Oregon restores signature Climate Protection Program to cut greenhouse gases
The Oregon Department of Environmental Quality has reinstated the state’s signature Climate Protection Program that a court last year had invalidated over a technicality.The program requires ever-increasing reductions in greenhouse gas emissions from the state’s natural gas utilities, suppliers of gasoline, diesel, kerosene and propane and large industrial plants.It originally went into effect in January 2022, but Oregon’s three gas utilities, an oil-industry group and a dozen other local trade organizations challenged the program’s rules, aiming to block them. The court struck it down last December.The program’s new version, adopted unanimously Thursday by the Environmental Quality Commission, the DEQ’s governing body, is of similar scope and ambition as the original one. It will launch in January.Fossil fuel suppliers and industrial manufacturers will still be expected to, as a whole, reduce greenhouse gas emissions 50% by 2035 and 90% by 2050. State regulators said the program is critical to meeting Oregon’s goals to reduce carbon dioxide and methane emissions.Emissions can be reduced by increased use of biofuels, improvements to energy efficiency, electrification and through future adoption of green technologies that are still in development such as hydrogen. The rules include penalties for noncompliance. The program will still include a Community Climate Investment Fund allowing utilities and companies to buy a limited number of “credits” in place of reducing some of their emissions. The money will be distributed to grassroots organizations throughout the state, with the bulk going to communities of color, tribes and low-income and rural communities that suffer disproportionately from climate change.“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.”The rulemaking process for the new version of the program led to a few minor changes. The most significant concerns large manufacturing plants that previously were required to reduce carbon pollution through the best available emissions reductions approaches.Because they are significant users of natural gas, natural gas utilities were responsible for the plants’ natural gas emission reductions.Those industrial plants will now be regulated directly for their natural gas emissions and the state will develop carbon intensity targets for specific industrial facilities.The change will allow industrial manufacturers more flexibility in choosing how to reduce emissions, said Climate Protection Program manager Nicole Singh, and will prevent relocation of those businesses outside Oregon to places that don’t have comparable emission reduction programs.A second change concerns the impact of the program on natural gas rates. Under the new climate program rules, the DEQ will work with the Oregon Public Utilities Commission to review natural gas rates and customer bills regularly to evaluate whether the emission reduction requirements are having a significant impact on rates, said Singh.Environmental groups praised the program’s reinstatement.“Oregon’s actions today are a beacon of hope,” said Jana Gastellum, executive director of the Oregon Environmental Council, a nonprofit focused on advancing environment-friendly practices. “Every state deserves a program like the Climate Protection Program to not only cut pollution but also generate funds for community projects and business innovation. It’s a win for the people, especially those in frontline communities who’ve long been impacted by climate change.”The groups also said the climate program would help Oregon expand solar and wind farms.“This will help us tackle our biggest pollution sources, improve our air quality and create more clean energy jobs,” said Meredith Connolly, director of policy and strategy at Climate Solutions, a Northwest-based nonprofit focused on clean energy.— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.Our journalism needs your support. Subscribe today to OregonLive.com.
The Oregon Department of Environmental Quality has reinstated the state’s signature Climate Protection Program that a court last year had invalidated over a technicality.
The Oregon Department of Environmental Quality has reinstated the state’s signature Climate Protection Program that a court last year had invalidated over a technicality.
The program requires ever-increasing reductions in greenhouse gas emissions from the state’s natural gas utilities, suppliers of gasoline, diesel, kerosene and propane and large industrial plants.
It originally went into effect in January 2022, but Oregon’s three gas utilities, an oil-industry group and a dozen other local trade organizations challenged the program’s rules, aiming to block them. The court struck it down last December.
The program’s new version, adopted unanimously Thursday by the Environmental Quality Commission, the DEQ’s governing body, is of similar scope and ambition as the original one. It will launch in January.
Fossil fuel suppliers and industrial manufacturers will still be expected to, as a whole, reduce greenhouse gas emissions 50% by 2035 and 90% by 2050. State regulators said the program is critical to meeting Oregon’s goals to reduce carbon dioxide and methane emissions.
Emissions can be reduced by increased use of biofuels, improvements to energy efficiency, electrification and through future adoption of green technologies that are still in development such as hydrogen. The rules include penalties for noncompliance.
The program will still include a Community Climate Investment Fund allowing utilities and companies to buy a limited number of “credits” in place of reducing some of their emissions. The money will be distributed to grassroots organizations throughout the state, with the bulk going to communities of color, tribes and low-income and rural communities that suffer disproportionately from climate change.
“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.”
The rulemaking process for the new version of the program led to a few minor changes. The most significant concerns large manufacturing plants that previously were required to reduce carbon pollution through the best available emissions reductions approaches.
Because they are significant users of natural gas, natural gas utilities were responsible for the plants’ natural gas emission reductions.
Those industrial plants will now be regulated directly for their natural gas emissions and the state will develop carbon intensity targets for specific industrial facilities.
The change will allow industrial manufacturers more flexibility in choosing how to reduce emissions, said Climate Protection Program manager Nicole Singh, and will prevent relocation of those businesses outside Oregon to places that don’t have comparable emission reduction programs.
A second change concerns the impact of the program on natural gas rates. Under the new climate program rules, the DEQ will work with the Oregon Public Utilities Commission to review natural gas rates and customer bills regularly to evaluate whether the emission reduction requirements are having a significant impact on rates, said Singh.
Environmental groups praised the program’s reinstatement.
“Oregon’s actions today are a beacon of hope,” said Jana Gastellum, executive director of the Oregon Environmental Council, a nonprofit focused on advancing environment-friendly practices. “Every state deserves a program like the Climate Protection Program to not only cut pollution but also generate funds for community projects and business innovation. It’s a win for the people, especially those in frontline communities who’ve long been impacted by climate change.”
The groups also said the climate program would help Oregon expand solar and wind farms.
“This will help us tackle our biggest pollution sources, improve our air quality and create more clean energy jobs,” said Meredith Connolly, director of policy and strategy at Climate Solutions, a Northwest-based nonprofit focused on clean energy.
— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.
Our journalism needs your support. Subscribe today to OregonLive.com.