New DEQ Climate Regulation in Oregon

An update on the Climate Protection Program court case

In December 2023, the Oregon Court of Appeals issued a ruling in the court case that we and other plaintiffs filed in 2022 regarding the Climate Protection Program (CPP) that was enacted by the Department of Environmental Quality (DEQ).

The court found that the CPP rules are invalid on the basis that the state did not comply with the necessary heightened disclosure requirements for the program. Under Oregon judicial rules, the court did not address the other substantive arguments raised against the CPP rules in the case because the procedural error made the entire rule invalid. As such, the Court did not address whether the DEQ had authority to adopt the rules. This is not an endorsement of authority, rather, the Court simply could not review further.

With the prior CPP rules invalidated, the costs we had anticipated our customers would begin seeing this year to comply with the program are no longer required

We are pleased with the Court’s decision because the program was designed in a way that would have been costly to customers and without accountability for quantifiable emission reduction benefits.

In response to the Court’s invalidation ruling, on January 22, 2024, DEQ stated that it intends to create new CPP rules—a process that they say could take up to 12 months to complete, including a public comment period.

We want customers to know it will be critical that businesses and residents participate in this new rule-making process to ensure the DEQ makes substantive changes to its program that are within its legal authority.

We will provide further updates about this new process, how you can get involved and any cost implications associated with rule changes being considered as more information becomes known.

We believe any climate program in Oregon must be lawful, focused on emission reductions, have clear accountability for effectiveness, and retain energy affordability and security. We look forward to working with our customers and communities on constructive solutions to meet our shared climate goals.



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