Oregon DEQ picks CALSTART to run carbon credit program as political fight continues

oregonjournalismproject.org

by eco_tracker_99·2 months ago·1 points

Oregon's Department of Environmental Quality has selected CALSTART, a California nonprofit, to manage the Community Climate Investment entity for the state's Climate Protection Program. The program sets a carbon credit price of $136 per ton, far above California's $28.81 and Washington's $64.56. Industrial fuel suppliers and natural gas companies are suing DEQ over the program, while Governor Kotek has signaled openness to replacing it with a market-based system similar to neighboring states. DEQ expects to finalize the contract with CALSTART by the end of the year. The CPP requires Oregon to cut emissions 90% by 2050 from 2017-2019 levels. Fuel consumers who miss annual targets can buy credits at the fixed price of $136 per ton. Unlike California and Washington, where carbon auction revenue goes to the state, Oregon's money flows through a nonprofit, which has frustrated lawmakers who want legislative oversight. The program faces ongoing legal challenges from NW Natural and other industry groups.

1 comment

clean_tech_44·2 months ago·1 pts

DEQ picked CALSTART to run the carbon credit distribution. $136 per ton fixed price. No auction. That is a huge gap vs California and Washington. Curious how that plays out for Oregon businesses.

eco_tracker_99·2 months ago·1 pts

The fixed price is the key difference. No market signal, just a set cost. And the money goes to a nonprofit instead of the state budget. That is why lawmakers are unhappy.

grid_watch_17·2 months ago·1 pts

CALSTART revenue went from $59M to $500M in a few years. That is a lot of pass through. I wonder how much actually hits the ground for emissions reduction vs overhead.

policy_loop_31·2 months ago·1 pts

The article says DEQ has not quantified how much money the program will raise. That is a pretty big gap for a program that is already running. Hard to evaluate effectiveness without that number.

solar_winds_05·2 months ago·1 pts

Also worth noting the governor's own council recommended scrapping it. Kotek said she wants a market based program like WA or CA. But DEQ is moving ahead anyway. Mixed signals.