Because of the road taxing issues, I don’t think that would be possible.
Ralph Poole
P.O. Box 309
87 SE 7th Avenue
Ontario, OR 97914
Phone (800) 653-4125
Cell (208) 739-3028
From: OregonCleanFuels [mailto:OregonCleanFuels@deq.state.or.us]
Sent: Wednesday, October 09, 2013 1:54 PM
To: 'Ralph Poole'
Cc: WIND Cory Ann
Subject: RE: Proposed changes to the Oregon Clean Fuels Program
I agree...and it is my hope too that we continue to look for practical ways to balance the impact of the regulations with maintaining the integrity of the program.
Let me ask you another question – since you operate as an owner of a bulk storage facility, a transporter, and a retail distribution facility, don’t you have the flexibility to transfer ownership away from your retail business to one of the businesses higher up the distribution chain? And if so, couldn’t you extend that beyond just your retail facilities to others that you provide fuel for? Just food for thought on my end…
Cory-Ann Wind
Air Quality Planner
503-229-5388
From: Ralph Poole [mailto:ralph@campopoole.com]
Sent: Wednesday, October 09, 2013 12:48 PM
To: OregonCleanFuels
Subject: RE: Proposed changes to the Oregon Clean Fuels Program
My hope was to save the small retailers from any requirements. The underlined in the last bullet does NOT help any small retailer that operates near a border and their fuel comes in from out of state. Almost all fuel delivered to small retailers in Eastern Oregon get fuel from Idaho and don’t have the option to buy from an Oregon rack. It makes it harder for the rest of us, because we have to separate those loads out and not report, hoping they do report.
Ralph Poole
P.O. Box 309
87 SE 7th Avenue
Ontario, OR 97914
Phone (800) 653-4125
Cell (208) 739-3028
From: OregonCleanFuels [mailto:OregonCleanFuels@deq.state.or.us]
Sent: Wednesday, October 09, 2013 12:45 PM
To: 'Ralph Poole'
Cc: WIND Cory Ann
Subject: RE: Proposed changes to the Oregon Clean Fuels Program
You are right that the definition of importer still might capture retail stations that own the fuel the first time it’s in a tank in Oregon. What does change under the proposed rules, is that, for importers who deal exclusively with finished fuels (ready to go into a vehicle) - and my assumption is that the retail stations you’re talking about fall into this category - while they still need to register, all they need to keep records for are things they should already be keeping track of already:
· transaction id number,
· type of transaction,
· volume imported,
· name and fein of the transferor and recipient, and
· whether the fuel is exempt or exported. If they can’t do the last two things, then the default is that all volumes get included.
They no longer have to report on fuel pathway, physical pathway, approved carbon intensity, or biofuel producer information.
The issue of the definition of “importer” was discussed extensively during the advisory committee (and the pros and cons are all captured in DEQ’s final report.) I’ve included the rationale here so you can view it easily:
· Consistency with ODOT fuels tax and DEQ’s greenhouse gas reporting rules was an important consideration in choosing regulated parties. DEQ’s research and discussion with stakeholders showed that the entities that must adhere to the standard needs to be different than the entities regulated under ODOT fuels tax and DEQ’s greenhouse gas reporting rules for the following reasons.
· Ideally, the point of regulation is upstream to minimize the compliance population. DEQ’s proposal is the only proposal that initially regulates upstream entities (that is, producers and importers responsible for gasoline and diesel transportation fuels), rather than downstream distributors and fueling stations. Downstream regulation would occur if the regulated party was the person paying the ODOT fuels tax. In addition, ODOT fuels taxpayers will not necessarily know the carbon intensity of the biofuels they purchase, but the importer will.
· The low carbon fuel standards exemptions do not align with ODOT fuels tax payers. None of the other reporting requirements consider lifecycle emissions. Non-road fuels are not covered under ODOT’s tax program, but are included in the low carbon fuel standards. For greenhouse gas reporting, different reporters and emission quantification methods are involved.
· Although DEQ’s proposal allows some transfer of compliance obligation down the chain of owners, it does not always go down to the level of ODOT fuels tax. It is important that the compliance obligation reside with entities that have control over the type and carbon intensity of imported fuel. Allowing the transfer of the compliance obligation also increases flexibility in the regulation and decreases compliance costs.
· A stakeholder subgroup explored the option of exempting small gas stations. But some participants felt strongly that small gas stations should not be exempt from the low carbon fuel standard because of fairness issues. Under DEQ’s proposal, small importers would have compliance obligation for fuel they import, but could refuse compliance obligation for fuel bought in Oregon. This flexibility gives small gas stations with limited resources the ability to manage participation in the low carbon fuel standard for all of the fuel they buy. Small gas stations could also avoid becoming a regulated party by only taking possession of fuel when it is delivered to their facility.
The last bullet touches upon the issues related to the retail stations and some of the options considered. Specifically, the proposed rule changes aims to reduce the amount of recordkeeping and reporting and also eliminates the concept of “transferring the compliance obligation” which could also impact the retail stations. The last sentence is also still a valid option.
Thanks for taking a look at this…your input is valuable to me. If you have any specific ideas about how to address your issues in the context of the advisory committee’s decisions, I am all ears. And obviously, what we’re talking about here now is implementation of the current program which only applies to registration, recordkeeping and reporting. We’re really trying to streamline the process to identify the regulated parties and collect information to be used by decision makers in future discussions. When/if those additional discussions occur, then broader issues like changing the definition of importer could be addressed, especially in the context of the market’s ability to meet the standards statewide.
Cory-Ann Wind
Air Quality Planner
503-229-5388
From: Ralph Poole [mailto:ralph@campopoole.com]
Sent: Wednesday, October 09, 2013 10:55 AM
To: OregonCleanFuels
Subject: RE: Proposed changes to the Oregon Clean Fuels Program
Hi Cory-Ann,
I’m still not sure I understand your definition of Importer. It appears the way I read it, you still include any service station as an Importer because they could be the first to own in a storage tank. I think it would be a lot simpler to define Importer and the entity that owns the product when it crosses the state line. No matter whether in a truck, pipeline or rail car.
Ralph
Ralph Poole
P.O. Box 309
87 SE 7th Avenue
Ontario, OR 97914
Phone (800) 653-4125
Cell (208) 739-3028
From: OregonCleanFuels [mailto:OregonCleanFuels@deq.state.or.us]
Sent: Monday, October 07, 2013 11:52 AM
To: WIND Cory Ann
Subject: FW: Proposed changes to the Oregon Clean Fuels Program
Dear Registered Party,
This is just a reminder that you have until 5:00 pm on Friday, October 11th to send me your feedback on the proposed rules.
Note: The initial e-mail below went to just the primary contacts listed when you submitted your registration applications. This e-mail includes the secondary and other contacts in addition to the primary contacts.
As always, please let me know if you have any questions.
Cory-Ann Wind
Air Quality Planner
503-229-5388
From: OregonCleanFuels
Sent: Monday, September 30, 2013 3:01 PM
To: WIND Cory Ann
Cc: COLLIER David
Subject: Proposed changes to the Oregon Clean Fuels Program
Dear Registered Party,
Thank you all for your participation as DEQ completes the registration process and continues to develop the recordkeeping and reporting tools for the Oregon Clean Fuels program. Working with you has helped me identify what works and what doesn’t and what needs improvement. Based on information gathered so far, DEQ is proposing some modifications that include:
· Clarify definitions
· Make the rules consistent with the recordkeeping and reporting tools
· Update the look-up tables
· Focus the administrative requirements to the most critical parts of the program
The current plan is for the modifications to be proposed at the Environmental Quality Commission’s meeting in December 2013 through a temporary rulemaking, so that they can be in place prior to the first annual report due date of April 30, 2014. A permanent rulemaking would follow at the June 2014 meeting. The objective of the rulemaking is to eliminate unnecessary requirements and reduce the burden on smaller businesses participating in the program.
Attached to this e-mail are a factsheet that provides the context and process for the proposed changes and the redline-strikethrough version of the draft rules. Please contact me at OregonCleanFuels@deq.state.or.us or 503-229-5388 if you have any questions. If you have any feedback, please do so by 5:00 pm Friday, October 11, 2013.
Cory-Ann Wind
Air Quality Planner
503-229-5388