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, 2024 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 is 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 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, Idaho, 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