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Imagine you’re poised to invest in a house or a commercial building. Before you sign on the dotted line, the property receives a certificate that spells out the structure’s energy performance – similar to miles-per-gallon ratings for cars.

Imagine, too, that the state of Oregon increases energy efficiency in commercial and residential building codes by 30 percent and 15 percent, respectively, as a first step toward its goal of achieving net-zero-emissions homes and buildings by 2030. At the same time it ratchets up its near-term building codes, the state publishes a so-called “reach code,” the next code that would take effect in an effort to provide marketplace certainty about future construction requirements.

Those and other concepts are part of Gov. Ted Kulongoski’s multipronged legislative package to address climate change, position Oregon to meet its goal of curbing greenhouse gas levels to 10 percent less than 1990 levels by 2020, and create green jobs. His agenda has been described as ambitious by those close to the issue and would keep Oregon among the states at the forefront of tackling global warming.

Kulongoski’s package focuses on greenhouse gas reduction, energy efficiency and conservation, renewable energy and sustainable transportation. The package grew out of recommendations that work groups and a couple of other entities, including a committee of the Oregon Global Warming Commission, developed. Among the components:

• Authorizing the state’s participation in a regional cap-and-trade system to limit carbon emissions from large sources, and expanding Oregon’s existing greenhouse gas reporting system.

• Accelerating solar energy projects via a pilot incentive program that would pay for electricity produced by such projects rather than for the capital investments.

• Shifting the state’s business and residential energy tax credits from popular hybrid vehicles to those that produce less carbon, such as plug-in hybrid and all-electric vehicles.

• Expanding transportation options – among them carpools, vanpools, bicycling and walking – to reduce vehicle trips as well as adopting low-carbon fuels.

• Directing the state Department of Transportation to consider least-cost options to address transportation problems, such as investing in mass transit projects instead of building more roads to relieve congestion.

• Creating a state fund that leverages federal and private-sector investments to help low-income households save energy.

Angus Duncan, chairman of the state global warming commission, used the analogy of a house in describing the governor’s legislative package, saying a cap-and-trade component represents the walls and the roof, while the energy efficiency and conservation, renewable energy and transportation elements are the wiring, plumbing and appliances.

“Put them all together,” he said, “and you have a functioning house.”

Kulongoski wants citizens to help the state develop design recommendations to participate in a regional cap-and-trade program that would take effect in 2012. Under his proposal, those recommendations would be considered by the 2011 Legislature prior to the program’s start. Oregon is a member of the Western Climate Initiative), a coalition of seven western states and four Canadian provinces that aims to jointly reduce regional greenhouse gases by focusing on a market-based cap-and-trade system.

Rem Nivens, a Kulongoski spokesman, said the governor wants to ensure “robust” public debate occurs so that cap-and-trade is workable for Oregon. “He does not want to put Oregon industries at a disadvantage,” Nivens said.

John Ledger, a vice president with Associated Oregon Industries, said the trade group’s main concern regarding cap-and-trade is that it be “done in a way that keeps Oregon competitive with other states and globally.”

Ledger said the work on cap-and-trade regionally and at the state level is beneficial but noted that AOI would prefer a nationwide strategy so that states are on the same level. “There are a lot of details. Cap-and-trade is a key for AOI, and we’re not sure how it will all play out yet,” he said.

Beyond that, AOI will examine each component of the climate change package, noting that strategies such as expanding tax credits for energy conservation are beneficial, Ledger said.

Duncan said cap-and-trade is important. Under a cap-and-trade program, businesses must reduce their pollution to meet a cap set on greenhouse gases. Those that cannot feasibly or cost-effectively cut emissions can buy credits from other companies that have achieved the reductions, according to the WCI.

However, Duncan noted, “Just putting a cap on carbon is not sufficient. You also have to have tools in place to actively reduce carbon.”

That’s where the package’s other components come into play.

Clark Brockman, an associate principal with Portland’s SERA Architects who co-chaired a work group that developed energy efficiency and conservation recommendations for the governor, said a key component of those recommendations is the goal for net-zero-emissions buildings by 2030. The concept grew out of the nonprofit Architecture 2030, which aims to transform the building sector from a major greenhouse gas contributor to a central part of the solution.

Brockman also applauded the reach code, calling it an “incredibly powerful concept” that provides a foundation for incentives to build to the future code.

In a report that outlined its recommendations to the governor, the energy efficiency and conservation work group acknowledged that the carbon-neutral and code proposals generated the most controversy within the group. Proponents said mandatory interim steps to increase code requirements are needed to provide certainty to meet energy-saving goals, and that announcing the next code cycle several years in advance gives designers and builders time to adapt. But some members said aspirational goals do not aid in code setting and were uncomfortable with the state creating strict energy-efficiency mandates for all buildings. In the end, however, more than three-quarters of the work group supported those concepts.

Energy performance certificates, meanwhile, would save energy and money, provide a major boost to a nascent green economy and build on Oregon’s reputation for sustainability, Brockman said.

“Investments in energy efficiency and renewable energy are going to come back to us with a multiplier effect because they all are going to create jobs,” he said. “The idea of, does this help the Oregon economy? I’m absolutely convinced it does.”

Nivens said energy performance certificates are among the package’s cutting-edge components; the governor’s office, he said, is not aware of any other state that has such certificates. However, a pilot to create energy efficiency ratings is being tested in Oregon by Energy Trust and Earth Advantage.

On the transportation front, the package aims to address the state’s infrastructure needs and reduce carbon, in part by encouraging alternative vehicle technology and adopting a low-carbon fuel standard.

Gail Achterman, chairwoman of the Oregon Transportation Commission and a member of the vision committee that developed transportation recommendations for Kulongoski, said the state needs to cut emissions via alternative vehicle technology and low-carbon fuels if it hopes to meet its greenhouse gas-reduction goals.

Achterman, who also applauded the idea of expanding transportation options and implementing least-cost planning, was optimistic about the success of the global warming package.

“There’s a very high level of interest in the legislation,” she said. “I’ve heard from the (legislative) leadership and a number of members (who are) very committed to Oregon’s leadership in climate change policy and committed to the creation of jobs and infrastructure investment.”

Rep. Dave Hunt, Oregon’s House speaker-elect, agreed with those who consider the package ambitious and predicted lawmakers will advance climate change strategies. Hunt said he has “no desire” to tie the package together in one bill, preferring instead to consider individual components and moving forward on elements that can gain traction early in the session. 

“I think we will definitely continue to make progress on climate change, as we did in 2007 and 2008,” Hunt said. “Whether the whole package passes as-is is far too early to say.”

People such as Duncan, the global warming commission chairman, said he is “guardedly optimistic” about the package’s prospects during the ’09 session.

“I think there are enough members on both sides of the capitol (who believe) you have to do something that is more than business as usual,” he said.

“For all of these investments we are talking about making – and these are significant investments, whether they are wind turbines or mass transit or building energy-efficiency investments – in all cases it’s important for people to have a clear goal for where we are headed so that these investments make sense to people,” Duncan said.

Nivens said although all the details have yet to be worked out, the cost of the governor’s climate change package has been estimated at $10 million.

Kulongoski believes the package can be implemented “at a funding level that is going to be reasonable and workable,” Nivens said. He added that while the state’s budget crunch is a concern, the package is “one of the areas we can continue to push forward on and not be too constrained by the current budget situation.”