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DEPARTMENT OF ENERGY, ENERGY FACILITY SITING COUNCIL
DIVISION 24
SPECIFIC STANDARDS FOR SITING FACILITIES
Specific Standards for Wind Facilities
345-024-0010
Public Health and Safety Standards for Wind Energy Facilities
To issue a site certificate for a proposed wind energy facility, the Council must find that the applicant:
(1) Can design, construct and operate the facility to exclude members of the public from close proximity to the turbine blades and electrical equipment.
(2) Can design, construct and operate the facility to preclude structural failure of the tower or blades that could endanger the public safety and to have adequate safety devices and testing procedures designed to warn of impending failure and to minimize the consequences of such failure.
Stat. Auth.: ORS 469.470 & 469.501
Stats. Implemented: ORS 469.501
Hist.: EFSC 6-1980, f. & ef. 8-26-80; EFSC 1-1993, f. & cert. ef. 1-15-93, Renumbered from 345-115-0020 & 345-115-0030; EFCS 5-1993(Temp), f. & cert. ef. 8-16-93; EFCS 1-1994, f. & cert. ef. 1-28-94; EFCS 2-1994, f. & cert. ef. 5-6-94; EFSC 5-1994, f. & cert. ef. 11-30-94; EFSC 2-1999, f. & cert. ef. 4-14-99; EFSC 1-2007, f. & cert. ef. 5-15-07
345-024-0015
Cummulative Effects Standard for Wind Energy Facilities
To issue a site certificate
for a proposed wind energy facility, the Council must find that the applicant can
design and construct the facility to reduce cumulative adverse environmental effects
in the vicinity by practicable measures including, but not limited to, the following:
(1) Using existing roads to
provide access to the facility site, or if new roads are needed, minimizing the
amount of land used for new roads and locating them to reduce adverse environmental
impacts.
(2) Using underground transmission
lines and combining transmission routes.
(3) Connecting the facility
to existing substations, or if new substations are needed, minimizing the number
of new substations.
(4) Designing the facility to reduce the risk of injury to
raptors or other vulnerable wildlife in areas near turbines or electrical equipment.
(5) Designing the components of the facility
to minimize adverse visual features.
(6) Using the minimum lighting
necessary for safety and security purposes and using techniques to prevent casting
glare from the site, except as otherwise required by the Federal Aviation Administration
or the Oregon Department of Aviation.
Stat. Auth.: ORS 469.470 &
469.501
Stats. Implemented: ORS 469.501
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2007, f. & cert. ef. 5-15-07; EFSC 1-2012, f. &
cert. ef. 5-15-12
Specific Standards for Surface Facilities Related to Underground Gas Storage Reservoirs
345-024-0030
Public Health and Safety Standards for Surface Facilities Related to Underground Gas Storage Reservoirs
To issue a site certificate for a proposed surface facility related to an underground gas storage reservoir, the Council must make the following findings:
(1) The proposed facility is located at distances in accordance with the schedule below from any existing permanent habitable dwelling:
(a) Major facilities, such as compressor stations, stripping plants and main line dehydration stations -- 700 feet.
(b) Minor facilities, such as offices, warehouses, equipment shops and odorant storage and injection equipment -- 50 feet.
(c) Compressors rated less than 1,000 horsepower -- 350 feet.
(d) Roads and road maintenance equipment housing -- 50 feet.
(2) The applicant has developed a program using technology that is both practicable and reliable to monitor the facility to ensure the public health and safety.
[Publications: The publication referenced are available from the agency.]
Stat. Auth.: ORS 469.470 & 469.501
Stats. Implemented: ORS 469.501
Hist.: EFSC 1-1980, f. & ef. 2-28-80; EFSC 1-1981, f. & ef. 1-19-81; EFSC 1-1993, f. & cert. ef. 1-15-93, Renumbered from 345-100-0036; EFCS 5-1993(Temp), f. & cert. ef. 8-16-93; EFCS 1-1994, f. & cert. ef. 1-28-94; EFSC 5-1994, f. & cert. ef. 11-30-94; EFSC 2-1999, f. & cert. ef. 4-14-99; EFSC 1-2002, f. & cert. ef. 4-3-02; EFSC 1-2007, f. & cert. ef. 5-15-07
Specific Standards for Transmission Lines
345-024-0090
Siting Standards for Transmission Lines
To issue a site certificate for a facility that includes any transmission line under Council jurisdiction, the Council must find that the applicant:
(1) Can design, construct and operate the proposed transmission line so that alternating current electric fields do not exceed 9 kV per meter at one meter above the ground surface in areas accessible to the public;
(2) Can design, construct and operate the proposed transmission line so that induced currents resulting from the transmission line and related or supporting facilities will be as low as reasonably achievable.
Stat. Auth.: ORS 469.470 & 469.501
Stats. Implemented: ORS 469.501
Hist.: EFSC 9-1980, f. & ef. 12-22-80; EFSC 1-1993, f. & cert. ef. 1-15-93; Renumbered from 345-080-0055; EFCS 5-1993(Temp), f. & cert. ef. 8-16-93; EFCS 1-1994, f. & cert. ef. 1-28-94; EFSC 5-1994, f. & cert. ef. 11-30-94; EFSC 2-1999, f. & cert. ef. 4-14-99; EFSC 1-2007, f. & cert. ef. 5-15-07
Standards for Energy Facilities that Emit Carbon Dioxide
345-024-0500
General
To issue a site certificate, the Council must find that the energy facility complies with any applicable carbon dioxide emissions standard adopted by the Council or enacted by statute. The Council shall adopt standards for fossil-fueled power plants and may adopt carbon dioxide emission standards for other energy facilities that emit carbon dioxide.
Stat. Auth.: ORS 469.470
Stats. Implemented: ORS 469.501 & 469.503
Hist.: EFSC 2-1999, f. & cert. ef. 4-14-99
345-024-0510
Principles for the Adoption of New Standards for Fossil-Fueled Power Plants
The council shall adopt carbon dioxide emissions standards for fossil-fueled power plants by rule. In adopting or amending such carbon dioxide emissions standards, the Council shall consider and balance at least the following principles. In the rule-making record, the Council shall include findings on these principles:
(1) Promote facility fuel efficiency;
(2) Promote efficiency in the resource mix;
(3) Reduce net carbon dioxide emissions;
(4) Promote cogeneration that reduces net carbon dioxide emissions;
(5) Promote innovative technologies and creative approaches to mitigating, reducing or avoiding carbon dioxide emissions;
(6) Minimize transaction costs;
(7) Include an alternative process that separates decisions on the form and implementation of offsets from the final decision on granting a site certificate;
(8) Allow either the applicant or third parties to implement offsets;
(9) Be attainable and economically achievable for various types of power plants;
(10) Promote public participation in the selection and review of offsets;
(11) Promote prompt implementation of offset projects;
(12) Provide for monitoring and evaluation of the performance of offsets;
(13) Promote reliability of the regional electric system.
Stat. Auth.: ORS 469.470 & 469.503
Stats. Implemented: ORS 469.503
Hist.: EFSC 2-1999, f. & cert. ef. 4-14-99
345-024-0550
Standard for Base Load Gas Plants
To issue a site certificate for a base
load gas plant, the Council must find that the net carbon dioxide emissions rate
of the proposed facility does not exceed 0.675 pounds of carbon dioxide per kilowatt-hour
of net electric power output, with carbon dioxide emissions and net electric power
output measured on a new and clean basis. For a base load gas plant designed with
power augmentation technology as defined in OAR 345-001-0010, the Council shall
apply the standard for a non-base load power plant, as described in OAR 345-024-0590,
to the incremental carbon dioxide emissions from the designed operation of the power
augmentation technology. The Council shall determine whether the base load carbon
dioxide emissions standard is met as follows:
(1) The Council shall determine
the gross carbon dioxide emissions that are reasonably likely to result from the
operation of the proposed energy facility. The Council shall base such determination
on the proposed design of the energy facility. The Council shall adopt site certificate
conditions to ensure that the predicted carbon dioxide emissions are not exceeded
on a new and clean basis.
(2) For any remaining emissions
reduction necessary to meet the applicable standard, the applicant may elect to
use any of the means described in OAR 345-024-0560, or any combination thereof.
The Council shall determine the amount of carbon dioxide or other greenhouse gas
emissions reduction that is reasonably likely to result from the applicant's offsets
and whether the resulting net carbon dioxide emissions meet the applicable carbon
dioxide emissions standard. The amount of greenhouse gas emissions means the pounds
of carbon dioxide and the carbon dioxide equivalent of other greenhouse gases. For
methane, one pound of methane is equivalent to 25 pounds of carbon dioxide. For
nitrous oxide, one pound of nitrous oxide is equivalent to 298 pounds of carbon
dioxide.
(3) If the applicant elects
to comply with the standard using the means described in OAR 345-024-0560(2), the
Council shall determine the amount of greenhouse gas emissions reduction that is
reasonably likely to result from each of the proposed offsets. In making this determination,
the Council shall not allow credit for offsets that have already been allocated
or awarded credit for greenhouse gas emissions reduction in another regulatory setting.
The fact that an applicant or other parties involved with an offset may derive benefits
from the offset other than the reduction of greenhouse gas emissions is not, by
itself, a basis for withholding credit for an offset. The Council shall base its
determination of the amount of greenhouse gas emission reduction on the following
criteria and as provided in OAR 345-024-0680:
(a) The degree of certainty
that the predicted quantity of greenhouse gas emissions reduction will be achieved
by the offset.
(b) The ability of the Council
to determine the actual quantity of greenhouse gas emissions reduction resulting
from the offset, taking into consideration any proposed measurement, monitoring
and evaluation of mitigation measure performance.
(c) The extent to which
the reduction of greenhouse gas emissions would occur in the absence of the offsets.
(4) Before beginning construction,
the certificate holder shall notify the Department of Energy in writing of its final
selection of a gas turbine vendor and shall submit a written design information
report to the Department sufficient to verify the facility’s designed new
and clean heat rate and its nominal electric generating capacity at average annual
site conditions for each fuel type. In the report, the certificate holder shall
include the proposed limits on the annual average number of hours of facility operation
on distillate fuel oil, if applicable. In the site certificate, the Council may
specify other information to be included in the report. The Department shall use
the information the certificate holder provides in the report as the basis for calculating,
according to the site certificate, the amount of greenhouse gas emissions reductions
the certificate holder must provide under OAR 345-024-0560.
Stat. Auth.: ORS 469.470 & 469.503
Stats. Implemented: ORS 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2000, f. & cert. ef. 2-2-00; EFSC 1-2003, f. &
cert. ef. 9-3-03; EFSC 1-2007, f. & cert. ef. 5-15-07; EFSC 1-2012, f. &
cert. ef. 5-15-12; EFCS 2-2013, f. & cert. ef. 9-30-13
345-024-0560
Means of Compliance for
Base Load Gas Plants
The applicant may elect to use
any of the following means, or any combination thereof, to comply with the carbon
dioxide emissions standard for base load gas plants. For a base load gas plant designed
with power augmentation technology, the applicant shall comply with the standard
for a non-base load power plant in the manner as described in OAR 345-024-0600 for
the incremental carbon dioxide emissions from the designed operation of the power
augmentation technology.
(1) Designing and operating
the facility to produce electrical and thermal energy sequentially from the same
fuel source and using the thermal energy to displace another source of carbon dioxide
emissions from fossil fuel that would have otherwise continued to occur. The Council
shall adopt site certificate conditions ensuring that the carbon dioxide emissions
reduction will be achieved.
(2) Implementing offset projects
directly or through a third party, pursuant to OAR 345-024-0680. The Council may
adopt site certificate conditions ensuring that the proposed offset projects are
implemented by the date specified in the site certificate, but shall not require
that predicted levels of avoidance, displacement or sequestration of greenhouse
gas emissions be achieved.
(3) Providing offset funds,
directly or through a third party, in an amount deemed sufficient to produce the
reduction in greenhouse gas emissions necessary to meet the applicable carbon dioxide
emissions standard. The applicant or third party shall use the funds as specified
in OAR 345-024-0710. The Council shall deem the payment of the monetary offset rate,
pursuant to OAR 345-024-0580, to result in a reduction of one ton of carbon dioxide
emissions. The Council shall determine the offset funds using the monetary offset
rate and the level of emissions reduction required to meet the applicable standard.
If the Council issues a site certificate based on this section, the Council may
not adjust the amount of the offset funds based on the actual performance of offsets.
(4) Any other means that the
Council adopts by rule for demonstrating compliance with the carbon dioxide emissions
standard.
(5) If the Council or a court
on judicial review concludes that the applicant has not demonstrated compliance
with the applicable carbon dioxide emissions standard under sections (1), (2) or
(4) of this rule, or any combination thereof, and the applicant agrees to meet the
requirements of section (3) for any deficiency, the Council or a court shall find
compliance based on such agreement.
Stat. Auth.: ORS 469.470 &
469.503
Stats. Implemented: ORS 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2000, f. & cert. ef. 2-2-00; EFSC 1-2000, f. &
cert. ef. 9-17-01; EFSC 1-2002, f. & cert. ef. 4-3-02; EFSC 1-2003, f. &
cert. ef. 9-3-03; EFSC 1-2012, f. & cert. ef. 5-15-12
345-024-0570
Modification of the Standard for Base Load Gas Plants
The Council may by rule modify
the carbon dioxide emissions standard for base load gas plants in OAR 345-024-0550
if the Council finds that the most efficient stand-alone combined cycle, combustion
turbine, natural gas-fired energy facility that is commercially demonstrated and
operating in the United States has a net heat rate of less than 6,955 Btu per kilowatt
hour higher heating value adjusted to ISO conditions. In modifying the carbon dioxide
emission standard, the Council shall determine the rate of carbon dioxide emissions
per kilowatt hour of net electric output of such energy facility, adjusted to ISO
conditions and reset the carbon dioxide emissions standard at 17 percent below this
rate.
Stat. Auth.: ORS 469.470 &
469.503
Stats. Implemented: ORS 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2012, f. & cert. ef. 5-15-12
345-024-0580
Monetary Offset Rate
The monetary offset rate is $1.27 per ton of carbon dioxide emissions. After two years from June 1, 2007, the Council may by rule increase or decrease the monetary offset rate, subject to the requirements of ORS 469.503.
Stat. Auth.: ORS 469.470 & 469.503
Stats. Implemented: ORS 469.503
Hist.: EFSC 2-1999, f. & cert. ef. 4-14-99; EFSC 3-2000, f. & cert. ef. 9-17-01; EFSC 1-2007, f. & cert. ef. 5-15-07
345-024-0590
Standard for Non-Base Load Power Plants
To issue a site certificate for a non-base
load power plant, the Council must find that the net carbon dioxide emissions rate
of the proposed facility does not exceed 0.675 pounds of carbon dioxide per kilowatt-hour
of net electric power output, with carbon dioxide emissions and net electric power
output measured on a new and clean basis. For a base load gas plant designed with
power augmentation technology as defined in OAR 345-001-0010, the Council shall
apply this standard to the incremental carbon dioxide emissions from the designed
operation of the power augmentation technology. The Council shall determine whether
the carbon dioxide emissions standard is met as follows:
(1) The Council shall determine
the gross carbon dioxide emissions that are reasonably likely to result from the
operation of the proposed energy facility. The Council shall base such determination
on the proposed design of the energy facility, the limitation on the hours of generation
for each fuel type and the average temperature, barometric pressure and relative
humidity at the site during the times of the year when the facility is intended
to operate. For a base load gas plant designed with power augmentation technology,
the Council shall base its determination of the incremental carbon dioxide emissions
on the proposed design of the facility, the proposed limitation on the hours of
generation using the power augmentation technology and the average temperature,
barometric pressure and relative humidity at the site during the times of the year
when the facility is intended to operate with power augmentation technology. The
Council shall adopt site certificate conditions to ensure that the predicted carbon
dioxide emissions are not exceeded on a new and clean basis; however, the Council
may modify the parameters of the new and clean basis to accommodate average conditions
at the times when the facility is intended to operate and technical limitations,
including operational considerations, of a non-base load power plant or power augmentation
technology or for other cause.
(2) For any remaining emissions
reduction necessary to meet the applicable standard, the applicant may elect to
use any of the means described in OAR 345-024-0600 or any combination thereof. The
Council shall determine the amount of carbon dioxide or other greenhouse gas emissions
reduction that is reasonably likely to result from the applicant's offsets and whether
the resulting net carbon dioxide emissions meet the applicable carbon dioxide emissions
standard. The amount of greenhouse gas emissions means the pounds of carbon dioxide
and the carbon dioxide equivalent of other greenhouse gases. For methane, one pound
of methane is equivalent to 25 pounds of carbon dioxide. For nitrous oxide, one
pound of nitrous oxide is equivalent to 298 pounds of carbon dioxide.
(3) If the applicant elects
to comply with the standard using the means described in OAR 345-024-0600(2), the
Council shall determine the amount of greenhouse gas emissions reduction that is
reasonably likely to result from each of the proposed offsets. In making this determination,
the Council shall not allow credit for offsets that have already been allocated
or awarded credit for greenhouse gas emissions reduction in another regulatory setting.
The fact that an applicant or other parties involved with an offset may derive benefits
from the offset other than the reduction of greenhouse gas emissions is not, by
itself, a basis for withholding credit for an offset. The Council shall base its
determination of the amount of greenhouse gas emission reduction on the following
criteria and as provided in OAR 345-024-0680:
(a) The degree of certainty
that the predicted quantity of greenhouse gas emissions reduction will be achieved
by the offset.
(b) The ability of the Council
to determine the actual quantity of greenhouse gas emissions reduction resulting
from the offset, taking into consideration any proposed measurement, monitoring
and evaluation of mitigation measure performance.
(c) The extent to which
the reduction of greenhouse gas emissions would occur in the absence of the offsets.
(4) Before beginning construction,
the certificate holder shall notify the Department of Energy in writing of its final
selection of an equipment vendor and shall submit a written design information report
to the Department sufficient to verify the facility’s designed new and clean
heat rate and its nominal electric generating capacity at average annual site conditions
for each fuel type. For a base load gas plant designed with power augmentation technology,
the certificate holder shall include in the report information sufficient to verify
the facility’s designed new and clean heat rate, tested under parameters the
Council orders pursuant to section (1), and the nominal electric generating capacity
at average site conditions during the intended use for each fuel type from the operation
of the proposed facility using the power augmentation technology. The certificate
holder shall include the proposed limit on the annual average number of hours for
each fuel used, if applicable. The certificate holder shall include the proposed
total number of hours of operation for all fuels, subject to the limitation that
the total annual average number of hours of operation per year is not more than
6,600 hours. In the site certificate, the Council may specify other information
to be included in the report. The Department shall use the information the certificate
holder provides in the report as the basis for calculating, according to the site
certificate, the gross carbon dioxide emissions from the facility and the amount
of greenhouse gas emissions reductions the certificate holder must provide under
OAR 345-024-0600.
(5)(a) Every five years
after commencing commercial operation, the certificate holder shall report to the
Council the facility's actual gross carbon dioxide emissions. The certificate holder
shall calculate actual gross carbon dioxide emissions using the new and clean heat
rate and the actual hours of operation on each fuel during the five-year period
or shall report to the Council the actual measured or calculated carbon dioxide
emissions as reported to either the Oregon Department of Environmental Quality or
the U.S. Environmental Protection Agency pursuant to a mandatory carbon dioxide
emissions reporting requirement.
(b) The certificate holder
shall specify its election of method used to measure or calculate carbon dioxide
emissions in the notification report described at section (4) of this rule. That
election, once made, shall apply for each five year period unless the site certificate
is amended to allow a different election. If the certificate holder calculates
actual carbon dioxide emissions using the new and clean heat rate and the actual
hours of operation, the certificate holder shall also report to the Council the
facility’s actual annual hours of operation by fuel type. If the actual gross
carbon dioxide emissions exceed the projected gross carbon dioxide emissions for
the five-year period calculated under section (4), the certificate holder shall
offset any excess emissions for that period and shall offset estimated future excess
carbon dioxide emissions using the monetary path as described in OAR 345-024-0600(3)
and (4) or as approved by the Council.
(6) For a base load gas
plant designed with power augmentation technology, every five years after commencing
commercial operation, the certificate holder shall report to the Council the facility’s
actual hours of operation using the power augmentations technology for each fuel
type. If the actual gross carbon dioxide emissions, calculated using the new and
clean heat rate, tested under parameters the Council orders pursuant to section
(1), and the actual hours of operation using the power augmentation technology on
each fuel during the five-year period exceed the projected gross carbon dioxide
emissions for the five-year period calculated under section (4), the certificate
holder shall offset any excess emissions for that period and shall offset estimated
future excess carbon dioxide emissions using the monetary path as described in OAR
345-024-0600(3) and (4) or as approved by the Council.
Stat. Auth.: ORS 469.470 & 469.503
Stats. Implemented: ORS 469.501
& 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2000, f. & cert. ef. 2-2-00; EFSC 1-2002, f. &
cert. ef. 4-3-02; EFSC 1-2003, f. & cert. ef. 9-3-03; EFSC 1-2007, f. &
cert. ef. 5-15-07; EFSC 1-2009, f. & cert. ef. 11-24-09; EFSC 1-2012, f. &
cert. ef. 5-15-12; EFSC 2-2013, f. & cert. ef. 9-30-13; EFSC 3-2013, f. &
cert. ef. 10-10-13
345-024-0600
Means of Compliance for Non-Base Load Power Plants
The applicant may elect to use
any of the following means, or any combination thereof, to comply with the carbon
dioxide emissions standard for non-base load power plants or for the incremental
carbon dioxide emissions from the operation of a base load gas plant with power
augmentation technology:
(1) Designing and operating
the facility to produce electrical and thermal energy sequentially from the same
fuel source and using the thermal energy to displace another source of carbon dioxide
emissions from fossil fuels that would have otherwise continued to occur. The Council
shall adopt site certificate conditions ensuring that the carbon dioxide emissions
reduction will be achieved.
(2) Implementing offset projects
directly or through a third party, pursuant to OAR 345-024-0680. The Council may
adopt site certificate conditions ensuring that the proposed offset projects are
implemented by the date specified in the site certificate, but shall not require
that predicted levels of avoidance, displacement or sequestration of greenhouse
gas emissions be achieved.
(3) Providing offset funds,
directly or through a third party, in an amount deemed sufficient to produce the
reduction in greenhouse gas emissions necessary to meet the applicable carbon dioxide
emissions standard. The applicant or third party shall use the funds as specified
in OAR 345-024-0710. The Council shall deem the payment of the monetary offset rate,
pursuant to OAR 345-024-0580, to result in a reduction of one ton of carbon dioxide
emissions. The Council shall determine the offset funds using the monetary offset
rate and the level of emissions reduction required to meet the applicable standard.
If the Council issues a site certificate based on this section, the Council may
not adjust the amount of the offset funds based on the actual performance of offsets.
(4) Notwithstanding sections
(1), (2) or (3), if the certificate holder exceeds the projected gross carbon dioxide
emissions calculated under OAR 345-024-0590(4) during any five-year reporting period
described in OAR 345-024-0590(5) and (6), the certificate holder shall offset excess
emissions for the specific reporting period according to subsection (a) and shall
offset the estimated future excess emissions according to subsection (b). The certificate
holder shall offset excess emissions using the monetary path as described in subsection
(c) and OAR 345-024-0710 or as approved by the Council.
(a) In determining the excess
carbon dioxide emissions that the certificate holder must offset for a five-year
period, the Council shall credit the certificate holder with offsets equal to the
difference between the carbon dioxide emissions allowed by the site certificate
in previous periods and actual emissions, if actual emissions were lower than allowed.
Once a certificate holder has used a credit, the certificate holder shall not use
it again.
(b) The Council shall specify
in the site certificate a methodology for estimating future excess carbon dioxide
emissions. The Department of Energy shall calculate estimated future excess
emissions. To estimate excess emissions for the remaining period of the deemed life
of the facility, the Department shall use the annual average number of hours of
operation during the five-year period in which the certificate holder exceeded the
estimated gross carbon dioxide emissions described in OAR 345-024-0590(5) and the
new and clean heat rate and capacity for the facility, adjusted for the average
temperature, barometric pressure and relative humidity at the site during the times
of the year when the facility is intended to operate. If the annual average hours
exceed 6,600, the Department shall estimate emissions at 100 percent capacity for
the remaining period of a deemed 30-year life of the facility. At the request of
the certificate holder, the Council may, by amendment of the site certificate, use
an alternative methodology to estimate future excess carbon dioxide emissions.
(c) The certificate holder shall pay for
the net excess carbon dioxide emissions calculated pursuant to subsections (a) and
(b) at the monetary path offset rate in real dollars for the quarter and year in
which the Council issued the final order that applied the carbon dioxide standard.
The Council shall specify in the site certificate the methodology for calculating
the real dollar value of the monetary offset rate. The Department shall calculate
the net excess carbon dioxide emissions and notify the certificate holder of the
amount of the monetary path payment required to offset them. The certificate holder
shall pay fully the required amount to the qualified organization within 60 days
of notification by the Department of the amount. The certificate holder shall not
be eligible for a refund of any monetary path payments due to the calculations in
this rule.
(5) Any other means that the
Council adopts by rule for demonstrating compliance with the carbon dioxide emissions
standard.
(6) If the Council or a court
on judicial review concludes that the applicant has not demonstrated compliance
with the applicable carbon dioxide emissions standard under sections (1), (2) or
(5) of this rule, or any combination thereof, and the applicant agrees to meet the
requirements of sections (3) and (4) for any deficiency, the Council or a court
shall find compliance based on such agreement.
Stat. Auth.: ORS 469.470 &
469.503
Stats. Implemented: ORS 469.501
& 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2000, f. & cert. ef. 2-2-00; EFSC 3-2001, f. &
cert. ef. 9-17-01; EFSC 1-2002, f. & cert. ef. 4-3-02; EFSC 1-2003, f. &
cert. ef. 9-3-03; EFSC 1-2007, f. & cert. ef. 5-15-07; EFSC 1-2012, f. &
cert. ef. 5-15-12
345-024-0610
Modification of the Standard
for Non-Base Load Power Plants
The Council may by rule modify
the carbon dioxide emissions standard for non-base load power plants in OAR 345-024-0590
so that the standard remains equivalent to the standard for the net carbon dioxide
emissions rate of a base load gas plant, subject to the principles described in
OAR 345-024-0510.
Stat. Auth.: ORS 469.470 &
469.503
Stats. Implemented: ORS 469.501
& 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2002, f. & cert. ef. 4-3-02; EFSC 1-2012, f. &
cert. ef. 5-15-12
345-024-0620
Standard for Nongenerating
Energy Facilities
To issue a site certificate
for a nongenerating energy facility that emits carbon dioxide, the Council must
find that the net carbon dioxide emissions rate of the proposed facility does not
exceed 0.504 pounds of carbon dioxide per horsepower hour. The Council shall determine
whether the carbon dioxide emissions standard is met as follows:
(1) The Council shall determine
the gross carbon dioxide emissions that are reasonably likely to result from the
operation of the proposed energy facility. The Council shall base such determination
on the proposed design of the energy facility. In determining gross carbon dioxide
emissions for a nongenerating facility, the Council shall calculate carbon dioxide
emissions for a 30-year period unless the applicant requests, and the Council adopts
in the site certificate, a different period. The Council shall determine gross carbon
dioxide emissions based on its findings of the reasonably likely operation of the
energy facility. The Council shall use 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), if
the applicant proposes to use such fuel. If the applicant proposes to use any other
fossil fuel, the Council shall adopt by rule an appropriate carbon dioxide content
rate for the fuel.
(2) For any remaining emissions
reduction necessary to meet the applicable standard, the applicant may elect to
use any of the means described in OAR 345-024-0630 or any combination thereof. The
Council shall determine the amount of carbon dioxide or other greenhouse gas emissions
reduction that is reasonably likely to result from the applicant's offsets and whether
the resulting net carbon dioxide emissions meet the applicable carbon dioxide emissions
standard. The amount of greenhouse gas emissions means the pounds of carbon dioxide
and the carbon dioxide equivalent of other greenhouse gases. For methane, one pound
of methane is equivalent to 23 pounds of carbon dioxide. For nitrous oxide, one
pound of nitrous oxide is equivalent to 296 pounds of carbon dioxide.
(3) If the applicant elects
to comply with the standard using the means described in OAR 345-024-0630(1), the
Council shall determine the amount of greenhouse gas emissions reduction that is
reasonably likely to result from each of the proposed offsets. In making this determination,
the Council shall not allow credit for offsets that have already been allocated
or awarded credit for greenhouse gas emissions reduction in another regulatory setting.
The fact that an applicant or other parties involved with an offset may derive benefits
from the offset other than the reduction of greenhouse gas emissions is not, by
itself, a basis for withholding credit for an offset. The Council shall base its
determination of the amount of greenhouse gas emission reduction on the following
criteria and as provided in OAR 345-024-0680:
(a) The degree of certainty
that the predicted quantity of greenhouse gas emissions reduction will be achieved
by the offset.
(b) The ability of the Council
to determine the actual quantity of greenhouse gas emissions reduction resulting
from the offset, taking into consideration any proposed measurement, monitoring
and evaluation of mitigation measure performance.
(c) The extent to which the
reduction of greenhouse gas emissions would occur in the absence of the offsets.
(4) Before beginning construction,
the certificate holder shall notify the Department of Energy in writing of its final
selection of an equipment manufacturer and shall submit a written design information
report to the Department sufficient to verify the facility’s designed rate
of fuel use and its nominal capacity for each fuel type. In the site certificate,
the Council may specify other information to be included in the report. The Department
shall use the information the certificate holder provides in the report as the basis
for calculating, according to the site certificate, the amount of greenhouse gas
emissions reductions the certificate holder must provide under OAR 345-024-0630.
(5) In the site certificate,
the Council shall specify the schedule by which the certificate holder shall provide
offsets. In the schedule, the Council shall specify the amount and timing of offsets
the certificate holder must provide to an offset credit account. In determining
the amount and timing of offsets, the Council may consider the estimate of total
offsets that may be required for the facility and the minimum amount of offsets
needed for effective offset projects. The Department shall maintain the record of
the offset credit account.
Stat. Auth.: ORS 469.470 &
469.501
Stats. Implemented: ORS 469.501
& 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2002, f. & cert. ef. 4-3-02; EFSC 1-2003, f. &
cert. ef. 9-3-03; EFSC 1-2007, f. & cert. ef. 5-15-07; EFSC 1-2012, f. &
cert. ef. 5-15-12
345-024-0630
Means of Compliance for
Nongenerating Energy Facilities
The applicant may elect to use
any of the following means, or any combination thereof, to comply with the carbon
dioxide emissions standard for nongenerating energy facilities:
(1) Implementing offset projects
directly or through a third party, pursuant to OAR 345-024-0680. The Council may
adopt site certificate conditions ensuring that the proposed offset projects are implemented by the date specified in the site certificate,
but shall not require that predicted levels of avoidance, displacement or sequestration
of greenhouse gas emissions be achieved.
(2) Providing offset funds, directly or
through a third party, in an amount deemed sufficient to produce the reduction in
greenhouse gas emissions necessary to meet the applicable carbon dioxide emissions
standard according to the schedule set forth pursuant to OAR 345-024-0620(5). The
applicant or third party shall use the funds as specified in 345-024-0710. The
Council shall deem the payment of the monetary offset rate, pursuant to 345-024-0580,
to result in a reduction of one ton of carbon dioxide emissions. The Council shall
determine the offset funds using the monetary offset rate and the level of emissions
reduction required to meet the applicable standard. If the Council issues a site
certificate based on this section, the Council may not adjust the amount of the
offset funds based on the actual performance of offsets.
(3) Any other means that the
Council adopts by rule for demonstrating compliance with the carbon dioxide emissions
standard.
(4) Each year after beginning
commercial operation, the certificate holder shall report to the Department of Energy
data showing the amount and type of fossil fuels used by the facility and its horsepower-hours
of operation. The Council shall specify in the site certificate how the Department
shall use those data to calculate the gross carbon dioxide emissions from the facility
during the report year and the net emissions in excess of the carbon dioxide emissions
standard. The Department shall then subtract excess emissions from the offset credit
account. The Council shall specify in the site certificate the minimum amount of
offset credits that a certificate holder shall provide to establish the offset credit
account. The Council may specify an amount of offset credits equal to the total
offsets required for the facility. The Council shall specify the minimum amount
of offset credits that a certificate holder must maintain in the account and the
minimum amount of offset credits the certificate holder shall provide to replenish
the account. The Department shall notify the certificate holder when it must replenish
its offset credit account according to the conditions in the site certificate. The
certificate holder shall maintain a positive balance in the offset credit account
for 30 years, unless the Council specifies a different period in the site certificate.
(5) If the certificate holder
is replenishing its offset credit account by meeting the monetary path payment requirement
described in OAR 345-024-710, the certificate holder may replenish its offset credit
account without amending the site certificate by using the calculation methodology
detailed in conditions that the Council adopts in the site certificate.
(6) If the certificate holder
proposes to replenish the offset credit account under OAR 345-024-0630(1), the Council
may amend the site certificate conditions to ensure that the proposed offset projects
are implemented.
(7) If the Council or a court
on judicial review concludes that the applicant has not demonstrated compliance
with the applicable carbon dioxide emissions standard under sections (1), (3) or
(6) of this rule, or any combination thereof, and the applicant agrees to meet the
requirements of section (2) for any deficiency, the Council or a court shall find
compliance based on such agreement.
Stat. Auth.: ORS 469.470 &
469.501
Stats. Implemented: ORS 469.501
& 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 3-2001, f. & cert. ef. 9-17-01; EFSC 1-2002, f. &
cert. ef. 4-3-02; EFSC 1-2003, f. & cert. ef. 9-3-03; EFSC 1-2007, f. &
cert. ef. 5-15-07; EFSC 1-2012, f. & cert. ef. 5-15-12
345-024-0640
Modification of the Standard for Nongenerating Energy Facilities
The Council may by rule modify
the carbon dioxide emissions standard for nongenerating energy facilities in OAR
345-024-0620 so that it remains equivalent to the standard for the net carbon dioxide
emissions rate of a base load power plant.
Stat. Auth.: ORS 469.470 &
469.501
Stats. Implemented: ORS 469.501
& 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2002, f. & cert. ef. 4-3-02; EFSC 1-2012, f. &
cert. ef. 5-15-12
345-024-0680
Offset Projects
This rule applies if the applicant
elects to meet the applicable carbon dioxide emissions standard in whole or in part
under OAR 345-024-0550(3), OAR 345-024-0560(2), OAR 345-024-0590(3), OAR 345-024-0600(2),
OAR 345-024-0620(3), or OAR 345-024-0630(1).
(1) Types of offset projects
include, but are not limited to: energy efficiency, including demand-side management
measures for electricity and natural gas; electricity generation from renewable
energy; fuel switching; carbon dioxide sequestration through afforestation, reforestation,
forest management and forest conservation; flue gas carbon dioxide sequestration;
methane capture and destruction from landfill and biogas methane (animal waste and
waste water) or from fugitive methane emissions from existing or abandoned coal
mines; nitrogen fertilizer management in agricultural applications; and vehicle
carbon dioxide emissions reductions.
(2) In order to approve an offset
project, the Council must find that:
(a) The offset project is likely
to result in an avoidance, reduction or displacement of actual greenhouse gas emissions
from fossil fuels or the sequestration of greenhouse gas emissions resulting from
specific and identifiable actions;
(b) The Council can quantify
the amount of greenhouse gas offsets, taking into consideration any proposed measurement,
monitoring, evaluation and verification of offset project measure performance;
(c) The offsets are not susceptible
to double-counting. For offsets from demand-side management measures reducing use
of utility-provided electricity or natural gas, it may suffice that the certificate
holder or its agent notify the utility that the certificate holder claims ownership
of the greenhouse gas reductions;
(d) The applicant will own all
greenhouse gas offsets that it proposes to provide;
(e) The applicant has provided
a form of the instrument, satisfactory to the Council, through which the applicant
will transfer all offsets from a project that an applicant will own to the Council
for the Council to hold in trust;
(f) The applicant has the financial
and institutional capability to deliver the project for its duration; and
(g) The applicant has provided
an adequate monitoring and evaluation plan and an adequate plan for independent
verification of the offsets. The monitoring and evaluation plan and the verification
plan shall detail the record-keeping, data collection, data storage, data management
program, and reporting guidelines and procedures.
(3) If the applicant proposes
to implement a project in partnership with other parties or through contracts with
other parties, the Council must find that:
(a) The other parties have the
financial and institutional capability to deliver the project; and
(b) The applicant has a firm
commitment from the other parties to participate in the project.
(4) If the applicant is proposing
an offset project in another country, the Council must find that the host country
has approved the transfer of the ownership of the greenhouse gas offsets to the
applicant for the Council to hold in trust.
(5) The Council shall adjust
its estimates of offsets to account for leakage, which is the extent to which events
occurring outside the offset project boundary affect an offset project’s total
greenhouse gas emissions.
(6) The Council shall not approve
any offsets related to nuclear power.
(7) The Council may reject an
offset project based on undesirable long-term environmental impacts from the implementation
of the offset project that the Council considers to be significant and reasonably
likely to occur.
(8) The applicant may propose
offset projects that provide offsets for up to 30 years after beginning commercial
operation of a facility, or if an applicant proposes to provide offsets for more
than 30 years after the beginning of commercial operation of a facility, the Council
must find that:
(a) There will be a viable organization that will continue
to manage an offset project for a longer period than the duration of the site certificate;
(b) The Council can maintain oversight
of the project and hold the responsible organization to the requirements of the
site certificate; and
(c) The responsible organization
will transfer offsets to the Council after the certificate holder retires the energy
facility.
(9) The certificate holder shall
begin implementation of projects approved in the site certificate before beginning
construction of its facility, and:
(a) The certificate holder shall
provide the Council copies of executed contracts or binding agreements with offset
providers, including steam hosts for cogeneration if proposed, before beginning
construction of its facility, and
(b) The certificate holder shall
ensure that offset project implementation begins immediately upon execution of a
contract or binding agreement with an offset provider and that the measures are
fully implemented within five years, unless the Council approves a longer implementation
period through a site certificate condition.
(10) The certificate holder
shall not sell or trade its offsets or allow any other entity to report or use the
offsets.
(11) The Council shall hold
the offsets in trust for the benefit of the State of Oregon.
(12) If the Council approves,
a certificate holder may use offsets in a future national regulatory regimen if
the Council determines that such use does not undermine the integrity of the Council’s
carbon dioxide standard. Such approval shall not require an amendment of the site
certificate.
(13) The site certificate holder
shall report to the Council annually on the performance of offset projects, pursuant
to the monitoring and evaluation plan and to the verification plan, and shall explain
changes from the offset benefits projected in the Council’s analysis of the
offset projects.
(14) The certificate holder
shall provide copies of all monitoring and evaluation reports and any verification
reports from the independent entity to the Department of Energy.
(15) The certificate holder
shall provide any raw data upon the request of the Department.
(16) The site certificate holder
shall make its offset project financial records available for the life of the facility
for auditing by the Council or by a party that the Council designates.
Stat. Auth.: ORS 469.470 &
469.501
Stats. Implemented: ORS 469.501
& 469.503
Hist.: EFSC 1-2003, f. &
cert. ef. 9-3-03; EFSC 1-2007, f. & cert. ef. 5-15-07; EFSC 1-2012, f. &
cert. ef. 5-15-12
345-024-0710
Monetary Path Payment
Requirement
(1) If the applicant elects
to meet the applicable carbon dioxide emissions standard in whole or in part under
OAR 345-024-0560(3), OAR 345-024-0600(3) or OAR 345-024-0630(2), (4) and (5), the
applicant shall provide a bond or letter of credit in a form reasonably acceptable
to the Council to ensure the payment of the offset funds and the additional funds
required under section (4) of this rule. The applicant shall provide such security
by the date specified in the site certificate. In the site certificate, the Council
shall specify a date no later than the commencement of construction of the facility
for base load gas plants and non-base load power plants. For nongenerating facilities,
the Council shall specify a date no later than the commencement of construction
of the facility for providing the initial bond or letter of credit, and the Council
shall specify conditions for providing subsequent incremental payments to meeting
the monetary path payment requirement. The certificate holder for a nongenerating
facility must meet its incremental monetary path payment requirements before exhausting
its offset credit account, as described in OAR 345-024-0630(4). In no case shall
the applicant diminish the bond or letter of credit or receive a refund from a qualified
organization based on the calculations of the facility's emissions on a new and
clean basis for a fossil-fueled power plant or any other measure for a nongenerating
energy facility. A qualified organization shall not refund any offset funds to a
certificate holder based on the operation or performance of a non-base load power
plant during any five-year period reported under OAR 345-024-0590(5) or, for a nongenerating
facility, on any offset credits the certificate holder provided under OAR 345-024-0620(5).
(2) In the site certificate,
the Council shall require the certificate holder to disburse the offset funds and
other funds required as specified in sections (3) and (4), unless the Council finds
that no qualified organization exists, in which case the Council shall require the
certificate holder to disburse the offset funds as specified in OAR 345-024-0720(2).
(3) When the certificate holder
receives written notice from the qualified organization certifying that the qualified
organization is contractually obligated to pay any funds to implement offsets using
the offset funds, the certificate holder shall make the requested amount available
to the qualified organization unless the total of the amount requested and any amounts
previously requested exceeds the offset funds, in which case the certificate holder
shall make available only the remaining amount of the offset funds. The qualified
organization shall use at least 80 percent of the offset funds for contracts to
implement offsets. The qualified organization shall assess offsets for their potential
to qualify in, generate credits in or reduce obligations in other regulatory settings.
The qualified organization may use up to 20 percent of the offset funds for monitoring,
evaluation, administration and enforcement of contracts to implement offsets.
(4) At the request of the qualified
organization and in addition to the offset funds, the certificate holder shall pay
the qualified organization an amount equal to 10 percent of the first $500,000 of
the offset funds and 4.286 percent of any offset funds in excess of $500,000. The
certificate holder for a base load gas plant shall pay not less than $50,000, unless
the Council specifies a lesser amount in the site certificate. In the site certificate,
the Council may specify a minimum amount that other fossil-fueled power plants or
nongenerating energy facilities must pay. This payment compensates the qualified
organization for its costs of selecting offsets and contracting for the implementation
of offsets.
(5) Notwithstanding any provision
to the contrary, a certificate holder subject to this rule has no obligation with
regard to offsets, the offset funds or the funds required by section (4) other than
to make available to the qualified organization the total amount required under
OAR 345-024-0560(3), OAR 345-024-0600(3) and (4), OAR 345-024-0630(2), (4) and (5),
and section (4) of this rule. The Council shall not base a revocation of the site
certificate or any other enforcement action with respect to the certificate holder
on any nonperformance, negligence or misconduct by the qualified organization.
(6) For monetary path payments
a certificate holder must make before beginning construction, the certificate holder
shall make all offset fund payments and all payments required by section (4) to
the qualifying organization in real dollars of the year in which the Council issues
a final order applying the carbon dioxide emissions standard to the energy facility.
In the site certificate, the Council shall specify an appropriate inflation index
for calculating real dollars. For a non-base load power plant, if a certificate
holder must make a payment as described in OAR 345-024-0600(4), the certificate
holder shall make a payment that has the same present value per ton of carbon dioxide
as the monetary path offset rate of the year in which the Council issued the final
order applying the carbon dioxide standard. In the site certificate, the Council
shall specify the methodology for calculating present value. If the certificate
holder of a nongenerating facility must make payments as described in OAR 345-024-0630(4)
and (5), the Council shall specify in the site certificate the method for calculating
the rate for the dollar value per ton of carbon dioxide required according to subsection
(a) or (b) below:
(a) Unless the applicant and
the Council agree to the methodology in subsection (b), the certificate holder shall
make payments that have the same present value per ton of carbon dioxide as the
monetary path offset rate of the year in which the Council issued the final order
applying the carbon dioxide standard. The Council shall set an appropriate discount
rate for calculating the present value, using the cost of capital most recently
approved by a state utility regulatory commission for that utility or a similar
utility as a guide; or
(b) If the applicant requests and the Council agrees, the
certificate holder shall make payments at the monetary path offset rate in effect
on the date the certificate holder makes the payment.
Stat. Auth.: ORS 469.470
Stats. Implemented: ORS 469.501
& 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2002, f. & cert. ef. 4-3-02; EFSC 1-2012, f. &
cert. ef. 5-15-12
345-024-0720
Qualified Organization
(1) If the applicant elects to meet
the applicable carbon dioxide emissions standard in whole or in part under OAR 345-024-0560(3),
345-024-0600(3) and (4), or 345-024-0630(2), (4) and (5), the applicant shall identify
the qualified organization. The applicant may identify an organization that has
applied for, but has not received, an exemption from federal income taxation, but
the Council may 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.
(2) If the Council finds
there is no qualified organization, the certificate holder shall disburse the offset
funds according to one or more contracts for implementation of offsets as determined
by the following process:
(a) The Council shall establish
criteria for selection of offsets, based on the reduction of net carbon dioxide
emissions and the criteria set forth in OAR 345-024-0550(3) for base load plants,
345-024-0590(3) for non-base load power plants and 345-024-0620(3) for nongenerating
facilities. The Council may consider the costs of particular types of offsets in
relation to the expected benefits of such offsets. In establishing criteria, the
Council shall not require the certificate holder to select particular offsets and
shall allow the certificate holder a reasonable range of choices in selecting offsets.
(b) Based on the criteria
established by the Council, the certificate holder shall select one or more offsets.
The certificate holder shall give written notice of its selections to the Council
and to any person requesting notice. For the purposes of this rule, the date of
notice is the date the certificate holder places the notice in the United States
mail, with first-class postage prepaid.
(c) On petition by the Department
of Energy or by any person adversely affected or aggrieved by the certificate holder's
selection of offsets, or on the Council’s own motion, the Council may review
the selection. The petition must be received by the Council within 30 days of the
date of notice.
(d) The Council shall approve
the certificate holder's selection unless it finds that the selection is not consistent
with criteria established under subsection (a).
(e) The certificate holder
shall execute one or more contracts to implement the selected offsets within 18
months after commencing construction of the facility unless the Council allows additional
time based on a showing of good cause by the certificate holder. If a certificate
holder would have made a payment to a qualified organization as described in OAR
345-024-0600(4) or 345-024-0630(4) or (5), the certificate holder shall instead
execute one or more contracts to implement the selected offsets, by a method acceptable
to the Council, within 18 months after reporting to the Council as described in
345-024-0590(5) or within 18 months after the Department notifies the certificate
holder that the certificate holder must replenish the offset credit account as described
in 345-024-0630(4). The certificate holder shall, under such contracts, obligate
the expenditure of at least 85 percent of the offset funds for the implementation
of offsets. The certificate holder may spend no more than 15 percent of the offset
funds on monitoring, evaluation and enforcement of such contracts.
(f) The certificate holder’s
financial liability for implementation, monitoring, evaluation and enforcement of
offsets under this subsection (2) is limited to the amount of any offset funds not
already contractually obligated. The Council shall not base a revocation of the
site certificate or any other enforcement action with respect to the certificate
holder on any nonperformance, negligence or misconduct by the entity or entities
implementing, monitoring or evaluating the selected offsets.
(3) Every qualified organization
that has received funds under this rule shall, at five-year intervals beginning
on the date of receipt of such funds, provide the Council with the information the
Council requests about the qualified organization's performance. The Council shall
evaluate the information requested and, based on such information, shall make recommendations
to the Legislative Assembly that the Council deems appropriate.
Stat. Auth.: ORS 469.470
Stats. Implemented: ORS 469.501
& 469.503
Hist.: EFSC 2-1999, f. &
cert. ef. 4-14-99; EFSC 1-2007, f. & cert. ef. 5-15-07; EFSC 1-2012, f. &
cert. ef. 5-15-12; EFSC 2-2015, f. & cert. ef. 10-20-15
The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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