DEQ Clean Fuels Program Expansion Rulemaking

DEQ invites public input on proposed permanent rule amendments and new Oregon Administrative Rules.

The policy objective of the Clean Fuels Program Expansion 2022 Rulemaking is to expand the program’s carbon intensity reduction requirements beyond the currently adopted 10 percent reduction in average carbon intensity by 2025. The  new long-term targets will create certainty for investment in and deployment of lower-, zero-, and negative-carbon transportation fuels that are necessary to decarbonize  Oregon’s transportation sector.

There may be significant additions and revisions to the Oregon Clean Fuels Program intended to, but without proven evidence, reduce Oregon’s contribution to the global levels of greenhouse gas emissions and the impacts of those emissions in Oregon in concert with other greenhouse gas reduction policies and actions by local governments, other states, and the federal government.

Addition (in bold) to OAR 340-253-0000 (2) increases and extend emission standards. “The purpose of the Oregon Clean Fuels Program is to reduce the amount of lifecycle greenhouse gas emissions per unit of energy by a minimum of 10 percent below 2010 levels by 2025., 20 percent by 2030, and 37 percent by 2035. This reduction goal applies to the average of all transportation fuels used in Oregon, not to individual fuels. A fuel user does not violate the standard by possessing fuel that has higher carbon content than the clean fuel standard allows.”

There are equipment additions, revised definitions, and added renewable energy that should be exempt, “M-RETS Renewable Thermal” means the electronic tracking and trading system for North American biomethane and other renewable thermal attributes run by the M-RETS
organization. Also added is “Natural gas common carrier pipeline” that offers natural gas transportation services to any third party common carrier pipeline used for “book and claim” (added method) and must be part of a larger network directly or indirectly connected to Oregon.

There are a number of changes to the Oregon Fuels Reporting System and adds registration requirement for certain vehicles, and reporting for electricity dispensers and transporting of liquid fuels.

DEQ requests specific comment on the following:
• DEQ is proposing to establish average carbon intensity targets of 20% in 2030 and 37% in 2035. Should DEQ consider targets different than these and why?
• DEQ is proposing to designate the owner of the forklift to generate the credits for electric forklifts. Should DEQ consider a different entity and why?
• DEQ is proposing that hydrogen used to generate advance credits must meet a maximum carbon intensity of 117 gCO2e/MJ. This is a carbon intensity that is consistent with hydrogen produced from non-fossil fuels. Should DEQ consider a different threshold and why?
• DEQ is proposing to conduct a review of the Clean Fuels Program in 2029 to be submitted to the Environmental Quality Commission. The purpose of the review is to
provide an update of the program’s metrics and recommend whether additional changes should be made to carbon intensity targets for 2030 and beyond. Should DEQ consider a different year to conduct the review and why?

Anyone can submit comments about this rulemaking through email, at the public hearing, or by regular mail to be received by 4 p.m. on July 21, 2022.

Notice of Proposed Rulemaking including draft rules and summary.

DEQ public hearing via webinar.
Date: July 19, 2022
Start time: 9 a.m.
Webinar link:

DEQ intends to submit the proposed rule changes to the EQC on or after Aug. 20, 2022.

Date: 2022-06-30 11:08

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