Company: POR
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000784977-25-000012
Chunk: 21

Company: PORTLAND GENERAL ELECTRIC CO /OR/
Filing Date: 2025-02-14
Form: 10-K
Item: Item 1
Chunk 21
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2023, the EPA proposed a successor rule to the CPP including CAA emissions limits and guidelines for carbon dioxide emissions from fossil-fuel fired power plants based on cost-effective and available control technologies. On April 25, 2024, the EPA released final regulations pertaining to electric generation facilities. For further information on the final regulations, see “EPA Regulations for Electric Generating Facilities” in the Laws and Regulations section of the Overview in Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

PGE continues to evaluate the final rules to assess the impact they may have on the Company’s continuing investment in Colstrip and on the Company’s operation of its existing natural gas fleet. Any impacts could be material. PGE notes that a substantial number of legal challenges have been filed regarding these rules. Such challenges, if successful, could affect the applicability to PGE and Colstrip, specifically. To the extent these regulations result in increased compliance costs, the Company expects to seek recovery of those costs through the ratemaking process.

In 2020, the Governor of Oregon issued Executive Order 20-04 that directed State agencies to integrate climate change and the State’s GHG emissions reduction goals into their plans, budgets, investments, and decisions to the extent allowed by law. Among other things, Executive Order 20-04, which remains in place until withdrawn or superseded:

•directed the Oregon Department of Environmental Quality (ODEQ) to adopt a program to cap and reduce GHG emissions within the State from large stationary sources, transportation fuels, and other liquid or gaseous fuels including natural gas. In response, in 2021, the ODEQ adopted the Climate Protection Program, which among various provisions, included an exemption for electricity generation from the Company’s natural gas-fired resources; and 

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•modified the reduction goals of the State’s Clean Fuels Program and extended the program while increasing the required reduction in average carbon intensity of transportation fuels.

In December 2023, the Oregon Court of Appeals invalidated the ODEQ’s initial Climate Protection Program rules on the basis that the program failed to comply with certain procedural requirements when adopting rules under the CAA. In November 2024, the ODEQ adopted rules to establish the Climate Protection Program 2024 in Oregon.  The Climate Protection Program set an enforceable declining cap on GHG emissions from fossil fuels used throughout Oregon, including diesel, gasoline, and natural gas. The Climate Protection Program is designed to reduce these emissions 50