Or. Admin. Code § 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. The utility 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 a public space, 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) The owner of the electric-charging
equipment may generate the credits. If the owner of charging equipment is not
registered and that charging equipment is part of an electric vehicle supply
equipment network, then the network service provider may register until and
unless the owner registers.
(b)
Electric Utility. If the owner 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 elect to generate the credits elect to generate
the credits, then the 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, aerial trams, or transit buses, a transit
agency may generate the credits. The transit agency must have an active
registration approved by DEQ under OAR
340-253-0500.
(5) Electric Forklifts. For electricity used
to power forklifts, the forklift owner may generate the credits. If the
forklift is being operated by a person other than the owner, the owner may
generate the credits if they have detailed data that enables them to accurately
report the electricity used to operate the forklift as required by OAR
340-253-1000(2),
otherwise the operator of the forklift may generate the credits.
(6) Electric Transportation Refrigeration
Units. The owner of the electric transportation refrigeration unit may generate
credits for electricity used in transport refrigeration units.
(7) Electric Cargo Handling Equipment. The
owner of the electric-charging equipment may generate the credits.
(8) Electric Ocean-Going Vessel. The owner of
the equipment that provides electrical power from the shore to the vessel is
eligible to generate credits.
(9)
Electric Ground Support Equipment. The owner of the charging equipment for
Ground Support Equipment is eligible to generate credits.
(10) Responsibilities to generate credits.
Any person specified under sections (2) through (9) may generate clean fuel
credits by complying with the registration, recordkeeping and reporting
requirements of this division.
(11)
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 OFRS 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.
(12) Incremental Aggregator.
(a) For non-residential charging, incremental
credits may be claimed by the eligible credit generator identified in sections
(3)-(9) of this rule.
(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
December 31, 2022, 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.
Notes
Statutory/Other Authority: ORS 468.020, 468A.266, 468A.268 & 468A.277
Statutes/Other Implemented: ORS 468.020 & ORS 468A.265 - 468A.277
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