SALEM, Ore. (AP) — Oregon would adopt one of the country’s most ambitious timelines for eliminating carbon dioxide emissions from its power grid under a bill being considered by the Legisltature this year.

House Bill 2021 — a product of negotiations between the state’s largest utilities, environmental justice groups, renewable energy boosters and more — advanced out of one House committee late last month. It must now navigate the state budgeting process before final votes in the House and Senate.

Oregon Public Broadcasting reports the bill sets a timetable by which Oregon’s two major power companies, Portland General Electric and Pacific Power, must eliminate emissions associated with the electricity they provide. Five “electricity service suppliers” in the state also would face regulation, though their emissions are tiny compared to the big utilities.

At least 17 other states and the District of Columbia have already adopted similar goals, according to the Clean Energy States Alliance.

But advocates say Oregon’s plan stands out in both approach and timeline. The bill requires PGE and Pacific Power to submit plans to reduce emissions by 80 percent from a baseline amount by 2030, 90 percent by 2035, and completely eliminate emissions by 2040.

That end date is notably ambitious. It’s a nearer deadline than nearly every other state that has adopted a clean power plan, including Washington and California.

Oregon would measure its progress in an atypical way, too. Most states have opted to ratchet down greenhouse gas emissions by requiring utilities to gradually increase the amount of power they get from renewable energy sources like wind and solar. Oregon, which has already had such a “renewable portfolio standard” since 2007 is taking a more straightforward approach: requiring PGE and Pacific Power to reduce their overall carbon emissions, which are tracked by the state’s Department of Environmental Quality.

“What we’re doing is harder, but I think it’s more honest,” said Bob Jenks, executive director of the Oregon Citizens’ Utility Board, which advocates on behalf of utility customers and supports the bill.

By targeting emissions, Jenks and others say, Oregon can focus on more than just ramping up its use of renewables. It can also place a premium on helping the state use power in a smarter, more efficient manner.

Unlike the ambitious cap-and-trade proposal that would have ratcheted down emissions throughout the economy, and developed many enemies as a result, HB 2021 touches far fewer entities. And many support the bill.

“We feel optimistic enough that we can get (to zero emissions) that we were willing to move forward to support this,” said Sunny Radcliffe, director of governmental affairs and energy policy at PGE, the state’s largest electric utility.

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Multnomah County and the city of Portland are moving to limit diesel emissions at public projects.

Older diesel engines can emit particulate matter and nitrous oxides at high rates. Portland-area residents have the highest exposure to toxic air in the state, and suffer cancer risk and respiratory hazards at well above national averages, according to a news release.

The county’s Board of Commissioners and the City Council passed parallel resolutions Sept. 20 committing the local governments to establish a Clean Air Construction Procurement Standard. The rule would require equipment used on city and county construction projects to dramatically reduce emissions from older diesel engines.

City and county staff will submit final procurement policies by the end of the year, according to the news release.

The policy applies to non-road diesel equipment with 100 horsepower or more, and road-going dump and cement trucks. It will be phased in to allow contractors time to adjust. Some exemptions will be available in cases involving safety reasons, emergency or economic hardship, according to the joint news release.

The city and county plan to ask the Oregon Legislature to set aside a portion of the Volkswagen settlement to help disadvantaged, minority-owned and women-owned businesses upgrade their equipment to comply with the standard.

In 2011, the city and county started a pilot program to reduce construction emissions. Transitions to newer, cleaner equipment proved slow, in part because of the durability of diesel equipment, according to the news release.

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A big deal for Boardman

A settlement reached last week establishes a court-enforceable order to shut down coal operations at the Boardman power plant by Dec. 31, 2020. The agreement resolves a 2008 lawsuit filed by the Sierra Club and five other environmental groups for alleged Clean Air Act violations.

Boardman plant owners are compelled to pay $2.5 million to the Oregon Community Foundation for environmental restoration and clean energy projects and $1 million to reimburse the plaintiffs for legal expenses.

The settlement also established caps for sulfur dioxide, a major contributor to acid rain, to reduce the plant’s emissions in its remaining coal-fired years.

Oregon’s last coal-burning power plant, near Boardman, is scheduled to close in fewer than 10 years. But proposed restrictions on coal- and oil-fired electric plants could leave the plant’s owners in a bind.

The Environmental Protection Agency‘s proposed mercury and air toxics standards would require expensive changes to reduce air pollution at U.S. plants, and complaints are arising from industry members – especially those representing Boardman and other coal plants where shutdown agreements are in place.

If such control requirements were to pass in the near future, the Boardman plant would be required to be brought up to code or employ a different production strategy, no matter the cost. Portland General Electric, which owns 65 percent of the plant, and other co-owners already are paying more than $60 million for retrofits. Installation work is under way is expected to continue through the fall.

Because of a recent settlement with environmental groups, the plan to close the plant in 2020 is now legally actionable. Any additional equipment would operate for only a few years, and make an investment undesirable.

The major question for Boardman now, according to PGE spokesman Steve Corson, is whether the EPA will allow flexibility in implementation of the “maximum achievable control technology” (MACT) rules, which encompass the mercury and air toxics standards.

Some of the proposed standards overlap with prior regulations that Boardman is already set to meet, according to Corson. Because Oregon adopted strict mercury emission standards in 2007, Boardman is on track to reduce 90 percent of its emissions of mercury, the pollutant that is the primary target of the toxics standards.

For non-mercury metals, however, PGE needs to conduct more testing to know where Boardman stands in relation to applicable MACT regulations. New emission controls for regional haze might help the plant meet the proposed standards, but Corson says it’s too soon to tell.

“We just don’t know the answer yet,” he said. “Until the system is fully tested, we just won’t know how close we are to meeting the (MACT) standards that EPA has proposed.

“We are submitting comments to EPA hoping that they can ensure that the final adopted rule will have flexibility to recognize a strategy like the one we put in place at Boardman. We believe the package that we have already adopted for significant reductions in the near term followed by complete cessation of coal burning in 2020 represents the best approach for Boardman.”

In pushing to implement the air toxic standards to pass as written, the EPA estimates that the new restrictions would prevent as many as 17,000 premature deaths each year, and the value of health improvements would add up to $140 billion by 2016.

The comment period on the rules ends Aug. 4, and the EPA will issue final standards in November.

The Sierra Club and Natural Resources Defense Council are leading the national push for implementation of the MACT rules, according to Aubrey Baldwin, staff attorney for the Pacific Environmental Advocacy Center. But the coal and oil industries are resisting by speaking with federal legislators.

“There’s talk in Congress of limiting EPA’s authority to undertake the new air toxics standards,” Baldwin said. “But there could also be requirements stemming from climate change on a local, state or federal level that could become applicable and impact Boardman’s operations. By agreeing to shut down by 2020 in the settlement, (PGE) is taking on the risk that there will be new control requirements.”

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According to proposed rules issued by the state Oregon Land Conservation and Development Commission earlier this month, Metro should plan to reduce per-capita carbon emissions from passenger vehicles from 2005 levels by 21 percent by 2025.

To achieve this goal, Metro is examining strategies to encourage people to travel more by public transit, bicycle and foot, and to make urban planning decisions that would reduce travel altogether. However, according to a recent poll, some of the strategies may be a difficult sell to the public.

“People want houses and yards and a suburban lifestyle,” Tualatin Mayor Lou Ogden said. Ogden supports the reduction of emissions, but questions whether people would be willing to move to compact urban areas, and whether money would be available to make infrastructure change realistic, especially in the near future.

The Metro goal is just part of Oregon’s strategy to address climate change. The Oregon Global Warming Commission manages a list of more than 40 actions designed to help the state meet goals to reduce greenhouse gas emissions. Such actions include support of electric vehicles, creation of net-zero standards for new buildings, and determination of research priorities for the Oregon University System.

The statewide goals, adopted in 2007, call for decreasing greenhouse gas emissions from 1990 levels by 10 percent by 2020, and by 75 percent by 2050.

While the Metro land-use and transportation strategies require infrastructure investment and public outreach, other strategies focus more on industry changes.

The Department of Environmental Quality is in the process of developing a low-carbon fuel standard. The agency is engaging stakeholders in the plan, and it has produced a report that outlines the different alternatives the standard would support, such as biodiesel, ethanol and electric vehicles instead of gasoline and diesel.

The emissions reduction target for Metro accounts for adoption of electric vehicles and low-carbon fuels, but those measures won’t be part of the strategies or scenarios Metro will use to form its plan.

At a Metro climate leadership summit earlier this month, local elected officials, planning experts, transportation and bicycling advocates and other stakeholders were informed of results from a recent poll concerning climate issues and strategies.

According to the poll, 36 percent of respondents said they somewhat or strongly supported creating more compact neighborhoods, while 48 percent said they opposed that idea. Respondents expressed more support for building public transit and encouraging people to travel by bicycle.

Summit attendees were asked to use the poll data and prioritize strategies for themselves. The results of that polling will be used to create some scenarios, which will be modeled this summer and then used to form a plan to help the region meet targets for reductions of emissions.

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According to poll data released today (PDF), 53 percent of residents in the Portland Metro area believe that global climate change comes primarily from human activities. Another 33 percent believe it is caused by natural conditions, 11 percent “don’t know” and 3 percent don’t believe that climate change is occurring.

Adam Davis of polling firm DHM Research presented results of a recent poll on climate change at a Metro Climate Leadership Summit this morning. The telephone poll was conducted in March and surveyed 600 residents of Clackamas, Multnomah and Washington Counties on the causes and results of climate change, as well as strategies Metro is looking at to address climate concerns.

Thirty-six percent of respondents said they somewhat or strongly supported creating more compact neighborhoods, while 48 percent said they opposed that idea. Seventy percent of respondents supported keeping a tight urban growth boundary, a plan 16 percent opposed.

DHM Research also conducted focus groups of urban, suburban, rural and young residents and business leaders. The takeaway from those groups, Davis said, was that sustainable community strategies should be connected to core values, not necessarily to climate change. Compact communities along light-rail lines might be good for reduction of greenhouse gas emissions, for example, but residents show concerns with losing privacy and yards. If such a plan is connected with creating parkland and reducing the amount of time people spend waiting in traffic, it might be more popular.

Davis said that policymakers shouldn’t “run from climate change” when explaining policies, but they should make connections to core values. “You need to make connections for people or they default to neutrality or soft opposition to these ideas,” Davis said.

The goal of today’s summit was to discuss how the region would meet state targets for greenhouse gas reduction from cars and light trucks.

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The Oregon Department of Environmental Quality is on the road presenting a plan for implementing a low-carbon fuel standard that would, according to a report, create jobs without raising taxes.

released at the end of January examines possible outcomes of decreasing the carbon input of fuels by 10 percent in Oregon by 2012, a standard passed by the Oregon Legislature in 2009 as part of .

The standard emphasizes using alternatives such as biodiesel, ethanol and electric vehicles instead of gasoline and diesel. The standard would regulate importers and producers of fuel, not individual consumers, according to a presentation to the Oregon Energy Forum by Cory-Ann Wind, air quality planner at the DEQ and team lead for the low-carbon fuel standard project. If the price of fuel increased significantly as compared to other states, a mechanism in the standard would allow the program to be delayed.

The process for implementing the standard would also include the creation of a credits market, where those who do not change their fuel-using ways could buy credits from companies that produce low-carbon alternatives.

The DEQ report includes an economic impact analysis performed by Jack Faucett Associates which uses models that show the low-carbon fuel standard would benefit Oregon without costing tax dollars, as low-carbon fuel production within the state would generate outside investment and new business. The analysis predicts that the standard would create between 862 and 29,290 new jobs in a 10-year period. The JFA report emphasizes that the models are not predictions, and Wind said that much of the political opposition to the low-carbon fuel standard disputes the results of the analysis.

According to Wind, the DEQ is currently in the process of engaging stakeholders in the project. The next step is rule-making, which Wind said she hopes would happen by the end of this year.

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Parrish Excavating is retrofitting seven pieces of construction equipment with a technology that removes carbon emissions as part of a project with the city of Portland and Multnomah County.

The city and county are contributing about $100,000 for the retrofit as a way to test the technology. It will help attain Leadership in Energy and Environmental Design certification for the East County Courthouse project in Gresham, said Mark Parrish, vice president of the company.

“It’s pretty complex equipment, but they say it will give us zero emissions,” Parrish said. “You can actually work in a building with it without having any fumes.”

Parrish is a subcontractor on the courthouse project. Howard S. Wright is the prime.

The equipment – including diesel oxidation catalysts, flow through filters and diesel particulate filters – has already been added to the company’s backhoes, excavators and skid steers. Two dump trucks have yet to be upgraded, he said.

The systems can run for about eight hours, collecting carbon dioxide, and then the gas is cleanly burned by the technology, which takes between 30 and 45 minutes, Parrish said.

Workers have been trying it for about a month now, he added.

“Every operator has to learn how it works, and if you forget to burn it off at the end of a shift you have to burn it in the morning, which can be a time waste,” Parrish said. “But so far, there has been a little readjusting needed, but it really hasn’t cut down on my efficiency yet.”

Parrish will report back to the city and county on how the technology is working as part of the project, which will last about five years, he added.

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Total Oregon greenhouse gas emissions, 1990-2007

Year	Metric tons
1990	55.811 million
1991	57.965 million
1992	57.818 million
1993	62.192 million
1994	63.089 million
1995	64.023 million
1996	66.875 million
1997	67.395 million
1998	68.854 million
1999	70.976 million
2000	69.499 million
2001	66.441 million
2002	65.888 million
2003	65.045 million
2004	66.548 million
2005	68.723 million
2006	66.344 million
2007	68.058 million

Source: Oregon Department of Energy

Greenhouse gas emissions in Oregon must be reduced by 30 percent by 2020 for the state to meet a goal established by the Legislature. But according to a recent analysis by Kendall Energy Consulting (PDF), the state won’t hit that target, despite building up an arsenal of policies and incentives to limit emissions.

Oregon’s gross greenhouse gas emissions in 2007 were 68.058 million metric tons, an increase from a reported 55.811 million metric tons emitted in 1990. There were slight dips in the early 2000s, when the economy wobbled, but emissions have since continued to rise.

The state has three major tools in place for reducing emissions, according to Grant Kendall, author of Oregon Greenhouse Gas Emissions: Analysis of Potential Goal Achievement. A renewable portfolio standard requires 25 percent of the state’s power to come from renewable sources by 2025; state-enforced public purpose charges require utility customers to pay a fee that goes toward energy efficiency and renewable energy programs; and utility customers can pay more than their bill amount to support renewable energy projects.

Also, Portland General Electric‘s coal-fired plant in Boardman is expected to be replaced by renewable power by 2020, and the state plans to implement a low-carbon fuel standard, which would require all fuel distributors and suppliers to combine fossil fuels with lower-carbon fuels.

But these actions will not be sufficient for the state to meet the 2020 goal, Kendall said, because greenhouse gas emissions are trending upward and the state’s population is expected to continue rising. Kendall performed his analysis after working with the state’s on its latest 20-year road map for reducing greenhouse gas emissions.

“This was a test of how we’re actually doing in Oregon,” Kendall said. “The results didn’t shock me; I think everyone in the industry knows we aren’t hitting these targets. Now the question is: How do we get over this? If we keep doing what we’ve been doing, it’s not going to happen.”

The problem with the greenhouse gas emission goals, according to Robert Grott, president of the Northwest Environmental Business Council, is that the state anticipated creation of a federal carbon tax or cap-and-trade program, which would tax larger businesses for greenhouse gas emissions they produce. But the federal government has declined to implement a carbon tax system because of backlash from businesses. No such legislation is expected anytime soon, Grott said.

“Instead of a major mechanism like cap and trade, we have seen sector-by-sector initiatives to reduce greenhouse gases,” Grott said. “But in the absence of mandates, the motivation to change goes away for most groups. Companies have lots of other things to spend time and money on.”

Another problem is the state’s growing population, according to Mark Kendall, an associate with Kendall Energy Consulting. It was estimated at 3,823,460 in 2009 and is expected to grow to 4.4 million by 2020, according to Oregon’s Office of Economic Analysis.

“Oregon continues to be a growth population state,” Mark Kendall said. “As population grows, our demand for energy grows. Most of what we’ve done so far (in terms of energy efficiency) has been voluntary, like volunteering to weatherize our homes or buying a Prius. But when you look at our 30-year emissions history, our approaches don’t get us anywhere near accomplishing these goals.”

Grant Kendall said a recent report by Oregon’s Global Warming Commission suggests continuing to support a national carbon tax and making energy efficiency research funding a high priority. But reducing emissions comes to down to money, Grant Kendall said. In his report, he estimates the cost to reach Oregon’s 2020 goal is between $595 million and $1.2 billion.

“There is a huge potential market here,” Grant Kendall said. “How you value greenhouse gas emissions and make them into cash flow is more important work than the Legislature can do alone. The government is bankrupt and we can’t keep asking for a handout. People haven’t figured out yet how to harness that capital.”

Without a federal strategy for pricing emissions, Grott said the costs of energy and fuel will lead to behavior change and reduced emissions. But a wait could be costly, he added.

“Today we have an option for controlling those prices,” Grott said. “By not taking proactive steps, we will be subject to pricing shocks and having to play catch-up as fuel and energy prices rise. Without requirements to do something, it’s easy to put this on the back burner.”

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Proposed truck efficiency/idling rules for Oregon

Beginning Jan. 1, 2014
• 2015 model year and newer sleeper cabs pulling 53-foot dry van or refrigerated trailer must be EPA certified SmartWay tractors
• 2015 model year and newer tractors pulling 53-foot dry van or refrigerated trailer must use EPA certified SmartWay tires

Beginning Jan. 1, 2016
• 2014 model year and older tractors pulling 53-foot dry van or refrigerated trailer must use EPA certified SmartWay tires

Exemptions
• Short-haul tractors
• Drayage tractors
• California-compliant tractors and trailers

Source: Oregon Department of Environmental Quality

When Wildish Construction Co. prepared recently to bid for a project, it wasn’t a lack of expertise that led it to back off. It was its equipment.

“This is a job we could have normally bid,” said Walt Westmoreland, equipment manager with the Eugene company. “But the equipment emissions requirements were too prohibitive.”

Oregon doesn’t have emissions regulations yet, but contractors say they are already seeing a trickle-down effect from air quality regulations taking effect in California. Project owners, private developers and the federal government all are requiring stricter emissions controls for heavy construction equipment.

Transitioning construction equipment fleets to meet new rules is an expensive proposition, but it is one that Westmoreland says contractors should be planning for today.

Beginning in 2007, the California Air Resources Board has rolled out regulations for particulate matter and nitrous oxide emissions for off-road diesel construction vehicles. The rules require companies to either install emission controls on heavy construction equipment they already own, or purchase equipment compliant with the new standards. Certain rules also apply to highway vehicles that contractors use for travel to and from sites, according to Michael Miller, general manager of Pape Machinery in Sacramento, Calif.

Oregon-based contractors that work in California are getting a first look at how their fleets could be affected if Oregon were to adopt similar emissions regulations.

Knife River Corp.’s Southern Oregon offices, for example, perform several million dollars worth of work in California each year. Before the California Air Resources Board rules went into effect, the company decided to research how much it would cost to bring its fleet up to California emissions standards. The estimate was between $1 million and $3 million to upgrade a $40 million fleet – more than the company felt it could afford to do at all once.

“When this is enacted, it will force us to rent or lease equipment for projects we do in California,” said Dave Ross, general manager of the company’s Klamath Falls operations. “Contractors ought to keep these regulations in mind as they look at adding to, or upgrading, their fleets.”

Out-of-state contractors working in California already are leasing emissions-compliant equipment in California, Pape Machinery’s Miller said. The state’s regulations require that any fleet that wasn’t registered with the California Air Resources Board by March 31, 2009, must meet their emissions standards. Because a fine can amount to thousands of dollars per day, contractors say they would rather spend money leasing state-approved equipment rather than risk using their own. With only 50 enforcement officers, the California Air Resources Board depends on tips – many from other contractors, Miller said.

“When you’re out of state and you win a job, the first people to call you out on an emissions violation will be the contractor you won against,” he said.

The Oregon Department of Environmental Quality in 2009 was directed by the Oregon Legislature to explore emissions regulations. The agency is developing requirements to reduce emissions by heavy and medium-duty commercial vehicles. In 2011, the DEQ will present its recommendations to the Oregon Legislature. At the earliest, new emissions rules in Oregon would be adopted in December 2012, Ross said.

Wildish recently retrofitted some of its vehicles to reduce emissions, but Westmoreland said the cost to retrofit its entire fleet is prohibitive. He also acknowledged that Wildish eventually will have to upgrade its fleet completely or miss out on more jobs.

“This is coming, and we’ll all be forced to look at it,” Westmoreland said.

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At Jubitz Travel Center in Northeast Portland, the air is thick with the smell of diesel and the low rumble of dozens of idling 500-horsepower engines. After traveling hundreds of miles per day, long-haul truckers pull into these miniature cities to rest. The trucks’ engines are left idling to power computers, televisions and heating and cooling systems within the trucks’ cabs, draining about a gallon of fuel per hour.

Dozens of trucks filled Jubitz’s 320 parking spaces on Thursday afternoon, but only one rig was plugged in to one of Jubitz’s 35 electrified parking spaces, which allow truckers to plug in to a ‘power pedestal’ delivering 120-volt and 208-volt power, Internet access and cable TV service. Plugged-in trucks use only one gallon of fuel per night, saving cash and reducing emissions. But so far, few truckers are plugging in.

“The problem is they don’t understand how they work,” Jubitz fuel lane manager Lee Pederson said. “Most are willing to use it once they understand how it works.”

The electrified spaces at Jubitz were installed a few years ago by Coburg-based , a nonprofit organization that works to reduce fuel consumption and emissions in heavy-duty diesel engines, and Shorepower, which has an office in Portland.

“People like to do what is tried and true,” said Sándor Lau, development director for CSS. “A lot of our trucking clients don’t have a great relationship with the government. The government says, ‘You have to comply with this regulation to reduce pollution,’ and our clients say, ‘That will cost my business money.’ ”

Nevertheless, CSS and Shorepower are again partnering to install more electrified spaces at 50 truck stops across the country. A $22.2 million award from the U.S. Department of Energy will help companies install 30 electrified spaces, $6,000 apiece, at each stop.

“I used the plug-in last time I was here in Portland, when it had first been installed,” said trucker Mike Wight, who was stopped at Jubitz for the night on Thursday. “It worked OK. But now I drive another rig, and it’s not set up for that. I think it’s a good idea, but so many trucks out there just aren’t geared up.”

Wight said long-haul trucking company North American Van Lines customizes its sleeper rigs with Shorepower equipment so they can plug in to electrified parking spaces. But other trucking companies haven’t had the time, or the money, to retrofit their vehicles. Many trucks on the roadways are nearly 25 years old, Oregon Trucking Association president Bob Russell said.

“Catalytic converters were mandated for gas vehicles in the 1970s,” Russell said. “But diesel trucks were not regulated. There is a legacy fleet of these vehicles, and they are very durable.”

Exhaust emitted by diesel trucks, called diesel particulate matter, is one of the deadliest pollutants, according to Lau, causing 21,000 deaths per year. Diesel trucks also consume 10 percent of all petroleum in the U.S.

“Diesel trucks are an essential part of the American economy,” Lau said. “The clothes you wear, the building materials you use and your groceries are all brought on these trucks. But there’s a cost to that.”

According to a report by WorkSource Oregon, transportation and material-moving jobs currently account for 10 percent of all green jobs in Oregon, and the number of green trucking jobs will increase by 34 percent in 2010. Green trucking jobs include drivers for waste management companies and biomass companies, as well as transporters of wind turbines and green building materials.

“There is a tremendous demand for drivers to transport things like wind turbines and biodiesel,” Russell said. “With wind turbine installations, each one is seven truckloads. The turbines can weigh up to 230,000 pounds.”

But Russell says companies like CSS will make the transition to cleaner diesel trucking simpler, since trucking companies can deal with them instead of the government. CSS even has storefronts at truck stops staffed with trained personnel to explain the benefits of their equipment to truckers. They also offer low-interest financing to purchase idle reduction systems, automatic tire inflation systems and other efficiency improvements for their vehicles.

“Having an intermediary between the trucking industry and the government is a great business model, and it’s one we intend to replicate,” Russell said. “These things make good business sense.”

CSS is still working with Shorepower to determine locations for the new electrified parking spaces. And in 2010, all diesel trucks will be required by the Environmental Protection Agency to have clean diesel engines. As a result, trucks’ emissions of diesel particulates will be 95 percent less.

“The exhaust from diesel will be cleaner than the air in downtown Portland,” Russell said. “I joke that we’re going to start routing the exhaust into the cab of the trucks in the interest of our drivers’ health.”

For truckers like Wight, that’s a lot of exhaust saved.

“I’ve been a trucker since 1981,” said Wight. “I’ve driven 2 million miles in my life.”

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