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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 682
Sponsored by Senator GOLDEN, Representatives ANDERSEN, GAMBA, Senators CAMPOS, PHAM K; Senators
FREDERICK, MANNING JR, MEEK, TAYLOR, Representatives CHAICHI, FRAGALA, HELM, HUDSON,
NELSON (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: This Act creates a program to recover the costs of climate change. (Flesch Readability
Score: 81.8).
Establishes the Climate Superfund Cost Recovery Program within the Department of Environ-
mentalQuality.
Establishes the Climate Superfund Cost Recovery Program Account.
Requires the State Treasurer to conduct an assessment on the costs of greenhouse gas emis-
sions.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to greenhouse gas emissions; and prescribing an effective date.
Whereas climate change, resulting primarily from the combustion of fossil fuels, is an immediate
and grave threat to this state’s communities, environment and economy; and
Whereas in addition to mitigating the further buildup of greenhouse gases, the state must take
action to adapt to the consequences of climate change, including wildfires, extreme temperatures,
drought, coastal hazards such as coastal flooding and coastal erosion, changes in the water cycle,
compounded effects on human health and healthcare systems and other threats; and
Whereas meeting the challenge of adapting to and mitigating the effects of climate change will
require a shared commitment of purpose and huge investments in new or upgraded infrastructure;
and
Whereas the state has previously adopted laws holding polluters strictly liable without regard
to fault for cleanup and repair of damages done by the substances they introduced into the state;
and
Whereas we can now determine with great accuracy the share of greenhouse gases released into
the atmosphere by specific fossil fuel companies over the last three decades, making it possible to
assign liability and require compensation from companies commensurate with their emissions; now,
therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. Sections 2 to 10 of this 2025 Act are added to and made a part of ORS
chapter468.
SECTION 2.As used in sections 2 to 10 of this 2025 Act:
(1) “Climate change adaptation project” means a project designed to respond to, avoid,
moderate, repair or adapt to negative impacts caused by climate change and to assist com-
munities, households and businesses in preparing for future climate change driven dis-
ruptions.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
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(2) “Coal” means bituminous coal, anthracite coal and lignite.
(3) “Controlled group” means two ore more entities treated as a single employer under:
(a) 26 U.S.C. 52(a) or (b), without regard to 26 U.S.C.1563(b)(2)(C); or
(b) 26 U.S.C. 414(m) or (o).
(4) “Cost recovery demand” means a charge assessed against a responsible party for cost
recovery payments under sections 2 to 10 of this 2025 Act.
(5) “Covered greenhouse gas emissions” means the total quantity of greenhouse gases
released into the atmosphere during the covered period, expressed in metric tons of carbon
dioxide equivalent, resulting from the use of fossil fuels extracted or refined by an entity.
(6) “Covered period” means the period beginning on January 1, 1995, and ending on De-
cember 31, 2024.
(7) “Crude oil” means oil or petroleum of any kind and in any form, including bitumen,
oil sands, heavy oil, conventional and unconventional oil, shale oil, natural gas liquids,
condensates and related fossil fuels.
(8) “Entity” means any individual, trustee, agent, partnership, association, corporation,
company, municipality, political subdivision or other legal organization, including a foreign
nation, that holds or held an ownership interest in a fossil fuel business during the covered
period.
(9) “Environmental justice community” has the meaning given that term in ORS 182.535.
(10) “Fossil fuel” means coal, a petroleum product or fuel gas or a byproduct of coal, a
petroleum product or fuel gas.
(11) “Fossil fuel business” means a business engaging in the extraction of fossil fuels or
the refining of petroleum products.
(12) “Fuel gas” means methane, natural gas, liquified natural gas or manufactured fuel
gases.
(13) “Greenhouse gas” has the meaning given that term in ORS 468A.210.
(14) “Nature-based solutions” means projects, including green or natural infrastructure
projects, that utilize or mimic nature or natural processes and functions and that may also
offer environmental, economic and social benefits while increasing climate resilience.
(15) “Notice of cost recovery demand” means the written communication from the de-
partment informing a responsible party of the amount of the cost recovery demand.
(16) “Petroleum product” means any product that is obtained from distilling, refining,
re-refining or processing synthetic or crude oil or crude oil extracted from natural gas liq-
uids or other sources.
(17) “Responsible party” means an entity that:
(a) Holds or held a majority ownership interest in a business engaged in extracting or
refining fossil fuel during the covered period, or is a successor in interest to the entity;
(b) During any part of the covered period, did business in this state or otherwise had
sufficient contacts with this state to establish personal jurisdiction on any basis consistent
with the United States Constitution; and
(c) The department determines is responsible for more than one billion metric tons of
covered greenhouse gas emissions, in aggregate globally, during the covered period.
SECTION 3. The Climate Superfund Cost Recovery Program is established within the
Department of Environmental Quality. The purpose of the program is to:
(1) Secure compensatory payments from responsible parties based on a standard of strict
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liability;
(2) Determine the proportional liability of responsible parties;
(3) Impose cost recovery demands on responsible parties and issue notices of cost re-
coverydemands;
(4) Collect and accept payment from responsible parties;
(5) Develop, adopt, implement and update a resilience implementation strategy that will
identify eligible climate change adaptation projects; and
(6) Disperse funds to implement eligible climate change adaptation projects.
SECTION 4. (1) The Environmental Quality Commission shall establish by rule:
(a) Methodologies using the best available science and publicly available data to identify
responsible parties and determine their applicable share of covered greenhouse gas emis-
sions;
(b) Procedures for registering entities that are responsible parties and issuing notices
of cost recovery demands under section 5 of this 2025 Act;
(c) Procedures for collecting cost recovery demands under section 5 of this 2025 Act;
(d) Rules of procedure for appeals to the Director of the Department of Environmental
Quality under section 6 of this 2025 Act; and
(e) Procedures for dispersing moneys from the Climate Superfund Cost Recovery Pro-
gram Account for eligible climate change adaptation projects.
(2) The commission shall establish by rule a resilience implementation strategy that in-
cludes:
(a) Practices for utilizing nature-based solutions intended to stabilize floodplains, riparian
zones, shorelands wetlands and similar lands;
(b) Practices to adapt infrastructure to the impacts of climate change;
(c) Practices needed to build out early warning mechanisms and support fast, effective
response to climate-related threats;
(d) Practices that support economic and environmental sustainability in the face of
changing climate conditions; and
(e) Criteria and procedures for identifying and prioritizing climate change adaptation
projects that are consistent with the practices identified in paragraphs (a) to (d) of this
subsection.
(3) In adopting the strategy under subsection (2) of this section, the commission shall:
(a) Consult the climate adaptation framework developed by the Department of Land
Conservation and Development;
(b) Consult with the Environmental Justice Council;
(c) In consultation with the Oregon Health Authority and the Environmental Justice
Council, assess the adaptation needs and vulnerabilities of geographic areas that are vital to
this state’s economy and the health and well-being of Oregonians;
(d) Identify potential and proposed climate change adaptation projects throughout the
state;
(e) Identify opportunities for alignment with existing federal, state and local funding
streams;
(f) Consult with local governments, businesses, environmental advocates, relevant sub-
ject area experts, representatives of environmental justice communities and other
stakeholders;and
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(g) Conduct public engagement in communities that have the most significant exposure
to the impacts of climate change, including disadvantaged, low-income and rural communi-
ties.
SECTION 5. (1) A responsible party shall be strictly liable for the costs of climate change
caused by the responsible party’s covered greenhouse gas emissions, as determined under
subsection (2) of this section.
(2) The cost recovery demand for each responsible party shall be an amount equal to the
responsible party’s proportionate share of costs to the state and its residents, as determined
under section 7 of this 2025 Act, from the emission of covered greenhouse gases, computed
by multiplying the applicable costs by the ratio of the responsible party’s covered greenhouse
gas emissions to all covered greenhouse gas emissions.
(3) To determine the amount of covered greenhouse gas emissions attributable to any
entity, the Department of Environmental Quality shall use the U.S. Environmental Pro-
tection Agency’s Emissions Factors for Greenhouse Gas Inventories, the best publicly avail-
able fossil fuel volume data and the methodology developed by the Environmental Quality
Commission under section 4 of this 2025 Act.
(4) For purposes of this section, all entities in a controlled group shall be:
(a) Treated as a single entity for the purpose of identifying a responsible entity; and
(b) Jointly and severally liable for payment of any cost recovery demand owed by any
entity in the controlled group.
(5) If a responsible party owns a minority interest of 10 percent or more in another entity
that engaged in extracting or refining fossil fuel during the covered period, the responsible
party’s applicable share of covered greenhouse gas emissions shall be increased by the ap-
plicable share of covered greenhouse gas emissions for the entity in which the responsible
party holds a minority interest multiplied by the percentage of the minority interest held by
the responsible party.
(6) The department may adjust the cost recovery demand of a responsible party that re-
fined petroleum products or that is a successor in interest to an entity that refined petro-
leum products if the responsible party establishes to the satisfaction of the department that:
(a) A portion of the cost recovery demand amount was attributable to the refining of
crude oil extracted by another entity; and
(b) The greenhouse gas emissions attributable to the crude oil extracted by the other
entity was accounted for when the department determined the cost recovery demand amount
for the other entity or a successor in interest of the other entity.
(7) Except as provided in subsections (8) and (9) of this section, a responsible party shall
pay the cost recovery demand in full not later than six months following the date of issuance
of the notice of cost recovery demand.
(8) A responsible party may elect to pay the cost recovery demand in nine annual pay-
ments as follows:
(a) A first payment equal to 20 percent of the total cost recovery demand shall be paid
no later than six months from the date of issuance of the notice of cost recovery demand.
(b) Each subsequent payment shall be equal to 10 percent of the total cost recovery de-
mand and shall be due each year no later than the anniversary of the first payment. The
department may adjust the amount of payments described in this paragraph to reflect any
percentage changes in the Consumer Price Index for All Urban Consumers, West Region (All
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Items), as published by the Bureau of Labor Statistics of the United States Department of
Labor.
(9)(a) The unpaid balance of a cost recovery demand shall become due immediately if:
(A) A responsible party fails to pay any installment in a timely manner, as specified by
the commission by rule;
(B) Except as provided in paragraph (b) of this subsection, there is a liquidation or sale
of all or substantially all of the assets of the responsible party; or
(C) The responsible party ceases to do business.
(b) In the case of a sale of all or substantially all of the assets of a responsible party, the
remaining payments do not become due immediately if the buyer enters into an agreement
with the department to assume liability for the remaining payments due under subsection
(8) of this section.
(10) The department shall deposit cost recovery demand payments collected under this
section in the Climate Superfund Cost Recovery Program Account established under section
10 of this 2025 Act.
SECTION 6. A responsible party aggrieved by the issuance of a notice of cost recovery
demand may appeal by filing a notice of appeal with the Director of the Department of En-
vironmental Quality within 30 days following issuance of the notice of cost recovery demand.
After considering the appeal, the director shall cancel the notice of cost recovery demand
or affirm or adjust the cost recovery demand and issue a final notice of cost recovery de-
mand. A person aggrieved by a final notice of cost recovery demand may seek judicial review
of the notice in the manner provided by ORS chapter 183 for judicial review of final orders.
SECTION 7.The State Treasurer, in consultation with the Department of Environmental
Quality, the Oregon Climate Action Commission, the Oregon Climate Change Research In-
stitute and any other relevant agency or person, shall conduct an assessment to determine
the costs to the state and its residents of covered greenhouse gas emissions for the covered
period. The assessment shall include:
(1) An analysis of the various cost-driving effects of covered greenhouse gas emissions
on the state and its residents, including the effects on public health, natural resources,
biodiversity, agriculture, economic development, flood preparedness and safety, housing and
any other effect that the State Treasurer determines is relevant.
(2) An itemized description of the costs that have been incurred and are projected to be
incurred by as a result of the effects analyzed under subsection (1) of this section.
(3) An itemized description of the costs that have been incurred and are projected to be
incurred in the future to abate the effects of covered greenhouse gas emissions.
SECTION 8.(1) The remedies provided in sections 2 to 10 of this 2025 Act are in addition
to and not in lieu of any other remedy available to a person or the state at common law or
under state statute. Sections 2 to 10 of this 2025 Act do not:
(a) Relieve the liability of any entity for damages resulting from climate change under
any applicable law;
(b) Preempt, displace or restrict any rights or remedies of a person, the state, local
government, as defined in ORS 174.116, or tribal government under any applicable law relat-
ing to a past, present or future allegation of:
(A) Deception concerning the effects of fossil fuels on climate change;
(B) Damage or injury resulting from the role of fossil fuels in contributing to climate
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change;or
(C) Failure to avoid damage or injury related to climate change, including claims for
nuisance, trespass, design defect, negligence, failure to warn or deceptive or unfair practices.
(2) Sections 2 to 10 are not intended to preempt, supersede or displace any other state
law or local government ordinance, regulation, policy or program that provides for:
(a) Limiting, setting or enforcing standards for emissions of greenhouse gases;
(b) Monitoring, reporting or keeping records of greenhouse gases;
(c) Collecting revenue; or
(d) Conducting or supporting investigations.
(3) Nothing in sections 2 to 10 of this 2025 Act limits the existing authority of any agency
of state government, as defined in ORS 174.111, to regulate greenhouse gas emissions or es-
tablish strategies or adopt rules to mitigate climate risk and build resilience to climate
change.
SECTION 9. The Secretary of State, in accordance with ORS 297.210, shall audit the op-
eration and effectiveness of the Climate Superfund Cost Recovery Program no less often
than once every five years. Upon completing the audit, the secretary shall make recom-
mendations to the Department of Environmental Quality on ways to increase program effi-
ciency and cost effectiveness.
SECTION 10.(1) The Climate Superfund Cost Recovery Program Account is established
in the State Treasury, separate and distinct from the General Fund. Interest earned by the
Climate Superfund Cost Recovery Program Account shall be credited to the account.
(2) The Climate Superfund Cost Recovery Program Account consists of:
(a) Cost recovery payments deposited in the account under section 5 of this 2025 Act;
(b) Moneys appropriated or transferred to the account by the Legislative Assembly; and
(c) Grants, donations, contributions or gifts from any other public or private sources.
(3) Moneys in the Climate Superfund Cost Recovery Program Account are continuously
appropriated to the Department of Environmental Quality for the purposes of:
(a) Distribution for climate change adaptation projects consistent with the resilience
implementation strategy established under section 4 of this 2025 Act;
(b) Administration of sections 2 to 10 of this 2025 Act; and
(c) For equal distribution to each of the nine federally recognized Indian tribes in this
state in accordance with subsection (4) of this section.
(4) Of the money deposited in the account, each biennium, 20 percent shall be equally
distributed to the nine federally recognized Indian tribes in this state for purposes consistent
with the resilience implementation strategy established under section 4 of this 2025 Act.
SECTION 11. The State Treasurer shall complete the assessment described in section 7
of this 2025 Act no later than January 1, 2027. The State Treasurer shall include the assess-
ment in a report submitted in the manner provided by ORS 192.245 to the Joint Interim
Committee on Ways and Means and the interim committees of the Legislative Assembly re-
lated to finance, revenue, natural resources and the environment.
SECTION 12. The Environmental Quality Commission shall first adopt rules under sec-
tion 4 of this 2025 Act no later than January 1, 2027.
SECTION 13.In addition to and not in lieu of any other appropriation, there is appro-
priated to the Department of Environmental Quality, for the biennium beginning July 1, 2025,
out of the General Fund, the amount of $300,000, which may be expended for the purpose of
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carrying out sections 2 to 10 of this 2025 Act.
SECTION 14. In addition to and not in lieu of any other appropriation, there is appro-
priated to the State Treasurer, for the biennium beginning July 1, 2025, out of the General
Fund, the amount of $300,000, which may be expended for the purpose of carrying out
sections 2 to 10 of this 2025 Act.
SECTION 15.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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