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The origins of the Oregon Clean Fuels Program (CFP) date back to 2009 when Oregon passed HB 2186, providing the foundations for a program to reduce the carbon intensity of Oregon’s transportation fuels. This initial program directed the Oregon Department of Environmental Quality (DEQ) to establish the structure of the program. During the rulemaking process, concerns were raised that implementation of the program would not have enough of a runway as it was initially intended to sunset in 2015. Addressing this issue, in 2015, SB 324 was passed which extended the program and allowed the DEQ to fully implement the CFP starting in 2016. The official rules for the program are codified in regulation in the Oregon Administrative Rules Chapter 340 Division 253 (OAR 340-243). The key goal of the CFP is to reduce the average amount of lifecycle greenhouse gas emissions per unit of energy by a minimum of 10% below 2015 levels by 2025. The goal applies to the average of all transportation fuels used in Oregon, and therefore is technology neutral.
The program intends to emulate the LCFS program in California, having adopted similar processes, standards, and eligibility criteria.
States Eligible:
Tracking Registry
Compliance Year
Pathway Registration
The CFP applies to the sale or supply of any transportation fuel in Oregon. Fuel producers and importers are the primary regulated parties. Regulated parties that exceed the maximum CI compliance limit may meet compliance by purchasing credits that are issued to regulated parties with an average CI that is below the maximum CI compliance limit. The CFP enforces a declining CI curve every year to ensure the continuous reduction of the transportation fuel industry’s environmental impact.
Gasoline and diesel fuels are separated by two different CI compliance averages.
| Compliance Year | Carbon Intensity Reduction | Gasoline (gCO2e/MJ) | Diesel (gCO2e/MJ) |
|---|---|---|---|
| 2016 | 0.25% | 98.37 | 99.39 |
| 2017 | 0.50% | 98.13 | 99.14 |
| 2018 | 1.00% | 97.66 | 98.61 |
| 2019 | 1.50% | 96.59 | 97.26 |
| 2020 | 2.50% | 95.61 | 96.27 |
| 2021 | 3.50% | 94.63 | 95.29 |
| 2022 | 5.00% | 93.15 | 93.81 |
| 2023 | 6.50% | 91.68 | 92.32 |
| 2024 | 8.00% | 90.21 | 90.84 |
| 2025 | 10.00% | 88.25 | 88.87 |
From 2016 to 2019, spot market pricing for OR CFP credits has ranged from $45 to $170 per credit.
The value of a credit is determined by supply and demand dynamics within the market. The market also holds an annual Credit Clearance Market, which allows obligated parties to come into compliance with the clean fuel standard in the event that they are short on their compliance obligation for the year. The CCM places a price cap on credits that essentially acts as a market cap for all credits sold throughout the year.
As of the current regulation, credits do not expire.
Regulated parties must report using the CFP Online Portal on a quarterly schedule. Quarterly data must be uploaded to the registry within 45 days of the end of each quarter.
