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Home / Washington Business - July/August 2007 / Environment: Washington gets serious about climate change |
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Environment: Washington gets serious about climate change |
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Written On: July/August 2007 |
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Written By: by Paul Schlienz |
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The drive to respond to the threat of climate change is gaining tremendous momentum in Washington. The state’s policy-makers are focusing on the issue like never before, while unprecedented efforts by individual companies to decrease their carbon imprints are in the news almost every day.
Although such efforts will surely produce additional environmental and business benefits, Washington is not a major producer of greenhouse gases thanks to the continuing dominance of hydroelectric power in the Northwest. In contrast, other regions have many more carbon-emitting coal plants.
"Most of Washington’s greenhouse gas emissions are related to the transportation sector," said Grant Nelson, governmental affairs director for the Association of Washington Business. "Overall, Washington ranks low in carbon dioxide emissions compared to all other states."
Nevertheless, the state’s political climate appears to reflect larger national trends that show global warming gaining traction as a public concern. According to a recent New York Times poll, 90 percent of Democrats, 80 percent of independents and 60 percent of Republicans support immediate steps to decrease atmospheric warming. The poll also found that 84 percent of Americans believe human activity contributes, at least to some extent, to global warming.
State sets goals and timetables
Gov. Chris Gregoire addressed these concerns in February when she issued the Washington Climate Challenge, an executive order aimed at mitigating climate change. At the core of her directive are goals and timetables for substantially reducing greenhouse gases.
"The governor is looking for a way for the state to reduce its contribution to climate change, grow jobs and reduce our dependence on imported fuels," said Matt Steuerwalt, the governor’s energy policy advisor.
The initiative establishes greenhouse gas reduction goals with a timetable and embraces a stakeholder process. Recommendations from technical working groups structured around the transportation, forestry, energy, agriculture, and residential, commercial and industrial sectors go to a Climate Action Team made up of representatives from business; government, including local, county and regional entities; higher education; labor unions; environmental organizations; and other interested parties.
"We’re encouraged by Gov. Gregoire’s non-regulatory approach," said Nelson. "She set some ambitious goals that require thoughtful and deliberative discussions by all stakeholders."
Later in February, Gregoire signed an agreement with the governors of California, Oregon, Arizona and New Mexico—later joined by the premier of British Columbia—to develop regional goals for lowering greenhouse gases. Although the goals remain undefined, the agreement endorses using market-based mechanisms to help businesses reach the plan’s ultimate goals.
Meanwhile, the Legislature also became involved in the climate change issue. SB 6001, sponsored by Sen. Craig Pridemore, D-Vancouver, emerged as the legislative response to climate change. In its original form, the measure would have imposed burdensome greenhouse gas reduction mandates on the business community with little input from those who the directives would have most affected.
After much amending, the bill that passed the Legislature codifies most of the governor’s climate change action plan, including the stakeholder process. In addition, the measure allows utility companies to defer costs related to investments in green power sources and prohibits utilities from entering into contracts of five years or more with power sources that emit more than 1,100 pounds of greenhouse gas per megawatt hour.
"We’ve had an extremely positive reaction from the business community," said Steuerwalt. 'Many business leaders came to the executive order signing and are actively engaged on the policy level with the advisory team. We’re really fortunate to have a partnership with the business community in designing these policies."
Private sector takes action
The business community has generally reacted favorably to Gregoire’s plan, in large part because employers’ viewpoints have been considered in developing a strategy. Even without governmental directives, many companies are taking steps to reduce their environmental impact.
Washington’s only coal-fired power plant is operated by the Canadian corporation TransAlta. The facility, located near Centralia, is one of the cleanest in the world. Two flu-gas desulphurization units cut sulphur dioxide emissions—a prime cause of acid rain—by 94 percent. Large amounts of excess commercial-grade synthetic gypsum produced by the process is then used to make environmentally friendly “green wallboard” for the construction industry.
TransAlta is considering storing carbon dioxide produced by the plant 3,000 to 5,000 feet underground. In addition, the company is looking at using some of its property to grow algae reactors, which would consume carbon dioxide. Ultimately, the algae become biofuel.
"TransAlta has always been a leader in environmental sustainability," said Doug Jackson, president of TransAlta’s U.S. operations and a member of the Climate Action Team. "We’ve been on the Dow Jones Sustainability Indexes for years and will continue to provide leadership roles wherever we operate."
Boeing is another corporation that has taken an active role in greenhouse gas reduction. Washington’s aerospace giant follows a five-point plan for reducing its carbon footprint.
The company is developing new environmentally friendly technology, including high-efficiency solar cells and aircraft engines that can use biofuels. Boeing also aggressively pursues manufacturing improvements. They recently made changes on the 737 production line that reduced energy consumption by 52 percent, and reduced energy consumption at their Everett plant by replacing 2,000 motors with more energy-efficient models. This made more electricity available for use by other Snohomish County Public Utility District customers.
The third plank in Boeing’s action plan is delivering progressive new products, including the new 787 Dreamliner, which will be 20 percent more fuel efficient than the 747. Boeing is also committed to improving the performance of its worldwide fleet of aircraft. For example, Boeing is specifying that its aircraft should approach airports in a constant glide when landing, which cuts carbon dioxide emissions by 12 percent.
Finally, Boeing is involving its employees in greenhouse gas reduction. Through its Trip Reduction Program, Boeing employees are being encouraged to reduce their driving by 280 million miles per year, thus striking at the heart of Washington’s biggest source of greenhouse gas emissions—transportation.
Employees like the incentive-based program because it reduces the money they spend on gas and the time they spend in traffic. Other drivers like it because it reduces congestion, and it is good for the environment because the miles not driven by Boeing employees equate to between 100,000 and 200,000 tons of carbon dioxide not generated.
"We recognize that it is good business practice to be socially responsible," said Boeing spokesman Bob Jorgensen. "Our employees are more productive when they come to work rested instead of exhausted from fighting traffic. We don’t make money paving our land to park cars. We like to put factories on our land, not parking lots."
Looking ahead
It is not yet clear what will ultimately come out of the governor’s climate action process. Policies will not come into force until after the Climate Action Team makes its recommendations before the next legislative session begins in January 2008.
Although the business community is participating in the governor’s climate change process, there is a preference for a national climate change policy that would serve Washington better than the current piecemeal system, centered on states and regions.
The Western Climate Change Agreement, which Washington joined, will likely include "cap-and-trade"—a market-based mechanism in which limits would be set on the amount of greenhouse emissions allowed for each state. States would then buy allowances to exceed the limit.
Under such a system, certain states, utilities and industries could be disadvantaged while others would profit.
"A national market would afford Washington many more opportunities to economically comply with the goals and regulations for reducing greenhouse gas emissions than a more limited geographic market, which is simple economics," observed Collins Sprague of Avista, the energy provider that serves much of eastern Washington.
Puget Sound Energy, the state’s largest electrical utility, also prefers a national or regional market with a large enough area to be cost-effective and useful, according to a company statement.
Meanwhile, the Northwest’s traditional industries, including manufacturing, timber and aluminum—all major consumers of electricity—are carefully monitoring how the state’s global warming mitigation efforts affect the cost and reliability of their energy supplies.
"While the governor’s initiative puts a lot of focus on building new jobs in clean energy, hopefully, we won’t put tens of thousands of longstanding family wage jobs in more traditional industries at risk," said Tim Boyd, of Industrial Customers of Northwest Utilities. "All of our manufacturers require large amounts of electrical energy to produce their products. Transportation, labor and regulatory costs are all relatively high in this state, so low-cost energy has been the great balancer."
Boyd is also concerned that some of SB 6001’s language may discourage investment in clean-coal technology for electrical generation.
"While not as clean as a combined-cycle gas turbine today, it might very well be as clean down the road and allow this country the advantage of our tremendous coal reserves," Boyd added. "If we truly want to be self-sufficient, we need to explore that option as well as expanding and improving our hydropower. I think you also have to put nuclear power back on the table if climate change is going to be a concern, because it is very clean in terms of its carbon footprint."
Nelson hopes the climate change action process moves slowly and cautiously, recognizing the state’s small carbon footprint and unique advantage of clean and cheap hydroelectric power. In addition, he hopes the state will emphasize practical actions to encourage energy efficiency, like converting to compact florescent light bulbs, building better buildings that conserve electricity and encouraging more fuel-efficient vehicles.
"The worst-case scenario would be if we moved too quickly and brought in policies that put our state at a competitive disadvantage by requiring cleaner energy at a much more significant cost to businesses and consumers," said Nelson. "This would reduce our competitiveness on a global scale."
Washington Climate Challenge Goals
2020
Reduce Washington’s greenhouse gas emissions to 1990 levels by 2020—a decrease of 10 million metric tons below the state’s 2004 emission levels. Also, achieve a 20-percent reduction of expenditures on fuel imported into the state through the efficient use of energy and the development of Washington’s energy resources.
2035
Reduce emissions to 25 percent below 1990 levels—30 million metric tons below 2004 levels.
2050
Reach global climate stabilization levels, reducing greenhouse emissions to 50 percent below 1990 levels—almost 50 million metric tons below 2004.
25,000
Increase Washington’s clean-energy jobs to 25,000, a big jump from the 8,400 jobs in that sector in 2004.
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