Defending the CPP (Again): The Program, the Lawsuit, and the Road Ahead

It might feel like a nightmarish bout of déjà vu, but it's all too real: The Climate Protection Program is once again under attack.

Last month, Oregon Business & Industry brought forward a new lawsuit challenging the state's authority to implement the landmark Climate Protection Program (CPP). Their case follows a familiar playbook that we've seen time and time again by the fossil fuel industry - namely, leaning into disinformation to put corporate profit over the health and livelihood of ordinary Oregonians. OEC, and a strong coalition of statewide partners, stand in firm opposition to the lawsuit.

This isn't the first time the CPP has faced hurdles since its adoption in 2021. In 2023, the program was invalidated over a procedural technicality - an effort spearheaded, unsurprisingly, by the oil and gas industry. The following year, after many months of hard work and collaboration between OEC and our coalition partners, the CPP was revised in a unanimous vote by the Environmental Quality Commission (EQC). And yet here we are again.

Needless to say, the fight to protect this crucial program is far from over. Read on to learn more about how the CPP works, why it's under attack, and what OEC is doing to defend it.

What is the Climate Protection Program?

At its core, the goal of the CPP is simple: Reduce Oregon's greenhouse gas emissions caused by burning or combusting fossil fuels. By establishing a declining cap on greenhouse gas emissions throughout the state - from diesel, gasoline, and natural gas - the program is set to reduce fossil fuel pollution by 50% 2035, and 90% by 2050.

Here's how it works: The CPP sets what are known as "compliance instruments" - essentially permits allowing fossil fuel corporations to emit a fixed amount of emissions - based on the fossil fuel cap determined by the state. These companies can use the compliance instruments, trade them with other companies, or save them for later. As the cap declines over time, the Department of Environmental Quality (DEQ) issues fewer compliance instruments, forcing companies to pollute less , secure additional instruments, or pay for Community Climate Investments (CCIs).

Instead of using a compliance instrument, regulated entities can partially comply by purchasing CCI credits. CCIs are essentially pots of money that corporations can pay into that fund new clean energy projects and energy efficiency upgrades, leading to greater savings down the line. These investments are specifically designed to benefit communities most impacted by the effects of climate change - including low-income, people of color, and rural households - through climate-resilient infrastructure, job growth, and workforce training.

Why does it matter?

An overarching cap on fossil fuel greenhouse gas emissions prevents the familiar pattern of shifting from one harmful sector to another. We've seen how this plays out in the past: The transition from burning coal to "natural gas" was once viewed as a reduction in emissions. But the fact is, natural gas is methane - despite the industry's well-funded attempts to make us forget it. Burning methane releases potent carbon emissions; it's a super pollutant that burdens communities with a slough of negative health outcomes, and fuels the ever-worsening effects of climate change.

The CPP helps wean us off these harmful pollutants and encourages the shift to clean energy solutions. The long-term emissions caps set by the CPP and market mechanisms to support an energy transition that benefits Oregonians' energy bills, the air we breathe, and the future we're leaving for our children.

What's happened, and what's happening now?

Governor Brown signed an Executive Order in 2020 directing certain state agencies to take action to reduce greenhouse gas emissions and mitigate the impact of climate change, resulting in the development of the Climate Protection Program in 2022. Since then, CPP has faced lawsuits and multiple rulemakings. DEQ relaunched the program in 2025, following established and proven best practices that allow businesses flexibility on how to reach the set declining targets.

After failure to catalyze legislative action in 2026, opponents are taking CPP back to court . They claim it will dramatically drive up energy costs for Oregon businesses, workers, and consumers and cause "irreparable harm" to fossil fuel industries.

Simply put, this narrative is flat-out false. The CPP was created with business in mind and was built around significant industry input. By providing both clarity and flexibility in how polluters can reduce emissions, the program will accelerate clean energy innovation, cut costs for consumers, and add thousands of jobs to Oregon - strengthening the state economy, not weakening it.

We also know that the CPP will benefit consumers' wallets, not just corporations'. Recent modeling from Energy Innovation shows that the program will add nearly 10,000 jobs and add $2.5 billion to Oregon's GDP by 2050. And with Oregonians already bearing the costs of climate extremes - including wildfires, drought, and heat waves - we know just how steep the cost of inaction will be.

The CPP wasn't created in a vacuum. It was carefully designed - informed by input across sectors - to bring substantial economic and climate benefits to Oregon. The latest industry attempt to stop it is fueled by a focus on short-term profit over long-term gains for both businesses and ordinary Oregon residents.

What's OEC's role in the fight to defend the CPP?

OEC has been a strong advocate and proponent for the CPP since its inception. We have served on CPP rulemaking advisory committees, worked closely with the Governor's office, DEQ, advocates, community partners, and regulated parties to create the best possible climate program. We are proud of this work and the benefits CPP will deliver to Oregon.

OEC also defended the CPP in court through legal representation. Our Executive Director, Jana Gastellum, laid out OEC's perspective Oregon Public Broadcasting on why Oregon Business & Industry's recent lawsuit is counterproductive to Oregon's climate and community goals:

"OBI doesn't represent the voices and priorities of the people of Oregon when it comes to the Climate Protection Program," Gastellum said. "Over 10,000 Oregonians have voiced their support of this program throughout its lifespan, from all corners of the state. By seeking to repeal the program, OBI is acting in blatant disregard to Oregonians' broad desire for greater climate action and accountability."

We'll keep fighting to protect this critical program for as long as it takes. For updates on the latest CPP news, and opportunities to make your voice heard to defend it, be sure to sign up for our Grassroots Action mailing list .