Two customers of a natural gas company in Oregon filed a class action lawsuit in Oregon Circuit Court alleging that the company misrepresented the “Smart Energy” program in which they enrolled. They alleged that the company told customers that it would completely offset the carbon emissions attributable to the monthly natural gas use of customers enrolled in the Smart Energy program, for which customers pay extra. The plaintiffs further alleged that the company used the Smart Energy funds to purchase “offsets” from manure digesters at industrial dairies that “lack the core attributes of a bona fide offset: additionality, uniqueness, measurability, verifiability, and permanency.” Other allegedly deceptive actions included use of Smart Energy funds to pay the program’s marketing and administration costs. The customers also alleged that the company potentially used offsets for compliance requirements. They asserted that the company violated the Oregon Unlawful Trade Practices Act and also asserted a breach of contract claim. They requested injunctive and equitable relief, statutory and actual damages, and attorney fees.

Climate washing class action lawsuit brought by gas company customers who alleged that the company's "Smart Energy" program was deceptively marketed as offsetting emissions from customers' gas use.

Blumm v. Northwest Natural Gas Co.

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Gas Company Customers Said Carbon Offset Program Was Deceptive

Filed

United States of America

Oregon

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The management and allocation of funds, assets and investments to meet various objectives

A tax advantage is a fiscal incentive where the government reduces or exempts selected activities, goods or actors from taxes.

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A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

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A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

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The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

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Gas Company Customers Said Carbon Offset Program Was Deceptive

Target

Policy instrument

Risk

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance