The Oregon Department of Environmental Quality (DEQ) has formally engaged covered entities and initiated the Climate Protection Program (CPP) permit application process. CPP is a program intended to reduce Greenhouse Gas (GHG) emissions across the state from anthropogenic or human caused sources, setting limits and an enforceable declining “Cap” on GHG emissions covered in Oregon. The goal of the program is to limit GHGs emitted in the state to show a 90% reduction by 2050 from the baseline of 2017-2019. The initial CPP launched in 2022 but was later invalidated through the Oregon court of appeals in December 2023. The rulemaking process was started again in 2024 and the new CPP is codified under OAR Chapter 340 Division 273, adopted in November 2024.

Permit Application Requirements and Considerations

For those identified as a regulated entity, the agency should have already reached out with instructions and a detailed list of requested permit application information including:

1. A process flow diagram showing operational process at the covered entity including all emission units.
2. For each process or product produced:
   • The type of process or product and a proposed metric of emissions intensity.
   • The level of process or quantity of product produced in each of the 5 previous calendar years (2020 – 2024), or all years of operation if the facility has not been in operation for all 5 years;
   • A calculation of all greenhouse gas emissions (in MT CO2e) resulting from the process or production of the product in each of the 5 previous calendar years (2020 – 2024), or all years of operation if the facility has not been in operation for all 5 years. If multiple processes or products are produced at the covered entity, provide a methodology for allocating emissions to each product

The information provided will be used to develop carbon intensity baselines during DEQ’s upcoming CPP EITE focused rulemaking beginning in 2026, as well as evaluate industry goals and future reduction requirements. When putting together this data, it’s important to carefully consider the following:

1. Ensuring the metric used for emissions intensity is representative of facility impacts and is easily tracked.
   • One way to analyze what production value to use; such as product movements, direct outputs, process start-ups, etc. would be to compare the relationship between reported GHG emissions and quantity of the proposed metric. Establishing the relationship between these two variables will indicate how resulting emissions change with reported production value.
2. Assessing and presenting how process changes, production interruptions, and other variables may have impacted certain years of historic data.
   • Option to provide a writeup describing these potential outliers or schedule a call with the agency to walk through these items.
3. Considering upcoming planned construction or facility modifications (including 2025) that could impact the components informing this program.

What Happens Next?

Each EITE and DNG covered facility will have to use various avenues and resources to successfully reduce emissions by 55% by 2050. A multipronged approach involving facility equipment replacements, CCI credits, and banking emissions may be needed. Identifying feasible controls, equipment upgrades, and alternative fuels in advance while also considering implications to other environmental programs your site may be subject to (such as National Ambient Air Quality Standards (NAAQS) or Cleaner Air Oregon (CAO) programs) will give your facility a headstart in showing compliance.

If you have questions on how CPP will impact your facility, how to apply for permits, or want to strategize on methods to meet the programs limits in the future, please reach out to Trinity Consultants. Trinity are experts in air quality permitting in Oregon and have experience working with different sustainability programs in many States.

The Oregon Trinity Office is located in Portland, Oregon and has a variety of consultants who can help with CPP applicability to your facility and can help to strategize how a facility will comply with CPP in the future. If you would like to discuss CPP or any other items related to environmental permitting and compliance in Oregon please contact Trintiy’s Portland office or call 503.713.5550.