Oregon has unveiled a revised set of regulations aimed at controlling fossil fuel companies and reducing greenhouse gas emissions. The move comes after a previous version of the state’s Climate Protection Program faced a legal setback earlier this year. The Oregon Department of Environmental Quality (DEQ) has made the draft regulations available for public comment until August 30. The state’s Environmental Quality Commission is expected to vote on the final rules by the end of the year. These regulations are designed to meet ambitious targets of reducing greenhouse gas pollution by 50% by 2035 and 90% by 2050. The new rules require fossil fuel companies to decarbonize their energy supplies, shifting towards renewable energy sources, including wind, solar, and biofuels.
In 2021, similar regulations were put forward but faced legal challenges that halted their implementation. The revised regulations have brought heavier scrutiny to companies that consume large amounts of natural gas, not just the suppliers. Cement, fertilizer, and gypsum producers are among those now required to meet new emissions standards. Oregon’s updated plans include a carbon crediting market where companies can offset emissions by investing in renewable energy projects. The revised rules also integrate the Oregon Public Utilities Commission to monitor natural gas rates and prevent cost pass-throughs to consumers.
Expanding the Program
The most significant change to the proposed rules is the inclusion of heavy natural gas users, not just gas suppliers. Companies such as Ash Grove and Georgia Pacific, which deal in cement and gypsum respectively, will now need to comply with new emissions standards. The investment portion of the Climate Protection Program also sees changes, encouraging companies to invest in projects that reduce greenhouse gases. These investments will fund community decarbonization and renewable energy initiatives, potentially generating $150 million a year. Projects eligible for funding include the installation of solar panels, electric vehicle chargers, and home weatherization.
Lawsuit Triggers Redo
The original 2021 Climate Protection Program faced a legal challenge from major natural gas companies. Judges ruled in favor of the gas companies, citing procedural errors by the Environmental Quality Commission. The ruling invalidated the original program, requiring the state to start over. The revised regulations aim to address these legal shortcomings while maintaining the core objectives of the original plan. Companies will now need to meet compliance targets every two years, and they can offset a portion of their emissions by purchasing carbon credits from the state. These credits are priced at $129 each, with one credit equating to one metric ton of carbon dioxide.
Nicole Singh, a senior climate change policy advisor for DEQ, mentioned that the state has built upon the prior program.
“We did build off of the work that we already did in the prior Climate Protection Program,” she said. “We didn’t throw that out the window. We’re using that information to help inform this.”
The revised regulations allocate increased roles and funding to Oregon’s nine federally recognized tribes to determine grant distribution for community projects. The state will also take a small percentage of the funds to ensure proper oversight and compliance auditing.
The revised regulations aim to balance the need for stringent environmental protection while providing some flexibility for companies to meet emissions targets. By expanding the program to include heavy users of natural gas and introducing a carbon credit market, Oregon is taking a comprehensive approach to tackle climate change. The public has until August 30 to provide feedback on these regulations, after which the Environmental Quality Commission will vote on the final rules by the end of the year. This initiative marks an important step in Oregon’s efforts to reduce its carbon footprint and set an example for other states to follow.
