Bipartisan Oregon Legislative Group Evaluates Cap-and-Invest Carbon Model

A bipartisan workgroup of Oregon lawmakers has begun meeting to explore establishing a state carbon cap-and-invest program. The discussions focus on creating a market-based system that could eventually link with existing emissions-reduction markets in California, Washington, and Canada.

The negotiations stem from industry concerns regarding Oregon's administrative Climate Protection Program. Representatives from natural gas companies and energy-reliant sectors argue that the current rules impose excessive costs that could ultimately be transferred to consumers. Under the existing framework, businesses seeking to offset emissions pay an estimated four to five times more than firms operating in California's fluctuating carbon market, though Oregon does grant some initial free credits.

The 10-member legislative group has held three meetings over the past month and intends to convene weekly ahead of the 2027 legislative session, which convenes in January. In addition, Governor Tina Kotek's prosperity council has recommended that lawmakers reconsider the current Climate Protection Program in favor of an alternative approach. State Sen. Mark Meek, D-Gladstone, noted that both commercial stakeholders and regulated parties are assessing which framework would best serve taxpayers and utility ratepayers.