State sets tough emission goals

Business groups come out in support of a new law to reduce greenhouse gas emissions.

At a signing ceremony for the state's first climate change law on Tuesday, Gov. Ted Kulongoski made a forceful case for making Oregon the epicenter of the international sustainability movement.

The law the governor signed calls for the state to reduce annual greenhouse gas emissions 10 percent below 1990 levels by 2020 and 75 percent below those levels by 2050.

That's a staggering task, especially when one considers Oregon is headed in the other direction.

Between 1990 and 2003, Oregon's greenhouse gas emissions increased 32 percent, according to the latest data from the U.S. Energy Information Administration. That's more than double the 16 percent national increase.

Granted, Oregon's population increased significantly during that time period, but even when the numbers are adjusted to reflect population growth, Oregon still lags behind its West Coast peers.

In 1990, Oregon ranked third-best nationwide in per capita carbon dioxide emissions. Since that time, California and Idaho improved their emissions profile and leapfrogged Oregon, which fell to fifth in per capita emissions. Washington also improved.

The effects of climate change will be especially dire in Oregon. The state depends on a healthy blanket of snow and the ensuing spring runoff for its energy and agricultural needs. Pinot noir grapes, a notoriously fickle crop and a staple of the Oregon wine industry, will be more difficult to grow with even the slightest change in Oregon's climate. The state's robust ski industry will shut down without fresh powder.

Businesses are responsible for nearly all greenhouse gas emissions -- homes account for only 5 percent.

Yet while several local companies are national leaders in mitigating their environmental footprint, the majority of Oregon businesses have yet to draft a climate change policy. Several big-name local manufacturers have no formal plans for addressing their environmental footprint.

However, Associated Oregon Industries, the state's largest business group, endorsed the bill the governor signed this week.

Portland General Electric, the state's biggest utility, began offering renewable power in 1999. More than 1,300 businesses, roughly 1 percent of PGE's customers, have signed up, including Hot Lips Pizza, Ron Tonkin Chevrolet and Ken's Artisan Bakery. More are in the queue.

"We've noticed an acceleration over the last 12 to 18 months," said Thor Hinckley, PGE's manager of renewable power.

The companies pay less than a 10 percent increase on their electricity bills to ensure their power comes from green sources, like wind turbines.

Some say when new federal data is released next April, it will show an improved picture.

"We're at the beginning of a groundswell," said Martin Goebel, executive director of Sustainable Northwest. "Even many rural businesses are taking [climate change] seriously."

Regardless, there's a huge gulf between Oregon's reality and the state's goals.

The Center for Climate Strategies estimates Oregon's greenhouse gas emissions will continue rising at 7 percent annually until 2020. If that continues until 2050, the state would need to offset nearly 130 million metric tons of carbon dioxide emissions.

Companies can purchase such offsets on the Chicago Climate Exchange, a public listing of carbon sequestration projects. The credits fund projects that capture emissions, like tree planting.

At today's prices, offsetting 130 million metric tons would cost the state and local businesses nearly $500 million.

The increasingly green governor doesn't plan on waiting for voluntary support from businesses.

He announced Tuesday that he's asked the state's Department of Environmental Quality to draft emissions reporting guidelines for the private sector.

The new law also creates an Oregon Global Warming Commission which will spearhead efforts to meet the state's ambitious goals.

Kulongoski also promised the 2009 Legislature would once again debate creating a cap-and-trade system for carbon emissions, which would place limits on emissions and allow green businesses to benefits by selling unused credits.

"If you want to know where I'm going this next session, this is the issue," Kulongoski said. "Why can't a global cap-and-trade exchange ... be developed here in Oregon, in Portland, Ore., and we be the state which is the national leader on this cap-and-trade [system], not only for North America, but for Asia and around the world."