NFIB argues statewide rule requires legislature approval
SALEM, Oregon (June 14, 2022) – The National Federation of Independent Business (NFIB) has joined a coalition of business organizations as a plaintiff in the case Oregon Farm Bureau Federation, et al. v. Oregon Environmental Quality Commission, Opposition to the Commission on Environmental Quality (CEC) and the Department of Environmental Quality (DEQ) Climate Protection Program (CPP). The CPP imposes limits on greenhouse gas (GHG) emission reductions at the state level. The NFIB argues that the agency lacks sufficient authority to issue a statewide standard of this magnitude without the approval of the state legislature.
“The sweeping Climate Protection Program severely impacts Oregon’s small business community,” said Karen Harned, executive director of the NFIB’s Small Business Law Center. “This rule limits the availability of covered fuels, will increase energy costs for small businesses, and negatively impact their bottom lines. The Oregon state legislature failed to pass cap-and-trade legislation in recent years, and the agency is overstepping its bounds by using its administrative authority to pass state rules with financial penalties.”
“Gas prices and inflation are hitting Oregonians hard right now,” said Anthony K. Smith, NFIB Oregon State Director. “The last thing small businesses need is a new government program designed to artificially increase the cost of essential fuels Oregonians use every day. It is especially concerning that the state is attempting to create this program through an administrative rule, without even obtaining a vote from the Oregon Legislature.”
Executive Order No. 20-04 required Oregon to reduce its GHG emissions to 45% of 1990 emissions by 2035 and at least 80% below 1990 levels by 2050. Pursuant to the Governor’s order, the EQC and DEQ approved the CPP in December 2021. The CPP caps emissions each year, resulting in a 90% decrease in emissions levels by 2050. The CPP imposes financial penalties on companies that fail to comply with emissions reduction requirements.
NFIB filed the lawsuit with the Oregon Farm Bureau Federation, Oregon Business and Industry Association, Oregon Manufacturers and Commerce, Alliance of Western Energy Consumers, Associated Oregon Loggers, Inc., Northwest Pulp and Paper Association, Oregon Association of Nurseries, Oregon Forest and Industries Council, Oregon Trucking Associations, Inc., Western Wood Preservers Institute, Otley Land and Cattle, Inc., and Space Age Fuel Inc.
The NFIB Small Business Legal Center protects the rights of small-business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.
