HomeMy WebLinkAboutEWEB Oregon Climate Action Program PresentationEugene Water & Electric Board
Summary of Oregon Climate Action Program (HB 2020)
Oregon’s Emission Reduction Trends
Existing policy not sufficient to meet state/global goals
Basic Structure of Climate Action Program
•Carbon Emissions are capped by the # of carbon “allowances”
issued, allowances declines over time.
•Allowances = a permit for 1 ton of carbon.
•Regulated Entities purchase allowances in auction, “trade” in a
secondary market, receive free allowances, or reduce own
emissions.
•Quantity of carbon reduction is certain, price is market driven.
Program controls keep price from being too high or low.
•Program targets large carbon emitters = over 25,000 annual tons.
Reasons EWEB Supports Carbon Pricing
•Least cost approach to reducing GHG emissions by 80% in the
electric sector, a market approach picks out efficiencies.
•Technology-neutral,–values hydropower.
•Promotes local control and decision-making re: compliance
choices or carbon reduction choices.
•Regional linkage can produce common carbon price in the West,
reducing economic leakage &creating momentum for a national
policy.
Carbon Pricing = Least Cost Policy Approach in Electric Sector
Source: E3 Low Cost Carbon Scenario Analysis, 2017
Source: BPA Sensitivity Analysis 3/16/2017
$20 difference =
significant cost benefit
For BPA customers
6
Carbon Pricing Values Clean Hydropower
Key Issues to Address in Oregon Legislation
•Revenue recycling -reduces burden of carbon pricing on Oregon
consumers & businesses; low-income communities, communities of
color, tribes, and rural communities.
•Revenue recycling in transportation sector is uncertain due to Oregon
constitutional questions –much may be left to rule-making.
•Regional linkage –Oregon needs to check a few basic boxes but retain
flexibility to customize program and bridge differences with California.
•How much should be delegated to rulemaking vs. legislated?