Summary
Details
- Oregon
The Oregon Clean Fuels Program applies primarily to importers of gasoline, diesel, ethanol, biodiesel, and renewable diesel, as well as in-state producers of transportation fuels. Other entities—including electricity providers, EV charging operators, natural gas suppliers, hydrogen suppliers, and producers of certain alternative fuels—may voluntarily participate to generate clean fuel credits.
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Background
The transportation sector is Oregon's largest source of greenhouse gas emissions, making it a central focus of the state's climate strategy. The Clean Fuels Program was established by House Bill 2186 (2009), which authorized the Environmental Quality Commission (EQC) to adopt rules reducing the lifecycle greenhouse gas emissions of transportation fuels. The program was implemented through administrative rules adopted by the EQC, with Senate Bill 324 (2015) removing the original sunset provision and making the program permanent. More recently, House Bill 3409 (2022) strengthened the program by increasing its carbon intensity reduction targets.
The program measures the carbon intensity (CI) of transportation fuels based on their lifecycle greenhouse gas emissions—from production and transportation through to end use. DEQ assigns carbon intensity values to approved fuel pathways and sets progressively stricter annual clean fuel standards. The current trajectory requires regulated fuels to achieve a 20% reduction in average carbon intensity from 2015 levels by 2030 and 37% by 2035.
Fuel suppliers whose products exceed the annual carbon intensity standard generate deficits, while suppliers of lower-carbon fuels generate credits. Credits may be traded or banked for future compliance, creating a market-based incentive to expand the supply of cleaner transportation fuels such as renewable diesel, biodiesel, renewable natural gas, electricity, hydrogen, and sustainable aviation fuel.
Reporting and Compliance Requirements
Registered parties participating in the program must:
Register with DEQ before supplying regulated fuels or generating credits.
Maintain records of fuel transactions and carbon intensity data.
Submit quarterly reports through the Oregon Fuels Reporting System (OFRS). Initial transaction data is uploaded within 45 days after each quarter, reconciled with business partners, and finalized within 90 days.
Submit an annual compliance report demonstrating that sufficient credits have been retired to offset any deficits incurred during the reporting year.
Use the Oregon Fuels Reporting System (OFRS) to report fuel transactions, generate credits and deficits, register fuel pathways where applicable, and complete credit transfers.
Penalties for Non-Compliance
The Oregon Department of Environmental Quality (DEQ) enforces the Clean Fuels Program through administrative orders, audits, and civil penalties. Regulated parties that fail to register, submit required reports, maintain records, or meet annual compliance obligations may face enforcement action under Oregon environmental law. Enforcement has included civil penalties for reporting and compliance failures. For example, in January 2026, DEQ issued a civil penalty of US$28,966 against BNSF Railway Co. for violations relating to greenhouse gas reporting and the Clean Fuels Program. In addition to the monetary penalty, the company was required to register as a regulated party and submit overdue quarterly reports through the Oregon Fuels Reporting System (OFRS).
Current Status and Outlook
The Clean Fuels Program has become one of Oregon's principal transportation decarbonisation policies. As the annual carbon intensity standards become more stringent, the program is expected to drive increased deployment of renewable fuels, electric vehicle charging infrastructure, renewable natural gas, hydrogen, and other low-carbon transportation technologies. DEQ continues to update fuel pathways, reporting guidance, and program rules to reflect technological developments and support long-term emissions reduction goals.
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