Oregon's Department of Environmental Quality has selected CALSTART, a California nonprofit, to manage the Community Climate Investment credits under the state's Climate Protection Program. The CPP requires fuel suppliers to cut emissions 90% by 2050 or buy credits at $136 per ton, a price far above California and Washington auction rates. The money will go to community projects through CALSTART, not the state budget, which has frustrated lawmakers who want oversight. Industry groups and natural gas suppliers are suing DEQ over the program, arguing the high carbon price hurts Oregon businesses. Governor Kotek has signaled openness to replacing the CPP with a market-based system like neighboring states use, but DEQ is moving ahead with CALSTART anyway. A contract is expected by the end of the year. The outcome will affect how Oregon prices carbon and where the revenue goes.
