Oregon governor signs executive order capping greenhouse gas emissions

“Governor Brown’s Executive Order on carbon reduction is ‘legally questionable’ and will undoubtedly face numerous legal battles as it moves forward through the rule-making process, Jana Jarvis, executive director of the OTA, told FreightWaves in an emailed statement.

It is also disappointing from a process perspective, Jarvis said.

“While proponents of the legislation talk about making amendments to their original proposal, virtually none of the major issues that opponents raised were addressed. Resorting to an Executive Order sets a concerning precedent for Oregon and will likely result in significant litigation costs for Oregon taxpayers.”

Litigation concerns aside, the next step is for the Oregon Department of Environmental Quality (DEQ), with the help of a $5 million cash infusion, appropriated by the legislature’s emergency board, to set new rules for transportation and industry to meet the emissions goals.

If implemented, Oregon’s plan will be the third program to reduce carbon emissions on the West Coast. California implemented a cap-and-trade system in 2013, and in 2008 the Canadian province of British Columbia put in place a carbon tax.

As advocates seek to expand carbon pricing to other jurisdictions, the federal government is trying to quash those efforts. Earlier this week, the Trump administration argued in federal court that the California 2013 decision to link its cap-and-trade system with the Canadian province of Quebec was an “intrusion into the federal sphere” and threatened the president’s ability to negotiate and craft international treaties.