HF Sinclair Corp. v. Oregon Department of Environmental Quality

The Portland Business Journal reported that fuel refiner HF Sinclair had withdrawn its challenge to Oregon Department of Environmental Quality (DEQ) orders that gave free credits under Oregon’s Climate Protection Program to Shell, from whom the refiner acquired a Washington refiner in 2021. DEQ told the publication that a settlement between HF Sinclair and Shell had fully resolved Sinclair’s claims against DEQ.

An oil refiner filed a lawsuit against the Oregon Department of Environmental Quality challenging the allocation of credits under Oregon’s Climate Protection Program. The Portland Business Journal reported that the lawsuit challenged free “compliance instruments” given to Shell and that the complaint asserted equal protection, due process, and Commerce Clause claims, as well as other constitutional violations. The refiner acquired a Washington refinery from Shell in late 2021, but the distribution of credits was based on imports from a three-year period ending before the acquisition. Shell therefore received the credits. A court denied the oil refiner’s request for a preliminary injunction in an earlier suit challenging the allocation of the credits.