The proposed western region carbon trading program released last week would cap power generator emissions beginning in 2012 at the estimated level for that year. It would then roll back emissions to 15 percent below the levels in 2005 by the year 2020, Western Climate Initiative representatives announced July 29. Unsettled is the emissions baseline against which greenhouse gas reductions will be measured. The western-wide emissions reduction target is far less ambitious than California’s, which sets a 30 percent reduction goal by 2020 under the state climate change law AB 32. The western plan, like the one proposed by California regulators, would regulate generators that are considered first deliverers of power to the grid. WCI representatives said during a conference in San Diego this week that there would be a minimum level of auctions, but that the percentage was still in flux. The proposal would allow the trading of auctioned emission credits across borders Allowing the buying and selling of auctioned credits across the region instead of limiting them to the partner states concerned the Sacramento Municipal Utility District. The muni, which runs its power plants on natural gas, is worried that out-of-state coal-fired units could gain an advantage because of that fuel’s lower price. The western regional climate change plan also limits the amount of carbon offsets that can be used to meet emission limits. The proposal would allow one-tenth of total emissions to be covered by offsets. However, some protested that the offset level was too high. The Union of Concerned Scientists urged that the 10 percent offset level be limited to one tenth of expected carbon reductions, not estimated emissions. Another key issue for stakeholders was to ensure regional partners don’t undermine competitiveness by favoring their home industries with lenient emissions policies. For the program to fly, all participating states and provinces must enact legislation to allow implementation of a carbon cap-and-trade program. There were calls for setting public deadlines for the enactment of the laws. The partners to the initiative include Arizona, California, Montana, New Mexico, Oregon, Utah, Washington, and the Canadian provinces of British Columbia, Manitoba, Ontario, and Quebec.
