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 & Invest legislation in 2019.
See our Mission and Key Policy Principles Here
What Is Cap and Invest?
Cap & Invest, also known as 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 Invest 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 & Invest 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 & Invest is expected to be 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