Oregon Public Broadcasting

West Coast states will put an overall cap on global warming pollution starting in 2012.  That timeline is included in a first look at how Western states and provinces will meet a shared regional goal to lower greenhouse gas emissions.

Correspondent Tom Banse reports some of the toughest decisions are yet to come.

Seven Western states and four Canadian provinces have been working over the past year on a regional plan to reduce global warming pollution.  California, Oregon, Washington, and British Columbia are in the group.  Idaho is watching from the sidelines.  

Dave Van’t Hof advises Oregon’s governor on climate change matters.  He says the participating states have agreed on the framework for a market based “cap and trade” system.

Dave Van’t Hof: “Certainly, if you’re going to have a cap-and-trade program size matters.  The larger it is, the more cost effective it’s going to be.”

In a cap-and-trade system, the government sets an overall limit on greenhouse gas emissions from a set of polluters.

Each polluter starts with a permit for its fair share of emissions.  Then the government gradually cranks the limit down.

Polluters either cut back or buy an allocation off another business that’s figured out a cleaner way.

So who’s covered by this?  Well, at the beginning in 2012 it’ll target only stationary heavy polluters such as major utilities, cement plants, steel mills, and such.

The initial carbon cap will be set at the same level as the expected emissions for that first year.  The screws tighten only later.

Cars and trucks are actually the single biggest source of greenhouse gases in the Northwest.

Transportation fuels get an extra three years of grace.  Too generous from the point of view of researcher Eric De Place at the environmental think tank Sightline Institute in Seattle.

Eric De Place: “It’s a little discouraging that they have declined to include transportation fuels in the first round. Now it’s tremendously good news that they have included them at all.  But they are delaying it for the second round, which will be 2015.”

Washington State Senator Jerome Delvin says political realities had to figure into the design of the carbon cap.  The Tri-Cities Republican says his constituents are worried about the cost-benefit balance.

Jerome Delvin: “When the people look at those additional costs, will people say, ‘I’m all for the environment, but geez, this is getting ridiculous here. I have to pay this much to get to work?!’”

So far, there’s not enough detail available to estimate how much it will add to the already high cost of gasoline or how greenhouse gas limits will change the average electricity bill.  But Puget Sound Energy President Steve Reynolds says there’s no doubt in his mind; consumers will notice.

Steve Reynolds: “Anyone who consumes energy and is concerned about carbon, it’s going to cost more to do something about it. Any sense that this means business as usual and not paying more, I think is a bit naïve.”

Reynolds says a key unanswered question is how pollution allowances will be allocated to start.  Will they be given out for free or will the government auction them?  Right there is a huge sum of money at stake.

Over the next two months, this regional framework will be refined based on comments and reaction.  Then a final plan gets submitted to governors and legislatures for approval in 2009.

Western Climate Initiative