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 fuel 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. (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 days of the date on which the CCI entity 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) through (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 reductions 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 during 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. 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 anticipated 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) Maintaining CCI entity eligibility. (a) A CCI entity must notify DEQ in writing as soon as possible, and not later than 30 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 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 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 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) Voluntary 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 CCI funds to another CCI entity and provide proof to DEQ that the transfer has been made. 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