Carbon Pricing Policy in Oregon
As a statewide organization focused on mobilizing industry support and business leadership toward advancing climate policy and instituting a price on carbon emissions while strengthening Oregon’s economy, Oregon Business for Climate supports passing Cap and Trade legislation in 2019.
See our Mission and Key Policy Principles Here
HB 2020 - Oregon's Cap and Trade Bill
HB 2020 presents a unique opportunity to advance state climate policy while strengthening Oregon’s economy. It offers a market-driven framework based on that links to other jurisdictions, and enables regulated businesses the can manage their emission reduction targets in a way that offers them the most flexibility about how to meet the cap for their business. As it has in other jurisdictions, a Cap and Trade program in Oregon will encourage business innovation, investment, and job creation.
Oregon Business for Climate will continue working with lawmakers and other key stakeholders to ensure that the language of the bill is as well defined as possible, remembering that two of our core principles are to ensure we meet our carbon reduction goals and can successfully link to the Western Climate Initiative. Click here to read the full text of the bill.
What Is Cap and Trade?
Cap and Trade is a market-based approach to reduce greenhouse gas (GHG) emissions that first originated as a way to address acid rain under the Clean Air Act of 1990. It utilizes an economy-wide cap on emissions sources to offer a flexible mechanism at the lowest cost for reducing GHG emissions. Currently, 9 states in the Northeast U.S. Regional Greenhouse Gas Initiative (RGGI) and California have cap and trade policies in place.
In Oregon, establishing a statewide carbon pricing mechanism is not a new idea. In fact, it's been discussed and studied at the legislative level for the past decade.
In 2018, a Cap and Trade proposal was introduced in the Oregon State Legislature that proposed Oregon joining the Western Climate Initiative trading market and linking to California and Quebec existing Cap and Trade programs.
The bill sought to establish a limit on the amount of Green House Gas (GHG) emissions from companies that emit 25,000 tons or more of carbon dioxide equivalent (CO2e) per year throughout the state. Although the bill did not pass, the Legislature did approve a one-time $1.4 million General Fund appropriation to support a state Carbon Policy Office with the objective of continuing to move the policy forward in preparation for the 2019 Legislative Session. The appropriation includes $650,000 to fund studies to examine the economic impact analysis of a Cap and Trade program on Oregon's jobs and economy, leakage risk of emission intensive, trade-exposed industries (EITEs), and a detailed carbon sequestration study of Oregon's forest lands.
Cap and Trade is now a top legislative priority in 2019 and we are committed to working with our lawmakers and others to ensure that Oregon's system is good for Oregonians, the environment and the economy.
Go to our Resources Page for additional links and information HERE