Oregon’s Clean Fuel Program (CFP) FAQs

The CFP was established in 2016 and has been modified several times, most recently in late 2022. Low carbon fuel use is increasing, and fuel producers are taking action to decrease the CI of their fuels. The current program targets continue to increase annually through 2035. After 2035, the final CI target that represents a 37% reduction must continue to be met. There are currently no planned changes to the program.

Producers of fuels with CIs that are lower than the annual standard generate credits, while producers that produce fuels with CIs higher than the annual standard generate deficits. Credits can be sold to deficit holders, creating a credit market. The revenue generated from the sale of those credits can then be further invested into projects that lower greenhouse gas emissions. The sale of credits provides a financial incentive for fuel suppliers to source and supply the lowest carbon fuels to customers in Oregon.

There are a wide variety of vehicle and fuel applications that can generate credits. Any vehicle that would most commonly be using fossil fuels but is instead using a fuel with a lower carbon intensity (CI) can generate credits. Electric transportation applications are a common source of LCFS credits. Examples of electrified vehicle credit generation opportunities include:

• Battery electric and hydrogen fuel cell electric forklifts
• Passenger Cars via EV campus charging and public DC Fast Charging
• Electric buses and shuttles
• Electric Yard trucks/tractors and other off road cargo handling equipment
• Electric cargo handling equipment
• Electric cargo and delivery vans and box trucks
• Battery and hydrogen fuel cell electric medium and heavy duty trucks and tractors
• Shore powered refrigerated trailers run on electricity

Yes, the CFP program applies to any transportation fuel that is sold, supplied, or offered for sale in Oregon. However, other states have similar market-based incentive programs that allow credits to be generated via the use of low carbon fuels.

For utilities and certain non-profit organizations that participate in the program, CFP revenue generated from EV charging must be spent to further benefit vehicle electrification. Most entities generating credits do not need to document how credit revenue is spent.

Many low-carbon fuels are eligible to generate credits. Electric vehicle charging using renewable electricity generates credits at the highest rate, but even electric charging using standard grid electricity creates a strong financial return. Other low-CI fuels generating credits include low-CI hydrogen, ethanol, biodiesel, renewable diesel, compressed natural gas and biogas (CNG), and liquefied natural gas and biogas (LNG).

3Degrees specializes in helping our partners maximize the value available through the program for the use of electricity and low-CI hydrogen, as well as helping owners of public charging and hydrogen fueling infrastructure generate and sell credits.

For EV charging, matching electricity dispensation with high quality renewable energy certificates can significantly increase CFP revenues by substantiating lower CI electricity than the grid. Lower carbon power can also come from onsite renewable sources, like solar panels.

Another key component of maximizing CFP value is aggregating credits. Entities generating a small number of credits may need to take a price discount in the market because the standard transaction size is thousands of credits. Working with a partner can improve selling power and ensure maximum credit revenue is realized quickly.