Oregon Administrative Rules › Chapter 345 - DEPARTMENT OF ENERGY, ENERGY FACILITY SITING COUNCIL › Division 24 - SPECIFIC STANDARDS FOR SITING FACILITIES › Section 345-024-0600 - Means of Compliance for Non-Base Load Power Plants

Current through Register Vol. 63, No. 7, July 1, 2024
The applicant may elect to use any of the following means, or
				any combination thereof, to comply with the carbon dioxide emissions standard
				for non-base load power plants or for the incremental carbon dioxide emissions
				from the operation of a base load gas plant with power augmentation
				technology:
(1) Designing and
			 operating the facility to produce electrical and thermal energy sequentially
			 from the same fuel source and using the thermal energy to displace another
			 source of carbon dioxide emissions from fossil fuels that would have otherwise
			 continued to occur. The Council shall adopt site certificate conditions
			 ensuring that the carbon dioxide emissions reduction will be
			 achieved.
(2) Implementing offset
			 projects directly or through a third party, pursuant to OAR 345-024-0680. The
			 Council may adopt site certificate conditions ensuring that the proposed offset
			 projects are implemented by the date specified in the site certificate, but
			 shall not require that predicted levels of avoidance, displacement or
			 sequestration of greenhouse gas emissions be achieved.
(3) Providing offset funds, directly or
			 through a third party, in an amount deemed sufficient to produce the reduction
			 in greenhouse gas emissions necessary to meet the applicable carbon dioxide
			 emissions standard. The applicant or third party shall use the funds as
			 specified in OAR 345-024-0710. The Council shall deem the payment of the
			 monetary offset rate, pursuant to OAR 345-024-0580, to result in a reduction of
			 one ton of carbon dioxide emissions. The Council shall determine the offset
			 funds using the monetary offset rate and the level of emissions reduction
			 required to meet the applicable standard. If the Council issues a site
			 certificate based on this section, the Council may not adjust the amount of the
			 offset funds based on the actual performance of offsets.
(4) Notwithstanding sections (1), (2) or (3),
			 if the certificate holder exceeds the projected gross carbon dioxide emissions
			 calculated under OAR 345-024-0590(4)  during any five-year reporting period
			 described in OAR 345-024-0590(5) and (6), the certificate holder shall offset
			 excess emissions for the specific reporting period according to subsection (a)
			 and shall offset the estimated future excess emissions according to subsection
			 (b). The certificate holder shall offset excess emissions using the monetary
			 path as described in subsection (c) and OAR 345-024-0710  or as approved by the
			 Council.
(a) In determining the excess carbon
			 dioxide emissions that the certificate holder must offset for a five-year
			 period, the Council shall credit the certificate holder with offsets equal to
			 the difference between the carbon dioxide emissions allowed by the site
			 certificate in previous periods and actual emissions, if actual emissions were
			 lower than allowed. Once a certificate holder has used a credit, the
			 certificate holder shall not use it again.
(b) The Council shall specify in the site
			 certificate a methodology for estimating future excess carbon dioxide
			 emissions. The Department of Energy shall calculate estimated future excess
			 emissions. To estimate excess emissions for the remaining period of the deemed
			 life of the facility, the Department shall use the annual average number of
			 hours of operation during the five-year period in which the certificate holder
			 exceeded the estimated gross carbon dioxide emissions described in OAR
			 345-024-0590(5)  and the new and clean heat rate and capacity for the facility,
			 adjusted for the average temperature, barometric pressure and relative humidity
			 at the site during the times of the year when the facility is intended to
			 operate. If the annual average hours exceed 6,600, the Department shall
			 estimate emissions at 100 percent capacity for the remaining period of a deemed
			 30-year life of the facility. At the request of the certificate holder, the
			 Council may, by amendment of the site certificate, use an alternative
			 methodology to estimate future excess carbon dioxide emissions.
(c) The certificate holder shall pay for the
			 net excess carbon dioxide emissions calculated pursuant to subsections (a) and
			 (b) at the monetary path offset rate in real dollars for the quarter and year
			 in which the Council issued the final order that applied the carbon dioxide
			 standard. The Council shall specify in the site certificate the methodology for
			 calculating the real dollar value of the monetary offset rate. The Department
			 shall calculate the net excess carbon dioxide emissions and notify the
			 certificate holder of the amount of the monetary path payment required to
			 offset them. The certificate holder shall pay fully the required amount to the
			 qualified organization within 60 days of notification by the Department of the
			 amount. The certificate holder shall not be eligible for a refund of any
			 monetary path payments due to the calculations in this rule.