What is the Climate Protection Program (CPP)?
The CPP is a regulatory program that sets a declining emissions cap that entities in Oregon must comply with. It was created by the DEQ in response to former Governor Kate Brown’s 2020 executive order (EO 20-04). After the original version was invalidated by the Oregon Court of Appeals, a revised program with the same name was approved and is now being implemented under Governor Tina Kotek.
What are the key elements of CPP?
DEQ approved the current version of the CPP in November 2024 and the first CPP compliance period started January 1, 2025. To meet the CPP’s compliance requirements this year, NW Natural expanded its energy efficiency programs and increased its renewable natural gas (RNG) purchases. In future years, DEQ will make a limited amount of compliance instruments called Community Climate Investments (CCIs) available at a set cost. These are not available for purchase this year.
What does this mean for your bill?
You will see the first CPP cost on your December bill, reflecting compliance with the program for your company’s November gas use. The line-item charge will appear as “Oregon Climate Program Cost.” The cost is $0.065 per therm of usage. The compliance costs associated with CPP are designed to increase over time. Each year, as compliance activities are carried out, we’ll share updates regarding the cost implications for your business.
NW Natural has been advocating for a more affordable climate policy for 5 years
NW Natural has a long and proven track record of being a leader in supporting smart climate solutions, which is why we have advocated for a program that verifiably reduces greenhouse gas emissions and does not unnecessarily burden Oregonians and Oregon-based businesses.
As we’ve said since DEQ initiated its original CPP rulemaking process, we have concerns about the program's viability, its carbon-reduction capability, and its unprecedented high costs. As our customer, we want you to know NW Natural recommended cost-mitigation measures to DEQ to make the program more affordable, but throughout the rulemaking process those recommendations were largely ignored.
NW Natural believes a climate program that drives verifiable emission reductions, while balancing costs and reliability, is a more effective and beneficial approach for Oregonians.
That is why we actively supported an alternative market-based program called “Cap and Invest” over two legislative sessions in Oregon, in 2019 and 2020, and continue to do so. If done right, a Cap and Invest program can help balance costs over time while supporting smart emission reduction solutions, such as aggressive energy efficiency, low carbon fuels and innovative technologies.
We know these kinds of new expenses are difficult for your business and we are sorry to have to share this news. For additional details, please contact your account manager and visit nwnatural.com/cpp.