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Oregon Bulletin

January 1, 2013

Department of Environmental Quality, Chapter 340

Rule Caption: Oakridge-Westfir PM2.5 Attainment Plan.

Adm. Order No.: DEQ 7-2012

Filed with Sec. of State: 12-10-2012

Certified to be Effective: 12-10-12

Notice Publication Date: 9-1-12

Rules Amended: 340-200-0040

Subject: The Oregon Environmental Quality Commission adopted an attainment plan that will bring the Oakridge-Westfir non-attainment area into compliance with the PM2.5 National Ambient Air Quality Standard. The attainment plan identifies a number of emission control strategies that will be implemented through city ordinances, state rules and non-regulatory efforts including education and incentives. A mandatory residential wood combustion curtailment program, implemented by LRAPA and the City of Oakridge, is a primary strategy to reduce PM2.5 emissions. If Oakridge-Westfir does not reach attainment by the federal Clean Air Act deadline of December 2014, an additional set of contingency strategies will become effective. These contingency measures include: a stricter opacity limit, revising the current 40% opacity limit to a more restrictive 20% limit, as has been done in some other northwest communities; a stricter green-yellow-red advisory program, with more yellow and red advisory days each winter; and further restrictions on the city woodstove curtailment exemptions (for sole source, economic hardship).

 DEQ will submit these amendments and attainment plan to the U.S. Environmental Protection Agency as a revision to the State Implementation Plan under OAR 340-200-0040 as a requirement of the Clean Air Act.

Rules Coordinator: Maggie Vandehey—(503) 229-6878

340-200-0040

State of Oregon Clean Air Act Implementation Plan

(1) This implementation plan, consisting of Volumes 2 and 3 of the State of Oregon Air Quality Control Program, contains control strategies, rules and standards prepared by the Department of Environmental Quality and is adopted as the state implementation plan (SIP) of the State of Oregon pursuant to the federal Clean Air Act, 42 U.S.C.A 7401 to 7671q.

(2) Except as provided in section (3), revisions to the SIP will be made pursuant to the Commission’s rulemaking procedures in division 11 of this chapter and any other requirements contained in the SIP and will be submitted to the United States Environmental Protection Agency for approval. The State Implementation Plan was last modified by the Commission on December 6, 2012.

(3) Notwithstanding any other requirement contained in the SIP, the Department may:

(a) Submit to the Environmental Protection Agency any permit condition implementing a rule that is part of the federally-approved SIP as a source-specific SIP revision after the Department has complied with the public hearings provisions of 40 CFR 51.102 (July 1, 2002); and

(b) Approve the standards submitted by a regional authority if the regional authority adopts verbatim any standard that the Commission has adopted, and submit the standards to EPA for approval as a SIP revision.

NOTE: Revisions to the State of Oregon Clean Air Act Implementation Plan become federally enforceable upon approval by the United States Environmental Protection Agency. If any provision of the federally approved Implementation Plan conflicts with any provision adopted by the Commission, the Department shall enforce the more stringent provision.

Stat. Auth.: ORS 468.020, 468A.035 & 468A.070
Stats. Implemented: ORS 468A.035
Hist.: DEQ 35, f. 2-3-72, ef. 2-15-72; DEQ 54, f. 6-21-73, ef. 7-1-73; DEQ 19-1979, f. & ef. 6-25-79; DEQ 21-1979, f. & ef. 7-2-79; DEQ 22-1980, f. & ef. 9-26-80; DEQ 11-1981, f. & ef. 3-26-81; DEQ 14-1982, f. & ef. 7-21-82; DEQ 21-1982, f. & ef. 10-27-82; DEQ 1-1983, f. & ef. 1-21-83; DEQ 6-1983, f. & ef. 4-18-83; DEQ 18-1984, f. & ef. 10-16-84; DEQ 25-1984, f. & ef. 11-27-84; DEQ 3-1985, f. & ef. 2-1-85; DEQ 12-1985, f. & ef. 9-30-85; DEQ 5-1986, f. & ef. 2-21-86; DEQ 10-1986, f. & ef. 5-9-86; DEQ 20-1986, f. & ef. 11-7-86; DEQ 21-1986, f. & ef. 11-7-86; DEQ 4-1987, f. & ef. 3-2-87; DEQ 5-1987, f. & ef. 3-2-87; DEQ 8-1987, f. & ef. 4-23-87; DEQ 21-1987, f. & ef. 12-16-87; DEQ 31-1988, f. 12-20-88, cert. ef. 12-23-88; DEQ 2-1991, f. & cert. ef. 2-14-91; DEQ 19-1991, f. & cert. ef. 11-13-91; DEQ 20-1991, f. & cert. ef. 11-13-91; DEQ 21-1991, f. & cert. ef. 11-13-91; DEQ 22-1991, f. & cert. ef. 11-13-91; DEQ 23-1991, f. & cert. ef. 11-13-91; DEQ 24-1991, f. & cert. ef. 11-13-91; DEQ 25-1991, f. & cert. ef. 11-13-91; DEQ 1-1992, f. & cert. ef. 2-4-92; DEQ 3-1992, f. & cert. ef. 2-4-92; DEQ 7-1992, f. & cert. ef. 3-30-92; DEQ 19-1992, f. & cert. ef. 8-11-92; DEQ 20-1992, f. & cert. ef. 8-11-92; DEQ 25-1992, f. 10-30-92, cert. ef. 11-1-92; DEQ 26-1992, f. & cert. ef. 11-2-92; DEQ 27-1992, f. & cert. ef. 11-12-92; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 8-1993, f. & cert. ef. 5-11-93; DEQ 12-1993, f. & cert. ef. 9-24-93; DEQ 15-1993, f. & cert. ef. 11-4-93; DEQ 16-1993, f. & cert. ef. 11-4-93; DEQ 17-1993, f. & cert. ef. 11-4-93; DEQ 19-1993, f. & cert. ef. 11-4-93; DEQ 1-1994, f. & cert. ef. 1-3-94; DEQ 5-1994, f. & cert. ef. 3-21-94; DEQ 14-1994, f. & cert. ef. 5-31-94; DEQ 15-1994, f. 6-8-94, cert. ef. 7-1-94; DEQ 25-1994, f. & cert. ef. 11-2-94; DEQ 9-1995, f. & cert. ef. 5-1-95; DEQ 10-1995, f. & cert. ef. 5-1-95; DEQ 14-1995, f. & cert. ef. 5-25-95; DEQ 17-1995, f. & cert. ef. 7-12-95; DEQ 19-1995, f. & cert. ef. 9-1-95; DEQ 20-1995 (Temp), f. & cert. ef. 9-14-95; DEQ 8-1996(Temp), f. & cert. ef. 6-3-96; DEQ 15-1996, f. & cert. ef. 8-14-96; DEQ 19-1996, f. & cert. ef. 9-24-96; DEQ 22-1996, f. & cert. ef. 10-22-96; DEQ 23-1996, f. & cert. ef. 11-4-96; DEQ 24-1996, f. & cert. ef. 11-26-96; DEQ 10-1998, f. & cert. ef. 6-22-98; DEQ 15-1998, f. & cert. ef. 9-23-98; DEQ 16-1998, f. & cert. ef. 9-23-98; DEQ 17-1998, f. & cert. ef. 9-23-98; DEQ 20-1998, f. & cert. ef. 10-12-98; DEQ 21-1998, f. & cert. ef. 10-12-98; DEQ 1-1999, f. & cert. ef. 1-25-99; DEQ 5-1999, f. & cert. ef. 3-25-99; DEQ 6-1999, f. & cert. ef. 5-21-99; DEQ 10-1999, f. & cert. ef. 7-1-99; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-020-0047; DEQ 15-1999, f. & cert. ef. 10-22-99; DEQ 2-2000, f. 2-17-00, cert. ef. 6-1-01; DEQ 6-2000, f. & cert. ef. 5-22-00; DEQ 8-2000, f. & cert. ef. 6-6-00; DEQ 13-2000, f. & cert. ef. 7-28-00; DEQ 16-2000, f. & cert. ef. 10-25-00; DEQ 17-2000, f. & cert. ef. 10-25-00; DEQ 20-2000 f. & cert. ef. 12-15-00; DEQ 21-2000, f. & cert. ef. 12-15-00; DEQ 2-2001, f. & cert. ef. 2-5-01; DEQ 4-2001, f. & cert. ef. 3-27-01; DEQ 6-2001, f. 6-18-01, cert. ef. 7-1-01; DEQ 15-2001, f. & cert. ef. 12-26-01; DEQ 16-2001, f. & cert. ef. 12-26-01; DEQ 17-2001, f. & cert. ef. 12-28-01; DEQ 4-2002, f. & cert. ef. 3-14-02; DEQ 5-2002, f. & cert. ef. 5-3-02; DEQ 11-2002, f. & cert. ef. 10-8-02; DEQ 5-2003, f. & cert. ef. 2-6-03; DEQ 14-2003, f. & cert. ef. 10-24-03; DEQ 19-2003, f. & cert. ef. 12-12-03; DEQ 1-2004, f. & cert. ef. 4-14-04; DEQ 10-2004, f. & cert. ef. 12-15-04; DEQ 1-2005, f. & cert. ef. 1-4-05; DEQ 2-2005, f. & cert. ef. 2-10-05; DEQ 4-2005, f. 5-13-05, cert. ef. 6-1-05; DEQ 7-2005, f. & cert. ef. 7-12-05; DEQ 9-2005, f. & cert. ef. 9-9-05; DEQ 2-2006, f. & cert. ef. 3-14-06; DEQ 4-2006, f. 3-29-06, cert. ef. 3-31-06; DEQ 3-2007, f. & cert. ef. 4-12-07; DEQ 4-2007, f. & cert. ef. 6-28-07; DEQ 8-2007, f. & cert. ef. 11-8-07; DEQ 5-2008, f. & cert. ef. 3-20-08; DEQ 11-2008, f. & cert. ef. 8-29-08; DEQ 12-2008, f. & cert. ef. 9-17-08; DEQ 14-2008, f. & cert. ef. 11-10-08; DEQ 15-2008, f. & cert. ef 12-31-08; DEQ 3-2009, f. & cert. ef. 6-30-09; DEQ 8-2009, f. & cert. ef. 12-16-09; DEQ 2-2010, f. & cert. ef. 3-5-10; DEQ 5-2010, f. & cert. ef. 5-21-10; DEQ 14-2010, f. & cert. ef. 12-10-10; DEQ 1-2011, f. & cert. ef. 2-24-11; DEQ 2-2011, f. 3-10-11, cert. ef. 3-15-11; DEQ 5-2011, f. 4-29-11, cert. ef. 5-1-11; DEQ 18-2011, f. & cert. ef. 12-21-11; DEQ 1-2012, f. & cert. ef. 5-17-12; DEQ 7-2012, f. & cert.ef 12-10-12


 

Rule Caption: Oregon Clean Fuels Program for fuel suppliers and producers of transportation fuels.

Adm. Order No.: DEQ 8-2012

Filed with Sec. of State: 12-11-2012

Certified to be Effective: 12-11-12

Notice Publication Date: 8-1-12

Rules Adopted: 340-253-0000, 340-253-0040, 340-253-0060, 340-253-0100, 340-253-0200, 340-253-0250, 340-253-0310, 340-253-0320, 340-253-0330, 340-253-0340, 340-253-0400, 340-253-0450, 340-253-0500, 340-253-0600, 340-253-0630, 340-253-0650, 340-253-1000, 340-253-1010, 340-253-1020, 340-253-1030, 340-253-3000, 340-253-3010, 340-253-3020, 340-253-3030, 340-253-3040, 340-253-3050

Subject: Climate change poses a serious threat to Oregon’s economy, environment and public health. Transportation sources account for approximately one third of all greenhouse gas emissions in Oregon that lead to climate change. The 2009 Oregon Legislature passed HB 2186 that authorized the Oregon Environmental Quality Commission to adopt rules that would reduce lifecycle emissions of greenhouse gases from Oregon’s transportation fuels by 10 percent over a 10-year period.

 The Oregon Department of Environmental Quality recommended that HB 2186 be implemented in two phases. The first phase contains the registration, recordkeeping and reporting requirements that serve as the administrative basis of the program. On December 7, 2012, the Oregon Environmental Quality Commission adopted this phase of the program. This first phase focuses on the development of recordkeeping and reporting protocols and systems to keep track of information about Oregon’s transportation fuels. The information will help inform decision makers about the feasibility of moving ahead with the next phase of the program.

 The goal of the second phase would be to reduce greenhouse gas emissions from Oregon’s transportation fuels. Rules for this phase were initially proposed to be adopted and deferred for future implementation; however, DEQ decided to not adopt this part of the rules at this time. If the legislature removes the December 31, 2015 sunset date in HB 2186, then DEQ may propose additional rules for the second phase of the program.

Rules Coordinator: Maggie Vandehey—(503) 229-6878

340-253-0000

Overview

(1) Context. The Oregon Legislature has found that climate change poses a serious threat to the economic well-being, public health, natural resources and environment of Oregon, among other findings. Section 1, chapter 907, Oregon Laws 2007. The Oregon Clean Fuels Program will reduce Oregon’s contribution to the global levels of greenhouse gas emissions and the impacts of those emissions in Oregon, in concert with other greenhouse gas reduction policies and actions by local governments, other states and the federal government.

(2) Purpose. The purpose of the Oregon Clean Fuels Program is to reduce the average amount of lifecycle greenhouse gas emissions per unit of fuel energy used in Oregon by a minimum of 10 percent below 2010 levels over a 10-year period.

(3) Authority. The 2009 Oregon Legislature adopted House Bill 2186, which was enacted as chapter 754 of Oregon Laws 2009, and authorizes the Environmental Quality Commission to adopt low carbon fuel standards for gasoline, diesel fuel and fuels used as substitutes for gasoline or diesel fuel. Sections 6 to 9 of chapter 754, Oregon Laws 2009 is printed as a note following ORS 468A.270 (2011 Edition). OAR chapter 340 division 253 implements section 6.

(4) Flexible Implementation Approach. This division requires regulated parties, and those parties that choose voluntarily to opt–in to the program, to register, keep records, report the carbon intensity of the fuel they produce or import for use in Oregon, and calculate surpluses and shortfalls against the baseline carbon intensity values. These values are based on the mix of regulated and opt-in fuels that were supplied in Oregon in 2010. While reporting of net carbon balance is required, regulated and opt-in parties are not required to balance surpluses and shortfalls at this time. This flexible implementation approach is designed to put in place only the administrative procedures necessary to implement the program. This approach is intended to minimize the initial costs to regulated parties by not requiring compliance with declining carbon intensity standards. DEQ will utilize the reports and other information to assess, at a minimum, the following factors to make a recommendation to the EQC about the next phase of the program:

(a) The cost and administrative burden of compliance for regulated and opt-in parties;

(b) The benefits of the program to Oregon’s economy and environment;

(c) The current and projected availability of lower carbon fuels,

(d) The methodologies to provide exemptions and deferrals necessary to mitigate the cost of complying with the program, in accordance with Section 6(2)(d) of chapter 754, Oregon Laws 2009;

(e) The progress and adoption rates of cleaner fuels and vehicle technologies;

(f) The appropriate methods, based on the latest science, to establish baseline carbon intensity values and declining carbon intensity standards, including methodologies to incorporate land use change and other indirect effects;

(g) The latest information on the policies and legal issues regarding low carbon fuel standards;

(h) The status of federal and other state programs that address the carbon content of transportation fuel;

(i) The costs and administrative capacity of DEQ to implement the program; and

(j) The likely impact on all of the above elements, if declining average carbon intensity standards are implemented in the future.

(5) Construction. This division uses the following construction:

(a) OAR 340-253-#### followed by a bolded title is the number and title of the rule where:

(A) OAR is the acronym for Oregon Administrative Rules;

(B) 340 is the chapter number;

(C) 253 is the division number; and

(D) #### is the unique rule number.

(b) The subunits of a rule are within parenthesis in the following order:

(A) Section. The section is a Hindu-Arabic numeral expressed in sequence as (1), (2), (3) and so forth. Each section has a bold title;

(B) Subsection. The subsection is a lowercase English alphabet character expressed in sequence as (a), (b), (c) and so forth;

(C) Paragraph. The paragraph is an uppercase English alphabet character expressed in sequence as (A), (B), (C) and so forth; and

(D) Subparagraph. The subparagraph is a lowercase Roman numeral expressed in sequence as (i), (ii), (iii) and so forth.

(c) A reference prefaced with the word section, subsection, paragraph or subparagraph is a reference to a subunit within the same rule; and

(d) A reference prefaced with OAR 340-253 is a reference to another rule under the Oregon standards.

(6) LRAPA. Notwithstanding 340-200-0010(3), the DEQ administers this division in all areas of the State of Oregon.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0040

Definitions

The definitions in OAR 340-200-0020 and this rule apply to this division. If the same term is defined in this rule and OAR 340-200-0020, the definition in this rule applies to this division.

(1) “Actual PADD 5” means Petroleum Administration for Defense District 5, which includes Oregon, Washington, Arizona, Nevada, Hawaii, California and Alaska.

(2) “Baseline carbon intensity value” is 90.38 gCO2e per MJ for gasoline and gasoline substitutes and 90.00 gCO2e per MJ for diesel fuel and diesel substitutes. These values are based on the mix of regulated and opt-in fuels supplied for use as a transportation fuel in Oregon in 2010.

(3) “Biodiesel” has the same meaning as defined under OAR 603-027-0410.

(4) “Biogas” means natural gas that meets the purity requirements under OAR 860-023-0025 and is produced from the breakdown of organic material in the absence of oxygen. Biogas production processes include, but are not limited to, anaerobic digestion, anaerobic decomposition and thermo-chemical decomposition:

(a) Applied to biodegradable biomass materials, such as manure, sewage, municipal solid waste, and waste from energy crops; and

(b) Used to produce landfill gas and digester gas.

(5) “Biogas compressed natural gas” means compressed natural gas consisting solely of compressed biogas.

(6) “Biogas liquefied natural gas” means liquefied natural gas consisting solely of liquefied biogas.

(7) “Biomass” has the same meaning as defined under OAR 603-027-0410.

(8) “Biomass-Based diesel” has the same meaning as defined under OAR 603-027-0410.

(9) “Blendstock” means a component used alone or blended with one or more other components to produce a finished fuel used in a motor vehicle.

(10) “Carbon intensity” means the amount of lifecycle greenhouse gas emissions per unit of energy of fuel expressed in grams of carbon dioxide equivalent per megajoule (gCO2e per MJ).

(11) “Compressed natural gas” means either biogas or fossil natural gas that meets the standards listed under OAR 860-023-0025 compressed to a pressure greater than ambient pressure.

(12) “Diesel fuel” has the same meaning as defined under OAR 603-027-0410.

(13) “Diesel substitute” means any fuel, other than diesel fuel, that may be used in light-duty or heavy-duty vehicles, and off-road vehicles that typically use diesel as a fuel. Diesel substitutes include but are not limited to liquefied natural gas used in a heavy duty motor vehicle and biodiesel used in a heavy duty motor vehicle.

(14) “Electricity bundled services supplier” means any person or entity that provides charging infrastructure and provides access to vehicles charging under contract with a charging service recipient or charging equipment owner.

(15) “Electric utility” has the same meaning as defined in ORS 757.600.

(16) “Ethanol,” or “Denatured fuel ethanol” has the same meaning as defined under OAR 603-027-0410.

(17) “Feedstock” means the material a fuel is made from.

(18) “Finished fuel” means a transportation fuel used directly in a motor vehicle without additional chemical or physical processing.

(19) “Finished hydrogen fuel” means a finished fuel that consists of:

(a) Hydrogen; or

(b) A blend of hydrogen and another fuel.

(20) “Fossil compressed natural gas” means compressed natural gas derived solely from petroleum or fossil sources such as oil fields and coal beds.

(21) “Fossil liquefied natural gas” means liquefied natural gas derived solely from petroleum or fossil sources such as oil fields and coal beds.

(22) “Fuel type” means any unique fuel feedstock and production process combination.

(23) “Gasoline” has the same meaning as defined under OAR 603-027-0410.

(24) “Gasoline substitute” means any fuel, other than gasoline, that may be used in light-duty vehicles that typically use gasoline as a fuel. Gasoline substitutes include but are not limited to electricity used in a light-duty motor vehicle and natural gas used in a light-duty motor vehicle.

(25) “Heavy duty motor vehicle” has the same meaning as defined under OAR 340-256-0010.

(26) “Import” means to bring a product from outside Oregon into Oregon.

(27) “Importer” means the person who owns a product imported from outside Oregon into Oregon:

(a) With respect to any imported liquid product, it means the person who owns the fuel in the stationary storage tank into which the product was first transferred after it was imported into Oregon; or

(b) With respect to any biogas, it means the person who owns the imported product upon receipt at a pipeline in Oregon through which the biogas is delivered in Oregon.

(28) “Large Oregon importer” means any person who imports more than 250,000 gallons of fuel in a given calendar year into Oregon.

(29) “Light-duty motor vehicle” has the same meaning as defined under OAR 340-256-0010.

(30) “Lifecycle greenhouse gas emissions” means the:

(a) Aggregate quantity of greenhouse gas emissions including direct and significant indirect emissions, such as significant emissions from changes in land use associated with the fuels;

(b) Full fuel lifecycle including all stages of fuel production, from feedstock generation or extraction, production, distribution, and combustion of the finished fuel by the consumer; and

(c) Mass values for all greenhouse gases as adjusted to account for their relative global warming potential.

(31) “Liquefied natural gas” means biogas or fossil natural gas converted to liquid form.

(32) “Liquefied petroleum gas” or “propane” has the same meaning as defined under OAR 603-027-0395.

(33) “Motor vehicles” has the same meaning as defined under OAR 603-027-0410.

(34) “Natural gas” means a mixture of gaseous hydrocarbons and other compounds from either fossil or biogas sources, with at least 80 percent methane by volume, and typically sold or distributed by utilities such as any utility company regulated by the Oregon Public Utility Commission.

(35) “Opt-in party” means a person who is not a regulated party and who elects to register with DEQ under OAR 340-253-0100(4).

(36) “Oregon producer” means:

(a) With respect to any liquid blendstock or finished fuel, the person who makes the liquid blendstock or finished fuel at the Oregon production facility; or

(b) With respect to any biogas produced in Oregon, the person who refines the gas to pipeline quality.

(37) “Oregon production facility” means a facility located in Oregon that:

(a) Produces any liquid blendstock or finished fuel other than liquefied natural gas; or

(b) Converts, compresses, liquefies, refines, treats or otherwise processes natural gas into compressed natural gas or liquefied natural gas that is ready for use as a transportation fuel in a motor vehicle without further physical or chemical processing.

(38) “OR-GREET” means the Greenhouse gases, Regulated Emissions, and Energy in Transportation (GREET) Argonne National Laboratory model modified and maintained for Oregon. Copies of OR-GREET are available from DEQ upon request.

(39) “Private access fueling facility” means an Oregon fueling facility that restricts access by use of a card or key-activated fuel dispensing device to dispensing fuel to nonretail customers.

(40) “Product transfer document” means an invoice, bill of lading, purchase contract, or any other proof of fuel ownership transfer.

(41) “Public access fueling facility” means an Oregon fueling facility that is not a private access fueling facility.

(42) “Regulated party” means a person identified as a regulated party under OAR 340-253-0310 through 340-253-0340. Regulated parties must comply with the requirements under OAR 340-253-0100.

(43) “Shortfall(s)” means a state in which the carbon intensity of a fuel is higher than the baseline carbon intensity value for gasoline and gasoline substitutes or diesel fuel and diesel substitutes. Shortfalls are expressed in units of metric tons of carbon dioxide equivalent (CO2e) and are calculated under OAR 340-253-1020.

(44) “Small Oregon importer” means any person who imports 250,000 gallons or less of fuel in a given calendar year into Oregon.

(45) “Statutory PADD 5” means a portion of Petroleum Administration for Defense District 5, which includes Oregon, Washington, Arizona and Nevada.

(46) “Surplus(es)” means a state in which the carbon intensity of a fuel is lower than the baseline carbon intensity value for gasoline or diesel fuel and their substitutes. Surpluses are expressed in units of metric tons of carbon dioxide equivalent (CO2e) and are calculated under OAR 340-253-1020.

(47) “Transportation fuel” means any fuel used or intended for use in motor vehicles as defined under OAR 603-027-0410.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0060

Acronyms

The following acronyms apply to this division:

(1) “ASTM” means ASTM International (formerly American Society for Testing and Materials).

(2) “BTU” means British thermal unit.

(3) “DEQ” means Oregon Department of Environmental Quality.

(4) “EQC” means Oregon Environmental Quality Commission.

(5) “gCO2e” means grams of carbon dioxide equivalent.

(6) “gge” means gasoline gallon equivalents.

(7) “MJ” means megajoule.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0100

Oregon Clean Fuels Program

(1) Applicability.

(a) All regulated parties under section (3) that import or produce, sell, supply or offer for sale in Oregon any regulated fuel, as defined under OAR 340-253-0200, are subject to this rule.

(b) Any person may become an opt-in party by registering with DEQ under section (4) of this rule. All opt-in parties under section (3) that import or produce, sell, supply or offer for sale in Oregon any opt-in fuel, as defined under OAR 340-253-0200, are subject to this rule.

(2) Requirements. Beginning January 1, 2013:

(a) Regulated and opt-in parties, except for small Oregon importers, must register under section (4) of this rule, keep records under section (5) of this rule, and submit reports under sections (6) and (7) of this rule; and

(b) Small Oregon importers must register under section (4) of this rule and are exempt from keeping records under section (5) of this rule and submitting reports under sections (6) and (7) of this rule.

(3) Regulated party or opt-in party. The following rules designate regulated and opt-in parties, by type of fuel:

(a) OAR 340-253-0310 for gasoline, diesel fuel, biodiesel, biomass-based diesel, ethanol, and any other liquid fuel except liquefied natural gas and liquefied petroleum gas;

(b) OAR 340-253-0320 for natural gas including compressed natural gas, liquefied natural gas, biogas and liquefied petroleum gas;

(c) OAR 340-253-0330 for electricity; and

(d) OAR 340-253-0340 for hydrogen fuel or a hydrogen blend.

(4) Registration.

(a) After January 1, 2013, but no later than June 30, 2013, each regulated party must submit a complete application under OAR 340-253-0500 to register with DEQ for each fuel type the party imports or produces, sells, supplies or offers for sale in Oregon on or before July 1, 2013, and that it plans to continue to import or produce, sell, supply or offer for sale in Oregon after July 1, 2013.

(b) Beginning on July 1, 2013, each regulated party must submit a complete application under OAR 340-253-0500 to register with DEQ for each fuel type, on or before the date upon which it begins to import or produce, sell, supply or offer for sale in Oregon such fuel.

(c) To become an opt-in party a person must submit a complete application under OAR 340-253-0500 to register with DEQ.

(5) Records.

(a) Beginning on July 1, 2013, each regulated party must develop and retain all records required under OAR 340-253-0600.

(b) Beginning on the latter of either July 1, 2013, or the date that an opt-in party submits a complete application, as determined by DEQ, under subsection (4)(c) of this rule, each opt-in party must develop and retain all records required under OAR 340-253-0600.

(6) Quarterly report. Beginning on January 1, 2014, each regulated and opt-in party must submit quarterly reports under OAR 340-253-0630. Reports must be submitted to DEQ for:

(a) January through March of each year, by May 31;

(b) April through June of each year, by August 31;

(c) July through September of each year, by November 30; and

(d) October through December of each year, by February 28 of the following year.

(7) Annual report. Each regulated party and opt-in party must submit an annual report each year under OAR 340-253-0650. The report must be submitted to DEQ by April 30 of each year to report for the prior calendar year; except for 2013, when the reporting period is from July 1 through December 31.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0200

Regulated and Opt-in Fuels

(1) Applicability. The transportation fuels listed in this rule are subject to Division 253, unless exempt under OAR 340-253-0250.

(2) Regulated fuels. Regulated fuels means the following transportation fuels or blendstocks:

(a) Gasoline;

(b) Diesel fuel;

(c) Fossil liquefied natural gas that is imported, but not transferred by a natural gas pipeline in Oregon;

(d) A fuel blend containing ethanol;

(e) A fuel blend containing biomass-based diesel or biodiesel;

(f) Ethanol or denatured ethanol, also referred to as E100;

(g) Neat biomass-based diesel and biodiesel, also referred to as B100; and

(h) Any other liquid or non-liquid fuel not listed in section (3) or exempted under OAR 340-253-0250.

(3) Opt-in fuels. Opt-in fuels means the following transportation fuels:

(a) Electricity;

(b) Hydrogen fuel;

(c) Hydrogen blends;

(d) Fossil compressed natural gas;

(e) Fossil liquefied natural gas derived from fuel delivered through a natural gas pipeline;

(f) Biogas compressed natural gas;

(g) Biogas liquefied natural gas; and

(h) Liquefied petroleum gas.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0250

Exempt Fuels and Fuel Uses

(1) Exempt fuels. The following fuels are exempt from the definition of regulated fuels under OAR 340-253-0200(2)(h):

(a) A fuel sold, supplied or offered for sale in Oregon if all providers supply an aggregate volume of less than 360,000 gge per year in Oregon. The party must:

(A) Demonstrate that the exemption applies; and

(B) Obtain exemption approval from DEQ in writing.

(b) A fuel produced from a research, development or demonstration facility as defined under OAR 330-090-0110 if the annual production volume is either 10,000 gallons or less or no more than 50,000 gallons and the fuel producer uses the entire volume for its own motor vehicles. The party must:

(A) Demonstrate that the exemption applies; and

(B) Obtain exemption approval from DEQ in writing.

(2) Exempt fuels based on fuel uses. Fuels are exempt from the definition of regulated fuels under OAR 340-253-0200(2)(h) if:

(a) The fuel is sold, supplied or offered for sale for use in the following motor vehicles:

(A) Aircraft;

(B) Racing activity vehicles under ORS 801.404;

(C) Military tactical vehicles and tactical support equipment;

(D) Railroad locomotives;

(E) Ocean-going vessels defined under OAR 856-010-0003, except for vessel under fishery or recreational endorsement under title 46 United States Code, chapter 121;

(F) Motor vehicles registered as farm vehicles under ORS 805.300;

(G) Farm tractors, as defined under ORS 801.265;

(H) Implements of husbandry, as defined under ORS 801.310; or

(I) Motor trucks, as defined under ORS 801.355, used primarily to transport logs; and

(b) The regulated or opt-in party documents that the fuel was sold, supplied or offered for sale for use in a motor vehicle listed in subsection (a), as required under OAR 340-253-0600. Documentation that the fuel was transferred through a dedicated source to one of the motor vehicles identified in subsection (a) is sufficient. If not transferred through a dedicated source, all documentation must be on an individual fuel transaction basis.

(3) Fuel possession. Any fuel user or seller may possess any fuel regardless of its carbon intensity value, including but not limited to owners of the motor vehicles listed under subsection (2)(a).

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0310

Regulated Parties for Gasoline, Diesel Fuel, Biodiesel, Biomass-based Diesel and Ethanol and Other Regulated Fuels Except for Liquefied Natural Gas

(1) Applicability. This rule applies to all liquid blendstocks and liquid finished fuels listed under OAR 340-253-0200(2) except liquefied natural gas.

(2) Initial regulated party. The initial regulated party is the Oregon producer, large Oregon importer or small Oregon importer of the fuel.

(3) Recipient notification requirement. Before actual fuel ownership is transferred from one party to another, the recipient of the fuel must notify the transferor of the fuel whether or not the recipient is an Oregon producer, a large Oregon importer, or a small Oregon importer.

(4) Regulated party options and responsibilities for transfers if the recipient is an Oregon producer or large Oregon importer. If the initial regulated party transfers fuel to an Oregon producer or a large Oregon importer, then the transferor and the recipient have the options and responsibilities under this section.

(a) Unless the transferor elects to remain the regulated party under (4)(b):

(A) The recipient is now the regulated party who:

(i) Must comply with the registration, recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel; and

(ii) Is responsible for surplus and shortfall calculations under OAR 340-253-1020.

(B) The transferor must provide the recipient a product transfer document by the time of transfer. The product transfer document must prominently indicate:

(i) The recipient is now the regulated party who must comply with the registration, recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel; and

(ii) The information required under OAR 340-253-0600.

(C) The transferor is no longer required to comply with the recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel, except for maintaining the product transfer documentation under OAR 340-253-0600.

(b) The transferor and recipient may agree in writing for the transferor to remain the regulated party for the fuel, by the time fuel ownership is transferred. If the transferor elects to remain the regulated party:

(A) The transferor:

(i) Must provide the recipient a product transfer document at the time of transfer that prominently indicates that the transferor elects to remain the regulated party for the fuel;

(ii) The transferor must comply with the recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel; and

(iii) The transferor is responsible for surplus and shortfall calculations under OAR 340-253-1020; and

(B) The recipient must maintain the product transfer documentation under OAR 340-253-0600.

(5) Regulated party options and responsibilities for transfers if the recipient is a small Oregon importer or is not an importer and is not an Oregon producer. If the initial regulated party transfers fuel to a small Oregon importer or a person who is not an importer and not an Oregon producer, then the transferor and the recipient have the options and responsibilities under this section.

(a) The transferor remains the regulated party unless the transferor and the recipient agree that the recipient is the regulated or opt-in party under (b), who:

(A) Must comply with the registration, recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel; and

(B) Is responsible for surplus and shortfall calculations under OAR 340-253-1020.

(b) The transferor and recipient may agree in writing for the recipient to become the regulated party for the fuel, by the time fuel ownership is transferred. If the recipient elects to become the regulated party:

(A) The transferor must:

(i) Provide the recipient a product transfer document at the time of transfer that prominently indicates that the recipient elects to become the regulated party for the fuel; and

(ii) Maintain the product transfer documentation under OAR 340-253-0600.

(B) The recipient:

(i) Must comply with the recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel;

(ii) Must maintain the product transfer documentation under OAR 340-253-0600; and

(iii) Is responsible for surplus and shortfall calculations under OAR 340-253-1020.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0320

Regulated Parties and Opt-in Parties for Compressed Natural Gas, Biogas, Liquefied Natural Gas and Liquefied Petroleum Gas

(1) Fossil compressed natural gas. For fossil compressed natural gas, the opt-in party is the owner of the fueling equipment at the facility where the fossil compressed natural gas is dispensed for use in motor vehicles.

(2) Biogas compressed natural gas. For biogas compressed natural gas that is dispensed directly into motor vehicles in Oregon without first being blended with fossil compressed natural gas, the initial opt-in party is the Oregon producer or importer of the biogas.

(3) Fossil liquefied natural gas. For fossil liquefied natural gas:

(a) For fuel that is a regulated fuel under OAR 340-253-0200(2)(c), the initial regulated party is the owner of the liquefied natural gas when it is transferred to the facility where the liquefied natural gas is dispensed for use into motor vehicles; or

(b) For fuel that is an opt-in fuel under OAR 340-253-0200(3)(e), the initial opt-in party is the owner of the liquefied natural gas when it is transferred to the facility where the liquefied natural gas is dispensed for use into motor vehicles.

(4) Biogas liquefied natural gas. For biogas liquefied natural gas that is dispensed directly into motor vehicles in Oregon without first being blended with fossil liquefied natural gas, the initial opt-in party is the Oregon producer or importer of the biogas liquefied natural gas.

(5) Biogas compressed natural gas added to fossil compressed natural gas. For blends of these fuels, the opt-in parties for each of the component fuel types of the blended fuel remains the same as provide in sections (1) through (4).

(6) Biogas liquefied natural gas added to fossil liquefied natural gas. For blends of these fuels, the regulated and opt-in parties for each of the component fuel types of the blended fuel remains the same as provide in sections (1) through (4).

(7) Liquefied petroleum gas. For liquefied petroleum gas, the opt-in party is the owner of the fueling equipment at the facility where the liquefied petroleum gas is dispensed for use into motor vehicles.

(8) Regulated and opt-in party options and responsibilities for transfers of compressed natural gas, biogas, liquefied natural gas and liquefied petroleum gas. The transferor and the recipient have the following options and responsibilities under this section whenever the initial regulated or opt-in party transfers ownership of the fuel.

(a) The transferor remains the regulated or opt-in party unless the transferor and the recipient agree that the recipient is the regulated or opt-in party under (b), who:

(A) Must comply with the registration, recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel;

(B) Is responsible for surplus and shortfall calculations under OAR 340-253-1020; and

(C) May generate surpluses under OAR 340-253-1000(4).

(b) The transferor and recipient may agree in writing for the recipient to become the regulated or opt-in party for the fuel, by the time fuel ownership is transferred.

(A) The product transfer document must clearly indicate that the recipient is now the regulated or opt-in party who must comply with the registration, recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel;

(B) The recipient:

(i) Is responsible for surplus and shortfall calculations under OAR 340-253-1020; and

(ii) May generate surpluses under OAR 340-253-1000(4).

(C) The transferor is no longer required to comply with the recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel, except for maintaining the product transfer documentation under OAR 340-253-0600.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0330

Opt-in Parties for Electricity

(1) Opt-in party priority and deadlines. Sections (2) through (4) determine the opt-in party who may generate surpluses under OAR 340-253-1000(4) for electricity used as a transportation fuel.

(2) Electricity bundled services supplier. The electricity bundled services supplier must opt in by submitting a complete application to register with DEQ under OAR 340-253-0500 by September 1 of the year prior to the calendar year in which the surpluses will be generated if the electricity bundled services supplier elects to generate surpluses. Upon submitting a complete application, the electricity bundled services supplier becomes the opt-in party until it opts out under OAR 340-253-0500.

(3) Electric Utility. The electric utility may opt in by submitting a complete application to register with DEQ under OAR 340-253-0500 by November 1 of the year prior to the calendar year in which the surpluses will be generated, if the electricity bundled services supplier under section (2) does not opt-in. Upon submitting a complete application, the electric utility becomes the opt-in party for the following calendar year.

(4) Owner or operator of electric-charging equipment. The owner or operator of electric-charging equipment, including residential charging equipment, may opt in by submitting a complete application to register with DEQ under OAR 340-253-0500 by December 1 of the year prior to the calendar year in which the surpluses will be generated, if the electricity bundled services supplier under section (2) and the electric utility under section (3) do not opt-in. Upon submitting a complete application, the owner or operator of electric-charging equipment becomes the opt-in party for the following calendar year.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0340

Opt-in Parties for Hydrogen Fuel or Hydrogen Blends

(1) Initial opt-in party. The initial opt-in party for a volume of finished hydrogen fuel is the Oregon producer or Oregon importer of the finished hydrogen fuel.

(2) Opt-in party options and responsibilities for transfers. The transferor and the recipient have the following options and responsibilities whenever the initial opt-in party transfers ownership of the finished hydrogen fuel:

(a) The transferor remains the opt-in party unless the transferor and the recipient agree that the recipient is the opt-in party under (b), who:

(A) Must comply with the registration, recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel;

(B) Is responsible for surplus and shortfall calculations under OAR 340-253-1020; and

(C) May generate surpluses under OAR 340-253-1000(4).

(b) The transferor and recipient may agree in writing for the recipient to be the opt-in party for the fuel, by the time fuel ownership is transferred.

(A) The product transfer document must clearly indicate that the recipient is now the opt-in party who must comply with the registration, recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel.

(B) The recipient:

(i) Must comply with the registration, recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel;

(ii) Is responsible for surplus and shortfall calculations under OAR 340-253-1020; and

(iii) May generate surpluses under OAR 340-253-1000(4).

(C) The transferor is no longer required to comply with the registration, recordkeeping and reporting requirements under OAR 340-253-0100 for the fuel, except for maintaining the product transfer documentation under OAR 340-253-0600.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0400

Fuel Carbon Intensity Values

(1) Statewide carbon intensity values.

(a) A regulated or opt-in party must use the statewide average carbon intensity value in Table 1 or 2 under OAR 340-253-3010 or -3020, as applicable, for the following fuels:

(A) Gasoline;

(B) Diesel fuel;

(C) Compressed fossil natural gas derived from natural gas not imported to North America in liquefied form;

(D) Liquefied petroleum gas; and

(E) Electricity, unless an electricity provider meets the conditions under subsection (1)(b) and proposes a different carbon intensity value.

(b) The opt-in party for electricity may propose a carbon intensity value different from the statewide average carbon intensity value if the electricity provider:

(A) Only provides electricity for transportation; and

(B) Is exempt from the definition of public utility under ORS 757.005 (1)(b)(G), and is not regulated by the Oregon Public Utility Commission.

(c) Every three years, DEQ must review the statewide average carbon intensity values in Table 1 or 2 under OAR 340-253-3010 or -3020 and must:

(A) Consider the crude oil and other energy sources, production processes and flaring rates and other considerations that might affect the lifecycle carbon intensity of fuel used in Oregon; and

(B) Propose the EQC revise and update statewide average carbon intensity values in Table 1 or 2 under OAR 340-253-3010 or -3020 if DEQ determines that values should be changed by more than 5 gCO2e per MJ or 10 percent.

(2) Carbon intensity values for established pathways. Except as provided in section (3), regulated and opt-in parties must use the carbon intensity values for ethanol, biodiesel, biomass-based diesel, liquefied natural gas, biogas compressed natural gas, biogas liquefied natural gas, hydrogen, liquefied petroleum gas and any fossil compressed natural gas produced from natural gas that arrives in North America in liquefied form that best matches each fuel’s carbon intensity, as listed in Table 1 or 2 under OAR 340-253-3010 or -3020, as applicable.

(3) Individual carbon intensity values.

(a) Directed by DEQ. A regulated or opt-in party must obtain an individual carbon intensity value for a fuel, if DEQ:

(A) Determines the fuel’s carbon intensity is not adequately represented by any of the carbon intensity values for established pathways in Table 1 or 2 under OAR 340-253-3010 or -3020; and

(B) Directs the regulated or opt-in party to obtain an individual carbon intensity value under OAR 340-253-0450.

(b) Election of the party. A regulated or opt-in party may propose an individual carbon intensity value for a fuel if:

(A) The fuel’s carbon intensity, when compared to the carbon intensity value for the most similar fuel type in Table 1 or 2 under OAR 340-253-3010 or -3020, as applicable, changes by at least 5.0 gCO2e per MJ or 10 percent;

(B) The party has the capacity and intent to provide more than one million gge per year of the fuel in Oregon unless all providers of that fuel type supply less than one million gge per year in total; and

(C) The party applies for and obtains DEQ approval under OAR 340-253-0450.

(c) New fuel or feedstock. A regulated or opt-in party must obtain approval for an individual carbon intensity value under OAR 340-253-0450 for any fuel not included in Table 1 or 2 under OAR 340-253-3010 or -3020 and for any fuel made from a feedstock not represented in a carbon intensity value in Table 1 or 2 under OAR 340-253-3010 or -3020. The party must submit a modification to the original registration under OAR 340-253-0500(5) within 30 days,

(d) Process change notification. The regulated or opt-in party must notify DEQ and obtain approval for an individual carbon intensity value under OAR 340-253-0450 for any changes to the fuel production process, if the fuel’s carbon intensity value changes by more than 5.0 gCO2e per MJ or 10 percent. The party must submit a modification to the original registration under OAR 340-253-0500(5) within 30 days.

(4) OR-GREET. The regulated or opt-in party must calculate all carbon intensity values using the approved version of OR-GREET, or a DEQ-approved comparable model for any fuel that cannot be modeled with OR-GREET. Any variations from the approved version of OR-GREET must be documented as described under OAR 340-253-0450(1) and submitted to DEQ for approval.

(5) Calculation requirements. When a regulated or opt-in party calculates a carbon intensity value of:

(a) Fuels made from biomass feedstock, the party may assume that the combustion and growing components of the fuel’s lifecycle greenhouse gas emissions have net zero lifecycle carbon dioxide emissions.

(b) Fuels made from petroleum feedstock, including waste petroleum feedstock, the party may not assume that the combustion of the fuel has net zero carbon dioxide emissions.

(c) Fuels made from waste feedstock, the party may assume that the lifecycle greenhouse gas emissions analysis of the carbon intensity value begins when the original product becomes waste.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0450

Approval for Individual Carbon Intensity Values

(1) Individual carbon intensity value approval. The regulated or opt-in party may not use an individual carbon intensity value without written DEQ approval under this rule. Individual carbon intensity values are not available for the fuels listed under OAR 340-253-0400(1)(a).

(a) OR-GREET input modifications. The regulated or opt-in party may propose a modification to inputs into the OR-GREET model that more accurately reflect the specific carbon intensity of the fuel.

(b) OR-GREET model modifications. The regulated or opt-in party may propose modifications to the OR-GREET model. The proposal for an individual carbon intensity value must include:

(A) Inputs used to generate the carbon intensity values under OAR 340-253-0400; and

(B) All modified parameters used to generate the new fuel carbon intensity value.

(c) Non-OR-GREET modifications. The regulated or opt-in party may propose modifications based on any lifecycle assessment model other than OR-GREET. The proposal for an individual carbon intensity value must include:

(A) Inputs used to generate the carbon intensity values under OAR 340-253-0400; and

(B) All parameters used to generate the new fuel carbon intensity value.

(2) Reliability. The regulated or opt-in party must supply documentation necessary for DEQ to determine that the method used to calculate the individual carbon intensity value under section (1) is reliable and at least comparable to the approved version of OR-GREET.

(3) Modification submittal. The regulated or opt-in party must submit all documentation for the proposed modifications under this rule including all:

(a) Supporting data;

(b) Calculations;

(c) Flow diagrams;

(d) Equipment description;

(e) Maps; and

(f) Any other information DEQ may need to verify the fuel type and the method for calculating the proposed individual carbon intensity value.

(4) Review process. DEQ must determine whether the proposal is complete within 15 workdays after receipt of any modification submitted under section (3):

(a) If DEQ determines the proposal is incomplete, DEQ must notify the regulated or opt-in party and identify the deficiencies. DEQ has 15 workdays to determine if the supplemental submittal is complete, or to notify the party and identify the continued deficiencies.

(b) If DEQ determines the proposal is complete, DEQ must:

(A) Publish the application on the Oregon Clean Fuels Program website; and

(B) Approve or deny an individual carbon intensity value under section (5) or (6).

(5) DEQ approval. A regulated or opt-in party may use an individual carbon intensity value upon receiving written approval from DEQ. DEQ will propose to incorporate all associated parameters and fuel-related information of a DEQ-approved individual carbon intensity value into Table 1 or 2 under OAR 340-253-3010 or -3020, as applicable, in a future rulemaking.

(6) DEQ denial. If DEQ determines the proposal for an individual carbon intensity value is not complete or adequately documented to establish its reliability, DEQ must deny the modification proposal, notify the party which carbon intensity value to use and identify the basis for the denial.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0500

Registration

(1) Registration information. To register, a regulated or opt-in party must submit the following to DEQ:

(a) Company identification, including a physical and mailing address, phone number, e-mail address and a contact name.

(b) The fuel type(s) that will be sold, supplied or offered for sale in Oregon.

(c) The producer of the fuel, including its physical address and a contact name, for each fuel type.

(d) The regulated or opt-in party’s proposed carbon intensity value for each fuel type. The proposed carbon intensity value must be:

(A) A statewide carbon intensity value for any fuel listed under OAR 340-253-0400(1);

(B) An individual carbon intensity value listed in Table 1 or 2 under OAR 340-253-3010 or -3020; or

(C) A proposal to obtain a new individual carbon intensity value under OAR 340-253-0450.

(e) Other information requested by DEQ related to registration.

(2) Completeness of submittal. DEQ must review the information submitted under section (1) to determine if the submission is complete.

(a) If DEQ determines the submission is incomplete, DEQ must notify the party of the information needed to complete the submission. The party must provide the requested information within 30 calendar days from the date on the request.

(b) If DEQ determines the submission is complete, DEQ must notify the party in writing of the completeness determination.

(c) If DEQ does not notify the party in writing of the completeness determination within 30 calendar days of receipt of the registration application, the application is automatically deemed complete.

(3) Determination of carbon intensity values. DEQ must review the proposed carbon intensity values to determine if they are accurate. DEQ must review proposed carbon intensity values as follows:

(a) For a proposed carbon intensity value listed in Table 1 or 2 under OAR 340-253-3010 or -3020, DEQ must review whether the fuel type accurately matches the fuel and fuel production process of the proposed carbon intensity value listed.

(b) For a proposed individual carbon intensity value, DEQ must approve the carbon intensity value or notify the party which carbon intensity value to use under OAR 340-253-0450.

(4) Registration approval. DEQ must notify the party in writing of its registration approval. The notification must include confirmation of the carbon intensity value for each fuel type to be used in calculating surpluses and shortfalls under OAR 340-253-1020.

(5) Modifications to registration.

(a) The party must submit an amended registration to DEQ within 30 days of any change occurring to information described in section (1), including any change that would result in a different carbon intensity value.

(b) DEQ may require a party to submit an amended registration based on new information that DEQ obtains from any source.

(6) Opting out. To opt-out, an opt-in party must notify DEQ in writing. Regulated parties may not opt-out.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0600

Records

(1) Records. Each regulated and opt-in party must retain the following records for at least five years:

(a) Copies of all data and reports submitted to DEQ;

(b) Records of each fuel transaction made including:

(A) Volume of fuel;

(i) In gallons for liquid fuels including gasoline, diesel fuel, ethanol, biomass-based diesel, liquefied natural gas and liquefied petroleum gas;

(ii) In standard cubic feet for compressed natural gas;

(iii) In kilowatt-hours for electricity; and

(iv) In kilograms for hydrogen fuel.

(B) Names of the transferor and recipient;

(C) Whether the compliance obligation was transferred from the transferor to the recipient or retained;

(D) Carbon intensity of the fuel;

(E) Producer of the fuel;

(F) Invoice date;

(G) Unique transaction identification such as a bill of lading number;

(H) Product transfer documents;

(I) Exempt status documentation under OAR 340-253-0250, if fuel is excluded from surplus and shortfall calculations under OAR 340-253-1010; and

(J) For fuel that is exported outside Oregon, where the party is the exporter of record.

(c) Records used to document how a fuel is transported or conveyed to Oregon, if not produced in Oregon;

(d) Records used to calculate the carbon intensity of the fuel;

(e) Records used to calculate surpluses and shortfalls; and

(f) Other records used to determine compliance with the Oregon Clean Fuels Program.

(2) Review. All data, records and calculations used by a regulated or opt-in party to comply with the Oregon Clean Fuels Program are subject to verification by DEQ. The party must provide records retained under section (1) within 60 calendar days after the date DEQ requests a review of the records, unless otherwise specified.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0630

Quarterly Reports

Quarterly reports must include the following information, in a format provided or approved by DEQ:

(1) For each fuel type sold, supplied or offered for sale in Oregon:

(a) The total volume; and

(b) Carbon intensity.

(2) Surpluses and shortfalls as calculated under OAR 340-253-1020, including the;

(a) Amount of surpluses and shortfalls generated during the quarter; and

(b) Quarterly and year-to-date net balance calculations under OAR 340-253-1030 for gasoline and gasoline substitutes and diesel and diesel substitutes.

(3) The volumes of any exempt fuels or fuels transferred to exempt users under OAR 340-253-0250; and

(4) Volumes exported outside Oregon.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-0650

Annual Reports

Annual reports must include the following information, in a format provided or approved by DEQ:

(1) Company name of the regulated or opt-in party;

(2) Signature of a responsible official representing the regulated or opt-in party and certifying that the report is accurate to the best of the official’s knowledge;

(3) For each fuel type sold, supplied or offered for sale during the calendar year:

(a) The total volume; and

(b) Carbon intensity.

(4) Surpluses or shortfalls as calculated under OAR 340-253-1020, including the;

(a) Amount of surpluses and shortfalls carried over from the previous year; and

(b) Amount of surpluses and shortfalls generated during the year.

(5) Net balance calculations under OAR 340-253-1030 for gasoline and gasoline substitutes and diesel and diesel substitutes;

(6) The volumes of any exempt fuels or fuels transferred to exempt users under OAR 340-253-0250; and

(7) Volumes exported outside Oregon.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-1000

Surplus and Shortfall Basics

(1) Carbon intensity values.

(a) Except as provided in subsection (b), when calculating carbon intensity values, the regulated or opt-in party must use the DEQ carbon intensity value approved under OAR 340-253-0500.

(b) If the regulated or opt-in party has submitted a complete registration under OAR 340-253-0500 and DEQ has not approved the proposed carbon intensity value or has not determined that a different carbon intensity value more accurately reflects the fuel type, the party must use the carbon intensity value proposed in its registration.

(2) Fuel quantities. When calculating and reporting fuel quantities, the regulated or opt-in party must:

(a) Use energy units in MJ. To convert other energy units to MJ, the party must multiply the unit by the corresponding energy density under Table 3 under OAR 340-253-3030, and use the BTU-to-MJ conversion factor of 1,055 J per BTU.

(b) Express quantities to the nearest whole unit applicable for that quantity such as gallons, standard cubic feet, kilowatt-hours or pounds.

(3) Metric tons of CO2 equivalent. When reporting surpluses and shortfalls, the regulated or opt-in party must express quantities to the nearest whole metric ton of carbon dioxide equivalent.

(4) Surplus generation. A party generates a clean fuel surplus when:

(a) The carbon intensity of a fuel identified under OAR 340-253-1010 is lower than the corresponding baseline carbon intensity value for gasoline and gasoline substitutes or diesel fuel and diesel substitutes;

(b) The party has a DEQ-approved carbon intensity value; and

(c) The party demonstrates that the fuel is:

(A) Biodiesel, ethanol, or any other liquid fuel other than liquefied natural gas delivered to a public or private access fueling facility in Oregon;

(B) Electricity used in Oregon to charge a motor vehicle; or

(C) Compressed or liquefied natural gas, hydrogen fuel or liquefied petroleum gas dispensed in Oregon for use in a motor vehicle.

(5) Shortfall generation. A party generates a clean fuel shortfall when:

(a) The carbon intensity of a fuel identified under OAR 340-253-1010 is higher than the corresponding baseline carbon intensity value for gasoline and gasoline substitutes or diesel fuel and diesel substitutes; and

(b) The fuel is imported to Oregon or produced by an Oregon producer for use in Oregon for use in a motor vehicle.

(6) Nature of surpluses. Clean fuel surpluses are a regulatory instrument and do not constitute personal property, instruments, securities or any other form of property. Surpluses are not credits and may not be used to meet any compliance obligations other than as specified in this division.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-1010

Fuels to include in surplus and shortfall calculation

(1) Fuels included. A regulated or opt-in party must calculate surpluses and shortfalls for all regulated and opt-in fuels under OAR 340-253-0200 that are not otherwise exempt under OAR 340-253-0250, excluding fuels that are exported outside Oregon.

(2) Fuels excluded. Except as provided in section (3), the regulated or opt-in party may not include fuels excluded under OAR 340-253-0250 in surplus and shortfall calculations.

(3) Fuels sold to exempt users. The regulated or opt-in party may include or exclude fuel sold to an exempt user under OAR 340-253-0250 from the surpluses and shortfalls calculations.

(a) If the party includes the fuel, the party must include all fuel volumes listed on an invoice or all fuels included in a single or simultaneous delivery of fuel, regardless of how many invoices are used.

(b) If the party excludes the fuel, the party must document and report all excluded fuels under OAR 340-253-0600 through 340-253-0650.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-1020

Calculating Surpluses or Shortfalls

(1) The regulated or opt-in party must calculate surpluses and shortfalls for each fuel type included under 340-253-1010 using the surplus and shortfall basics under OAR 340-253-1020 to calculate the following:

(a) Energy in MJs by multiplying the amount of fuel by the energy density of the fuel in Table 3 under OAR 340-253-3030;

(b) Adjusted energy in MJs by multiplying the energy in MJs from (1)(a) by the energy economy ratio of the fuel using Table 4 or 5 under OAR 340-253-3040 or -3050 for gasoline and gasoline substitutes or diesel fuel and diesel substitutes;

(c) Carbon intensity difference by subtracting the fuel’s carbon intensity value from the corresponding baseline carbon intensity value for gasoline and gasoline substitutes or diesel fuel and diesel substitutes

(d) Grams of carbon dioxide equivalent by multiplying the adjusted energy in MJs in (1)(b) by the carbon intensity difference in (1)(c); and

(e) Metric tons of carbon dioxide equivalent by dividing the grams of carbon dioxide equivalent in (1)(c) by 1,000,000.

(2) If the fuel has a carbon intensity:

(a) Higher than the corresponding baseline carbon intensity value for gasoline and gasoline substitutes or diesel fuel and diesel substitutes, the absolute value of the metric tons of carbon dioxide equivalent under subsection (1)(e) is a shortfall.

(b) Lower than the corresponding baseline carbon intensity value for gasoline and gasoline substitutes or diesel fuel and diesel substitutes, the absolute value of the metric tons of carbon dioxide equivalent under subsection (1)(e) is a surplus.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-1030

Net Balance Calculation

A regulated or opt-in party must calculate the net balance at the end of the reporting period using the following formula: Net balance = SurplusesGenerated + SurplusesForward – ShortfallsGenerated – ShortfallsForward where:

(1) SurplusesGenerated is the total surpluses generated using calculations under OAR 340-253-1020;

(2) SurplusesForward is the surpluses carried forward from the previous reporting period;

(3) ShortfallsGenerated is the total shortfalls generated using calculations under OAR 340-253-1020; and

(4) ShortfallsForward is the shortfall carried forward from the previous reporting period.

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-3000

Tables used for the Oregon Clean Fuels Program

[Table not included. See ED. NOTE.]

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-3010

Table 1 — Oregon Carbon Intensity Lookup Table for Gasoline and Gasoline Substitutes

[Table not included. See ED. NOTE.]

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-3020

Table 2 — Oregon Carbon Intensity Lookup Table for Diesel Fuel and Diesel Substitutes

[Table not included. See ED. NOTE.]

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-3030

Table 3 — Oregon Energy Densities of Fuels

[Table not included. See ED. NOTE.]

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-3040

Table 4 — Oregon Energy Economy Ratios for Fuel used in Light-Duty Applications

[Table not included. See ED. NOTE.]

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12

340-253-3050

Table 5 — Oregon Energy Economy Ratios for Fuel Used in Heavy-Duty Applications

[Table not included. See ED. NOTE.]

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: ORS 468.020 Sec. 6, ch. 754, OL 2009, (2011 Edition)
Stats. Implemented: Sec. 6, ch. 754, OL 2009, (2011 Edition).
Hist.: DEQ 8-2012, f. & cert. ef. 12-11-12


 

Rule Caption: Title V operating permit fee increases authorized in statute.

Adm. Order No.: DEQ 9-2012

Filed with Sec. of State: 12-11-2012

Certified to be Effective: 12-11-12

Notice Publication Date: 3-1-12

Rules Amended: 340-220-0030, 340-220-0040, 340-220-0050

Subject: The Oregon Environmental Quality Commission adopted revisions to Oregon’s Title V permitting program. This rulemaking increases the Title V operating permit fees by the change in the Consumer Price Index authorized by federal and state law. The fee increases are necessary to cover the reasonable costs associated with DEQ’s operation of Oregon’s Title V program.

 The amendments to the Title V operating permits increase base fees under OAR 340-220-0030, emission fees under OAR 340-220-0040 and specific activity fees under OAR 340-220-0050. These fee increases affect the 2012 and 2013 invoice years for the 2012-13 and 2013-14 operating periods. DEQ calculated the estimated fees for the 2013 invoice year using the 2011 change in the CPI and for the 2014 invoice year using the 2012 change in the CPI.

Rules Coordinator: Maggie Vandehey—(503) 229-6878

340-220-0030

Annual Base Fee

(1) DEQ will assess an annual base fee of $7,466 for each source subject to the Oregon Title V Operating Permit program for the period of November 15, 2012 to November 14, 2013.

(2) DEQ will assess an annual base fee of $7,657 for each source subject to the Oregon Title V Operating Permit program for the period of November 15, 2013 to November 14, 2014, and for each annual period thereafter.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468 & 468A
Hist.: DEQ 20-1993(Temp), f. & cert. ef. 11-4-93; DEQ 13-1994, f. & cert. ef. 5-19-94; DEQ 12-1995, f. & cert. ef. 5-23-95; DEQ 22-1995, f. & cert. ef. 10-6-95; DEQ 7-1996, f. & cert. ef. 5-31-96; DEQ 9-1997, f. & cert. ef. 5-9-97; DEQ 12-1998, f. & cert. ef. 6-30-98; DEQ 10-1999, f. & cert. ef. 7-1-99; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-028-2580; DEQ 8-2000, f. & cert. ef. 6-6-00; DEQ 6-2001, f. 6-18-01, cert. ef. 7-1-01; DEQ 7-2001, f. 6-28-01, cert. ef. 7-1-01; DEQ 11-2003, f. & cert. ef. 7-23-03; DEQ 6-2004, f. & cert. ef. 7-29-04; DEQ 6-2005, f. & cert. ef. 7-11-05; DEQ 7-2006, f. & cert. ef. 6-30-06; DEQ 6-2007(Temp), f. & cert. ef. 8-17-07 thru 2-12-08; Administrative correction 2-22-08; DEQ 10-2008, f. & cert. ef. 8-25-08; DEQ 4-2009(Temp), f. & cert. ef. 8-27-09 thru 2-20-10; Administrative correction 3-18-10; DEQ 16-2010, f. & cert. ef. 12-20-10; DEQ 5-2012, f. & cert. ef. 7-2-12; DEQ 9-2012, f. & cert. ef. 12-11-12

340-220-0040

Emission Fee

(1) DEQ will assess an emission fee of $ 57.90 per ton of each regulated pollutant emitted during calendar year 2012 and for each calendar year thereafter to each source subject to the Oregon Title V Operating Permit Program.

(2) The emission fee will be applied to emissions based on the elections made according to OAR 340-220-0090.

Stat. Auth.: ORS 468.020
Stats. Implemented: ORS 468 & 468A
Hist.: DEQ 20-1993(Temp), f. & cert. ef. 11-4-93; DEQ 13-1994, f. & cert. ef. 5-19-94; DEQ 12-1995. f. & cert. ef. 5-23-95; DEQ 22-1995, f. & cert. ef. 10-6-95; DEQ 7-1996, f. & cert. ef. 5-31-96; DEQ 9-1997, f. & cert. ef. 5-9-97; DEQ 12-1998, f. & cert. ef. 6-30-98; DEQ 10-1999, f. & cert. ef. 7-1-99; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-028-2590; DEQ 8-2000, f. & cert. ef. 6-6-00; DEQ 6-2001, f. 6-18-01, cert. ef. 7-1-01; DEQ 7-2001, f. 6-28-01, cert. ef. 7-1-01; DEQ 11-2003, f. & cert. ef. 7-23-03; DEQ 6-2004, f. & cert. ef. 7-29-04; DEQ 6-2005, f. & cert. ef. 7-11-05; DEQ 7-2006, f. & cert. ef. 6-30-06; DEQ 6-2007(Temp), f. & cert. ef. 8-17-07 thru 2-12-08; Administrative correction 2-22-08; DEQ 10-2008, f. & cert. ef. 8-25-08; DEQ 4-2009(Temp), f. & cert. ef. 8-27-09 thru 2-20-10; Administrative correction 3-18-10; DEQ 16-2010, f. & cert. ef. 12-20-10; DEQ 5-2012, f. & cert. ef. 7-2-12; DEQ 9-2012, f. & cert. ef. 12-11-12

340-220-0050

Specific Activity Fees

(1) DEQ will assess specific activity fees for an Oregon Title V Operating Permit program source for the period of January 1, 2012 to December 31, 2012 as follows:

(a) Existing source permit revisions:

(A) Administrative* —$455;

(B) Simple —$1,820;

(C) Moderate —$13,657;

(D) Complex —$27,314.

(b) Ambient air monitoring review —$3,641.

(2) DEQ will assess specific activity fees for an Oregon Title V Operating Permit program source as of January 1, 2013 as follows:

(a) Existing source permit revisions:

(A) Administrative* —$466;

(B) Simple —$1,867;

(C) Moderate —$14,008;

(D) Complex —$28,016.

(b) Ambient air monitoring review —$3,735.

*Includes revisions specified in OAR 340-218-0150(1)(a) through (g). Other revisions specified in OAR 340-218-0150 are subject to simple, moderate or complex revision fees.

(3) DEQ will assess the following specific activity fee for an Oregon Title V Operating Permit program source for annual greenhouse gas reporting, as required by OAR 340-215-0060(1) —15 percent of the following, not to exceed $4,500:

(a) The applicable annual base fee (for the period of November 15 of the current year to November 14 of the following year); and

(b) The applicable annual emission fee (for emissions during the previous calendar year).

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468 & 468A
Hist.: DEQ 20-1993(Temp), f. & cert. ef. 11-4-93; DEQ 13-1994, f. & cert. ef. 5-19-94; DEQ 12-1998, f. & cert. ef. 6-30-98; DEQ 10-1999, f. & cert. ef. 7-1-99; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-028-2600; DEQ 8-2000, f. & cert. ef. 6-6-00; DEQ 6-2001, f. 6-18-01, cert. ef. 7-1-01; DEQ 7-2001, f. 6-28-01, cert. ef. 7-1-01; DEQ 11-2003, f. & cert. ef. 7-23-03; DEQ 6-2004, f. & cert. ef. 7-29-04; DEQ 6-2005, f. & cert. ef. 7-11-05; DEQ 7-2006, f. & cert. ef. 6-30-06; DEQ 6-2007(Temp), f. & cert. ef. 8-17-07 thru 2-12-08; Administrative correction 2-22-08; DEQ 10-2008, f. & cert. ef. 8-25-08; DEQ 4-2009(Temp), f. & cert. ef. 8-27-09 thru 2-20-10; DEQ 9-2009(Temp), f. 12-24-09, cert. ef. 1-1-10 thru 6-30-10; Administrative correction 7-27-10; DEQ 12-2010, f. & cert. ef. 10-27-10; DEQ 16-2010, f. & cert. ef. 12-20-10; DEQ 11-2011, f. & cert. ef. 7-21-11; DEQ 12-2011, f. & cert. ef. 7-21-11; DEQ 5-2012, f. & cert. ef. 7-2-12; DEQ 9-2012, f. & cert. ef. 12-11-12


 

Rule Caption: Klamath Falls PM2.5 Attainment Plan.

Adm. Order No.: DEQ 10-2012

Filed with Sec. of State: 12-11-2012

Certified to be Effective: 12-11-12

Notice Publication Date: 8-1-12

Rules Adopted: 340-240-0500, 340-240-0510, 340-240-0520, 340-240-0530, 340-240-0540, 340-240-0550, 340-240-0560, 340-240-0570, 340-240-0580, 340-240-0610, 340-240-0620, 340-240-0630, 340-262-1000, 340-264-0175

Rules Amended: 340-200-0040, 340-204-0010, 340-225-0090, 340-240-0010, 340-240-0030, 340-264-0040, 340-264-0078, 340-264-0080, 340-264-0100

Subject: The Oregon Department of Environmental Quality has adopted rules as part of an attainment plan that will bring the Klamath Falls area into compliance with National Ambient Air Quality Standards for fine particulate, or PM2.5, by the federal deadline of December 2014. These amendments will be submitted to the U.S. Environmental Protection Agency (EPA) as a revision to the State Implementation Plan, which is a requirement of the federal Clean Air Act. The attainment plan specifies how the community will meet the particulate standard by the federal Clean Air Act deadline of December 2014, including who will conduct the work, and when and how it will be done.

 The attainment plan, based on recommendations from DEQ’s citizen advisory committee, is a comprehensive mixture of emission reduction strategies consisting of local ordinances, DEQ regulations, and non-regulatory elements including incentives and education. The rules increase regulatory flexibility by allowing new or expanded industrial facilities in Klamath Falls to meet existing federal requirements to offset their emissions by removing woodstoves from homes, thereby decreasing wood burning emissions. The rules also include other requirements for industries in the area, woodstove requirements, and updated definitions.

Rules Coordinator: Maggie Vandehey—(503) 229-6878

340-200-0040

State of Oregon Clean Air Act Implementation Plan

(1) This implementation plan, consisting of Volumes 2 and 3 of the State of Oregon Air Quality Control Program, contains control strategies, rules and standards prepared by the Department of Environmental Quality and is adopted as the state implementation plan (SIP) of the State of Oregon pursuant to the federal Clean Air Act, 42 U.S.C.A 7401 to 7671q.

(2) Except as provided in section (3), revisions to the SIP will be made pursuant to the Commission’s rulemaking procedures in division 11 of this chapter and any other requirements contained in the SIP and will be submitted to the United States Environmental Protection Agency for approval. The State Implementation Plan was last modified by the Commission on December 6, 2012.

(3) Notwithstanding any other requirement contained in the SIP, the Department may:

(a) Submit to the Environmental Protection Agency any permit condition implementing a rule that is part of the federally-approved SIP as a source-specific SIP revision after the Department has complied with the public hearings provisions of 40 CFR 51.102 (July 1, 2002); and

(b) Approve the standards submitted by a regional authority if the regional authority adopts verbatim any standard that the Commission has adopted, and submit the standards to EPA for approval as a SIP revision.

NOTE: Revisions to the State of Oregon Clean Air Act Implementation Plan become federally enforceable upon approval by the United States Environmental Protection Agency. If any provision of the federally approved Implementation Plan conflicts with any provision adopted by the Commission, the Department shall enforce the more stringent provision.

Stat. Auth.: ORS 468.020, 468A.035 & 468A.070
Stats. Implemented: ORS 468A.035
Hist.: DEQ 35, f. 2-3-72, ef. 2-15-72; DEQ 54, f. 6-21-73, ef. 7-1-73; DEQ 19-1979, f. & ef. 6-25-79; DEQ 21-1979, f. & ef. 7-2-79; DEQ 22-1980, f. & ef. 9-26-80; DEQ 11-1981, f. & ef. 3-26-81; DEQ 14-1982, f. & ef. 7-21-82; DEQ 21-1982, f. & ef. 10-27-82; DEQ 1-1983, f. & ef. 1-21-83; DEQ 6-1983, f. & ef. 4-18-83; DEQ 18-1984, f. & ef. 10-16-84; DEQ 25-1984, f. & ef. 11-27-84; DEQ 3-1985, f. & ef. 2-1-85; DEQ 12-1985, f. & ef. 9-30-85; DEQ 5-1986, f. & ef. 2-21-86; DEQ 10-1986, f. & ef. 5-9-86; DEQ 20-1986, f. & ef. 11-7-86; DEQ 21-1986, f. & ef. 11-7-86; DEQ 4-1987, f. & ef. 3-2-87; DEQ 5-1987, f. & ef. 3-2-87; DEQ 8-1987, f. & ef. 4-23-87; DEQ 21-1987, f. & ef. 12-16-87; DEQ 31-1988, f. 12-20-88, cert. ef. 12-23-88; DEQ 2-1991, f. & cert. ef. 2-14-91; DEQ 19-1991, f. & cert. ef. 11-13-91; DEQ 20-1991, f. & cert. ef. 11-13-91; DEQ 21-1991, f. & cert. ef. 11-13-91; DEQ 22-1991, f. & cert. ef. 11-13-91; DEQ 23-1991, f. & cert. ef. 11-13-91; DEQ 24-1991, f. & cert. ef. 11-13-91; DEQ 25-1991, f. & cert. ef. 11-13-91; DEQ 1-1992, f. & cert. ef. 2-4-92; DEQ 3-1992, f. & cert. ef. 2-4-92; DEQ 7-1992, f. & cert. ef. 3-30-92; DEQ 19-1992, f. & cert. ef. 8-11-92; DEQ 20-1992, f. & cert. ef. 8-11-92; DEQ 25-1992, f. 10-30-92, cert. ef. 11-1-92; DEQ 26-1992, f. & cert. ef. 11-2-92; DEQ 27-1992, f. & cert. ef. 11-12-92; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 8-1993, f. & cert. ef. 5-11-93; DEQ 12-1993, f. & cert. ef. 9-24-93; DEQ 15-1993, f. & cert. ef. 11-4-93; DEQ 16-1993, f. & cert. ef. 11-4-93; DEQ 17-1993, f. & cert. ef. 11-4-93; DEQ 19-1993, f. & cert. ef. 11-4-93; DEQ 1-1994, f. & cert. ef. 1-3-94; DEQ 5-1994, f. & cert. ef. 3-21-94; DEQ 14-1994, f. & cert. ef. 5-31-94; DEQ 15-1994, f. 6-8-94, cert. ef. 7-1-94; DEQ 25-1994, f. & cert. ef. 11-2-94; DEQ 9-1995, f. & cert. ef. 5-1-95; DEQ 10-1995, f. & cert. ef. 5-1-95; DEQ 14-1995, f. & cert. ef. 5-25-95; DEQ 17-1995, f. & cert. ef. 7-12-95; DEQ 19-1995, f. & cert. ef. 9-1-95; DEQ 20-1995 (Temp), f. & cert. ef. 9-14-95; DEQ 8-1996(Temp), f. & cert. ef. 6-3-96; DEQ 15-1996, f. & cert. ef. 8-14-96; DEQ 19-1996, f. & cert. ef. 9-24-96; DEQ 22-1996, f. & cert. ef. 10-22-96; DEQ 23-1996, f. & cert. ef. 11-4-96; DEQ 24-1996, f. & cert. ef. 11-26-96; DEQ 10-1998, f. & cert. ef. 6-22-98; DEQ 15-1998, f. & cert. ef. 9-23-98; DEQ 16-1998, f. & cert. ef. 9-23-98; DEQ 17-1998, f. & cert. ef. 9-23-98; DEQ 20-1998, f. & cert. ef. 10-12-98; DEQ 21-1998, f. & cert. ef. 10-12-98; DEQ 1-1999, f. & cert. ef. 1-25-99; DEQ 5-1999, f. & cert. ef. 3-25-99; DEQ 6-1999, f. & cert. ef. 5-21-99; DEQ 10-1999, f. & cert. ef. 7-1-99; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-020-0047; DEQ 15-1999, f. & cert. ef. 10-22-99; DEQ 2-2000, f. 2-17-00, cert. ef. 6-1-01; DEQ 6-2000, f. & cert. ef. 5-22-00; DEQ 8-2000, f. & cert. ef. 6-6-00; DEQ 13-2000, f. & cert. ef. 7-28-00; DEQ 16-2000, f. & cert. ef. 10-25-00; DEQ 17-2000, f. & cert. ef. 10-25-00; DEQ 20-2000 f. & cert. ef. 12-15-00; DEQ 21-2000, f. & cert. ef. 12-15-00; DEQ 2-2001, f. & cert. ef. 2-5-01; DEQ 4-2001, f. & cert. ef. 3-27-01; DEQ 6-2001, f. 6-18-01, cert. ef. 7-1-01; DEQ 15-2001, f. & cert. ef. 12-26-01; DEQ 16-2001, f. & cert. ef. 12-26-01; DEQ 17-2001, f. & cert. ef. 12-28-01; DEQ 4-2002, f. & cert. ef. 3-14-02; DEQ 5-2002, f. & cert. ef. 5-3-02; DEQ 11-2002, f. & cert. ef. 10-8-02; DEQ 5-2003, f. & cert. ef. 2-6-03; DEQ 14-2003, f. & cert. ef. 10-24-03; DEQ 19-2003, f. & cert. ef. 12-12-03; DEQ 1-2004, f. & cert. ef. 4-14-04; DEQ 10-2004, f. & cert. ef. 12-15-04; DEQ 1-2005, f. & cert. ef. 1-4-05; DEQ 2-2005, f. & cert. ef. 2-10-05; DEQ 4-2005, f. 5-13-05, cert. ef. 6-1-05; DEQ 7-2005, f. & cert. ef. 7-12-05; DEQ 9-2005, f. & cert. ef. 9-9-05; DEQ 2-2006, f. & cert. ef. 3-14-06; DEQ 4-2006, f. 3-29-06, cert. ef. 3-31-06; DEQ 3-2007, f. & cert. ef. 4-12-07; DEQ 4-2007, f. & cert. ef. 6-28-07; DEQ 8-2007, f. & cert. ef. 11-8-07; DEQ 5-2008, f. & cert. ef. 3-20-08; DEQ 11-2008, f. & cert. ef. 8-29-08; DEQ 12-2008, f. & cert. ef. 9-17-08; DEQ 14-2008, f. & cert. ef. 11-10-08; DEQ 15-2008, f. & cert. ef 12-31-08; DEQ 3-2009, f. & cert. ef. 6-30-09; DEQ 8-2009, f. & cert. ef. 12-16-09; DEQ 2-2010, f. & cert. ef. 3-5-10; DEQ 5-2010, f. & cert. ef. 5-21-10; DEQ 14-2010, f. & cert. ef. 12-10-10; DEQ 1-2011, f. & cert. ef. 2-24-11; DEQ 2-2011, f. 3-10-11, cert. ef. 3-15-11; DEQ 5-2011, f. 4-29-11, cert. ef. 5-1-11; DEQ 18-2011, f. & cert. ef. 12-21-11; DEQ 1-2012, f. & cert. ef. 5-17-12; DEQ 7-2012, f. & cert.ef 12-10-12; DEQ 10-2012, f. & cert. ef. 12-11-12

340-204-0010

Definitions

The definitions in OAR 340-200-0020 and this rule apply to this division. If the same term is defined in this rule and 340-200-0020, the definition in this rule applies to this division. Definitions of boundaries in this rule also apply to OAR 340 division 200 through 268 and throughout the State of Oregon Clean Air Act Implementation Plan adopted under 340-200-0040.

(1) “AQCR” means Air Quality Control Region.

(2) “AQMA” means Air Quality Maintenance Area.

(3) “CO” means Carbon Monoxide.

(4) “CBD” means Central Business District.

(5) “Criteria Pollutant” means any of the six pollutants set out by the Clean Air Act (sulfur oxides, particulate matter, ozone, carbon monoxide, nitrogen dioxide, and lead) for which the EPA has promulgated standards in 40 CFR 50.4 through 50.12 (July, 1993).

(6) “Eugene-Springfield UGB” means the area within the bounds beginning at the Willamette River at a point due east from the intersection of East Beacon Road and River Loop No.1; thence southerly along the Willamette River to the intersection with Belt Line Road; thence easterly along Belt Line Road approximately one-half mile to the intersection with Delta Highway; thence northwesterly and then northerly along Delta Highway and on a line north from the Delta Highway to the intersection with the McKenzie River; thence generally southerly and easterly along the McKenzie River approximately eleven miles to the intersection with Marcola Road; thence southwesterly along Marcola Road to the intersection with 42nd Street; thence southerly along 42nd Street to the intersection with the northern branch of US Highway 126; thence easterly along US Highway 126 to the intersection with 52nd Street; thence north along 52nd Street to the intersection with High Banks Road; thence easterly along High Banks Road to the intersection with 58th Street; thence south along 58th Street to the intersection with Thurston Road; thence easterly along Thurston Road to the intersection with the western boundary of Section 36, T17S, R2W; thence south to the southwest corner of Section 36, T17S, R2W; thence west to the Springfield City Limits; thence following the Springfield City Limits southwesterly to the intersection with the western boundary of Section 2, T18S, R2W; thence on a line southwest to the Private Logging Road approximately one-half mile away; thence southeasterly along the Private Logging Road to the intersection with Wallace Creek; thence southwesterly along Wallace Creek to the confluence with the Middle Fork of the Willamette River; thence generally northwesterly along the Middle Fork of the Willamette River approximately seven and one-half miles to the intersection with the northern boundary of Section 11, T18S, R3W; thence west to the northwest corner of Section 10, T18S, R3W; thence south to the intersection with 30th Avenue; thence westerly along 30th Avenue to the intersection with the Eugene City Limits; thence following the Eugene City Limits first southerly then westerly then northerly and finally westerly to the intersection with the northern boundary of Section 5, T18S, R4W; thence west to the intersection with Greenhill Road; thence north along Greenhill Road to the intersection with Barger Drive; thence east along Barger Drive to the intersection with the Eugene City Limits (Ohio Street); thence following the Eugene City Limits first north then east then north then east then south then east to the intersection with Jansen Drive; thence east along Jansen Drive to the intersection with Belt Line Road; thence northeasterly along Belt Line Road to the intersection with Highway 99; thence northwesterly along Highway 99 to the intersection with Clear Lake Road; thence west along Clear Lake Road to the intersection with the western boundary of Section 9, T17S, R4W; thence north to the intersection with Airport Road; thence east along Airport Road to the intersection with Highway 99; thence northwesterly along Highway 99 to the intersection East Enid Road; thence east along East Enid Road to the intersection with Prairie Road; thence southerly along Prairie Road to the intersection with Irvington Road; thence east along Irvington Road to the intersection with the Southern Pacific Railroad Line; thence southeasterly along the Southern Pacific Railroad Line to the intersection with Irving Road; thence east along Irving Road to the intersection with Kalmia Road; thence northerly along Kalmia Road to the intersection with Hyacinth Road; thence northerly along Hyancinth Road to the intersection with Irvington Road; thence east along Irvington Road to the intersection with Spring Creek; thence northerly along Spring Creek to the intersection with River Road; thence northerly along River Road to the intersection with East Beacon Drive; thence following East Beacon Drive first east then south then east to the intersection with River Loop No.1; thence on a line due east to the Willamette River and the point of beginning.

(7) “Grants Pass CBD” means the area within the City of Grants Pass enclosed by “B” Street on the north, 8th Street to the east, “M” Street on the south, and 5th Street to the west.

(8) Grants Pass Control Area means the area of the state beginning at the northeast corner of Section 35, T35S, R5W; thence south to the southeast corner of Section 11, T37S, R5W; thence west to the southwest corner of Section 9, T37S, R6W; thence north to the northwest corner of Section 33, T35S, R6W; thence east to the point of beginning.

(9) “Grants Pass UGB” as shown on the Plan and Zoning maps for the City of Grants Pass as of Feb. 1, 1988 is the area within the bounds beginning at the NW corner of Sec. 7, T36S, R5W; thence south to the SW corner of Sec. 7; thence west along the southern boundary of Sec. 12, T36S, R5W approx. 2000 feet; thence south approx. 100 feet to the northern right of way of the Southern Pacific Railroad Line (SPRR Line); thence southeasterly along said right of way approx. 800 feet; thence south approx. 400 feet; thence west approx. 1100 feet; thence south approx. 700 feet to the intersection with the Hillside Canal; thence west approx. 100 feet; thence south approx. 550 feet to the intersection with Upper River Road; thence southeasterly along Upper River Road and continuing east along Old Upper River Road approx. 700 feet; thence south approx. 1550 feet; thence west approx. 350 feet; thence south approx. 250 feet; thence west approx. 1000 feet; thence south approx. 600 feet to the north end of Roguela Lane; thence east approx. 400 feet; thence south approx. 1400 feet to the intersection with Lower River Road; thence west along Lower River Road approx. 1400 feet; thence south approx. 1350 feet; thence west approx. 25 feet; thence south approx. 1200 feet to the south bank of the Rogue River; thence northwesterly along said bank approx. 2800 feet; thence on a line southwesterly and parallel to Parkhill Place approx. 600 feet; thence northwesterly at a 90 degree angle approximately 300 feet to the intersection with Parkhill Place; thence southwesterly along Parkhill Place approx. 250 feet; thence on a line southeasterly forming a 90 degree angle approximately 300 feet to a point even with Leonard Road; thence west approx. 1500 feet along Leonard Road; thence north approx. 200 feet; thence west to the west side of Schroeder Lane; thence north approx. 150 feet; thence west approx. 200 feet; thence south to the intersection with Leonard Road; thence west along Leonard Road approx. 450 feet; thence north approx. 300 feet; thence east approx. 150 feet; thence north approx. 400 feet; thence west approx. 500 feet; thence south approx. 300 feet; thence west to the intersection with Coutant Lane; thence south along Coutant Lane to the intersection with Leonard Road; thence west along Leonard Road to the intersection with Buena Vista Lane; thence north along the west side of Buena Vista Lane approx. 200 feet; thence west approx. 150 feet; thence north approx. 150 feet; thence west approx. 200 feet; thence north approx. 400 feet; thence west approx. 600 feet to the intersection with the western boundary of Sec. 23, T36S, R6W; thence south to the intersection with Leonard Road; thence west along Leonard Road approx. 300 feet; thence north approx. 600 feet to the intersection with Darneille Lane; thence northwesterly along Darneille Lane approx. 200 feet; thence west approx. 300 feet; thence south approx. 600 feet to the intersection with Leonard Road; thence west along Leonard Road approx. 700 feet; thence south approx. 1350 feet; thence east approx. 1400 feet to the intersection with Darneille Lane; thence south along Darneille Lane approx. 600 feet; thence west approx. 300 feet; thence south to the intersection with Redwood Avenue; thence east along Redwood Avenue to the intersection with Hubbard Lane and the western boundary of Sec. 23, T36S, R6W; thence south along Hubbard Lane approx. 1850 feet; thence west approx. 1350 feet ; thence south to the south side of U.S. Highway 199; thence westerly along U.S. 199 approx. 1600 feet to the intersection with the north-south midpoint of Sec. 27, T36S, R6W; thence south approx. 2200 feet; thence east approx. 1400 feet; thence north approx. 1000 feet; thence east approx. 300 feet; thence north approx. 250 feet to the intersection with the Highline Canal; thence northerly along the Highline Canal approx. 900 feet; thence east to the intersection with Hubbard Lane; thence north along Hubbard Lane approximately 600 feet; thence east approx. 200 feet; thence north approx. 400 feet to a point even with Canal Avenue; thence east approx. 550 feet; thence north to the south side of U.S. 199; thence easterly along the southern edge of U.S. 199 to the intersection with Willow Lane; thence south along Willow Lane to the intersection with Demaray Drive; thence easterly along Demaray Drive and continuing along the southern edge of U.S. 199 to the intersection with Dowell Road; thence south along Dowell Road approx. 550 feet; thence easterly approx. 750 feet; thence north to the intersection with the South Canal; thence easterly along the South Canal to the intersection with Schutzwohl Lane; thence south approx. 1300 feet to a point even with West Harbeck Road; thence east approx. 2000 feet to the intersection with Allen Creek; thence southerly along Allen Creek approx. 1400 feet to a point even with Denton Trail to the west; thence west to the intersection with Highline Canal; thence southerly along Highline Canal to the intersection with the southern boundary of Sec. 25, T36S, R6W; thence east to the intersection with Allen Creek; thence southerly along Allen Creek to the intersection with the western boundary of Sec. 31, T36S, R5W; thence south to the SW corner of Sec. 31; thence east to the intersection with Williams Highway; thence southeasterly along Williams Highway approx. 1300 feet; thence east approx. 200 feet; thence north approx. 400 feet; thence east approx. 700 feet; thence north to the intersection with Espey Road; thence west along Espey Road approx. 150 feet; thence north approx. 600 feet; thence east approx. 300 feet; thence north approx. 2000 feet; thence west approx. 2100 feet; thence north approx. 1350 feet; thence east approx. 800 feet; thence north approx. 2800 feet to the east-west midline of Sec. 30, T36S, R5W; thence on a line due NE approx. 600 feet; thence north approx. 100 feet; thence east approx. 600 feet; thence north approx. 100 feet to the intersection with Highline Canal; thence easterly along Highline Canal approx. 1300 feet; thence south approx. 100 feet; thence east to the intersection with Harbeck Road; thence north along Harbeck Road to the intersection with Highline Canal; thence easterly along Highline Canal to a point approx. 250 feet beyond Skyway Road; thence south to the intersection with Skyway Road; thence east to the intersection with Highline Canal; thence southeasterly along Highline Canal approx. 1200 feet; thence on a line due SW to the intersection with Bluebell Lane; thence southerly along Bluebell Lane approx. 150 feet; thence east to the intersection with Sky Crest Drive; thence southerly along Sky Crest Drive to the intersection with Harper Loop; thence southeasterly along Harper Loop to the intersection with the east-west midline of Sec. 29, T36S, R5W; thence east approx. 400 feet; thence south approx. 1300 feet to a point even with Troll View Road to the east; thence east to the intersection with Hamilton Lane; thence north along Hamilton Lane to the intersection with the Highline Canal; thence northeasterly along the Highline Canal to the northern boundary of Sec. 28, T36S, R5W; thence east approx. 1350 feet to the transmission line; thence north to the intersection with Fruitdale Drive; thence southwesterly along Fruitdale Drive approx. 700 feet; thence north to the northern edge of U.S. 199; thence easterly along the northern edge of U.S. 199 approx. 50 feet; thence north to the north bank of the Rogue River; thence northeasterly along the north bank of the Rogue River approx. 2100 feet to a point even with Ament Road; thence north to Ament Road and following Ament Road to U.S. Interstate Highway 5 (U.S. I-5); thence continuing north to the 1200 foot contour line; thence following the 1200 foot contour line northwesterly approx. 7100 feet to the city limits and a point even with Savage Street to the west; thence north following the city limits approx. 400 feet; thence west to the intersection with Beacon Street; thence north along Beacon Street and the city limits approx. 250 feet; thence east along the city limits approx. 700 feet; thence north along the city limits approx. 2200 feet; thence southwesterly along the city limits approximately 800 feet to the intersection with the 1400 foot contour line; thence northerly and northwesterly along the 1400 foot contour line approx. 900 feet to the intersection with the northern boundary of Sec. 9, T36S, R5W; thence west along said boundary approx. 100 feet to the NW corner of Sec. 9; thence south along the western boundary of Sec. 9 approx. 700 feet; thence west approx. 1400 feet; thence north approx. 2400 feet; thence west approx. 1350 feet; thence north approx. 1100 feet to the city limits; thence following the city limits first west approx. 1550 feet, then south approx. 800 feet, then west approx. 200 feet, then south approx. 200 feet, then east approx. 200 feet, then south approx. 300 feet, and finally westerly approx. 1200 feet to the intersection with the western boundary of Sec. 5, T36S, R5W; thence south along said boundary to the northern side of Vine Avenue; thence northwesterly along the northern side of Vine Avenue approx. 3150 feet to the intersection with the west fork of Gilbert Creek; thence north to the intersection with the southern right of way of U.S. I-5; thence northwesterly along said right of way approx. 1600 feet; thence south to the intersection with Old Highland Avenue; thence northwesterly along Highland Avenue approx. 650 feet; thence west approx. 350 feet; thence south approx. 1400 feet; thence east approx. 700 feet; thence south approx. 1000 feet; thence on a line SW approx. 800 feet; thence south approx. 1400 feet to the intersection with the northern boundary of Sec. 7, T36S, R5W; thence west to the NW corner of Sec. 7, the point of beginning.

(10) Klamath Falls Control Area means the area of the state beginning at the northeast corner of Section 8, T38S, R10E, thence south to the southeast corner of Section 5, T40S, R10E; thence west to the southwest corner of Section 3, T40S, R8E; thence north to the northwest corner of Section 10, T38S, R8E; thence east to the point of beginning.

(11) “Klamath Falls Nonattainment Area” means the area of the state beginning at the northwest corner of Section 31, T37S, R9E; thence east approximately two miles to the northeast corner of Section 32; thence south approximately four miles to the southeast corner of Section 17, T38S, R9E; thence east approximately one mile to the southwest corner of Section 15,; thence north approximately one mile to the northwest corner of Section 15; thence east approximately 2 miles to the northeast corner of Section 14; thence south approximately one mile to the northwest corner of section 24; thence east approximately one mile to the northeast corner of Section 24; thence south approximately three miles to the southeast corner of Section 36; thence east approximately four miles to the northeast corner of Section 3, T39S, R10E; thence south approximately three miles to the southeast corner of Section 15; thence west approximately two miles to the southwest corner of Section16; thence south approximately two miles to the southeast corner of Section 29; thence west approximately five miles to the southwest corner of Section 27, T39S, R9E; thence north approximately one mile to the northeast corner of Section 27; thence west approximately four miles to the southwest corner of Section 24, T39S R8E; thence north approximately two miles to the northeast corner of Section 13; thence west approximately one mile to the southwest corner of Section 11; thence north approximately four miles to the northwest corner of Section 26 T38S, R8E; thence west one mile to the southwest corner of Section 22; thence north approximately one mile to the northwest corner of Section 22; thence west approximately one mile to the southwest corner of Section 16; thence north approximately one mile to the northeast corner of Section 16; thence west approximately one mile to the southwest corner of Section 8; thence north approximately two miles to the northwest corner of Section 5; thence east to the northeast corner of Section 1; thence north approximately one mile to the point of beginning.

(12) “Klamath Falls UGB” means the area within the bounds beginning at the southeast corner of Section 36, Township 38 South, Range 9 East; thence northerly approximately 4500 feet; thence westerly approximately 1/4 mile; thence northerly approximately 3/4 mile into Section 25, T38S, R9E; thence westerly approximately 1/4 mile; thence northerly approximately 1/2 mile to the southern boundary of Section 24, T38S, R9E; thence westerly approximately 1/2 mile to the southeast corner of Section 23, T38S, R9E; thence northerly approximately 1/2 mile; thence westerly approximately 1/4 mile; thence northerly approximately 1/2 mile to the southern boundary of Section 14, T38S, R9E; thence generally northwesterly along the 5000 foot elevation contour line approximately 3/4 mile; thence westerly 1 mile; thence north to the intersection with the northern boundary of Section 15, T38S, R9E; thence west 1/4 mile along the northern boundary of Section 15, T38S, R9E; thence generally southeasterly following the 4800 foot elevation contour line around the old Oregon Institute of Technology Campus to meet with the westerly line of Old Fort Road in Section 22, T38S, R9E; thence southwesterly along the westerly line of Old Fort Road approximately 1 and 1/4 miles to Section 27, T38S, R9E; thence west approximately 1/4 mile; thence southwesterly approximately 1/2 mile to the intersection with Section 27, T38S, R9E; thence westerly approximately 1/2 mile to intersect with the Klamath Falls City Limits at the northerly line of Loma Linda Drive in Section 28, T38S, R9E; thence northwesterly along Loma Linda Drive approximately 1/4 mile; thence southwesterly approximately 1/8 mile to the Klamath Falls City Limits; thence northerly along the Klamath Falls City Limits approximately 1 mile into Section 21, T38S, R9E; thence westerly approximately 1/4 mile; thence northerly approximately 1 mile into Section 17, T38S, R9E; thence westerly approximately 3/4 mile into Section 17, T38S, R9E; thence northerly approximately 1/4 mile; thence westerly approximately 1 mile to the west boundary of Highway 97 in Section 18, T38S, R9E; thence southeasterly along the western boundary of Highway 97 approximately 1/2 mile; thence southwesterly away from Highway 97; thence southeasterly to the intersection with Klamath Falls City Limits at Front Street; thence westerly approximately 1/4 mile to the western boundary of Section 19, T38S, R9E; thence southerly approximately 1 and 1/4 miles along the western boundary of Section 19, T38S, R9E and the Klamath Falls City Limits to the south shore line of Klamath Lake; thence northwesterly along the south shore line of Klamath Lake approximately 1 and 1/4 miles across Section 25, T38S, R9E and Section 26, T38S, R9E; thence westerly approximately 1/2 mile along Section 26, T38S, R9E; thence southerly approximately 1/2 mile to Section 27, T38S, R9E to the intersection with eastern boundary of Orindale Draw, thence southerly along the eastern boundary of Orindale Draw approximately 1 and 1/4 miles into Section 35, T38S, R9E; thence southerly approximately 1/2 mile into Section 2, T39S, R8E; thence easterly approximately 1/4 mile; thence northerly approximately 1/4 mile to the southeast corner of Section 35, T38S, R8E and the Klamath Falls City Limits; thence easterly approximately 1/2 mile to the northern boundary of Section 1, T38S, R8E; thence southeasterly approximately 1/2 mile to Orindale Road; thence north 500 feet along the west side of an easement; thence easterly approximately 1 and 1/4 miles through Section 1, T38S, R8E to the western boundary of Section 6, T39S, R9E; thence southerly approximately 3/4 mile to the southwest corner of Section 6, T39S, R9E; thence easterly approximately 1/8 mile to the western boundary of Highway 97; thence southwesterly along the Highway 97 right-of-way approximately 1/4 mile; thence westerly approximately 1/2 mile to Agate Street in Section 7, T39S, R8E; thence northerly approximately 1/4 mile; thence westerly approximately 3/4 mile to Orindale Road in Section 12, T39S, R8E; thence northerly approximately 1/4 mile into Section 1, T39S, R8E; thence westerly approximately 3/4 mile to the Section 2, T39S, R8E boundary line; thence southerly approximately 3/4 mile along the Section 2, T39S, R8E boundary line to the northwest corner of Section 12, T39S, R8E; thence westerly approximately 1/8 mile into Section 11, T39S, R8E; thence southerly approximately 1/8 mile; thence northeasterly approximately 3/4 mile to the southern boundary of Section 12, T39S, R8E at Balsam Drive; thence southerly approximately 1/4 mile into Section 12, T39S, R8E; thence easterly approximately 1/4 mile to Orindale Road; thence southeasterly approximately 500 feet to Highway 66; thence southwesterly approximately 1/2 mile along the boundary of Highway 66 to Holiday Road; thence southerly approximately 1/2 mile into Section 13, T39S, R8E; thence northeasterly approximately 1/4 mile to the eastern boundary of Section 13, T39S, R8E; thence northerly approximately 1/4 mile along the eastern boundary of Section 13, T39S, R8E; thence westerly approximately 1/4 mile to Weyerhaeuser Road; thence northerly approximately 1/8 mile; thence easterly approximately 1/8 mile; thence northerly approximately 1/8 mile; thence westerly approximately 1/8 mile to Farrier Avenue; thence northerly approximately 1/4 mile; thence easterly approximately 1/4 mile to the eastern boundary of Section 13, T39S, R8E; thence northerly approximately 1/8 mile along the eastern boundary of Section 13, T39S, R8E; thence easterly approximately 1/4 mile along the northern section line of Section 18, T39S, R8E; thence southerly approximately 1/4 mile; thence easterly approximately 1/2 mile to the boundary of Highway 97; thence southerly approximately 1/3 mile to the Burlington Northern Right-of-Way; thence northeasterly approximately 1 and 1/3 miles along the high water line of the Klamath River to the Southside Bypass in Section 8, T39S, R9E; thence southeasterly along the Southside Bypass to the Southern Pacific Right-of-Way in Section 9, T39S, R9E; thence southerly approximately 1/2 mile along the Southern Pacific Right-of-Way; thence southwesterly approximately 1/4 mile along the Midland Highway; thence southeasterly approximately 1/4 mile to the old railroad spur; thence easterly 1/4 mile along the old railroad spur; thence southerly approximately 1/4 mile in Section 16, T39S, R9E; thence westerly approximately 1/3 mile; thence southerly approximately 1/4 mile; thence easterly approximately 1/16 mile in Section 21, T39S, R9E; thence southerly approximately 1/8 mile to the Lost River Diversion Channel; thence southeasterly approximately 1/4 mile along the northern boundary of the Lost River Diversion Channel; thence easterly approximately 3/4 mile along Joe Wright Road into Section 22, T39S, R9E; thence southeasterly approximately 1/8 mile on the eastern boundary of the Southern Pacific Right-of-Way; thence southeasterly approximately 1 mile along the western boundary of the Southern Pacific Right-of-Way across Section 22, T39S, R9E and Section 27, T39S, R9E to a point 440 yards south of the northern boundary of Section 27, T39S, R9E; thence easterly to Kingsley Field; thence southeasterly approximately 3/4 mile to the southern boundary of Section 26, T39S, R9E; thence east approximately 1/2 mile along the southern boundary of Section 26, T39S, R9E to a pond; thence north-northwesterly for 1/2 mile following the Klamath Falls City Limits; thence north 840 feet; thence east 1155 feet to Homedale Road; thence north along Homedale Road to a point 1/4 mile north of the southern boundary of Section 23, T39S, R9E; thence west 1/4 mile; thence north 1 mile to the Southside Bypass in Section 14, T39S, R9E; thence east 1/2 mile along the Southside Bypass to the eastern boundary of Section 14, T39S, R9E; thence north 1/2 mile; thence east 900 feet into Section 13, T39S, R9E; thence north 1320 feet along the USBR 1-C 1-A to the southern boundary of Section 12, T39S, R9E; thence north 500 feet to the USBR A Canal; thence southeasterly 700 feet along the southern border of the USBR A Canal back into Section 13, T39S, R9E; thence southeast 1600 feet to the northwest parcel corner of an easement for the Enterprise Irrigation District; thence east-northeast 2200 feet to the eastern boundary of Section 13, T39S, R9E; thence north to the southeast corner of Section 12, T39S, R9E; thence along the Enterprise Irrigation Canal approximately 1/2 mile to Booth Road; thence east 1/2 mile to Vale Road; thence north 1 mile to a point in Section 6, T39S, R10E that is approximately 1700 feet north of the southern boundary of Section 6, T39S, R10E; thence west approximately 500 feet; thence south approximately 850 feet; thence west approximately 200 feet; thence north approximately 900 feet; thence west approximately1600 feet to the western boundary of Section 6, T39S, R10E; thence north approximately 1/2 mile to the southeast corner of Section 36, T38S, R9E, the point of beginning.

(13) “LaGrande UGB” means the area within the bounds beginning at the point where U.S. Interstate 84 (I-84) intersects Section 31, Township 2 South, Range 38 East; thence east along I-84 to the Union County Fairgrounds; thence north and then east on a line encompassing the Union County Fairgrounds to the intersection with Cedar Street; thence further east approximately 500 feet, encompassing two (2) residential properties; thence on a line south to the intersection with the northern bank of the Grande Ronde River; thence westerly along the northern bank of the Grande Ronde River to the intersection with the western edge of Mount Glenn Road and Riverside Park; thence north along the western edge of Mount Glenn Road and Riverside Park to the intersection with Fruitdale Road; thence east along Fruitdale Road and the northern boundary of Riverside Park to the eastern boundary of Riverside Park; thence south along the eastern boundary of Riverside Park to the north bank of the Grande Ronde River; thence on a line southeast to the intersection with the northern edge of I-84; thence easterly along the northern edge of I-84 to May Street; thence easterly along May Street to the intersection with State Highway 82; thence northeasterly along State Highway 82 to the a point approximately 1/4 mile from the eastern edge of Section 4, T3S, R38E; thence south to the intersection with Section 9, T3S, R38E, and the southern edge of Buchanan Avenue; thence west along the southern edge of Buchanan Avenue to the intersection with the northern edge of I-84; thence on a line south to the southern edge of I-84; thence southeasterly along the southern edge of I-84 approximately 2500 feet; thence on a line due west approximately 1400 feet; thence on a line due south to the intersection with the Union Pacific Railroad Line; thence southeasterly along the Union Pacific Railroad Line to the intersection with Gekeler Lane; thence west along Gekeler Lane to the intersection with U.S. Highway 30; thence southeast along U.S. Highway 30 to the intersection with the western boundary of Section 15, T3S, R38E; thence on a line west following existing property boundaries approximately 2900 feet; thence on a line north following existing property boundaries approximately 250 feet; thence on a line east following existing property boundaries approximately 650 feet; thence north on a line to the intersection with Gekeler Lane; thence west along Gekeler Lane to the intersection with 20th Avenue; thence south along 20th Avenue to the intersection with Foothill Road; thence southeasterly along Foothill Road approximately 2900 feet; thence on a line west following existing property boundaries approximately 1250 feet; thence on a line south following existing property boundaries approximately 1250 feet; thence on a line west following existing property boundaries approximately 1250 feet; thence on a line north following existing property boundaries approximately 450 feet to the intersection with the southernmost part of the La Grande City Limits; thence westerly and northwesterly along the southernmost part of the La Grande City Limits approximately 1100 feet to the intersection with the 3000 foot elevation contour line; thence westerly following the 3000 foot elevation contour line and existing property boundaries approximately 2200 feet; thence on a line north following existing property boundaries approximately 1900 feet; thence on a line west following existing property boundaries approximately 500 feet; thence on a line north to the La Grande City Limits; thence west along the La Grande City Limits and following existing property boundaries approximately 650 feet; thence on a line south following existing property boundaries approximately 900 feet; thence on a line west following existing property boundaries approximately 1250 feet; thence on a line north to the intersection with the La Grande City Limits; thence west along the southern boundary of the La Grande City Limits to the intersection with the western boundary of the La Grande City Limits; thence north along the western boundary of the La Grande City Limits and following existing property lines approximately 500 feet; thence on a line west following existing property boundaries approximately 200 feet; thence on a line north following existing property boundaries approximately 700 feet; thence east to the first 3000 foot elevation contour line west of the La Grande City Limits; thence northerly following that 3000 foot elevation contour line to the intersection with Deal Canyon Road; thence easterly along Deal Canyon Road to the intersection with the western boundary of the La Grande City Limits; thence northerly along the western boundary of the La Grande City Limits to the intersection with U.S. Highway 30; thence northwesterly along U.S. Highway 30 and following existing property boundaries approximately 1400 feet; thence on a line west to the intersection with the western boundary of Section 6, T3S, R38E; thence north along the western boundaries of Section 6, T3S, R38E and Section 31, T2S, R38E to the point of beginning.

(14) “Lakeview UGB” means the area beginning at the corner common to sections 21, 22, 27, and 28, T39S, R20E; thence north on the section line between section 21 and 22 to the section corner common to section 15, 16, 21, and 22; thence west along the section line between section 21 and 16 to the section corner common to sections 16, 17, 20, and 21; thence north along the section line between section 16 and 17 approximately 3550 feet to the east branch of Thomas Creek; thence northwesterly along the east branch of Thomas Creek to the center line of Highway 140; thence east along the center line of Highway 140 to the section corner common to sections 8, 9, 16, and 17, T39S, R20E; thence north along the section line between sections 8 and 9 to the section corner common to sections 4, 5, 8, and 9, T39S, R20E; thence north along the section line between section 4 and 5 to the section corner common to section 4 and 5, T39S, R20E and sections 32 and 33, T38S, R20E; thence east along the section line between sections 4 and 33 to the section corner common to sections 3 and 4, T39S, R20E and sections 33 and 34, T38S, R20E; thence south along the eastern boundary of section 4 approximately 4,1318.6 feet; thence S 89 degrees, 11 minutes W 288.28 feet to the east right of way line of the old Paisley/Lakeview Highway; thence S 21 degrees, 53 minutes E along the eastern right of way of the old Paisley/Lakeview Highway 288.4 feet; thence S 78 degrees, 45 minutes W 1375 feet; thence S 3 degrees, 6 minutes, and 30 seconds W 200 feet; thence S 77 degrees, 45 minutes W 136 feet to the east right of way line of U.S. Highway 395; thence southeasterly along the east right of way line of U.S. Highway 395 53.5 feet; thence N 77 degrees, 45 minutes E 195.6 feet; thence S 38 degrees, 45 minutes E 56.8 feet; thence S 51 degrees, 15 minutes W 186.1 feet to the east right of way of U.S. Highway 395; thence southeast along the eastern right of way line of U.S. Highway 395 2310 feet; thence N 76 degrees, 19 minutes 544.7 feet; thence S 13 degrees, 23 minutes, 21 seconds E 400 feet; thence N 63 degrees, 13 minutes E 243.6 feet to the western line of the old American Forest Products Logging Road; thence southeast along the old American Forest Products Logging Road to the western line of the northeast quadrant of the northwest quadrant of section 10, T39S, R20E; thence southeast to a point on the south line of the northeast quadrant of the northwest quadrant of Section 10, T39S, R20E (this point also bears N 89 degrees, 33 minutes E 230 feet from the center line of U.S. Highway 395); thence south on a line parallel to the east right of way line of U.S. Highway 395 to the south line of the northwest quadrant of section 10, T39S, R20E; thence south 491 feet to the east right of way of U.S. Highway 395; thence southeasterly following the east right of way of U.S. Highway 395 255 feet to the south line of the northeast quadrant of the northeast quadrant of the southwest quadrant of section 10, T39S, R20E; thence east along that south line to the center line of section 10, T39S, R20E; thence continuing east along the same south line to the eastern boundary of section 10, T39S, R20E; thence south along the eastern boundary of section 10 to the section corner common to sections 10, 11, 14, and 15, T39S, R20E; thence south along the section line between section 14 and 15 to the section corner common to sections 14, 15, 22, and 23, T39S, R20E; thence west along the section line between sections 15 and 22 to the northwest corner of the northeast quadrant of the northeast quadrant of section 22, T39S, R20E; thence south along the eastern line of the western half of the eastern half of section 22 to the southern boundary of section 22, T39S, R20E; thence west along the southern boundary of section 22 to the point of beginning.

(15) “Maintenance Area” means any area that was formerly nonattainment for a criteria pollutant but has since met EPA promulgated standards and has had a maintenance plan to stay within the standards approved by the EPA pursuant to 40 CFR 51.110 (July, 1993).

(16) “Medford-Ashland Air Quality Maintenance Area” (AQMA) means the area defined as beginning at a point approximately two and quarter miles northeast of the town of Eagle Point, Jackson County, Oregon at the northeast corner of Section 36, Township 35 South, Range 1 West (T35S, R1W); thence South along the Willamette Meridian to the southeast corner of Section 25, T37S, R1W; thence southeast along a line to the southeast corner of Section 9, T39S, R2E; thence south-southeast along line to the southeast corner of Section 22, T39S, R2E; thence South to the southeast corner of Section 27, T39S, R2E; thence southwest along a line to the southeast corner of Section 33, T39S, R2E; thence West to the southwest corner of Section 31, T39S, R2E; thence northwest along a line to the northwest corner of Section 36, T39S, R1E; thence West to the southwest corner of Section 26, T39S, R1E; thence northwest along a line to the southeast corner of Section 7, T39S, R1E; thence West to the southwest corner of Section 12, T39S, R1W, T39S, R1W; thence northwest along a line to southwest corner of Section 20, T38S, R1W; thence West to the southwest corner of Section 24, T38S, R2W; thence northwest along a line to the southwest corner of Section 4, T38S, R2W; thence West to the southwest corner of Section 6, T38S, R2W; thence northwest along a line to the southwest corner of Section 31, T37S, R2W; thence North and East along the Rogue River to the north boundary of Section 32, T35S, R1W; thence East along a line to the point of beginning.

(17) “Medford-Ashland CBD” means the area beginning at the intersection of Crater Lake Highway (Highway 62) south on Biddle Road to the intersection of Fourth Street, west on Fourth Street to the intersection with Riverside Avenue (Highway 99), south on Riverside Avenue to the intersection with Tenth Street, west on Tenth Street to the intersection with Oakdale Avenue, north on Oakdale Avenue to the intersection with Fourth Street, east on Fourth Street to the intersection with Central Avenue, north on Central Avenue to the intersection with Court Street, north on Court Street to the intersection with Crater Lake Highway (Highway 62) and east on Crater Lake Highway to the point of beginning, with extensions along McAndrews Road east from Biddle Road to Crater Lake Avenue, and along Jackson Street east from Biddle Road to Crater Lake Avenue.

NOTE: This definition also marks the area where indirect sources are required to have indirect source construction permits in the Medford area. See OAR 340-254-0040.

(18) “Medford UGB” means the area beginning at the line separating Range 1 West and Range 2 West at a point approximately 1/4 mile south of the northwest corner of Section 31, T36S, R1W; thence west approximately 1/2 mile; thence south to the north bank of Bear Creek; thence west to the south bank of Bear Creek; thence south to the intersection with the Medford Corporate Boundary; thence following the Medford Corporate Boundary west and southwesterly to the intersection with Merriman Road; thence northwesterly along Merriman Road to the intersection with the eastern boundary of Section 10, T36S, R2W; thence south along said boundary line approximately 3/4 mile; thence west approximately 1/3 mile; thence south to the intersection with the Hopkins Canal; thence east along the Hopkins Canal approximately 200 feet; thence south to Rossanely Drive; thence east along Rossanley Drive approximately 200 feet; thence south approximately 1200 feet; thence west approximately 700 feet; thence south approximately 1400 feet; thence east approximately 1400 feet; thence north approximately 100 feet; thence east approximately 700 feet; thence south to Finley Lane; thence west to the end of Finley Lane; thence approximately 1200 feet; thence west approximately 1300 feet; thence north approximately 150 feet; thence west approximately 500 feet; thence south to Highway 238; thence west along Highway 238 approximately 250 feet; thence south approximately 1250 feet to a point even with the end of Renault Avenue to the east; thence east approximately 2200 feet; thence south approximately 1100 feet to a point even with Sunset Court to the east; thence east to and along Sunset Court to the first (nameless) road to the south; thence approximately 850 feet; thence west approximately 600 feet; thence south to Stewart Avenue; thence west along Stewart Avenue approximately 750 feet; thence south approximately 1100 feet; thence west approximately 100 feet; thence south approximately 800 feet; thence east approximately 800 feet; thence south approximately 1000 feet; thence west approximately 350 feet to a point even with the north-south connector street between Sunset Drive and South Stage Road; thence south to and along said connecting road and continuing along South Stage Road to Fairlane Road; thence south to the end of Fairlane Road and extending beyond it approximately 250 feet; thence east approximately 250 feet; thence south approximately 250 feet to the intersection with Judy Way; thence east on Judy Way to Griffin Creek Road; thence north on Griffin Creek Road to South Stage Road; thence east on South Stage Road to Orchard Home Drive; thence north on Orchard Home Drive approximately 800 feet; thence east to Columbus Avenue; thence south along Columbus Avenue to South Stage Road; thence east along South Stage Road to the first road to the north after Sunnyview Lane; thence north approximately 300 feet; thence east approximately 300 feet; thence north approximately 700 feet; thence east to King’s Highway; thence north along King’s Highway to Experiment Station Road; thence east along Experiment Station Road to Marsh Lane; thence east along Marsh Lane to the northern boundary of Section 6, T38S, R1W; thence east along said boundary approximately 1100 feet; thence north approximately 1200 feet; thence east approximately 1/3 mile; thence north approximately 400 feet; thence east approximately 1000 feet to a drainage ditch; thence following the drainage ditch southeasterly approximately 500 feet; thence east to the eastern boundary of Section 31, T37S, R1W; thence south along said boundary approximately 1900 feet; thence east to and along the loop off of Rogue Valley Boulevard, following that loop to the Southern Pacific Railroad Line (SPRR); thence following SPRR approximately 500 feet; thence south to South Stage Road; thence east along South Stage Road to SPRR; thence southeasterly along SPRR to the intersection with the west fork of Bear Creek; thence northeasterly along the west fork of Bear Creek to the intersection with U.S. Highway 99; thence southeasterly along U.S. Highway 99 approximately 250 feet; thence east approximately 1600 feet; thence south to East Glenwood Road; thence east along East Glenwood Road approximately 1250 feet; thence north approximately 1/2 mile; thence west approximately 250 feet; thence north approximately 1/2 mile to the Medford City Limits; thence east along the city limits to Phoenix Road; thence south along Phoenix Road to Coal Mine Road; thence east along Coal Mine Road approximately 9/10 mile to the western boundary of Section 35, T37S, R1W; thence north to the midpoint of the western boundary of Section 35, T37S, R1W; thence west approximately 800 feet; thence north approximately 1700 feet to the intersection with Barnett Road; thence easterly along Barnett Road to the southeast corner of Section 27, T37S, R1W; thence north along the eastern boundary line of said section approximately 1/2 mile to the intersection with the 1800 foot contour line; thence east to the intersection with Cherry Lane; thence following Cherry Lane southeasterly and then northerly to the intersection with Hillcrest Road; thence east along Hillcrest Road to the southeast corner of Section 23, T37S, R1W; thence north to the northeast corner of Section 23, T37S, R1W; thence west to the midpoint of the northern boundary of Section 22; T37S, R1W; thence north to the midpoint of Section 15, T37S, R1W; thence west to the midpoint of the western boundary of Section 15, T37S, R1W; thence south along said boundary approximately 600 feet; thence west approximately 1200 feet; thence north approximately 600 feet; thence west to Foothill Road; thence north along Foothill Road to a point approximately 500 feet north of Butte Road; thence west approximately 300 feet; thence south approximately 250 feet; thence west on a line parallel to and approximately 250 feet north of Butte Road to the eastern boundary of Section 8, T37S, R1W; thence north approximately 2200 feet; thence west approximately 1800 feet; thence north approximately 2000 feet; thence west approximately 500 feet; thence north to Coker Butte Road; thence east along Coker Butte Road approximately 550 feet; thence north approximately 1250 feet; thence west to U.S. Highway 62; thence north approximately 3000 feet; thence east approximately 400 feet to the 1340 foot contour line; thence north approximately 800 feet; thence west approximately 200 feet; thence north approximately 250 feet to East Vilas Road; thence east along East Vilas Road approximately 450 feet; thence north approximately 2000 feet to a point approximately 150 feet north of Swanson Creek; thence east approximately 600 feet; thence north approximately 850 feet; thence west approximately 750 feet; thence north approximately 650 feet; thence west approximately 2100 feet; thence on a line southeast approximately 600 feet; thence east approximately 450 feet; thence south approximately 1600 feet; thence west approximately 2000 feet to the continuance of the private logging road north of East Vilas Road; thence south along said logging road approximately 850 feet; thence west approximately 750 feet; thence south approximately 150 feet; thence west approximately 550 feet to Peace Lane; thence north along Peace Lane approximately 100 feet; thence west approximately 350 feet; thence north approximately 950 feet; thence west approximately 1000 feet to the western boundary of Section 31, T36S, R1W; thence north approximately 1300 feet along said boundary to the point of beginning.

(19) “Nonattainment Area” means any area that has been designated as not meeting the standards established by the U.S. Environmental Protection Agency (EPA) pursuant to 40 CFR 51.52 (July, 1993) for any criteria pollutant.

(20) “O3” means Ozone.

(21) “Oakridge UGB” means the area enclosed by the following: Beginning at the northwest corner of Section 17, T21S, R3E and the city limits; thence south along the western boundary of Section 17, T21S, R3E along the city limits approximately 800 feet; thence southwesterly following the city limits approximately 750 feet; thence west along the city limits approximately 450 feet; thence northwesterly along the city limits approximately 450 feet; thence on a line south along the city limits approximately 250 feet; thence on a line east along the city limits approximately 100 feet; thence southwesterly along the city limits approximately 200 feet; thence on a line east along the city limits approximately 400 feet; thence on a line south along the city limits to the channel of the Willamette River Middle Fork; thence south-easterly up the Willamette River Middle Fork along the city limits approximately 7200 feet; thence exiting the Willamette River Middle Fork with the city limits in a northerly manner and forming a rough semicircle with a diameter of approximately one-half mile before rejoining the Willamette River Middle Fork; thence diverging from the city limits upon rejoining the Willamette River Middle Fork and moving southeasterly approximately 5600 feet up the Willamette River Middle Fork to a point on the river even with the point where Salmon Creek Road intersects with U.S. Highway 58; thence on a line east from the channel of the Willamette River Middle Fork across the intersection of Salmon Creek Road and U.S. Highway 58 to the intersection with the Southern Pacific Railroad Line; thence northerly along the Southern Pacific Railroad Line to the intersection with the northern boundary of Section 22, T21S, R3E; thence west along the northern boundary of Section 22, T21S, R3E to the intersection with Salmon Creek Road; thence on a line north to the intersection with the Southern Pacific Railroad Line; thence east along the Southern Pacific Railroad Line approximately 600 feet; thence on a line north to the intersection with High Prairie Road; thence on a line west approximately 400 feet; thence on a line north to the intersection with the northern boundary of Section 15, T21S, R3E; thence west along the northern boundary of Section 15, T21S, R3E to the intersection with the southeastern corner of Section 9, T21S, R3E; thence north along the eastern boundary of Section 9, T21S, R3E approximately 1300 feet; thence on a line west approximately 1100 feet; thence on a line south to the intersection with West Oak Road; thence northwesterly along West Oak Road approximately 2000 feet; thence on a line south to the intersection with the northern boundary line of the city limits; thence westerly and northwesterly approximately 8000 feet along the city limits to the point of beginning.

(22) “Particulate Matter” has the meaning given that term in OAR 340-200-0020(82).

(23) PM10: has the meaning given that term in OAR 340-200-0020(90).

(24) “PM2.5” has the meaning given that term in OAR 340-200-0020(91).

(25) “Portland AQMA” means the area within the bounds beginning at the point starting on the Oregon-Washington state line in the Columbia River at the confluence with the Willamette River, thence east up the Columbia River to the confluence with the Sandy River, thence southerly and easterly up the Sandy River to the point where the Sandy River intersects the Clackamas County-Multnomah County line, thence west along the Clackamas County-Multnomah County line to the point where the Clackamas County-Multnomah County line is intersected by H. Johnson Road (242nd), thence south along H. Johnson Road to the intersection with Kelso Road (Boring Highway), thence west along Kelso Road to the intersection with Deep Creek Road (232nd), thence south along Deep Creek Road to the point of intersection with Deep Creek, thence southeasterly along Deep Creek to the confluence with Clackamas River, thence easterly along the Clackamas River to the confluence with Clear Creek, thence southerly along Clear Creek to the point where Clear Creek intersects Springwater Road then to Forsythe Road, thence easterly along Forsythe Road to the intersection with Bradley Road, thence south along Bradley Road to the intersection with Redland Road, thence west along Redland Road to the intersection with Ferguson Road, thence south along Ferguson Road to the intersection with Thayler Road, thence west along Thayler Road to the intersection with Beaver Creek Road, thence southeast along Beaver Creek Road to the intersection with Henrici Road, thence west along Henrici Road to the intersection with State Highway 213 (Mollala Avenue), thence southeast along State Highway 213 to the point of intersection with Beaver Creek, thence westerly down Beaver Creek to the confluence with the Willamette River, thence southerly and westerly up the Willamette River to the point where the Willamette River intersects the Clackamas County-Yamhill County line, thence north along the Clackamas County-Yamhill County line to the point where it intersects the Washington County-Yamhill County line, thence west and north along the Washington County-Yamhill County line to the point where it is intersected by Mount Richmond Road, thence northeast along Mount Richmond Road to the intersection with Patton Valley Road, thence easterly and northerly along Patton Valley Road to the intersection with Tualatin Valley State Highway, thence northerly along Tualatin Valley State Highway to the intersection with State Highway 47, thence northerly along State Highway 47 to the intersection with Dilley Road, thence northwesterly and northerly along Dilley Road to the intersection with Stringtown Road, thence westerly and northwesterly along Stringtown Road to the intersection with Gales Creek Road, thence northwesterly along Gales Creek Road to the intersection with Tinmmerman Road, thence northerly along Tinmmerman Road to the intersection with Wilson River Highway, thence west and southwesterly along Wilson River Highway to the intersection with Narup Road, thence north along Narup Road to the intersection with Cedar Canyon Road, thence westerly and northerly along Cedar Canyon Road to the intersection with Banks Road, thence west along Banks Road to the intersection with Hahn Road, thence northerly and westerly along Hahn Road to the intersection with Mountaindale Road, thence southeasterly along Mountaindale Road to the intersection with Glencoe Road, thence east-southeasterly along Glencoe Road to the intersection with Jackson Quarry Road, thence north-northeasterly along Jackson Quarry Road to the intersection with Helvetia Road, thence easterly and southerly along Helvetia Road to the intersection with Bishop Road, thence southerly along Bishop Road to the intersection with Phillips Road, thence easterly along Phillips Road to the intersection with the Burlington Northern Railroad Track, thence northeasterly along the Burlington Northern Railroad Line to the intersection with Rock Creek Road, thence east-southeasterly along Rock Creek Road to the intersection with Old Cornelius Pass Road, thence northeasterly along Old Cornelius Pass Road to the intersection with Skyline Boulevard, thence easterly and southerly along Skyline Boulevard to the intersection with Newberry Road, thence northeasterly along Newberry Road to the intersection with State Highway 30 (St. Helens Road), thence northeast on a line over land across State Highway 30 to the Multnomah Channel, thence east-southeasterly up the Multnomah Channel to the diffluence with the Willamette River, thence north-northeasterly down the Willamette River to the confluence with the Columbia River and the Oregon-Washington state line (the point of beginning).

(26) “Portland Metropolitan Service District Boundary” or “Portland Metro” means the boundary surrounding the urban growth boundaries of the cities within the Greater Portland Metropolitan Area. It is defined in the Oregon Revised Statutes (ORS) 268.125 (1989).

(27) “Portland Vehicle Inspection Area” means the area of the state included within the following census tracts, block groups, and blocks as used in the 1990 Federal Census. In Multnomah County, the following tracts, block groups, and blocks are included: Tracts 1, 2, 3.01, 3.02, 4.01, 4.02, 5.01, 5.02, 6.01, 6.02, 7.01, 7.02, 8.01, 8.02, 9.01, 9.02, 10, 11.01, 11.02, 12.01, 12.02, 13.01, 13.02, 14, 15, 16.01, 16.02, 17.01, 17.02, 18.01, 18.02, 19, 20, 21, 22.01, 22.02, 23.01, 23.02, 24.01, 24.02, 25.01, 25.02, 26, 27.01, 27.02, 28.01, 28.02, 29.01, 29.02, 29.03, 30, 31, 32, 33.01, 33.02, 34.01, 34.02, 35.01, 35.02, 36.01, 36.02, 36.03, 37.01, 37.02, 38.01, 38.02, 38.03, 39.01, 39.02, 40.01, 40.02, 41.01, 41.02, 42, 43, 44, 45, 46.01, 46.02, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56 57, 58, 59, 60.01. 60.02, 61, 62, 63, 64.01, 64.02, 65.01, 65.02, 66.01, 66.02, 67.01, 67.02, 68.01, 68.02, 69, 70, 71, 72.01, 72.02, 73, 74, 75, 76, 77, 78, 79, 80.01, 80.02, 81, 82.01, 82.02, 83.01, 83.02, 84, 85, 86, 87, 88, 89, 90, 91, 92.01, 92.02, 93, 94, 95, 96.01, 96.02, 97.01, 97.02, 98.01, 98.02, 99.01, 99.02, 99.03, 100, 101, 102, 103.01, 103.02, 104.02, 104.04, 104. 05, 104.06, 104.07; Block Groups 1, 2 of Tract 105; Blocks 360, 361, 362 of Tract 105; that portion of Blocks 357, 399 of Tract 105 beginning at the intersection of the Oregon-Washington State Line (“State Line”) and the northeast corner of Block Group 1 of Tract 105, thence east along the State Line to the intersection of the State Line and the eastern edge of Section 26, Township 1 North, Range 4 East, thence south along the section line to the centerline of State Highway 100 to the intersection of State Highway 100 and the western edge of Block Group 2 of Tract 105. In Clackamas County, the following tracts, block groups, and blocks are included: Tracts 201, 202, 203.01, 203.02, 204.01, 204.02, 205.01, 205.02, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216.01, 216.02, 217, 218, 219, 220, 221.01, 221.02, 222.02, 223, 224, 225, 226, 227.01, 227.02, 228, 229, 230, 231, 232, 233, 234.01, 234.02, , 235, 236, 237; Block Groups 1, 2 of Tract 241; Block Groups 1, 2, 3, 4 of Tract 242; Block Groups 1, 2 of Tract 243.02. In Yamhill County, the following tract is included: Tract 301, except those areas in Tract 301 that lie within the Newberg City Limits defined as of July 12, 1996, and the following blocks within Tract 301: 102B, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121D, 122B, 122C, 123, 126, and 127B. In Washington County the following tracts, block groups, and blocks are included: Tracts 301, 302, 303, 304.01, 304.02, 305.01, 305.02, 306, 307, 308.01, 308.02, 309, 310.03, 310.04, 310.05, 310.06, 311, 312, 313, 314.01, 314.02, 315.01, 315.04, 315.05, 315.06, 315.07, 315.08, 316.03, 316.04, 316.05, 316.06, 316.07, 317.02, 317.03, 317.04, 318.01, 318.02, 318.03, 319.01, 319.03, 319.04, 320, 321.01, 321.02, 322, 323, 324.02, 324.03, 324.04, 325, 326.01, 326.02, 328, 329, 330, 331, 332, 333; Block Groups 1, 2 of Tract 327; Block Group 1 of Tract 334; Block Group 2 of Tract 335; Block Group 1 of Tract 336. In Columbia County the following tracts, block groups, and blocks are included: Tract 9710.98; Block Groups 2, 3 of Tract 9709.98; Blocks 146B, 148, 152 of Tract 9709.98.

(28) “Rogue Basin” means the area bounded by the following line: Beginning at the NE corner of T32S, R2E, W.M., thence south along range line 2E to the SE corner of T39S; thence west along township line 39S to the NE corner of T40S, R7W; thence south to the SE corner of T40S, R7W; thence west to the SE corner of T40S, R9W; thence north on range line 9W to the NE corner of T39S, R9W; thence east to the NE corner of T39S, R8W; thence north on range line 8W to the SE corner of Section 1, T33S, R8W on the Josephine-Douglas County line; thence east on the Josephine-Douglas and Jackson-Douglas County lines to the NE corner of T32S, R1W; thence east along township line 32S to the NE corner of T32S, R2E to the point of beginning.

(29) “Salem-Keizer Area Transportation Study” or “SKATS” means the area within the bounds beginning at the intersection of U.S. Interstate Highway 5 (I-5) with Battle Creek Road SE and Wiltsey Road, south along I-5 to the intersection with the western boundary of Section 24, T8S, R3W; thence due south on a line to the intersection with Delaney Road; thence easterly along Delaney Road to the intersection with Sunnyside Road; thence north along Sunnyside Road to the intersection with Hylo Road SE; thence west along Hylo Road SE to the intersection with Liberty Road; thence north along Liberty Road to the intersection with Cole Road; thence west along Cole Road to the intersection with Bates Road; thence northerly and easterly along Bates Road to the intersection with Jory Hill Road; thence west along Jory Hill Road to the intersection with Stone Hill Avenue; thence north along Stone Hill Avenue to the intersection with Vita Springs Road; thence westerly along Vita Springs Road to the Willamette River; thence northeasterly downstream the Willamette River to a point adjacent to where the western boundary of Section 30, T7S, R3W intersects the Southern Pacific Railroad Line; thence westerly along the Southern Pacific Railroad Line to the intersection with State Highway 51; thence northeasterly along State Highway 51 to the intersection with Oak Grove Road; thence northerly along Oak Grove Road to the intersection with State Highway 22; thence west on State Highway 22 to the intersection with Oak Grove Road; thence north along Oak Grove Road to the intersection with Orchard Heights Road; thence east and north along Orchard Heights Road to the intersection with Eagle Crest Drive; thence northerly along Eagle Crest Drive to the intersection with Hunt Road; thence north along Hunt Road to the intersection with Fourth Road; thence east along Fourth Road to the intersection with Spring Valley Road; thence north along Spring Valley to the intersection with Oak Knoll Road; thence east along Oak Knoll Road to the intersection with Wallace Road; thence south along Wallace Road to the intersection with Lincoln Road; thence east along Lincoln Road on a line to the intersection with the Willamette River; thence northeasterly downstream the Willamette River to a point adjacent to where Simon Street starts on the East Bank; thence east and south along Simon Street to the intersection with Salmon; thence east along Salmon to the intersection with Ravena Drive; thence southerly and easterly along Ravena Drive to the intersection with Wheatland Road; thence northerly along Wheatland Road to the intersection with Brooklake Road; thence southeast along Brooklake Road to the intersection with 65th Avenue; thence south along 65th Avenue to the intersection with Labish Road; thence east along Labish Road to the intersection with the West Branch of the Little Pudding River; thence southerly along the West Branch of the Little Pudding River to the intersection with Sunnyview Road; thence east along Sunnyview Road to the intersection with 63rd Avenue; thence south along 63rd Avenue to the intersection with State Street; thence east along State Street to the intersection with 62nd Avenue; thence south along 62nd Avenue to the intersection with Deer Park Drive; thence southwest along Deer Park Drive to the intersection with Santiam Highway 22; thence southeast along Santiam Highway 22 to the point where it intersects the Salem Urban Growth Boundary (SUGB); thence following the southeast boundary of the SUGB generally southerly and westerly to the intersection with Wiltsey Road; thence west along Wiltsey Road to the intersection with I-5 (the point of beginning).

(30) “UGB” means Urban Growth Boundary.

(31) “Umpqua Basin” means the area bounded by the following line: Beginning at the SW corner of Section 2, T19S, R9W, on the Douglas-Lane County lines and extending due south to the SW corner of Section 14, T32S, R9W, on the Douglas-Curry County lines, thence easterly on the Douglas-Curry and Douglas-Josephine County lines to the intersection of the Douglas, Josephine, and Jackson County lines; thence easterly on the Douglas-Jackson County line to the intersection of the Umpqua National Forest boundary on the NW corner of Section 32, T32S, R3W; thence northerly on the Umpqua National Forest boundary to the NE corner of Section 36, T25S, R2W; thence west to the NW corner of Section 36, T25S, R4W; thence north to the Douglas-Lane County line; thence westerly on the Douglas-Lane County line to the starting point.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 468.020
Stats. Implemented: ORS 468A.025
Hist.: DEQ 14-1995, f. & cert. ef. 5-25-95; DEQ 18-1996, f. & cert. ef. 8-19-96; DEQ 1-1999, f. & cert. ef. 1-25-99; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-031-0500; DEQ 1-2005, f. & cert. ef. 1-4-05; DEQ 3-2007, f. & cert. ef. 4-12-07; DEQ 5-2010, f. & cert. ef. 5-21-10; DEQ 18-2011, f. & cert. ef. 12-21-11; DEQ 10-2012, f. & cert. ef. 12-11-12

340-225-0090

Requirements for Demonstrating a Net Air Quality Benefit

Demonstrations of net air quality benefit for offsets must include the following:

(1) Ozone areas (VOC and NOx emissions). For sources capable of impacting a designated ozone nonattainment or maintenance area;

(a) Offsets for VOC and NOx are required if the source will be located within the designated area or within the Ozone Precursor Distance.

(b) The amount and location of offsets must be determined in accordance with this subsection:

(A) For new or modified sources locating within a designated nonattainment area, the offset ratio is 1.1:1. These offsets must come from within either the same designated nonattainment area as the new or modified source or another ozone nonattainment area (with equal or higher nonattainment classification) that contributes to a violation of the NAAQS in the same designated nonattainment area as the new or modified source.

(B) For new or modified sources locating within a designated maintenance area, the offset ratio is 1.1:1. These offsets may come from within either the designated area or the ozone precursor distance.

(C) For new or modified sources locating outside the designated area, but within the ozone precursor distance, the offset ratio is 1:1. These offsets may come from within either the designated area or the ozone precursor distance.

(D) Offsets from outside the designated area but within the Ozone Precursor Distance must be from sources affecting the designated area in a comparable manner to the proposed emissions increase. Methods for determining offsets are described in the Ozone Precursor Offsets definition (OAR 340-225-0020(11)).

(c) In lieu of obtaining offsets, the owner or operator may obtain an allocation at the rate of 1:1 from a growth allowance, if available, in an applicable maintenance plan.

(d) Sources within or affecting the Medford Ozone Maintenance Area are exempt from the requirement for NOx offsets relating to ozone formation.

(e) Sources within or affecting the Salem Ozone Maintenance Area are exempt from the requirement for VOC and NOx offsets relating to ozone formation.

(2) Non-Ozone areas (PM2.5, PM10, SO2, CO, NOx, and Lead emissions):

(a) For a source locating within a designated nonattainment area, the owner or operator must comply with paragraphs (A) through (E) of this subsection:

(A) Obtain offsets from within the same designated nonattainment area for the nonattainment pollutant(s);

(B) Except as provided in paragraphs (C) of this subsection, provide a minimum of 1:1 offsets for each nonattainment pollutant and precursor with emission increases over the Netting Basis;

(C) For PM2.5; inter-pollutant offsets are allowed as follows:

(i) 1 ton of direct PM2.5 may be used to offset 40 tons of SO2;

(ii) 1 ton of direct PM2.5 may be used to offset 100 tons of NOx;

(iii) 40 tons of SO2 may be used to offset 1 ton of direct PM2.5;

(iv) 100 tons of NOx may be used to offset 1 ton of direct PM2.5.

(D) Except as provided in section (7) of this rule, provide a net air quality benefit within the designated nonattainment area. “Net Air Quality Benefit” means:

(i) Offsets obtained result in a reduction in concentration at a majority of the modeled receptors and the emission increases from the proposed source or modification will result in less than a significant impact level increase at all modeled receptors; or

(ii) For a small scale local energy project and any infrastructure related to that project located in the same area, a reduction of the nonattainment pollutant emissions equal to the ratio specified in this subsection, provided that the proposed major source or major modification would not cause or contribute to a violation of the national ambient air quality standard or otherwise pose a material threat to compliance with air quality standards in the nonattainment area.

(E) Provide offsets sufficient to demonstrate reasonable further progress toward achieving the NAAQS.

(b) For a source locating outside a designated nonattainment area but causing a significant air quality impact on the area, the owner or operator must provide offsets sufficient to reduce the modeled impacts below the significant air quality impact level (OAR 340-200-0020) at all receptors within the designated nonattainment area. These offsets may come from within or outside the designated nonattainment area. This requirement only applies to the emissions remaining after first deducting the offsets obtained in accordance with section (7) of this rule.

(c) For a source locating inside or causing a significant air quality impact on a designated maintenance area, the owner or operator must either provide offsets sufficient to reduce modeled impacts below the significant air quality impact level (OAR 340-200-0020) at all receptors within the designated maintenance area or obtain an allocation from an available growth allowance as allowed by an applicable maintenance plan. These offsets may come from within or outside the designated maintenance area. This requirement only applies to the emissions remaining after first deducting the offsets obtained in accordance with section (7) of this rule.

(A) Medford-Ashland AQMA: Proposed new major PM10 sources or major PM10 modifications locating within the AQMA that are required to provide emission offsets under OAR 340-224-0060(2)(a) must provide reductions in PM10 emissions equal to 1.2 times the emissions increase over the netting basis from the new or modified source, and must provide a net air quality benefit within the AQMA. “Net Air Quality Benefit” means:

(i) A reduction in concentration at a majority of the modeled receptors and less than a significant impact level increase at all modeled receptors; or

(ii) For a small scale local energy project and any infrastructure related to that project located in the same area, a reduction of the maintenance pollutant emissions equal to the ratio specified in this paragraph, provided that the proposed major source or major modification would not cause or contribute to a violation of the national ambient air quality standard or otherwise pose a material threat to compliance with air quality standards in the maintenance area.

(B) Medford-Ashland AQMA: Proposed new major PM10 sources or major PM10 modifications located outside the Medford-Ashland AQMA that cause a significant air quality impact on the AQMA must provide reductions in PM10 emissions sufficient to reduce modeled impacts below the significant air quality impact level (OAR 340-200-0020) at all receptors within the AQMA.

(3) Except as provided in paragraph (2)(a)(C) of this rule, the emission reductions used as offsets must be of the same type of pollutant as the emissions from the new source or modification. Sources of PM10 must be offset with particulate in the same size range.

(4) The emission reductions used as offsets must be contemporaneous, that is, the reductions must take effect before the time of startup but not more than two years before the submittal of a complete permit application for the new source or modification. This time limitation may be extended through banking, as provided for in OAR 340 division 268, Emission Reduction Credit Banking. In the case of replacement facilities, the DEQ may allow simultaneous operation of the old and new facilities during the startup period of the new facility, if net emissions are not increased during that time period. Any emission reductions must be federally enforceable at the time of the issuance of the permit.

(5) Offsets required under this rule must meet the requirements of Emissions Reduction Credits in OAR 340 division 268.

(6) Emission reductions used as offsets must be equivalent in terms of short term, seasonal, and yearly time periods to mitigate the effects of the proposed emissions.

(7) Offsets obtained in accordance with OAR 340-240-0550 and 340-240-0560 for sources locating within or causing significant air quality impact on the Klamath Falls PM2.5 nonattainment or PM10 maintenance areas are exempt from the requirements of paragraph (2)(a)(E) and sub-sections (2)(b) and (2)(c) of this rule provided that the proposed major source or major modification would not cause or contribute to a new violation of the national ambient air quality standard. This exemption only applies to the direct PM2.5 or PM10 offsets obtained from residential wood-fired devices in accordance with 340-240-0550 and 340-240-0560. Any remaining emissions from the source that are offset by emission reductions from other sources are subject to the requirements of paragraph (2)(a)(E) or sub-sections (2)(b) or (2)(c) of this rule, as applicable.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the EQC under OAR 340-200-0040.

Stat. Auth.: ORS 468.020
Stats. Implemented: ORS 468A.025
Hist.: DEQ 25-1981, f. & ef. 9-8-81; DEQ 5-1983, f. & ef. 4-18-83; DEQ 8-1988, f. & cert. ef. 5-19-88 (and corrected 5-31-88); DEQ 22-1989, f. & cert. ef. 9-26-89; DEQ 27-1992, f. & cert. ef. 11-12-92; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 12-1993, f. & cert. ef. 9-24-93, Renumbered from 340-020-0260; DEQ 19-1993, f. & cert. ef. 11-4-93; DEQ 4-1995, f. & cert. ef. 2-17-95; DEQ 26-1996, f. & cert. ef. 11-26-96; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-028-1970; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-030-0111; DEQ 6-2001, f. 6-18-01, cert. ef. 7-1-01, Renumbered from 340-224-0090 & 340-240-0260; DEQ 11-2002, f. & cert. ef. 10-8-02; DEQ 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-6-03; Administrative correction 11-10-03; DEQ 1-2004, f. & cert. ef. 4-14-04; DEQ 1-2005, f. & cert. ef. 1-4-05; DEQ 3-2007, f. & cert. ef. 4-12-07; DEQ 10-2010(Temp), f. 8-31-10, cert. ef. 9-1-10 thru 2-28-11; Administrative correction, 3-29-11; DEQ 5-2011, f. 4-29-11, cert. ef. 5-1-11; DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0010

Purpose

The purpose of this division is to address the air quality control needs of the Medford-Ashland AQMA and Grants Pass UGB (OAR 340-240-0100 through 340-240-0270), the La Grande UGB (340-240-0300 through 340-240-0360, the Lakeview UGB (340-240-0400 through 340-240-0440), and the Klamath Falls Nonattainment Area (340-240-0500 through 340-240-0630).

NOTE: These rules are included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.025
Hist.: DEQ 4-1978, f. & ef. 4-7-78; DEQ 22-1989, f. & cert. ef. 9-26-89; DEQ 23-1991, f. & cert. ef. 11-13-91; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-030-0005; DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0030

Definitions

The definitions in OAR 340-200-0020, 340-204-0010 and this rule apply to this division. If the same term is defined in this rule and 340-200-0020 or 340-204-0010, the definition in this rule applies to this division.

(1) “Air contaminant” means a dust, fume, gas, mist, odor, smoke, vapor, pollen, soot, carbon, acid or particulate matter, or any combination thereof.

(2) “Air Conveying System” means an air moving device, such as a fan or blower, associated ductwork, and a cyclone or other collection device, the purpose of which is to move material from one point to another by entrainment in a moving airstream.

(3) “Average Operating Opacity” means the opacity of emissions determined using EPA Method 9 on any three days within a 12-month period which are separated from each other by at least 30 days; a violation of the average operating opacity limitation is judged to have occurred if the opacity of emissions on each of the three days is greater than the specified average operating opacity limitation.

(4) “Charcoal Producing Plant” means an industrial operation which uses the destructive distillation of wood to obtain the fixed carbon in the wood.

(5) “Collection Efficiency” means the overall performance of the air cleaning device in terms of ratio of weight of material collected to total weight of input to the collector.

(6) “Department” means Department of Environmental Quality.

(7) “Design Criteria” means the numerical as well as verbal description of the basis of design, including but not necessarily limited to design flow rates, temperatures, humidities, contaminant descriptions in terms of types and chemical species, mass emission rates, concentrations, and specification of desired results in terms of final emission rates and concentrations, and scopes of vendor supplies and owner-supplied equipment and utilities, and a description of any operational controls.

(8) “Domestic Waste” means combustible household waste, other than wet garbage, such as paper, cardboard, leaves, yard clippings, wood, or similar materials generated in a dwelling housing four (4) families or less, or on the real property on which the dwelling is situated.

(9) “Dry Standard Cubic Foot” means the amount of gas that would occupy a volume of one cubic foot, if the gas were free of uncombined water at standard conditions.

(10) “Emission” means a release into the outdoor atmosphere of air contaminants.

(11) “EPA Method 9” means the method for Visual Determination of the Opacity of Emissions From Stationary Sources described as Method (average of 24 consecutive observations) in the Department Source Sampling Manual (January, 1992).

(12) “Facility” means an identifiable piece of process equipment. A stationary source may be comprised of one or more pollutant-emitting facilities.

(13) “Fireplace” is defined in OAR 340-262-0450

(14) “Fuel Burning Equipment” means a device that burns a solid, liquid, or gaseous fuel, the principal purpose of which is to produce heat or power by indirect heat transfer. All stationary gas turbines are considered Fuel Burning Equipment. Marine installations and internal combustion engines are not considered Fuel Burning Equipment.

(15) “Fuel Moisture Content By Weight Greater Than 20 Percent” means bark, hogged wood waste, or other wood with an average moisture content of more than 20 percent by weight on a wet basis as used for fuel in the normal operation of a wood-fired veneer dryer as measured by ASTM D4442-84 during compliance source testing.

(16) “Fuel Moisture Content By Weight Less Than 20 Percent” means pulverized ply trim, sanderdust, or other wood with an average moisture content of 20 percent or less by weight on a wet basis as used for fuel in the normal operation of a wood-fired veneer dryer as measured by ASTM D4442-84 during compliance source testing.

(17) “Fugitive Emissions” means dust, fumes, gases, mist, odorous matter, vapors, or any combination thereof not easily given to measurement, collection and treatment by conventional pollution control methods.

(18) “Grants Pass Urban Growth Area” and “Grants Pass Area” means the area within the Grants Pass Urban Growth Boundary as shown on the Plan and Zoning Maps for the City of Grants Pass as of 1 February 1988.

(19) “Hardboard” means a flat panel made from wood that has been reduced to basic wood fibers and bonded by adhesive properties under pressure.

(20) “Klamath Falls Nonattainment Area” means the area as defined in OAR 340-204-0010.

(21) “La Grande Urban Growth Area” means the area within the La Grande Urban Growth Boundary as shown on the Plan and Zoning Maps for the City of La Grande as of 1 October 1991.

(22) “Lakeview Urban Growth Area” means the area within the Lakeview Urban Growth Boundary as shown on the Plan and Zoning Maps for the Town of Lakeview as of 25 October 1993.

(23) “Liquefied petroleum gas” has the meaning given by the American Society for Testing and Materials in ASTM D1835-82, “Standard Specification for Liquid Petroleum Gases.”

(24) “Lowest Achievable Emission Rate” or “LAER” is defined in OAR 340-200-0020.

(25) “Maximum Opacity” means the opacity as determined by EPA Method 9 (average of 24 consecutive observations).

(26) “Medford-Ashland Air Quality Maintenance Area” (AQMA) means the area defined as beginning at a point approximately two and quarter miles northeast of the town of Eagle Point, Jackson County, Oregon at the northeast corner of Section 36, Township 35 South, Range 1 West (T35S, R1W); thence South along the Willamette Meridian to the southeast corner of Section 25, T37S, R1W; thence southeast along a line to the southeast corner of Section 9, T39S, R2E; thence south-southeast along line to the southeast corner of Section 22, T39S, R2E; thence South to the southeast corner of Section 27, T39S, R2E; thence southwest along a line to the southeast corner of Section 33, T39S, R2E; thence West to the southwest corner of Section 31, T39S, R2E; thence northwest along a line to the northwest corner of Section 36, T39S, R1E; thence West to the southwest corner of Section 26, T39S, R1E; thence northwest along a line to the southeast corner of Section 7, T39S, R1E; thence West to the southwest corner of Section 12, T39S, R1W, T39S, R1W; thence northwest along a line to southwest corner of Section 20, T38S, R1W; thence West to the southwest corner of Section 24, T38S, R2W; thence northwest along a line to the southwest corner of Section 4, T38S, R2W; thence West to the southwest corner of Section 6, T38S, R2W; thence northwest along a line to the southwest corner of Section 31, T37S, R2W; thence North and East along the Rogue River to the north boundary of Section 32, T35S, R1W; thence East along a line to the point of beginning.

(27) “Modified Source” means any source with a major modification as defined in OAR 340-200-0020.

(28) “Natural gas” means a naturally occurring mixture of hydrocarbon and nonhydrocarbon gases found in geologic formations beneath the earth’s surface, of which the principal component is methane.

(29) “New Source” means any source not in existence prior to April 7, 1978 or any source not having a Permit as of April 7, 1978.

(30) “Odor” means that property of an air contaminant that affects the sense of smell.

(31) “Offset” is defined in OAR 340-200-0020.

(32) “Opacity” means the degree to which an emission reduces transmission of light and obscures the view of an object in the background as measured in accordance with the Department’s Source Sampling Manual (January, 1992). Unless otherwise specified by rule, opacity must be measured in accordance with EPA Method 9. For all standards, the minimum observation period must be six minutes, though longer periods may be required by a specific rule or permit condition. Aggregate times (e.g. 3 minutes in any one hour) consist of the total duration of all readings during the observation period that exceed the opacity percentage in the standard, whether or not the readings are consecutive. Alternatives to EPA Method 9, such as a continuous opacity monitoring system (COMS), alternate Method 1 (LIDAR), or EPA Methods 22, or 203, may be used if approved in advance by the DEQ, in accordance with the Source Sampling Manual.

(33) “Open Burning” means burning conducted in such a manner that combustion air and combustion products may not be effectively controlled including, but not limited to, burning conducted in open outdoor fires, burn barrels, and backyard incinerators.

(34) “Particleboard” means matformed flat panels consisting of wood particles bonded together with synthetic resin or other suitable binders.

(35) “Particulate Matter” means all solid or liquid material, other than uncombined water, emitted to the ambient air as measured in accordance with the Department Source Sampling Manual. Particulate matter emission determinations must consist of the average of three separate consecutive runs. For sources tested using DEQ Method 5 or DEQ Method 7, each run must have a minimum sampling time of one hour, a maximum sampling time of eight hours, and a minimum sampling volume of 31.8 dscf. For sources tested using DEQ Method 8, each run must have a minimum sampling time of 15 minutes and must collect a minimum particulate sample of 100 mg. Wood waste boilers and charcoal producing plants must be tested with DEQ Method 5; veneer dryers, wood particle dryers, fiber dryers and press/cooling vents must be tested with DEQ Method 7; and air conveying systems must be tested with DEQ Method 8 (January, 1992).

(36) “Person” includes individuals, corporations, associations, firms, partnerships, joint stock companies, public and municipal corporations, political subdivisions, the state and any agencies thereof, and the federal government and any agencies thereof.

(37) “Press/Cooling Vent” means any opening through which particulate and gaseous emissions from plywood, particleboard, or hardboard manufacturing are exhausted, either by natural draft or powered fan, from the building housing the process. Such openings are generally located immediately above the board press, board unloader, or board cooling area.

(38) “Rebuilt Boiler” means a physical change after April 29, 1988, to a wood-waste boiler or its air-contaminant emission control system which is not considered a “modified source” and for which the fixed, depreciable capital cost of added or replacement components equals or exceeds fifty percent of the fixed depreciable cost of a new component which has the same productive capacity

(39) “Refuse” means unwanted material.

(40) “Refuse burning equipment” means a device designed to reduce the volume of solid, liquid, or gaseous refuse by combustion.

(41) “Wood Fuel-Fired Device” means a device or appliance designed for wood fuel combustion, including cordwood stoves, wood stoves and fireplace stove inserts, fireplaces, wood fuel-fired cook stoves, pellet stoves and combination fuel furnaces or boilers, which burn wood fuels.

(42) “Source” means any structure, building, facility, equipment, installation or operation, or combination thereof, which is located on one or more contiguous or adjacent properties and which is owned or operated by the same person, or by persons under common control.

(43) “Standard Conditions” means a temperature of 68° Fahrenheit (20° Celsius) and a pressure of 14.7 pounds per square inch absolute (1.03 Kilograms per square centimeter).

(44) “Standard cubic foot” means the amount of gas that would occupy a volume of one cubic foot, if the gas were free of uncombined water at standard conditions. When applied to combustion flue gases from fuel or refuse burning, “standard cubic foot” also implies adjustment of gas volume to that which would result at a concentration of 12% carbon dioxide or 50% excess air.

(45) “Veneer” means a single flat panel of wood not exceeding 1/4 inch in thickness formed by slicing or peeling from a log.

(46) “Veneer Dryer” means equipment in which veneer is dried.

(47) “Wood-fired Veneer Dryer” means a veneer dryer which is directly heated by the products of combustion of wood fuel in addition to or exclusive of steam or natural gas or propane combustion.

(48) “Wigwam Fired Burner” means a burner which consists of a single combustion chamber, has the general features of a truncated cone, and is used for the incineration of wastes.

(49) “Wood Waste Boiler” means equipment which uses indirect heat transfer from the products of combustion of wood waste to provide heat or power.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468.020 & 468A.025
Hist.: DEQ 4-1978, f. & ef. 4-7-78; DEQ 9-1979, f. & ef. 5-3-79; DEQ 3-1980, f. & ef. 1-28-80; DEQ 14-1981, f. & ef. 5-6-81; DEQ 22-1989, f. & cert. ef. 9-26-89; DEQ 23-1991, f. & cert. ef. 11-13-91; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 10-1995, f. & cert. ef. 5-1-95; DEQ 4-1995, f. & cert. ef. 2-17-95; DEQ 10-1995, f. & cert. ef. 5-1-95; DEQ 3-1996, f. & cert. ef. 1-29-96; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-030-0010; DEQ 6-2001, f. 6-18-01, cert. ef. 7-1-01; DEQ 1-2005, f. & cert. ef. 1-4-05; DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0500

Applicability

OAR 340-240-0500 through 340-240-0630 apply in the Klamath Falls Nonattainment Area beginning January 1, 2013.

NOTE: These rules are included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0510

Opacity Standard

(1) Except as provided in section (2) of this rule, no person conducting a commercial or industrial activity may cause or permit the emission of any air contaminant into the atmosphere from any stationary source including fuel or refuse burning equipment, that exhibits equal to or greater than 20% opacity for a period or periods aggregating more than three minutes in any one hour.

(2) Exceptions to section (1) of this rule:

(a) This rule does not apply to fugitive emissions.

(b) This rule does not apply where the presence of uncombined water is the only reason for failure of any source to meet the requirements of this rule.

(c) For wood-fired boilers that were constructed or installed prior to June 1, 1970 and not modified since that time, visible emissions during grate cleaning operations must not equal or exceed 40% opacity for a period or periods aggregating more than three minutes in any one hour.

(A) Beginning June 30, 2013, this exception will only apply if the owner or operator conducts the grate cleaning in accordance with a grate cleaning plan that has been approved by DEQ.

(B) The owner or operator must prepare a grate cleaning plan in consultation with DEQ and submit the plan to DEQ by June 1, 2013.

(3) Opacity is determined in accordance with EPA Method 9 of Appendix A to 40 CFR Part 60 or a continuous opacity monitoring system (COMS) installed and operated in accordance with Performance Specification 1 of Appendix B to 40 CFR Part 60.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468.020 & 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0520

Control of Fugitive Emissions

(1) All sawmills, plywood mills and veneer manufacturing plants, particleboard and hardboard plants, asphalt plants, rock crushers, animal feed manufacturers, and other major industrial facilities as identified by the DEQ, must prepare and implement site-specific plans for the control of fugitive emissions. The plan must be submitted to the DEQ for approval in accordance with paragraph (5) below.

(2) Fugitive emission-control plans must identify reasonable measures to prevent particulate matter from becoming airborne, and avoid the migration of material onto the public road system. Such reasonable measures may include, but are not limited to the following:

(a) Paving all roads and areas on which vehicular traffic occurs at the facility;

(b) Scheduled application of water, or other suitable chemicals on unpaved roads, log storage or sorting yards, materials stockpiles, and other surfaces which can create airborne dust. Dust suppressant material must not adversely affect water quality;

(c) Periodic sweeping or cleaning of paved roads and other areas as necessary to prevent migration of material onto the public road system;

(d) Full or partial enclosure of materials stockpiled or other best management practices in cases where application of oil, water, or chemicals are not sufficient to prevent particulate matter from becoming airborne;

(e) Installation and use of hoods, fans, and fabric filters to enclose and vent the handling of dusty materials;

(f) Adequate containment during sandblasting or other similar operations;

(g) Covering, at all times when in motion, open bodied trucks transporting materials likely to become airborne; and

(h) Procedures for the prompt removal of earth or other material from paved streets.

(3) Reasonable measures may include landscaping and using vegetation to reduce the migration of material onto public and private roadways or from becoming airborne.

(4) The facility owner or operator must supervise and control fugitive emissions and material that may become airborne caused by the activity of outside contractors delivering or removing materials at the site.

(5) For existing sources, the site-specific fugitive emissions control plan must be submitted to the DEQ by July 1, 2013. For sources that obtain their initial permit after December 14, 2012, the site-specific fugitive emission control plan must be submitted within 60 days after permit issuance. For portable sources that move into the nonattainment area after December 14, 2012, the site-specific fugitive emission control plan must be submitted with the relocation notification. Unless otherwise notified by the DEQ, the fugitive emission control plan will be approved by default within 30 days after the plan is submitted to the DEQ. The DEQ may request revisions to the plan at any time if fugitive emissions are not adequately controlled as demonstrated by visible emissions.

NOTE: These rules are included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0530

Requirement for Operation and Maintenance Plans

(1) With the exception of basic and general permit holders, a permit holder must prepare and implement Operation and Maintenance Plans for non-fugitive sources of particulate matter.

(2) The purposes of the operation and maintenance plans are to:

(a) Reduce the number of upsets and breakdowns in particulate control equipment;

(b) Reduce the duration of upsets and downtimes; and

(c) Improve the efficiency of control equipment during normal operations.

(3) The operation and maintenance plans should consider, but not be limited to, the following:

(a) Personnel training in operation and maintenance;

(b) Preventative maintenance procedures, schedule and records;

(c) Logging of the occurrence and duration of all upsets, breakdowns and malfunctions which result in excessive emissions;

(d) Routine follow-up evaluation of upsets to identify the cause of the problem and changes needed to prevent a recurrence;

(e) Periodic source testing of pollution control units as required by the permit;

(f) Inspection of internal wear points of pollution control equipment during scheduled shutdowns; and

(g) Inventory of key spare parts.

(4) Existing sources must submit an Operation and Maintenance Plan to the DEQ by July 1, 2013. Sources obtaining an initial permit after December 14, 2012 must submit the Operation and Maintenance Plan within 60 days of permit issuance. The DEQ will notify sources within 30 days of plan submittal only if the Operation and Maintenance Plan is not approved. The DEQ may request revisions to the plan at any time if plans are not sufficient.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468.020 & 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0540

Compliance Schedule for Existing Industrial Sources

(1) Except as provided in sections (2) and (3) of this rule, compliance with applicable requirements of OAR 340-240-0500 through 340-240-0540 for a source that is built and located in the Klamath Falls Nonattainment Area prior to December 14, 2012 must be demonstrated by the owner or operator of the source as expeditiously as possible, but in no case later than the following schedule:

(a) No later than June 15, 2013, the owner or operator must submit Design Criteria and a Notice of Intent to Construct for emission-control systems for complying with OAR 340-240-0510 through 340-240-0540 for DEQ review and approval; If the DEQ disapproves the Design Criteria, the owner or operator must revise the Design Criteria to meet the DEQ’s objections and submit the revised Design Criteria to the DEQ no later than one month after receiving the DEQ’s disapproval;

(b) No later than three months after receiving the DEQ’s approval of the Design Criteria, the owner or operator must submit to the DEQ copies of purchase orders for any emission-control devices;

(c) No later than eight months after receiving the DEQ’s approval of the Design Criteria, the owner or operator must submit to the DEQ vendor drawings as approved for construction of any emission-control devices and specifications of any other major equipment in the emission-control system in sufficient detail to demonstrate that the requirements of the Design Criteria will be satisfied;

(d) No later than nine months after receiving the DEQ’s approval of the Design Criteria, the owner or operator must begin construction of any emission-control devices;

(e) No later than fourteen months after receiving the DEQ’s approval of Design Criteria, the owner or operator must complete construction in accordance with the Design Criteria;

(f) No later than October 15, 2014, the owner or operator must demonstrate compliance with the applicable requirements identified in OAR 340-240-0500 through 0540. Compliance with 340-240-0510 must be demonstrated by conducting a source test. Compliance with 340-240-0520 and 0530 must be demonstrated by implementing the approved plans.

(2) Section (1) of this rule does not apply if the owner or operator of the source has demonstrated by September 15, 2014 that the source is capable of being operated and is operated in continuous compliance with applicable requirements of OAR 340-240-0500 through 340-240-0540 and the DEQ has agreed with the demonstration in writing. The DEQ may grant an extension until April 15, 2015 for a source to demonstrate compliance under this section. The applicable requirements will be incorporated in the Permit issued to the source.

(3) The DEQ may adjust the schedule specified in subsections (1)(a) through (e) of this rule if necessary to ensure timely compliance with subsection (1)(f) of this rule or if necessary to conform to an existing compliance schedule with an earlier compliance demonstration date.

NOTE: These rules are included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.]

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0550

Requirements for New Sources When Using Residential Wood Fuel-Fired Device Offsets

(1) All new or modified sources subject to OAR 340-224-0050 or 340-224-0060 may opt to use wood fuel-fired device emission reductions from within the nonattainment or maintenance area to satisfy the offset requirements of 340-225-0090(2):

(a) Offsets for decommissioning fireplaces and non-certified woodstoves (including fireplace inserts) are obtained at a ratio of at least 1:1 (i.e., one ton of emission reductions from fireplaces and non-certified wood stoves offsets one ton of emissions from a proposed new or modified industrial point source proposed to be located inside or impacting the non-attainment area or maintenance area);

(b) Offsets must be obtained from within the Klamath Falls Nonattainment Area and Maintenance Area; and

(c) The emission reductions offsets must be approved by the DEQ and comply with OAR 340-240-0560.

(2) The net air quality benefit analysis specified in OAR 340-225-0090(2)(a)(E) is not applicable to offsets meeting the criteria in (a) through (c) of section (1) of this rule.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468.020 & 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0560

Real and Permanent PM2.5 and PM10 Offsets

(1) Annual emissions reductions offsets (PM2.5 and PM10) are determined as follows:

(a) For fireplaces, the emission reductions offsets for decommissioning the fireplace and replacing it with a:

(A) Certified fireplace insert is 0.02 tons for each replaced device;

(B) Pellet stove insert is 0.03 tons for each replaced device; or

(C) Alternative non-wood burning heating system is 0.04 tons for each replaced device.

NOTE: As used in this rule, “Certified” includes catalytic and non-catalytic designs, unless otherwise specified.

(b) For non-certified fireplace inserts, the emission reduction for replacing the heating device with a:

(A) Certified fireplace insert is 0.02 tons for each replaced device;

(B) Pellet stove is 0.04 tons for each replaced device; or

(C) Alternative non-wood burning heating system is 0.04 tons for each replaced device

(c) For conventional (non-certified) woodstoves, the emission reduction for replacing the heating device with a:

(A) Certified woodstove (including both catalytic and non-catalytic designs) or certified fireplace insert is 0.03 tons for each replaced device; or

(B) Pellet stove is 0.05 tons for each replaced device; or

(C) Alternative non-wood burning heating system is 0.06 tons for each replaced device

(d) For certified woodstoves (including both catalytic and non-catalytic designs), the emission reduction for replacing the heating device with a:

(A) Pellet stove is 0.03 tons for each replaced device; or

(B) Alternative non-wood burning heating system is 0.04 tons for each replaced device

(2) For the emission reductions identified in section (1) to be considered permanent, the person responsible for taking credit for the emission reductions must obtain and maintain the following records for at least 5 years from the date that the proposed industrial point source commences operation:

(a) The address of the residence where the emission reduction occurred;

(b) The date that the emission reduction was achieved;

(c) Purchase and installation records for certified woodstoves, certified inserts, or alternative non-wood burning heating systems;

(d) Records for permanently decommissioning fireplaces, if applicable; and

(e) Disposal records for non-certified woodstoves or fireplace inserts removed.

(3) The records identified in section (2) may be provided by a third party authorized and monitored by the DEQ to procure the emission reductions identified in section (1).

(4) All emission reductions must be achieved prior to startup of the proposed source using the emission reductions as offsets in the permitting action specified in OAR 340-224-0050 or 340-224-0060.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468.020 & 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0570

Applicability

OAR 340-240-0570 through 340-240-0630 apply to the Klamath Falls Nonattainment Area for PM2.5 should the area not achieve attainment by the applicable attainment date established pursuant to 42 U.S.C. 7502(a)(2).

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.480
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0580

Existing Industrial Sources Control Efficiency

The owner or operator of an Oregon Title V Operating Permit program source, as defined in OAR 340-200-0020 may not remove or modify existing control devices unless the new control device has the same or better PM2.5 control efficiency as the old device.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.480
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0610

Continuous Monitoring for Industrial Sources

(1) The owner or operator of an Oregon Title V Operating Permit program source, as defined in OAR 340-200-0020 must install and operate instrumentation for measuring and recording emissions or the parameters that affect the emission of particulate matter from wood-fired boilers by June 1, 2015, to ensure that the sources and the air pollution control equipment are operated at all times at their full efficiency and effectiveness so that the emission of particulate matter is kept at the lowest practicable level. Continuous monitoring equipment and operation must be in accordance with the Department’s Continuous Monitoring Manual.

(2) At a minimum, the monitoring required under paragraph (1) of this section must include:

(a) Continuous monitoring of control device parameters for any wood-fired boiler.

(b) Continuous monitoring of opacity for any wood- fired boiler not controlled by a wet scrubber.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468.020 & 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0620

Contingency Measures: New Industrial Sources

New industrial sources must comply with OAR 340-240-0570 through 340-240-0610 immediately upon receiving an Air Contaminant Discharge Permit or an Oregon Title V Operating Permit.

NOTE: These rules are included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-240-0630

Contingency Enhanced Curtailment of Use of Solid Fuel Burning Devices and Fireplaces

(1) Beginning on November 1 of each year and continuing through and including February 28 of the following year, no fireplace, as defined by OAR 340-262-0450, may emit more than 5.1 grams per kilogram of particulate emissions. A fireplace shall be deemed in compliance with this emission standard if it has been certified either in accordance with ASTM international standard test method E2558 or by the DEQ pursuant to 340-262-0500. A fireplace that is not certified as described in this rule shall be presumed not to comply with this rule.

(2) The DEQ may approve exemptions from compliance with section (1) of this rule on days when the DEQ or the Klamath County Health Department has issued a local Klamath Falls Advisory Call indicating that it is a good ventilation day (a “green day”) that are also state holidays or days that the county has designated as a “special occasion day”. Any person who wishes to receive such an exemption must file an exemption application with the DEQ and the DEQ must have approved the exemption request prior to the green day.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.010 - 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-262-1000

Wood Burning Contingency Measures for PM2.5 Nonattainment Areas

(1) Applicability

This rule applies to any area classified as a nonattainment area for PM2.5 that does not achieve attainment by the applicable Clean Air Act deadline.

(2) No owner of a residential solid fuel burning device shall allow the appliance to burn creating opacity greater than 20% opacity for more than three minutes in any 60-minute period including startup time.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.020, 468A.025 & 468A.460 - 468A.515
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12

340-264-0040

Exemptions, Statewide

Except for the provisions contained in OAR 340-264-0050 and 340-264-0060, this Division does not apply to:

(1) Recreational fires and ceremonial fires, for which a fire is appropriate.

(2) Barbecue equipment used in connection with any residence.

(3) Fires set or permitted by any public agency when such fire is set or permitted in the performance of its official duty for the purpose of weed abatement, prevention or elimination of a fire hazard, or a hazard to public health or safety, or for instruction of employees in the methods of fire fighting, which in the opinion of the public agency is necessary. Every effort will be made by the public agency to conduct this burning during good smoke dispersal conditions and specifically avoiding periods during Air Pollution Advisories. The agency will adjust its schedule for setting such fires for better smoke dispersal if necessary. Open burning fires otherwise exempt from the requirements of this division are still subject to the requirements and prohibitions of local jurisdictions and the State Fire Marshall.

(4) Agricultural open burning pursuant to ORS 468A.020. Agricultural open burning is still subject to the requirements and prohibitions of local jurisdictions and the State Fire Marshal.

(5) Open field burning, propane flaming, and stack and pile burning in the Willamette Valley between the crests of the Cascade and Coast Ranges pursuant to OAR chapter 340, division 266, Rules for Field Burning.

(6) Slash burning on forest land or within one-eighth mile of forest land permitted under the Oregon Smoke Management Program regulated by the Department of Forestry pursuant to ORS 477.515.

(7) Fires set pursuant to permit for the purpose of instruction of employees of private industrial concerns in methods of fire fighting, or for civil defense instruction.

(8) Fires set for the purpose of disposal of dry tumbleweed plants (typically Russian Thistle and Tumbleweed Mustard plants) that have been broken off, and rolled about, by the wind.

(9) Agricultural burning for disease or pest control when the fire is set or authorized in writing by the Department of Agriculture.

(10) When caused by an authorized representative of the Department of Agriculture, open burning of carcasses of animals that have died or been destroyed because of an animal disease emergency.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468, 468A & 477
Stats. Implemented: ORS 468A.025
Hist.: DEQ 123, f. & ef. 10-20-76; DEQ 23-1979, f. & ef. 7-5-79; DEQ 27-1981, f. & ef. 9-8-81; DEQ 10-1984, f. 5-29-84, ef. 6-16-84; DEQ 6-1992, f. & cert. ef. 3-11-92; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-023-0035; DEQ 21-2000, f. & cert. ef. 12-15-00; DEQ 12-2008, f. & cert. ef. 9-17-08; DEQ 10-2012, f. & cert. ef. 12-11-12

340-264-0078

Open Burning Control Areas

Generally, areas around the more densely populated locations in the state and valleys or basins that restrict atmospheric ventilation are designated “Open Burning Control Areas”. The practice of open burning may be more restrictive in open burning control areas than in other areas of the state. The specific open burning restrictions associated with these open burning control areas are listed in OAR 340-264-0100 through 340-264-0170 by county. The general locations of open burning control areas are depicted in Figures 2 through 5. The open burning control areas of the state are defined as follows:

(1) All areas in or within three miles of the incorporated city limit of all cities with a population of 4,000 or more.

(2) The Coos Bay Open Burning Control Area is located in Coos County with boundaries as generally depicted in Figure 3 of this rule. The area is enclosed by a line beginning at a point approximately 4-1/2 miles WNW of the City of North Bend, at the intersection of the north boundary of T25S, R13W, and the coastline of the Pacific Ocean; thence east to the NE corner of T25S, R12W; thence south to the SE corner of T26S, R12W; thence west to the intersection of the south boundary of T26S, R14W and the coastline of the Pacific Ocean, thence northerly and easterly along the coastline of the Pacific Ocean to its intersection with the north boundary of T25S, R13W, the point of beginning.

(3) The Rogue Basin Open Burning Control Area is located in Jackson and Josephine Counties with boundaries as generally depicted in Figure 4. The area is enclosed by a line beginning at a point approximately 4-1/2 miles NE of the City of Shady Cove at the NE corner of T34S, R1W, Willamette Meridian, thence south along the Willamette Meridian to the SW corner of T37S, R1W; thence east to the NE corner of T38S, R1E; thence south to the SE corner of T38S, R1E; thence east to the NE corner of T39S, R2E; thence south to the SE corner of T39S, R2E; thence west to the SW corner of T39S, R1E; thence NW along a line to the NW corner of T39S, R1W; thence west to the SW corner of T38S, R2W; thence north to the SW corner of T36S, R2W; thence west to the SW corner of T36S, R4W; thence south to the SE corner of T37S, R5W; thence west to the SW corner of T37S, R6W; thence north to the NW corner of T36S, R6W; thence east to the SW corner of T35S, R1W; thence north to the NW corner of T34S, R1W; thence east to the point of beginning.

(4) The Umpqua Basin Open Burning Control Area is located in Douglas County with boundaries as generally depicted in Figure 5. The area is enclosed by a line beginning at a point approximately four miles ENE of the City of Oakland, Douglas County, at the NE corner of T25S, R5W, Willamette Meridian, thence south to the SE corner of T25S, R5W; thence east to the NE Corner of T26S, R4W; thence south to the SE corner of T27S, R4W; thence west to the SE corner of T27S, R5W; thence south to the SE corner of T30S, R5W; thence west to the SW corner of T30S, R6W; thence north to the NW corner of T29S, R6W; thence west to the SW corner of T28S, R7W thence north to the NW corner of T27S, R7W; thence east to the NE corner of T27S, R7W; thence north to the NW corner of T26, R6W; thence east to the NE corner of T26S, R6W; thence north to the NW corner of T25S, R5W; thence east to the point of beginning.

(5) The boundaries of the Willamette Valley Open Burning Control Area are generally depicted in Figures 1 and 2. The area includes all of Benton, Clackamas, Linn, Marion, Multnomah, Polk, Washington and Yamhill Counties and that portion of Lane County east of Range 7 West.

(6) The Klamath Basin Open Burning Control Area is located in Klamath County with boundaries generally depicted in Figure 6. The area is enclosed by a line beginning at the corner common to northwest corner of Section 31, Township 37 South, Range 9 East of the Willamette Meridian and southwest corner of Section 30 T37S, R9E W.M.; thence east approximately two miles to the northeast corner of Section 32; thence south approximately four miles to the southeast corner of Section 17, T38S, R9E W.M.; thence east approximately one mile to the southwest corner of Section 15,; thence north approximately one mile to the northwest corner of Section 15; thence east approximately 2 miles to the northeast corner of Section 14; thence south approximately one mile to the northwest corner of section 24; thence east approximately one mile to the northeast corner of Section 24; thence south approximately three miles to the southeast corner of Section 36; thence east approximately four miles to the northeast corner of Section 3, T39S, R10E W.M.; thence south approximately three miles to the southeast corner of Section 15; thence west approximately two miles to the southwest corner of Section16; thence south approximately two miles to the southeast corner of Section 29; thence west approximately five miles to the southwest corner of Section 27, T39S, R9E; thence north approximately one mile to the northeast corner of Section 27; thence west approximately four miles to the southwest corner of Section 24, T39S R8E; thence north approximately two miles to the northeast corner of Section 13; thence west approximately one mile to the southwest corner of Section 11; thence north approximately four miles to the northwest corner of Section 26 T38S, R8E; thence west one mile to the southwest corner of Section 22; thence north approximately one mile to the northwest corner of Section 22; thence west approximately one mile to the southwest corner of Section 16; thence north approximately one mile to the northeast corner of Section 16; thence west approximately one mile to the southwest corner of Section 8; thence north approximately two miles to the northwest corner of Section 5; thence east to the northeast corner of Section 1; thence north approximately one mile to the point of beginning.

(7) “Special Open Burning Control Areas” are established around cities within the Willamette Valley Open Burning Control Area. The boundaries of these special open burning control areas are determined as follows:

(a) Any area in or within three miles of the boundary of any city of more than 1,000 but less than 45,000 population;

(b) Any area in or within six miles of the boundary of any city of 45,000 or more population;

(c) Any area between areas established by this rule where the boundaries are separated by three miles or less;

(d) Whenever two or more cities have a common boundary, the total population of these cities will determine the applicability of subsection (a) or (b) of this section and the municipal boundaries of each of the cities must be used to determine the limit of the special open burning control area.

(8) A domestic burning ban area around the Portland metropolitan area is generally depicted in Figure 1A. This area encompasses parts of the special control area in Clackamas, Multnomah and Washington Counties. Specific boundaries are listed in OAR 340-264-0120(5), 340-264-0130(5) and 340-264-0140(5). Domestic burning is prohibited in this area except as allowed pursuant to 340-264-0180.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

[ED. NOTE: Figures referenced are available from the agency.]

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.025
Hist.: DEQ 27-1981, f. & ef. 9-8-81; DEQ 10-1984, f. 5-29-84, ef. 6-16-84; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-023-0115; DEQ 21-2000, f. & cert. ef. 12-15-00, Renumbered from 340-264-0200; DEQ 10-2012, f. & cert. ef. 12-11-12

340-264-0080

County Listing of Specific Open Burning Rules

Except as otherwise provided, in addition to the general requirements and prohibitions listed in OAR 340-264-0050 and 340-264-0060, specific prohibitions of Agricultural, Commercial, Construction, Demolition, Domestic, and Industrial open burning are listed in separate rules for each county. The following list identifies the rule containing prohibitions of specific types of open burning applicable to a given county:

(1) Baker County — OAR 340-264-0100.

(2) Benton County — OAR 340-264-0110.

(3) Clackamas County — OAR 340-264-0120.

(4) Clatsop County — OAR 340-264-0100.

(5) Columbia County — OAR 340-264-0150.

(6) Coos County — OAR 340-264-0170.

(7) Crook County — OAR 340-264-0100.

(8) Curry County — OAR 340-264-0100.

(9) Deschutes County — OAR 340-264-0100.

(10) Douglas County — OAR 340-264-0170.

(11) Gilliam County — OAR 340-264-0100.

(12) Grant County — OAR 340-264-0100.

(13) Harney County — OAR 340-264-0100.

(14) Hood River County — OAR 340-264-0100.

(15) Jackson County — OAR 340-264-0170.

(16) Jefferson County — OAR 340-264-0100.

(17) Josephine County — OAR 340-264-0170.

(18) Klamath County — OAR 340-264-0175.

(19) Lake County — OAR 340-264-0100.

(20) Lane County — OAR 340-264-0160.

(21) Lincoln County — OAR 340-264-0100.

(22) Linn County — OAR 340-264-0110.

(23) Malheur County — OAR 340-264-0100.

(24) Marion County — OAR 340-264-0110.

(25) Morrow County — OAR 340-264-0100.

(26) Multnomah County — OAR 340-264-0130.

(27) Polk County — OAR 340-264-0110.

(28) Sherman County — OAR 340-264-0100.

(29) Tillamook County — OAR 340-264-0100.

(30) Umatilla County — OAR 340-264-0100.

(31) Union County — OAR 340-264-0100.

(32) Wallowa County — OAR 340-264-0100.

(33) Wasco County — OAR 340-264-0100.

(34) Washington County — OAR 340-264-0140.

(35) Wheeler County — OAR 340-264-0100.

(36) Yamhill County — OAR 340-264-0110.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.025
Hist.: DEQ 123, f. & ef. 10-20-76; DEQ 23-1979, f. & ef. 7-5-79; DEQ 1-1981(Temp), f. & ef. 1-9-81; DEQ 7-1981(Temp), f. & ef. 2-17-81; DEQ 8-1981(Temp), f. & ef. 3-13-81; DEQ 27-1981, f. & ef. 9-8-81; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-023-0045; DEQ 21-2000, f. & cert. ef. 12-15-00; DEQ 10-2012, f. & cert. ef. 12-11-12

340-264-0100

Baker, Clatsop, Crook, Curry, Deschutes, Gilliam, Grant, Harney, Hood River, Jefferson, Klamath, Lake, Lincoln, Malheur, Morrow, Sherman, Tillamook, Umatilla, Union, Wallowa, Wasco and Wheeler Counties

Open burning requirements for the counties of Baker, Clatsop, Crook, Curry, Deschutes, Gilliam, Grant, Harney, Hood River, Jefferson, Klamath, Lake, Lincoln, Malheur, Morrow, Sherman, Tillamook, Umatilla, Union, Wallowa, Wasco and Wheeler:

(1) Industrial open burning is prohibited, except as provided in OAR 340-264-0180.

(2) Agricultural open burning is allowed subject to OAR 340-264-0050(5) and the requirements and prohibitions of local jurisdictions and the State Fire Marshal.

(3) Commercial open burning:

(a) Commercial open burning is prohibited within Lincoln County except as provided in OAR 340-264-0180.

(b) Commercial open burning is allowed outside of open burning control areas subject to OAR 340-264-0050, 340-264-0060 and 340-264-0070, and the requirements and prohibitions of local jurisdictions and the State Fire Marshal. Commercial open burning, unless authorized pursuant to 340-264-0180, is prohibited within three miles of the corporate city limits of the following open burning control areas. In addition, commercial open burning is prohibited in any area meeting the test in 340-264-0078(1):

(c) In Baker County, the City of Baker City;

(d) In Clatsop County, the Cities of Astoria, Seaside and Warrenton;

(e) In Crook County, the City of Prineville;

(f) In Curry County, the City of Brookings;

(g) In Deschutes County, the Cities of Bend and Redmond;

(h) In Hood River County, the City of Hood River;

(i) In Jefferson County, the City of Madras;

(j) In Malheur County, the City of Ontario;

(k) In Tillamook County, the City of Tillamook;

(l) In Umatilla County, the Cities of Hermiston, Milton-Freewater and Pendleton;

(m) In Union County, the City of La Grande;

(n) In Wasco County, the City of The Dalles.

(4) Construction and Demolition open burning outside of an open burning control area is allowed subject to the requirements and prohibitions of local jurisdictions, the State Fire Marshal, OAR 340-264-0050, 340-264-0060, and 340-264-0070. Construction and Demolition open burning, unless authorized pursuant to 340-264-0180, is prohibited within three miles of the corporate city limits of the following open burning control areas. In addition, construction and demolition burning is prohibited in any area meeting the standard in 340-264-0078(1):

(a) In Baker County, the City of Baker City;

(b) In Clatsop County, the Cities of Astoria, Seaside and Warrenton;

(c) In Crook County, the City of Prineville;

(d) In Curry County, the City of Brookings;

(e) In Deschutes County, the Cities of Bend and Redmond;

(f) In Hood River County, the City of Hood River;

(g) In Jefferson County, the City of Madras;

(h) In Lincoln County, the Cities of Lincoln City and Newport;

(i) In Malheur County, the City of Ontario;

(j) In Tillamook County, the City of Tillamook;

(k) In Umatilla County, the Cities of Hermiston, Milton-Freewater and Pendleton;

(l) In Union County, the City of La Grande;

(m) In Wasco County, the City of The Dalles.

(5) Domestic open burning is allowed subject to the requirements and prohibitions of local jurisdictions, the State Fire Marshal, and OAR 340-264-0050, 340-264-0060 and 340-264-0070.

(6) Slash burning on forest land within open burning control areas not regulated by the Department of Forestry under the Smoke Management Plan is prohibited, except as provided in OAR 340-264-0180.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.025
Hist.: DEQ 27-1981, f. & ef. 9-8-81; DEQ 6-1992, f. & cert. ef. 3-11-92; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-023-0055; DEQ 21-2000, f. & cert. ef. 12-15-00; DEQ 10-2012, f. & cert. ef. 12-11-12

340-264-0175

Klamath County

Open burning requirements for Klamath County:

(1) Open burning control areas: The Klamath Basin open burning control area as generally described in OAR 340-264-0078(6) and depicted in Figure 6 is located in Klamath County;

(2) Industrial open burning is prohibited unless authorized pursuant to OAR 340-264-0180.

(3) Agricultural open burning is allowed subject to OAR 340-264-0050(5) and the requirements and prohibitions of local jurisdictions and the State Fire Marshal.

(4) Commercial open burning is prohibited within the Klamath Basin open burning control areas and within three miles of the corporate city limits of other areas that meet the standard in OAR 340-264-0078(1), unless authorized pursuant to 340-264-0180. Commercial open burning is allowed in all other areas of this county subject to 340-264-0050, 340-264-0060 and 340-264-0070 and the requirements and prohibitions of local jurisdictions and the State Fire Marshal.

(5) Construction and Demolition open burning is prohibited within the Klamath Basin open burning control areas and within three miles of the corporate city limits of other areas that meet the standard within OAR 340-264-0078(1), unless authorized pursuant to 340-264-0180. Construction and Demolition open burning is allowed in other areas of these counties subject to 340-264-0050, 340-264-0060 and 340-264-0070, and the requirements and prohibitions of local jurisdictions and the State Fire Marshal.

(6) Domestic open burning is allowed subject to OAR 340-264-0050, 340-264-0060, 340-264-0070 and section (7) of this rule, and the requirements and prohibitions of local jurisdictions and the State Fire Marshal.

(7) Slash burning on forest land within open burning control areas not regulated by the Department of Forestry under the Smoke Management Program is prohibited, except as provided in OAR 340-264-0180.

NOTE: This rule is included in the State of Oregon Clean Air Act Implementation Plan as adopted by the Environmental Quality Commission under OAR 340-200-0040.

[ED. NOTE: The figures referenced in this rule are not printed in the OAR Compilation. Copies are available from the agency.]

Stat. Auth.: ORS 468 & 468A
Stats. Implemented: ORS 468A.025
Hist.: DEQ 10-2012, f. & cert. ef. 12-11-12


Rule Caption: Clean Water State Revolving Fund program rules that regulate awarding financial assistance to public agencies.

Adm. Order No.: DEQ 11-2012

Filed with Sec. of State: 12-14-2012

Certified to be Effective: 12-14-12

Notice Publication Date: 8-1-12

Rules Adopted: 340-054-0011, 340-054-0026, 340-054-0027, 340-054-0036, 340-054-0056

Rules Amended: 340-054-0005, 340-054-0010, 340-054-0015, 340-054-0022, 340-054-0025, 340-054-0060, 340-054-0065, 340-054-0100, 340-054-0102, 340-054-0104, 340-054-0106, 340-054-0108

Rules Repealed: 340-054-0020, 340-054-0021, 340-054-0023, 340-054-0024, 340-054-0035, 340-054-0055, 340-054-0085, 340-054-0087, 340-054-0090, 340-054-0093, 340-054-0095, 340-054-0097, 340-054-0098

Subject: This rulemaking amended the Clean Water State Revolving Fund administrative rules. In Oregon, DEQ administers this loan program under the federal Clean Water State Revolving Fund program authorized by Title VI of the Clean Water Act.

 The amendments update current Clean Water State Revolving Fund administrative rule language and clarify processes to improve financial assistance to public agencies for water quality improvement projects. Amendments included:

 • Providing flexibility to project eligibility for all types of water quality improvement projects

 • Revising the project application scoring system and ranking criteria to ensure projects funded provide the most benefits possible for water quality

 • Eliminating the expedited loan reserve

 • Revising the definition of small community

 • Increasing the small community loan reserve

 • Reducing the annual fee on all current loans for two years

 • Reducing interest rates for all loans based on community population and median household income

 • Awarding principal forgiveness priority to small communities with less than median household income

Rules Coordinator: Maggie Vandehey—(503) 229-6878

340-054-0005

Purpose

(1) These rules, OAR 340-054-0005 to 340-054-0108, establish procedures and requirements for the funding of projects and activities that enhance, protect or restore water quality through the Water Pollution Control Revolving Fund, called the Clean Water State Revolving Fund.

(2) The purpose of this division is to:

(a) Assist a public agency to obtain financing for a project that enhances, protects or restores water quality.

(b) Ensure the loan application and funding processes, procedures and requirements are clear.

(c) Promote loan affordability by offering below-market interest rates.

(d) Ensure perpetuity of the CWSRF for reliability of project funding.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 2-1989, f. & cert. ef. 3-10-89; DEQ 3-1995, f. & cert. ef. 1-23-95; DEQ 10-2003, f. & cert. ef. 5-27-03; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0010

Definitions

The following definitions apply to this division of rules:

(1) “Act” means the American Recovery and Reinvestment Act of 2009, Public Law 111-5, signed into law on February 17, 2009.

(2) “Applicant” means a public agency that has applied for a CWSRF loan under this division.

(3) “Borrower” means a public agency that has signed a CWSRF loan agreement with the department.

(4) “Change order” means a written order and supporting information from a borrower to a borrower’s contractor authorizing an addition, deletion or revision in the work within the scope of the contract documents, including any required adjustment in contract price or time.

(5) “Checklist of application requirements” means a list, provided by the department, of all documents that must be submitted with an application to the department under this division.

(6) “Clean Water Act” or “CWA” means the federal Water Pollution Control Act, 33 U.S.C. ¦1251 - ¦1387.

(7) “Clean Water State Revolving Fund” or “CWSRF” means the Water Pollution Control Revolving Fund established under ORS 468.427.

(8) “Collector sewer” means the portion of a public wastewater system installed primarily to receive wastewater directly from individual residences and other individual public or private structures.

(9) “Construction” means the erection, installation, expansion or improvement of a wastewater or stormwater facility, nonpoint source control activity or estuary management project, and includes the demolition of an obsolete facility.

(10) “Cross-cutting authorities” means requirements of federal laws and Executive Orders that apply to projects and activities funded under the CWSRF program.

(11) “Default” means the failure to pay principal, interest or annual fees, or to comply with other CWSRF loan terms or provisions, and includes the filing of bankruptcy or other written admission of an inability to satisfy a borrower’s obligations under a CWSRF loan.

(12) “Department” means the Oregon Department of Environmental Quality.

(13) “Design” means the preparation of engineering drawings and specifications for the proposed construction, and may include pre-design activities.

(14) “EPA” means the U.S. Environmental Protection Agency.

(15) “Estuary management” means the implementation of actions identified in a Comprehensive Conservation Management Plan developed for a designated national estuary.

(16) “Local community loan” means a loan used by a public agency to establish a local financial program that will fund an eligible nonpoint source control or estuary management activity.

(17) “Maintenance” means regularly scheduled work performed to repair, replace or upgrade equipment in a facility, or to prevent or correct a failure or a malfunction of a wastewater or stormwater facility, nonpoint source control or estuary management project.

(18) “Natural infrastructure” means the use of natural form and ecosystem function to restore or augment the intended water quality benefits of a project.

(19) “Nonpoint source” has the meaning given in ORS 468B.005.

(20) “Nonpoint source control” means implementation of a nonpoint source control activity under section 319 of the Clean Water Act and 40 CFR ¦35.3115(b) that is included in the department’s current Oregon Nonpoint Source Control Program Plan.

(21) “Operation” means the control of wastewater collection system pumping stations and wastewater facility treatment unit processes, the control of equipment and processes of stormwater facilities, nonpoint source control and estuary management projects, and the financial and personnel management, records, laboratory control, process control, safety, and emergency planning for these facilities and projects.

(22) Planning.

(a) “Planning” means monitoring, data collection and measurement, evaluation, analysis, security evaluations, report preparation, environmental review, public education and review process and any other activity leading to a written plan for the provision of a wastewater or stormwater facility, nonpoint source control or estuary management project intended to remediate an existing or anticipated water pollution problem.

(b) “Planning” does not mean the preparation of detailed bid documents for construction.

(23) “Point source” has the meaning given in ORS 468B.005.

(24) “Principal forgiveness” means additional subsidization that allows a borrower to repay only a specified portion of the loan principal.

(25) “Project” means the activities or tasks identified in a loan application or a loan agreement for which a borrower may expend or obligate funds.

(26) “Public agency” has the meaning given in ORS 468.423.

(27) Replacement.

(a) “Replacement” means expenditures for obtaining and installing equipment, accessories or appurtenances necessary for the ongoing operation during the design or useful life, if longer, of a wastewater or stormwater facility, nonpoint source control or estuary management project to maintain a facility or project for the purpose it was designed and constructed.

(b) “Replacement” does not mean the replacement of a facility or project at the end of its useful life.

(28) “Small community” means a public agency serving a population of 10,000 or less.

(29) “Sponsorship option” means the department’s financing mechanism that allows a public agency with the authority to finance and implement a wastewater facility project and an eligible nonpoint source control or estuary management activity to be financed through one CWSRF loan.

(30) “Stormwater” means water runoff from a precipitation event, snowmelt runoff, and surface runoff and drainage.

(31) “Sustainability” means the long term reliability and viability of finance, operations, environmental performance or technology, or the use of natural infrastructure.

(32) “Wastewater” has the meaning given for “sewage” in ORS 468B.005.

(33) “Wastewater collection system” means publicly owned pipelines, conduits, pumping stations, force mains and any other related structures, devices or equipment used to convey wastewater to a wastewater treatment facility.

(34) “Wastewater facility” means a wastewater collection system or wastewater treatment facility.

(35) “Wastewater reuse” means a project that uses recycled water, as defined in OAR 340-055-0010, or effluent from a commercial or industrial process that is suitable for a direct beneficial purpose or a controlled use.

(36) “Wastewater treatment facility” means a publicly owned device, structure or equipment used to treat, neutralize, stabilize, reuse or dispose of wastewater and treatment residuals.

(37) “Water quality standards” means the surface water standards established in OAR 340-041 and the minimum groundwater protection requirements established in OAR 340-040.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 2-1989, f. & cert. ef. 3-10-89; DEQ 30-1990, f. & cert. ef. 8-1-90; DEQ 1-1993, f. & cert. ef. 1-22-93; DEQ 3-1995, f. & cert. ef. 1-23-95; DEQ 10-2003, f. & cert. ef. 5-27-03; DEQ 3-2010(Temp), f. & cert. ef. 5-4-10 thru 10-29-10; DEQ 13-2010, f. & cert. ef. 10-27-10; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0011

Authorized Fund Uses

The department will use the CWSRF only to:

(1) Offer loans to eligible borrowers identified in the Intended Use Plan developed pursuant to OAR 340-054-0025.

(2) Fund loan reserves specified in OAR 340-054-0036.

(3) Purchase bonds or acquire other debt obligations.

(4) Pay CWSRF program administration costs to the extent allowed by federal law and state statute.

(5) Earn interest on fund accounts.

(6) Establish reserves for bonds issued by the state for use by the fund.

(7) Pay principal and interest of bond obligations sold to benefit the fund.

Stat. Auth.: ORS 468.020 & ORS 468.440
Stats. Implemented: ORS 468.423 - ORS 468.440
Hist.: DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0015

Eligible Projects and Activities

A public agency may apply for a CWSRF loan up to 100 percent of a water quality project and project related costs including, but not limited to, the following:

(1) Planning for wastewater facilities, nonpoint source control or estuary management projects including supplements or updates.

(2) Wastewater treatment facilities.

(3) Reserve capacity for a wastewater treatment or disposal facility that serves a population not to exceed a 20-year population projection, and for a wastewater collection system, or any portion thereof, not to exceed a 50-year population projection.

(4) Facilities related to solids treatment, disposal, resource recovery, or management.

(5) Interceptors, force mains and pumping stations.

(6) Identification and correction of the intrusion of groundwater into a collector sewer or interceptor sewer (infiltration) and the direct flow of water other than wastewater or groundwater into a collector or interceptor sewer (inflow).

(7) Replacement or repair of interceptor or collector sewers necessary to maintain the structural integrity and function of the sewer.

(8) Overflow correction of a sewer designed as both a sanitary and stormwater sewer (combined sewer), if required to protect sensitive estuarine waters or to comply with department water quality statutes, rules or permits, provided the project is the most cost effective alternative.

(9) New collector sewers required to correct documented water quality violations of state statutes, administrative rules or permit conditions or to serve an area with a documented health hazard due to failing onsite wastewater treatment systems or other wastewater disposal practices resulting in discharge of inadequately treated wastes.

(10) Stormwater facilities, systems or projects, including, but not limited to, engineered or natural facilities to treat, convey or control stormwater discharge, and source controls intended to improve water quality or reduce stormwater volume.

(11) Estuary management activities that address environmental quality directly related to water quality.

(12) Nonpoint source control activities that address environmental quality directly related to water quality.

(13) Wastewater reuse projects.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 2-1989, f. & cert. ef. 3-10-89; DEQ 30-1990, f. & cert. ef. 8-1-90; DEQ 1-1993, f. & cert. ef. 1-22-93; DEQ 3-1995, f. & cert. ef. 1-23-95; DEQ 10-2003, f. & cert. ef. 5-27-03; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0022

Loan Application Requirements

(1) Application submittal. The department will notify interested parties at least annually of the opportunity to submit applications for a CWSRF loan. An eligible public agency may submit to the department a CWSRF loan application at any time.

(2) Consideration for funding. The department will consider an applicant for funding only if its project is included in the Intended Use Plan and all application requirements in this division are met.

(3) All CWSRF loans. An applicant must submit the following to the department:

(a) A complete application on the applicable form provided by the department.

(b) Documents specified in the checklist of application requirements provided by the department.

(c) Audited financial statements for the three years prior to the application date and the applicant’s current budget, unless waived in writing by the department.

(d) Evidence the applicant has the authority to undertake the project including, but not limited to, evidence of a loan approval resolution or similar authorization for signing a loan agreement and establishing a loan reserve account.

(e) Evidence the applicant has authority to collect and pledge the revenue offered as repayment for a CWSRF loan, repay a loan and, where applicable, the ability to ensure ongoing operation and maintenance of the proposed wastewater or stormwater facility, nonpoint source control or estuary management project. The department may require the following criteria to be met for a revenue-secured loan described under OAR 340-054-0065(2):

(A) An applicant’s revenue stream is not at risk from undue dependence upon a limited portion of the system’s customer base or a pattern of delinquent payment from that portion of the system’s customer base, and

(B) An applicant must have the ability to collect from delinquent customers.

(f) Pre-award compliance review report or other evidence as determined by the department to show compliance with federal nondiscrimination requirements.

(g) For projects serving two or more public agencies, the executed inter-agency agreements, contracts or other legally binding instruments necessary for financing, construction and operation of the proposed project. The documents must be satisfactory to the department for determining an adequate pledge of security.

(h) Evidence of resolution, ordinance or other authorization approving bonds secured by sewer or other revenue sources if required by the department.

(i) Official statement of recently issued bonds if required by the department.

(j) Any other information requested by the department as necessary to complete the loan application.

(4) Local community loan. In addition to the requirements in section (3) of this rule, an applicant applying for a CWSRF local community loan must submit the following to the department:

(a) A description of how the project will implement a nonpoint source control activity or estuary management effort.

(b) A projected cash flow statement based on anticipated number of local loans, their repayment schedule, amount and timing of department disbursement and amount and timing of repayments to the department.

(c) Unless waived by the department, evidence of a user charge system or other source of revenue if the applicant will be securing and repaying the loan with sewer system revenues.

(d) Unless waived by the department, demonstration of compliance with applicable federal environmental cross-cutting authorities.

(e) Documentation that demonstrates compliance with the land use requirements in OAR 340-018-0050.

(f) In accordance with OAR 340-052, department approved plans and specifications for the project as applicable.

(g) An environmental determination obtained from the department for a nonpoint source pollution control (CWA ¦ 319) or estuary management (CWA ¦ 320) project that are construction and treatment works as defined in the CWA ¦ 212. The environmental determination must meet the following conditions:

(A) An applicant must provide all necessary documentation to support the department’s review of the entire projects’ potential environmental impacts and include an analysis of a no action alternative and other reasonable alternatives considered.

(B) Project construction must begin within five years of the environmental determination.

(h) If an applicant does not obtain an environmental determination as specified in subsection (4)(g) of this section, an applicant may submit to the department, and the department may accept, an environmental determination made by another agency that meets the following conditions:

(A) The project scope must be essentially unchanged from that accepted by the other agency.

(B) The other agency’s determination must have been made within the previous five years.

(C) The federal environmental cross-cutting authorities have been met and documented.

(5) All design or construction loans. In addition to the requirements in section (3) of this rule, an applicant applying for a CWSRF design or construction loan must submit the following to the department:

(a) Unless waived by the department, evidence of a user charge system or other source of revenue if the applicant will be securing and repaying the loan with sewer system revenues.

(b) Unless waived by the department, demonstration of compliance with applicable federal environmental cross-cutting authorities for a construction project.

(c) An environmental determination obtained from the department for a construction project of a treatment works as defined in the CWA ¦ 212, including a nonpoint source pollution control (CWA ¦ 319) or estuary management (CWA ¦ 320) project that are construction and treatment works as defined in the CWA ¦ 212. The environmental determination must meet the following conditions:

(A) An applicant must provide all necessary documentation to support the department’s review of the entire projects’ potential environmental impacts and include an analysis of a no action alternative and other reasonable alternatives considered.

(B) Project construction must begin within five years of the environmental determination.

(d) If an applicant does not obtain an environmental determination as specified in subsection (5)(c) of this section, an applicant may submit to the department, and the department may accept, an environmental determination made by another agency that meets the following conditions:

(A) The project scope must be essentially unchanged from that accepted by the other agency.

(B) The other agency’s determination must have been made within the previous five years.

(C) The federal environmental cross-cutting authorities have been met and documented.

(e) Documentation that demonstrates compliance with the land use requirements in OAR 340-018-0050.

(f) In accordance with OAR 340-052 and for a construction-only loan, department approved plans and specifications for the project as applicable.

(g) If the estimated cost of a project is in excess of $10 million, a value engineering study satisfactory to the department, prior to construction beginning. The study must be a specialized cost control technique specifically applicable to the wastewater treatment facility design identifying cost savings that can be made without sacrificing project reliability or efficiency.

(6) Design or construction loan for a point source project. In addition to the requirements in sections (3) and (5) of this rule, an applicant applying for a CWSRF design or construction loan for a point source project must submit the following to the department:

(a) An engineered planning document in the form of either a facility plan or project pre-design report that provides a comprehensive evaluation of environmental factors, engineering alternatives and financial considerations affecting the project area. This document must adequately describe the effectiveness and suitability of the proposed project to address the identified water quality problem. An applicant must have this document reviewed and approved by the department prior to signing a design or construction loan.

(b) Evidence of a sewer use ordinance or equivalent authority that prohibits:

(A) New connections from inflow sources into the wastewater collection system, and

(B) Wastewater introduced into the wastewater collection system containing toxics or other pollutants in amounts or concentrations that have the potential of endangering public safety, adversely affecting the project or precluding the selection of the most cost-effective alternative for the project.

(c) When a public agency applies for a wastewater facility construction loan that includes a sponsorship option, complete information about the nonpoint source control or estuary management activity on the applicable application form. The department will only consider a sponsorship option if a nonpoint source control or estuary management activity is included as part of the entire project scope.

(7) Design or construction loan for a nonpoint source project. In addition to the requirements in sections (3) and (5) of this rule, an applicant applying for a CWSRF design or construction loan for a nonpoint source project must submit to the department an engineered planning report. The report must define the water quality problem and specify actions an applicant will implement to correct the problem.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 10-2003, f. & cert. ef. 5-27-03; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0025

Intended Use Plan and Project Priority List

(1) IUP development. The department will annually develop and submit an IUP to EPA as described in the CWA ¦ 606 and 40 CFR ¦35.3150, and will update the IUP as specified in section (2) of this rule. The IUP will describe how the department proposes to fund projects through the CWSRF and will include a project priority list that numerically ranks all eligible applications received.

(2) IUP update.

(a) Except as specified in subsection (2)(b) of this section, the department will update the annual IUP and project priority list at least every four months or when the department receives five eligible applications, whichever timeframe is shorter, and will submit the updated plan to EPA.

(b) If the department does not receive an eligible application during a four month period and determines the project priority list does not need to be updated, the department will not update the IUP.

(3) IUP public notice. The department will provide public notice and an opportunity for the public to comment on a proposed draft IUP.

(a) The department will notify all new applicants of their project application ranking on the project priority list when an annual IUP is developed and updated.

(b) The department will provide 30 days for public comments on a proposed draft IUP.

(c) An applicant may request the department to reevaluate their project application’s score and ranking on the proposed project priority list or to make other changes to an IUP during the public comment period.

(d) The department will consider and respond to all comments submitted during the public comment period before finalizing an IUP.

(4) Project priority list development. The department will include an eligible project under OAR 340-054-0015 on the project priority list if an applicant submits a completed application on a department approved form.

(5) Project priority list ranking. The department will numerically rank all eligible proposed project applications based on the point sum from the criteria specified in Table 1 under OAR 340-054-0026 and Table 2 under OAR 340-054-0027.

(a) Except as specified in subsection (5)(b) of this section, the department will evaluate each criterion in Table 1 under OAR 340-054-0026 and Table 2 under OAR 340-054-0027 on a point scale from one to five as follows:

(A) One point = No or very low likelihood

(B) Two points = Low or in some minor way

(C) Three points = Moderate to significant likelihood

(D) Four points = High likelihood

(E) Five points = Very high likelihood

(b) The department will evaluate criteria 1C, 1D, 2B, 2C, 2D, 2E, and 3D in OAR 340-054-0026 and criterion 5 in OAR 340-054-0027 by doubling the point scale specified in subsection (5)(a) of this section.

(6) Application removal from the project priority list.

(a) The department may retain an applicant’s ranked project on the project priority list in an IUP for up to 36 months while an applicant pursues all applicable CWSRF financing requirements specified in this division.

(b) After the department initially includes a ranked project on the project priority list, an applicant must submit to the department an annual written project status report to remain on the project priority list.

(c) The department may provide one six-month extension to an applicant requesting to remain on the project priority list beyond the 36-month limit. An applicant requesting an extension must submit to the department a written project status report on the applicant’s project progress and an updated time frame indicating when all CWSRF financing requirements will be completed.

(d) The department will remove a project from the project priority list upon written notice to an applicant if:

(A) An applicant does not submit an annual written project status report as required in subsection (6)(b) of this section;

(B) An applicant does not request a six-month extension beyond the 36-month limit and submit the project status report as required in subsection (6)(c) of this section;

(C) The department determines the project scope changed from the original ranked application;

(D) The department determines a project does not meet eligibility requirements;

(E) An applicant does not require CWSRF financing; or

(F) An applicant requests to be removed from the project priority list.

(e) If the department removes a project from the project priority list as specified in paragraph (6)(d)(A through C) of this section, an applicant may resubmit to the department a loan application for an eligible project that the department will evaluate in accordance with section (5) of this rule.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 – 468.440
Hist.: DEQ 2-1989, f. & cert. ef. 3-10-89; DEQ 30-1990, f. & cert. ef. 8-1-90; DEQ 1-1993, f. & cert. ef. 1-22-93; DEQ 3-1995, f. & cert. ef. 1-23-95; DEQ 10-2003, f. & cert. ef. 5-27-03; DEQ 1-2009(Temp), f. 4-27-09, cert. ef. 5-1-09 thru 10-27-09; DEQ 7-2009, f. & cert. ef. 10-28-09; DEQ 3-2010(Temp), f. & cert. ef. 5-4-10 thru 10-29-10; DEQ 13-2010, f. & cert. ef. 10-27-10; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0026

Table 1: CWSRF Project Ranking Criteria for Non-planning Loans

(1) Category 1. Water quality standards and public health considerations.

(a) Does project improve water quality by addressing water quality parameters including, but not limited to, the following: temperature, dissolved oxygen, contaminated sediments, toxic substances, bacteria or nutrients?

(b) Does project ensure that a facility currently in compliance, but at risk of noncompliance, maintains compliance?

(c) Does project address noncompliance with water quality standards, public health issues or effluent limits related to surface waters, biosolids, water reuse or groundwater?

(d) If project is not implemented, is a water quality standard likely to be exceeded or an existing exceedance likely to worsen?

(2) Category 2. Watershed and health benefits.

(a) Does project improve or sustain aquatic habitat supporting native species or state or federally threatened or endangered species?

(b) Does project address water quality or public health issue within a federally designated wild and scenic river or sole source aquifer, state designated scenic waterway, the Lower Columbia River or Tillamook Bay estuary, a river designated under OAR 340-041-0350, or a significant wetland and riparian area identified and listed by a local government?

(c) Does project support implementation of a total maximum daily load (TMDL) allocation, a department water quality status and action plan or designated groundwater management area declared under ORS 468B.180?

(d) Does project provide performance based water quality improvements supported by monitoring and reasonable assurance that the project will continue to function over time?

(e) Does project integrate or expand sustainability or the use of natural infrastructure, or use approaches including, but not limited to, water quality trading, that are not specified in Table 1, 2F through 2I of this rule?

(f) Does project incorporate or expand green stormwater infrastructure including, but not limited to, practices that manage wet weather and that maintain and restore natural hydrology by infiltrating, evapotranspiring, harvesting or using stormwater on a local or regional scale?

(g) Does project incorporate or expand water efficiency including, but not limited to, the use of improved technologies and practices to deliver equal or better services with less water such as conservation, reuse efforts or water loss reduction and prevention?

(h) Does project incorporate or expand energy efficiency including, but not limited to, the use of improved technologies and practices to reduce energy consumption of water quality projects, use energy in a more efficient way or to produce or utilize renewable energy?

(i) Does project incorporate or expand environmentally innovative projects including, but not limited to, demonstrating new or innovative approaches to deliver services or manage water resources in a more sustainable way?

(3) Category 3. Other considerations.

(a) Does project include a long-term planning effort that addresses financial, managerial or technical capability, or asset planning that ensures project will be maintained?

(b) Does project include a significant on-going educational or outreach component?

(c) Does project incorporate other resources including, but not limited to, in-kind support, other funding sources or a partnership with a governmental, tribal or non-governmental organization?

(d) Does project address a water quality improvement or restoration need for a small community?

(e) Does project include a sponsorship option?

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0027

Table 2: CWSRF Project Ranking Criteria for Planning Loans

(1) Will the scope of the planning effort include more than one water quality benefit, pollutant or restoration effort?

(2) Will the scope of the planning effort include sustainability?

(3) Will the scope of the planning effort take advantage of an opportunity with respect to timing, finances, partnership or other advantageous opportunity?

(4) Will the scope of the planning effort include financial, managerial or technical capability aspects of the project?

(5) Will the scope of the planning effort include integrating natural infrastructure and built systems?

(6) Will the scope of the planning effort demonstrate applicant cost effectiveness by considering three or more project alternatives such as optimizing an existing facility, regional partnership or consolidation?

Stat. Auth.: ORS 468.020, 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0036

Reserves, CWSRF General Fund and Project Funding

(1) Allocation to reserves and CWSRF general fund. The department will allocate available CWSRF funds in a state fiscal year first to the small community, planning and green project reserves, and then to the CWSRF general fund based on the following amounts:

(a) A maximum of 25 percent of the total available CWSRF funds to the small community reserve.

(b) A maximum of $3 million to the planning reserve.

(c) An amount at least equal to the minimum required by the current capitalization grant to the green project reserve.

(d) Remaining amount of funds not allocated to the reserves specified in this section to the CWSRF general fund.

(2) Project funding increase.

(a) The department will offer a funding increase based on the original project priority list ranking to a borrower for an existing project loan before offering funding to a loan applicant for a new project loan if:

(A) Funding is available in the CWSRF; and

(B) A borrower submits a written request to the department for additional funding, has legal authority to borrow and financial capability to repay the increased loan amount.

(b) The department will award a funding increase to a borrower in an amount specified in section (3) of this rule by increasing the amount of the existing loan or executing an additional loan at the current interest rate.

(3) Project funding allocation.

(a) During a state fiscal year the department will assign a project to an appropriate reserve, to the CWSRF general fund or to both, and will allocate an amount to a borrower in project priority list rank order based on availability of funds that:

(A) Is not more than the greater of $2.5 million or 15 percent of the total available CWSRF funds in a state fiscal year. The department may allocate additional funds above this limit if funds are available after allocating this limit to all borrowers who request project funding in a state fiscal year.

(B) Is not more than the greater of $750,000 or 25 percent of the small community reserve, until all eligible small community requests have been allocated.

(C) Is not more than $250,000 of the planning reserve.

(D) Only finances the portion of a project funded under the green project reserve that the department determines to meet federal requirements for green infrastructure, water or energy efficiency improvement, or other environmentally innovative activities as defined by current EPA requirements.

(b) During a state fiscal year the department will allocate funding for a new design or construction project loan from the CWSRF general fund if the project is not funded from a reserve.

(c) The department will allocate in project priority list rank order available funding from the CWSRF general fund for a small community or planning project that was not allocated from their respective reserves, or allocated less than the total loan amount requested.

(4) Reallocation of reserve funds.

(a) If small community reserve or planning reserve funds remain on March 1 of a state fiscal year, the department will reallocate in project priority list rank order remaining funds to a borrower who requests additional funding for an existing project currently funded under these reserves. If funds remain after this reallocation, the department will move these funds to the CWSRF general fund.

(b) The department will not reallocate funds remaining in the green project reserve to the CWSRF general fund.

(5) Sponsorship option allocation. The department will determine the total amount of CWSRF funds to be allocated at the reduced interest rate through the sponsorship option in each state fiscal year.

Stat. Auth.: ORS 468.020, 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0056

CWSRF Loan Use Conditions

(1) Clean Water Act plans. The department will only provide a loan to a project that is consistent with plans developed under sections 303(e), 319 or 320 of the Clean Water Act.

(2) Refinancing a long-term loan. The department will not provide a loan that will be used for refinancing a long-term loan or other debt obligations.

(3) Refinancing an interim loan. The department may provide a loan to refinance an interim loan or self-generated funds used to pay department approved project costs if the borrower:

(a) Provides the department with a written notice of intent to apply for long-term financing;

(b) Wants to proceed with the project using interim financing or self-generated funds; and

(c) Agrees to proceed at its own risk whether or not the CWSRF is available to provide long-term financing.

(4) Interim financing. The department may provide short-term, construction period financing for an eligible project if the following conditions are met:

(a) Liquidity of the CWSRF fund is sufficient to provide financing without adversely affecting the amount and timing of disbursements needed by prior obligations;

(b) The borrower has a legally enforceable obligation for long-term project financing satisfactory to the department; and

(c) The loan agreement for interim financing will stipulate the department is not obligated to provide long-term financing for the project.

Stat. Auth.: ORS 468.020, 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0060

Loan Agreement and Conditions

The department will include conditions in a loan agreement that are applicable to the type of project being financed, including, but not limited to, the following:

(1) Timely use of loan funding. The department may cancel a loan agreement if a borrower fails to take reasonable steps to begin using loan proceeds within two years after signing a loan agreement.

(2) Accounting. A borrower must maintain all CWSRF project accounts as separate accounts and must use accounting, audit and fiscal procedures that conform to Generally Accepted Governmental Accounting Standards and the requirements of the Governmental Accounting Standards Board.

(3) Records. A borrower must retain project files and records for three years after project performance affirmative certification or project completion as determined by the department or such longer period as may be required by applicable state or federal law. A borrower must also retain financial files and records for three years after the loan is repaid in full.

(4) Wage requirements.

(a) A borrower for a construction project of a treatment works as defined in the CWA ¦ 212, including a nonpoint source pollution (CWA ¦ 319) or estuary management (CWA ¦ 320) project that are construction and treatment works as defined in the CWA ¦ 212, must comply with the Davis-Bacon Act, as amended, 40 U.S.C. ¦¦3141 to 3144 and 3146 or the prevailing wage rate requirements for public works projects under ORS 279C.800 to 279C.870 and OAR 839-025-0000 to 839-025-0540, whichever is higher.

(b) A borrower for a project not specified in subsection (4)(a) of this section must comply with the prevailing wage rate requirements under ORS 279C.800 to 279C.870 and OAR 839-025-0000 to 839-025-0540.

(5) Debarment and suspension. A borrower must ensure compliance with Subpart C of 2 CFR 18, Responsibilities of Participants Regarding Transactions Doing Business with Other Persons and Subpart C of 2 CFR 1532, Responsibilities of Participants Regarding Transactions.

(6) Engineering documents. If a borrower uses CWSRF financing for the construction of a wastewater facility subject to OAR 340-052, it must submit to the department plans and specifications, operation and maintenance manuals, inspection and certification of proper construction, and any other applicable documentation required by OAR 340-052.

(7) Inspections and progress reports.

(a) A borrower must have a qualified inspector under the direction of a registered civil, mechanical or electrical engineer, as appropriate, conduct on-going inspections during the construction phase of a wastewater facility subject to OAR 340-052 to ensure the project complies with approved plans and specifications. The department or its representative may enter property owned or controlled by the borrower to conduct interim inspections and may require progress reports sufficient to determine compliance with approved plans and specifications and with other loan agreement provisions.

(b) The department may request review and analysis of construction plans from relevant agencies or offices to ensure the project plans not subject to department review under OAR 340-052 support the successful implementation and completion of the project. A borrower must allow inspections by appropriately qualified persons during project construction or implementation to ensure the project as constructed conforms to project plans and other provisions of the loan agreement.

(8) Loan amendments.

(a) The department will not require a loan amendment for changes in project work that are consistent with project objectives and within the loan scope and funding level.

(b) The department will execute a loan amendment if:

(A) The department awards a borrower an increase in the original approved loan amount at any time during the project;

(B) The borrower requests a decrease in the original loan amount at any time during the project or completes the project and does not request disbursement of all loan proceeds; or

(C) The department determines a borrower must meet additional federal or state requirements for CWSRF financing.

(9) Change orders. The department may approve or reject a change order based on the loan eligibility of the project modification and on engineering value in accordance with OAR 340-052-0015. A borrower must submit a change order to the department for engineering and financial review:

(a) When any change order is executed, and

(b) Prior to executing any change order that exceeds $100,000 or will alter project performance.

(10) Project performance certification for a wastewater facility. A borrower must submit to the department, within a timeframe specified by the department, project performance documents to verify if the facility meets performance and operational requirements and specifications which the project was planned, designed and built to achieve. The documents may include, but are not limited to, construction certification, performance evaluation report or performance certification.

(11) Eligible construction costs. The department will disburse loan funds for construction costs limited to work that complies with plans, specifications, change orders and addenda reviewed or approved by the department.

(12) Adjustments. The department may at any time review and audit requests for payment and make adjustments for eligibility, math errors, items not built or bought, unacceptable construction or other discrepancies.

(13) Contract and bid documents. A borrower must submit a copy of the awarded contract and bid documents to the department, including a tabulation of all bids received.

(14) Audit.

(a) If requested by the department, a borrower must submit audited financial statements to the department each year until the loan is repaid.

(b) If federal funds are disbursed as loan proceeds, a borrower must comply with the federal requirements of the Single Audit Act Amendments of 1984, 31 U.S.C. ¦¦7501-7507 (1994) as amended by Pub. L. 104-156, ¦¦ 1-3, 110 Stat. 1397 (1996), and Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-profit Organizations.

(15) Default remedies. A loan agreement must provide adequate remedies for the department to enforce the terms of the agreement. Upon default by a borrower, the department may proceed with one or more of the following:

(a) Pursue any remedy available to it against the borrower.

(b) Appoint a receiver at the expense of the borrower to operate the facility that generates the pledged revenues.

(c) Set and collect utility rates and charges pledged as security for the loan.

(d) Withhold any amounts otherwise due to the borrower from the State of Oregon and direct such funds be applied to the debt service and fees due on the CWSRF loan. If the department finds the loan to the borrower is otherwise adequately secured, the department may waive this right in the loan agreement or other loan documentation.

(e) Declare all or any part of the indebtedness immediately due and payable.

(16) Release. A borrower must release and discharge the department, its officers, agents and employees from all liabilities, obligations and claims occurring from project work or under the loan, subject only to exceptions previously agreed upon in a written contract between the department and the borrower.

(17) Effect of document approval or certification.

(a) The department’s review and approval of facilities plans, design drawings and specifications, or any other documents by or for the department does not relieve a borrower of responsibility to properly plan, design, build and effectively operate and maintain a wastewater or stormwater facility, nonpoint source control or estuary management project as required by law, regulations, permits and good management practices.

(b) The department may not be held responsible for:

(A) Any project costs or any losses or damages resulting from defects in plans, design drawings and specifications, or other sub-agreement documents.

(B) Verifying cost-effectiveness, cost comparisons or adherence to state procurement regulations.

(18) Reservation of rights.

(a) A borrower is not prohibited from requiring more assurances, guarantees, indemnity or other contractual requirements from any party performing project work; and

(b) The department’s right to take remedial action, including, but not limited to, administrative enforcement action and actions for breach of contract against a borrower that fails to carry out its obligations under OAR Chapter 340 is not affected by this rule.

(19) Other provisions and documentation. The department may include other provisions in a CWSRF loan agreement necessary to meet the Clean Water Act and ORS 468.423 to 468.440, and require documentation including, but not limited to, a legal counsel opinion that the loan agreement is enforceable.

Stat. Auth.: ORS 468.423 - 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 2-1989, f. & cert. ef. 3-10-89; DEQ 31-1989(Temp), f. & cert. ef. 12-14-89; DEQ 30-1990, f. & cert. ef. 8-1-90; DEQ 1-1993, f. & cert. ef. 1-22-93; DEQ 3-1995, f. & cert. ef. 1-23-95; Administrative Correction; DEQ 10-2003, f. & cert. ef. 5-27-03; DEQ 2-2008, f. & cert. ef. 2-27-08; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0065

Loan Types, Terms and Interest Rates

(1) Loan types. A CWSRF loan must be one of the following:

(a) A loan secured by a general obligation bond or other full faith and credit obligation of a borrower that is supported by the borrower’s unlimited ad valorem taxing power.

(b) A loan secured by a bond or other obligation of a borrower that is not subject to appropriation and meets the requirements specified in section (2) of this rule.

(c) A revenue secured loan that meets the requirements specified in section (2) of this rule.

(d) An alternative loan that meets the requirements specified in section (3) of this rule.

(2) Revenue secured loans. A revenue secured loan offered by the department must:

(a) Be represented by a properly executed loan agreement, bonds or other unconditional obligations to pay from specified revenues that are pledged by the borrower to the department. The obligation to pay must include a pledge of security acceptable to the department.

(b) Include a rate provision that requires the borrower to impose and collect revenues sufficient to pay:

(A) All expenses of operation, maintenance and replacement of a wastewater or stormwater facility, nonpoint source control or estuary management project.

(B) All debt service.

(C) All other financial obligations including, but not limited to, contributions to reserve accounts imposed in connection with prior lien obligations.

(D) An amount equal to the coverage requirements of the loan. This requirement is the product of the coverage factor times the debt service due in that year on the CWSRF loan. The coverage factor used must correspond to the coverage factor and reserve percentage selected by the borrower from subsection (2)(d) of this section.

(c) Include a debt service reserve provision requiring the borrower to maintain a pledged reserve dedicated to the CWSRF loan payment and that meets the following requirements:

(A) The debt service reserve must be maintained in an amount at least equal to the product of the reserve percentage listed in subsection (2)(d) of this section times one half the average annual debt service during the repayment period based on the repayment schedule or revised repayment schedule in the loan agreement. The reserve percentage selected from subsection (2)(d) of this section must correspond to the coverage factor selected for the CWSRF loan.

(B) A loan reserve may be funded with the borrower’s cash, a letter of credit, repayment guaranty or other third party commitment to advance funds that is satisfactory to the department. If the department determines reserve funding imposes an undue hardship on the borrower, the department may allow reserves to be funded with CWSRF loan proceeds.

(d) Comply with the one of the following coverage factors (net income to debt service) and reserve percentages (percentage of one-half the average annual debt service):

(A) 1.05:1-100 percent

(B) 1.15:1-75 percent

(C) 1.25:1-50 percent

(D) 1.35:1-25 percent

(e) Include a requirement for the borrower to conduct a periodic rate review and adjustment of rates, if necessary, to ensure estimated revenues in subsequent years are sufficient.

(f) Include a requirement that if revenues fail to achieve the required rate level, the borrower must promptly adjust rates and charges to assure future compliance with the rate requirements. The department may determine that failure to adjust rates does not constitute a default if the borrower transfers unencumbered resources in an amount equal to the revenue deficiency to the utility system that generates the revenues.

(g) Include a requirement that if the reserve account is depleted for any reason, the borrower must take prompt action to restore the reserve to the required minimum amount.

(h) Include a requirement restricting additional debt appropriate to the financial condition of the borrower.

(i) Prohibit the borrower from selling, transferring or encumbering any financial or fixed asset of the utility system that produces the pledged revenues if the borrower is in violation of a CWSRF loan requirement, or if such sale, transfer or encumbrance may cause a violation of a CWSRF loan requirement.

(3) Alternative loans. The department may authorize an alternative loan for a reasonable alternative financing method if the borrower demonstrates to the department’s satisfaction that:

(a) Borrowing money from the CWSRF through general obligation bonds, revenue bonds or a revenue-secured loan, as described in subsection (1)(a), (b) or (c) of this rule is unduly burdensome or costly to the borrower.

(b) The alternative loan has a credit quality substantially equal to, or better than, the revenue secured loan credit quality to the borrower. The department may consult with a financial advisor and may charge the borrower reasonable consultation costs to determine if an alternative loan meets the credit quality requirement.

(4) Interest rates.

(a) Effective date. The interest rates as specified in this section are effective for all loan agreements executed on or after January 1, 2013.

(b) Base rate. The department will determine the base rate used in computing the interest rates on all direct loans for a quarter based on the weekly average of state and local government bond interest rates for the preceding quarter. This base rate will be the “state and local bonds” entry reported in “Selected Interest Rates, H.15” posted by the Federal Reserve from the “Bond Buyer Index” for general obligation bonds (20 years to maturity, mixed quality).

(c) Planning loans. The interest rate for a planning loan will be equal to 25 percent of the base rate.

(d) Local community loans. The interest rate for a local community loan will be equal to 50 percent of the base rate.

(e) All other direct loans. Except as provided in OAR 340-054-0065(10), the department will provide the following interest rates for all other CWSRF loans:

(A) 25 percent of the base rate, with a maximum repayment period of 5 years.

(B) 30 percent of the base rate for small communities with less than statewide median household income or 45 percent for all other borrowers, with a maximum repayment period of 10 years.

(C) 35 percent of the base rate for small communities with less than statewide median household income or 50 percent for all other borrowers, with a maximum repayment period of 15 years.

(D) 40 percent of the base rate for small communities with less than statewide median household income or 55 percent for all other borrowers, with a maximum repayment period of 20 years.

(f) Sponsorship option. When a sponsorship option is implemented within the scope of a construction loan, the department:

(A) Will calculate the debt service on the wastewater facility project based on subsection (4)(e) of this rule;

(B) Will calculate the debt service on a combined sponsorship loan by reducing the interest rate so the debt service on the sponsorship loan equals the debt service as calculated in subsection (4(f)(A) of this rule; and

(C) May not reduce the resulting interest rate below one percent.

(g) Bond proceeds for direct loans. The department may use bond proceeds that are matching funds for federal capitalization grants to fund direct loans at the interest rates listed in this section. This subsection will not be affected by any change in the source of repayment for matching bonds.

(5) Interest accrual and payment period. Interest accrual begins when the department makes the first CWSRF loan disbursement to a borrower. A borrower must include all outstanding accrued interest with each loan repayment.

(6) Annual loan fee.

(a) Except as provided in subsections (6)(b) and (6)(c) of this section, a borrower must pay the department an annual loan fee of 0.5 percent on the unpaid loan balance specified in the payment schedule in its loan agreement. This annual loan fee is in addition to any other payments a borrower is required to make under its loan agreement.

(b) From January 1, 2013 through December 31, 2014, the annual loan fee will be 0.25 percent on the unpaid loan balance.

(c) The department will not charge a borrower any annual loan fee for a planning loan.

(7) Commencement of loan repayment. A borrower must begin its loan principal and interest repayments within one year of the date the facility is operationally complete and ready for the purpose it was planned, designed, and built or the project is completed, as determined by the department.

(8) Loan term.

(a) A borrower must fully repay a loan in accordance with a schedule determined by the department. The department will consider the useful life of the assets financed when determining a schedule, and the repayment term for:

(A) A planning loan will not exceed five years.

(B) A local community loan will not exceed ten years.

(C) All other loans will not exceed 20 years after project completion.

(b) The department will allow prepayments at any time without penalty on all CWSRF loans except as specified in section (10) of this rule.

(9) Minor variations in loan terms. The department may authorize minor variations in financial terms of loans described in this rule to facilitate administration and repayment of a loan.

(10) Leveraged loans.

(a) The department may fund loans with bond proceeds through a leveraged loan program under the following terms and conditions:

(A) Interest rates will be less than the interest rate paid by the state on bonds sold to fund the leveraged loans. Rates will be fixed at 65 percent of the base rate.

(B) Loan fees will be in accordance with section (6) of this rule.

(C) Notwithstanding other provisions of this rule, the department may make changes to the terms and conditions of a leveraged CWSRF loan to make it marketable. To the maximum extent practicable, the terms and conditions will be the same as for direct loans.

(b) Bond issuance and related transaction costs will be paid out of bond proceeds to the extent permitted by law.

(11) Additional subsidization. The department must provide additional subsidization to the minimum extent required by the current federal fiscal year capitalization grant. Additional subsidization will be in the form of principal forgiveness in accordance with the criteria established in this section. A loan with principal forgiveness is subject to standard interest rates, fees, and loan terms as defined in this rule.

(a) Principal forgiveness priority. The department will offer principal forgiveness to a project based on original project priority list rank order and in the following priority to a:

(A) Small community with less than statewide median household income for an increase to a current planning loan and then to a new planning loan.

(B) Small community with less than statewide median household income for an increase to a current design or construction loan and then to a new design or construction loan.

(C) Small community with equal to or more than statewide median household income for an increase to a current planning, design or construction loan and then to a new planning, design or construction loan.

(D) Community other than a small community with less than statewide median household income for an increase to a current design or construction loan and then to a new design or construction loan; and then to a

(E) Community other than a small community with equal to or more than statewide median household income for an increase to a current design or construction loan and then to a new design or construction loan.

(b) Principal forgiveness ineligibility. A project funded under the sponsorship option is not eligible for principal forgiveness.

(c) Principal forgiveness for a point source project. The department will base eligibility and the amount of principal forgiveness for a point source project on a community’s median household income (MHI). The MHI used to calculate the level of principal forgiveness is based on the most recent and available income data provided by the U.S. Census Bureau. The department may use sub-data such as census tract, block tract data or an income survey approved by the department as a basis for calculating an applicant’s or borrower’s MHI.

(A) Determining principal forgiveness eligibility.

(i) An applicant’s or borrower’s MHI is multiplied by an affordability index and then the result is divided by twelve if its MHI is less than the statewide MHI. The result of this calculation yields an affordability rate expressed in dollars per month. The department will use the affordability rate to determine the maximum amount of principal forgiveness an applicant or borrower is eligible for. An applicant or borrower must submit and obtain written department approval for its projected sewer rate that reflects the additional costs of the proposed project.

(ii) The affordability index is used to calculate the affordability rate. The affordability index of 1.25 percent is the department’s standard factor representing the percentage of a household’s income necessary to cover the cost of sewer service. This factor is adjusted semi-annually for inflation based on the Portland, Oregon consumer price index as listed by the Oregon Employment Department.

(iii) Calculating the affordability rate (AR): AR = (Applicant’s MHI x affordability index)/12

(iv) If the affordability rate (in cost per month) is less than the projected sewer rate (in cost per month), then an applicant or borrower is eligible for principal forgiveness.

(B) Principal forgiveness amount. The maximum amount of principal forgiveness is the amount required to reduce the projected sewer rate to a level equal to the calculated affordability rate. The total amount of principal forgiveness the department will offer to a point source project must not exceed 75 percent of the loan amount or $1 million, whichever is less.

(d) Principal forgiveness for a nonpoint source control or an estuary management project. The total amount of principal forgiveness the department will offer to a nonpoint source control or estuary management project must not exceed 30 percent of the loan amount or $1 million, whichever is less.

(e) Principal forgiveness for a planning project. The total amount of principal forgiveness the department will offer to a planning project must not exceed 30 percent of the loan amount.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 2-1989, f. & cert. ef. 3-10-89; DEQ 31-1989(Temp), f. & cert. ef. 12-14-89; DEQ 30-1990, f. & cert. ef. 8-1-90; DEQ 1-1993, f. & cert. ef. 1-22-93; DEQ 3-1995, f. & cert. ef. 1-23-95; DEQ 10-2003, f. & cert. ef. 5-27-03; DEQ 3-2010(Temp), f. & cert. ef. 5-4-10 thru 10-29-10; DEQ 13-2010, f. & cert. ef. 10-27-10; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0100

Implementation within the CWSRF Program

(1) OAR 340-054-0100 through 340-054-0108 prescribe the use of Act funds through the CWSRF program when such funds are available to the department.

(2) When Act funds are available to the department, the department must award these funds to public agencies in accordance with the Act and the requirements of the CWSRF.

(3) All requirements for projects funded under the Act not specifically addressed in OAR 340-054-0100 through 340-054-0108 are subject to 340-054-0005 through 340-054-0065.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 1-2009(Temp), f. 4-27-09, cert. ef. 5-1-09 thru 10-27-09; DEQ 7-2009, f. & cert. ef. 10-28-09; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0102

Project Eligibility under the Act

(1) Eligibility for funding under the Act is the same as prescribed in OAR 340-054-0015 except planning, as defined in 340-054-0010(22), is not eligible.

(2) The acquisition of land for any purpose, or the development or purchase of an easement are not eligible under the Act.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 1-2009(Temp), f. 4-27-09, cert. ef. 5-1-09 thru 10-27-09; DEQ 7-2009, f. & cert. ef. 10-28-09; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0104

Use of Funds and Intended Use Plan under the Act

(1) Funding purpose. Notwithstanding OAR 340-054-0011, funding provided under the Act may be used only for the following CWSRF purposes:

(a) To make loans, or purchase bonds;

(b) To pay CWSRF program administration costs to the extent allowed by federal law;

(c) To earn interest on fund accounts.

(2) Loan increases. Notwithstanding OAR 340-054-0036, the department will only provide loan increases using Act funding to loans funded by the Act and only to the extent consistent with OAR 340-054-0106.

(3) Existing loan agreement. A borrower with a loan agreement executed prior to October 1, 2008 is not eligible to receive funding under the Act for a project as described and funded under that existing loan agreement.

(4) Loan reserve. Notwithstanding OAR 340-054-0036, the required reserve of any individual loan cannot be funded with CWSRF loan proceeds provided from the Act.

(5) Intended Use Plan.

(a) A project must be listed in the IUP to be eligible for funding under the Act.

(b) Notwithstanding OAR 340-054-0025(3)(b), the department must provide at least 14 days for public comments on a proposed draft IUP.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 1-2009(Temp), f. 4-27-09, cert. ef. 5-1-09 thru 10-27-09; DEQ 7-2009, f. & cert. ef. 10-28-09; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0106

Allocation of Act Funds

Notwithstanding OAR 340-054-0036, funds made available by the Act must be allocated as follows:

(1) Funding of applicants. Funds will be offered to an applicant on the project priority list in rank order, subject to eligibility. A project is not eligible unless all required documentation is complete and appropriate environmental review, including any required notice and opportunity for public comment, has been completed at the time the department finalizes the intended use plan.

(2) Applicant’s funding limit. The department will determine the amount of funding to be provided to an applicant, but the amount of any loan may not exceed $5 million per applicant, except as provided in section (3) of this rule.

(3) Allocation of remaining funds. If there are no applicants on the project priority list eligible for a loan under the Act, a borrower that has received partial funding under the Act may be allocated additional funding. The department may allocate the remaining funds to a borrower based on rank order not to exceed 25 percent of the remaining funds or $2 million, whichever is greater.

(4) Green project reserve. The department must establish a green project reserve with 20 percent of the funding received under the Act for projects to address green infrastructure, water or energy efficiency improvements or other environmentally innovative activities. If the department determines and certifies there are insufficient eligible projects for funding under this reserve, the reserve may be allocated to other eligible projects under the Act.

(5) Funding categories. Funds available under the Act may not be used to establish a small community reserve or a planning reserve.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 1-2009(Temp), f. 4-27-09, cert. ef. 5-1-09 thru 10-27-09; DEQ 7-2009, f. & cert. ef. 10-28-09; DEQ 11-2012, f. & cert. ef. 12-14-12

340-054-0108

Financial Terms

Notwithstanding OAR 340-054-0065, the following financial terms apply to any loan funded under the Act.

(1) Interest rates. The department may provide a loan at a zero percent interest rate.

(2) Principal forgiveness.

(a) A loan made by the department to a public agency serving a population of 5,000 or less must include 75 percent principal forgiveness on the total amount borrowed.

(b) A loan made by the department to a public agency serving a population greater than 5,000 must include 50 percent principal forgiveness on the total amount borrowed.

(c) Principal forgiveness is granted upon execution of the loan agreement.

Stat. Auth.: ORS 468.020 & 468.440
Stats. Implemented: ORS 468.423 - 468.440
Hist.: DEQ 1-2009(Temp), f. 4-27-09, cert. ef. 5-1-09 thru 10-27-09; DEQ 7-2009, f. & cert. ef. 10-28-09; DEQ 11-2012, f. & cert. ef. 12-14-12

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2012.

2.) Copyright 2013 Oregon Secretary of State: Terms and Conditions of Use

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