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

   1. (a) Fuels used in small volumes. A single type of transportation fuel supplied for use in Oregon if the producer or importer documents that all providers supply an aggregate volume of less than 360,000 gallons of liquid fuel per year; and

   2. (b) Small volume fuel producer. A transportation fuel under OAR 340-253-0200(2) supplied for use in Oregon if the producer documents that:

      1. (A) The producer has an annual production volume of less than 10,000 gallons of liquid fuel per year;
      2. (B) The producer uses the entire volume of fuel produced in motor vehicles used by the producer directly and has an annual production volume of less than 50,000 gallons of liquid fuel; or
      3. (C) The producer is a research, development or demonstration facility.

2. (2) Exempt fuel uses.

   1. (a) Transportation fuels supplied for use in any of the following motor vehicles are exempt from regulation, subject to subsections (b) and (c):

      1. (A) Aircraft;
      2. (B) Racing activity vehicles defined in ORS 801.404;
      3. (C) Military tactical vehicles and tactical support equipment;
      4. (D) Locomotives;
      5. (E) Watercraft;
      6. (F) Motor vehicles registered as farm vehicles as provided in ORS 805.300;
      7. (G) Farm tractors defined in ORS 801.265;
      8. (H) Implements of husbandry defined in ORS 801.310;
      9. (I) Motor trucks defined in ORS 801.355 if used primarily to transport logs; and

      10. (J) Motor vehicles that meet all of the following conditions:

          1. (i) Not designed primarily to transport persons or property;
          2. (ii) Operated on highways only incidentally; and
          3. (iii) Used primarily for construction work.

   2. (b) To claim as exempt a regulated fuel used as described in subsection (a), the regulated party must provide the following documentation that the fuel was supplied for use in a motor vehicle listed in subsection (a):

      1. (A) Individual receipts or invoices for each fuel sale claimed as exempt that list the specific customer and exempt vehicle type;
      2. (B) If the fuel is sold through a dedicated tank for a single customer, electronic or paper records that document that the customer’s vehicle(s) being fueled are in an exempt category under subsection (a), and that the tank is not used to fuel any other vehicles; or

      3. (C) Other comparable documentation approved in writing by DEQ prior to exemptions being claimed. The documentation must:

         1. (i) Establish that the fuel was sold through a dedicated source to use in a type of vehicle specified in subsection (a); or
         2. (ii) Be on a fuel transaction basis if the fuel is not sold through a dedicated source.
         3. (c) The records described in subsection (b) must be kept by the person asserting the exemption for not fewer than five years after the year in which they occurred, and the person must provide them to DEQ upon request.

Statutory/Other Authority

ORS 468.020, 468A.266, 468A.268 & 468A.277

Statutes/Other Implemented

ORS 468.020 & ORS 468A.265 through 468A.277

History

DEQ 17-2022, amend filed 09/23/2022, effective 01/01/2023
DEQ 199-2018, amend filed 11/16/2018, effective 01/01/2019
DEQ 27-2017, amend filed 11/17/2017, effective 11/17/2017
DEQ 13-2015, f. 12-10-15, cert. ef. 1-1-16
DEQ 3-2015, f. 1-8-15, cert. ef. 2-1-15
DEQ 8-2014, f. & cert. ef. 6-26-14
DEQ 15-2013(Temp), f. 12-20-13, cert. ef. 1-1-14 thru 6-30-14
DEQ 8-2012, f. & cert. ef. 12-11-12