Oregon's emissions-limiting program returns after being struck down by appeals court

PORTLAND, Ore. (KOIN) — Oregon’s Climate Protection Program is set to make a comeback about a year after an appeals court determined it was invalid.

The program the Environmental Quality Commission approved on Thursday will impose limits on the greenhouse gas emissions brought on by fossil fuel companies, like NW Natural and Cascade Natural Gas.

“[The Oregon Department of Environmental Quality] manages the emissions cap by giving out a limited number of free credits to regulated entities, which include fossil fuel suppliers and large manufacturing facilities,” DEQ explained in a release. “Each credit allows one ton of emissions. Each year the cap, and therefore the number of credits given out, declines.”

According to the agency, these restrictions are projected to help the state achieve its goals of reducing emissions by 50% in 2035 and by 90% by 2050.

The program was originally green-lit in December 2021, but the Oregon Court of Appeals struck it down two years later following a lawsuit from stakeholders in the fossil fuel industry. Plaintiffs claimed the commission made errors in its rulemaking process for the program, and the appeals court later agreed it was invalid due to an administrative failure.

In January, DEQ revealed it would not appeal the ruling. The department reported it would spend the first quarter of the year reinstating the program through an updated rulemaking process.

The amended rules establish that the agency will work alongside the Oregon Public Utilities Commission to determine whether the program is significantly increasing customers’ gas bills. The environmental quality department will also monitor whether Community Climate Investment projects align with its efforts to reduce greenhouse gas emissions.

Starting in 2025, fossil fuel companies will have three years to show they are in compliance with the terms of the program. The second compliance period will run from 2028 to 2029.

“Oregon is committed to acting boldly and consistently to do our part to protect our climate,” Gov. Tina Kotek said in a statement. “The Climate Protection Program will keep polluters accountable and fund community investments that will reduce greenhouse gas emissions in Oregon.”

In addition to CPP, the state has also banned the sale of new gas-powered vehicles starting in 2035. Oregon recently reached a milestone in this goal, announcing there were more than 100,000 registered electric vehicles as of mid-November.