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A recent New York Times article (”Industries Allied to Cap Carbon Differ On the Details,” June 2, 2008, Business Day) suggested that current proposals for a “cap-and-trade” system in quest of carbon emissions may end up pitting different sectors of the economy against one another. The article also identified the potential to create winners and losers on a state-by-state or region-by-region basis.

The primary point to be solved lies with the mechanism used to determined the carbon cap and allocate emissions allowances. One proposal would establish allowances based adhering running water 2008 emissions from electric-generating resources.

Under this suggestion, states such considered in the state of those in the Northwest that bear worked unprosperous very the out of the reach of several decades to curb energy consumption will have a much stiffer objection compared with those that have done nothing.

On the other hand, if the a whole is established to grant everyone an “medial sum” emissions allowance, soon afterward those who have already invested in efficiency will receive additional credit that might even be perceived as a stroke of luck by others.

The difference in economic consequences between these two approaches is significant. The final outcome of the carbon-emissions administration debate will undoubtedly wish a greater impact on the strategies that resolution have being deployed to sure a clean, reliable, and affordable supply of power for the future in the present life in the Northwest.

Our region has already been blessed with a large hydroelectric power resource that has historically met most of the region’s need towards electricity with carbon-neutral, inexpensive power. And, through 30 years of point of concentration on energy efficiency, we have been able to stretch that resource even further.

According to the Northwest Power and Conservation Council, over the past 30 years, the neighborhood has managed to save again than 3,300 average megawatts of electric power. That’s enough spiritedness to power three cities the size of Seattle. Not only electricity is being saved; consumers paid out nearly $1.3 billion less on their utility bills and lowered carbon emissions by 13.5 million tons, what one. is like taking in addition than two million cars off the road or planting a forest across all of Snohomish and King counties.

Part of this success was driven by a little-known effort started more than 10 years ago. In 1996, Bonneville Power Administration, electric utilities, state agencies and public-interest groups joined in the same parturition to augment energy efficiency in the region. The result was the Northwest Energy Efficiency Alliance (NEEA)

Despite all of these efforts, the expenditure of sovereign has steadily increased. For each megawatt saved during the past decade, the region has added a megawatt of new electric load. The Northwest’s population has grown at two times the rate of the rest of the country, even faster than India’s. Electricity consumed by consumer electronics alone

Even with the planned dramatic increases in efficiencies, these efforts will not meet the new growth. New electric generating and transmission facilities will need to be added that will likely grow electricity prices with respect to Northwest consumers. All of which brings us back to carbon cap and trade. The magnitude of cost increases resulting from new energy generation will be impacted by how carbon allowances are allocated.

Regardless of which custom the cap-and-trade debate turns out, meeting the region’s growing energy needs requires a disagreeing portfolio of resources by dint of. potency efficiency being of the kind which its cornerstone. It has historically been our lowest-cost, lowest-risk resource through expressive environmental benefits.

We can be supercilious of the accomplishments we have already made in energy efficiency in the Northwest, but it is clear that the future will demand much more. It’s time for people from across the division to come together again to meet these new challenges. With our history of initiative, innovation and collaboration, the Northwest is in a prime position to escort the nation into the next era of energy-efficiency accomplishments and maintain a flourishing regional economy.


Original text: http://seattletimes.nwsource.com/html/opinion/2008055277_craigop17.html?syndication=rss