Oregon Department of Environmental Quality  
Draft Rules   
Climate Protection Program 2024 Rulemaking  
 
Key to identifying changed text:  
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New/inserted text  
 
Department of Environmental Quality 
Oregon Administrative Rules Chapter 340   
OREGON CLIMATE PROTECTION PROGRAM  
340-271-0010  
Purpose and Scope  
(1) This division establishes rules and requirements for the Climate Protection Program for certain air 
contamination sources that emit greenhouse gases or that cause greenhouse gases to be emitted.  
(2) Climate change caused by anthropogenic greenhouse gas emissions has detrimental effects on the overall public welfare of the State of Oregon. Reducing greenhouse gas emissions and mitigating climate 
change will improve the overall public welfare of Oregon. In particular, reducing greenhouse gas emissions will improve the welfare of environmental justice communities.  
(a) Fuel combustion and industrial processes result in emissions of greenhouse gases, which are air contaminants that cause climate change;  
(b) Reducing greenhouse gas emissions may also reduce emissions of other air contaminants, which may 
improve air quality for Oregon communities; and 
(c) Environmental justice communities in Oregon are disproportionately burdened by air contamination, 
including through disproportionate risk of the impacts of climate change. 
(3) The purposes of the Climate Protection Program are to reduce greenhouse gas emissions from sources 
in Oregon, achieve co-benefits from reduced emissions of other air contaminants, and enhance public 
welfare for Oregon communities, particularly environm ental justice communities disproportionately 
burdened by the effects of climate change and air contamination. To support these purposes, this division: 
(a) Requires that covered entities reduce greenhouse gas emissions;  
(b) Supports reduction of emissions of other air contaminants that are not greenhouse gases;  
(c) Prioritizes reduction of greenhouse gases and other air contaminants in environmental justice 
communities;  
(d) Provides covered entities with compliance options to minimize disproportionate business and 
consumer economic impacts associated with meeting the Climate Protection Program requirements; and  
(e) Allows covered fuel suppliers to comply with the Climate Protection Program requirements in part 
through contributing community climate investment funds to support projects that reduce greenhouse gas emissions and prioritize benefits for environmental justice communities in Oregon. 
(4) DEQ administers this division in all areas of the State of Oregon and subject to the requirements in this division and OAR 340- 200-0010(3), LRAPA is designated by the EQC to implement OAR 340 -271-
0150(3) of this division within its area of jurisdiction.  
(5)(a) Whenever the DEQ Director has good cause to believe that any person is engaged or is about to engage in any acts or practices which constitute a violation of this division, the Director may authorize 
DEQ to institute actions or proceedings for legal  or equitable remedies to enforce compliance thereto or to 
restrain further violations.  
(b) The proceedings authorized by subsection (a) may be instituted without the necessity of prior DEQ notice, hearing and order.  
(c) The provisions of this section are in addition to and not in substitution of any other civil or criminal enforcement provisions available to DEQ. This includes, without limitation, the authority to impose civil 
penalties and issue orders according to O RS Chapter 468.090 to 468.140 and OAR chapter 340, divisions 
11 and 12.  
(6) If any dates under this division occur on a Saturday, Sunday, or a state holiday, the deadline is extended to the following business day.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040, 468A.050, 468A.135 & 468.100  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468A.135, 468.035, 
468A.010, 468A.015, 468A.045 & 468.100  
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0020  
Definitions  
The definitions in OAR 340- 200-0020, OAR 340 -215-0020, and this rule apply to this division. If the 
same term is defined in this rule and either or both OAR 340- 200-0020 and OAR 340- 215-0020, the 
definition in this rule applies to this division. If the sam e term is defined in OAR 340- 200-0020 and OAR 
340-215-0020, but not in this rule, then the definition in OAR 340- 215-0020 applies to this division.  
(1) “Air contamination source” has the meaning given the term in ORS 468A.005. Air contamination 
sources include, without limitation, stationary sources, fuel suppliers, in- state producers, and local 
distribution companies.  
(2) “Best available emissions reduction order” or “BAER order” means a DEQ order establishing required actions the owner or operator of a covered stationary source must take to limit covered emissions from the 
covered stationary source.  
(3) “Biomass- derived fuels” has the meaning given the term in OAR 340- 215-0020. Biomass -derived 
fuels include, without limitation, biomethane, biodiesel, renewable diesel, renewable propane, woody biomass, and ethanol.  
(4) “Cap” means the total number of compliance instruments generated by DEQ for each calendar year.  (5) “Climate Protection Program permit addendum” or “CPP permit addendum” means written 
authorization that incorporates the requirements of this division into a permit by amending an Air Contaminant Discharge Permit or a Title V Operating Permit.  
(6) “Climate Protection Program permit” or “CPP permit” means a permit issued to a covered fuel supplier according to this division.  
(7) “Community climate investment credit” or “CCI credit” or “credit” means an instrument issued by DEQ to track a covered fuel supplier’s payment of community climate investment funds, and which may be used in lieu of a compliance instrument, as further p rovided and limited in this division.  
(8) “Community climate investments,” “community climate investment funds” or “CCI funds” means money paid by a covered fuel supplier to a community climate investment entity to support implementation of community climate investment projects and any interes t that accrues on the money 
while it is held by a CCI entity or subcontractor.  
(9) “Community climate investment entity” or “CCI entity” means a nonprofit organization that has been 
approved by DEQ as a CCI entity and that has entered into a written agreement with DEQ consistent with 
OAR 340 -271-0920 to implement projects supported b y community climate investment funds.  
(10) “Compliance instrument” means an instrument issued by DEQ that authorizes the emission of one 
MT CO2e of greenhouse gases. Compliance instruments may not be divided into fractions.  
(11) “Compliance obligation” means the total quantity of covered emissions from a covered fuel supplier 
rounded to the nearest metric ton of CO2e.  
(12) “Compliance period” means a period of multiple consecutive calendar years, as described in OAR 
340-271-0440.  
(13) “Covered emissions” means the greenhouse gas emissions described in any of subsections OAR 340 -
271-0110(3)(b), (4)(b) and (5)(b), for which covered entities may be subject to the requirements of this 
division.  
(14) “Covered entity” means an air contamination source subject to the requirements of this division. A covered entity may be either a covered fuel supplier, a covered stationary source, or both.  
(15) “Covered fuel supplier” means an air contamination source that is either:  
(a) A fuel supplier or in -state producer as described in OAR 340- 271-0110(3); or  
(b) A local distribution company as described in OAR 340- 271-0110(4).  
(16) “Covered stationary source” means an air contamination source described in OAR 340- 271-0110(5). 
(17) “Designated representative” means the person responsible for certifying, signing, and submitting any 
registration, report, or form required to be submitted according to this division, on behalf of a covered 
entity. For the owner or operator of a covered stationary source with an Oregon Title V  Operating Permit, 
the designated representative is the responsible official and certification must be consistent with OAR 
340-218-0040(5).  
(18) “Environmental justice communities” means communities of color, communities experiencing lower incomes, tribal communities, rural communities, coastal communities, communities with limited infrastructure and other communities traditionally underrepresented in public processes and adversely 
harmed by environmental and health hazards, including seniors, youth and persons with disabilities.  
(19) “Existing source” means a source that is operating under the authority of either a current Air Contaminant Discharge Permit or Title V Operating Permit or, when the term of an issued permit has expired, under the authority of OAR 340- 216-0082(1) or OA R 340- 218-0120(2) and 340- 218-0130(2).  
(20) “New source” means a source that is not operating under the authority of either a current Air Contaminant Discharge Permit or Title V Operating Permit or, when the term of an issued permit has expired, under the authority of OAR 340- 216-0082(1) or OAR  340- 218-0120(2) and 340- 218-0130(2).  
(21) “Nominal electric generating capacity” has the meaning given in ORS 469.300. 
(22) “Shut down” means that all operations of a covered entity are permanently shut down, including but 
not limited to decommissioning and cancelling air permits. Permanent shutdown may include continued operations of space heaters and water heaters as nec essary to support decommissioning activities.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0030  
Acronyms  
(1) “BAER” means best available emissions reduction.  
(2) “CCI” means community climate investment.  
(3) “CFR” means Code of Federal Regulations.  
(4) “CPI- U West” means the US Bureau of Labor and Statistics West Region Consumer Price Index for 
All Urban Consumers for all Items.  
(5) “CPP” means Oregon Climate Protection Program established in this division.  
(6) “DEQ” means Oregon Department of Environmental Quality.  
(7) “EQC” means Environmental Quality Commission. 
(8) “EPA” means US Environmental Protection Agency. 
(9) “IRS” means US Internal Revenue Service.  
(10) “LRAPA” means Lane Regional Air Pollution Agency.  
(11) “Metric tons of CO2e” or “MT CO2e” means metric tons of carbon dioxide equivalent.  
(12) “US” means United States.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 
468A.015 & 468A.045  History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
 
 
340-271-0090  
Overview of Program Provisions for Covered Entities and CCI Entities  
(1) OAR 340 -271-0100 describes general requirements for covered entities.  
(2) OAR 340 -271-0110 describes which air contamination sources are covered entities subject to the 
requirements of the CPP.  
(3) OAR 340 -271-0120, OAR 340- 271-0130, and 340 -271-0150 describe covered entity requirements 
including notifying DEQ of changes in ownership, operational control, and related entities; cessation of 
applicability; and requirements to obtain CPP permits and CPP permit addendums, respectively.  
(4) OAR 340 -271-0310 through OAR 340- 271-0390 describe the provisions that apply to covered 
stationary sources.  
(5) OAR 340 -271-0410 through OAR 340- 271-0890 and OAR 340- 271-9000 describe the provisions that 
apply to covered fuel suppliers.  
(6) OAR 340 -271-0900 through OAR 340- 271-0990 describe the provisions for how DEQ will approve 
CCI entities and how CCI entities will implement eligible projects supported by CCI funds.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 
468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0100  
Oregon Climate Protection Program Requirements  
(1) A person who owns or operates a covered entity must comply with the rules in this division. Compliance with this division does not relieve a person who owns or operates a covered entity of the 
obligation to comply with any other provisions of OAR chapt er 340, as applicable.  
(2) CPP permit or CPP permit addendum. A person who owns or operates a covered entity identified in 
OAR 340 -271-0110 must apply for and hold a CPP permit or CPP permit addendum according to OAR 
340-271-0150 that authorizes the person’s covered emissions an d subjects the person to the requirements 
of this division.  
(3) Reporting. A person who owns or operates a covered entity must submit reports and attestations required in this division, as applicable.  
(4) Recordkeeping. A person who owns or operates a covered entity must develop and retain all records 
required in this division, as applicable.  (5) A person who owns or operates a covered entity must use forms and reporting tools approved and 
issued by DEQ for all certifications, attestations and submissions. All submissions must be made electronically unless otherwise requested or approved by DEQ . 
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 
468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0110  
Covered Entity and Covered Emissions Applicability  
(1) Calculations of covered emissions, compliance obligations and distribution of compliance instruments 
will be based on emissions data and information 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 app licable 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- 271-0130.  
(3) Applicability for fuel suppliers and in -state 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- 271-9000. All persons that are related entities must aggregate their emissions 
together to determine applicability and each becomes a covered fuel supplier if applicability is me t. 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 -271-9000. Once a person is a 
covered fuel supplier, the person remains a cover ed fuel supplier until the person has met the cessation 
requirements according to OAR 340- 271-0130.  
(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; and  
(iii) Emissions described in 40 CFR part 98 subpart W – Petroleum and Natural Gas Systems.  
(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 2018 or any 
subsequent calendar year, unless the person has met the cessation requirements according to OAR 340 -
271-0130.  
(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 i n 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 sufficiently documented by information provided to DEQ; and  
(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.  
(5) Applicability for stationary sources. A person is a covered stationary source if the person is described 
in subsection (a), unless the person has met the cessation requirements according to OAR 340- 271-0130.  
(a) The person is one or more of the following:  
(A) The person owns or operates an existing source that has actual covered emissions described in 
subsection (b) that equal or exceed 25,000 MT CO2e in 2018 or in any subsequent calendar year;  
(B) The person owns or operates a new source, or proposes to own or operate a new source, that has a 
potential to emit covered emissions described in subsection (b) that will equal or exceed 25,000 MT 
CO2e per calendar year; or  (C) The person owns or operates an existing source that is not a covered stationary source under (A), 
proposes to make a modification under OAR 340 -216-0040(3), OAR 340- 218-0170, OAR 340- 218-0180, 
or OAR 340- 218-0190, or a Type 2, 3 or 4 change under OAR 340- 210-0225 to their source and:  
(i) The modification would increase the source’s potential to emit covered emissions described in subsection (b) by 10,000 MT CO2e per calendar year or more, and;  
(ii) After the modification, the source’s potential to emit covered emissions described in subsection (b) would equal or exceed 25,000 MT CO2e per calendar year.  
(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 
are from either or both processes or the combustion of solid or gaseous fuels, including emissions from 
combustion for both energy production and processe s. 
(B) Covered emissions do not include:  
(i) Emissions that are from the combustion of biomass -derived fuels;  
(ii) Biogenic CO2 emissions from solid fuels;  
(iii) Emissions that are from the combustion of liquid fuels or propane;  
(iv) Emissions from natural gas, compressed natural gas, or liquefied natural gas used on -site that was 
delivered by a local distribution company;  
(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 from an air contamination source that is owned or operated by an interstate natural gas pipeline that is operating under authority of a certificate of public convenience and necessity issued by the Federal Energy Regulatory Commission; and  
(viii) 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.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 
468A.015 & 468A.045  
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 18 -2022, temporary amend filed 11/18/2022, effective 11/18/2022 through 05/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0120  
Changes in Covered Entity Ownership and Changes to Related Entities  
(1) Changes in ownership or operational control.  
(a) If a covered entity undergoes a change in ownership or operational control, the new person that owns or operates the covered entity must notify DEQ in writing within 30 days of the ownership or operational control change. The person must submit a complete and accurate notification, including providing the 
following information:  
(A) The name of the previous owner or operator;  
(B) The name of the new owner or operator;  
(C) The date of ownership or operator change;  
(D) Name of the designated representative;  
(E) If the covered entity is a covered fuel supplier that is not a local distribution company information about each person that was a related entity prior to the change in ownership or operational control and that 
was required to report emissions according to  OAR chapter 340, division 215, including legal name, full 
mailing address, and whether each is a covered fuel supplier and holds a  CPP permit; and  
(F) If the covered entity is a covered fuel supplier that is not a local distribution company, information 
about each person that is a related entity after the change in ownership or operational control and that is 
required to report emissions according to OAR chapter 340, division 215, including legal name, full 
mailing address, and whether each is a covered fuel supplier and holds a CPP permit.  
(b) The covered entity continues to be a covered entity following a change in ownership or operational control, until it meets the cessation requirements in OAR 340- 271-0130. Any other covered entity that 
was a related entity also continues to be a covered  entity following the change in ownership or operational 
control, until it meets the cessation according to OAR 340- 271-0130.  
(c) Following a change in ownership or operational control, a covered fuel supplier that holds a 
compliance instrument or CCI credit according to OAR 340- 271-0430 or OAR 340 -271-0830 continues 
to hold the compliance instrument or CCI credit according to ea ch rule, as applicable.  
(2) Changes to related entities of covered fuel suppliers. 
(a) If a person subject to any regulations in OAR chapter 340, division 215, becomes a new related entity 
to a covered fuel supplier that is not a local distribution company due to a change in ownership or operational control, the designated representative  of the covered fuel supplier must notify DEQ in writing, 
on a form approved by DEQ, within 30 days of the ownership or operational control change. The 
designated representative must submit a complete and accurate notification, including providing the 
following information:  
(A) Information about the new related entity, including legal name, full mailing address, and whether the 
person is a covered fuel supplier and holds a CPP permit;  
(B) The name of the previous owner or operator of the new related entity;  
(C) The name of the new owner or operator of the new related entity;  
(D) The date of ownership or operator change for the new related entity; and  
(E) Information about all other related entities subject to any regulations in OAR chapter 340, including 
legal names, full mailing addresses, and whether each is a covered fuel supplier and holds a CPP permit.  
(b) If the person that is the new related entity to a covered fuel supplier identified in paragraph (a)(A) is 
not already a covered fuel supplier, the person:  (A) Becomes a covered fuel supplier beginning with the date of ownership or operator change;  
(B) Must apply to DEQ for a CPP permit according to OAR 340- 271-0150(1)(a)(B); and  
(C) If the person is a covered fuel supplier, the person will have compliance obligations beginning with 
covered emissions from the calendar year in which the ownership or operator change occurred.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 
468A.015 & 468A.045  
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0130  
Cessation of Covered Entity Applicability  
(1) Cessation for covered fuel suppliers.  
(a) A person that is a covered fuel supplier as described in OAR 340 -271-0110 remains a covered fuel 
supplier until the person receives written notification from DEQ after either or both:  
(A) The person’s annual covered emissions are 0 (zero) MT CO2e for six consecutive calendar years. If 
the person is not a local distribution company, the covered emissions of the person’s related entities must 
also be 0 (zero) MT CO2e for the same six consecutive calendar years;  or 
(B) The person was designated a covered fuel supplier in OAR 340- 271-0110(3), the sum of its annual 
covered emissions and the annual covered emissions of its related entities are less than 25,000 MT CO2e for six consecutive calendar years and the person ap plies to DEQ according to subsection (c).  
(b) After a covered fuel supplier identified according to paragraph (a)(A) demonstrates compliance with 
compliance obligations for the years up to and including the years described in paragraph (a)(A), DEQ 
will notify the designated representative of the c overed fuel supplier in writing that cessation is met.  
(c) In order for cessation according to paragraph (a)(B) to take effect, a covered fuel supplier must apply to cease being a covered fuel supplier by submitting the following information to DEQ on a form 
approved by DEQ:  
(A) Information about the covered fuel supplier, including:  
(i) Name and full mailing address, and website; and  
(ii) Designated representative’s contact information including name, title or position, phone number, and 
email address;  
(B) If the person is not a local distribution company information about each related entity required to report emissions according to OAR chapter 340, division 215, for each of the six consecutive calendar 
years, including legal name, full mailing address, and whether each is a covered fuel supplier and holds a CPP permit; 
(C) Information about remaining requirements that must be met according to this division at the time the 
application is submitted to DEQ; and  
(D) The following attestation, signed by the designated representative of the covered fuel supplier:  I certify under penalty of perjury under the laws of the State of Oregon that to the best of my knowledge 
and belief, the information provided in this form is true, accurate, and complete. [Covered fuel supplier] meets the eligibility for cessation as a co vered fuel supplier according to Oregon Administrative Rules 
chapter 340, division 271. I understand that ceasing to be a covered fuel supplier means that [covered fuel supplier] will also cease to hold any compliance instruments and CCI credits.  
(d) After the covered fuel supplier applying for cessation according to paragraph (a)(B) and subsection (c) 
demonstrates compliance with compliance obligations for the years up to and including the years 
described in paragraph (a)(B), DEQ will notify the designated representative of the covered fuel supplier in writing that the application for cessation is approved and that cessation is met.  
(e) A person that ceases to be a covered fuel supplier according to this section must comply with all remaining applicable recordkeeping requirements of this division from the last date on which the person 
was a covered fuel supplier.  
(f) When a person ceases to be a covered fuel supplier:  
(A) The cessation does not change the compliance obligation for any year for which the person has 
already demonstrated compliance;  
(B) Any remaining compliance instruments held by the person will be retired, held in reserve, or 
distributed by DEQ according to OAR 340 -271-0430(3); and  
(C) Any remaining community climate investment credits held by the person will be canceled according 
to OAR 340- 271-0830(1)(c).  
(2) Cessation for covered stationary sources.  
(a) A person that is a covered stationary source as described in OAR 340 -271-0110 remains a covered 
stationary source until either of the following occur:  
(A) The person’s operations are changed such that all greenhouse gas emitting processes and operations 
cease to operate or are shut down. In order for cessation to take effect, the person must submit a written 
notification to DEQ certifying the cessation of all greenhouse gas emitting processes and operations; or  
(B) The person’s covered emissions are less than 25,000 MT CO2e for five consecutive calendar years 
and the person has fully complied with any applicable BAER order and any related reporting 
requirements and has submitted any remaining required BAER assess ment and five -year BAER report. In 
order for cessation to take effect, DEQ will notify the covered stationary source that cessation is met.  
(b) This section does not apply to seasonal operational cessations or other temporary cessation of operations.  
(c) A person that ceases to be a covered stationary source according to this section must comply with all remaining applicable recordkeeping requirements of this division from the last date on which the person was a covered stationary source.  
(3) Any person that ceases to be a covered entity according to this rule must resume meeting the requirements of this division for any future year in which applicability is met.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 468A.015 & 468A.045  History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0150  
Covered Entity Permit Requirements  
(1) A person described in either or both OAR 340 -271-0110(3) or (4) must apply for a CPP permit as 
provided in this section.  
(a) The person must apply for a CPP permit according to subsections (b) and (c) by the following 
deadlines:  
(A) If DEQ notifies the person in writing that the person is a covered fuel supplier, then the person must 
apply to DEQ for a CPP permit within 30 days of the notification or by another date DEQ specifies in the notification that is at least 30 days after the date of the notification;  
(B) If DEQ does not provide a notification according to paragraph (A), then the person must apply to DEQ for a CPP permit by April 15 of the year after the calendar year that the person becomes a covered fuel supplier; or  
(C) If there was a change in ownership or operational control according to OAR 340- 271-0120(2), then 
the person must apply to DEQ for a CPP permit within 45 days of the change in ownership or operational control.  
(b) A person that submits a CPP permit application to DEQ must submit a complete and accurate application. The application for a CPP permit must be submitted to DEQ using a form approved by DEQ 
and include:  
(A) Identifying information about the covered fuel supplier including name, full mailing address, and website, and designated representative’s contact information including name, title or position, phone number, and email address;  
(B) If the person is a covered fuel supplier that is not a local distribution company, information about each related entity required to report emissions according to OAR chapter 340, division 215, including legal name, full mailing address, and whether ea ch is a covered fuel supplier and holds a CPP permit; and  
(C) The following attestation, signed by the designated representative of the person considered a covered fuel supplier;  
I certify under penalty of perjury under the laws of the State of Oregon that to the best of my knowledge and belief, the information provided in this form is true, accurate, and complete. [Covered entity] meets the Climate Protection Program applicability  requirements described in OAR 340- 271-0110 and requests 
a permit with the understanding that [covered entity] must comply with such permit as provided in Oregon Administrative Rules chapter 340, division 271. 
(c) DEQ may issue a CPP permit to a covered fuel supplier that submits a complete and accurate 
application. The permit may contain all applicable provisions of this division and such other conditions as 
DEQ determines are necessary to implement, monitor an d ensure compliance with this division.  
(2) New and modified stationary sources  (a) The owner or operator of a new source that is a covered stationary source may not emit any covered 
emissions prior to being issued a BAER order and a permit as described in subsection (3)(c).  
(b) The owner or operator of an existing source that is proposing a modification and is required to complete a BAER assessment under OAR 340 -271-0310(1)(c) may not construct the modification or emit 
any covered emissions from the modification prior to being issued a BAER order and approved permit 
modification as described in subsection (3)(d).  
(3)(a) The owner or operator of an existing covered stationary source required to apply for a CPP permit 
addendum according to OAR 340- 271-0330(1) must submit a complete and accurate application to DEQ 
or LRAPA, as applicable, that complies with and includes information identified in this section. The application must include the following:  
(A) Identifying information about the covered stationary source, including name and the name of the 
person that owns or operates the covered stationary source, full mailing address, the physical address of 
the covered stationary source, and a description of the nature of business being operated, the name, phone number and email address of the designated representative who is responsible for compliance with the permit, the permit number for an existing source, and the SIC or NAICS code of the covered stationary 
source;  
(B) The name of a person authorized to receive requests from DEQ for additional data and information;  
(C) The date DEQ notified the owner or operator of the covered stationary source of the BAER order 
established according to OAR 340- 271-0320;  
(D) A BAER implementation plan that includes the following:  
(i) Identification of the actions that the owner or operator of the covered stationary source will take to 
comply with the BAER order; and  
(ii) The schedule for implementing the requirements in the BAER order, consistent with any deadlines 
provided by DEQ in the BAER order, if applicable, and including an estimate of when all requirements 
from the BAER order will be completed;  
(E) Any other information requested by DEQ; and  
(F) The following attestation, signed by the designated representative of the covered stationary source;  
I certify under penalty of perjury under the laws of the State of Oregon that to the best of my knowledge 
and belief, the information provided in this form is true, accurate, and complete. [Covered entity] meets 
the Climate Protection Program applicability  requirements described in OAR 340- 271-0110 and requests 
a permit with the understanding that [covered entity] must comply with such permit as provided in 
Oregon Administrative Rules chapter 340, division 271. 
(b) DEQ or LRAPA, as applicable, may issue a CPP permit addendum to the owner or operator of a 
covered stationary source that submits a complete and accurate permit modification application under subsection (a), consistent with the requirements of OAR chap ter 340, divisions 216 and 218, as 
applicable. The CPP permit addendum will be issued as a Category II permit action according to OAR chapter 340, division 209. A CPP permit addendum will amend the covered stationary source’s Air Contaminant Discharge Perm it or Title V Operating Permit. The CPP permit addendum will contain all 
applicable provisions of this division and such other conditions as DEQ or LRAPA, as applicable, 
determines are necessary to implement, monitor and ensure compliance with the permit and this division.  (c) If DEQ or LRAPA approves an application for an Air Contaminant Discharge Permit or Title V 
Operating Permit submitted by the owner or operator of a new source, then DEQ or LRAPA, as applicable, will incorporate the CPP conditions into the new Air Conta minant Discharge Permit or Title V 
Operating Permit and will not issue a separate CPP permit addendum. Such CPP conditions will include all applicable provisions of this division and such other conditions as DEQ or LRAPA, as applicable, determines are necessary to implement, monitor and ensure compliance with the permit and this division.  
(d) If DEQ or LRAPA approves an application for a modification of an Air Contaminant Discharge Permit or Title V Operating Permit submitted by the owner or operator of an existing source that is required to undertake a BAER assessment described in OAR 340 -271-0310(1)(c), then DEQ or LRAPA, as 
applicable, will incorporate the CPP conditions into the modified Air Contaminant Discharge Permit or Title V Operating Permit and will not issue a separate CPP permit addendum. Such CPP conditions will 
include all app licable provisions of this division and such other conditions as DEQ or LRAPA, as 
applicable, determines are necessary to implement, monitor and ensure compliance with the permit and 
this division.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.135  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.135, 468.035, 468A.010, 
468A.015 & 468A.045  
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0310  
Best Available Emissions Reduction Assessments for Covered Stationary Sources  
(1) Requirement to conduct a BAER assessment.  
(a) When notified in writing by DEQ, the owner or operator of a covered stationary source described in OAR 340 -271-0110(5)(a)(A) must submit a complete and accurate BAER assessment according to this 
rule. The owner or operator of the covered stationary source must submit a complete BAER assessment to 
DEQ not later than nine months following the date of DEQ’s notice, unless DEQ has identified a later deadline in its notice or DEQ approves an extension according to section (6).  
(b) The owner or operator of a new source described in OAR 340- 271-0110(5)(a)(B) must submit a 
complete and accurate BAER assessment completed according to this rule with its permit application submitted according to OAR chapter 340, division 216, or its notice of construction application submitted 
according to OAR chapter 340, division 210.  
(c) Modifications.  
(A) A source that is a covered stationary source described in OAR 340 -271-0110(5)(a)(C) must complete 
a BAER assessment if notified in writing by DEQ. DEQ will require a BAER assessment at the time of 
the modification only if DEQ determines that the modification represents a significant change to the 
equipment or processes that emit covered emissions at the source.  
(B) If the modification described in OAR 340- 271-0110(5)(a)(C) is a notice of construction for a Type 2 
change required under OAR 340- 210-0230, DEQ will notify the source not later than 60 days after 
submittal of the notice of construction if a BAER assess ment is required. Upon receipt of that notification, 
the owner or operator of the source must submit a complete and accurate BAER assessment completed 
according to this rule and an application for a permit modification submitted according to OAR chapter 340, division 216 or 218, as applicable. Notwithstanding OAR 340- 210-0225(2) and (3), such permit 
modification application is a Type 3 change as described in OAR chapter 340, division 210.  
(2) BAER assessment requirements. BAER assessments submitted to DEQ must include the following:  
(a) A description of the covered stationary source’s production processes and a flow chart of each process;  
(b) Identification of all fuels, processes, equipment, and operations that contribute to the covered 
stationary source’s covered emissions, including:  
(A) Estimates of annual average covered emissions identified in OAR 340- 271-0110(5)(b). For existing 
covered stationary sources, estimates must be of current annual average covered emissions. For new sources and existing sources proposing a modification, e stimates must be of annual potential to emit 
covered emissions. Emissions must be identified in MT CO2e, following methodologies identified in OAR chapter 340, division 215. This must also include and distinguish quantities and covered emissions of each fuel used to control air contaminants that are not greenhouse gases; and  
(B) Estimates of current and anticipated type and annual quantity of all fuels used or proposed to be used by the covered stationary source;  
(c) Identification and description of all available fuels, processes, equipment, technology, systems, 
actions, and other strategies, methods and techniques for reducing covered emissions described in OAR 
340-271-0110(5)(b). Strategies considered must include but are not limited to the strategies used by other 
sources in this state or in other jurisdictions that produce goods of comparable type, quantity, and quality; and 
(d) An assessment of each of the following for each strategy identified in subsection (c):  
(A) An estimate of annual average covered emissions reductions achieved if the strategy were implemented compared to the emissions estimated in paragraph (b)(A);  
(B) Environmental and health impacts, both positive and negative, if the strategy were implemented, 
including any impacts on air contaminants that are not greenhouse gases and impacts to nearby 
communities;  
(C) Energy impacts if the strategy were implemented, including whether and how the strategy would 
change energy consumption at the covered stationary source, including impacts related to any fuel use 
that results in anthropogenic greenhouse gas emissions. Any energy- related costs must be included in the 
economic impacts assessment in paragraph (D), not the energy impacts assessment;  
(D) Economic impacts if the strategy were implemented, including operating costs and the costs of changing existing processes or equipment or adding to existing processes and equipment. Any energy-related costs must be included in the economic impacts asse ssment, not the energy impacts assessment in 
paragraph (C). The economic impacts assessment must include both costs and cost savings (benefits);  
(E) An estimate of the time needed to fully implement the strategy at the covered stationary source; and  
(F) A list of the information, resources, and documents used to support development of the BAER assessment, including, if available, links to webpages that provide public access to supporting documents.  
(3) Upon receipt of a BAER assessment described in section (2), DEQ will review the submittal and if DEQ determines that any additional information, corrections, or updates are required then DEQ may provide the owner or operator of the covered stationary s ource with a written request to provide such information by a certain date or DEQ may issue the BAER order based on the information it has 
available. If DEQ requests that the owner or operator of the covered stationary source revise its BAER assessment according to this section, the owner or operator  must provide such information no later than 
the deadline provided by DEQ. 
(4) Five year BAER reports.  
(a) Every five years following the date that DEQ issued a BAER order, the owner or operator of a covered 
stationary source must submit to DEQ a five year BAER report that includes an update of the information described in subsections (2)(a) through (c).  
(b) If one or more new strategies are identified in a five year BAER report required in subsection (a) that have not previously been evaluated in a BAER assessment, DEQ may notify the owner or operator of the covered stationary source and require that it conduct a complete BAER assessment according to section 
(2) and submit it to DEQ. Such complete BAER assessment must also include:  
(A) Evaluation of any new strategies identified and any previously identified strategies using any new information available at the time the assessment is being conducted; and  
(B) Current status and analysis of the implementation of requirements in any prior BAER order(s).  
(5) When notified in writing by DEQ, the owner or operator of a covered stationary source identified in 
section (1) may be required to conduct and submit an updated complete BAER assessment conducted according to this rule, in accordance with the following:  
(a) DEQ may not require the owner or operator of a covered stationary source to complete an updated BAER assessment within five years of the date of submission of the most recently completed BAER 
assessment unless the source is proposing a modification and  is required to complete a new BAER 
assessment under OAR 340 -271-0310(1)(c). However, if DEQ determines the owner or operator of a 
covered stationary source submitted information that it knew or should have known was false, inaccurate, or incomplete to DEQ , then DEQ may require the owner or operator of the covered stationary source to 
complete an updated BAER assessment within five years of the date of submission of the most recently 
completed BAER assessment;  
(b) The updated BAER assessment must include assessment of new strategies and previously identified 
strategies and any new information available at the time the assessment is being conducted;  
(c) The owner or operator of the covered stationary source must include current status and analysis of the 
implementation of requirements in any prior BAER order; and  
(d) The owner or operator of the covered stationary source must submit the updated BAER assessment to 
DEQ not later than nine months following the date of DEQ’s notice, unless DEQ has identified a later deadline in the notice or DEQ approves an extension a ccording to section (6).  
(6) The owner or operator of a covered stationary source required to conduct a BAER assessment as described in sections (1) or (5) may request an extension of time to complete the BAER assessment by providing DEQ with a written request no fewer than 30 days prior to the submittal deadline. DEQ may 
grant an extension based on the following criteria:  
(a) The owner or operator of the covered stationary source has demonstrated progress in completing the 
submittal; and  (b) A delay is necessary, for good cause shown by the owner or operator of the covered stationary source, 
related to obtaining more accurate or new data, performing additional analyses, or addressing changes in operations or other key parameters, any of which are likely to have a substantive impact on the outcomes 
of the BAER assessment.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 
468A.015 & 468A.045  
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0320  
Best Available Emissions Reduction Order  
(1) DEQ may issue a BAER order for each owner or operator of a covered stationary source that must 
submit a BAER assessment as provided in OAR 340- 271-0310. A BAER order will establish the actions 
that the owner or operator of a covered stationary source m ust take to reduce covered emissions and the 
timeline on which the actions must be taken.  
(2) In establishing the requirements in a BAER order for a covered stationary source, DEQ may consider 
any information it deems relevant, and must consider the following:  
(a) Information submitted in a BAER assessment;  
(b) The fuels, processes, equipment, technology, systems, actions, and other strategies, methods and 
techniques that maximize covered emissions reductions;  
(c) The fuels, processes, equipment, technology, systems, actions, and other strategies, methods and 
techniques for reducing covered emissions used by sources in this state or in other jurisdictions that produce goods of comparable type, quantity, and qual ity; 
(d) A reasonable schedule and amount of time necessary to implement a strategy under consideration by DEQ to reduce covered emissions;  
(e) Environmental, public health, and energy impacts of a strategy under consideration by DEQ to reduce 
covered emissions, including but not limited to air quality impacts for nearby communities and impacts 
related to switching to cleaner energy resources, zero-emissions energy resources, or renewable fuels;  
(f) Economic impacts of a strategy under consideration by DEQ to reduce covered emissions including, 
but not limited to, costs so great that a new source could not be built or an existing source could not be 
operated, and cost -effectiveness of different st rategies that would achieve similar covered emissions 
reductions;  
(g) Processes and operations currently in use by and at the covered stationary source and the remaining useful life of the covered stationary source;  
(h) Whether a strategy under consideration by DEQ to reduce covered emissions is achievable, technically feasible, commercially available, and cost -effective;  
(i) Whether a strategy under consideration by DEQ to reduce covered emissions has an impact on the type 
or quality of good(s) produced by and at the covered stationary source, if applicable; and  (j) Input from the public and community organizations from nearby the covered stationary source. Upon 
receipt of a BAER assessment, DEQ will provide public notice with a copy of the BAER assessment and a minimum of 30 days to submit written comments. DEQ a lso will provide public notice with a copy of 
DEQ’s draft BAER order and a minimum of 30 days to submit written comments. 
(3) For the owner or operator of a covered stationary source required to register and report according to 
OAR chapter 340, division 215, DEQ will consider emissions data reports to assess whether covered 
emissions reductions are being achieved when establi shing the requirements in a BAER order or for 
determining when to notify the owner or operator of a covered stationary source to conduct and submit an 
updated complete BAER assessment as described in OAR 340 -271-0310(5).  
(4) DEQ may verify information submitted in a BAER assessment.  
(5) DEQ may consult with industry experts and third- party organizations before issuing a BAER order.  
(6) DEQ will notify the owner or operator of a covered stationary source of a BAER order in writing. A BAER order is effective 30 days from the date of the notification unless, within that time, DEQ receives a 
written request for a hearing from the owner o r operator of the covered stationary source according to 
section (7).  
(7) The owner or operator of a covered stationary source may file with DEQ a written request for a contested case hearing to challenge a BAER order issued according to section (6). The request must be 
filed in writing within 30 days of the date that DEQ is sued the BAER order and must state the grounds for 
the request. The hearing will be conducted as a contested case hearing in accordance with ORS 183.413 
through 183.470 and OAR chapter 340, division 11.  
(8) DEQ will provide a public status update if DEQ has not yet issued a BAER order after 18 months of the date on which DEQ notified the owner or operator of a covered stationary source that it must conduct 
a BAER assessment.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 
468A.045  
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0330  
Compliance with a BAER Order  
(1) The owner or operator of a covered stationary source for which DEQ has issued a BAER order 
according to OAR 340 -271-0320 must:  
(a) Comply with the requirements in the BAER order; and  
(b) For an existing source that is required to complete a BAER assessment under OAR 340- 271-
0310(1)(a), submit to DEQ or LRAPA, as applicable, a complete permit modification application for a 
CPP permit addendum according to OAR 340 -271-0150(3) not later t han 90 days after the date that the 
BAER order is final and effective, or a later date specified in the BAER order.  
(2) Reporting requirements.  (a) The owner or operator of a covered stationary source that has been issued a CPP permit addendum or 
operating permit that includes provisions related to a BAER order must submit an annual progress report to DEQ describing the progress in implementing the requirements in the BAER order. The annual 
progress reports are due to DEQ on or before February 15 of each year following the date that the notice 
of the BAER order is final and effective. The annual progress report must include:  
(A) A description of the progress achieved in implementing the requirements in any BAER order;  
(B) A schedule indicating dates for future increments of progress;  
(C) A description of any increases or decreases in covered emissions that have occurred at the covered 
stationary source since the submission date of the most recently conducted complete BAER assessment; 
and 
(D) An estimate of when all implementation of requirements of the BAER order will be complete.  
(b) The owner or operator of a covered stationary source must submit a BAER order completion report to 
DEQ no later than 60 days after implementation of all requirements in the BAER order are complete, 
except for items related to continuous and ongoing req uirements. The report must include:  
(A) The final increments of progress achieved in fully implementing the requirements in the BAER order 
and the date the final increments of progress were achieved;  
(B) A summary of the actions taken to fully implement the requirements in the BAER order; and  
(C) An estimate of the resulting covered emissions reductions that will be achieved now that the 
requirements in the BAER order are being implemented. 
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0390  
Recordkeeping Requirements Related to BAER  
(1) Recordkeeping requirements related to BAER assessments and five year BAER reports.  
(a) The owner or operator of a covered stationary source that submits any information to DEQ related to a 
complete BAER assessment or five year BAER report conducted according to OAR 340- 271-0310 must 
retain the following records, in paper or electronic format, for a period of at least ten years from the date 
the information is submitted to DEQ:  
(A) A copy of the assessment or report submitted to DEQ;  
(B) Any contract(s) with any independent third -party(ies) in relation to developing the assessment or 
report; and  
(C) All other information and documentation used to support and inform development of the assessment 
or report.  (b) The owner or operator of the covered stationary source must make available to DEQ upon request all 
of the records it is required to retain according to this section. DEQ will specify the date by which the owner or operator of the covered stationary source must fulfill a records request from DEQ.  
(2) Recordkeeping requirements related to compliance with a BAER order.  
(a) The owner or operator of a covered stationary source issued a BAER order must retain the following records, in paper or electronic format, for a period of at least ten years from the applicable date specified below:  
(A) All records and information related to a BAER order including but not limited to a copy of the most 
recently submitted complete BAER assessment and a copy of DEQ’s written BAER order from the 
effective date of the BAER order;  
(B) A copy of the permit modification application for the CPP permit addendum or the applicable permit application from the date it is submitted to DEQ;  
(C) A copy of each progress report from the date it is submitted to DEQ; and  
(D) All other information and documentation related to actions taken to comply with requirements in a BAER order from the effective date of the BAER order.  
(b) The owner or operator of a covered stationary source issued a BAER order must make available to DEQ upon request all of the records it is required to retain according to this section. DEQ will specify the 
date by which the owner or operator of the cove red stationary source must fulfill a records request from 
DEQ.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 
468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0410  
Generation of Compliance Instruments  
(1) Each year, DEQ will generate the number of compliance instruments equal to the cap for the calendar year identified in Table 2 in OAR 340- 271-9000.  
(2) A compliance instrument is a regulatory instrument and does not constitute personal property, a 
security or any other form of property.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 
468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0420  
Distribution of Compliance Instruments to Covered Fuel Suppliers  (1) DEQ will distribute compliance instruments according to this rule. DEQ will distribute compliance 
instruments from a cap according to sections (2), (3), (4), and (6) no later than June 30 of the calendar year of that cap.  
(2) Annual distribution of compliance instruments to covered fuel suppliers that are local distribution companies. DEQ will annually distribute to each local distribution company, or to its successor(s) due to a 
change in ownership or operation, the number  of compliance instruments from the calendar year’s cap 
stated in Table 4 in OAR 340- 271-9000.  
(3) DEQ will establish a compliance instrument reserve for covered fuel suppliers that are new to the 
program and are not local distribution companies. DEQ will hold, according to subsection (4)(a), a subset 
of compliance instruments in the reserve from th e caps identified in Table 2 in OAR 340- 271-9000. Once 
a compliance instrument is held in the reserve, it remains in the reserve until DEQ determines, at its 
discretion, to undertake one of the following actions:  
(a) DEQ distributes the compliance instrument according to section (5) to a covered fuel supplier that is 
not a local distribution company;  
(b) DEQ retires the compliance instrument because the compliance instrument reserve exceeds the size described in Table 3 OAR 340- 271-9000, provided that after such retirement the size of the compliance 
instrument reserve will equal or exceed the reserve s ize described in Table 3; or  
(c) DEQ distributes the compliance instrument to a covered fuel supplier that is not a local distribution company because the size of the compliance instrument reserve exceeds the reserve size described in 
Table 3 in OAR 340- 271-9000. DEQ will only distrib ute compliance instruments from the reserve 
according to this subsection if there are at least 10,000 compliance instruments to distribute and if the 
remaining size of the reserve after this distribution will equal or exceed the reserve size described in T able 
3 in OAR 340 -271-9000. DEQ will calculate the number of compliance instruments to distribute to each 
covered fuel supplier that is not a local distribution company according to subsection (4)(b), except “total 
compliance instruments to distribute” mea ns the total number of compliance instruments DEQ is 
distributing from the reserve according to this subsection. 
(4) Annual distribution of compliance instruments to covered fuel suppliers that are not local distribution 
companies. DEQ will annually distribute compliance instruments from the applicable calendar year’s cap 
to covered fuel suppliers that are not local distribution companies as follows:  
(a) If the size of the compliance instrument reserve is less than the reserve size described in Table 3 in 
OAR 340 -271-9000 for the calendar year, then DEQ will calculate the difference and hold in the 
compliance instrument reserve that quantity of complia nce instruments. Otherwise, the number of 
compliance instruments in the reserve will not be changed.  
(b) Except for compliance instruments identified in Table 4 in OAR 340 -271-9000 for distribution 
according to section (2) and the compliance instruments held in the reserve according to section (3) and 
subsection (4)(a), DEQ will calculate the number of co mpliance instruments to distribute to each covered 
fuel supplier that is not a local distribution company as described in this subsection, including paragraphs (A) through (E), based on emissions data from the prior calendar year as reported by each covere d fuel 
supplier as required by OAR chapter 340, division 215, and subject to DEQ’s initial review for errors, but prior to completion of third -party verification as required by OAR chapter 340, division 272. A person 
that becomes a covered fuel supplier af ter DEQ has distributed the compliance instruments for that year 
will not receive a distribution under this subsection.  (A) Beginning with the 2026 annual distribution of compliance instruments, P prior to each calculation of 
compliance instrument distribution described in paragraph (B), DEQ will apply a “Verified emissions data 
correction factor” to the annual compliance instrument distribution of each covered fuel supplier. DEQ 
will recalculate the compliance instrument distribution from the previous year using third -party verified 
emissions data. If DEQ determines that the repo rted emission data used for the previous year’s 
compliance instrument distribution resulted in a lesser or greater number of compliance instruments being 
distributed to a covered fuel supplier, when compared to the recalculation using the third- party verif ied 
data, DEQ will increase or reduce, respectively, the number of compliance instruments distributed to the covered fuel supplier by an equal amount in the current compliance instrument distribution. 
(B) DEQ will use the following formula to calculate the number of compliance instruments to distribute to each covered fuel supplier:  
Number of Compliance Instruments = (Total compliance instruments to distribute * ([Covered fuel 
supplier covered emissions + covered fuel supplier biofuel emissions] / Total emissions)) ± Verified 
emissions data correction factor – Compliance instrument holding limit reduction  
(C) As used in the formula in paragraph (B):  
(i) “Total compliance instruments to distribute” means the cap for the calendar year, according to Table 2 in OAR 340- 271-9000, minus the number of compliance instruments identified in Table 4 in OAR 340-
271-9000; and minus the number of compliance instrum ents held in the compliance instrument reserve;  
(ii)(I) For the 2025 and all subsequent annual distributions, “ Ccovered fuel supplier covered emissions” 
means the sum of a covered fuel supplier’s covered emissions for the prior calendar year;  
(II) For the 2024 annual distribution of compliance instruments, each covered fuel supplier’s “covered 
fuel supplier covered emissions” will be either the sum of the covered fuel supplier’s verified covered 
emissions for the 2022 calendar year or the sum of the covered fuel supplier’s unverified covered 
emissions for the 2023 calendar year. The verified 2022 data will be used if the sum of a covered fuel 
supplier’s verified 2022 covered emissions plus the verified emissions described in OAR 340-271-
0110(3)( b)(B)(i) that result from the complete combustion or oxidation of all biomass -derived fuels that 
the covered fuel supplier imported, sold, or distributed for use in the state in 2022 is greater than the sum 
of a covered fuel supplier’s unverified 2023 covered emissions plus the unverified emissions described in 
OAR 340 -271-0110(3)(b)(B)(i) that result from the complete combustion or oxidation of all biomass-
derived fuels that the covered fuel supplier imported, sold, or distributed for use in the state in 2 023. The 
unverified 2023 data will be used if the sum of a covered fuel supplier’s unverified 2023 covered 
emissions plus the unverified emissions described in OAR 340-271- 0110(3)(b)(B)(i) that result from the 
complete combustion or oxidation of all biomass-derived fuels that the covered fuel supplier imported, 
sold, or distributed for use in the state in 2023 is greater than the sum of a covered fuel supplier’s verified 
2022 covered emissions plus the verified emissions described in OAR 340- 271-0110(3)(b)( B)(i) that 
result from the complete combustion or oxidation of all biomass-derived fuels that the covered fuel 
supplier imported, sold, or distributed for use in the state in 2022; 
(iii)(I) For the 2025 and all subsequent annual distributions, “ Ccovered fuel supplier biofuel emissions” 
means emissions described in OAR 340 -271-0110(3)(b)(B)(i) that result from the complete combustion or 
oxidation of the annual quantity of biomass-derived fuels that the covered fuel supplier imported, sold, or distributed for use in the state for the prior calendar year; (II) For the 2024 annual distribution of compliance instruments, if a covered fuel supplier’s covered fuel 
supplier covered emissions, as determined under sub-subparagraph (ii)(II), are its verified 2022 calendar 
year emissions, then its “covered fuel supp lier biofuel emissions” will be based on verified 2022 calendar 
year emissions data, but if a covered fuel supplier’s covered fuel supplier covered emissions, as 
determined under sub- subparagraph (ii)(II), are its unverified 2023 calendar year emissions, t hen its 
“covered fuel supplier biofuel emissions” will be based on unverified 2023 calendar year emissions data; 
(iv) “Total emissions” means the sum of “covered fuel supplier covered emissions” and “covered fuel 
supplier biofuel emissions” for the prior calendar year for all covered fuel suppliers whose compliance instrument distribution is calculated according to this section.  For the 2024 annual distribution of 
compliance instruments, “Total emissions” means the sum of “covered fuel supplier covered emissions” 
and “covered fuel supplier biofuel emissions” used for that year’s calculation, as described in 
subparagraphs (ii) and (iii); and  
(v) “V erified emissions data correction factor” means a correction applied as a result of changes to reported data since the previous distribution of compliance instruments, as described in paragraph (A); and 
(vi) “Compliance instrument holding limit reduction” means the number of compliance instruments 
described in OAR 340- 271-0430(2). If the compliance instrument holding limit reduction exceeds the 
number of compliance instruments that a covered fuel supplier  would have received in the distribution 
before subtracting the compliance instrument holding limit reduction, then the covered fuel supplier will 
not receive any compliance instruments in the distribution, and a compliance instrument holding limit 
reducti on equal to the amount by which it exceeded the number of compliance instruments that a covered 
fuel supplier would have received in the distribution before subtracting the compliance instrument holding limit will be applied in the following year. 
(D) DEQ will distribute a number of compliance instruments to each covered fuel supplier using the 
formula in paragraph (B) and rounded down to the nearest whole number. 
(E) Any remaining compliance instruments not distributed due to rounding as described in paragraph (D) 
will be held in the compliance instrument reserve.  
(5) Distribution from compliance instrument reserve for new covered fuel suppliers that are not local distribution companies.  
(a) A covered fuel supplier is eligible for a distribution from the compliance instrument reserve if it is not 
a local distribution company and if the person was not included in the distribution of compliance 
instruments for that year according to section (4).  
(b) For all calendar years after 2024, a A covered fuel supplier meeting the requirements of subsection (a) 
is not eligible for a distribution of compliance instruments from the reserve if the person is a related entity to a covered fuel supplier that received a distribution of compliance instrume nts under section (4). 
(c) A covered fuel supplier identified according to subsection (a) and not ineligible under subsection (b) m
ay request a distribution of compliance instruments from the reserve by submitting an application to 
DEQ, on a form approved by DEQ, that includes t he information described in paragraphs (A) through 
(D), no later than June 1 of the year after the calendar year of the annual distribution of compliance 
instruments from which the covered fuel supplier was not included. The covered fuel supplier must 
subm it a separate application for each year for which it is seeking distribution of compliance instruments 
from the reserve.  (A) Information about the covered fuel supplier, including:  
(i) Name and full mailing address; and  
(ii) Designated representative’s contact information including name, title or position, phone number, and 
email address;  
(B) The calendar year of covered emissions for which compliance instruments are requested;  
(C) The reason for the request, including description of eligibility according to subsection (a); and  
(D) The following attestation, signed by the designated representative of the covered fuel supplier:  
I certify under penalty of perjury under the laws of the State of Oregon that I am a representative of [covered fuel supplier], am authorized to submit this application on its behalf, and that, to the best of my knowledge and belief, the information provid ed in this form is true, accurate, and complete. [Covered fuel 
supplier] is a covered fuel supplier in the year indicated in this application and requests compliance 
instruments from the reserve according to the information included in this application. 
(d) DEQ will review an application submitted according to subsection (b) to ensure that it meets the 
requirements of this section. DEQ will inform the applicant either that the submitted application is 
complete or that additional specific information is re quired to make the application complete. If the 
application is incomplete, DEQ will not consider the application further until the applicant provides the additional information requested by DEQ.  
(e) If DEQ approves an application, DEQ will distribute one or more compliance instruments to the covered fuel supplier from the reserve no later than June 15 of the year after the calendar year of the 
annual distribution of compliance instruments from whi ch the covered fuel supplier was not included. 
DEQ will distribute compliance instruments from the reserve to the covered fuel supplier, as follows:  
(A) A maximum distribution amount that will not exceed the covered fuel supplier’s covered emissions in that calendar year using emissions data from the prior calendar year as reported by each covered fuel 
supplier as required by OAR 340, division 215, and subject to DEQ’s initial review for errors, but prior to 
completion of third -party verification as required by OAR 340, division 272; and  
(B) If there are fewer compliance instruments in the reserve at the time of distribution than have been 
requested by all covered fuel suppliers who are approved for a reserve distribution for a calendar year, 
DEQ shall allocate compliance instruments in th e reserve according to the ratio of each covered fuel 
supplier’s covered emissions in that calendar year to the total covered emissions from all covered fuel suppliers in that calendar year.  
(6) Each year, the sum of all compliance instruments that are not distributed to fuel suppliers in the distribution under section (4) as a result of compliance instrument holding limit reductions will be 
distributed to all covered fuel suppliers that did not have any compliance instrument holding limit 
reduction using the formula described in paragraph OAR 340- 271-0420(4)(b)(B), except that, for 
purposes of such redistribution, “total co mpliance instruments to distribute” means the total number of 
compliance instruments that DEQ did not distribute to fuel suppliers in the general distribution under 
section (4) as a result of compliance instrument holding limit reductions. Such additional distribution of 
compliance instruments shall be made at the same time as the distribution described in section (4). Any remaining compliance instruments not distributed due to rounding will be held in the compliance instrument reserve.  (7) Upon distribution of compliance instruments according to sections (2), (4), (5), and (6), DEQ will 
notify the designated representative of each covered fuel supplier in writing of the availability of compliance instruments.  
(8) DEQ will track distributed compliance instruments.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 26 -2023, temporary amend filed 12/08/2023, effective 12/08/2023 through 06/04/2024  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0430  
Holding Compliance Instruments  
(1)When DEQ distributes a compliance instrument to a covered fuel supplier according to OAR 340- 271-
0420 or when a covered fuel supplier acquires a compliance instrument according to OAR 340- 271-0500, 
the covered fuel supplier may continue to hold the compliance instrument until any of the following apply:  
(a) The covered fuel supplier uses the compliance instrument toward its demonstration of compliance with a compliance obligation according to OAR 340- 271-0450;  
(b) The covered fuel supplier transfers the compliance instrument to another covered fuel supplier 
according to OAR 340 -271-0500; or  
(c) The covered fuel supplier has ceased being a covered fuel supplier according to OAR 340- 271-0130. 
When this occurs, DEQ may, at its discretion:  
(i) Retire the compliance instrument; or  
(ii) If the covered fuel supplier is not a local distribution company:  
(A) Hold the compliance instrument in the compliance instrument reserve described in OAR 340 -271-
0420(3); or  
(B) Distribute the compliance instrument to a covered fuel supplier that is not a local distribution 
company. DEQ will only distribute the compliance instrument if there are at least 10,000 compliance 
instruments to distribute. DEQ will calculate the numbe r of compliance instruments to distribute to each 
covered fuel supplier according to OAR 340- 271-0420(4)(b), except “total compliance instruments to 
distribute” means the total number of compliance instruments DEQ is distributing according to this 
paragrap h. 
(2) For each covered fuel supplier that is not a local distribution company, a compliance instrument 
holding limit reduction will be calculated on November 22 of the year following the end of each 
compliance period, or 25 days after DEQ’s notification in O AR 340 -271-0450(1), whichever is later. A 
covered fuel supplier’s compliance instrument holding limit reduction is the number of compliance 
instruments from any prior year held by the covered fuel supplier on that date that exceeds one and a half times the  sum of the covered fuel supplier’s annual compliance obligation(s) for each year of the prior 
compliance period. In the year subsequent to the year after the end of a compliance period, if a fuel supplier did not receive any compliance instruments in the distribution under section OAR 340-271-
0420(4) in the prior year because its compliance instrument holding limit reduction exceeded the number of compliance instruments that it otherwise would have  been distributed, then the fuel supplier’s 
compliance instrument holding limit reduction will be reduced as provided in subparagraph OAR 340-271-0420(4)(b)(B)(vi), and such reduced compliance instrument holding limit reduction will be used in the subseque nt year’s compliance instrument distribution calculation under section OAR 340 -271-
0420(4). 
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040 
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 
468A.045 
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
340-271-0440  
Compliance Periods  
(1) Each compliance period is three consecutive calendar years.  
(2) The first compliance period begins with calendar year 20252, and includes calendar years 20263 and 
20274. 
(3) A new compliance period begins with the calendar year following the last calendar year of the preceding compliance period.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040 Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045 
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
340-271-0450  
Demonstration of Compliance  
(1) DEQ will determine a covered fuel supplier’s total compliance obligation for a compliance period as the sum of the covered fuel supplier’s annual compliance obligation(s) for each year of the compliance 
period. DEQ will base its determinations on emissions calculated according to OAR 340-271-0110(1). 
DEQ will notify the covered fuel supplier of its determination. 
(2) A covered fuel supplier must demonstrate compliance according to this rule by December 9 of the year 
following the end of each compliance period, or 40 days after DEQ’s notification described in section (1), whichever is later.  
(3) To demonstrate compliance for a compliance period, a covered fuel supplier must submit the following to DEQ: 
(a) For each metric ton of CO2e of the total compliance obligation, either a compliance instrument or a CCI credit, subject to the following limitations:  (A) A covered fuel supplier may only submit compliance instruments that DEQ distributed from the caps 
for the calendar years of the applicable compliance period or from caps for earlier compliance periods; and 
(B) The quantity of CCI credits used to demonstrate compliance as a percentage of the total compliance obligation for the applicable compliance period may not exceed the allowable percentage specified in 
Table 6 in OAR 340- 271-9000.  
(b) A demonstration of compliance form, approved by DEQ that includes:  
(A) Name and full mailing address of the covered fuel supplier;  
(B) Designated representative’s contact information including name, title or position, phone number, and 
email address;  
(C) Identification of the compliance period and calendar year(s) for which the covered fuel supplier is 
demonstrating compliance;  
(D) The total compliance obligations in metric tons of CO2e for the compliance period and listed separately for each calendar year in the compliance period;  
(E) The total number of compliance instruments the covered fuel supplier is submitting to DEQ to demonstrate compliance, and separately the total number submitted from each calendar year’s cap;  
(F) The total number of CCI credits the covered fuel supplier is submitting to DEQ to demonstrate compliance; and  
(G) The following attestation, signed by the designated representative of the covered fuel supplier:  
I certify under penalty of perjury under the laws of the State of Oregon that I am a representative of [covered fuel supplier], am authorized to submit this report on its behalf, and that, to the best of my 
knowledge and belief, the information provided in this form is true, accurate, and complete. It is the intent 
of [covered fuel supplier] to use the quantity of compliance instruments and credits listed on this form and submitted to DEQ for the demonstration of compliance. I certify that [covered fuel supplier] has not exceeded the allowable use of CCI credits. If any portion of these compliance obligations remain unmet 
after this submission, I understand that [covered fuel supplier] must still demonstrate compliance with the 
remaining portion and may be s ubject to enforcement action.  
(4) Each metric ton of CO2e of a compliance obligation for which a covered fuel supplier does not 
demonstrate compliance according to this rule is a separate violation of this division. 
(5) If a change in ownership of a covered fuel supplier occurs, the person that owns or operates the 
covered fuel supplier as of December 31 in the final year of a compliance period is responsible for 
demonstration of compliance according to this rule for each annual compliance obligation during the 
compliance period. Compliance obligations may not be split or subdivided based on ownership changes 
during the compliance period or during any year within the compliance period.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045  
History:  DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0490  
Recordkeeping Requirements Related to Demonstration of Compliance  
(1) A person must retain the following records necessary for determining compliance obligations, in paper 
or electronic format, for a period of at least seven years beginning September 30 of the year following a year in which covered emissions occurred:  
(a) Records according to the recordkeeping requirements of OAR chapter 340, divisions 215 and 272, as 
applicable;  
(b) Copies of reports and forms submitted to DEQ related to determination of compliance obligations 
according this division and OAR chapter 340, divisions 215 and 272, including but not limited to:  
(A) Applicable emissions data reports submitted according to OAR chapter 340, division 215; and  
(B) Applicable verification statements submitted according to OAR chapter 340, division 272; and  
(c) All other information and documentation used to calculate and report emissions and used to determine emissions and compliance obligations according to this division.  
(2) A person must retain the following records necessary for supporting demonstration of compliance, 
according to OAR 340 -271-0450, in paper or electronic format for a period of at least seven years 
following the deadline for demonstration of compliance in OAR 340 -271-0450:  
(a) Copies of reports and forms submitted to DEQ related to demonstration of compliance, including but not limited to demonstration of compliance forms; and  
(b) All other information and documentation used to support demonstration of compliance.  
(3) A covered fuel supplier must make available to DEQ upon request all of the records it is required to 
retain according to this rule. DEQ will specify the date by which the covered fuel supplier must fulfill a records request from DEQ.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0500  
Trading of Compliance Instruments  
(1) A covered fuel supplier may trade one or more compliance instruments only according to this rule. A 
covered fuel supplier may transfer one or more compliance instruments to another covered fuel supplier 
up to the amount that it has available and has no t used to demonstrate compliance. A covered fuel supplier 
may acquire one or more compliance instruments from another covered fuel supplier.  
(2) A covered fuel supplier may not engage in a trade of a compliance instrument involving, related to, in service of, or associated with any of the following:  
(a) Fraud, or an attempt to defraud or deceive using any device, scheme or artifice;  (b) Use of any unconscionable tactic in connection with the transfer, by any person;  
(c) Any false report, record, or untrue statement of material fact or omission of a material fact related to 
the transfer or conditions that would relate to the price of the compliance instrument being sold. A fact is material if it is reasonably likely to  influence a decision by another person or by DEQ;  
(d) Any activity intended to lessen competition or tend to create a monopoly, or to injure, destroy or prevent competition in the market for compliance instruments;  
(e) A conspiracy in restraint of trade or commerce; or  
(f) An attempt to monopolize holding of compliance instruments, or to combine, collude, or conspire with 
any other person or persons to monopolize.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0510  
Compliance Instrument Trade Notifications and Process  
(1) Covered fuel suppliers that trade one or more compliance instruments must notify DEQ of the trade. 
The designated representatives of both the covered fuel supplier transferring the compliance instrument 
and the covered fuel supplier acquiring the compl iance instrument must sign and submit a compliance 
instrument trade form that meets the requirements of this section, using a form approved by DEQ.  
(a) The covered fuel supplier transferring one or more compliance instruments must sign first; and  
(b) The covered fuel supplier acquiring the compliance instrument(s) must sign the same form and submit 
it to DEQ no later than one week after the transferring covered fuel supplier signs the form.  
(c) All of the following must be included on a compliance instrument trade form:  
(A) The agreed upon date of the trade.  
(B) The total number of compliance instruments traded, and separately the total number traded from each calendar year’s cap.  
(C) The total price per compliance instrument (in US dollars), excluding any fees. If a specific dollar value is not paid for the compliance instrument, an estimate must be provided.  
(D) As applicable, other information about the trade that DEQ determines is necessary to support DEQ’s monitoring of trades and that DEQ includes on the form;  
(E) The following information about the covered fuel supplier transferring the compliance instrument(s):  
(i) Name and full mailing address of the covered fuel supplier.  
(ii) Designated representative’s contact information including name, title or position, phone number, and email address.  
(iii) The following attestation, signed by the designated representative:  I certify under penalty of perjury under the laws of the State of Oregon that to the best of my knowledge 
and belief the information in this form is true, accurate, and complete. [Covered fuel supplier] is transferring these compliance instruments to [covered fuel supplier that is acquiring] for the price 
described in this form.  
(F) The following information about the covered fuel supplier acquiring the compliance instrument(s):  
(i) Name and full mailing address of the covered fuel supplier.  
(i) Designated representative’s contact information including name, title or position, phone number, and 
email address.  
(iii) The following attestation, signed by the designated representative:  
I certify under penalty of perjury under the laws of the State of Oregon that to the best of my knowledge 
and belief the information in this form is true, accurate, and complete. [Covered fuel supplier] is acquiring compliance instruments from [covered fue l supplier that is transferring] for the price described 
in this form.  
(2) When DEQ receives a compliance instrument trade form for one or more compliance instruments as described in section (1), DEQ will inform the applicant either that the submitted form is complete or that 
additional specific information is required to mak e the form complete. Upon receipt of a complete form 
signed by both covered fuel suppliers involved in a trade, DEQ will track traded compliance instruments. 
DEQ will notify the designated representative of the covered fuel supplier acquiring compliance instrument(s) in writing of availability of these compliance instruments. DEQ will notify the designated 
representative of the covered fuel supplier transferring compliance instrument(s) in writing that the 
covered fuel supplier no longer holds the complianc e instruments. If DEQ determines that the form is 
incomplete, DEQ will not track the requested trade unless and until the applicant provides the additional information requested by DEQ to make the form complete, and such instruments will not be available t o 
the covered fuel supplier acquiring the instruments.  
(3) A covered fuel supplier acquiring one or more compliance instrument(s) in a trade may not use the 
compliance instrument(s) in other trades or toward demonstration of compliance with any compliance 
obligation until the trade has been reported to DEQ and  DEQ has tracked the traded compliance 
instrument(s). Trades may only be reported to DEQ after DEQ has made the compliance instrument trade form available. DEQ will notify covered fuel suppliers when the compliance instrument trade form is available.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 
468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0590  
Recordkeeping Requirements Related to Trading  
(1) A person who transfers one or more compliance instruments in a trade according to OAR 340 -271-
0510 must retain the following records related to each trade, in paper or electronic format for a period of 
at least seven years following the submission date  of a complete compliance instrument trade form:  
(a) A copy of each compliance instrument trade form submitted to DEQ;  (b) A copy of any invoice or documentation of monetary payment received related to the trade; 
(c) A statement from a financial institution showing receipt of any payment for the compliance 
instrument;  
(d) Documentation of any service or other qualitative compensation received related to the trade; and 
(e) A copy of all other data, reports, or other information related to the trade.  
(2) A person who acquires one or more compliance instruments in a trade according to OAR 340-271-
0510 must retain the following records related to each trade, in paper or electronic format for a period of at least seven years following the submission date of a complete compliance instrument trade form:  
(a) A copy of each compliance instrument trade form submitted to DEQ; 
(b) A copy of any invoice or documentation of monetary payment related to the trade; 
(c) A statement from a financial institution showing any payment for the compliance instrument;  
(d) Documentation of any service or other qualitative compensation provided related to the trade; and (e) A copy of all other data, reports, or other information related to the trade.  
(3) Covered fuel suppliers must make the records retained according to this rule available to DEQ upon 
request. DEQ will specify the date by which the covered fuel supplier must fulfill a records request from DEQ.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050 Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
340-271-0810  
Covered Fuel Supplier Application for Community Climate Investment Credits  
(1) A covered fuel supplier is eligible to receive one or more CCI credits if it contributes CCI funds according to this rule.  
(a) The covered fuel supplier may receive CCI credits only for contributions to a CCI entity that has been approved by DEQ according to OAR 340-271-0920(1) and has entered into a written agreement with DEQ to accept and administer CCI funds according to OAR 340-271-0920(2). 
(b) A covered fuel supplier is not eligible to receive a CCI credit for any contribution made to a CCI entity 
prior to March 1, 2023. 
(cb) If more than one CCI entity is approved to accept funds according to subsection (a) the covered fuel 
supplier must contribute an equal amount of CCI funds to each CCI entity that may receive funds consistent with its agreement with DEQ according to OAR 340-271- 0920(2). The contribution amount to 
each CCI entity may vary by up to one US dollar. 
(2) A covered fuel supplier must apply to receive CCI credits by submitting an application to DEQ, on a f
orm approved by DEQ that includes the information described in section (3). A covered fuel supplier 
may not submit an application to request CCI credits on behalf of another person. (3) A covered fuel supplier that submits an application to DEQ to request CCI credits must submit a 
complete and accurate application. The application must include:  
(a) Information about the covered fuel supplier, including:  
(A) Name and full mailing address; and  
(B) Designated representative’s contact information including name, title or position, phone number, and email address;  
(b) The name of each CCI entity that received CCI funds from the covered fuel supplier;  
(c) A copy of the receipt(s) described in OAR 340- 271-0930(1)(a) received from each CCI entity;  
(d) The total CCI funds (in US dollars) contributed to each CCI entity, excluding any fees; and  
(e) The following attestation, signed by the designated representative of the covered fuel supplier:  
I certify under penalty of perjury under the laws of the State of Oregon that to the best of my knowledge and belief the information in this application is true, accurate, and complete. [Covered fuel supplier] 
contributed the community climate investment funds noted in this application to each community climate 
investment entity listed for the purposes of supporting eligible projects as described in OAR  340-271-
0900.  
(4)(a) A covered fuel supplier seeking to receive CCI credits in order to use them to demonstrate compliance for a particular compliance period must submit its application to DEQ no later than November 14 of the year it will demonstrate compliance accordin g to OAR 340- 271-0450, or 11 days 
after DEQ’s notice described in OAR 340 -271-0450(1), whichever is later.  
(b) DEQ’s determination of the quantity of CCI credits to generate and distribute is based on the amount of the covered fuel supplier’s contribution to CCI entities, as documented in its application and the CCI 
credit contribution amount described in Table  7 in OAR 340- 271-9000 that was in effect on the date the 
contribution was made, adjusted for inflation according to OAR 340 -271-0820(3). 
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 
468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0820  
Generation and Distribution of Community Climate Investment Credits  
(1) DEQ will review an application submitted according to OAR 340 -271-0810 to ensure that it meets the 
requirements of that rule. DEQ will inform the applicant either that the submitted application is complete or that additional specific information is required to make the application complete. If DEQ determines that the application is incomplete or does not meet the requirements of OAR 340 -271-0810, DEQ will not 
consider the application further until the applicant provides the additional information requested by DEQ.  
(2) DEQ will approve an application for CCI credits submitted by a covered fuel supplier if DEQ 
determines that the application is accurate and complete according to the requirements of OAR 340 -271-
0810, and DEQ determines that the CCI funds have been prov ided to an approved CCI entity that is in 
good standing according to OAR 340- 271-0910 through OAR 340- 271-0990.  (3) Approval of an application for CCI credits. 
(a) Upon approval of an application for CCI credits, DEQ will notify the covered fuel supplier in writing 
that DEQ has approved the application and will generate and distribute to the covered fuel supplier the quantity of CCI credits approved according to subsection (b). 
(b) The amount of CCI credits that DEQ will generate and distribute to the covered fuel supplier is one CCI credit for every verified contribution of the CCI credit contribution amount that a covered fuel supplier provides to a CCI entity, rounded down to the nearest whole number. The CCI credit contribution amount is the applicable amount in Table 7 in OAR 340-271-9000 for the date the contribution was made, 
with the CCI credit contribution amount adjusted for inflation and rounded to the nearest dollar us ing the 
inflation rate since January 20212024, as provided by the United States Bureau of Labor and Statistics 
West Region Consumer Price Index for All Urban Consumers for all Items. DEQ will post the current, 
inflation adjusted CCI credit contribution amount on its website effective March 1 of each year. The 
formula for the adjustment is as follows:  
CCI Credit Contribution Amount = CCI Credit Contribution Amount in Table 7 in OAR 340-271-9000 * 
(CPI -U West for January of the calendar year for the price in Table 7 in OAR 340-271-9000 that is 
currently in effect / CPI -U West for January 20212024 ) 
(4) A CCI credit is a regulatory instrument and does not constitute personal property, a security or any other form of property. 
(5) DEQ will track distributed CCI credits.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040 
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045 History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
340-271-0830  
Holding Community Climate Investment Credits  
(1) When DEQ distributes a CCI credit to a covered fuel supplier according to OAR 340-271-0820, the covered fuel supplier may continue to hold the CCI credit until any of the following apply: 
(a) The covered fuel supplier uses the CCI credit toward its demonstration of compliance according to 
OAR 340 -271-0450; 
(b) Two demonstration of compliance deadlines described in OAR 340-271- 0450(2) have passed since the 
date DEQ provided written notice of its approval of the CCI credit to the covered fuel suppler according to OAR 340- 271-0820 and the covered fuel supplier has not used the CCI credit in its demonstration(s) of 
compliance. In such a case, DEQ will cancel the CCI credit. A cancelled CCI credit may not be used 
toward demonstration of compliance; or 
(c) The covered fuel supplier has ceased being a covered fuel supplier according to OAR 340-271-0130. 
When a covered fuel supplier ceases to be a covered fuel supplier, DEQ will cancel the CCI credit at the 
time of such cessation. A cancelled CCI credit may not be used toward any demonstration of compliance. 
(2) Only a covered fuel supplier that receives a CCI credit from DEQ may hold the CCI credit. The 
covered fuel supplier may not trade the CCI credit.  Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 
468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0890  
Recordkeeping Requirements Related to Community Climate Investment Funds  
(1) A covered fuel supplier that provides CCI funds to a CCI entity must retain the following records, in 
paper or electronic format, for a period of time that begins with the date it provides the CCI funds and 
lasts seven years after all resulting CCI credits are submitted to demonstrate compliance or are cancelled:  
(a) A copy of any invoice or documentation of monetary payment related to CCI funds;  
(b) A statement from a financial institution showing any payments related to CCI funds;  
(c) A copy of any receipt received from a CCI entity; and 
(d) All other information and documentation related to the CCI funds provided to a CCI entity.  
(2) A covered fuel supplier must retain the following records, in paper or electronic format, for a period 
that begins the date it applies for a CCI credit and lasts seven years after the CCI credit is used to demonstrate compliance or is cancelled:  
(a) A copy of each application submitted to DEQ to request CCI credits; and  
(b) All other information and documentation related to CCI credit(s) received from DEQ. 
(3) A covered fuel supplier must make available to DEQ upon request all of the records it is required to 
retain according to this rule. DEQ will specify the date by which the covered fuel supplier must fulfill a 
records request from DEQ.  
Statutory/Other Authority: ORS 468.020, 468A.025, 468A.040 & 468A.050  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468A.050, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0900  
Purposes of Community Climate Investments and Eligible Uses of CCI Funds  
(1) The purposes of community climate investments are to:  
(a) Provide covered entities with an optional means of meeting part of their compliance obligation for one 
or more compliance periods;  
(b) Reduce anthropogenic greenhouse gas emissions in Oregon by an average of at least one MT CO2e per CCI credit distributed by DEQ;  
(c) Reduce emissions of other air contaminants that are not greenhouse gases, particularly in or near environmental justice communities in Oregon;  (d) Promote public health, environmental, and economic benefits for environmental justice communities 
throughout Oregon to mitigate impacts from climate change, air contamination, energy costs, or any combination of these; and  
(e) Accelerate the transition of residential, commercial, industrial and transportation -related uses of fossil 
fuels in or near environmental justice communities in Oregon to zero or to other lower greenhouse gas 
emissions sources of energy in order to pro tect people, communities and businesses from increases in the 
prices of fossil fuels.  
(2) A CCI entity may use CCI funds only for:  
(a) Implementing eligible projects in Oregon, which are actions that reduce anthropogenic greenhouse gas 
emissions that would otherwise occur in Oregon. Eligible projects include, without limitation, actions that reduce emissions in Oregon resulting from:  
(A) Transportation of people, freight, or both;  
(B) An existing or new residential use or structure;  
(C) An existing or new industrial process or structure; and  
(D) An existing or new commercial use or structure.  
(b) The costs of administering CCI funds and eligible projects, including costs of reporting and other 
requirements included in OAR  340- 271-0930 and costs of capacity- building for implementation of 
eligible projects.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 
468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-0910  
Application to DEQ for Approval as a Community Climate Investment Entity 
(1) To be eligible for DEQ approval as a community climate investment entity, an entity must demonstrate 
that it:  
(a) Is authorized to do business in Oregon, and that it is exempt from federal taxation according to Section 501(c)(3) of the U.S. Internal Revenue Code, 26 U.S.C. § 501(c)(3);  
(b) Has the capacity to administer and spend CCI funds to carry out eligible projects as specified in OAR 
340-271-0900(2);  
(c) Has or will have staff capable of conducting work associated with being a CCI entity according to this division;  
(d) Has or will have staff or subcontractors capable of implementing eligible projects throughout Oregon; 
and 
(e) Is not a covered entity or a related entity of a covered entity.  (2) An eligible entity described in section (1) may apply to be approved as a CCI entity to implement 
eligible projects directly or by agreement with one or more subcontractors, or both. Subcontractors are not CCI entities, and do not need to meet the eligibility requirements of section (1). However, a CCI entity 
may not use CCI funds to pay a subcontractor that is a covered entity or a related entity of a covered 
entity.  
(3) An entity that seeks approval as a CCI entity must submit an application to DEQ, on a form in a format  
approved by DEQ that includes the following:  
(a) Information about the entity, including: 
(A) Name, full mailing address, and website address;  
(B) Contact person’s information including name, title or position, phone number, and email address; 
(C) Information to describe how the entity meets the eligibility criteria in section (1); 
(D) A copy of the entity’s current articles of incorporation and bylaws, and a description of the mission of 
the entity and how being a CCI entity supports the mission; 
(E) A description of the experience and expertise of key individuals, if known, who would be working to 
implement eligible projects with CCI funds or assigned work associated with the requirements of a CCI entity described in OAR 340-271-0930; 
(F) A description of experience implementing or supporting implementation of eligible projects or project types, particularly in environmental justice communities in Oregon. This may include the experience of the key individuals described in paragraph (E) whether or not that prior experience occurred while working with the entity; 
(G) Information regarding any violation by the entity related to federal or state labor laws within the 
preceding five years;  
(H) The entity’s IRS Form 990 for each of the three most recent years, if available; and  
(I) Proof that the IRS has certified the entity as qualifying as an exempt organization according to Section 
501(c)(3) of the U.S. Internal Revenue Code, 26 U.S.C. § 501(c)(3); 
(b) Information about each known or planned subcontractors, as available, including:  
(A) Name, full mailing address, and website address;  
(B) Contact person’s contact information including name, title or position, phone number, and email 
address;  
(C) Confirmation that the subcontractor is not a covered entity or any of its related entities; 
(D) If applicable, a description of the mission of the subcontractor and how being a subcontractor of a 
CCI entity supports the mission; 
(E) A description of the experience and expertise of key individuals who would be working to implement 
eligible projects with CCI funds; 
(F) A description of the subcontractor’s prior experience implementing or supporting implementation of 
eligible projects and a description of prior experience serving communities in Oregon; and (G) Information regarding any violation by the proposed subcontractor related to federal or state labor 
laws within the preceding five years;  
(c) Information about how any subcontractor(s) may be selected during project implementation if there are none listed in the application or if the entity expects to select one or more additional subcontractors during project implementation;  
(d) If known, a general description of either or both of the following: 
(A) Anticipated eligible project(s) or project type(s) that support the purposes of CCIs described in OAR 
340-271-0900(1) and that are eligible projects as defined in OAR 340-271- 0900(2) that the entity plans to 
implement if approved as a CCI entity; and  
(B) The communities in Oregon that are anticipated to benefit if the entity is approved as a CCI entity;  
(e) Description of the administrative processes and financial controls the entity will use to ensure all CCI 
funds are held separately from the entity’s other funds. This must detail how the entity will manage and 
invest funds in a manner consistent with ORS 128.318(2), (3), and (5)(a) through (f);  and 
(f) The anticipated annual total amount of CCI funds the entity would be able to receive and spend, 
including a description of why that annual amount is anticipated; and 
(g) The following attestation, signed by the entity’s contact person: 
I certify under penalty of perjury under the laws of the State of Oregon that to the best of my knowledge 
and belief the information in this application is true, accurate, and complete. [Entity] seeks to become a community climate investment entity and, if approved, will comply with the applicable requirements in Oregon Administrative Rules chapter 340, division 271. 
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040 
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045 
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
340-271-0920  
DEQ Review and Approval of Community Climate Investment Entities and Agreements for 
Approved CCI Entities  
(1) DEQ will review and may approve applications from entities proposing to be approved as CCI entities 
according to subsections (a) through (d). 
(a) DEQ will review an application submitted according to OAR 340-271- 0910 to ensure that it meets the 
requirements of that rule. DEQ will inform the entity either that the submitted application is complete or 
that additional specific information is required to make the application complete. If the application is incomplete, DEQ will not consider the application further until the entity provides the additional information requested by DEQ. 
(b) When evaluating complete applications submitted according to OAR 340 -271-0910, DEQ will consult 
with the equity advisory committee described in OAR 340-271-0950 and may consult with any other 
relevant experts selected by DEQ.  
(c) DEQ will consider the following when evaluating a complete application: (A) The content of the application;  
(B) Whether the entity meets the eligibility criteria in OAR 340 -271-0910(1);  
(C) Whether each proposed subcontractor, if applicable, complies with the eligibility criteria in OAR 340 -
271-0910(1)(e);  
(D) The overall ability of the entity and, if applicable, its subcontractor(s) to use CCI funds to complete 
eligible projects that advance the purposes set forth in OAR 340- 271-0900(1) and that collectively reduce 
anthropogenic greenhouse gas emissions in Oregon by an average of at least one MT CO2e per CCI credit 
distributed by DEQ based on CCI contributions to the entity;  
(E) The overall ability of the entity and/or its subcontractor(s) to use CCI funds as described in paragraph 
(D) relative to the overall ability of other applicants and approved CCI entities; and  
(F) Whether the applicant or any proposed subcontractors have violated any federal or state labor laws in 
the preceding five years.  
(d) DEQ will notify the applicant in writing whether provisional approval as a CCI entity is granted or denied.  
(2) If provisional approval as a CCI entity is granted, DEQ will then work with the CCI entity to complete a written agreement. The written agreement must be approved before an entity receives final approval as a CCI entity and is authorized to receive CCI  funds. The written agreement will include, but is not limited 
to: 
(a) Agreement to use CCI funds only for the uses specified in OAR 340 -271-0900(2);  
(b) The initial term of the agreement and approval, which may not exceed ten years;  
(c) Requirements for monitoring and reporting of project outcomes sufficient to document emissions 
reductions;  
(d) Provisions for, and limitations on, the payment of administrative expenses;  
(e) Provisions for extensions, amendments, or renewal of the agreement;  
(f) Other conditions that DEQ determines are necessary to include in the agreement in order to meet the requirements of this division, such as a limit on the amount of CCI funds that a CCI entity may accept.  
(3) If DEQ finds that any of the events in subsections (a) through (c) occur, DEQ may suspend or revoke 
approval of a CCI entity completely  or in part.  
(a) The CCI entity fraudulently obtained DEQ approval;  
(b) The CCI entity is in violation of any applicable provisions of this division or any written agreement 
between the CCI entity and DEQ; or  
(c) DEQ determines that the CCI entity is not in compliance with one or more of the eligibility criteria for approval in OAR 340 -271-0910(1).  
(4) DEQ will maintain a current list of approved CCI entities on DEQ’s website.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045 
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
340-271-0930  
Requirements for Community Climate Investment Entities  
(1) Acceptance of CCI funds.  
(a) Once approved by DEQ, unless otherwise specified in the agreement between a CCI entity and DEQ, 
a CCI entity must accept CCI funds from any covered fuel supplier that seeks to contribute CCI funds. 
The CCI entity must provide a receipt to the covered f uel supplier upon receipt of CCI funds from the 
covered fuel supplier. The receipt must include: 
(A) The name of the covered fuel supplier; 
(B) The name of the CCI entity; 
(C) The US dollar amount of the CCI funds accepted;  
(D) The date the CCI entity accepted the CCI funds; and  
(E) The following attestation:  
I verify that [CCI Entity] received the contribution from [Covered fuel supplier] as described on this 
receipt and I affirm that I am a representative of [CCI entity] authorized to sign this receipt.  
(b) Unless otherwise specified in the agreement between the CCI entity and DEQ, a CCI entity must accept CCI funds transferred to it from another CCI entity according to section (8).  
(2) Holding CCI funds. 
(a) A CCI entity must hold all CCI funds in one or more accounts separate from any other funds. 
Additionally, prior to being spent in compliance with the provisions of this division and its agreement with DEQ, funds must be managed and invested in a manner  consistent with ORS 128.318(2), (3), and 
(5)(a) through (f). A CCI entity may not encumber CCI funds or pledge CCI funds as a security for other purposes than completing one or more projects under a DEQ-approved work plan. 
(b) A CCI entity must complete an independent financial audit of CCI funds for each year in which it holds CCI funds  and review the auditor relationship every five years . 
(3) Use of CCI funds. A CCI entity may only spend CCI funds for the uses specified in OAR 340-271-
0900(2). The expenditures of CCI funds must conform to the CCI’s work plan approved by DEQ under 
section (4) of this rule.  
(4) Work Plan.  
(a) A CCI entity must submit its proposed work plan to DEQ for review and approval. The period of the work plan will normally be a calendar year, unless otherwise specified in the agreement between DEQ and the CCI entity. A CCI entity must obtain DEQ approval of the work plan prior to committing or 
expending CCI funds for the period of the work plan. The first work plan must be submitted within 60 90 
days of the date on which the CCI entity has received at least $5 million in CCI funds from covered fue l 
supplier s.entered into a written agreement with DEQ described in OAR 340-271-0920(2). Each subsequent work plan must be submitted no later than 30 days prior to the end of the current work plan 
period.  
(b) The work plan must include:  
(A) A description of the project(s) or project type(s) the CCI entity expects to support with CCI funds 
during the period of the work plan, and how the project(s) or project type(s) support each of the purposes 
of CCIs described in OAR 340- 271-0900(1)(b) t hrough (e);  
(B) A description of how the project(s) or project type(s) will benefit communities in Oregon, including 
description of the potential locations of communities or regions of Oregon in which projects may be 
implemented or a description of how locations may be selected;  
(C) A description of how each project or project type would benefit environmental justice communities in 
Oregon;  
(D) A description of the methodology that the CCI entity is using to estimate the reductions in 
anthropogenic greenhouse gas emissions that will result from the project(s) or project type(s) in the work 
plan, along with an estimate of the anticipated reduc tions during the period of the work plan. The 
methodology must be sufficient to allow DEQ to perform the necessary calculations in a program review according to OAR 340 -271-8100;  
(E) A description of the methodology that the CCI entity is using to estimate the reductions in other air contaminant emissions that will result from the project(s) or project type(s) in the work plan, along with an estimate of the anticipated reductions d uring the period of the work plan;  
(F) The name and contact person’s contact information of subcontractors that will be involved in any 
project activities during the period of the work plan; and 
(G) The estimated total budget for the period of the work plan. CCI funds must be listed separately from 
any other funds, as applicable. This must separately include the following:  
(i) All costs related to project implementation, listed separately for groups of project(s) or project type(s), including but not limited to personnel costs and materials costs; and  
(ii) Administrative costs related to the project implementation and meeting the requirements of this rule.  
(c) A CCI entity may request DEQ approval of modifications to a DEQ -approved work plan by 
submitting modifications to the information described in subsection (b). The CCI entity must obtain DEQ 
approval of any modification to a work plan prior to beginning work according to a modified work plan.  
(d) DEQ will review each submitted work plan to ensure that it meets the requirements of this section. 
DEQ will inform the CCI entity either that the submitted work plan is complete or that additional specific 
information is required to make the work plan complete. If the work plan is incomplete, DEQ will not 
consider the work plan further until the CCI entity provides the additional information requested by DEQ. DEQ will consider the following in its review:  
(A) The overall ability of the CCI entity to conduct work according to the work plan;  
(B) Whether following the work plan is reasonably likely to reduce anthropogenic greenhouse gas 
emissions in Oregon by an average of at least one MT CO2e per CCI credit distributed by DEQ based on 
CCI fund contributions to the CCI entity;  (C) Whether the work plan is consistent with the purposes of CCIs described in OAR 340-271-0900; and 
(D) Input from the equity advisory committee described in OAR 340-271-0950 and from any other 
relevant experts selected by DEQ.  
(5) Annual report. Date of submission of annual report to be determined  in written agreement  as described 
in OAR  340- 271-0920 (2). A CCI entity must submit to DEQ an annual report by March 31 each year that 
describes its CCI -related activities and finances for the preceding calendar year, including:  
(a) The following information related to CCI funds received, held, or spent during the year: 
(A) Each financial statement for the account(s) where CCI funds were held and the results of the CCI 
entity’s most recent independent financial audit;  
(B) The date, amount of CCI funds accepted, and as applicable, the name of the covered fuel supplier for each separate contribution received;  
(C) Total CCI fund interest accrual;  
(D) Total CCI funds spent, including separate totals of: 
(i) CCI funds spent on each project, including but not limited to personnel costs and materials costs; and 
(ii) Administrative costs related to the project, including project development, and implementation and 
meeting the requirements of this rule;  
(E) Total CCI funds the CCI entity holds that remain unspent as of the end of the year; and 
(F) Total non -CCI funds spent on implementation of each project or project type, as applicable; 
(b) The following information related to implementation progress of project(s) or project type(s) during 
the year:  
(A) Documentation of work completed or progress made on each project or project type, including the number of projects completed of each project type, as applicable; 
(B) A summary of project outcomes. This must include estimated annual greenhouse gas emissions 
reductions in metric tons of CO2e and non- greenhouse gas air contaminant emissions reductions in metric 
tons of the applicable air contaminant that are anticipat ed to be achieved from any project(s) completed 
during the year. Emissions reductions must be estimated using the methodology included in the applicable work plan. Emissions reductions may be reported by individual project or may be grouped by project type, if the CCI entity can provide sufficient information to demonstrate that the emissions reductions of 
multiple projects of the same type are comparable; and  
(C) A description of work that occurred compared to the most recently approved work plan or modified 
work plan. If projects were not implemented as planned, the CCI entity must describe the reason for delay 
and must describe any steps that may be taken to work to remedy the delay or prevent similar delays in 
subsequent years; and  
(c) A copy of the CCI entity’s most recent IRS form 990. 
(6) Establish ing and maintaining efforts to engage and involve environmental justice communities in the 
design , administration, and implementation of the funds. (7) Paying an annual fee to DEQ for CCI administration and oversight. 
(a) A CCI entity must pay an annual fee by February 1 each year of 5%  of all CCI funds received from 
covered fuel suppliers during the previous calendar year.  
(86) Maintaining CCI entity eligibility.  
(a) A CCI entity must notify DEQ in writing as soon as possible, and not later than 30 15 days after it no 
longer meets any of the eligibility criteria for approval in OAR 340-271-0910(1), or if it is in violation of 
any of the requirements of this rule. 
(b) A CCI entity must notify DEQ in writing as soon as possible and not later than 30 15 days after any 
changes are made to the administrative processes or financial controls that keep CCI funds separate from 
other funds; 
(c) A CCI entity must notify DEQ in writing as soon as possible and not later than 30 15 days after any 
changes related to key individuals or their assigned work associated with being a CCI entity. 
(d) A CCI entity must notify DEQ in writing as soon as possible and not later than 30 15 days after any 
finding of a violation related to federal or state labor laws by the CCI entity or by an approved 
subcontractor; 
(e) Upon written request by DEQ, a CCI entity must provide to DEQ in a reasonably timely manner any and all information that DEQ reasonably requires for evaluating the CCI entity’s continued compliance 
with the requirements of this division, including the criteria for approval as a CCI entity and eligible 
projects.  
(7) V oluntary withdrawal from DEQ approval. An approved CCI entity may request to withdraw 
voluntarily its approval by providing a written notice to DEQ requesting such withdrawal. 
(8) Rollover of CCI funds. If DEQ approval is suspended, revoked, or voluntarily withdrawn, DEQ may 
require the entity to transfer any unspent uncommitted  CCI funds to another CCI entity and provide proof 
to DEQ that the transfer has been made. If a transfer of funds is required, DEQ will determine allowable 
expenses for the transition of projects and the remaining funds.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040 Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045 History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
340-271-0950  
Equity Advisory Committee and Environmental Justice Community Engagement 
(1) DEQ will appoint and convene an equity advisory committee to assist DEQ with: 
(a) Review of:  
(A) Applications to become a CCI entity;  
(B) Requests for DEQ approval of work plans; and 
(C) Other submittals by CCI entities that require DEQ review; and  (b) Outreach to environmental justice communities.  
(2) Advisory committee member selection. 
(a) DEQ may solicit applications from residents of the state of Oregon to be appointed to serve as 
members of the equity advisory committee and may select the committee from those applications.  
(b) DEQ will prioritize convening an advisory committee that represents multiple areas of expertise, interest, or lived experience in the following areas:  
(A) Environmental justice;  
(B) Impacts of climate change on communities in Oregon;  
(C) Impacts of air contamination on communities in Oregon; and 
(D) Greenhouse gas emissions reductions and climate change.  
(c) DEQ will prioritize convening an advisory committee that represents multiple regions across Oregon.  
(d) DEQ may appoint each committee member to a term of up to three years. 
(3) In addition to outreach conducted by CCI third party entities to environmental justice communities 
throughout Oregon, DEQ will conduct outreach to these communities to seek input on projects that may 
be of interest to those communities. The equity advisory committee will consider this input when assisting DEQ as described in section (1). DEQ will consider this input when making approval decisions regarding CCI entities, projects and project types, and work plans. 
(4) DEQ will offer guidance and conduct outreach to support the equity advisory committee and 
environmental justice communities in Oregon in understanding the provisions related to CCIs. 
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040 
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045 History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
340-271-0990  
Recordkeeping Requirements for Community Climate Investment Entities  
(1) A CCI entity must retain the following records, in paper or electronic format, for the duration of its 
approval as a CCI entity and for a period of at least seven years following the date of transaction or 
submission to DEQ:end of its approval:  
(a) A copy of each application submitted to DEQ for approval as a CCI entity; 
(b) A copy of any invoice or documentation of monetary payment related to CCI funds; 
(c) A statement from a financial institution showing any payments related to CCI funds; 
(d) A copy of any receipt provided to a covered fuel supplier that makes a CCI payment to the CCI entity; 
(e) A copy of any work plan submitted to DEQ by the CCI entity; 
(f) A copy of any report or written request for approval submitted to DEQ by the CCI entity; (g) All other information and documentation related to CCI funds; 
(h) All records related to any implemented projects; and  
(i) All records and information supporting estimates of greenhouse gas emissions reductions and other air 
contaminant emissions reductions achieved from implemented projects or project types. 
(2) CCI entities must make records required to be retained in this rule available to DEQ upon request. 
DEQ will specify the date by which the CCI entity must fulfill a records request from DEQ.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040 Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045 
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
340-271-8100  
Program Review  
(1) DEQ will report to the EQC on community climate investments. DEQ will submit the first report to 
the EQC by August 30, 202 74 and every two years thereafter. DEQ will share each report with current 
members of the equity advisory committee after submission to the EQC. Each community climate investment report will include:  
(a) A review of community climate investments, including:  
(A) CCI credits distributed to covered fuel suppliers; 
(B) CCI credits used by covered fuel suppliers to demonstrate compliance; 
(C) Estimates of annual greenhouse gas emissions reductions that are anticipated to be achieved by 
completed projects that CCI entities have reported to DEQ by March 31 of the year DEQ is reporting to 
the EQC;  
(D) Estimates of annual non- greenhouse gas air contaminant emissions reductions that are anticipated to 
be achieved by completed projects that CCI entities have reported to DEQ by March 31 of the year DEQ is reporting to the EQC; 
(E) Calculation of the average anthropogenic greenhouse gas emissions reductions achieved per CCI 
credit distributed based on (A) and (C) and whether reductions of approximately one MT CO2e or more 
of anthropogenic greenhouse gas emissions for the average CCI credit distributed by DEQ was achieved; and 
(F) Description of community benefits achieved; and 
(b) DEQ’s recommendations regarding any necessary or desirable changes to the CPP provisions relating 
to CCIs, including, without limitation, recommendations on changes to the CCI credit contribution 
amounts described in Table 7 in OAR 340-271-9000 necessary to assure that the use of CCI funds i s 
reducing anthropogenic greenhouse gas emissions in Oregon by an average of at least one MT CO2e per CCI credit distributed by DEQ, as well as recommendations on how to best achieve the purposes of CCIs 
described in OAR 340- 271-0900, if applicable. (2) DEQ will engage internal and external auditors if necessary to conduct an audit of CCI program and 
report to EQC on findings. If necessary, DEQ will consider recommending rule changes to the CCI 
program.  
(32) DEQ will report to the EQC on implementation of the Climate Protection Program. DEQ will submit 
the first report to the EQC five years after the date of adoption of this division and at least once every five 
years thereafter. Each program review report will include:  
(a) A review of the Climate Protection Program, including: 
(A) Summary of covered fuel suppliers’ demonstrations of compliance for compliance periods that have 
occurred since program start, including:  
(i) Caps for each year and compliance period;  
(ii) Compliance obligations for each year and compliance period;  
(iii) Compliance instruments submitted for each compliance period; and  
(iv) CCI credits submitted for each compliance period;  
(B) Summary of the distribution of compliance instruments, including the size of the compliance instrument reserve at the start and end of each program year that has occurred and compared to Table 3 in OAR 340 -271-9000; 
(C) Summary of activity relating to trading of compliance instruments for each program year that has occurred;  
(D) Summary of covered stationary source requirement activities that have occurred since program start or since the most recently submitted report to the EQC, whichever is later, including:  
(i) The number of existing stationary sources that DEQ has notified in writing that must complete a BAER assessment;  
(ii) The number of BAER assessments received or anticipated to be received by DEQ;  
(iii) A brief summary of any BAER order issued and the required actions that must be taken by the owner or operator of a covered stationary source that has been issued a BAER order; 
(iv) A brief summary of the status of any covered stationary source activities regarding implementation of 
requirements in a BAER order; and 
(v) Review of any changes in annual covered emissions from current covered stationary sources to assess 
whether covered emissions are being reduced;  
(E) Whether emission reductions from covered stationary sources align with the priorities described in 
section (3). This will be assessed in program reviews beginning after 2029.  
(F) A current list of covered entities by name and whether each is a covered fuel supplier or covered stationary source; and  
(G) Description of any enforcement actions taken that involved civil penalties, if applicable; and (b) DEQ’s recommendations regarding any potential changes to the CPP including, for example and 
without limitation, recommendations regarding potential changes to best achieve the goals described in section (3) for covered stationary sources.  
(3) CPP goals for covered stationary sources described in OAR 340- 271-0110(5) are to:  
(a) Reduce total covered emissions from covered stationary sources; and  
(b) Reduce total covered emissions from covered stationary sources that are the result of use of solid or 
gaseous fuels by 50 percent by 2035 from the average of 2017 through 2019 emissions.  
(4) If the average annual statewide retail cost of gasoline, diesel or natural gas in Oregon increases year -
over-year by an amount that is more than 20 percent higher than the average change in cost for the same 
fuel over the same period in Washington, Ida ho, and Nevada, DEQ will investigate the cause(s) of the 
increase and report to the EQC regarding whether changes to the rules in this division should be made that 
would ameliorate a relative increase in costs in Oregon. If necessary, DEQ will consider recommending rule changes, such as changes to caps and distribution of additional compliance instruments, changes to 
the compliance instrument reserve, or changes to the allowable usage of CCI credits.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-8110  
Deferrals  
DEQ may extend reporting or demonstration of compliance deadlines as DEQ deems necessary or 
appropriate and will issue written notice of any extensions.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-8120  
Severability  
Each requirement of this division is severable, and if any requirement of this division is held invalid, the remainder of the requirements of this division will continue in full force and effect.  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040  
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 468A.045  
History:  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021  
340-271-9000  
Tables  (1) Table 1. Thresholds for applicability described in OAR 340-271-0110(3). 
(2) Table 2. Oregon Climate Protection Program caps. 
(3) Table 3. Compliance instrument reserve size.  
(4) Table 4. Compliance instrument distribution to covered fuel suppliers that are local distribution 
companies.  
(5) REPEALED effective November 16, 2023. 
(6) Table 6. Covered fuel supplier allowable usage of community climate investment credits to 
demonstrate compliance as described in OAR 340 -271-0450(3). 
(7) Table 7. CCI credit contribution amount. 
[ED. NOTE: To view attachments referenced in rule text, click here to view rule.]  
Statutory/Other Authority: ORS 468.020, 468A.025 & 468A.040 
Statutes/Other Implemented: ORS 468.020, 468A.025, 468A.040, 468.035, 468A.010, 468A.015 & 
468A.045 
History:  
DEQ 17 -2023, amend filed 11/16/2023, effective 11/16/2023  
DEQ 27 -2021, adopt filed 12/16/2021, effective 12/16/2021 
  
OAR 340-271-9000  
Table 1   
Thresholds for    
applicability described in OAR 340 -271-0110(3)   
  
Applicability 
determination calendar 
year(s)    Threshold for 
applicability to 
compare to annual 
covered emissions  Calendar year a 
person becomes a 
covered fuel supplier   
Any year from 2018 through 2022   200,000 MT CO2e   2022   
2023   200,000 MT CO2e   2023   
2024   200,000 MT CO2e   2024   
Any year from 2018 2021  through 
2025   100,000 MT CO2e   2025  
2026   100,000 MT CO2e   2026   
2027   100,000 MT CO2e   2027   
Any year from 2024 through 2028   50,000 MT CO2e   2028   
2029   50,000 MT CO2e   2029   
2030   50,000 MT CO2e   2030   
Any year from 2027 through 2031   25,000 MT CO2e   2031   
2032   25,000 MT CO2e   2032   
Each subsequent year   25,000 MT CO2e   Each subsequent year   
  
  
OAR 340-271-9000   
  
Table 2   
Oregon Climate Protection Program caps   
Calendar year   Cap  
2022   28,081,335   
2023   27,001,283   
2024   25,921,232   
2025   25,763,209   
2026   24,637,057   
2027   23,510,904   
2028   23,013,190   
2029   21,842,149   
2030   20,671,108   
2031   19,910,424   
2032   18,688,088   
2033   17,465,752   
2034   16,243,416   
2035   15,021,080   
2036   14,219,956   
2037   13,418,831   
2038   12,617,707   
2039   11,816,583   
2040   11,015,459   
2041   10,214,334   
2042   9,413,210   
2043   8,612,086   
2044   7,810,962   
2045   7,009,837   
2046   6,208,713   
2047   5,407,589   
2048   4,606,465   
2049   3,805,340   
2050 and each calendar year thereafter   3,004,216   
  
 
OAR 340-271-9000   
  
Table 3   
Compliance instrument reserve size   
Calendar year(s) of the cap   Reserve size   
2022   400,000 compliance instruments   
20253 through 2030   800,000 compliance instruments   
2031 through 2040   500,000 compliance instruments   
2041 and each calendar year thereafter   250,000 compliance instruments   
 
   
OAR 340 -271-9000   
  
Table 4   
Compliance instrument distribution to covered fuel suppliers   
that are local distribution companies   
Calendar year   Compliance 
instruments to 
distribute to 
Avista Utilities   Compliance 
instruments to 
distribute to 
Cascade Natural 
Gas Corporation  Compliance 
instruments to 
distribute to 
Northwest 
Natural Gas 
Company   
2022   703,373   743,707   5,759,972   
2023   676,320   715,103   5,538,434   
2024   649,267   686,499   5,316,897   
2025   622,214   657,895   5,095,359   
2026   595,161   629,291   4,873,822   
2027   568,109   600,687   4,652,285   
2028   541,056   572,083   4,430,747   
2029   514,003   543,478   4,209,210   
2030   486,950   514,874   3,987,673   
2031   459,897   486,270   3,766,135   
2032   432,845   457,666   3,544,598   
2033   405,792   429,062   3,323,061   
2034   378,739   400,458   3,101,523   
2035   351,686   371,854   2,879,986   
2036   332,930   352,021   2,726,387   
2037   314,173   332,189   2,572,787   
2038   295,416   312,357   2,419,188   
2039   276,660   292,525   2,265,589   
2040   257,903   272,693   2,111,990   
2041   239,147   252,860   1,958,390   
2042   220,390   233,028   1,804,791   
2043   201,633   213,196   1,651,192   
2044   182,877   193,364   1,497,593   
2045   164,120   173,532   1,343,993   
2046   145,364   153,699   1,190,394   
2047   126,607   133,867   1,036,795   
2048   107,850   114,035   883,196   
2049   89,094   94,203   729,596   
 2050 and each calendar 
year thereafter  70,337  74,371  575,997   
 
  
OAR 340-271-9000   
  
Table 6   
Covered fuel supplier allowable usage of community climate   
investment credits to demonstrate compliance as   
described in OAR 340-271-0450 (3)  
Compliance period   Allowable percentage of total 
compliance obligation(s) for which 
compliance may be demonstrated 
with CCI credits   
Compliance period 1 (202 52 through 202 47)  150%  
Compliance period 2 (2025 through 2027)   15%  
Compliance period 3 2 (2028 through 2030), 
and for each compliance period thereafter   20%  
 
OAR 340-271-9000   
  
Table 7  
CCI credit contribution amount   
Effective date   CCI credit contribution amount in 
2021 2024 dollars, to be adjusted 
according to OAR 340-2 71 -
0820 (3)  
March 1, 2023  $107  
March 1, 2024  $108  
March 1, 2025  $10929 
March 1, 2026  $11030 
March 1, 2027  $11131 
March 1, 2028  $11232 
March 1, 2029  $11333 
March 1, 2030  $11434 
March 1, 2031  $11535 
March 1, 2032  $11636 
March 1, 2033  $11737 
March 1, 2034  $11838 
March 1, 2035  $11939 
March 1, 2036  $1240 
March 1, 2037  $1241 
March 1, 2038  $1242 
March 1, 2039  $1243 
March 1, 2040  $1244 
March 1, 2041  $1245 
March 1, 2042  $1246 
March 1, 2043  $1247 
March 1, 2044  $1248 
March 1, 2045  $1249 
March 1, 2046  $1350 
March 1, 2047  $1351 
March 1, 2048  $1352 
March 1, 2049  $1353 
March 1, 2050  $1354 
 
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