Oregon Lawmakers Race to Finalize Cap-and-Trade Program in Six-Week Session
Oregon lawmakers are racing against time in the current six-week legislative session to finalize details of an economy-wide cap-and-trade program. This comes after a decade of considering policies to reduce carbon emissions and a failed ballot measure in 2015 for a state-level carbon tax.
Four working groups have been established to gather input on specific areas of cap-and-trade policy design. These groups focus on Regulated Companies, Energy Supply and Transportation, Agriculture, Forestry, Fisheries, Rural Communities, Tribes, and Social Justice. Meanwhile, multiple bills have been introduced in the 2018 legislative session to tackle carbon emissions.
To minimize emissions leakage while achieving environmental and economic goals, Oregon is exploring the use of output-based updated allocation. This method can help balance the benefits of auction revenue and minimize leakage, with an opportunity cost of diverting allowance revenue. Simplified allocation rules based on available data are recommended to streamline the process.
Oregon's short legislative session poses a challenge for lawmakers to finalize policy details. However, the state's commitment to reducing carbon emissions remains strong, with working groups actively seeking input and multiple bills addressing the issue. The successful implementation of a cap-and-trade program hinges on balancing environmental goals with economic considerations and minimizing emissions leakage.
