CPP lawsuit filed: On Thursday, OBI and other members of a broad coalition of state employers, labor unions and trade associations filed a lawsuit challenging the validity of Oregon’s Climate Protection Program, which is projected to increase energy costs for state residents and businesses by nearly $5 billion over the next decade.
Critical concerns: OBI supports the goal of decarbonization, but programs to that end must be affordable, accountable and legally sound. The CPP is none of these. Compliance costs are two to three times as high as those faced by businesses in other states. The CPP was initiated by an executive order issued by former Gov. Kate Brown and developed by a state agency, the Department of Environmental Quality. Because it was created by executive order rather than statute, the program will handle hundreds of millions of dollars without direct legislative oversight. Finally, it is not clear that DEQ had the authority to create the program in the first place.
A better solution: The CPP must be replaced by a legislatively adopted program that is transparent, links to programs in other states and employs market mechanisms to set carbon pricing. Fortunately, legislators from both parties agree that the CPP misses the mark and lacks accountability. Replacing the CPP with a true cap and trade program will help create the stability Oregon businesses need to operate.
Learn more: Read the full coalition statement on OBI’s website here. The legal filings can be accessed here as well.
Media coverage: Read coverage of the lawsuit by the Oregon Journalism Project (here), the Portland Business Journal (here), The Oregonian (here) and Oregon Public Broadcasting (here).
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