Revamping the Climate Protection Program
The Oregon Department of Environmental Quality (DEQ) has announced its revised draft rules for the Climate Protection Program, inviting public comments until August 30. The program aims to significantly reduce carbon emissions from oil and gas companies and extend support to communities most affected by climate change.
Following the invalidation of the initial attempt by a state appeals court, DEQ is keen to ensure the revised program gets a fresh start next year. Public feedback is crucial for shaping the final version of these rules.
The original plan aimed to cut 90% of carbon emissions from oil and natural gas sectors by 2050. The reworked rules now also target other heavy carbon emitters such as paper mills and concrete manufacturers.
Under the new guidelines, regulated entities will have two years to comply with the new standards, instead of three. Additionally, DEQ will collaborate with the Oregon Public Utilities Commission to monitor the program’s impact on customers’ natural gas bills.
Community Climate Investment Program
The Community Climate Investment Program aims to serve disadvantaged communities most affected by climate change. This fund, generated through the sale of carbon credits, will support projects like adding renewable energy to the grid and retrofitting homes.
At least 15% of these funds will be allocated to federally recognized tribes and tribal communities in Oregon. The program’s goals include equitable outcomes and alleviating burdens for any environmental justice communities.
“Our goals are still to significantly reduce emissions and provide flexibility to our compliance entities,” said Nicole Singh, DEQ’s Climate Protection Manager. The state’s carbon emissions reduction targets remain unchanged: 50% by 2035 and 90% by 2050.
Since its inception under former Gov. Kate Brown in 2021, the Climate Protection Program has faced opposition, including lawsuits from fossil fuel companies. However, Oregon remains committed to making it one of the nation’s most robust climate action programs.
New Draft Rules and Industries
The DEQ’s revised draft rules now include energy-intensive industries like food processors and steel manufacturers. These sectors collectively emit over 15,000 metric tons of CO2, equivalent to emissions from more than 3,500 gas-powered vehicles annually.
Bill Gaines, executive director of the Alliance of Western Energy Consumers, expressed satisfaction that some of their recommendations were included. However, he emphasized the need to “get the economics right” for the program to be effective.
The new rules impose declining limits on natural gas consumption over time. Companies that cannot meet these limits will need to buy community climate investment credits, which could be more expensive than natural gas.
If a company exceeds its carbon emission limits, it can buy a community climate investment credit for $129 per metric ton of carbon. This rate is set for the first two years of the program, starting in 2025.
Challenges and Opportunities
Some businesses are concerned that the costs associated with carbon credits could drive them out of the state. The Alliance of Western Energy Consumers estimates significant expenses for small pulp and paper companies to maintain current natural gas use.
The transportation sector has shown confidence in meeting the new carbon reduction targets. Companies that have already reduced emissions will receive some carbon credits at no cost, offering short-term flexibility.
Despite the progress, there are concerns about reaching the state’s overall emissions reduction goals. “Everybody is trying to do what they can to meet those targets,” said Mike Freese of the Oregon Fuels Association.
Freese emphasized the need for technological advancements to help achieve these targets. “I don’t know whether or not technology is going to exist to help us meet those targets, or what the expense will be,” he added.
Investment Delays and Future Steps
The invalidation of the Climate Protection Program also delayed the Community Climate Investment Program. Seeding Justice, a Portland-based nonprofit, was set to lead investments aimed at reducing emissions and supporting environmental justice communities.
Executive director Se-ah-dom Edmo expressed frustration over the potential decade-long delays in funding projects. The new rules allow companies extended compliance time and grant no-cost carbon credits, reducing their immediate incentive to invest in climate action.
Seeding Justice had already identified 17 climate action projects, including weatherizing homes and installing heat pumps. These projects could now face delays of up to nine years.
Meredith Connolly from Climate Solutions emphasized the urgency of holding major oil and gas companies accountable for their emissions. The DEQ plans to hold a virtual public hearing on August 21, with the deadline for public comments set for August 30.
avery
Does this mean my gas bill is gonna skyrocket? 😅 Asking for a friend.
ian_dreamer
Wait, so companies get two years to comply? That seems too short for such big changes!
Emma
Finally! It’s about time we hold big polluters accountable. Thank you, Oregon!
kennedy
Great initiative, but I’m worried about the cost of carbon credits driving small businesses out of state. Any insights?
jadespark8
So, DEQ is extending support to communities most affected by climate change. Does anyone know how they will identify these communities?
Shadow_Zenith
Wow, this is huge news! How do they plan to enforce these new rules? 🌍