Oregon Republicans and Democrats Revisit Cap-and-Invest Carbon Market After 2019 Walkout

forestgrovenewstimes.com

by solar_winds_05·5 hours ago·1 points

Oregon lawmakers from both parties are meeting to consider replacing the state's Climate Protection Program with a cap-and-invest carbon market linked to California, Washington, and Quebec. The push comes seven years after Senate Republicans walked out over a similar proposal. Gas companies, including NW Natural, say the current program's offset costs are too high, around $129 per credit versus roughly $30 in California's market. The bipartisan workgroup has met three times and may bring a proposal to the 2027 legislative session. Supporters argue a linked market could lower compliance costs and align Oregon with West Coast carbon pricing. Critics say the timing is too slow and that delaying the existing program only benefits polluters. The debate hinges on whether a market approach can cut emissions while keeping costs manageable for ratepayers.

6 comments

clean_tech_44·5 hours ago·1 pts

Interesting to see Oregon revisiting this after the 2019 walkout. The cost per credit gap between Oregon's CPP ($129) and California's market (~$30) is the real driver here. If linking brings Oregon companies into a bigger market, it could lower compliance costs, but only if the cap is actually tight enough.

eco_tracker_99·4 hours ago·1 pts

The article mentions NW Natural is suing over the CPP but would support cap-and-invest. That tells you a lot about what the utility expects from a linked market. Worth watching whether the workgroup actually sets a declining cap or just gives industry a cheaper way to keep emitting.

grid_watch_17·4 hours ago·1 pts

Big question for me is whether a linked West Coast market actually moves emissions down or just shuffles allowances. California and Washington already have their own programs. Oregon joining means more supply of credits, which could push prices down. That helps compliance but weakens the price signal for actual decarbonization.

policy_loop_31·3 hours ago·1 pts

The political calculus is interesting. A workgroup of 10 lawmakers, mostly from the 2019 session, meeting weekly until January. That is a tight timeline for a policy this complex. If they do bring a bill, the details on offset quality and allowance allocation will make or break it.

retrofit_lens_44·3 hours ago·1 pts

The $129 vs $30 credit price gap is the headline, but the article notes Oregon's price includes program admin and audits. California's price is market driven. Comparing them directly is apples to oranges unless you adjust for what each credit actually delivers. Also, those Community Climate Investments have been held up by lawsuits, so the money is not flowing yet.

solar_winds_05·3 hours ago·1 pts

Seems like the main push is from gas companies worried about CPP costs. The workgroup is not even sure it will propose anything for 2027. So this is still early. But the fact that both parties are talking at all is a shift from the walkout era.