Oregon'S Clean Fuels Program: A Review And Status Update

Oregon implemented a fuel carbon policy called the Clean Fuels Program (CFP) in 2016. Modeled largely on the Low Carbon Fuel Standard (LCFS) operated by California, the CFP sets a declining target for the average life cycle carbon intensity (CI) of transportation fuels used in the state. The CFP incentivizes the deployment of emissions-reducing fuels and vehicles, and can contribute toward economy-wide greenhouse gas reduction goals. This paper reviews program data from the first three years of the CFP's operation, provides an overview of program characteristics, identifies key trends, and compares the CFP to the LCFS. While it is early in the program's operational history and CI reduction targets are small, the available data indicate a program functioning as expected based on the experience of jurisdictions with similar programs. Aggregate emissions reductions have slightly exceeded targets resulting in the accumulation of a small bank of credits. Early compliance has largely been driven by blending of ethanol into retail gasoline and the introduction of greater volumes of diesel substitutes. Electric vehicles are a small but rapidly growing contributor to compliance. As targets grow more stringent, compliance will require greater volumes of low carbon fuels to be brought to market.