Oregon Commission Approves Rules to Advance Clean Fuels Program

On Tuesday, the Oregon Environmental Quality Commission approved new rules that 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 commission voted 4-1 to approve the rules. “I believe in the goal of carbon reduction, and I also believe in the role of market transformation,” said Commissioner Melinda Eden. The rules go into effect February 1, 2015.

The approved “Clean Fuels Program Phase 2” 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.

For more information, see DEQ’s Clean Fuels Program webpage at
www.deq.state.or.us/aq/cleanFuel/index.htm.