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Plans for Insulation Plant in Oregon Abandoned; Global Warming Gases at Issue in Lawsuits

Case Updates:

June 12, 2006

On May 8, 2006, the Sierra Club announced a victory in its lawsuit challenging a proposed manufacturing plant that would have emitted large quantities of hydrochlorofluorocarbons (HCFCs), a gas that depletes the ozone layer and contributes to global warming. HCFCs are slated to be phased out by 2010 under a federal government ban, but there is a loophole in the law that allows facilities with existing HCFC stockpiles to continue using HCFCs until 2020. Owens-Corning was attempting to take advantage of this loophole by constructing the plant before the 2010 deadline and then continuing to use HCFCs until 2020. The Sierra Club’s victory came in the form of a settlement agreement, under which Owens-Corning committed never to use “ozone depleting blowing agents” at any facility in Oregon, including the proposed plant. In addition, the company agreed to contribute $300,000 to various supplemental environmental projects to promote energy efficiency and increase the supply and use of renewable energy throughout the state of Oregon. The settlement represents an important victory for one of the Sierra Club’s highest priority campaigns, which aims to promote smart energy solutions and prevent global warming.

May 8, 2006

Today the Owens-Corning Company announced that it was canceling plans to build a foam insulation manufacturing plant in Gresham, Oregon that would have produced more greenhouse gases each year than 100,000 cars combined. The news is a victory for the Sierra Club, which has been challenging the plant's construction in state and federal courts since 2004. The proposed plant was slated to use hydrochlorofluorocarbons (HCFCs), a toxic gas that depletes the ozone layer and contributes to global warming. The original construction announcement sounded alarms because HCFCs are slated to be phased out by 2010 under a federal government ban issued in 1990. However, there is a loophole to this prohibition—if a facility has existing stockpiles of HCFCs, it may continue to use the stockpiles until 2020. Putting two and two together, it appeared likely that Owens-Corning was planning to use the new Gresham plant to stockpile HCFCs in an attempt to skirt the 2010 phase-out deadline. After three lawsuits and intense public pressure, the company has now finally agreed to abandon the Gresham plant.

Details and Documents:

Opinion and Order
June 8, 2006, United States District Court for the District of Oregon

Stipulated Order of Dismissal
June 8, 2006, United States District Court for the District of Oregon

Owens Corning drops plans for Gresham plant
May 8, 2006, by Associated Press, KGW Northwest News Channel 8