OAR 340-253-1000
Credit and Deficit Basics
(1)
Carbon intensities.(a)
Except as provided in subsections (b),(c), or (d), when calculating carbon intensities, regulated parties, credit generators, and aggregators must use a carbon intensity approved by DEQ under OAR 340-253-0450 (Obtaining a Carbon Intensity).(b)
If a regulated party, credit generator, or aggregator has an approved provisional carbon intensity approved under OAR 340-253-0450 (Obtaining a Carbon Intensity), the regulated party, credit generator, or aggregator must use the DEQ-approved provisional carbon intensity.(c)
If a regulated party, credit generator, or aggregator has an approved temporary carbon intensity under OAR 340-253-0450 (Obtaining a Carbon Intensity), the regulated party, credit generator, or aggregator must use the temporary carbon intensity for the period which it has been approved, unless DEQ has subsequently approved a permanent carbon intensity for that fuel.(d)
If a registered party purchases a blended finished fuel and the seller does not provide carbon intensity information, then the registered party must:(A)
Use the applicable substitute fuel pathway code in Table 8 under OAR 340-253-8010 (Tables) or otherwise approved and posted by DEQ under OAR 340-253-0450 (Obtaining a Carbon Intensity)(11) if the fuel is exported, not used for transportation, or used in an exempt fuel use; and(B)
Report the volume using the applicable Table 8 fuel pathway code, or a fuel pathway code otherwise approved and posted by DEQ under OAR 340-253-0450 (Obtaining a Carbon Intensity)(11), for the fossil fuel and the applicable substitute fuel pathway code for the biofuel or biofuels if the finished fuel blend is not listed.(2)
Fuel quantities. Regulated parties, credit generators, and aggregators must express fuel quantities in the unit of fuel for each fuel.(3)
Compliance period. The annual compliance period is January 1 through December 31 of each year, except:(a)
The initial compliance period is January 1, 2016, through December 31, 2017; and(b)
The initial compliance period for large importers of finished fuels is January 1, 2016 through December 31, 2018.(4)
Metric tons of CO2 equivalent. Regulated parties, credit generators, and aggregators must express credits and deficits to the nearest whole metric ton of carbon dioxide equivalent.(5)
Deficit and credit generation.(a)
Credit generation. A clean fuel credit is generated when fuel is produced, imported, or dispensed for use in Oregon, as applicable, and the carbon intensity of the fuel approved for use under OAR 340-253-0400 (Carbon Intensities) through -0470 is less than the clean fuel standard for gasoline and gasoline substitutes in Table 1 under OAR 340-253-8010 (Tables), for diesel fuel and diesel substitutes in Table 2 under 340-253-8010 (Tables), or for alternative jet fuel in Table 3 under 340-253-8010 (Tables). Credits are generated when a valid and accurate quarterly report is submitted in the Oregon Fuels Reporting System.(b)
Deficit generation. A clean fuel deficit is generated when fuel is produced, imported, or dispensed for use in Oregon, as applicable, and the carbon intensity of the fuel approved for use under OAR 340-253-0400 (Carbon Intensities) through -0470 is more than the clean fuel standard for gasoline and gasoline substitutes in Table 1 under OAR 340-253-8010 (Tables) or for diesel fuel and diesel substitutes in Table 2 under 340-253-8010 (Tables). Deficits are generated when a valid and accurate quarterly report is submitted in the Oregon Fuels Reporting System.(c)
No credits may be generated or claimed for any transactions or activities occurring in a quarter for which the quarterly reporting deadline has passed, unless the credits are being generated for residential charging of electric vehicles or for claiming incremental credits by a utility or the incremental aggregator.(6)
Mandatory retirement of credits. When filing the annual report at the end of a compliance period, a registered party that possesses credits must retire a sufficient number of credits such that:(a)
Enough credits are retired to completely meet the registered party’s compliance obligation for that compliance period, or(b)
If the total number of the registered party’s credits is less than the total number of the regulated party’s deficits, the registered party must retire all of its credits.(7)
Credit Retirement Hierarchy. The Oregon Fuels Reporting System will use the following default hierarchy to retire credits for the purposes of meeting a compliance obligation, first retiring credits under subsection (a), next retiring credits under subsection (b), and last retiring credits under subsection (c):(a)
Credits acquired or generated in a previous compliance period prior to credits generated or acquired in the current compliance period;(b)
Credits with an earlier completed transfer “recorded date” before credits with a later completed transfer “recorded date;” and(c)
Credits generated in an earlier quarter before credits generated in a later quarter.
Source:
Rule 340-253-1000 — Credit and Deficit Basics, https://secure.sos.state.or.us/oard/view.action?ruleNumber=340-253-1000.