Oregon Climate Action Program
The Oregon Climate Action Program in House Bill 2020B (2019 Session) passed the House of Representatives but did not become law after it did not pass in the State Senate.
Oregon Climate Action Program - Summary and Analysis
The Oregon Climate Action Program - HB 2020B
Summary of Oregon Climate Action Program - HB2020B
FAQ - Explaining the Cap-and-Trade
a market based approach to reducing greenhouse gas emissions across multiple
sectors in the economy. A cap-and-trade program sets a firm cap on emissions that
declines gradually over many years to achieve specified greenhouse gas
reduction goals. The state distributes a fixed quantity of emissions allowances
each year. Each allowance permits an entity to produce 1 ton of emissions per
year. Large emitters who are covered by the program either reduce emissions or acquire
an emissions allowance. Emitters can acquire an allowance directly through
auction, through trade with other entities, or in certain cases, they may
receive allowances directly from the state.
creates a carbon market that incentivizes emissions reductions through innovation
and investments in clean technologies. It imputes a carbon price on greenhouse
gas emissions that encourages reductions to occur in the economy where they
cost least. The total quantity of emissions across sectors is fixed by the cap,
but market incentives determine how reductions are achieved. Cap-and-trade is widely
viewed as an economically efficient and environmentally effective approach to
addressing climate change.
As of 2018, seventy national and sub-national jurisdictions
worldwide have either implemented or scheduled carbon pricing programs. Their
combined emissions represent approximately 20% of global greenhouse gas
emissions. This list includes ten U.S. states, Canada, Mexico, China, and
Europe. The total value of the carbon priced under these initiatives exceeds $79
The first use of a
cap-and-trade system was in the 1990s in the U.S. to address sulphur dioxide emissions
responsible for acid rain. Today, nine Northeast and Mid-Atlantic states
participate in the Regional Greenhouse Gas Initiative (RGGI), an emissions
trading program to reduce greenhouse gas emissions in the power sector. Other
states are now looking to join RGGI and RGGI states are exploring an extension
of the program to include transportation emissions. California launched its
cap-and-trade program in 2013 as part of the larger Western Climate Initiative.
It covers emissions from transportation, industry, and the power sector.
Oregon measures GHG emissions primarily by receiving
emissions data from the emissions sources via the GHG Reporting Program at the
Department of Environmental Quality. That program collects emissions data from
companies supplying fossil fuels such as gasoline, diesel and propane, electric
and natural gas utilities, as well as large industrial emitters. Click here for
more information about the GHG reporting program.
figure below shows how Oregon's GHG emissions have changed since 1990. Most
recent estimates for emissions in 2017 are around 65 million tons, compared to
56 million tons in 1990. Oregon's emissions did not rise gradually over this
period, but rather rose sharply in the 1990s to a peak of 70 million tons in
2000. Emissions were roughly stagnant through the early 2000s, before declining
with the onset of the national economic recession in 2008. Emissions have risen
as Oregon's economy has rebounded in recent years. This rise is chiefly from
emission increases in the transportation sector. For more information Oregon's
GHG emissions see data collected by the Department of Environmental Quality and the most recent report from the Oregon Global Warming Commission.
already implemented many programs aimed at transitioning to clean energy,
including energy efficiency initiatives, a renewable portfolio standard, a low
carbon fuels standard, electric vehicle incentives, and a mandate to eliminate
coal from Oregon’s electricity mix by date-certain. None of these policies
directly regulate greenhouse gas emissions. They do, however, contribute to
emissions reduction through the transition to greater efficiency and cleaner
energy technologies. These programs can complement a cap-and-trade program in
Oregon, as they have in other jurisdictions, by reducing a covered entity’s
reported emissions and its demand for allowances.