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2018R1 SB 1507 A


This bill places a cap on greenhouse gas emissions by creating a market-based compliance mechanism buying and selling credits and levy fees on private corporations that can't demonstrate compliance. Identifies CO2 as a pollutant to reduce climate change and ocean acidification. Creates advisory board to recommend expenditure of monies collected from auctions. (Same as HB 4001)

Personal Choice and Responsibility
Essentially this bill imposes a tax on corporations, which will ultimately be transferred to consumers in higher costs having a bigger impact on lower income families and businesses. It directly impacts certain persons by modifying registration and greenhouse gas reporting requirements such as household labels exhibiting compliance with greenhouse gas regulations. Auction proceeds is intended to be used to redistribute wealth to low-income assistance through supporting decarbonization projects.

Fiscal Responsibility
This bill will have a fiscal impact on 13 state agencies. It is a re-distribution of wealth through a program that places a cap on the total greenhouse gas emissions by all covered entities through setting annual allowance budgets and that provides a market-based mechanism for covered entities to demonstrate compliance with the program. The selling and buying of off-set credits allows offenders to escape state-forced closure by buying credits from opt-in entities that have excess credits. Oregon's private corporations subject to these regulations are exempt - meaning these costs are to be pass along to consumers and are not to burden the value of publically traded stocks held by shareholders. As other revenues sources, the state starts to depend on that income, but unlike other sources, it is volatile to participation as California discovered last May when only 11% of available permits were sold yielding a loss to the state budget of $490 million.

Limited Government
Significantly increases the size of government and corresponding regulations that goes beyond the subject of this bill. The background for climate change and CO2 as a pollutant is politically charged and filled with flawed science. Oregon has one of the lowest carbon emissions in the nation already. So the bill is a front for raising revenue by allowing the Environmental Quality Commission to create laws by rule based on this bill with unclear and vague objectives, technological constraints, lack of objective resources, unobtainable standards, and a lack of clear causal link between requirements. Goals are set to achieve greenhouse gas levels at least 20% below 1990 levels by 2025, 45% by 2035 and 80% by 2050. Requires Oregon Transportation Commission to prepare and submit biennial transportation decarbonization investment proposal to legislative committee.

Local Control
Rural Oregon will be hit the hardest when these fees and cost of credit are distributed to consumers, which will impact the operations in farming and forestry. These operations are dependent on motorized vehicles. Studies show that a ‘one-size-fits-all’ rule making process is swayed by litigious public interest groups that always work against what rural Oregon needs to be self-reliant.

Free Markets
Inhibits free markets by manipulating profits according to carbon emissions. Industry may have a right to appeal the collection of fees and the long-term goals according to the California Court of Appeals.



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