The Oregon Department of Environmental Quality (DEQ) adopted its Climate Protection Program in late November, 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. Beginning in January 2025, the program will set caps on greenhouse gas emissions from fossil fuels used throughout Oregon, aiming to reduce emissions in the state by 50% by 2035 and 90% by 2050.
In managing the emissions cap, DEQ provides 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, and the number of credits distributed declines every year. The program allows regulated entities 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 the Community Climate Investment program. Funds contributed to the program go toward greenhouse gas reduction projects in Oregon, and environmental justice communities are prioritized.
