Climate Protection Program: DEQ’s rulemaking to establish a carbon intensity benchmark for designated emissions-intensive, trade-exposed (EITE) businesses within the Climate Protection Program (CPP) will hold its third meeting on Sept. 15. The rulemaking is intended to address the risk of carbon and economic leakage caused by the CPP’s costs and burdens and enable businesses to continue to grow in Oregon under the new program. The rulemaking is critical to the 37 businesses directly regulated under the CPP. The challenge is that DEQ’s current approach in the rulemaking is unlikely to provide businesses the flexibility and regulatory certainty they need to continue investing in Oregon operations. Additionally, by regulating different sectors (EITEs, natural gas and transportation fuel) under the same greenhouse gas emissions cap, improving regulatory outcomes for one sector would result in negative impacts to other sectors. OBI and 17 regulated entities are serving on the rulemaking advisory committee (RAC) and have provided extensive input into the process. A final RAC meeting will be held Oct. 21, and public notice and comment on a proposed rule is expected later this year.
Prosperity Council hearings: Both the Interim House Economic Development, Small Business and Trade Committee and the Senate Commerce and General Government Committee heard testimony last week from the Governor’s Prosperity Council co-chairs, Curtis Robinhold and Renée James, about the council’s work and recommendations. Also testifying were members of the council representing labor and other advocates who disagreed with some or all of the council’s conclusions and its recommendations, particularly on tax policy. It remains unclear whether the council’s recommendations will gain traction with legislators heading into the 2027 session. You can read OBI’s memo to the council here and OBI’s statement about the council’s recommendations here.
Surveillance pricing hearing: On Sept. 9, the House Committee on Commerce and Consumer Protection held an informational hearing on so-called “surveillance pricing,” which refers to the practice of charging customized prices using personal data and algorithms. The committee invited advocates for such policies but failed to include industry stakeholders. Thus, the hearing relied on anecdote and conjecture rather than fact-based examples of what companies are – or are not – doing. By and large, surveillance pricing does not happen. Yet regulations aimed at the practice could jeopardize loyalty programs and other discounts that help consumers. Further regulating loyalty programs and other discounts also would layer additional regulatory compliance onto retailers, which already contend with Oregon’s broadly restrictive business environment. OBI will work with other stakeholders to ensure this effort targets only demonstrable harm and does not expand the state’s Unlawful Trade Practices Act or regulate industries the state is preempted from regulating.
Cleaner Air Oregon: Although DEQ held its fourth and final RAC meeting on the Cleaner Air Oregon Toxicity Reference Value rulemaking in late June, the agency has taken the unusual step of proposing an additional RAC meeting, likely in October. OBI, with technical support from ToxStrategies, submitted extensive comments on DEQ’s proposal in July. ToxStrategies identified 11 chemistries for which there are major questions about the scientific underpinnings of DEQ’s proposal as well as the necessity of increasing program stringency to protect public health. At the Environmental Quality Commission’s Sept. 11 meeting, OBI requested that the 11 chemistries be excluded from the current rulemaking and further action paused until significant scientific questions can be resolved through additional, objective inquiry. As part of the request, OBI staff noted that Gov. Kotek’s Prosperity Council urged a pause in the rule in its July recommendations report.
Data center hearing: On Sept. 8, the House Interim Committee on Climate, Energy and the Environment held an informational hearing on data centers in Oregon. The hearing was fact-based and well-focused, even with many anti-data center protestors in the audience. Starting with a broad economic overview from ECONorthwest and enlightening facts provided by OBI member Amazon Web Services, the hearing also covered tax policy from the Legislative Fisal Office and included presentations from DEQ, and Water Resources Department, Public Utility Commission and Department of Energy covering their respective regulatory and policy engagements with the industry. OBI member Torus also presented information about its energy storage and reliability technology that is of use to data centers. OBI is committed to ensuring that fact-based information is infused into the highly political policy discussions about data centers in the state.
Fuel Terminal Rulemaking: The first RAC meeting took place Aug. 28 on DEQ’s proposal to require certificates of financial responsibility of up to $300 million for bulk fuel terminals in Multnomah, Columbia and Lane counties. The rulemaking is required by HB 4100, which the Legislature passed in 2026. OBI and bulk fuel terminal stakeholders supported this legislation because it provides financial assurance for cleanup activities in the event of a spill and pre-empts local governments from layering on additional requirements. However, OBI has several concerns about DEQ’s rulemaking proposal, which is likely to increase fuel costs for Oregonians and businesses. OBI’s concerns involve duplicative financial assurances, the methodology used to calculate risk, requirements that expand liability beyond the statutory authority of HB 4100, and restrictions on the ways in which companies may demonstrate financial assurance. OBI is serving on the RAC and will provide comments about the initial proposal. A second and final RAC meeting will be held Oct. 9, and a proposed rule will be issued for public comment later this year.
Toxic-free cosmetics: On Sept. 10, the Oregon Health Authority (OHA) held its third RAC meeting to implement SB 546, which passed during the 2023 session. The law requires OHA to make a list of high-priority chemicals of concern used in cosmetic products. It also prohibits manufacturers from selling certain cosmetics in Oregon despite the lack of evidence justifying the ban. OBI opposed this law because it targets broad classes of chemicals, requires Oregon to regulate cosmetics more strictly than any other state except for California and Washington, disregards the existence of strict federal laws and ignores the rigorous safeguards and protections the cosmetics industry already employs. During rulemaking, OHA has declined to align with California’s list of high-priority chemicals of concern, adding three chemicals that New York alone has deemed worrisome. During rulemaking, OBI has consistently argued that Oregon’s program should regulate these products no more strictly than our neighboring states to avoid disrupting the state’s supply of cosmetics.
Undersea cable rulemaking: The Oregon Department of State Lands (DSL) has extended the public comment period for proposed changes to administrative rules covering easements for uses of the territorial sea – most critically for business, undersea cables. The extended comment period is now open until Monday, Sept. 21, at 5:00 p.m. DSL’s stated reason is to allow time for more input. OBI already submitted comments. DSL indicated it will present proposed rules at the Dec. 8 meeting of the State Land Board (made up of the governor, secretary of state and treasurer) with implementation in January 2027.
Data center committee releases findings: The Oregon Data Center Advisory Committee, appointed by Gov. Kotek in January, has released its Preliminary Learnings and Questions Document. The report summarizes the information, data and evidence received since the group started and presents a variety of questions and considerations. It does not contain recommendations. A recommendations document will be released in December. Despite the tone of current public discourse, the impacts of data centers on water, power, air and land are relatively modest. Meanwhile, water discharged from data centers must meet the same federal and state water quality standards as other industrial uses. The only air quality impact noted involves diesel-fueled backup generators, which run for less than half an hour each month (and many use renewable diesel). Land use impacts reported by this committee are the same industrial land challenges Oregon faces across industries. With respect to electricity use, state ratepayers are protected while data centers have the capacity to improve grid utilization and increase flexibility. The economic benefits of data centers, meanwhile, are significant. Prineville’s unemployment rate fell from 20% to 6% following data center development, and data center operations jobs account for about 15% of employment in Morrow County. Also worth noting: 70% of submitted comments thus far were “near-copy form letters” opposed to data centers, with the majority coming from the Portland metro area.
Disclaimer: Articles featured on Oregon Report are the creation, responsibility and opinion of the authoring individual or organization which is featured at the top of every article.