Governor's veto good for environment, economy

By BROCK HOWELL

On Aug. 7, Gov. Ted Kulongoski made the Legislature look good. The Legislature had passed several important climate bills, like the no-new-coal standard, the low-carbon fuel standard, building-code updates for energy efficiency, innovative financing for home energy efficiency and a solar feed-in tariff.

But the Legislature had also rolled back the most important climate policies to date -- the renewable portfolio standard, or RPS, and the business energy tax credit, or BETC. According to the Renewable Northwest Project, by allowing old hydro and biomass into the RPS, the standard would have been cut by 25 percent -- effectively making the RPS not 25 percent new renewable electricity by 2025, but 18.75 percent.

Kulongoski rightly vetoed House Bills 2940 and 2472. This is not the time to be playing Russian roulette with our environment or economy.

The best science tells us there is a 90 percent likelihood the Earth's surface temperature will warm between 6.3 and 13.3 degrees Fahrenheit in the next 90 years unless action is taken to reduce global warming pollution. There is a less than a 1 percent chance the Earth will warm less than 5.4 degrees.

All of Oregon is struggling -- especially rural Oregon. But counties with wind projects in operation or development are actually doing better than the rest of the state. Oregon's June unemployment rate was 12.1 percent. Union, Umatilla, Morrow, Sherman and Gilliam counties had unemployment rates ranging from 11.2 percent to 7.4 percent. By contrast, rural counties like Crook, Josephine, Deschutes, Klamath, and Coos ranged from 20.6 percent to 13.6 percent. The RPS and BETC are a significant reason for this difference.

According to the Renewable Northwest Project, wind projects have invested $2 billion of capital in rural Oregon, producing approximately $225 million in rural property tax revenues and community service fees. Rural farmers, ranchers and landowners received $4 million to $8 million in annual payments from wind companies. And wind farms created 1,650 construction and operational jobs.

Right now there are Oregon wind projects permitted for development that will triple the production of wind energy. Currently 300,000 households are served; when the new projects are built 900,000 households will be served. These new projects are relying on a strong RPS and BETC policies. Kulongoski's veto provides necessary economic certainty to these wind developers and rural Oregonians. As a result, rural Oregon is projected to benefit from $219 million more in rural property tax revenues and community service fees, $8 million to $15.5 million in payments to farmers and ranchers and 3,000 more jobs.

Although vetoing HB2940 and HB2472 was the right decision, we should appreciate that this wasn't an easy decision. Our state budget could use the additional revenue that a cut to the BETC could have garnished in the short term. Kulongoski also sacrificed priority legislation that would have extended the BETC to electric vehicles. And diversifying Oregon's renewable energy portfolio with biomass and micro-hydropower, in the right regulatory framework, will strengthen Oregon's ability to reduce global warming pollution and improve Oregon's economy.

So when the 2010 legislative session begins in February, Environment Oregon and our 36,000 members will be ready to support Kulongoski for making the tough, right decision. I hope you too will tell your state representative and senator that you also support the governor on this issue -- for the sake of Oregon's environment and economy.

Brock Howell is the advocate for Environment Oregon.