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Oregon Revised Statutes

Or. Rev. Stat. § 468A.266 (2026)

Low carbon fuel standards; clean fuels program; rules

✓ current as of May 2026
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      468A.266 Low carbon fuel standards; clean fuels program; rules. (1) The Environmental Quality Commission, by rule:

      (a) Shall adopt low carbon fuel standards for gasoline, diesel and fuels used as substitutes or alternatives for gasoline or diesel; and

      (b) Shall adopt a clean fuels program for facilitating compliance with the low carbon fuel standards and for managing and containing the costs of compliance with the low carbon fuel standards, in accordance with the requirements of ORS 468A.265 to 468A.277.

      (2) The commission may adopt rules related to the low carbon fuel standards, including but not limited to:

      (a) A schedule to phase in implementation of the standards in a manner that reduces the average amount of greenhouse gas emissions per unit of fuel energy of the fuels by 10 percent below 2010 levels by the year 2025 or by a later date if the commission determines that an extension is appropriate to implement the low carbon fuel standards;

      (b) Standards for greenhouse gas emissions attributable to the fuels throughout the lifecycles of the fuels, including but not limited to emissions from the production, storage, transportation and combustion of the fuels and from changes in land use associated with the fuels;

      (c) Provisions allowing the use of all types of low carbon fuels to meet the low carbon fuel standards, including but not limited to biofuels, biogas, natural gas, liquefied petroleum gas, gasoline, diesel, hydrogen and electricity;

      (d) Exemptions for fuels that are used in volumes below thresholds established by the commission;

      (e) Standards, specifications, testing requirements and other measures as needed to ensure the quality of fuels produced in accordance with the low carbon fuel standards, including but not limited to the requirements of ORS 646.910 to 646.923 and administrative rules adopted by the State Department of Agriculture for motor fuel quality; and

      (f) Adjustments to the amounts of greenhouse gas emissions per unit of fuel energy assigned to fuels for combustion and drive train efficiency.

      (3) Before adopting low carbon fuel standards under this section, the commission shall consider the low carbon fuel standards of other states for the purpose of determining schedules and goals for the reduction of the average amount of greenhouse gas emissions per unit of fuel energy and the default values for these reductions for applicable fuels.

      (4) The commission shall exempt from the low carbon fuel standards any person who imports in a calendar year less than 500,000 gallons of gasoline and diesel fuel, in total. Any fuel imported by persons that are related or share common ownership or control shall be aggregated together to determine whether a person is exempt under this subsection.

      (5) In adopting rules under this section, the commission shall evaluate:

      (a) Safety, feasibility, net reduction of greenhouse gas emissions and cost-effectiveness;

      (b) Potential adverse impacts to public health and the environment, including but not limited to air quality, water quality and the generation and disposal of waste in this state;

      (c) Flexible implementation approaches to minimize compliance costs; and

      (d) Technical and economic studies of comparable greenhouse gas emissions reduction measures implemented in other states and any other studies as determined by the commission. [Formerly 468A.275]

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 2018–2024 · leading case: W. States Petroleum Ass'n v. Envtl. Quality Comm'n, 439 P.3d 459 (Or. Ct. App. 2019).
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W. States Petroleum Ass'n v. Envtl. Quality Comm'n, 439 P.3d 459 (Or. Ct. App. 2019). · cites it 16× “" ORS 468A.266 (5)(b). That factor is not evaluated or even mentioned in the 2011 DEQ report that was provided to EQC and relied upon when EQC adopted the Phase II amendments in December 2015.”
Am. Fuel & Petrochemical v. Jane O'Keeffe, 903 F.3d 903 (9th Cir. 2018). “Or. Rev. Stat. §§ 468A.266–268. Between 2010 and 2015, the OEQC promulgated rules designed to reduce greenhouse gas emissions from use and production of transportation fuels in Oregon to at least 10% AM.”
In re The Application Of The Gas Co., LLC dba Hawaii Gas For Approval Of Rate Increases & Revised Rate Schedules & Rules. (Haw. 2020). “Executive Officer, related to the full fuel life cycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass…”
City of Cornelius v. Dept. of Land Conservation (Or. Ct. App. 2024). “Applying that reasoning here, we also must con- clude that ORS 197.040(1)(b) is a rulemaking procedure, because it requires LCDC to assess and consider certain factors “in designing its administrative requirements.”
— Or. Rev. Stat. § 468A.266(1)(a) — 1 case
W. States Petroleum Ass'n v. Envtl. Quality Comm'n, 439 P.3d 459 (Or. Ct. App. 2019). “" ORS 468A.266 (5)(b). That factor is not evaluated or even mentioned in the 2011 DEQ report that was provided to EQC and relied upon when EQC adopted the Phase II amendments in December 2015.”
— Or. Rev. Stat. § 468A.266(2)(b) — 1 case
In re The Application Of The Gas Co., LLC dba Hawaii Gas For Approval Of Rate Increases & Revised Rate Schedules & Rules. (Haw. 2020). “Executive Officer, related to the full fuel life cycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass…”
— Or. Rev. Stat. § 468A.266(3) — 1 case
W. States Petroleum Ass'n v. Envtl. Quality Comm'n, 439 P.3d 459 (Or. Ct. App. 2019). “" ORS 468A.266 (5)(b). That factor is not evaluated or even mentioned in the 2011 DEQ report that was provided to EQC and relied upon when EQC adopted the Phase II amendments in December 2015.”
— Or. Rev. Stat. § 468A.266(5) — 2 cases
W. States Petroleum Ass'n v. Envtl. Quality Comm'n, 439 P.3d 459 (Or. Ct. App. 2019). “" ORS 468A.266 (5)(b). That factor is not evaluated or even mentioned in the 2011 DEQ report that was provided to EQC and relied upon when EQC adopted the Phase II amendments in December 2015.”
City of Cornelius v. Dept. of Land Conservation (Or. Ct. App. 2024). “Applying that reasoning here, we also must con- clude that ORS 197.040(1)(b) is a rulemaking procedure, because it requires LCDC to assess and consider certain factors “in designing its administrative requirements.”
— Or. Rev. Stat. § 468A.266(5)(b) — 1 case
W. States Petroleum Ass'n v. Envtl. Quality Comm'n, 439 P.3d 459 (Or. Ct. App. 2019). “" ORS 468A.266 (5)(b). That factor is not evaluated or even mentioned in the 2011 DEQ report that was provided to EQC and relied upon when EQC adopted the Phase II amendments in December 2015.”
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