04/28/2007

By AARON CLARK  / Associated Press

Pressure is mounting on Oregon lawmakers to take a lead on climate change issues as they consider bills to establish greenhouse gas emission reduction goals and statewide limits for pollution by electricity providers.

While businessmen told the House Committee on Energy and the Environment Friday that the state should adopt the bills to secure a place in the emerging clean energy industry, low carbon economy, winemakers and ski resort representatives said they were already feeling the effects of a warmer planet.

"Early movers in this situation frequently benefit the most," said Don Furman, a senior vice president at PPM Energy, the second largest wind energy producer in the U.S. "There are hundreds of billions of capital being amassed and prepared to be invested to provide solutions to climate change — this is a massive opportunity for Oregon."

But Pat Dudley, a winemaker from Bethel Heights Vineyard, urged approval for a different reason.

"In the last ten decades the wines have been changing their character, we are seeing a shift in the growing season. They are higher sugars, higher alcohols, less finesse," said Dudley.

Heidi Logosz, a spokeswoman for Mt. Hood Meadows ski resort said two years ago the resort closed three times during the winter season for lack of snow.

"Ski resorts are poised to feel the impact of global warming acutely," said Logosz. "We are, undeniably, the poster child."

The bills would set goals to begin reducing the growth of greenhouse gas emissions generated by the state by 2010; a 10 percent reduction below 1990 levels by 2020 and a 75 percent reduction by 2050.

The bill would also establish a climate change research institute for the state's university system and a commission to coordinate state and local efforts to implement climate change policies.

Jeremiah Baumann, a spokesman for Oregon State Public Interest Group, said that if the state adopted the legislation it would help it "render a whole new world of regulation over the next three to 10 years."

"Getting in front of the right policies for reducing global warming pollution, our businesses will have a competitive advantage as federal programs come into play," said Baumann.

Under a second bill utilities and other major polluters would be forced to meet emission reduction targets. The so-called cap-and-trade system would allow firms to buy or sell pollution credits so the total pollution levels meet a general cap.

Industry and utilities were less enthusiastic about this initiative.

"There is a train moving down the track and it is called 'carbon regulation' and we actually believe it is best to get ahead of that," said Dave Robertson, a spokesman for Portland General Electric. But Robertson said the utility favored a national or regional cap-and-trade system over a state program because there weren't enough trading partners in Oregon.

"We don't believe state cap-and-trade makes much sense."

But supporters said it gives Oregon a chance to be be at the center of a regional cap-and-trade carbon market.

"Just because it's a state specific program doesn't mean it couldn't be a part of a broader market trading program," said Dave Vant Hof, a renewable energy advisor for Gov. Ted Kulongoski.

If Oregon adopts the bill, the program could also be used as a model by the Western Regional Climate Action Initiative, a group comprised of Washington, California, Oregon, Arizona, New Mexico and British Columbia, which has committed to setting pollution reduction targets and emission reduction goals.

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The bills are HB 3545 and HB 3543.