Oregon's MAIN Cap and Trade Bill

Oregon Senate Bill 80

THIS is Oregon's MAIN Cap and Trade Bill. This is the bill that will impose outrageously
high taxes on all energy sources (gasoline, diesel, heating oil, coal, etc) as well as drive prices up on *ALL* consumer goods and foods (since it takes diesel or gasoline truck to get those goods to market!!)

THIS bill is being created by Oregon Stage Government because it can use the lie of
"Global Warming" to TAX YOU MORE!!! "Global Warming" is about MONEY and government RAPING your wallet!

Source for bill below: http://www.leg.state.or.us/09reg/measures/sb0001.dir/sb0080.intro.html

75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session

NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .

LC 998

Senate Bill 80

Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski)

SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

Directs Environmental Quality Commission to adopt by rule
greenhouse gas cap-and-trade system to achieve greenhouse gas
emissions reduction goals. Requires application of cap-and-trade
system to all energy facilities. Allows suspension of state's
cap-and-trade system if federal cap-and-trade system is adopted.

Allows commission to require registration and reporting relating
to greenhouse gas emissions and to establish registration fees.

Establishes Climate Improvement Fund. Continuously appropriates
moneys in fund to Department of Environmental Quality for certain
expenses related to greenhouse gas emissions.

Creates Oregon Climate Initiative Task Force. Authorizes task
force to develop and present design recommendations for
greenhouse gas cap-and-trade system to department. Sunsets task
force on January 2, 2012.

Requires department to report on development of greenhouse gas
cap-and-trade system and to submit to Seventy-sixth Legislative
Assembly rules adopted by commission that implement cap-and-trade
system.

Declares emergency, effective on passage.

A BILL FOR AN ACT
Relating to greenhouse gas emissions; creating new provisions;
amending ORS 468A.210; appropriating money; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:

{ + DEFINITIONS + }

SECTION 1. { + As used in sections 1 to 8 of this 2009 Act:

(1) 'Allowance' means an authorization, issued by a state or
province within the capped region, to emit one metric ton of a
greenhouse gas as measured in carbon dioxide equivalent.

(2) 'Capped region' means this state and provinces or other
states that have obtained reciprocity to permit the trading and
retirement of allowances and offsets among their greenhouse gas
cap-and-trade systems.

(3) 'Carbon dioxide equivalent' means the quantity of a given
greenhouse gas multiplied by a global warming potential factor.

(4) 'Global warming potential factor' means the radiative
forcing impact of one mass-based unit of a given greenhouse gas
relative to an equivalent unit of carbon dioxide over a given
period of time.

(5) 'Greenhouse gas' has the meaning given that term in ORS
468A.210.

(6) 'Greenhouse gas cap-and-trade system' has the meaning given
that term in ORS 468A.210.

(7) 'Offset' means a reduction in emissions of one metric ton
of a greenhouse gas, as measured in carbon dioxide equivalent,
that is not subject to the greenhouse gas cap-and-trade system
and that is used to offset greenhouse gas emissions subject to
the cap-and-trade system. + }

{ +
GREENHOUSE GAS CAP-AND-TRADE SYSTEM + }

SECTION 2. { +

(1) The Environmental Quality Commission shall,
after consulting with the Department of Environmental Quality,
adopt by rule a greenhouse gas cap-and-trade system to reduce
greenhouse gas emissions in an amount not to exceed the
greenhouse gas emissions reduction goals set forth in ORS
468A.205. The greenhouse gas cap-and-trade system shall include,
but not be limited to:

(a) A declining cap on total greenhouse gas emissions from:

(A) Air contamination sources located in this state as
specified by the commission;

(B) The generation and transmission of electricity used within
this state; and

(C) The combustion of fuel within this state;

(b) A requirement that the following persons retire allowances
or offsets equal to greenhouse gas emissions subject to the cap
established under paragraph (a) of this subsection that the
commission determines are attributable to such persons:

(A) The owner or operator of an air contamination source
specified by the commission pursuant to paragraph (a)(A) of this
subsection, beginning January 1, 2012;

(B) The importer, seller, deliverer or distributor of
electricity for use in this state, beginning January 1, 2012; and

(C) The importer, seller, deliverer or distributor of fuel for
use in this state, beginning January 1, 2015;

(c) Procedures for the trading and retirement of allowances and
offsets, including allowances and offsets from other states or
provinces in the capped region;

(d) Requirements for recordkeeping and compliance reporting;

(e) Requirements for third-party verification of greenhouse gas
emissions;

(f) Procedures for the commission to issue allowances to
persons listed under paragraph (b) of this subsection;

(g) Procedures, protocols and limitations for the generation
and retirement of offsets;

(h) Minimum standards that the greenhouse gas cap-and-trade
systems of a province or another state must meet to obtain
reciprocity with Oregon's greenhouse gas cap-and-trade system;
and

(i) In addition to any other penalty provided by law, a
requirement that any person that fails to retire allowances or
offsets equal to its greenhouse gas emissions pursuant to
paragraph (b) of this subsection must retire additional
allowances for excess greenhouse gas emissions.

(2) In adopting rules pursuant to subsection (1) of this
section, the commission shall consider:

(a) Establishing applicability thresholds, exemptions and
deferrals concerning the greenhouse gas cap-and-trade system;

(b) Adopting provisions needed to obtain and maintain
reciprocity with the greenhouse gas cap-and-trade system of
another state or a province within the capped region;

(c) Including greenhouse gas emissions from the production of
fuel used within this state to the emissions subject to the cap
under subsection (1)(a) of this section, including but not
limited to fuel that is produced outside of this state; and

(d) Adopting criteria and procedures to certify providers of
third-party verification services for greenhouse gas emissions.

(3)(a) The commission shall adopt a greenhouse gas
cap-and-trade system pursuant to this section no later than
December 31, 2010.

(b) The commission shall implement the greenhouse gas
cap-and-trade system no earlier than July 1, 2011. + }

{ + APPLICATION OF THE GREENHOUSE GAS CAP-AND-TRADE + }
{ + SYSTEM TO ENERGY FACILITIES + }

SECTION 3. { + The Legislative Assembly finds that:

(1) Climate change poses a serious threat to the economic
well-being, public health, safety, natural resources and
environment of this state;

(2) The Governor's Climate Change Integration Group January
2008 final report determined that electricity consumption
constituted the second largest source of greenhouse

gas emissions in Oregon during 2004;

(3) The rapidly increasing scientific understanding of climate
change, and of the current and future projected impacts of
climate change, represents a clear showing of a significant
threat to the public health, safety and the environment; and

(4) The significant threat to the public health, safety and the
environment requires application of sections 1 to 8 of this 2009
Act to all energy facilities and facilities, both as defined in
ORS 469.300, operating in this state for which a site certificate
was issued before the effective date of this 2009 Act. + }

SECTION 4. { + (1) Notwithstanding ORS 469.401, sections 1 to
8 of this 2009 Act apply to all energy facilities and facilities,
both as defined in ORS 469.300, operating in Oregon.

(2) Pursuant to the greenhouse gas cap-and-trade system adopted
by rule by the Environmental Quality Commission under section 2
of this 2009 Act, a facility for which a site certificate was
issued before the effective date of this 2009 Act shall be issued
allowances, at no cost, equivalent to the carbon dioxide offsets
the facility obtained pursuant to ORS 469.503 (2)(c)(B) and (C)
if the facility is required to retire allowances or offsets
pursuant to the greenhouse gas cap-and-trade system. The
commission shall consult with the Energy Facility Siting Council
to determine the amount of allowances that are equivalent to
carbon dioxide offsets obtained by a facility. + }

SECTION 5. { + (1) After the effective date of this 2009 Act,
a proposed facility shall be found in compliance with standards
set forth in ORS 469.503 (2)(a) and (b) if:

(a) The facility is subject to the greenhouse gas cap-and-trade
system adopted by rule by the Environmental Quality Commission
pursuant to section 2 of this 2009 Act; and

(b) The Energy Facility Siting Council by rule or order
determines the greenhouse gas cap-and-trade system provides a
reduction in carbon dioxide emissions equal to or more than the
standards set forth in ORS 469.503 (2)(a) and (b).

(2) If, after the effective date of this 2009 Act, the council
by rule or order determines the greenhouse gas cap-and-trade
system provides a reduction in carbon dioxide emissions that is
less than the standards set forth in ORS 469.503 (2)(a) and (b),
the council may by rule or order determine that compliance with
the cap-and-trade system constitutes partial compliance with the
standards set forth in ORS 469.503 (2)(a) and (b). + }

{ + GREENHOUSE GAS EMISSIONS REGISTRATION AND REPORTING + }

SECTION 6. { + (1) In addition to any registration and
reporting that may be required under ORS 468A.050, the
Environmental Quality Commission by rule may require registration
and reporting regarding greenhouse gas emissions by:

(a) Any person who imports, sells, delivers or distributes for
use in this state electricity, the generation of which emits
greenhouse gases; and

(b) Any person who imports, sells, delivers or distributes for
use in this state fuel that generates greenhouse gases when
combusted, including but not limited to fuel that is produced
outside this state.

(2) By rule the commission may establish a schedule of fees for
persons required to register pursuant to this section or ORS
468A.050. The commission shall base the fees upon the anticipated
cost of developing and implementing the programs for which the
persons register, including but not limited to the costs of
processing registrations, conducting compliance inspections and
enforcement. A registration must be accompanied by any fee
specified by the commission in rule. Subsequent annual
registration fees are payable as prescribed by rule of the
commission.

(3) The implementation date specified in section 2 (3) of this
2009 Act does not apply to registration and reporting that may be
required under this section and ORS 468A.050. + }

{ +
TRANSITION TO A FEDERAL GREENHOUSE GAS CAP-AND-TRADE SYSTEM + }

SECTION 7. { + If a federal greenhouse gas cap-and-trade
system is adopted after the effective date of this 2009 Act, the
Environmental Quality Commission by rule may suspend all or any
part of Oregon's greenhouse gas cap-and-trade system if the
commission determines that the corresponding part of the federal
greenhouse gas cap-and-trade system provides:

(1) A reduction in greenhouse gas emissions in Oregon that is
equal to or more than the emissions reduced under Oregon's
greenhouse gas cap-and-trade system; or

(2) A reduction in greenhouse gas emissions in Oregon that is
less than the emissions reduced under Oregon's greenhouse gas
cap-and-trade system, provided that:

(a) The federal cap-and-trade system recognizes and values
allowances issued by this state; and

(b) Federal law allows this state to implement other programs
to achieve the greenhouse gas emissions reduction goals set forth
in ORS 468A.205. + }

{ + CLIMATE IMPROVEMENT FUND + }

SECTION 8. { + (1) The Climate Improvement Fund is established
in the State Treasury, separate and distinct from the General
Fund. Interest earned by the Climate Improvement Fund shall be
credited to the fund. Moneys in the fund are continuously
appropriated to the Department of Environmental Quality for the
purposes specified in subsection (3) of this section.

(2) The Climate Improvement Fund consists of:

(a) Funds appropriated by the Legislative Assembly; and

(b) Any revenues derived from gifts or grants given to the
state for the purposes described in subsection (3) of this
section.

(3) The department shall use moneys in the Climate Improvement
Fund to:

(a) Reduce or sequester greenhouse gas emissions;

(b) Mitigate the impacts of climate change;

(c) Reduce economic impacts of the greenhouse gas cap-and-trade
system;

(d) Improve energy efficiency and conservation; and

(e) Administer Oregon's greenhouse gas cap-and-trade system and
any other greenhouse gas emissions programs implemented to
achieve the greenhouse gas emissions reduction goals set forth in
ORS 468A.205. + }

{ + OREGON CLIMATE INITIATIVE TASK FORCE + }

SECTION 9. { +

(1) There is created the Oregon Climate
Initiative Task Force that shall be responsible for developing
and presenting design recommendations for a greenhouse gas
cap-and-trade system to the Department of Environmental Quality.

(2) The Oregon Climate Initiative Task Force shall consist of
nine members appointed by the Governor. The members shall be
selected based upon their ability to represent the best interests
of Oregon as a whole. To the extent possible, members of the task
force shall have general knowledge in the areas of climate
change, environmental protection, public health and the economy
and shall represent the geographic diversity of this state.

(3) In addition to the public members, the Director of the
Department of Environmental Quality and the Director of the State
Department of Energy shall be nonvoting ex officio members of the
task force.

(4)(a) In order to develop its design recommendations, the task
force shall confer with:

(A) A broad spectrum of Oregon's public at large;

(B) Stakeholders, including but not limited to businesses,
environmental organizations and labor organizations; and

(C) Agencies of state government, as defined in ORS 174.111.

(b) To facilitate the duties of the task force in conferring
with the public under this subsection, the Department of
Environmental Quality shall organize and conduct public hearings
throughout the state to solicit public testimony representative
of all segments of Oregon's population.

[ After the "Public Hearings" the Department of Environmental Quality

will do ANY DAMN THING IT WANTS TO DO! ]

(5) In developing its design recommendations, the task force
shall consider the Environmental Quality Commission's mandate
under section 2 of this 2009 Act to adopt by rule a greenhouse
gas cap-and-trade system in order to reduce greenhouse gas
emissions in an amount not to exceed the greenhouse gas emissions
reduction goals set forth in ORS 468A.205.

(6) In developing its design recommendations, the task force
shall evaluate the following:

(a) The potential costs and benefits of the design
recommendations to the environment, public health and economy of
Oregon, including but not limited to the potential costs and
benefits of coordinating the design recommendations with the
regional greenhouse gas cap-and-trade system proposed by the
Western Climate Initiative in its design recommendations dated
September 23, 2008, provided that the task force may consider
revisions to the September 23, 2008, design recommendations;

(b) The distribution of allowances among persons subject to the
design recommendations;

(c) The use of offsets to reduce the costs of complying with
the design recommendations, to encourage reductions of emissions
not subject to the greenhouse gas cap-and-trade system and to
foster innovation in the manner in which greenhouse gas emissions
may be reduced;

(d) The use of financial measures to reduce or sequester
greenhouse gas emissions, to mitigate the impacts of climate
change, to reduce the economic impacts of the design
recommendations and to improve energy efficiency and
conservation; and

(e) Other issues, as determined by the task force, related to
the design of a greenhouse gas cap-and-trade system for Oregon.

(7) If there is a vacancy for any cause, the Governor shall
make an appointment to become effective immediately.

( Cool

The Governor shall select a chairperson and a vice
chairperson from among the members of the task force.

(9) The task force shall meet at times and places specified by
the call of the chairperson or by a majority of its voting
members.

(10) A majority of the voting members of the task force
constitutes a quorum for the transaction of business. Official
action by the task force requires the approval of a majority of
its voting members.

(11) At the request of the task force, the Department of
Environmental Quality may form work groups to provide information
and expertise to the task force. The members of the work groups
may include representatives of state agencies, stakeholders and
others with relevant information and expertise.

(12) Voting members of the task force are not entitled to
compensation for their participation, but may be reimbursed for
actual and necessary travel and other expenses incurred by them
in the performance of their official duties in the manner and
amounts provided for in ORS 292.495. Claims for expenses incurred
in performing functions of the task force shall be paid out of
funds appropriated to the department for that purpose.

(13) The department shall provide staff support to the task
force.

(14) All agencies of state government, as defined in ORS
174.111, are directed to assist the task force in the performance
of its duties and, to the extent permitted by laws relating to
confidentiality, to furnish such information and advice as the
members of the task force consider necessary to perform its
duties.

(15)(a) The task force shall present its initial design
recommendations to the department no later than July 1, 2010.

(b) The task force shall present its final design
recommendations to the department no later than October 1,
2010. + }

{ + REPORT TO LEGISLATIVE ASSEMBLY IN 2011 + }

SECTION 10. { +
(1) The Department of Environmental Quality
shall submit the rules adopted by the Environmental Quality
Commission pursuant to section 2 of this 2009 Act to the
Seventy-sixth Legislative Assembly no later than February 1,
2011.

(2) The Department of Environmental Quality shall submit to the
Seventy-sixth Legislative Assembly, in the manner provided by ORS
192.245, by February 1, 2011, a report that sets forth the bases
for the significant policy choices made by the commission in the
development of these rules. The report must also:

(a) Discuss the potential costs and benefits of the greenhouse

gas cap-and-trade system to the environment, public health and

economy of Oregon; and (b) Specify how the department:

(A) Facilitated hearings of the Oregon Climate Initiative Task
Force under section 9 (4) of this 2009 Act; and

(B) Considered the design recommendations presented by the task
force in the department's development of the greenhouse gas
cap-and-trade system. + }

{ +CONFORMING AMENDMENT + }

SECTION 11. ORS 468A.210 is amended to read:
468A.210. As used in ORS { - 352.247 and - } 468A.200 to
468A.260:

(1) 'Global warming' means an increase in the average
temperature of the earth's atmosphere that is associated with the
release of greenhouse gases.

(2) 'Greenhouse gas' means any gas that contributes to
anthropogenic global warming including, but not limited to,
carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons and sulfur hexafluoride.

(3) 'Greenhouse gas cap-and-trade system' means a system that:

(a) Establishes a total cap on greenhouse gas emissions from
{ - an - } identified { - group of emitters - }
{ + sectors + };

(b) Establishes a market for allowances { - that represent
emissions - } { + and offsets + }; and

(c) Allows trading of allowances { - among greenhouse gas
emitters - } { + and offsets + }.

{ +
MISCELLANEOUS + }

SECTION 12. { + Sections 1 to 8 of this 2009 Act are added to
and made a part of ORS chapter 468A. + }

SECTION 13. { + Sections 9 and 10 of this 2009 Act are
repealed on January 2, 2012. + }

SECTION 14. { + The unit captions used in this 2009 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2009 Act. + }

SECTION 15. { + This 2009 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2009 Act takes effect on
its passage. + }