  
 Oregon Department of Environmental Quality  
Background Brief  
Climate Protection Program  (CPP)  2024  Rulemaking  
 
March 11, 2024  
CPP 2024 Rulemaking Overview  
DEQ is conducting a rulemaking to re-establish a climate mitigation program in place of recently invalidated 
rules that established Oregon’s Climate Protection Program (CPP) . In December 2023, the Oregon Court of 
Appeals determined that DEQ did not fully comply with notice requirements during the 2021 rulemaking 
process , thereby invalidating the CPP rules and program.   
 The objective of the Climate Protection Program 2024 (CPP 2024)  rulemaking is to re -establish an enforceable 
and declining limit, or cap, on greenhouse gas emissions from fossil fuels used throughout Oregon, including diesel, gasoline, natural gas, and propane beginning in 2025.   As demonstrated by  the Oregon Climate Action 
Commission’s Oregon Climate Action Roadmap to 2030
, the CPP was critical to Oregon’s objective of deeply 
reducing our state’s climate pollution. 
 
Background: Climate Protection Program  Design  
The Climate Protection Program established a declining limit, or cap, on greenhouse gas emissions from fossil 
fuels used throughout Oregon, including in transportation, residential, commercial, and industrial settings. Entities subject to the declining emission caps included liquid fuels and propane suppliers and natural gas 
utilities.  
The program was designed to reduce these fuel suppliers’ emissions fifty percent by 2035 and ninety percent by 2050.  The program used three- year compliance periods with fuel suppliers scheduled to demonstrate 
compliance in late 2025 for the 2022 -2024 compliance period.   
 
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 The Climate Protection Program also regulated certain site- specific greenhouse gas emissions at a limited 
number of manufacturing facilities, such as emissions from industrial processes, with a best available 
emissions reduction (BAER)  approach.    
 The purposes of the program were  to:  
• Significantly r educe greenhouse gas emissions,  
• Achieve co- benefits from other air contaminant reductions, and  
• Enhance public welfare for Oregon communities, particularly environmental justice communities, 
including, communities of color, tribal, low- income, and rural communities.   
 
 
 To support these purposes, the program : 
• Required that covered entities reduce greenhouse gas emissions, 
• Supported reduction of emissions of other air contaminants ,  
• Prioritize d reduction of greenhouse gases and other air contaminants in environmental justice 
communities disproportionately burdened by the effects of climate change and air contamination,  and 
• Provided covered entities with compliance options to minimize business and consumer economic 
impacts . 
 DEQ had also convened an Equity Advisory Committee, a key partner as DEQ developed the CCI component of the program. A s a compliance flexibility mechanism, regulated entities could earn CCI credits by contributing 
funds to DEQ approved CCI entities. Those funds would be invested in projects that reduced emissions throughout Oregon. Designed to support an equitable clean energy transition, CCI  funds  were to be prioritized 
for Oregon’s environmental justice communities.  
See the CPP 2021 Program Overview
 for more information on initial program design.  
 
Background : Climate Protection Program  Development  Process 
DEQ used a three -phase approach to develop the initial  CPP. Program development was informed by 
extensive public engagement, including active engagement with environmental justice communities. Prior to 
the formal rulemaking process in 2021, DEQ convened public listening sessions, followed by a series of 
technical  workshops on key program elements and general town halls throughout 2020. Hundreds of people 
attended these meetings and offered an extensive array of input on how Oregon can address climate change 
through statewide policy.  
DEQ then conducted the formal rulemaking throughout 2021, holding seven rulemaking advisory committee meetings in the first half of 2021 . Meetings were open to the public and included opportunities for public 
comment.   
In December 2021, the EQC adopted rules to establish the Climate Protection Program. In November 2023 and December 2023, the EQC adopted rules that made minor modifications and clarifications to the program.  
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CPP 2024 Rulemaking Process  and Engagement  
The E nvironmental Quality Commission (EQC)  is the rulemaking body that considers and adopts proposed 
rules. DEQ is responsible for proposing rules  for EQC consideration and conduct ing a rulemaking process that 
adheres to the states’ requirements . DEQ intends to bring proposed rules for EQC consideration in November 
2024, so the program could begin in 2025.   
 
 
 
DEQ  has appointed a rulemaking advisory  committee  (RAC)  which  will meet  three  times : 
1. April 2, 2024  
2. May14,  2024  
3. June 25, 2024  
 
DEQ has aimed to select a committee that is large enough to provide diverse perspectives, lived experience, 
and expertise, while allowing ample opportunity for engagement. DEQ has appointed several environmental 
justice or community -based organizations to the committee.   
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There will be many opportunities for public comment and engagement throughout the rulemaking process.  All 
RAC meetings  will include  opportunities  for public  comment.  
In addition to this engagement,  DEQ may also hold additional stakeholder meetings , such as with community -
based organizations or organizations with specific technical expertise. There will also be a public comment 
period following the publication of the Notice of P roposed Rulemaking, scheduled for late July 2024.   
 
 
 2024 CPP Rulemaking Proposed Timeline  
 
 
CPP 2024 Rulemaking Scope  
The primary purpose of the Climate Protection Program 2024 rulemaking is to:    
• Reestablish a program to set limits on greenhouse gas emissions from significant sources in Oregon.    
• Reestablish an enforceable and declining limit, or cap, on greenhouse gas emissions from fossil fuels 
used in Oregon, including diesel, gasoline, natural gas, and propane beginning in 2025.     
• Define regulatory applicability and program requirements, while prioritizing equitable outcomes.   
  
The intent of this rulemaking is to re -establish a climate program with comparable scope and emissions 
reduction ambitions as the previously adopted Climate Protection Program . DEQ staff do not intend to propose 
a major program redesign but will need to make some adjustments to for the program to start in 2025. DEQ  
and stakeholders have also gained two years’ experience implementing the CPP. DEQ will consider additional 
modifications that would further  strengthen  the initial program. This could include opportunities to increas e 
equitable outcomes  or minimize costs to business and the public  while  supporting or strengthening emissions 
reductions.  
DEQ will also consider developments in state and federal climate and energy policies since the program was 
initially adopted.  
 
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Non-discrimination statement  
DEQ does not discriminate on the basis of race, color, national origin, disability, age or sex in 
administration of its programs or activities. Visit DEQ’s Civil Rights and Environmental Justice page . 
