OAR 340-273-0110: Covered Entity and Covered Emissions Applicability

(1) Calculations of covered emissions, compliance obligations, and distribution of compliance instruments will be based on emissions data and information submitted in accordance with this rule and in emissions data reports submitted by a person described in this rule and required according to OAR chapter 340, division 215, which may be subject to verification according to OAR chapter 340, division 272. For any person that does not submit sufficient information in compliance with OAR chapter 340, divisions 215 and 272, calculations will be informed by additional best data available to DEQ. For any person that has not registered and reported according to division 215, such calculations will be based on the best data available to DEQ, following all reporting requirements and assumptions that would be applicable had the person reported according to that division. (2) A covered entity is subject to the requirements of this division for its covered emissions described in this rule. A person remains a covered entity until cessation is met according to OAR 340-273-0130. (3) Applicability for fuel suppliers and in-state fuel producers. A person is a covered fuel supplier if the person is described in subsection (a) and has annual covered emissions described in subsection (b) in any applicability determination calendar year that equal or exceed the threshold for applicability listed in Table 1 in OAR 340-273-9000. All persons that are related entities must aggregate their emissions together to determine applicability and each becomes a covered fuel supplier if applicability is met. When applicability is met, each person is a covered fuel supplier beginning with the calendar year a person becomes a covered fuel supplier, as provided in Table 1 in OAR 340-273- 9000. Once a person is a covered fuel supplier, the person remains a covered fuel supplier until the person has met the cessation requirements according to OAR 340- 273-0130. (a) The person is a fuel supplier or in-state producer that imports, sells, or distributes fuel for use in Oregon, and is one or more of the following: (A) A dealer, as that term is defined in ORS 319.010 that is subject to the Oregon Motor Vehicle and Aircraft Fuel Dealer License Tax in OAR chapter 735, division 170; (B) A seller, as that term is defined in ORS 319.520, that is subject to the Oregon Use Fuel Tax in OAR chapter 735, division 176; (C) A person that produces, imports, sells, or distributes gasoline or distillate fuel oil for use in Oregon and that is not subject to the Oregon Motor Vehicle and Aircraft Fuel Dealer License Tax or the Oregon Use Fuel Tax in OAR chapter 735, divisions 170 and 176; or (D) A person that either produces propane in Oregon or imports propane for use in the state. (b) Except as provided in paragraph (B), covered emissions include emissions described in paragraph (A). (A) Covered emissions include emissions of anthropogenic greenhouse gases in metric tons of CO2e that would result from the complete combustion or oxidation of the annual quantity of propane and liquid fuels (including, for example and without limitation, gasoline and petroleum products) imported, sold, or distributed for use in this state. (B) Covered emissions do not include: (i) Emissions that are from the combustion of biomass-derived fuels; (ii) Emissions that are from the combustion of fuels used for aviation including, for example and without limitation, aviation gasoline, kerosene-type jet fuel, and alternative jet fuel; (iii) Emissions described in 40 CFR part 98 subpart W – Petroleum and Natural Gas Systems; and (iv) Emissions from fuels that have been used in a manner other than combustion or oxidization, and that does not result in material emissions of CO2e, if documented in information provided to DEQ. (4) Applicability for local distribution companies. A person is a covered fuel supplier if the person is described in subsection (a) and has annual covered emissions described in subsection (b) in 2020 or any subsequent calendar year, unless the person has met the cessation requirements according to OAR 340-273-0130. (a) The person is a local distribution company that either produces natural gas, compressed natural gas, or liquefied natural gas in Oregon, or that imports, sells, or distributes natural gas, compressed natural gas, or liquefied natural gas to end users in the state. (b) Except as provided in paragraph (B), covered emissions include emissions described in paragraph (A). (A) Covered emissions include emissions of anthropogenic greenhouse gases in metric tons of CO2e that would result from the complete combustion or oxidation of the annual quantity of natural gas imported, sold, or distributed for use in this state. (B) Covered emissions do not include: (i) Emissions that are from the combustion of biomass-derived fuels; (ii) Emissions described in 40 CFR part 98 subpart W – Petroleum and Natural Gas Systems; (iii) Emissions avoided where the use of natural gas results in greenhouse gas emissions captured and stored, if documented by information provided to DEQ under approved protocols; (iv) Emissions from natural gas delivered to an air contamination source that is an electric power generating plant with a total nominal electric generating capacity greater than or equal to 25 megawatts; and (v) Emissions from the combustion or oxidation of natural gas at a covered EITE source as described in section (5). (5) Applicability for EITE sources. A person is a covered EITE source if the person is described in subsection (a) and has annual covered emissions described in subsection (b) in 2020 or any subsequent calendar year that equal or exceed 15,000 MT CO2e. (a) The person owns or operates a source engaged in a sector described in OAR 340-273-9000 Table 7. (b) Except as provided in paragraph (B), covered emissions include emissions described in paragraph (A). (A) Covered emissions include all emissions of anthropogenic greenhouse gases in metric tons of CO2e, including without limitation, emissions from all uses of natural gas and solid fuels, from energy production, from industrial processes, and from any other processes. (B) Covered emissions do not include: (i) Emissions from the use of biomass-derived fuels; (ii) Emissions from the use of liquid fuels or propane; (iii) Emissions from an air contamination source that is owned or operated by an interstate natural gas pipeline and that is operating under authority of a certificate of public convenience and necessity issued by the Federal Energy Regulatory Commission; (iv) Emissions from an air contamination source that is an electric power generating plant with a total nominal electric generating capacity greater than or equal to 25 megawatts. (v) Emissions described in 40 CFR part 98 subpart HH – Municipal Solid Waste Landfills; (vi) Emissions described in 40 CFR part 98 subpart TT – Industrial Waste Landfills; and (vii) Emissions avoided where greenhouse gas emissions are captured and stored, if documented by information provided to DEQ under approved protocols; (6) Applicability for direct natural gas sources. A person is a covered DNG source if the person is described in subsection (a) and has annual covered emissions described in subsection (b) in 2020 or any subsequent calendar year that equal or exceed 1 5,000 MT CO2e. (a) The person owns or operates a stationary source that: (A) Is not in a source classification described in OAR 340-273-9000 Table 7; and (B) Uses natural gas distributed to the source by an entity other than a local distribution company . (b) Except as provided in paragraph (B), covered emissions include emissions described in paragraph (A). (A) Covered emissions include all emissions of anthropogenic greenhouse gases in metric tons of CO2e, including without limitation, emissions from all uses of natural gas and solid fuels, from energy production, from industrial processes, and from any other processes. (B) Covered emissions do not include: (i) Emissions from the use of biomass-derived fuels; (ii) Emissions from the use of liquid fuels or propane; (iii) Emissions from an air contamination source that is owned or operated by an interstate natural gas pipeline and that is operating under authority of a certificate of public convenience and necessity issued by the Federal Energy Regulatory Commission; (iv) Emissions from an air contamination source that is an electric power generating plant with a total nominal electric generating capacity greater than or equal to 25 megawatts; (v) Emissions described in 40 CFR part 98 subpart HH – Municipal Solid Waste Landfills; (vi) Emissions described in 40 CFR part 98 subpart TT – Industrial Waste Landfills; (vii) Emissions avoided where greenhouse gas emissions are captured and stored, if documented by information provided to DEQ under approved protocols; and (viii) Emissions from natural gas, compressed natural gas, or liquefied natural gas used on site that was delivered by a local distribution company.