon intensity is calculated annually under OAR 340-253-0470 and posted on the DEQ website.
(B) Registered parties may use an electricity carbon intensity different from the statewide average under subsection (b)(A) if:
(i) The utility has applied for an individual carbon intensity under OAR 340-253-0470; or
(ii) The party generates lower carbon electricity at the same location as it is dispensed into a motor vehicle consistent with the conditions of the approved fuel pathway code under OAR 340-253-0470(3).
(c) A hydrogen supplier may apply to use the applicable value in Table 4 under OAR 340-253-8010 or apply for a specific carbon intensity under OAR 340-253-0450. DEQ may require application materials as part of its review of an application to use a Table 4 value in order to determine if that value is appropriate and applicable. DEQ may not approve the use of a Table 4 value if it believes the actual operational carbon intensity of the hydrogen will exceed the Table 4 value.
(4) Carbon intensities for established fuel pathways. Except as provided in sections (3) or (5), registered parties may use a carbon intensity that:
(a) CARB has certified for use in the California Low Carbon Fuel Standard program, that has been adjusted for fuel transportation distances, indirect land use change and other comparable adjustments, and that has been reviewed and approved by DEQ as being consistent with OR-GREET 3.0; or
(b) Matches the description of a fuel pathway listed in Table 4 under OAR 340-253-8010, provided that:
(A) For Hydrogen produced using one or more of biomethane or wind or solar electricity, the producer of the hydrogen must:
(i) Demonstrate to DEQ that the value in Table 4 is appropriate for its production facility; and
(ii) Submit retirement records from an electronic tracking system recognized by DEQ such as WREGIS or M-RETS Renewable Thermal on an annual basis that the renewable electricity and biomethane attributes, as applicable, were not claimed in any other program except for the federal RFS and the greenhouse gas reporting program under OAR chapter 340, division 215. Any such claims under the federal RFS must be made for the same use and volume of biomethane or its derivatives as it is being claimed for in the CFP, or the claim under the CFP is invalid; and
(B) To use the hydrogen electrolysis pathway using only electricity from the Bonneville Power Administration (BPA), the producer of the hydrogen must:
(i) Demonstrate in its request that its electricity is sourced from a customer utility that relies entirely on BPA for all of the power it needs to meet its total load; and
(ii) Submit records annually showing that the full electric load for the electrolyzer is being met by that utility’s electricity.
(5) Primary alternative fuel pathway classifications. If it is not possible to identify an applicable carbon intensity under either section (3) or (4), then the regulated party, credit generator, or aggregator has the option to develop its own fuel pathway and apply for it to be certified under 340-253-0450. Fuel pathway applications fall into one of two tiers:
(a) Tier 1. Conventionally-produced alternative fuels of a type that have been well-evaluated in the Oregon and California low carbon fuel standards. Tier 1 fuels include:
(A) Starch- and sugar-based ethanol;
(B) Biodiesel produced from conventional feedstocks such as plant oils, tallow and related animal wastes and used cooking oil;
(C) Renewable diesel produced from conventional feedstocks such as plant oils, tallow and related animal wastes and used cooking oil;
(D) Natural Gas;
(E) Biomethane from landfills; anaerobic digestion of dairy and swine manure or wastewater sludge; and food, vegetative or other organic waste.
(F) Biogas to electricity.
(b) Tier 2. All fuels not included in Tier 1 including but not limited to:
(A) Cellulosic alcohols;
(B) Biomethane from other sources;
(C) Hydrogen;
(D) Renewable hydrogen;
(E) Renewable hydrocarbons other than renewable diesel produced from conventional feedstocks;
(F) Biogenic feedstocks co-processed at a petroleum refinery
(G) Alternative Jet Fuel;
(H) Renewable propane; and
(I) Tier 1 fuels using innovative methods, including but not limited to carbon capture and sequestration or a process that cannot be accurately modeled using the simplified calculators.
(6) Specified source feedstocks. Fuels that are produced from a specified source feedstock may be eligible for a reduced carbon intensity value when applying under OAR 340-253-0450 so long as they meet all of the following requirements:
(a) Specified source feedstocks are non-primary products of commercial or industrial processes for food, fuel or other consumer products and include, but are not limited to, used cooking oil, animal fats, fish oil, yellow grease, distiller’s corn oil, distiller’s sorghum oil, brown grease, and other fats, oils, and greases;
(b) The specified source feedstocks are used in fuel pathways for biodiesel; renewable diesel; alternative jet fuel; co-processed refinery products; biomethane supplied using book and claim accounting and claimed as a feedstock for CNG, LNG, L-CNG; or steam-methane reformation produced hydrogen;
(c) Under OAR 340-253-0450(9)(d), any feedstock can be designated as a specified source feedstock if requested by a supplier using site-specific carbon intensity data or if it is specified in a fuel pathway approval condition; and
(d) Chain-of-custody evidence must be used to demonstrate the proper characterization and accuracy of the quantity of the specified source feedstocks going into a fuel production facility or claimed as biomethane, subject to all of the following provisions:
(A) Chain-of-custody evidence must be provided to the verifier and to DEQ upon request;
(B) Joint applicants may assume responsibility for different portions of the chain-of-custody evidence;
(C) Fuel pathway applicants using specified source feedstocks must maintain either:
(i) Delivery records that show shipments of feedstock type and quantity directly from the point of origin to the fuel production facility; or
(ii) Information from material balance or energy balance systems that control and record the assignment of input characteristics to output quantities at relevant points along the feedstock supply chain between the point of origin and the fuel production facility; and
(e) In order to maintain the fuel pathway, the fuel production and any joint applicant must meet the following requirements:
(A) Maintain records of the type and quantity of feedstock obtained from each supplier, including feedstock transaction records, feedstock transfer documents pursuant to (f), weighbridge tickets, bills of lading or other documentation for all incoming and outgoing feedstocks;
(B) Maintain records used for material balance and energy balance calculations; and
(C) Ensure DEQ staff and verifier access to audit feedstock suppliers to demonstrate proper accounting of attributes and conformance with certified CI data.
(7) The carbon intensity value certified under OAR 340-253-0450, including any margin of safety requested by the fuel producer, is the maximum carbon intensity value that a fuel can be reported in the CFP. The actual operational carbon intensity of a fuel will be calculated from the most recent production data covering 24 months of the fuel production facility’s operation. Registered parties may not report fuel transactions under any certified carbon intensity unless the actual operational carbon intensity is equal to or less than the certified CI.
(8) Fuel producers labeling fuel sold in Oregon with a carbon intensity under the CFP and registered parties using those labeled carbon intensities to report in the Oregon Fuels Reporting System, must ensure that the fuel so labeled and reported will be found to have an actual operational lifecycle carbon intensity equal to or below its certified carbon intensity.
Statutory/Other Authority: ORS 468.020, 468A.266, 468A.268 & 468A.277
Statutes/Other Implemented: ORS 468.020 & ORS 468A.265 through 468A.277
History:
DEQ 17-2022, amend filed 09/23/2022, effective 01/01/2023
DEQ 7-2021, amend filed 03/26/2021, effective 03/26/2021
DEQ 14-2020, amend filed 05/07/2020, effective 05/07/2020
DEQ 199-2018, amend filed 11/16/2018, effective 01/01/2019
DEQ 27-2017, amend filed 11/17/2017, effective 11/17/2017
DEQ 13-2015, f. 12-10-15, cert. ef. 1-1-16
DEQ 3-2015, f. 1-8-15, cert. ef. 2-1-15
DEQ 8-2014, f. & cert. ef. 6-26-14
DEQ 15-2013(Temp), f. 12-20-13, cert. ef. 1-1-14 thru 6-30-14
DEQ 8-2012, f. & cert. ef. 12-11-12