Or. Admin. Code § 340-253-0330

Current through Register Vol. 63, No. 12, December 1, 2024

Section 340-253-0330 - Credit Generators: Providers of Electricity

(1) Applicability. This rule applies to providers of electricity used as a transportation fuel.

(2) For residential charging. For electricity used to charge an electric vehicle at a residence, subsections (a) and (b) determine the person who is eligible to generate credits.

(a) Electric Utility. In order to generate credits for the following year, an electric utility must notify DEQ by October 1 of the current year whether it will generate credits or designate an aggregator to act on its behalf. The utility or its aggregator must have an active registration approved by DEQ under OAR 340-253-0500. Once a utility has made a designation under this section that designation will remain in effect unless the utility requests a change in writing to DEQ.

(b) Backstop and Incremental Aggregators. If an electric utility does not register or designate an aggregator under subsection (a), then backstop and incremental aggregators are eligible to claim any credits that the utility could have generated for the following year, as provided in sections (10) and (11), as applicable. The backstop aggregator may claim any base credits and the incremental aggregator may claim any incremental credits.

(3) For non-residential charging. For electricity used to charge an electric vehicle at non-residential locations, such as in public, for a fleet, at a workplace, or at multi-family housing sites, subsections (a) through (c) determine the person who is eligible to generate credits.

(a) Owner or service provider of the electric-charging equipment. The owner or service provider of the electric-charging equipment may generate the credits. Only one entity may generate credits from each piece of charging equipment.

(b) Electric Utility. If the owner or service provider of the electric-charging equipment does not generate the credits, then an electric utility or an aggregator designated to act on the utility's behalf is eligible to generate the credits. The utility or its aggregator must have an active registration approved by DEQ under OAR 340-253-0500. Once a utility has made a designation under this section that designation will remain in effect unless the utility requests a change in writing to DEQ.

(c) Backstop and Incremental Aggregators. If an electric utility does not register or designate an aggregator under subsection (b), then backstop and incremental aggregators are eligible to claim any credits that the utility could have generated for the following year, as provided in sections (10) and (11), as applicable. The backstop aggregator may claim any base credits and the incremental aggregator may claim any incremental credits.

(4) Public Transit. For electricity used to power fixed guideway vehicles such as light rail systems, streetcars, and aerial trams, or transit buses, a transit agency may generate the credits or designate an aggregator. The transit agency or aggregator must have an active registration approved by DEQ under OAR 340-253-0500.

(5) Forklifts. For electricity used to power forklifts, the forklift fleet owner or fleet operator may generate the credits or designate an aggregator. Only one entity may generate credits from each piece of equipment. The fleet owner has precedence to generate credits or designate an aggregator.

(6) Transportation Refrigeration Units. The fleet owner or fleet operator of the electric transportation refrigeration unit may generate credits, or designated an aggregator, for electricity used in transport refrigeration units. Only one entity may generate credits from each piece of equipment. The fleet owner has precedence to generate credits or designate an aggregator.

(7) Electric Cargo Handling Equipment. The owner or service provider of the electric-charging equipment may generate the credits or designate an aggregator. Only one entity may generate credits from each piece of charging equipment.

(8) Electric Ocean-Going Vessel powering. The owner of the equipment that provides electrical power from the shore to the vessel is eligible to generate credits or designate an aggregator.

(9) Responsibilities to generate credits. Any person specified under sections (2) through (8) may generate clean fuel credits by complying with the registration, recordkeeping and reporting requirements of this division.

(10) Backstop Aggregator. The backstop aggregator that serves as the credit generator of electricity credits that have not been claimed by an electric utility, an aggregator designated by an electric utility, or an owner or service provider of electric charging equipment under sections (2) and (3).

(a) To qualify to submit an application to be a backstop aggregator, an organization must:

(A) Be an organization exempt from federal taxation under section 501(c)(3) of the U.S. Internal Revenue Code;

(B) Complete annual independent financial audits.

(b) An entity that wishes to be the backstop aggregator must submit an application with DEQ that includes:

(A) A description of the mission of the organization and how being a backstop aggregator fits into its mission;

(B) A description of the experience and expertise of key individuals in the organization who would be assigned to work associated with being a backstop aggregator;

(C) A plan describing:

(i) How the organization will promote transportation electrification statewide or in specific utility service territories, if applicable;

(ii) Any entities that the organization might partner with to implement its plan;

(iii) How the organization plans to use the revenue from the sale of credits, which may include, without limitation, programs that provide incentives to purchase electric vehicles or install electric vehicle chargers, opportunities to educate the public about electric vehicles, and anticipated costs to administer its plan; and

(iv) The financial controls that are, or will be put, in place to segregate funds from the sale of credits from other monies controlled by the organization.

(D) Its last three years of independent financial audits and I.R.S. form 990s, and proof that the I.R.S. has certified them as qualifying as an exempt organization under 501(c)(3);

(c) Initial applications to be a backstop aggregator are due to DEQ no later than March 15, 2018, to be eligible to be the backstop aggregator beginning in 2018. If the EQC does not approve the designation of a backstop aggregator under subsection (e), then DEQ may set a new deadline for applications if it decides to undertake a new selection process.

(d) Applications will be evaluated by DEQ with the assistance of relevant experts selected by DEQ. DEQ will evaluate applications based on the likelihood that the applicant will maximize the benefits from the credits it receives to expand the use of alternative fuel vehicles and reduce greenhouse gas emissions from the transportation sector in Oregon.

(e) DEQ may recommend an organization be designated as the initial backstop aggregator to the EQC by May 31, 2018. If DEQ does not recommend an organization to be the backstop aggregator or the EQC does not approve DEQ's recommendation, then DEQ may undertake a new selection process at a later date under the same criteria in subsections (b) and (d).

(f) Following EQC approval of an organization to be the backstop aggregator, DEQ and the organization may enter into a written agreement regarding its participation in the program. A written agreement must be in place prior to the backstop aggregator registering an account in the CFP Online System and receiving credits for the first time. The backstop aggregator must:

(A) By March 31st of each year, submit a report that summarizes the previous year's activity including:

(i) How much revenue was generated from the credits it received;

(ii) A description of activities including the status of each activity, where each activity took place, and each activity's budget, including administrative costs, and an estimate of its outcomes; and

(iii) The results of its most recent independent financial audit.

(B) Maintain records and make them available upon request by DEQ, including records required to be maintained under OAR 340-253-0600 and, in addition, any records relating to its application, the programs it operates using the proceeds from the sale of credits under this program, and any of the organization's financial records.

(g) If DEQ determines that a backstop aggregator is in violation of this division or the agreement that it enters into with DEQ to be the backstop aggregator, DEQ may rescind its designation and solicit applications to select a new backstop aggregator.

(h) If backstop aggregator wishes to terminate its agreement with DEQ, then DEQ may solicit applications to select a new backstop aggregator.

(i) After a backstop aggregator has been in place for three years, DEQ may hold a new selection process to appoint a backstop aggregator for future years. Unless DEQ has rescinded an organization as backstop aggregator under subsection (g), the current backstop aggregator may apply to be re-designated as the backstop aggregator for future years.

(11) Incremental credits.

(a) Other than for residential charging, incremental credits may be claimed by the eligible credit generator or its aggregator identified in sections (3)-(8) of this rule or the incremental aggregator.

(b) For residential charging, the following entities may claim incremental credits:

(A) An electric utility claiming base credits for the same vehicles under subsection (2)(a) or its designated aggregator if it notifies DEQ by June 15 or December 15 that it wishes to begin generating incremental credits starting with the charging covered by the next period of residential electric vehicle charging. A utility's election remains in place until it informs DEQ otherwise; or

(B) Incremental Aggregator. The incremental aggregator that serves as the credit generator of incremental electricity credits that have not been claimed by an electric utility, an aggregator designated by an electric utility, or the eligible credit generator under sections (3)-(8). The incremental aggregator will be selected as provided in subsection (c).

(c) Selection of the incremental aggregator.

(A) To qualify to submit an application to be the incremental aggregator, an organization must:

(i) Be an organization exempt from federal taxation under section 501(c)(3) of the U.S. Internal Revenue Code; and

(ii) Complete annual independent financial audits.

(B) An entity that wishes to be the incremental aggregator must submit an application with DEQ that includes:

(i) A description of the mission of the organization and how being the incremental aggregator fits into its mission;

(ii) A description of the experience and expertise of key individuals in the organization who would be assigned to work associated with being the incremental aggregator;

(iii) How the organization plans to promote transportation electrification statewide in an equitable manner and conduct programs on a statewide basis;

(iv) The financial controls that are, or will be put, in place to segregate funds from the sale of credits from other monies controlled by the organization; and

(v) Its last three years of independent financial audits and I.R.S. form 990s, and proof that the I.R.S. has certified them as qualifying as an exempt organization under 501(c)(3).

(C) Initial applications to be the incremental aggregator are due to DEQ no later than July 1, 2021, to be eligible to be selected by the EQC to be the incremental aggregator beginning with 2020 residential EV crediting. If the EQC does not approve the designation of an incremental aggregator under subsection (11)(e), then DEQ may set a new deadline for applications if it decides to undertake a new selection process.

(D) Applications to be the incremental aggregator will be evaluated by DEQ in partnership with the equity advisory committee selected under subsection (11)(j). DEQ will evaluate applications based on the likelihood that the applicant will use the revenue from the credits it receives to advance transportation electrification statewide with a focus on actions that will help vulnerable populations and communities impacted by air pollution and climate change.

(E) Based on DEQ's review of applications to be the incremental aggregator, DEQ may recommend that an applicant organization be designated as the initial incremental aggregator to the EQC by August 15, 2021. If DEQ does not recommend an organization to be the incremental aggregator or the EQC does not approve DEQ's recommendation, then DEQ may undertake a new selection process at a later date under the same process and criteria in paragraphs (11)(c)(A) through (D).

(F) Following EQC approval of an organization to be the incremental aggregator, DEQ and the organization may enter into a written agreement regarding the selected organization's participation in the program. In addition to the requirements described in paragraph (11)(c)(K), a written agreement must be in place prior to the incremental aggregator receiving credits for the first time. The incremental aggregator must:

(i) By March 31st of each year, submit a report that summarizes the previous year's activity including:

(I) How much revenue was generated from the credits it received;

(II) A description of activities including the status of each activity, where each activity took place, and each activity's budget, including administrative costs, and an estimate of its outcomes; and

(III) The results of its most recent independent financial audit; and

(ii) Maintain records and make them available to DEQ upon request by DEQ, including records required to be maintained under OAR 340-253-0600 and, in addition, any records relating to its application, the programs it operates using the proceeds from the sale of credits under this program, and any of the organization's financial records.

(G) If DEQ determines that an incremental aggregator is in violation of this division or the agreement that it enters into with DEQ to be the incremental aggregator, DEQ may rescind its designation and solicit applications to select a new incremental aggregator.

(H) If the incremental aggregator wishes to terminate its agreement with DEQ, then DEQ may solicit applications to select a new incremental aggregator.

(I) After an incremental aggregator has been in place for three years, DEQ may hold a new selection process to appoint an incremental aggregator for future years. Unless DEQ has rescinded an organization as incremental aggregator under paragraph (11)(c)(G), the current backstop aggregator may apply to be re-designated as the incremental aggregator for future years.

(J) Equity advisory committee. DEQ will appoint and convene an advisory committee to help the agency design projects and programs for the incremental aggregator to implement that prioritize the revenue for transportation electrification projects that equitably distribute benefits and address the needs and interests of impacted communities that are the most vulnerable to the adverse effects of transportation air pollution and climate change. The committee will also advise DEQ in its review of reports on utility spending, and:

(i) The committee will advise DEQ in:

(I) The selection of the incremental aggregator;

(II) Establishing criteria that will be used to set priorities to be carried out by the incremental aggregator;

(III) Developing the annual work plan for the incremental aggregator;

(IV) Identifying areas of need that should be prioritized by utility projects and programs paid for by revenue from CFP incremental credit sales in order to ensure equitable outcomes and benefits;

(V) Reviewing the utility reports submitted under OAR 340-253-0640(9); and

(VI) Reviewing the performance of the incremental aggregator;

(ii) DEQ will solicit applications for residents of the state of Oregon to be appointed to the equity advisory committee. DEQ will seek representatives with the following interests and areas of expertise as well as representatives from the following communities:

(I) Transportation and transportation electrification; and

(II) Environmental Justice Communities

(iii) DEQ will solicit applications to serve on the equity advisory committee in May 2021 and may select the committee from those applicants. Committee members may serve terms of three years and DEQ may annually solicit applications and make additional selections to serve on the committee.

(K) The incremental aggregator must consult with DEQ and the equity advisory committee to propose an annual workplan to guide its spending for the next year, subject to approval by DEQ. DEQ will not award credits to the incremental aggregator unless DEQ has approved such workplan and the incremental aggregator has followed such workplan. The incremental aggregator and DEQ may mutually agree to modify the annual workplan at any time, after consultation with the equity advisory committee. Projects to be undertaken by the incremental aggregator may include:

(i) Electrification and battery swap programs for school or transit buses;

(ii) Electrification of drayage trucks;

(iii) Investment in public EV charging infrastructure and EV charging infrastructure in multi-family residences;

(iv) Investment in electric mobility solutions, such as EV sharing and ride-hailing programs;

(v) Multilingual marketing, education, and outreach designed to increase awareness and adoption of EVs and clean mobility options that includes information about their benefits to individuals, the environment, and human health;

(vi) Additional rebates and incentives for low-income individuals beyond existing local, federal and state rebates and incentives, for:

(I) Purchasing or leasing new or previously owned EVs;

(II) Installing EV charging infrastructure in residences and related electrical work;

(III) Promoting the use of public transit and other clean mobility; and

(IV) Off-setting costs for residential or non-residential EV charging; and

(vii) Other projects that promote transportation electrification in or for Environmental Justice Communities and that are reviewed by the equity advisory committee and approved by DEQ. Individuals and organizations may submit proposals for such projects to DEQ for consideration, and the application must include:

(I) A complete description of the project, the demonstration that the project promotes transportation electrification in Environmental Justice, or that the project provides increased access to electric transportation for those communities; and

(II) Evidence that the project was developed in coordination with local environmental justice advocates, local community-based organizations, local units of government, or multiple such entities.

Or. Admin. Code § 340-253-0330

DEQ 8-2012, f. & cert. ef. 12-11-12; DEQ 3-2015, f. 1-8-15, cert. ef. 2/1/2015; DEQ 13-2015, f. 12-10-15, cert. ef. 1/1/2016; DEQ 27-2017, amend filed 11/17/2017, effective 11/17/2017; DEQ 199-2018, amend filed 11/16/2018, effective 1/1/2019; DEQ 1-2019, minor correction filed 01/03/2019, effective 1/3/2019; DEQ 7-2021, amend filed 03/26/2021, effective 3/26/2021; DEQ 17-2022, amend filed 09/23/2022, effective 1/1/2023

Statutory/Other Authority: ORS 468.020, 468A.266, 468A.268 & 468A.277

Statutes/Other Implemented: ORS 468.020 & ORS 468A.265 through 468A.277