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Page 1: Political Science cap and trade essay for scholarship

Sadie Normoyle

Washington State- Stepping up as a Leader in Climate Change Mitigation

Sadie Normoyle

Political Science 420

Professor Singleton

December 5, 2013

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“Cities and regions are on the front line when it comes to responding to climate change. Only by harnessing all our efforts at local, regional, national and [international] level can we hope to achieve the changes needed.” –Neil Swannick

Washington State has long prided itself on being a champion for environmental advocacy

and for being a strong presence in the fight against climate change. However, the “inconvenient

truth” of that matter is that we are simply not doing enough. Washington, and in fact all states,

cannot wait any longer for an international or even national solution to rising sea levels and

temperatures. It is up to us, the states, to bring about the change that is needed to mitigate the

devastating effects of climate change. In spite of misunderstood barriers (such as funding and

making a “global” issue local) local and state governments can be the perfect place to seriously

address and combat climate change (Linstroth). The reasons for this are that local and state

governments can adopt policies that are tailored to their region and their own varying

vulnerabilities to climate change effects. Additionally, local and state governments are generally

in control of land use decisions, transit options, solid waste disposal, and have the power to tax

the pollution of industries in their area. Finally, state and local officials can stand as an example

for the rest of not only the country, but the world. Trying to fix the climate at the federal level

has failed in most regards, and now it is up to the local and state governments around the country

to make America into the leader it should be.

As Ana Blanco says, “traditional top down decision making processes have become

inadequate, due to their inability to create appropriate solutions for local communities” (Blanco).

Washington State needs to step up and be the beacon for sustainability by being more aggressive

in our strategies and policies to address climate change in ways that are good for the state. By

looking at the progress we have made thus far, acknowledging that we need to up the stakes and

have stricter and more assertive policies, and by looking at other states, such as California, as

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models, we will begin to be the leader in climate change. Additionally, a large component of

becoming a national leader in climate change policy will be to change the ways in which people,

especially policy makers, think about climate change. To start, people need to stop thinking of

climate change policies as a kiss of death for the state’s economy. Measures to solve climate

change, such as “energy efficiency, the development of renewable energy sources, and carbon

trading” can and will boost the economy and create thousands of new jobs (Tamminen).

Additionally, people need to start looking at the long-term benefits versus just the short-term

costs when looking at climate change policies. Our natural resources have more value than just

the base economic figure assigned when they are consumed by the populous.

The time to act is now. Immediate action is not only better for our planet but is more cost

effective in the long term. Certain areas of the country, including our state are starting to already

feel the effects of climate change. Often times there is the misconception that climate change is a

future problem, that its effects won’t affect our lives until the far off future. In reality this is not

the case, as shown by rising sea levels, increased natural disasters, and droughts and flooding in

various areas. Additionally, part of the problem is that it can often be mistaken that climate

change requires international solutions only. The information regarding climate change therefore

must be transferred to state policymakers in a language that they not only understand but also

support (Linstroth). The issue essentially must be tied into local interests. It must be understood

that if we act now we reduce the risk of far more adverse climate impacts as well as economic

strain. Natural disasters are costly and time consuming as well as a strain on a community’s

morale. Acting now reduces the risk for future generations and provides economic opportunities

and job growth today, in the ways of clean energy. Acting now also reduces reliance on imported

fossil fuels thus getting us one step closer to energy independence.

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Washington has taken many positive steps in regards to climate change policies. In 2007

the governors of 5 western states: AZ, CA, NM, OR, and Washington all started the Western

Climate Initiative (WCI) in order to combat climate change (Dep. of Ecology). The WCI’s goal

was to develop a “multi-sector, market-based program” to reduce GHG emissions (Dep. of

Ecology). This Initiative had goals to lower carbon emission 15% below 2005 levels by 2020 as

well as implement a region cap-and-trade program for the West Coast. The cap-and-trade system

was to be composted of the individual jurisdictions’ cap-and-trade programs implemented

through state and provincial regulations. Each WCI partner will then issue “emission

allowances” to meet its specific emissions reduction goal. The key aspect about a cap-and-trade

system is that it puts a price on emissions, thus making the cost of polluting more than the cost of

ultimately finding a more renewable energy source.

While the efforts behind the WCI and the goals it gave were admirable, many

accused it as being a “greenwash” used to avoid committing to the Kyoto Protocol

(Strasser). Additionally, it has been cited by some that more drastic cuts in emissions, up to

40%, could be achieved without affecting investment yield, a good indicator that these cuts

would not affect the economy as a whole (Strasser). Despite the potential of the WCI, in

2010 it was announced that several US partners would either delay or not implement the

programs laid out in the WCI. The WCI was then streamlined to include, as of 2013. only

California and 4 Canadian provinces as active partners in the WCI. Washington State

resigned as a partner and in 2011 became an “observer”—meaning that it is still an active

participant in the design of the program but is unwilling to implement the cap and trade

system laid out by the program.

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However, progress has been made in Washington State since stepping back from the

WCI, but whether or not will be enough is the question. In 2008 a comprehensive plan for

Washington State to reduce our GHG emissions and expand our green economy was released.

This plan presents an inclusive set of policies, regulations, and incentives to meet with GHG

emissions reductions. The required reductions are meant to get us to the goal of returning to 1990

GHG emissions levels by 2020, reduce emissions 25% below 1990 levels by 2035, and to reduce

emissions 50% below 1990 levels by 2050 (Littell). This plan also has the goal of reaching and

sustaining 25,000 “green economy jobs” by 2020 (Littell). Washington also current has

regulations in regards to emissions inventory and reporting. Currently industries must report to

the Department of Ecology if they emit at least 10,000 metric tons of GHG annually in the state

(however, it is unclear what is done after the reports are in) (Brant). We also have many

regulations in place to address reducing emissions from State Agencies. Currently State

Agencies are required to quantify and reduce their carbon footprint in accordance to the state’s

mandatory targets (Brant). In addition we have numerous regulations to address transportation

emissions as well as other sources of GHG emissions.

Washington currently is at a place where many different choices are available on how to

proceed with the issue of climate change. We can either stay at our current level of action (which

admittedly is better than most states) or proceed further in being national leaders in climate

change policy. There is no realistic alternative in going back to the way things were in regards to

not having regulations on GHG emissions, that time has passed. If we stay at the current level of

action we will reduce our emissions but not by as much as we hope. If our current emissions

reduction policies are fully implemented it will result in about 45% of the necessary reductions

needed by 2020 (Littell). It is important to note that our current action is strong in its goals, but

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the question is whether or not those goals will be reached with the current level of regulations

and incentives. For example, we currently have many policies that address State Agencies,

vehicle pollution etc., but nothing substantial about the industries in our state (such as Boeing

who is a major polluter of the Duwamish River area in Seattle). Industries play such a huge role

in the emissions of GHGs, why are they not specifically stated in the regulations and restrictions

of emissions?

It is with this in mind that I recommend that we up the stakes and take a more aggressive

approach in climate change policy. We need to step up and take the lead like California did in the

60’s and 70’s when it established the first requirements for auto-emission controls (Hogan).

California recognized that it was a major contributor to GHG emissions and, acknowledged the

problem, took responsibility, and looked towards solutions. We can no longer hide our heads in

the (rapidly deteriorating) dirt and wait for national or international solutions. “Recent reports

have characterizes states and localities as filling part of the “gap” left by current national US

Policy” (Kosloff). The trend of local and state action is nothing new, it is happening right now.

Currently, twenty-eight states and Puerto Rico, have completed, or are developing, “plans

containing statewide strategies for reducing greenhouse gas emissions” (Engel). We need to

be at the forefront of this action instead of lagging behind. We, as a state, need to be the leader of

this type of grassroots action and show the federal government that the time has come for

policies that tackle the problem of climate change.

To be the leader that we are capable of, we need to make a few key changes in our

climate change policy. First, we need to include industries in the restrictions and regulations that

we currently have. It needs to be states that industries must also cut their emissions by a certain

percentage (the amount will be determined on the size of the industry as well as other factors) in

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accordance to the states goals of lower emissions. We should also extend the Clean Fuels Tax

incentive to companies and businesses that use renewable forms of energy. This will provide an

incentive for businesses to make the switch to cleaner forms of energy. Additionally, we need to

close the oil tax loophole in Washington State. The “Extracted Fuel Exemption”, as it’s called, is

an accidental loophole that gives oil industries $63 million each biennium (De Place). The

loophole currently in place was passed in 1949 (before Washington had oil refineries). The

exemption was originally for the benefit of the timber industry but now out-of-state oil interests

gain nearly 98% of all the profits of this loophole. In order for our state to truthfully claim that it

is doing its best in the fight against climate change we need to stop this huge handout to oil

industries. I also advise that we reinvest this money into our higher education system, in order to

ensure the growth of future generations. My final recommendation is to enact a cap-and-trade

program throughout the state in order to actually bring down the emissions levels to those we

have set in our current agenda. And ultimately we need to show that the measure to solving

climate change will boost the economy and create thousands of new jobs, just as California did

(Tamminen).

Naturally there will be many key players in the creation of more stringent climate change

policies. In our region, the lumber and forest industry will be a major player, as will the oil

industries who run refineries in our state. Additionally, there will be the big industries located in

Washington, such as Boeing, who will have a strong voice in the creation of new policies. The

smaller groups who will also be invested will be the energy companies (both renewable energy

such as wind and solar, as well as the fossil fuel industry such as Puget Sound Energy), the

agricultural industry and the fishing industry. Non-governmental Organizations (NGOs), such as

the state chapters of the Sierra Club, will also take a strong stance in lobbying for more action.

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Another voice that is gaining momentum is community members, and especially college

students. At Western Washington University, for example, students made a huge impact in

voting for council members who did not support the Cherry Point Coal Terminal.

If we stay on the current path we have now all groups will be affected in the long term as

climate change continues to worsen. In the short term aspect, big oil and lumber companies,

Boeing, and fossil fuel energy providers will be more supportive in that they will have less strict

regulations in regards to GHG emissions. Communities, on the other hand, will feel the ever

present effects of climate change even more, especially those on the coast. However, if we look

into adopting all the changes that I outline above, we will have communities, NGO’s, college

students, fishing industries, and renewable energy companies who will support and advocate the

proposed changes. Whereas Boeing, Oil and Lumber industries, and fossil fuel energy providers

will initially resist the changes due to the perceived loss in revenue that comes from making the

switch to renewables and paying for excess emissions. It is true that there will be difficulties in

the beginning, after all making internalized switches from fossil fuels to renewables costs

money. However, it needs to be understood that energy efficiency, developing and using

renewable energy and carbon trading will boost our economy and provide sustainable job

growth, as will be explained later.

The biggest group that must be convinced is in fact elected officials. The representatives

we elect will ultimately have the last say in whether or not more climate change policies are

passed. In order to gain their support, we need to first gain the support of community members

and business owners. We will do this by looking at projected job growth and the growth of the

economy. According to the Report for Climate Solutions, it is predicted that there will be more

than 41,000 new jobs in the Pacific Northwest by 2025 in the areas of solar, wind, green building

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services, bioenergy, and smart grid industries (Dep. of Ecology). Taking immediate action to

address climate change will not only create jobs but will also aid our economy and business

community. The certainty of a cap-and-trade system will make investments in reducing

emissions more cost effective for businesses and industries will therefore create a stronger and

more solid market for renewables, encouraging investments in those technologies. This new

market will allow businesses to profit from investing as well as manage their risks in continuing

with fossil fuels and other non-renewable technologies.

There is no denying the power of big industry’s interests when it comes to lobbying

efforts. For example there will be the lobbying against the removal of the oil tax loophole by oil

industries. However, it is important to remember that millions of our dollars are going to these

industries, in a loophole that was an accident to begin with, and that our money can and should

be invested into much more important areas, such as education. Overall, fossil fuel companies

and industries will unite in resisting further climate change initiatives. Often times, they argue

that voluntary action by industries is enough to bring down carbon emissions. While this may be

true in theory, rarely do we see industries willingly take the first step in bringing down GHG

emissions. Therefore, it can be argued that more direct action is needed to push businesses and

industries in the right direction towards a more green and prosperous economy. Those who will

be opposed to increased policies will have a good argument that we are already doing more than

most of the country. I however ask, is being marginally better than those doing nothing

something to be proud of? We should be focusing our energy in embracing what is sure to be the

future, green economies and cap-and-trade systems.

Cap-and-trade systems often are likened to a deathblow for the economy. However, it is

important to recognize that low-carbon technologies are the way of the future. The way we are

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all living now in this country is not sustainable and will not last; therefore the logical solution is

to jump on the opportunity of investing in these technologies and systems. It is estimated that by

2050, markets for low-carbon technologies are predicted to be worth “at least $500 billion

annually, and possibly much more” (Easton). We need to position ourselves, as a state, with a

head start in preparing for the transition to a low-emissions economy. Cap-and-trade systems

also present the opportunity for businesses in the creation of new technologies, capture-and-

storage projects, increased production in low emission vehicles and consulting opportunities

(Easton).

The cap-and-trade system that I am proposing will set a limit (or cap) on GHG emissions

for Washington. The state will issue allowances, which are essentially permits for emitting

GHGs, which equals the estimated total amount of emissions from capped sectors (determined

by looking at the state as a whole and the amount of emissions from industries). The cap, or

amount of permits will decline over time to ensure that the goals for emissions reductions are set

(Dep. of Ecology). This design will regulate and facilities that emit more than 25,000 metric tons

of certain greenhouse gases each year and requires strict reporting from the industries. What will

the cap and trade do for our state? By using a market based system, the permits provide

incentives for industries and businesses to create new technologies that increase efficiency and

promote renewable energy sources as well as decrease emissions. Also, there will be cascading

effects in that we will also become more energy independent as well as gain economic

advantages by being ahead of the rest of the country in the inevitable shift that is going to occur

in green technology.

The alternative to this is a carbon tax. A carbon tax would entail policymakers levying a

fee for each ton of carbon dioxide emitted or for each ton of carbon in fossil fuels (Dep. of

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Energy). The theory is that companies would be motivated to cut back on their emissions if the

cost of doing so was less than the cost of paying the tax. Though this would (in theory) achieve

the same goals as a cap-and-trade system, and would be received equally as well from

communities, NGO’s, environmental organizations, and other such groups, the big industries

would, I feel, be more opposed to a tax rather than the cap-and-trade system. The cap-and-trade

system allows for much more freedom and flexibility than a carbon tax, something that the

corporate sector values highly. Cap-and-trade systems enable facilities to make reductions when

and where they are most cost effective for that company or building, meaning that cap-and-trade

systems do not mandate where reductions occur, only that they must. Also, the design

recommends the acceptance of offset credits (Dep. of Ecology). Those are credits for projects

that reduce emissions outside at facilities whose emissions are below the threshold. Additionally,

I feel that some policymakers would also be opposed to a carbon tax as in our current recession it

is more difficult to pass legislation that increases or adds new taxes. With a carbon tax the price

for the emissions is a certainty, but the actual amount of reductions are not. In a cap-and-trade

program, policymakers set a specific limit on the total emissions, which ensure reductions occur.

In conclusion, climate change poses a real and present threat to our economy and way of

life, but also offers economic opportunity and growth through cap-and-trade systems and

reducing our carbon emissions drastically. Washington is “well positioned to lead a

transformation to the new green economy, creating job and economic growth along the way”

(Littell). Washington was the first state to make workforce training a key part of climate policies

and currently ranks 4th in the nation in private investments in clean energy (Littell). We also rank

5th in wind power production. These statistics show that responding proactively to climate change

has provides us with new economic opportunities, and so it stands to reason that it will continue

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to do so. We as a state have always been forward thinking, and we cannot stop now. It is

imperative that we be adaptive and flexible in our plans to deal with climate change.

Transforming our economy into a green economy and making the shift in social thinking to more

environmentally conscious requires action at every level: local, state, and national. After all, the

rallying cry of the environmental movement has always been to “think globally, act locally”,

why should climate change policies be any different?

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Works Cited

Trasser, Kurt A. Myths and Realities of Business Environmentalism: Good Works, Good Business or Greenwash? Cheltenham [England: Edward Elgar Pub., 2011. Print.

Engel, Kirsten. "State And Local Climate Change Initiatives: What Is Motivating State And Local Governments To Address A Global Problem And What Does This Say About Federalism And Environmental Law?." Urban Lawyer 38.4 (2006): 1015-1029. Academic Search Complete. Web. 4 Dec. 2013.

Rojas Blanco, A. V. (2006), Local initiatives and adaptation to climate change. Disasters, 30: 140–147. doi: 10.1111/j.1467-9523.2006.00311.xMcCall, Dawn, Nicholas Namba, and Michael Friedman. "Climate Action Goes Local." E

Journal USA: US Department of State 16.2 (2011): n. pag. Web. 4 Dec. 2013.

Linstroth, Tommy, and Ryan Bell. Local Action: The New Paradigm in Climate Change Policy. Burlington, VT: University of Vermont, 2007. Print.

Mary Ellen Hogan. “California Climate Change Initiatives Leading the West and the Nation” Natural Resources & Environment , Vol. 22, No. 3 (Winter 2008), pp. 14-19.

Laura Kosloff and Mark Trexler. “State Climate Change Initiatives: Think Locally, Act Globally”Natural Resources & Environment , Vol. 18, No. 3 (Winter 2004), pp. 46-50.

Bresso, M., and N. Swannick. "CoR - Climate Change Goals beyond Reach without Local Government." CoR - Climate Change Goals beyond Reach without Local Government. EU: Committee of the Regions, 10 Sept. 2013. Web. 04 Dec. 2013.

Littell, J.S., M. McGuire Elsner, L.C. Whitely Binder, and A.K. Snover (eds). The “Washington Climate Change Impacts Assessment: Evaluating Washington's Future in a Changing Climate

- Executive Summary.” In The Washington Climate Change Impacts Assessment: Evaluating Washington's Future in a Changing Climate, Climate Impacts Group, University of Washington, Seattle, Washington. 2009.

Justin Brant and Janice Adair. Washington State. Department of Ecology. Path to a Low - Carbon Economy Washington’s Interim Plan to Address Greenhouse Gas Emissions. WA State Department of Ecology, Dec. 2010. Web.

Washington State. Department of Ecology. Community, Trade, and Economic Development CTED). Responding to the Climate Change Challenege. 1st ed. Vol. 8. Ser. 26. Department of Ecology. Web.

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De Place, Eric. "The Accidental Tax Loophole." Sightline Daily. Sightline Institute, Mar. 2013. Web. 4 Dec. 2013. Web.

Washington State. Department of Ecology. Community, Trade, and Economic Development (CTED). Growing Washington’s Economy in a Carbon-Constrained World. 1st ed. Vol. 8.

Ser. 25. Department of Ecology. Web.

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