OAR 345-024-0500: Standards for Fossil-Fueled Power Plants and Energy Facilities that Emit Carbon Dioxide

(1) Notwithstanding OAR 345-024-0503 through 345-024-0720, to issue a site certificate for a fossil-fueled power plant on or after September 25, 2021, the Council must find that the facility will only generate electricity in a manner that does not emit greenhouse gasses into the atmosphere. (2) If the facility will rely on carbon capture, sequestration, and storage to satisfy the requirements of section (1), the Council must find that the certificate holder has demonstrated that the structures, systems, components, and monitoring programs at the facility are reasonably likely to result in the permanent capture, sequestration, and storage of greenhouse gasses that result from the generation of electricity at the facility. (3) To issue a site certificate for a nongenerating facility that will emit carbon dioxide into the atmosphere, the Council must find that the energy facility complies with the carbon dioxide emissions standard under OAR 345-024-0620. (4) In addition to the requirements of OAR 345, division 22, in an application for a site certificate for a fossil-fueled power plant, or other facility that will emit carbon dioxide into the atmosphere, the application must include the following: (a) A description of the means by which the applicant will comply with the applicable carbon dioxide emissions standard under OAR 345-024-0500. (b) Information about the carbon dioxide emissions that are reasonable likely to result from the operation of the energy facility, including the following: (A) The maximum hourly fuel use at: (i) Net electrical power output at average annual conditions for a base load gas plant; or (ii) Nominal electric generating capacity for a non-base load power plant or a base load gas plant with power augmentation technologies; (B) The gross capacity as estimated at the generator output terminals for each generating unit. (i) For a base load gas plant, gross capacity must be estimated based on the average annual ambient conditions for temperature, barometric pressure and relative humidity at the site. For a baseload gas plant with power augmentation, gross capacity for power augmentation mode must be estimated separately based on the average temperature, barometric pressure and relative humidity at the site during the times of year when the facility is intended to operate with power augmentation; or (ii) For a non-base load plant, gross capacity must be estimated based on the average temperature, barometric pressure and relative humidity at the site during the times of year when the facility is intended to operate. (C) A table showing a reasonable estimate of all on-site electrical loads and losses greater than 50 kilowatts, including losses from on-site transformers, plus a factor for incidental loads, that are required for the normal operation of the plant when the plant is at its designed full power operation; (D) The maximum number of hours per year and energy content (Btu per year, higher heating value) of alternate fuel use; (E) The total estimated gross carbon dioxide emissions for 30 years, unless an applicant for a non-base load power plant or nongenerating energy facility proposes to limit operation to a shorter time; (F) The gross carbon dioxide emissions rate expressed as: (i) Pounds of carbon dioxide per kilowatt-hour of net electric power output for a base load gas plant with power augmentations, the rate for plant operations with and without power augmentation must be reported separately; (ii) Pounds of carbon dioxide per horsepower hour for nongenerating facilities for which the output is ordinarily measured in horsepower; or (iii) A rate comparable to pounds of carbon dioxide per kilowatt-hour of net electric power output for nongenerating facilities other than those measured in horsepower. (G) The total excess carbon dioxide emissions for 30 years, unless an applicant for a non-base load power plant or a nongenerating energy facility proposes to limit operation to a shorter time; (H) The excess carbon dioxide emissions rate, using the same measure as required for (F); (I) The average annual site conditions, including temperature, barometric pressure and relative humidity, together with a citation of the source and location of the data collection devices; (J) For a non-base load power plant (or a base load power plant using power augmentation), the average temperature, barometric pressure and relative humidity at the site during the times of the year when the facility is intended to operate, together with a citation of the source and location of the data collection devices; (K) The annual fuel input in British thermal units, higher heating value, to the facility for each type of fuel the facility will use, assuming: (i) For a base load gas plant, a 100-percent capacity factor on a new and clean basis and the maximum number of hours annually that the applicant proposes to use alternative fuels; (ii) For a non-base load power plant, the applicant’s proposed annual hours of operation on a new and clean basis, the maximum number of hours annually that the applicant proposes to use alternative fuels and, if the calculation is based on an operational life of fewer than 30 years, the proposed operational life of the facility; (iii) For a nongenerating energy facility, the reasonably likely operation of the facility based on one year, 5-year, 15-year, and 30-year averages, unless an applicant proposes to limit operation to a shorter time; (L) For each type of fuel a base load gas plant or a non-base load power plant will use, the estimated heat rate and capacity of the facility measured on a new and clean basis with no thermal energy to cogeneration, consistent with the data supplied in 345-021-0010(3)(b); (M) For each type of fuel a nongenerating energy facility will use, the estimated efficiency and capacity of the facility with no thermal energy to cogeneration; (N) If the facility provides thermal energy for cogeneration to lower its net carbon dioxide emissions rate: (i) The estimated annual useful thermal energy available from the facility for non-electric processes, annual useful thermal energy used by non-electric processes, and annual thermal energy rejected as waste heat; (ii) For a base load gas plant or non-base load power plant, the estimated annual net electric power output and annual fuel input in British thermal units higher heating value for the facility for each type of fuel the facility will use and the basis of such estimates; (iii) A description of the non-electric thermal processes, the names and addresses of the persons intending to use the non-electric thermal energy, and a description and an estimate of the fuel displaced by cogeneration, including supporting assumptions; (iv) A description of the products produced and thermal energy needed for production of the primary products made by the persons intending to use the non-electric thermal energy produced by the proposed facility, supported by fuel use and steam production records or estimates, if the production facility is new; (v) The efficiency of each boiler that the thermal energy will displace; (vi) For each boiler, the annual fossil fuel displaced in million Btu, higher heating value, by type of fuel that will be displaced by the thermal energy; (vii) The annual carbon dioxide offset by the cogeneration host, using a rate of 117 pounds of carbon dioxide per million Btu of natural gas fuel (higher heating value) and a rate of 161 pounds of carbon dioxide per million Btu of distillate fuel (higher heating value); (viii) The cumulative carbon dioxide offset by the steam host through the thirtieth year of facility operation, or for a shorter period if an applicant for a nongenerating facility proposes a shorter operational period; (ix) A copy of the contractual agreement between the applicant and the cogeneration host for the use of the thermal energy; (x) A description of the guarantees of offsets that the applicant must provide for cogeneration projects, pursuant to OAR 345-024-0560(1) and 345-024-0600(1); (xi) A proposed monitoring and evaluation plan and an independent verification plan, pursuant to (O)(ixx) and (xx); (xii) A copy of the instrument by which the certificate holder will transfer the offsets to the Council for it to hold in trust; (O) If the applicant proposes to offset carbon dioxide emissions as described in OAR 345-024-0550(3), 345-024-0560(2), 345-024-0590(3), 345-024-0600(2), 345-024-0620(3) or 345-024-0630(1): (i) A description of each offset project; (ii) A description of who will implement the offset project, including qualifications and experience; (iii) Detailed estimates of the of carbon dioxide offset, measured in short tons, that the offset projects will achieve over the life of the project; (iv) For each offset project, an explanation of how the applicant quantified its carbon dioxide estimates to a degree of certainty acceptable to the Council through a transparent and replicable calculation methodology; (v) For each offset project, evidence that the offset project would not likely have been implemented if not for the applicant’s activities or funding; (vi) For each offset project, a description of a “Baseline” projection that does not include the proposed project and a “Project Case” projection that does. The historic Baseline must use reliable emissions data or pre-project data available for the most recent three years unless the applicant can demonstrate that a different period more closely represents historical operations or unless it can demonstrate that another method provides a more reasonable estimate. The applicant must show how the Baseline projection changes over time if changes from business-as-usual could be reasonably anticipated during the project life; (vii) For each offset project, a description, in a transparent and realistic manner, of the assumptions and methodologies used to quantify the Baseline and the Project Case projections, including a description of key parameters and data sources. This must include a description of the formulae used to estimate carbon dioxide emissions or sequestration within the project boundary and a net change of carbon dioxide emissions or sequestration that occurs outside of the project boundary that is measurable and attributable to the project activity; (viii) For projects that avoid conventional electricity generation, a description of a Baseline that calculates the carbon dioxide emissions per kilowatt hour in two steps: (I) For the first five years of operation, a description of the rate based on dispatch data or models or, absent that, a weighted average of all resources in a power pool except zero-fuel-cost or must-run facilities; and (II) A description of the rate for any subsequent years based on a group of similar facilities built within the prior five years or under construction in the electrical distribution region of the project or the three most recent plants built in the region, whichever rate is lower. (ix) For projects that avoid conventional electricity generation, a description of avoided transmission and distribution losses, using average grid area or national losses; (x) A description of any guarantee for offsets from projects that the applicant proposes pursuant to OAR 345-024-0560(2), 345-024-0600(2), and 345-024–0630(1), if the applicant chooses to offer a guarantee; (xi) A description of the offset project boundary. The boundary must encompass all carbon dioxide emissions under the control of the project that are significant and reasonably attributable to the project activity. If the project is being conducted by one part of a corporation, the boundary must include the emissions and reductions of the whole corporate entity and the carbon dioxide emissions resulting from processes and facilities that are related to the project, with identification of subsidiaries that are affected by the project; (xii) A description of significant risks and risk mitigation strategies, including an estimate of the range of uncertainty around the expected carbon dioxide offsets; (xiii) For biological sequestration projects, an assessment of the risk of climate change to natural systems that are sequestering the carbon dioxide, including, if appropriate, the risks from forest fires, pest and other unplanned releases of carbon from sequestration; (xiv) A description of whether the offset project will permanently avoid or displace emissions of carbon dioxide. If a project only temporarily sequesters carbon, an indication of the duration of sequestration or storage; (xv) A description of the amount of funding the applicant will provide for each offset project it proposes; (xvi) If the applicant anticipates that a project will have funding sources in addition to itself, identification of the sources of those funds, the amount of other funding that is required to implement a project, the amount of funds other parties have committed, and the risks of other funds not being available; (xvii) If the applicant proposes that a project will have funding sources in addition to itself, a description of how ownership of the offsets will be allocated among the several funding sources; (xviii) A copy of the instrument by which the certificate holder will transfer all the offsets to the Council for it to hold in trust; (xix) A description of a transparent and replicable methodology for the applicant's monitoring and evaluation plan and for an independent verification plan, including: (I) Procedures the applicant and the independent entity will employ; (II) How the applicant will assure funds for ongoing monitoring, evaluation and verification; (III) The time frame and frequency over which the applicant will conduct monitoring and evaluation and over which the independent entity will conduct verification, including the frequency of site visits, if applicable; (IV) The reporting procedures and guidelines for the plans; and (V) Whether the applicant has identified the independent entity that will perform the verification; (xx) The monitoring and evaluation plan and the verification plan must identify the data needs and data quality with regard to accuracy, comparability, completeness and validity. It must include methodologies to be used for data collection, monitoring, storage, reporting and management, including quality assurance and quality control provisions. It must provide complete calculations used to calculate and estimate carbon dioxide emissions from activity within the project boundary. It must show any formulae and assumptions the applicant used to calculate offset project leakage; and (xxi) A description of reasonably likely, significant undesirable long-term environmental impacts from the implementation of an offset project. (P) If the applicant elects to comply with the applicable carbon dioxide emissions standard by using the monetary path under OAR 345-024-0560(3), 345-024-0600(3) or 345-024-0630(2), the applicant must include: (i) A statement of the applicant’s election to use the monetary path; (ii) The amount of carbon dioxide reduction, in tons, for which the applicant is taking credit by using the monetary path; (iii) The qualified organization to whom the applicant will provide offset funds and funds for the cost of selecting and contracting for offsets. The applicant must include evidence that the organization meets the definition of a qualified organization under OAR 345-001-0010. The applicant may identify an organization that has applied for, but has not received, an exemption from federal income taxation, but the Council will not find that the organization is a qualified organization unless the organization is exempt from federal taxation under section 501(c)(3) of the Internal Revenue Code as amended and in effect on September 18, 2015; and (iv) A statement of whether the applicant intends to provide a bond or letter of credit to secure the funds it must provide to the qualified organization or whether it requests the option of providing either a bond or a letter of credit.