[135]*135GRABER, J.
This case is before us on review from a Final Order of the Energy Facility Siting Council (EFSC), certifying a proposed natural gas facility near Hermiston to generate electricity.1 For the reasons that follow, we affirm EFSC’s Final Order.
PROCEDURAL, LEGISLATIVE, AND REGULATORY BACKGROUND
Petitioners challenge the validity of OAR 345-23-010(2), the rule under which EFSC was considering the site certification, in three ways:
“Number one, [the rule] is inconsistent with the energy policy expressed in ORS, Chapter 469. Two, Senate Bill 1016 of 1993 does not authorize the Energy Facility Siting Council to adopt such a rule. And three, such a rule was adopted without compliance with applicable rule-making procedures.”2
In order to address the specific challenges that petitioners raise, we start with a brief description of the legislative and regulatory context, which will be explored more fully later in the opinion.
ORS 469.510 (1991) pertinently required that EFSC “shall set standards and promulgate rules” for the siting of energy facilities; subsection (5) directed that the standards and rules “shall take into account” present and future needs for power. In October 1992, EFSC adopted OAR 345-23-020, which provides standards under which applicants must'demonstrate a need for the power from the proposed facility. At the same time, EFSC also adopted OAR 345-23-010, which exempts applicants for specified megawatt levels of power from having to demonstrate compliance with the need-for-power standard stated at OAR 345-23-020. The October 1992 rules were adopted after public hearing, with EFSC having [136]*136before it data on resource needs, and provided with respect to the type of natural gas facilities at issue here:
“Natural gas fired facilities with a fuel chargeable to power heat ratio of 8000 Btu/kWh or less shall be exempt from the requirement to demonstrate need if all but 20 percent of the capacity will be used by energy suppliers operating in the Pacific Northwest Region as defined in 16 U.S.C. 839a.(14), unless the capacity of natural gas fired facilities for which applications are pending before the Council, including the proposed facility, plus extant site certificates for natural gas fired facilities exceeds 950 megawatts at the time the application is filed.” OAR 345-23-010(2) (1992).
Two applications for new natural gas facilities, each within the definition of facilities covered by OAR 345-23-010(2), were complete as of June 11,1993. One was for the facility near Hermiston involved in this proceeding, with an output power capacity of 474 megawatts. The other was for a plant in Boardman, with an output power capacity of 462 megawatts. The two applications totaled 936 megawatts of output power capacity. No other applications for natural gas facilities, within the definition of facilities covered by OAR 345-23-010(2), were complete.
The 1993 Legislative Assembly enacted Senate Bill 1016, effective August 2, 1993. Or Laws 1993, ch 569. That law replaced ORS 469.510 (1991), among other provisions. ORS 469.501(1) (which is § 22 of SB 1016), like its predecessor, ORS 469.510 (1991), provides that EFSC “shall adopt standards for the siting” of energy facilities and directs that the standards shall take into account, among other things, the need for the facility, consistent with state energy policy. (See post, 320 Or at 151, for a more complete statement of the text of ORS 469.501(1).) ORS 469.501(2) (which is also part of § 22 of SB 1016) provides:
“The [Energy Facility Siting Council] may adopt exemptions, except for coal or nuclear power plants, from any need standard adopted under subsection (1)(L) of this section if the exemption is consistent with the state’s energy policy set forth in ORS 469.010,469.190 and 469.310 and the council’s consideration of the implementation of the strategy prepared under ORS 469.060 for reducing the emission of gases that contribute to global warming.”
[137]*137On August 13, 1993, 11 days after SB 1016 became law, EFSC adopted temporary rules that readopted many of its siting rules and amended others. The general need-for-power standard, set out in OAR 345-23-020, was amended in terms that reflected the need-for-power phrasing of the newly enacted ORS 469.501. The exemption from having to demonstrate need for power in applications for natural gas-fired facilities, stated in OAR 345-23-010(2), also was amended by the August 1993 temporary rule. That amendment to the October 1992 rule, with additions italicized and deletions in brackets, provided:
“Natural gas fired facilities with a fuel chargeable to power heat ratio of 8000 Btu/kWh or less for which applications have been determined to be complete under OAR 345-21-030 on or before August 13, 1993 shall be exempt from the requirement to demonstrate need if all but 20 percent of the capacity will be used by energy suppliers operating in the Pacific Northwest Region as defined in 16 U.S.C. 839a.(14)[, unless the capacity of natural gas fired facilities for which applications are pending before the Council, including the proposed facility, plus extant site certificates for natural gas fired facilities exceeds 950 megawatts at the time the application is filed].”
The August 1993 temporary rule had the practical effect of exempting the applications for the plant near Hermiston and the plant in Boardman from having to demonstrate a need for their power.
In December 1993, EFSC issued a notice of intended action, stating that it intended to adopt the temporary rules as permanent rules. A rulemaking hearing was held on January 18,1994. The hearings officer then submitted a report to EFSC, and EFSC adopted the rules on January 25,1994. The 1994 permanent rules are the same as the 1993 temporary rules.
On January 31, 1994, a contested case proceeding concerning the siting of the plant near Hermiston commenced. On March 11, 1994, EFSC issued a Final Order, granting the site certificate. Within the statutory 60-day period for bringing such a challenge, petitioners, who had [138]*138participated in the siting proceeding, filed their challenge to the order in this court.3
THE STATEMENT OF FISCAL IMPACT
ORS 183.335(2)(b)(E) requires an agency promulgating a rule to include with its notice of intended action
“[a] statement of fiscal impact identifying state agencies, units of local government and the public which may be economically affected by the adoption, amendment or repeal of the rule and an estimate of that economic impact on state agencies, units of local government and the public. In considering the economic effect of the proposed action on the public, the agency shall utilize available information to project any significant economic effect of that action on businesses which shall include a cost of compliance effect on small businesses affected.” (Emphasis added.)
Petitioners first assert that the statement of fiscal impact that EFSC included, pursuant to ORS 183.335-(2)(b)(E), in its notice of intended rulemaking for the 1994 amendment is deficient and that the defect requires invalidation of the rule under which this application for a site certificate was approved. A materially deficient statement of fiscal impact that accompanies a notice of intended action in a rulemaking proceeding can result in the invalidation of the rule that ultimately is enacted. ORS 183.335(2)(b)(E); Dika v. Dept. of Ins. and Finance, 312 Or 106, 111, 817 P2d 287 (1991).
In this case, the proposed rule amended the 1992 rule. ORS 183.335(2)(b)(E) requires, therefore, that EFSC have included with its notice of intended action in the amendment process a statement of fiscal impact that (1) identifies persons and entities that may he economically affected by the amendment to the 1992 rule and (2) estimates the economic impact of the amendment to the 1992 rule on those persons and entities.
The statement of fiscal impact that EFSC included with its notice of intended action stated:
“Fiscal and Economic Impact: Permanent adoption of the temporary rules is expected to have no fiscal impact on most [139]*139applicants for energy facility site certificates. The proposed rules implement changes to EFSC jurisdiction as required by the new statute, clarify the requirement to show need for power for new energy facilities, and allow an exemption from the need standard for applicants whose applications were filed before August 13, 1993. The cost of preparing and reviewing applications for energy facilities site certificates is not expected to change significantly.”
EFSC consistently has characterized the 1994 amendment to the 1992 rule as one that produces no substantive change in the need-for-power exemption in the rule. EFSC asserts that the 1992 rule determined that there was a need for at least 950 megawatts of power produced by natural gas and that the 1992 rule therefore exempted applications from having to demonstrate need unless and until 950 megawatts of power produced by natural gas existed or had been applied for or approved.
In August 1993, according to EFSC, the only two pending applications for natural gas facilities amounted to a total of 936 megawatts.4 EFSC asserts that the August 1993 temporary rule and its 1994 permanent counterpart merely had the effect of changing the previous exemption of 950 megawatts to an exemption of 936 megawatts by limiting the exemption to the two pending applications. Such a change, EFSC asserts, could have no material fiscal impact. EFSC thereby justifies the 1994 statement of fiscal impact as a complete and accurate assessment of the fiscal effect of the change in the rule, including an accurate description of the change in the need-for-power exemption. EFSC asserts that ORS 183.335(2)(b)(E) requires no more than that.
As previously stated, ORS 183.335(2)(b)(E) requires EFSC, with its notice of intended action, to identify and state the fiscal impact of a proposed amendment to the preexisting rule. We agree with EFSC that, if the 1994 proposed rule amendment did no more than restate in other terms the preexisting 950-megawatt exemption for applications to demonstrate need for power, then the statement of fiscal impact was adequate.
[140]*140Petitioners assert, however, that the 1994 amendment had the effect of increasing the level of the 1992 exemption, by grandparenting-in two applications for natural gas power generation that, together, exceed 950 megawatts. That contention hinges on petitioners’ assertion that the 1992 rule exempted 950 megawatts of “nameplate” or “nominal” generating capacity and that the two applications here totaled 1,004 megawatts of nameplate capacity. EFSC’s primary response is that the 1992 rule exempted 950 megawatts of “net” or “output” generating capacity and that the two applications here totaled 936 megawatts of output capacity.
For purposes of the discussion in this case, the generating plants at issue have two different ratings of generating capacity. One is the total generating capacity — the sum of the electricity that the plant can bring for sale to the power grid plus the electricity required to operate the plant — and is referred to as the nominal or nameplate capacity. The other rating consists solely of the power that the plant can bring for sale to the power grid, referred to as the plant’s net capacity or output capacity.5 In this instance, the total nameplate capacity of the two proposed plants is 1,004 megawatts, and their total output capacity is 936 megawatts.
The threshold legal inquiry is whether the 1992 rule exempted 950 megawatts of nameplate capacity or 950 megawatts of output capacity. If the 1992 rule exempted 950 megawatts of nameplate capacity, then the 1994 amendment effectively raised the need-for-power exemption for natural gas-fired facilities to 1,004 megawatts of nameplate capacity.
Our review in this case is to determine whether EFSC “has erroneously interpreted a provision of law,” pursuant to ORS 183.482(8)(a), made applicable to this proceeding by ORS 469.403(6). We hold that EFSC did not erroneously conclude that the 1992 rule exempted 950 megawatts of output capacity and that the 1994 amendment did not, therefore, raise the level of the 1992 exemption.6
[141]*141The 1992 rule pertinently exempted applications for certain defined natural gas-fired facilities7 from having to demonstrate need for power
“unless the capacity of natural gas fired facilities for which applications are pending before the Council, including the proposed facility, plus extant site certificates for natural gas fired facilities exceeds 950 megawatts at the time the application is filed.” OAR 345-23-010(2) (emphasis added).
The emphasized text, which does not refer expressly either to nameplate capacity or to output capacity, but rather only to “capacity,” is the text at issue.
The statutes and rules defining nominal and nameplate capacity are definitional only and are worded to have no independent substantive effect. ORS 469.020(10), ORS 469.300(15), OAR 345-01-010(15) and (17), OAR 345-01-100(1). Similarly, the rule that defines the term “net electric output,” OAR 345-23-000(4) (meaning “the electric energy or capacity made available for use excluding electricity used in the production of electrical energy”), is definitional only and also is worded to have no independent substantive effect. As a result, those rules and statutes do not expressly inform us what EFSC meant in 1992 when it used the unmodified term megawatt “capacity” — without either of the descriptive qualifiers, “nominal” or “output” — to set the level of the natural gas need-for-power exemption.
Instead, the text of the 1992 rule setting a need-for-power exemption in terms of a “capacity” of 950 megawatts, read in its context, plausibly could mean either “nominal capacity” or “output capacity.” Moreover, the statute pursuant to which EFSC adopted the 1992 rule permitted either meaning. Petitioners do not argue that the statute pursuant to which EFSC adopted the 1992 rule required that the level of a natural gas need-for-power exemption be expressed in terms of nominal capacity, as distinct from output capacity. That statute, ORS 469.510 (1991), required EFSC to adopt standards and promulgate rules for siting energy facilities, including the type of facility at issue in this case. Subsection (5) of that statute also directed that the standards and rules [142]*142“shall take into account * * * [p]resent and future industrial, commercial and residential power needs by classes and amount for each class.” Indeed, a standard that takes into account the needs of users of power corresponds more logically to output capacity, which represents an energy generating facility’s ability to deliver power to those whose needs may be served.
We have concluded thus far that the express provisions of the 1992 rule, read in context, permit either meaning of “capacity” in the 1992 rule and that either reading is consonant with the enabling legislation. EFSC interpreted the 1992 rule to refer to output capacity.
The question thus becomes: When an agency’s interpretation of its own rule is consistent with the wording of that rule, considered in its context, and when no other source of law establishes that the agency’s interpretation of the rule is impermissible, what is the result of judicial review of that interpretation of the agency’s rule under ORS 183.482(8)(a)?
As noted, this court is authorized to overrule an agency’s interpretation of a rule if an agency has “erroneously interpreted a provision of law.” ORS 183.482(8)(a). In this case, the “provision of law” is the rule itself. Where, as here, the agency’s plausible interpretation of its own rule cannot be shown either to be inconsistent with the wording of the rule itself, or with the rule’s context, or with any other source of law, there is no basis on which this court can assert that the rule has been interpreted “erroneously.” It follows that, in circumstances like those presented here, this court cannot overrule, under ORS 183.482(8)(a), an agency’s interpretation of its own rule.8
In this case, EFSC has taken the position that the 1992 rule refers to 950 megawatts of output capacity. EFSC has not only argued that to this court, but that interpretation [143]*143was the foundation of EFSC’s statement of fiscal impact and the order granting the site certificate. From the first time that it confronted the question by issuing the temporary rule in August 1993 (only 10 months after promulgating the 1992 rule), EFSC has held to the view that the two pending, completed applications exhausted almost all, but not more than, the 950 megawatts of generating capacity exempted from a need-for-power showing under EFSC’s own 1992 rule.9 Observers and participants in the rulemaking process have not been misled, because the ambiguity about the meaning of the term “capacity” in the 1992 rule has always been present, in the proposed rule as well as the adopted rule.
To summarize: The text of the 1992 rule setting a need-for-power exemption in terms of a “capacity” of 950 megawatts, read in context, plausibly could mean either nominal capacity or output capacity. EFSC’s interpretation of its own rule is not inconsistent with the express provisions of the rule, read in its context, or with the rule’s apparent purpose or policy. EFSC’s interpretation also does not place the rule in conflict with a statute.
Applying the pertinent standard of review, ORS 183.482(8)(a), we conclude that EFSC’s interpretation of the term “capacity” in the 1992 rule — that it refers to output capacity rather than nominal capacity — is a permissible interpretation of the rule and, therefore, is not erroneous.
Petitioners also make a number of other arguments about the alleged deficiency of the statement of fiscal impact. For example, they contend that the statement failed to examine the impact of the need-for-power exemption on the public or on business and that the statement did not acknowledge changes wrought by SB 1016 in July 1993 in the categories of [144]*144natural gas-fired facilities exempt from EFSC scrutiny under the need-for-power standard.
As discussed above, the effect of the 1994 amendment of the 1992 rule, with respect to the need-for-power exemption, was simply to modify the exemption limit for certain defined natural gas facilities, in effect, from 950 megawatts to 936 megawatts, in the form of the two pending, complete applications. The statement of fiscal impact related to that change is, therefore, sufficient with respect to the 1994 amendment to the rule. Petitioners’ various arguments pertain to the overall effect of the entire rule or to the effect of SB 1016. Accordingly, petitioners identify items that the statement of fiscal impact for the 1994 amendment was not required to address.
EFSC’S ADVISORY GROUP STATEMENT
Petitioners next assert that EFSC was statutorily required to appoint an advisory committee in making the 1994 rule and that EFSC’s explanation of its decision not to do so was defective. Petitioners assert that those defects in procedure require reversal of EFSC’s order.
ORS 183.025(2) was enacted in 1993. Consistent with its declaration of policy that “whenever possible the public be involved in the development of public policies by agencies and the drafting of rules,” the statute provides:
“The Legislative Assembly encourages agencies to seek public input to the maximum extent possible before giving notice of intent to adopt, amend or repeal a rule. The agency may appoint an advisory committee that will represent the interests of persons likely to be affected by the rule, or use any other means of obtaining public views that will assist the agency in drafting the rule.”
EFSC was not required by ORS 183.025(2) to appoint an advisory committee. The statute provides that an agency “may” appoint such a committee or may instead “use any other means of obtaining public views.” In this instance, EFSC did not appoint an advisory committee with respect to the 1994 amendments to the 1992 rule. EFSC gave notice of the 1994 rulemaking and held a hearing at which the public could appear or submit written comments. Petitioners [145]*145appeared at that hearing. EFSC used sufficient “other means of obtaining public views.” ORS 183.025(2).
In addition, ORS 183.335(2)(b)(F) provides:
“If an advisory committee is not appointed under the provisions of ORS 183.025(2), [the notice of intended rulemaking action shall include] an explanation as to why no advisory committee was used to assist the agency in drafting the rule.”
EFSC’s notice in this case stated: “As there are no policy or technical issues to be resolved in this rulemaking, EFSC does not believe it would be useful to appoint an advisory committee.” EFSC provided the statutorily required “explanation” for its decision not to appoint an advisory committee. No more is required by the law in this instance.
Petitioners’ specific assertions relating to those statutes are not well taken.
THE ROLE OF THE HEARINGS OFFICER AT THE RULEMAKING
At the rulemaking hearing, the Oregon Department of Energy (ODOE) advocated the proposed amendment to the rule in testimony by Carver, an employee of ODOE. The hearings officer for the rulemaking hearing was also an ODOE employee, Grainey. Petitioners assert that those roles of ODOE employees constitute a “defect” in the proceeding, compounded by the fact that Grainey submitted written recommendations to EFSC and that Grainey assertedly did not convey to EFSC the written testimony of petitioners before EFSC adopted the amendment. Petitioners do not assert that Grainey harbored actual bias.
With the exception of the specific claim as to the effect of the alleged failure to convey the written testimony of petitioners to EFSC, petitioners cite — and we are aware of — no rule, statute, constitutional provision, or principle articulated in decisional law for their claim that EFSC cannot appoint an ODOE employee to act as a hearings officer in a rulemaking if another ODOE employee testifies at the rulemaking hearing.
We turn, then, to consider petitioners’ remaining assertion, that the hearings officer was required to convey to [146]*146EFSC their entire written testimony verbatim in the rulemaking to satisfy the statutory mandate that “[t]he agency shall consider fully any written or oral submission.” ORS 183.335(3)(a). In this instance, EFSC appointed a hearings officer to conduct the rulemaking. The hearings officer had, and considered fully, petitioners’ verbatim testimony. The hearings officer, consistent with the procedural rules for the rulemaking (OAR 137-01-030(1), OAR 137-01-040(2)), provided a written report and recommendation to EFSC that included a summary of petitioners’ testimony. The hearings officer again summarized that testimony orally to EFSC in a conference call attended by petitioners.
By requiring an agency to “consider fully any written or oral submission” in a rulemaking, ORS 183.335(3)(a) does not thereby preclude an agency from appointing a hearings officer to conduct the rulemaking proceeding for the agency and to summarize the record of the rulemaking for the agency to consider when making its decision. Indeed, petitioners do not challenge the statutory or regulatory authority of an agency to appoint a hearings officer to conduct a rulemaking hearing and to make a report and recommendation to the agency.
“Full” agency consideration of a submission does not require — by its terms or by necessary implication — that the original submission, whether written or oral, actually be in front of the agency itself when it makes its decision. The agency certainly may look to the submissions in their original form if the agency deems it necessary to ensure that the submissions have been “considered] fully,” e.g., if the agency is not satisfied with its hearings officer’s summary, or if the agency deems the nature of the testimony to be particularly important and wants more than a summary of it, or if a party calls into question the accuracy of the summary and the question of accuracy requires resolution. But the statute does not require that all the original testimonial submissions physically be included in the record before the agency when it makes its decision.
It bears further note that, even if the statute requiring “full consideration” were deemed to require physical conveyance of all testimonial submissions, the same statute requires only “substantial compliance” with its provisions. [147]*147ORS 183.335(10)(a). Neither during the rulemaking hearing nor in their post-hearing brief in the contested case proceeding did petitioners assert that the hearings officer failed to consider fully their testimony or that the hearings officer failed to summarize their testimony accurately in his written and oral reports to EFSC.10 Under those circumstances, even if petitioners were correct with respect to the requirements of the law, they cannot establish that the procedure employed by EFSC failed to comply substantially with the requirement that the agency fully consider petitioners’ submissions.
It is sufficient, for purposes of the challenge based on ORS 183.335(3)(a) in this case, that the hearings officer appointed by EFSC “considered] fully” petitioners’ submissions in their original form and that the hearings officer’s reports summarized that testimony for EFSC to consider. The rulemaking was not invalid for failure to comply with ORS 183.335(3)(a) in the manner argued by petitioners.
THE VALIDITY OF THE REGULATORY NEED EXEMPTION
A. The rule exemption is authorized by statute.
Petitioners assert that the need-for-power exemption for plants with a fuel chargeable to power heat rate of less than 8000 BTU per kilowatt hour, stated in OAR 345-23-010(2), is inconsistent with ORS 469.320(2)(c) and, therefore, is invalid. ORS 469.320(2) (c) exempts cogeneration facilities with a fuel chargeable to power heat rate of not greater than 6000 BTU per kilowatt hour from the site certificate process in its entirety.
[148]*148By contrast with the need-for-power exemption of OAR 345-23-010(2), ORS 469.320(2)(c) provides a different exemption (an exemption from the entire site certificate process) for a different type facility (a cogeneration facility) with a different efficiency rating (6000 BTU/kwh). ORS 469.501 requires EFSC to consider need for power in siting and authorizes EFSC to adopt need-for-power exemptions. There is nothing express or implicit in ORS 469.320(2)(c) that would preclude EFSC from adopting a need-for-power exemption for natural gas facilities of 8000 BTU/kwh or less, pursuant to ORS 469.501. Petitioners seek to have an exemption for apples preclude an exemption for oranges.
B. EFSC was not required to adopt the need-for-power exemption in a contested case proceeding.
Petitioners assert that EFSC was required to adopt the need-for-power exemption in a contested case proceeding rather than by rule. That contention hinges on the assertion that EFSC was required to adjudicate by “order, ’ ’ rather than legislate by “rule,” the need-for-power exemption, because only two identifiable applicants were affected by the amended rule.
ORS 183.310, apart of the APA, defines “order” and “rule”:
“(5)(a) ‘Order’ means any agency action expressed orally or in writing directed to a named person or named persons, other than employees, officers or members of an agency. ‘Order’ includes any agency determination or decision issued in connection with a contested case proceeding.
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‘ ‘ (8) ‘Rule’ means any agency directive, standard, regulation or statement of general applicability that implements, interprets or prescribes law or policy, or describes the procedure or practice requirements of any agency.”
See also Strawberry Hill 4 Wheelers v. Benton Co. Bd. of Comm., 287 Or 591, 602-03, 601 P2d 769 (1979) (in determining whether a quasi-judicial adjudication is required, one “presupposes that [an adjudicatory] process is bound to result in a decision and that the decision is bound to apply [149]*149preexisting criteria to concrete facts,” with further consideration given to “whether the action, even when the governing criteria leave much room for policy discretion, is directed at a closely circumscribed factual situation or a relatively small number of persons”).
The statutes pertinent here consistently have required that EFSC adopt standards for siting and that those standards shall take into account the need for power. ORS 469.510(5) (1991); ORS 469.501(1)(L). EFSC’s original 1992 rule, exempting various levels of different generating sources from having to demonstrate need for power (including the natural gas exemption at issue here), was consistent with the statutory mandate of ORS 469.510 (1991) that EFSC consider need for power in siting and that EFSC “shall set standards and promulgate rules for the siting.”
The need-for-power exemption for natural gas-fired facilities, first stated in 1992 and then restated in essentially the same terms in 1993 and 1994, constitutes a “standard, regulation or statement of general applicability that implements, interprets or prescribes law or policy,” that is, a “rule.” ORS 183.310(8). The 1992 rule was not directed at an individual party and thus was not an “order.” ORS 183.310(5). Similarly, under the criteria announced in Strawberry Hill 4 Wheelers for determining whether an agency action requires adjudication, the 1992 rule was not by its nature an adjudicatory action by the agency, wherein the agency was bound to apply preexisting criteria to a concrete set of facts and produce a decision.
EFSC amended and restated the 1992 rule, in essentially the same terms, in its rules promulgated in 1993 and 1994. Those amendments did not transform the rulemaking enterprise into an “order,” requiring the trappings of an adjudication, merely because the amendments recognized that the two existing applications eligible for the exemption, in total, had all but exhausted the 950-megawatt exemption level set by the 1992 rule.
Whether one applies the APA definitions of “order” and “rule” or the guidelines for recognizing an adjudication pursuant to Strawberry Hill 4 Wheelers, one reaches the same conclusion. EFSC’s regulatory decisions to adopt need-for-[150]*150power exemptions and to set various levels of those exemptions for different types of generation sources (including the exemptions for specific megawatts of natural gas-fired generating capacity), are characteristic exercises of rulemaking authority. Cf. Forelaws on Board v. Energy Facility Siting Council, 306 Or 205, 214, 760 P2d 212 (1988) (recognizing EFSC’s broad authority to adopt rules for the siting of generating facilities and concluding that there is a “strong inference of legislative intent that the agency exercise its policymaking in rulemaking proceedings rather than in the course of deciding contested cases”); Marbet v. Portland General Electric, 277 Or 447, 462-63, 561 P2d 184 (1977) (“where the statute entrusts choices between alternate policies to [EFSC], its directive to adopt standards calls for agency articulation of these choices, and the procedures for public participation [in a rulemaking] take the place of the legislative forum”). Contrary to petitioners’ assertions, the law does not require that the exemption-setting exercise undertaken by EFSC have been conducted in an adjudicatory or contested case proceeding.
C. Petitioners did not preserve a claim that EFSC’s rulemaking was not supported by substantial evidence or substantial reason.
Petitioners’ opening brief asserts that EFSC’s rule-making was not supported by substantial evidence or substantial reason. EFSC vigorously disputes that the 1994 rulemaking is subject to any such requirements.
EFSC additionally points out that petitioners’ claims of error are not within those covered by petitioners’ stipulation to the limited scope of their preserved challenges to the rule and the rulemaking,11 and that petitioners fail to cite a place in the record demonstrating that they preserved the claims of error, in violation of ORAP 5.45.12 Petitioners [151]*151candidly acknowledge in their reply brief that their stipulation “ appear [s] to preclude” the issues raised in this court related to lack of substantial evidence and substantial reason. We agree.
D. The need-for-power exemption is not inconsistent with the mandates of the statutes relating to its adoption.
ORS 469.501(1) directs EFSC to adopt standards for the siting of energy facilities and provides that the standards “shall take into account at least” 12 listed items. The final item in the list is paragraph (L), which is:
“The need for the proposed facility, consistent with the state energy policy set forth in ORS 469.010, 469.190 and 469.310. In adopting the need standard, the council shall consider all of the costs of the emission from energy facilities of gases that contribute to global warming. The standard for need shall include but need not be limited to the following: [listing a number of items, including for example the treatment to be accorded proposed facilities similar to those identified in local energy plans].”
ORS 469.501(2) provides:
“The council may adopt exemptions, except for coal or nuclear power plants, from any need standard adopted under subsection (1) (L) of this section if the exemption is consistent with the state’s energy policy set forth in ORS 469.010, 469.190 and 469.310
Thus, the need-for-power standard must take into account the state’s energy policy and must consider the costs of emissions of gases that contribute to global warming. EFSC may also adopt exemptions from that need-for-power standard, if the exemption is consistent with the state’s [152]*152energy policy and EFSC’s consideration of the implementation of the ODOE strategy for reducing the emission of gases that contribute to global warming.
Petitioners assert that the rule exempting the facility at issue here from the need-for-power standard is “inconsistent with the Oregon Legislature’s energy policy, set forth in ORS Chapter 469.” Although arising in the context of a contested case proceeding, this is a challenge to the validity of the rule as adopted, on the ground that it exceeds the agency’s statutory authority. ORS 183.400(4)(b). In such a challenge to the validity of a rule, the court does not consider how the rule is being applied, nor does the court consider factual allegations that might affect the validity of the rule. See AFSCME Local 2623 v. Dept. of Corrections, 315 Or 74, 79, 843 P2d 409 (1992) (so holding). See also ORS 183.335(12) (“Unless otherwise provided by statute, the adoption, amendment or repeal of a rule by an agency need not be based upon or supported by an evidentiary record.”).
There is no requirement in ORS chapter 469 or in ORS chapter 183 that a rule providing for a need-for-power exemption (or a need-for-power standard, for that matter) on its face recite the agency’s underlying consideration of the state’s energy policy or the effect on emissions of gases that cause global warming. The need-for-power exemption provided by OAR 345-23-010(2) is not “inconsistent” with any statutory requirement in this respect.
ORS chapter 469 does require, however, that EFSC, in setting a need-for-power standard and in adopting exemptions from that standard, actually have considered the state’s energy policy, including “all of the costs of the emission from energy facilities of gases that contribute to global warming,” ORS 469.501(1)(L), and “the implementation of the strategy prepared under ORS 469.060 for reducing the emission of gases that contribute to global warming,” ORS 469.501(2). The record demonstrates that EFSC did so in promulgating OAR 345-23-010(2). EFSC’s Final Order in the present case accurately summarizes that record as follows:
“EFSC held a rulemaking hearing in which applicant, [petitioners] and ODOE submitted materials related to the emissions of C02, global warming, least cost plans, conservation and renewable resources, and the state’s energy policy.
[153]*153After the hearing, EFSC issued an order which adopted the need exemption rule. The order contained EFSC’s findings of fact, reasoning and conclusions of law.
“In its findings, EFSC explained the way the ‘need rule addresses these costs’ of emission of gases that contribute to global warming. (Finding #2). EFSC then found that a benchmark of ‘stabilizing C02 emissions at the 1990 level’ has been adopted. (Finding #4). The need exemption rule is for ‘unlimited amounts of high efficiency cogeneration and limited amounts of renewable resource and efficient * * * natural gas facilities,’ and these ‘facilities emit less C02 than new or existing coal or oil plants and existing natural gas plants.’ (Finding #5). EFSC further found that ‘the Northwest Power Planning Council’s regional energy plan and Oregon utility’s least cost plans filed with [the Public Utility Commission] indicated a need for approximately 950 megawatts of low cost natural gas resources in addition to energy conservation and renewable resources.’ (Finding #8).
“In its conclusions of law, EFSC adopted ‘the reasoning and conclusions of the hearing officer as expressed in his report of January 19, 1994.’ (Concl. #1). As part of his reasoning, the hearing officer, in effect, explained the relationship between EFSC’s findings of fact and the conclusions of law on the costs of emissions, the consistency of the exemption rule with the state’s energy policy and consideration of the implementation of the strategy on global warming. (HO Rep. 2-7).” (Ellipsis in original.)
OAR 345-23-010(2), which sets a need-for-power exemption level for natural gas-fired facilities, is not facially inconsistent with ORS 469.501, which directs EFSC to adopt standards that take account of need for power and which authorizes EFSC to adopt exemptions from the need-for-power standard.
CONCLUSION
We have considered and rejected each of the assignments of error advanced by petitioners. The Final Order of the Energy Facility Siting Council is affirmed.
The order is affirmed.
13 The ‘ ‘state’s energy policy” under the three identified statutes is an amalgam of various goals, exhortations, declarations, and statements of policy both narrow (e.g., policy to encourage conservation by providing tax relief to facilities that conserve energy resources or use renewable resources, ORS 469.190) and broad (e.g., policy that siting of energy facilities “shall be accomplished in a manner consistent with the protection of the public health and safety and in compliance with the energy policy and air, water, solid waste, land use and other environmental policies of this state,” ORS 469.310).