This bill summary was last updated January 23, 2025.
Damages from climate change are increasingly costly to both human health and the natural environment, and are now almost entirely borne by Oregon’s citizens. But since the warming climate is mainly a consequence of burning coal, oil and natural gas, it is appropriate for fossil energy companies to contribute to these damage costs.
Oregon’s Polluter Pays bill would require large fossil fuel firms to pay reparations for past climate change damages. It is based on the principle that those responsible for creating pollution have a moral obligation to make amends. The bill enacts this principle into law. Its approach is analogous to other, well-established federal and state programs that impose strict liability for cleaning up past pollution.
Under the bill, Oregon agencies will create a climate resilience plan addressing specific impacts on the state’s natural and human-built infrastructure. For example, the increasing number and severity of wildfires requires costly protective upgrades to electricity transmission lines. The bill will create a new Treasury fund to enable this work, thus limiting increases in electricity rates for Oregon consumers.
Here are a few other key aspects of the bill:
- Regulated firms must have a robust economic nexus with Oregon and have emitted greenhouse gases in excess of a specified threshold during 1995-2024.
- Payments are required in proportion to a company’s share of carbon dioxide emissions over the historical period. Well-established research makes it possible to attribute emissions to specific companies based the amounts of coal, oil and gas burned.
- Climate change damages between 1995-2024 will be estimated by experts in Oregon agencies, using the best available science.
- Successfully holding fossil fuel companies liable for climate damages may offer an incentive for the firms to invest in climate-friendly technologies.
- This bill does not preempt the Multnomah County lawsuit, or other lawsuits seeking to hold fossil fuel companies accountable for their actions.