Climate Protection Program EITE

Proposed rule

Rulemaking contact: Evan Manvel, 971-266-9122

The Oregon Department of Environmental Quality's Climate Protection Program is conducting a rulemaking for the regulation of greenhouse gas emissions at specific manufacturing facilities.

Rulemaking scope

The Climate Protection Program EITE rulemaking addresses emissions-intensive trade-exposed, or EITE, sectors and direct natural gas sources. EITE sectors include facilities like pulp and paper mills, iron and steel mills, semiconductor manufacturers, chemical and concrete manufacturers, and more that are exposed to competitive trade by the program. Direct natural gas sources are emissions-intensive, but do not operate in a designated trade-exposed sector and use natural gas distributed by an entity other than a natural gas utility. 

The rulemaking aims to develop benchmark greenhouse gas emission intensity values for both types of facilities. Greenhouse gas emission intensity values would calculate the number of metric tons of carbon dioxide equivalent emitted per unit of manufacturing product or process – tons per widget. Currently these facilities have reporting requirements under the program but are not required to reduce emissions until the 2028-2029 compliance period. 

The rulemaking will also develop a schedule of reductions for these intensity values, ways to incentivize emission reductions at these sources, a benchmarking process for new sources, and any modifications to related rule divisions as needed for consistency. If DEQ does not adopt greenhouse gas emissions intensity benchmark values and reduction schedules for 2028, DEQ will distribute compliance instruments to EITE and direct natural gas sources as currently outlined in the program.

Timeline 

DEQ aims to present draft rules to the Environmental Quality Commission for consideration in mid-2027. In preparation for the rulemaking, DEQ held preliminary listening sessions with groups of interested parties.

DEQ has appointed a rulemaking advisory committee and will hold four committee meetings. Committee meetings are open to the public and there will be an opportunity for oral and written comments at each meeting. DEQ will hold at least three committee meetings in person at DEQ headquarters, 700 NE Multnomah St., Portland, and all meetings will have a remote attendance option.