OAR 340-090-0930: Core Product Category Rule

(1) Methodological Framework. This rule provides the general considerations and technical parameters required for the life cycle evaluation of covered products required of large producers by ORS 459A.944, and that may be undertaken voluntarily by a producer seeking a fee adjustment pursuant to OAR 340-090-0910(3). All life cycle evaluations conducted under these rules must be based on attributional life cycle assessment methods as defined in OAR 340-090-0900(2). (a) Functional Unit. All inputs and outputs of a life cycle inventory must be expressed in terms of a functional unit defined in a manner consistent with ISO14040:2006 §5.2.2 and ISO 14044:2006 §4.2.3.2. For covered products that contain or hold something the functional unit shall be defined as 1 cubic meter of capacity. For covered products that cover or wrap something the functional unit shall be set as 1 square meter of coverage. For covered products that perform some function other than containing or covering something or for instances where product redesign (e.g. change in concentration) influences the ratio of covered product to function, producers should seek DEQ feedback prior to finalizing the choice of functional unit. (b) System Boundary. The system boundary for life cycle evaluations of covered products shall be based on a cradle-to-grave system boundary, as provided in paragraphs (A) to (E). (A) Unit processes or activities that are included in the system boundary are provided in Subsection (c) and generally include the following: (i) Raw material extraction, processing, and production; (ii) Transportation and fuel usage to obtain raw material at the factory; (iii) Finished manufacturing of covered products; (iv) Transportation and fuel usage to distribute covered products, including customer transport to place of purchase; (v) Local route transport and distribution for collection materials at end of life; and (vi) Waste recovery and processing (at production and end of life) including disposal, incineration, or recycling. (B) Unit processes or activities that are not included in the system boundary: (i) Use related activities or emissions (e.g., electricity consumption, washing, sterilization, refrigeration), except as provided in Subsection (b)(C); (ii) Maintenance of facilities and capital equipment; (iii) Installation of facilities and capital equipment; (iv) Manufacturing of facilities and capital equipment; (v) Personnel transportation; and (vi) Human labor and employee commuting. (C) Notwithstanding Subparagraph (B)(i), if a covered product is either a reusable packaging product or a refillable packaging product the system boundary shall include the use related activities associated with recovering, washing, sterilizing, and redistributing reusable packaging products. (D) The system boundary shall include all processes and production steps required to fulfill the defined functional unit of the covered products under evaluation consistent with the requirements of ISO 14044:2006 §4.2.3.3. (E) If a covered products will use recovered materials, fuels, or energy then those inputs must be included in the assessment in such a way as to avoid double counting or undercounting of burdens, as described in ISO 21930:2017 §7.1.6. (c) Information Modules. Life cycle evaluations shall be divided into information modules A, B, C and D, based on the modularity principle introduced in ISO14025:2006 § 5.4 and consistent with the structure described in ISO21930:2017 § 7.1.7., as provided by this Section. Information modules pertain to the materials, parts, and processes associated with the life cycle of a covered product and represent, individually or when combined, the whole of the life cycle of a covered product. (A) Information Module A shall be included in all evaluations of covered products and includes the production stage of the life cycle for covered products, including: (i) A1, raw material extraction and processing, secondary material inputs, energy generation (electricity or thermal), and any waste management for any production scrap or materials. (ii) A2, transport of raw materials to the production facility along with any internal transport at the production facility itself. (iii) A3, manufacturing, including the production of ancillaries and co-products; energy generation (electricity or thermal) needed for manufacturing, combustion emissions associated with fuels used in the manufacturing process, manufacturing of any packaging (additional to the covered products themselves) associated with secondary or tertiary packaging needs, transport associated with ancillaries, transport associated with secondary or tertiary packaging, and any waste management for any production scrap or materials. (iv) A4, customer transport to place of purchase. (B) Information Module B includes the use stage of the life cycle for covered products. This module is only required for reusable packaging products, as defined by OAR 340-090-0900(37) and includes evaluation of all the relevant use phase activities related to the collection, cleaning, and redistribution of reusable packaging products, as provided by Subparagraph (B)(i)-(iii) of this Subsection. Evaluation of reusable packaging products shall include, at a minimum: (i) Transportation for return, including mode of transportation and distance transported; (ii) Washing and sterilization process including any energy, water, or ancillary inputs; (iii) Transportation for redistribution, including mode of transportation and distance transported; (C) Information Module C shall be included in all life cycle assessments and includes the end-of-life state of a covered product. This stage begins when a covered products finishes its useful life and does not provide any further functionality. (i) Stages of information module C include: (I) C2, transport of waste to end of life processing (recovery, recycling, or disposal); (II) C3, waste processing of covered products in preparation for recycling or recovery, including, sortation, beneficiation, or other processing performed at a MRF or transfer station; and (III) C4, disposal or recovery activities. (ii) Since covered products reaching the end-of-life stage can be managed in different ways, a representative average scenario based on a typical end-of-life shall be calculated. The end-of-life composition of dispositions for a given covered product shall reflect an average, based on a regional or national mix, of recovery and disposal. (iii) If an end-of-life processes results in secondary materials through recycling, energy recovery or other methods, any benefits associated with the secondary materials shall be reported in information module D, pursuant to Subsection (d). (D) Information Module D includes benefits or credits beyond the system boundary. Unlike Modules A through C, Module D is not a life cycle stage. It represents any impacts (either benefits or loads) that occur outside of the system boundary for the covered product. Any benefits specifically associated with reuse, recycling, or energy recovery are quantified and reported in Module D, as described in ISO21930:2017 § 7.1.7.6. (d) Cut off criteria. Cut-off criteria for evaluation of covered products shall follow the guidelines of ISO 21930:2017 § 7.1.8 and ISO14044:2006 § 4.2.3.3.3. Any specific criteria used for the inclusion or exclusion of inputs and outputs must be justified and documented. All available energy and material flows associated with the covered product in the underlying life cycle inventory must be included. In cases where no matching life cycle inventories are available to represent a flow, proxy data may be applied using conservative assumptions regarding environmental impacts. (A) The cut-off criteria for including or excluding materials, energy and emissions data of the study are as follows: (i) Mass – If a flow (input or output) is less than 1% of the cumulative mass of the model it may be excluded, providing its environmental relevance, as defined in Subsection (B) is not a concern. (ii) Energy – If a flow (input or output) is less than 1% of the cumulative energy of the model it may be excluded, provided its environmental relevance is not a concern. (B) For purposes of this section a flow (input or output) has environmental relevance based on its contribution to an environmental impact exceeding the cut-off criteria, defined as individually contributing more than 1% of the total environmental impact of an impact category. In such cases these flows must be included (e.g. cannot be excluded) in the life cycle inventory. (C) The sum of the excluded material flows (inputs and outputs) must not exceed 5% of mass, energy or environmental relevance. (e) Selection of data and data quality requirements. The data used to create the life cycle inventory shall be as precise, complete, consistent, and representative, as follows: (A) Measured data is preferred for use, followed by calculated data, and finally data based on estimates. (B) Measured primary data must be of the highest precision practicable, the precision of calculated and estimated data is expected to be lower than measured. (C) Data must be complete for inputs and outputs for each unit process and the completeness of the combined unit processes that make up the life cycle inventory. Cut-off criteria apply. (D) Modeling choices and data sources must be consistent and ensure that differences in results occur due to differences between product systems, and not because of inconsistencies in modeling choices, data sources, emission factors, or other considerations. (E) To be representative data must match the geographical, temporal, and technological requirements defined in the goal and scope of the project report described in OAR 340-090-0920(1)(b) and (1)(c). (F) An evaluation of data quality in terms of these requirements in Paragraphs (A) to (E) shall be provided in the project report described in OAR 340-090-0920. Table 3 of ISO 21930:2017 provides guidance on the application of generic and specific data required by module and should be used to inform the selection of data developed for a covered product under these rules. Additional guidance regarding data quality requirements can also be found in ISO 14044:2006 § 4.2.3.6 and ISO 21930:2017 § 7.1.9. (G) These data quality requirements apply to all data incorporated into the life cycle inventory. (f) International System of Units measurements shall be used for all life cycle evaluation values. Results of life cycle impact assessments described in OAR 340-090-0930(3) shall use the default units associated with each impact category as described in ISO 21930:2017 § 7.1.10. (2) Life Cycle Inventory Analysis. Life cycle inventory analysis shall be performed as provided by this rule. (a) Data Collection. Data must be collected for all the required information modules described in OAR 340-090-0930(1)(c) within the system boundary, described in OAR 340-090-0930(1)(b) for the covered product under study. Data collection shall follow the guidelines in ISO 14044:2006 § 4.3.2. (b) Calculation Procedures. Calculation procedures employed for the life cycle evaluation of a covered product shall follow the guidance in ISO 14044:2006 § 4.3.3. The calculation shall be applied consistently and documented in the final report, including disclosure of any assumptions. (c) Allocation. For purposes of this Section allocation is the partitioning of the input or output flows of a process or a product system between the product system under study and one or more other product systems. (A) Where possible, allocation should be avoided per ISO 14044:2006 § 4.3.4.2. When required, any allocation for materials and energy carriers shall follow the steps and guidelines laid out in ISO14044:2006 § 4.3.4.2 and ISO21930:2017 § 7.2.3. (B) When allocation is required within any stage of the life cycle for covered products, disclosure of the selected allocation method is required. No allocation may result in double-counting of environment benefits (e.g. credits). The guidelines of ISO14044:2006 § 4.3.4.2 shall be used when allocation is performed and in the specific case of allocation for reuse or recycling, the procedures of ISO14044:2006 § 4.3.4.3. (C) Any recovery processes should account for losses in quality and quantity of the material throughout the process. Written justification for changes in the quality of the material factors applied when allocating benefits of recycling must also be provided, as many recycling processes can yield lower-quality materials compared with virgin materials. Such quality losses should be reflected in appropriate substitution credits for recycling. (D) Energy recovery. If materials are incinerated with associated energy recovery, the unit processes and activities for incineration must account for waste composition and heating value, as well as for regional efficiencies and heat-to-power output ratios. Any credits (e.g. environmental benefits), in the form of energy generation from incineration processes, should substitute for an appropriate regional electricity grid mix and thermal energy inventory. These credits should be reported in Module D, as described in OAR 340-090-0930(1)(c)(D). (E) Landfilling. If materials are sent to landfills, specific unit processes and activities shall be used that account for waste composition, regional leakage rates (due to technology and climate zone), landfill gas capture and utilization. Any recovery of landfill gas output that substitutes for primary production of natural gas shall be granted as a credit. These credits should be reported in Module D, as described in OAR 340-090-0930(1)(c)(D). (F) Composting. If materials are sent to composting facilities, the unit processes and activities for composting must account for waste composition, composting methodology and crediting (via substitution) for the outputs (e.g. finished compost) of the composting process that substitute for primary production of other materials (e.g. synthetic fertilizers). These credits should be reported in Module D, as described in OAR 340-090-0930(1)(c)(D). (G) Material Substitution Credits. A credit described in this subsection is granted to the system for the outputs of end-of-life treatments when the material is recycled. The outputs from recycling (e.g. recycled materials) that substitute for primary production of like materials shall be granted as a credit. These credits should be reported in Module D, as described in OAR 340-090-0930(1)(c)(D). (d) Accounting of biogenic carbon during the life cycle. (A) The inventory shall include biogenic carbon flows (inputs and outputs) of covered products across required information modules. Reporting of biogenic carbon flows shall be consistent with the guidelines of ISO21930:2017 § 7.2.7. When calculating Global Warming Potentials (GWP) for impact assessment as described in OAR 340-090-0930(3), biogenic carbon shall be accounted for as follows: (i) Inputs or sequestration of biogenic carbon shall be reported as a negative inventory flow, and (ii) Outputs or emissions of biogenic carbon shall be reported as a positive inventory flow. (B) Producers must report GWP both excluding and including biogenic carbon. To obtain the fee reduction pursuant to OAR 340-090-0910(3)(b), a producer must use GWP excluding biogenic carbon in the single score impact profile calculation described in OAR 340-090-0930(3)(c). (e) Reusable packaging product. When developing a life cycle inventory for evaluation of a reusable packaging product, defined in OAR 340-090-0900(41), the following shall apply. (A) The following parameters shall be included in the life cycle inventory and disclosed under information module B pursuant to OAR 340-090-0930(1)(c)(B) in the project report: (i) A return rate factor to account for breakage, losses, or yield across each reuse cycle; and (ii) the expected number of reuse cycles, as defined in OAR 340-090-0900(40) to be examined through scenario analysis described in OAR 340-090-0930(4). (B) If a producer transitions a covered product from single-use to reusable and seeks the fee adjustment pursuant to ORS 459A.884(4) and OAR 340-090-0910(3)(b), projections of the information required in Subparagraph (A)(i)-(ii) of this Subsection, rather than actual data, may be used for evaluation for the first three years. If actual data are available during the initial three year period, they must be reported alongside the projections used in inventory analysis and impact assessment. Thereafter, a producer shall use actual data to perform the evaluation. Actual data must be obtained through real-world tracking of reusable packaging assets across the entire state for each individual SKU and shall be consistent with applicable global and national standards. (C) A producer must calculate a break-even point in an assessment focused on a reusable packaging product, and after the three-year period described in Paragraph (B) ends, the actual number of reuses must be compared with and exceed the break-even point to qualify for the fee adjustment pursuant to ORS 459A.884(4) and OAR 340-090-0910(3)(b). The break-even point shall be calculated for the normalized and weighted single score as provided by OAR 340-090-0930(3)(c). (D) Return rate factors shall be calculated according to the methods and guidelines of the Product Environmental Footprint method in section 4.4.9 of Annex I of EU 2021/2279 (European Commission Recommendation of 15 December 2021 on the use of Environmental Footprint methods to measure and communicate the life cycle environmental performance of products and organizations), with the following exceptions: return rates (4.4.9.3) can be based on assumptions or projections (option ‘b’ of 4.4.9.3) in the initial three year period described in Paragraph (B) of this section, but shall be based on supply chain specific data (option ‘a’ of 4.4.9.3) after the three year period. (f) Refillable packaging product. When developing a life cycle inventory for evaluation of a refillable packaging product, defined in OAR 340-090-0900(38), the following shall apply: (A) The following parameters shall be included in the life cycle inventory and disclosed under information module B pursuant to OAR 340-090-0930(1)(c)(B) in the project report: (i) A refill rate factor to account for losses or yield across each reuse cycle; and (ii) the expected number of refill cycles, as defined in OAR 340-090-0900(37) to be examined through scenario analysis described in OAR 340-090-0930(4). (B) A producer must calculate a break-even point in an assessment focused on a refillable packaging product, The break-even point shall be calculated for the normalized and weighted single score as provided by OAR 340-090-0930(3)(c). (g) Refill rate factors shall be calculated according to the methods and guidelines of the Product Environmental Footprint method in section 4.4.9 of Annex I of EU 2021/2279 (European Commission Recommendation of 15 December 2021 on the use of Environmental Footprint methods to measure and communicate the life cycle environmental performance of products and organizations). (h) Hazardous waste indicators. Producers shall track and report, in addition to all other required inventory data, flows of the following wastes as part of the life cycle evaluation of covered products: (A) Hazardous waste, as defined in ORS 466.005(7) that is disposed of within any life cycle stage of the covered product, and (B) Non-hazardous waste that is disposed of in the covered product life cycle. (i) Plastic leakage inventory. Producers shall quantify, in addition to all other required inventory data, the flow(s) of plastic leakage across the life cycle of covered products. This plastic leakage assessment aims at measuring the plastic leaving the technosphere and accumulating in the natural environment (be it soil, air, or rivers and ocean) and shall be based on the methodologies of the Plastic Footprint Network (PFN) V1 Nov. 2023. The methodology provides details on flow nomenclature and units of measure to track plastic leakage, as well as providing regionalized averages when primary data cannot be obtained by the producer. The data quality requirements of OAR 340-090-0930(1)(e) apply to this Section and specifically data related to plastic leakage shall follow the data governance guidance from the Plastic Footprint Network methodology V1 Nov. 2023. (j) Methane leakage. Producers shall quantify methane leakage, which may occur at various points along the oil and gas supply chain, within the life cycle inventory for covered products, including methane leakage that happens at wellhead, pipeline, transport, refinery, and production facilities. Producers shall quantify methane leakage by using published sources that reflect the latest available information and understanding of the issue. The data quality requirements of OAR 340-090-0930(1)(e) shall apply to this Section. (3) Life Cycle Impact Assessments. Upon completion of the life cycle inventory pursuant to OAR 340-090-0930(2), a life cycle impact assessment shall be conducted according to the requirements of this rule. (a) Life cycle impact assessments shall, unless otherwise provided in this rule, follow the guidelines for classification and characterization of emissions described in ISO 14044:2006 § 4.4 and follow the specific methods of the Product Environmental Footprint method, as described in Section 5 of Annex I of EU 2021/2279, European Commission Recommendation of 15 December 2021 on the use of Environmental Footprint methods to measure and communicate the life cycle environmental performance of products and organizations. (b) Life cycle impact indicators. A producer must calculate and disclose life cycle impact assessment indicators provided by Paragraph (A) to (P) of this Subsection for project reports submitted to comply with ORS 459A.944(2) or for the fee reduction described in OAR 340-090-0910(3)(a), and Paragraph (A) to (R) of this Subsection for the fee reduction described in OAR 340-090-0910(3)(b). Life cycle impact indicators are: (A) Climate Change (PEFCR EF 3.1, kg CO2 eq.) (B) Ozone depletion (PEFCR EF 3.1, kg CFC-11 eq.) (C) Human toxicity, cancer (PEFCR EF 3.1, CTUh) (D) Human toxicity, non-cancer (PEFCR EF 3.1, CTUh) (E) Particulate matter (PEFCR EF 3.1, disease incidences) (F) Ionizing radiation, human health (PEFCR EF 3.1, kBq U-235 eq.) (G) Photochemical ozone formation, human health (PEFCR EF 3.1, kg NMVOC eq.) (H) Acidification (PEFCR EF 3.1, mol H+ eq.) (I) Eutrophication, terrestrial (PEFCR EF 3.1, mol N eq.) (J) Eutrophication, freshwater (PEFCR EF 3.1, kg P eq.) (K) Eutrophication, marine (PEFCR EF 3.1, kg N eq.) (L) Ecotoxicity, freshwater (PEFCR EF 3.1, CTUe) (M) Land use (PEFCR EF 3.1, pt) (N) Water use (PEFCR EF 3.1, m3 water eq) (O) Resource use, minerals and metals (PEFCR EF 3.1, kg Sb eq) (P) Resource use, fossils (PEFCR EF 3.1, MJ) (Q) Plastic physical impacts on biota (MariLCA, PAF m3 day) (R) Plastics leakage inventory value (DEQ, kg) (S) The impacts for the indicators in Paragraphs (A) to (P) must be calculated and disclosed as provided by Product Environmental Footprint method, Section 3.2.3, Table 2, of Annex I of EU 2021/2279 (European Commission Recommendation of 15 December 2021 on the use of Environmental Footprint methods to measure and communicate the life cycle environmental performance of products and organisations) and characterization factors in ENVIRONMENTAL FOOTPRINT REFERENCE PACKAGE 3.1: LAST UPDATE JULY 2022 apply to each of these indicators when performing impact assessment. (T) The impact for the indicator in Paragraph (Q) must be calculated and disclosed using the characterization factors published in BOULAY ET. AL 2023 MariLCA CHARACTERIZATION FACTORS FOR MICROPLASTIC IMPACTS IN LIFE CYCLE ASSESSMENT: PHYSICAL EFFECTS ON BIOTA FROM EMISSIONS TO AQUATIC ENVIRONMENTS. JOURNAL OF CLEANER PRODUCTION, v. 418. (U) The impact indicator in Paragraph (R) is for impacts of plastic other than physical impacts on aquatic biota. No characterization factors will be applied to the leakage flows reported for this indicator and the producer shall directly normalize and weight the leakage amount following the approach in Subsection (c)(A) to (B) of this Section. (c) Single score impact profile. To obtain a fee reduction pursuant to ORS 459A.884(4) and OAR 340-090-0910(3)(b), a producer’s impact assessment results must be normalized, weighted, and aggregated into a single numeric value using weighting factors provided in Table A. Normalization, weighting, and aggregating impacts into a single numeric value is not required for the fee reduction described in OAR 340-090-0910(3)(a). This single score impact profile must be calculated for two scenarios – the covered product before and after an impact reduction action undertaken by the producer. These scenarios shall be based on a set of comparable conditions and comport with the requirements of ISO 14044:2006 § 4.2.3.7 related to comparison between systems. (A) The environment impact indicators for Human Toxicity - Cancer, Human Toxicity – Non-Cancer, and Ecotoxicity - Freshwater, provided by Subsection (b) of this Section shall be excluded from the normalization, weighting, and aggregating of impact described in this Subsection. To obtain a fee reduction pursuant to OAR 340-090-0910(3)(b), these indicators must be reported separately from the single score calculation. If a producer action results in an increase in environmental impact of 1000 times or greater for human toxicity cancer and human toxicity non-cancer or 100 time or greater for freshwater ecotoxicity then no fee reduction shall be granted. (B) Normalization of impact category indicator results shall be based on internal normalization. For the purposes of these rules, internal normalization means that impact indicator results for the impact reduction scenario are divided by the same category of impact indicator results for the baseline scenario prior to impact reduction. The resultant unitless value must then be multiplied by the final weighting factors provided in Table A. This process must be performed for each environmental impact category indicator result separately. Once normalized and weighted, the results shall be summed across all impact category indicators to arrive at the single score. This single score shall form the basis to evaluate substantial impact reductions and to assess any fee reductions pursuant to OAR 340-090-0910(3)(b). A score of 90 or lower represents 10% or more impact reduction, and as such qualifies as substantial impact reduction. Guidance on the process of normalization found in ISO 14044:2006 § 4.4.3.2 shall apply. (d) Evaluation of impact reduction, as described above in OAR 340-090-0910(3)(c)(B), shall be based on a set of comparable scope and boundary conditions consistent with the guidelines provided in Section 4.2.3.7 of ISO 14044:2006 related to comparisons between systems. (4) Interpretation. A producer must interpret the results of a life cycle evaluation under OAR 340-090-0930(1)-(3) as described in ISO 14044:2006 § 4.5 and this rule. (a) Interpretation of the results of an evaluation under the LCE rules shall establish confidence in the accuracy and precision of the outputs. Interpretation includes checks on the overall completeness of the life cycle inventory and impact assessment, evaluation of the consistency of the project report with the requirements of the LCE rules and testing of the sensitivity of key elements of the evaluation. [Note - See ISO 14044:2006, Annex B for examples of life cycle interpretation.] (b) Producers shall perform a sensitivity analysis on the underlying electricity grid mixture and the recycling allocation methodology. A producer may perform a sensitivity analysis on other variables. The purpose of a sensitivity analysis is to check for key data, parameters, or methodological choices in the life cycle evaluation of covered products. This requirement provides additional quantitative information about the potential variability of the evaluation results. Sensitivity analysis shall disclose the range, minimum and maximum, and variance across all required impact categories and indictors in the project report. (c) For modelling the electricity grid a producer must use the guidance and methodologies provided by the Product Environmental Footprint method in Section 4.4.2 of Annex I of EU 2021/2279 (European Commission Recommendation of 15 December 2021 on the use of Environmental Footprint methods to measure and communicate the life cycle environmental performance of products and organizations). (d) A producer may use opportunities for impact reduction identified by the sensitivity analysis to apply for the substantial impact reduction bonus pursuant to OAR 340-090-0910(3)(b). (e) If a producer applies for the substantial impact reduction bonus pursuant to OAR 340-090-0910(3)(b) specifically for a reusable packaging product, additional sensitivity analysis must be performed. Based on the parameters described in OAR 340-090-930(2)(e)(A), a scenario analysis, which means a form of sensitivity analysis wherein multiple parameters are varied at once, shall be performed for three scenarios. A best, expected, and worst-case scenario shall be evaluated and disclosed, wherein the return rate factor and number of reuse cycles are varied accordingly. [NOTE: View a PDF of the Table of Weighting Factors by clicking on the link below.] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.]