(1) No later than 30 calendar days before the commencement of a compliance period, the Department of Environmental Quality shall issue an order declaring a forecast deferral if the fuel supply forecast developed under ORS § 468A.272 projects that the amount of credits that will be available during the forecast compliance period will be less than 100 percent of the credits projected to be necessary for regulated parties to comply with the scheduled applicable low carbon fuel standard for the forecast compliance period.

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(2) An order declaring a forecast deferral under this section must set forth:

(a) The duration of the forecast deferral;

(b) The types of fuel to which the forecast deferral applies; and

(c) Which of the following methods the department has selected for deferring compliance with the scheduled applicable low carbon fuel standard during the forecast deferral:

(A) Temporarily adjusting the scheduled applicable low carbon fuel standard to a standard identified in the order that better reflects the forecast availability of credits during the forecast compliance period and requiring regulated parties to comply with the temporary standard;

(B) Requiring regulated parties to comply only with the low carbon fuel standard applicable during the compliance period prior to the forecast compliance period; or

(C) Suspending deficit accrual for part or all of the forecast deferral period.

(3)(a) In implementing a forecast deferral, the department may take an action for deferring compliance with the low carbon fuel standard other than, or in addition to, selecting a method under subsection (2)(c) of this section only if the department determines that none of the methods under subsection (2)(c) of this section will provide a sufficient mechanism for containing the costs of compliance with the low carbon fuel standards during the forecast deferral.

(b) If the department makes the determination specified in paragraph (a) of this subsection, the department shall:

(A) Include in the order declaring a forecast deferral the determination and the action to be taken; and

(B) Provide written notification and justification of the determination and the action to:

(i) The Governor;

(ii) The President of the Senate;

(iii) The Speaker of the House of Representatives;

(iv) The majority and minority leaders of the Senate; and

(v) The majority and minority leaders of the House of Representatives.

(4) The duration of a forecast deferral may not be less than one calendar quarter or longer than one compliance period. Only the Environmental Quality Commission may terminate, by order, a forecast deferral before the expiration date of the forecast deferral. Termination of a forecast deferral is effective on the first day of the next calendar quarter after the date that the order declaring the termination is adopted. [2017 c.750 § 164]