The Environmental Quality Commission adopts the Climate Protection Program

The Environmental Quality Commission, the governing body for the Oregon Department of Environmental Quality, unanimously adopted the Climate Protection Program at its meeting on Nov. 21, 2024. The program sets enforceable and declining limits, or caps, on greenhouse gas emissions from fossil fuels used throughout Oregon. The program will reduce emissions in Oregon by 50% by 2035 and 90% by 2050.

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

The Climate Protection Program is critical to meeting Oregon’s greenhouse gas reduction goals. Following the Oregon Court of Appeals’ December 2023 decision to invalidate the program’s rules due to a procedural error in the original rulemaking notice, DEQ ran a robust and inclusive rulemaking process that considered input from a wide range of interested parties. The Climate Protection Program 2024 rules include the following elements in response to this feedback:

• Specific regulation of emissions-intensive, trade exposed industries to provide flexibility in how they can comply with the program.
• Developing carbon intensity targets for specific manufacturing facilities to accommodate future growth and new business development.
• Working with Oregon Public Utilities Commission to review natural gas rates and customer bills regularly to evaluate whether the program is having a significant impact on rates.
• Providing robust auditing and oversight of Community Climate Investment projects to ensure they reduce greenhouse gas emissions and benefit environmental justice communities across the state.

“This program maintains Oregon’s commitment to addressing climate change, transitioning our economy to remain globally competitive, and investing in our most impacted communities across the entire state,” said EQC Chair Matt Donegan.

How it works

DEQ 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. Each credit allows one ton of emissions. Each year the cap, and therefore the number of credits given out, declines. The program gives regulated entities the option to bank credits if they emit less than what they were allowed, trade credits with other entities, or earn additional credits by contributing funds to DEQ-approved entities through the Community Climate Investments program.

Funds contributed to the Community Climate Investment program will go toward projects that reduce greenhouse gas emissions in Oregon. The program prioritizes projects that benefit Oregon’s environmental justice communities.

The first compliance period starts Jan. 1, 2025 and covers emissions through the end of 2027. During that time, DEQ will conduct a rulemaking to determine the carbon emissions intensity targets for specific manufacturing facilities, which will be used for the second compliance period, 2028 to 2029.

“This new way of separately regulating manufacturers was an early request from the business community and a distinct change to the program,” said DEQ Director Leah Feldon “This approach brings these facilities in under the cap and accommodates changes and growth in Oregon’s manufacturers. I want to thank everyone who poured so much time into this process – DEQ staff, advisory committee members, commenters, and everyone else who led us to put together the best program for Oregon.”

For more information

See all materials presented to the commission on the DEQ website. To get the latest updates on the Climate Protection Program, sign up for our email list through GovDelivery. DEQ will post information to the program website.