On July 22, 2009, Oregon Governor Ted Kulongowski signed into law H.B. 2186, which allows the Oregon Environmental Quality Commission (EQC) to adopt rules for the reduction of greenhouse gas (GHG) emissions from transportation fuels. The EQC may adopt a low carbon fuel standard (LCFS), which would require a reduction in fuel carbon intensity of 10 percent from 2010 levels by 2020. The Oregon LCFS is similar to a LCFS passed in California in May 2009, which also requires a reduction of 10 percent below 2010 levels by 2020.
In developing the standards, the EQC is directed to consider GHG emissions over the full lifecycle of the fuel, which includes production, storage, transportation, and combustion and any changes in land use associated with the fuel. The standards will apply to gasoline, diesel, and any other fuels that are used as a substitute for gasoline and diesel; fuel providers will be able meet the standard by incorporating any other type of low carbon fuel into fuels that they sell.
In addition to the LCFS, H.B. 2186 allows the EQC to create other programs to reduce emissions, including requirements to reduce aerodynamic drag in medium- and heavy- duty vehicles, tire efficiency standards, and idling reduction requirements for trucks and ships. Governor Kulongoski also signed H.B. 3463, which revises the state’s blending requirements for biodiesel such that implementation of the standard will be contingent on the level of in-state biodiesel production.