FILE: Basco Appliances General Manager Fred Graetzer lights the burner on a gas stove in the store's Northwest Portland showroom.
Cassandra Profita / OPB
The Oregon Court of Appeals decided Wednesday that a state program designed to limit and drastically reduce greenhouse gas emissions from fossil fuel companies is invalid.
The Oregon Department of Environmental Quality’s Climate Protection Program failed to comply, “or even substantially comply,” with disclosure requirements when adopting rules under the federal Clean Air Act, the Oregon Court of Appeals said.
“We conclude that the Climate Protection Program rules are invalid,” the decision reads.
The Climate Protection Program creates limits on greenhouse gas emissions from oil and natural gas companies, with a target of 90% reduction by 2050. The program also allows for fossil fuel suppliers to reduce emissions through the program’s Community Climate Investment credit program. The program began in 2022 and is one of the strongest climate programs in the nation.
According to DEQ, the decision is limited to an administrative error and is not effective immediately.
“The court did not make a decision about whether the Environmental Quality Commission has authority to adopt the Climate Protection Program,” said Lauren Wirtis, DEQ’s communications manager, in a statement. “DEQ is talking through the next steps with counsel at the (Oregon) Department of Justice.”
Wirtis said the agency is confident it has the authority to adopt and enforce the program.
Fossil fuel companies in Oregon sued the program in March 2022, arguing the agency exceeded its authority by creating the rules. The companies sought to block the program entirely.
NW Natural, one of the petitioners, said in a statement Wednesday that it was pleased with the court’s decision and remains committed to moving toward a low-carbon energy future.
“We think it is an important step forward in being able to constructively address climate change,” said David Roy, NW Natural’s senior director of communications. “We believe in effective climate policy and remain committed to moving toward a low-carbon energy future while safely and reliably serving our customers.”
A coalition of environmental, climate and social justice groups agreed with DEQ’s view that the court’s decision focused on a procedural technicality and did not undermine DEQ’s authority to set greenhouse gas emissions limits on oil and gas industries.
“We look forward to supporting any agency actions to address procedural requirements without delay,” the groups said in a statement.