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Kulongoski plans 'cap and trade' greenhouse gas market

06:44 PM PST on Thursday, January 24, 2008

By SARAH SKIDMORE, Associated Press Writer

SALEM, Ore. -- Gov. Ted Kulongoski on Thursday outlined elements of his climate change goals for the 2009 Oregon legislative session, which include a proposal to reduce greenhouse gases through a "cap and trade" system.

It was the first glimpse at the plan, which builds on earlier efforts such as renewable energy standards put in place during the 2007 session.

Kulongoski said global warming already threatens the state's economy and quality of life, so it is an urgent issue.

"From rising waters during winter storms to raging forest fires and drought that threatens the future of our farms, vineyards and orchards, global warming is already threatening Oregon," he said.

Other of his goals are: addressing reduced snowpack that limits water levels in the summer, increasing resources for state and local agencies to analyze the impact of climate change on the state's resources, and encouraging more aggressive steps for energy efficiency and green building.

A cap and trade system, similar to models used in Europe, would aim to reduce pollution by requiring utilities to meet tough emissions standards. Utilities that cut their emissions even further could sell the right to emit what they don't.

Kulongoski plans a trip to Europe in April to review the cap and trade model in place there.

The final plan will be developed with advice from an upcoming report by the Climate Change Integration Group created by the governor and a Global Warming Commission, a 25-member advisory groups created by the Legislature in 2007.

The governor announced the members of the Global Warming Commission on Thursday, which included academic, business, health and environmental leaders.

"My hope for the commission is we can build on these efforts ... to get ahead of these changes and to regain control over our climate destiny," said Angus Duncan, chairman of the commission and president of the nonprofit Bonneville Environmental Foundation.

The announcement coincides with Kulongoski's signing on to a letter to the U.S. Environmental Protection Agency, along with 13 other states, that expresses frustration at the EPA's refusal to grant waivers allowing states to implement tougher requirements with lower emission standards for cars.

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