1. (1) Compliance demonstration. Each registered party must meet its compliance obligation for the compliance period by demonstrating through submission of its annual compliance report that it possessed and has retired a number of credits from its account that is equal to its compliance obligation calculated under section (2).

2. (2) Calculation of compliance obligation. A registered party’s compliance obligation is the sum of deficits generated in the compliance period plus deficits carried over from the prior compliance period, represented in the following equation:

   Compliance Obligation = Deficits Generated + Deficits Carried Over

3. (3) Calculation of credit balance.

   1. (a) Definitions. For the purpose of this section:

      1. (A) Deficits Generated are the total deficits generated by the registered party for the current compliance period;
      2. (B) Deficits Carried Over are the total deficits carried over by the registered party from the previous compliance period;
      3. (C) Credits Generated are the total credits generated by the registered party in the current compliance period;
      4. (D) Credits Acquired are the total credits acquired by the registered party in the current compliance period from other registered parties, including carryback credits;
      5. (E) Credits Carried Over are the total credits carried over by the registered party from the previous compliance period;
      6. (F) Credits Retired are the total credits retired by the registered party within the OFRS for the current compliance period;
      7. (G) Credits Sold are the total credits sold by, or otherwise transferred from, the registered party in the current compliance period to other registered parties; and
      8. (H) Credits on Hold are the total credits placed on hold due to enforcement or an administrative action. While on hold, these credits cannot be used for meeting the registered party’s compliance obligation.

   2. (b) A registered party’s credit balance is calculated using the following equation:

      Credit Balance = (Credits Gen + Credits Acquired + Credits Carried Over) – (Credits Retired + Credits Sold + Credits on Hold)

4. (4) Small deficits. At the end of a compliance period, a registered party that has a net deficit balance may carry forward a small deficit to the next compliance period without penalty. A small deficit exists if the amount of credits the registered party needs to meet its compliance obligation is 5 percent or less than the total amount of deficits the registered party generated for the compliance period.
5. (5) Extended credit acquisition period. A registered party may acquire carryback credits between January 1st and April 30th to be used for meeting its compliance obligation for the prior compliance period. A registered party must complete all carryback credit transfers in the OFRS prior to submitting their annual report, but no later than April 30, in order for them to be valid for meeting the compliance obligation for that annual report’s compliance period.
6. (6) Registered parties who do not demonstrate compliance under section (1) and whose deficit is not small as defined in section (4) may demonstrate compliance through participation in the Credit Clearance Market under OAR 340-253-1040.

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 8-2012, f. & cert. ef. 12-11-12