2017 ORS 468A.274¹
Emergency deferral
  • order
  • methods for deferring compliance
  • duration

(1) The Department of Environmental Quality shall issue an order declaring an emergency deferral:

(a) No later than 15 calendar days after the date that the department determines that:

(A) There is a known shortage of a fuel or low carbon fuel that is needed for regulated parties to comply with the low carbon fuel standard; and

(B) The magnitude of the shortage of that fuel is greater than the equivalent of five percent of the amount of the fuel forecasted to be available during the effective compliance period; or

(b) Immediately upon the issuance by the Governor of a proclamation, executive order or directive pursuant to ORS 176.750 (“Energy resources” defined) to 176.815 (Cooperation with local governments) declaring an energy emergency due to a shortage of gasoline or diesel.

(2) An order declaring an emergency deferral under this section must set forth:

(a) The duration of the emergency deferral;

(b) The types of fuel to which the emergency deferral applies; and

(c) Which of the following methods the department has selected for deferring compliance with the scheduled applicable low carbon fuel standard during the emergency deferral:

(A) Temporarily adjusting the scheduled applicable low carbon fuel standard to a standard identified in the order that better reflects the availability of credits during the emergency deferral and requiring regulated parties to comply with the temporary standard;

(B) Allowing for the carryover of deficits accrued during the emergency deferral into one or more future compliance periods without penalty; or

(C) Suspending deficit accrual during the emergency deferral period.

(3)(a) In implementing an emergency deferral, the department may take an action for deferring compliance with the low carbon fuel standard other than, or in addition to, selecting a method under subsection (2)(c) of this section only if the department determines that none of the methods under subsection (2)(c) of this section will provide a sufficient mechanism for containing the costs of compliance with the low carbon fuel standards during the emergency deferral.

(b) If the department makes the determination specified in paragraph (a) of this subsection, the department shall:

(A) Include in the order declaring an emergency deferral the determination and the action to be taken; and

(B) Provide written notification and justification of the determination and the action to:

(i) The Governor;

(ii) The President of the Senate;

(iii) The Speaker of the House of Representatives;

(iv) The majority and minority leaders of the Senate; and

(v) The majority and minority leaders of the House of Representatives.

(4)(a) Except as provided in paragraph (b) of this subsection, the duration of an emergency deferral:

(A) Implemented using the method described in subsection (2)(c)(A) of this section may not be less than one calendar quarter; and

(B) Implemented using a method described in subsection (2)(c)(B) or (C) or subsection (3) of this section may not be less than 30 calendar days.

(b) An emergency deferral may not continue past the end of the compliance period during which the emergency deferral is issued.

(c) An emergency deferral may be terminated prior to the expiration date of the emergency deferral only if new information becomes available indicating that the shortage for which the emergency deferral was issued has ended. Only the Environmental Quality Commission may terminate, by order, an emergency deferral before the expiration date of the emergency deferral. Termination of an emergency deferral is effective 15 calendar days after the date that the order declaring the termination is adopted. [2017 c.750 §165]

Note: The amendments to 468A.274 (Emergency deferral) by section 169, chapter 750, Oregon Laws 2017, become operative January 1, 2019. See section 168, chapter 750, Oregon Laws 2017. The text that is operative on and after January 1, 2019, is set forth for the user’s convenience.

468A.274 (Emergency deferral). (1) The Department of Environmental Quality shall issue an order declaring an emergency deferral:

(a) No later than 15 calendar days after the date that the department determines that:

(A) There is a known shortage of a fuel or low carbon fuel that is needed for regulated parties to comply with the low carbon fuel standard; and

(B) The magnitude of the shortage of that fuel is greater than the equivalent of five percent of the amount of the fuel forecasted to be available during the effective compliance period; or

(b) Immediately upon the issuance by the Governor of a proclamation, executive order or directive pursuant to ORS 176.750 (“Energy resources” defined) to 176.815 (Cooperation with local governments) declaring an energy emergency due to a shortage of gasoline or diesel.

(2) An order declaring an emergency deferral under this section must set forth:

(a) The duration of the emergency deferral;

(b) The types of fuel to which the emergency deferral applies; and

(c) Which of the following methods the department has selected for deferring compliance with the scheduled applicable low carbon fuel standard during the emergency deferral:

(A) Temporarily adjusting the scheduled applicable low carbon fuel standard to a standard identified in the order that better reflects the availability of credits during the emergency deferral and requiring regulated parties to comply with the temporary standard;

(B) Allowing for the carryover of deficits accrued during the emergency deferral into one or more future compliance periods without penalty; or

(C) Suspending deficit accrual during the emergency deferral period.

(3)(a) In implementing an emergency deferral, the department may take an action for deferring compliance with the low carbon fuel standard other than, or in addition to, selecting a method under subsection (2)(c) of this section only if the department determines that none of the methods under subsection (2)(c) of this section will provide a sufficient mechanism for containing the costs of compliance with the low carbon fuel standards during the emergency deferral.

(b) If the department makes the determination specified in paragraph (a) of this subsection, the department shall:

(A) Include in the order declaring an emergency deferral the determination and the action to be taken; and

(B) Provide written notification and justification of the determination and the action to:

(i) The Governor;

(ii) The President of the Senate;

(iii) The Speaker of the House of Representatives;

(iv) The majority and minority leaders of the Senate; and

(v) The majority and minority leaders of the House of Representatives.

(4)(a) Except as provided in paragraph (b) of this subsection, the duration of an emergency deferral:

(A) Implemented using the method described in subsection (2)(c)(A) of this section may not be less than one calendar quarter; and

(B) Implemented using a method described in subsection (2)(c)(B) or (C) or subsection (3) of this section may not be less than 30 calendar days.

(b) An emergency deferral may not continue past the end of the compliance period during which the emergency deferral is issued.

(c) An emergency deferral may be terminated prior to the expiration date of the emergency deferral only if new information becomes available indicating that the shortage for which the emergency deferral was issued has ended. Only the Environmental Quality Commission may terminate, by order, an emergency deferral before the expiration date of the emergency deferral. Termination of an emergency deferral is effective 15 calendar days after the date that the order declaring the termination is adopted.

(5) If the department determines during a compliance period that the volume-weighted moving average price of credits for a consecutive three-month period increased by 100 percent or more over the volume-weighted moving average price of credits for the previous consecutive three-month period, or if the department otherwise determines that abnormal market behavior exists, the department shall complete, no later than two months after the determination is made, an analysis of the root cause of the price volatility. The department may recommend and implement any remedy that the department determines is necessary to address market stability based on the root cause analysis, including but not limited to issuing an emergency deferral, provided that the remedy implemented does not:

(a) Require a regulated party to purchase credits for an amount that exceeds the maximum price for credits in the most recent credit clearance market; or

(b) Compel a person to sell credits.

(formerly 468.360 to 468.405)

Atty. Gen. Opinions

Motor Vehicle Emission Control Inspec­tion Program funding, (1974) Vol 37, p 130

1 Legislative Counsel Committee, CHAPTER 468A—Air Quality, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors468A.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 468A, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano468A.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.