AOI Works to Resolve Greenhouse Gas Issues – Expected to Come to Head in Next Two Weeks

There is escalating pressure being applied to legislators by the Governor’s office/environmental community to move out GHG measures opposed by AOI, labor, other members of the business community, and, by most analysis, a majority of legislators.  Damage to Oregon jobs with little impact on GHG is the most cited reason for opposition.

The Natural Resource Subcommittee of the Way & Means Committee (budget), chaired by Senator Vicki Walker (D - Eugene), now appears to be the OK Corral for GHG issues.  In play are:

• SB 80, the Governor's Cap & Trade bill, now morphed into a Cap & Restrict bill.  Enthusiasm for a GHG Cap bill has cooled considerably due to concern over severe damage to the Oregon economy and the fact that EPA and Congress are planning to regulate GHGs.
• HB 2186, another Governor’s bill.  Originally, this measure gave sweeping authority to the DEQ to ban retail and commercial sale of items “venting” GHGs (this section has now been removed), ban some types of auto and truck tires, mandate equipment on heavy trucks passing throughout the state, and require the use of “low carbon” gasoline in Oregon.  The bill ran into trouble when it became clear that it would grant new broad authorities to the DEQ before anyone had any idea how much GHG would be reduced by any of the measures or what they would cost.
• Expected Business Alternative, a PacifiCorp/AOI/Business Groups/Labor proposal for reducing GHGs in a studied manner not damaging to Oregon job creation.

The subcommittee, under Senator Walker is expected to take up GHG issues as soon as the week of June 7.  Senator Walker is an experienced legislator widely known for her independence and persistence, which is fortunate given that in the waning days of legislative session, vote trading and deal making between legislators becomes more contagious than the swine flu.