Current through Register Vol. 63, No. 12, December 1, 2024
(1) Calculations of covered emissions,
compliance obligations, and distribution of compliance instruments will be
based on emissions data and information submitted in accordance with this rule
and in emissions data reports submitted by a person described in this rule and
required according to OAR chapter 340, division 215, which may be subject to
verification according to OAR chapter 340, division 272. For any person that
does not submit sufficient information in compliance with OAR chapter 340,
divisions 215 and 272, calculations will be informed by additional best data
available to DEQ. For any person that has not registered and reported according
to division 215, such calculations will be based on the best data available to
DEQ, following all reporting requirements and assumptions that would be
applicable had the person reported according to that division.
(2) A covered entity is subject to the
requirements of this division for its covered emissions described in this rule.
A person remains a covered entity until cessation is met according to OAR
340-273-0130.
(3) Applicability for
fuel suppliers and in-state fuel producers. A person is a covered fuel supplier
if the person is described in subsection (a) and has annual covered emissions
described in subsection (b) in any applicability determination calendar year
that equal or exceed the threshold for applicability listed in Table 1 in OAR
340-273-9000. All persons that are related entities must aggregate their
emissions together to determine applicability and each becomes a covered fuel
supplier if applicability is met. When applicability is met, each person is a
covered fuel supplier beginning with the calendar year a person becomes a
covered fuel supplier, as provided in Table 1 in OAR 340-273- 9000. Once a
person is a covered fuel supplier, the person remains a covered fuel supplier
until the person has met the cessation requirements according to OAR 340-
273-0130.
(a) The person is a fuel supplier or
in-state producer that imports, sells, or distributes fuel for use in Oregon,
and is one or more of the following:
(A) A
dealer, as that term is defined in ORS
319.010 that is subject to the
Oregon Motor Vehicle and Aircraft Fuel Dealer License Tax in OAR chapter 735,
division 170;
(B) A seller, as that
term is defined in ORS
319.520, that is subject to the
Oregon Use Fuel Tax in OAR chapter 735, division 176;
(C) A person that produces, imports, sells,
or distributes gasoline or distillate fuel oil for use in Oregon and that is
not subject to the Oregon Motor Vehicle and Aircraft Fuel Dealer License Tax or
the Oregon Use Fuel Tax in OAR chapter 735, divisions 170 and 176; or
(D) A person that either produces propane in
Oregon or imports propane for use in the state.
(b) Except as provided in paragraph (B),
covered emissions include emissions described in paragraph (A).
(A) Covered emissions include emissions of
anthropogenic greenhouse gases in metric tons of CO2e that would result from
the complete combustion or oxidation of the annual quantity of propane and
liquid fuels (including, for example and without limitation, gasoline and
petroleum products) imported, sold, or distributed for use in this
state.
(B) Covered emissions do not
include:
(i) Emissions that are from the
combustion of biomass-derived fuels;
(ii) Emissions that are from the combustion
of fuels used for aviation including, for example and without limitation,
aviation gasoline, kerosene-type jet fuel, and alternative jet fuel;
(iii) Emissions described in 40 CFR part 98
subpart W - Petroleum and Natural Gas Systems; and
(iv) Emissions from fuels that have been used
in a manner other than combustion or oxidization, and that does not result in
material emissions of CO2e, if documented in information provided to
DEQ.
(4) Applicability for local distribution
companies. A person is a covered fuel supplier if the person is described in
subsection (a) and has annual covered emissions described in subsection (b) in
2020 or any subsequent calendar year, unless the person has met the cessation
requirements according to OAR 340-273-0130.
(a) The person is a local distribution
company that either produces natural gas, compressed natural gas, or liquefied
natural gas in Oregon, or that imports, sells, or distributes natural gas,
compressed natural gas, or liquefied natural gas to end users in the
state.
(b) Except as provided in
paragraph (B), covered emissions include emissions described in paragraph (A).
(A) Covered emissions include emissions of
anthropogenic greenhouse gases in metric tons of CO2e that would result from
the complete combustion or oxidation of the annual quantity of natural gas
imported, sold, or distributed for use in this state.
(B) Covered emissions do not include:
(i) Emissions that are from the combustion of
biomass-derived fuels;
(ii)
Emissions described in 40 CFR part 98 subpart W - Petroleum and Natural Gas
Systems;
(iii) Emissions avoided
where the use of natural gas results in greenhouse gas emissions captured and
stored, if documented by information provided to DEQ under approved
protocols;
(iv) Emissions from
natural gas delivered to an air contamination source that is an electric power
generating plant with a total nominal electric generating capacity greater than
or equal to 25 megawatts; and
(v)
Emissions from the combustion or oxidation of natural gas at a covered EITE
source as described in section (5).
(5) Applicability for EITE sources. A person
is a covered EITE source if the person is described in subsection (a) and has
annual covered emissions described in subsection (b) in 2020 or any subsequent
calendar year that equal or exceed 15,000 MT CO2e.
(a) The person owns or operates a source
engaged in a sector described in OAR 340-273-9000 Table 7.
(b) Except as provided in paragraph (B),
covered emissions include emissions described in paragraph (A).
(A) Covered emissions include all emissions
of anthropogenic greenhouse gases in metric tons of CO2e, including without
limitation, emissions from all uses of natural gas and solid fuels, from energy
production, from industrial processes, and from any other processes.
(B) Covered emissions do not include:
(i) Emissions from the use of biomass-derived
fuels;
(ii) Emissions from the use
of liquid fuels or propane;
(iii)
Emissions from an air contamination source that is owned or operated by an
interstate natural gas pipeline and that is operating under authority of a
certificate of public convenience and necessity issued by the Federal Energy
Regulatory Commission;
(iv)
Emissions from an air contamination source that is an electric power generating
plant with a total nominal electric generating capacity greater than or equal
to 25 megawatts.
(v) Emissions
described in 40 CFR part 98 subpart HH - Municipal Solid Waste
Landfills;
(vi) Emissions described
in 40 CFR part 98 subpart TT - Industrial Waste Landfills; and
(vii) Emissions avoided where greenhouse gas
emissions are captured and stored, if documented by information provided to DEQ
under approved protocols;
(6) Applicability for direct natural gas
sources. A person is a covered DNG source if the person is described in
subsection (a) and has annual covered emissions described in subsection (b) in
2020 or any subsequent calendar year that equal or exceed 15,000 MT CO2e.
(a) The person owns or operates a stationary
source that:
(A) Is not in a source
classification described in OAR 340-273-9000 Table 7; and
(B) Uses natural gas distributed to the
source by an entity other than a local distribution
company.
(b) Except as
provided in paragraph (B), covered emissions include emissions described in
paragraph (A).
(A) Covered emissions include
all emissions of anthropogenic greenhouse gases in metric tons of CO2e,
including without limitation, emissions from all uses of natural gas and solid
fuels, from energy production, from industrial processes, and from any other
processes.
(B) Covered emissions do
not include:
(i) Emissions from the use of
biomass-derived fuels;
(ii)
Emissions from the use of liquid fuels or propane;
(iii) Emissions from an air contamination
source that is owned or operated by an interstate natural gas pipeline and that
is operating under authority of a certificate of public convenience and
necessity issued by the Federal Energy Regulatory Commission;
(iv) Emissions from an air contamination
source that is an electric power generating plant with a total nominal electric
generating capacity greater than or equal to 25 megawatts;
(v) Emissions described in 40 CFR part 98
subpart HH - Municipal Solid Waste Landfills;
(vi) Emissions described in 40 CFR part 98
subpart TT - Industrial Waste Landfills;
(vii) Emissions avoided where greenhouse gas
emissions are captured and stored, if documented by information provided to DEQ
under approved protocols; and
(viii) Emissions from natural gas, compressed
natural gas, or liquefied natural gas used on site that was delivered by a
local distribution company.
Statutory/Other Authority: ORS
468.020,
468A.025,
468A.040 &
468A.050
Statutes/Other Implemented: ORS
468.020,
468A.025,
468A.040,
468A.050,
468A.010,
468A.015,
468A.045 &
468.035
