SB 1541 — Relating to greenhouse gas emissions; prescribing an effective date.

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session A-Engrossed Senate Bill 1541 Ordered by the Senate February 12 Including Senate Amendments dated February 12 Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conformance with pre- session filing rules, indicating neither advocacy nor opposition on the part of the President (at the request of Senate Interim Committee on Natural Resources and Wildfire) 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 measuremeasure. as introduced.

Requires the[the departmentdepartment] certain agencies to conduct an assessment on the costs of greenhouse gas emissions.

(8) “Fossil fuel” means coal, a petroleum product or fuel gas or a byproduct of coal, a petroleumNOTE: product or fuel gas.

(9) “Fossil fuel business” means a business engaged in the extraction of fossil fuels or the refining of petroleum products.

NOTE:

LC 183 SBA-Eng. 1541 (10) “Fuel gas” means methane, natural gas, liquified natural gas or manufactured fuel gases.

SB 1541 petroleum product or fuel gas.

(9) “Fossil fuel business” means a business engaged in the extraction of fossil fuels or the refining of petroleum products.

(10) “Fuel gas” means methane, natural gas, liquified natural gas or manufactured fuel gases.

and (B) DisperseProvide fundsgrants toor implementloans for eligible climate change resilience projects.projects in accordance with rules adopted by the Land Conservation and Development Commission under section 3 of this 2026 Act.

(A) The Oregon Department of Emergency Management shall develop and implement those[2] portionsA-Eng. of the resilience implementation strategy related to disaster preparedness and recovery.

(B)SB The1541 Oregon Health Authority shall develop and implement those portions of the resilience implementation strategy related to harmsdisaster topreparedness public health as a result of climate change, including harms resulting from extreme heat and otherrecovery. extreme weather events and [2] SB 1541 disease related to environmental conditions.

(B) The Oregon Health Authority shall develop and implement those portions of the resilience implementation strategy related to harms to public health as a result of climate change, including harms resulting from extreme heat and other extreme weather events and disease related to environmental conditions.

(1) The Department of Land Conservation and Development,Development Commission, in consultation with the interagency team established under section 2 of this 2026 Act, shall establish by rule a resilience implementation strategy that includes:

and (f) Procedures and standards for dispersingproviding grants or loans using moneys from the ClimateCli- mate Superfund Cost Recovery Program Account established in section 7 of this 2026 Act for eligible climate change resilience projects.

(2) InTo adoptingdevelop the strategy adopted by the commission under subsection (1) of this section,sec- tion, the departmentDepartment of Land Conservation and Development shall:

(b) AssessIn coordination with the Oregon Health Authority, assess the resilience needs and vulnerabilities of geographic areas that are vital to this state’s economy and the health and well-being of Oregonians;

(e) Consult with local governments, businesses,the environmentalnine advocates,federally relevantrecognized sub-Indian jecttribes areain experts,this representatives[3] ofA-Eng. environmental justice communities and other stakeholders;

SB 1541 state, businesses, environmental advocates, relevant subject area experts, representatives of environmental justice communities and other stakeholders;

(3) For purposes of determining whether a climate change resilience project benefits an environmental justice community, as provided by section 7 (5)(6) of this 2026 Act, rules adopted [3] SB 1541 by the Departmentcommission: of Land Conservation and Development:

(b) May require the department to use of the environmental justice mapping tool developed under ORS 182.555.

The Department of Land Conservation and DevelopmentDevelopment, and the Department of Environmental Quality,Quality and the Oregon Health Authority, in consultation with other relevantrele- vant state agencies as may be necessary, shall conduct an assessment to determine the costs to this state of covered greenhouse gas emissions for the covered period.

(1) An analysis of the various cost-driving effects of covered greenhouse gas emissions on the state, including the effects on public health, natural resources, biodiversity, agricul- ture, first foods, economic development, flood preparedness and safety, housing and any other effect that the Department of Land Conservation and Development determines is relevant.rel- evant.

(a)[4] Limiting,A-Eng. setting or enforcing standards for emissions of greenhouse gases;

SB 1541 (a) Limiting, setting or enforcing standards for emissions of greenhouse gases;

The Secretary of State, in accordance with ORS 297.210, shall audit the op- [4] SB 1541 eration and effectiveness of the Climate Superfund Cost Recovery Program no less often than once every five years.

(a) DistributionProviding grants or loans for climate change resilience projects, or other climate change resilience activities, consistent with the resilience implementation strategy establishedestab- lished under section 3 of this 2026 Act;

(4) Thirty percent of the moneys deposited in the account each biennium shall be trans- ferred to the Department of the State Fire Marshal for wildfiredeposit resilience,in recoverythe andCommunity mitigationRisk activities.Re- duction Fund established under ORS 476.396.

(5) At least 40 percent of the moneys deposited in the account each biennium, whether expended by the Department of Land ConservationCon- servation and Development or the Department of the State Fire Marshal, shall be expendedfor ongrants climate change resilience projects that benefit environmental justice communities, as determined pursuant to rulesthe adoptednine underfederally sectionrecognized 3Indian oftribes in this 2026state. Act.

(6) At least 40 percent of the moneys deposited in the account each biennium, whether expended by the Department of Land Conservation and Development or the Department of the State Fire Marshal, shall be expended on climate change resilience projects that benefit environmental justice communities, as determined pursuant to rules adopted under section 3 of this 2026 Act.

or (b)[5] 26A-Eng. U.S.C.

SB 1541 (b) 26 U.S.C.

(7) “Entity” means any individual, trustee, agent, partnership, association, corporation, [5] SB 1541 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.

(4)[6] RulesA-Eng. of procedure for appeals to the Director of the Department of Environmental Quality under section 12 of this 2026 Act.

SB 1541 (4) Rules of procedure for appeals to the Director of the Department of Environmental Quality under section 12 of this 2026 Act.

(3) To determine the amount of covered greenhouse gas emissions attributable to any entity, the Department of Environmental Quality shall use the best publicly available fossil [6] SB 1541 fuel volume data and the methodologies developed by the Environmental Quality Commission under section 10 of this 2026 Act.

(9)(a)[7] TheA-Eng. unpaid balance of a cost recovery demand shall become due immediately if:

SB 1541 (9)(a) The unpaid balance of a cost recovery demand shall become due immediately if:

(10) The department shall deposit cost recovery demand payments collected under this section in a suspense account established under ORS 293.445 for the purpose of receiving the [7] SB 1541 demand payments.