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BAAQMD Considering Greenhouse Gas Fee on Businesses

Source: San Jose Mercury News, 2/9/08

In an effort to confront climate change, the Bay Area Air Quality Management District (BAAQMD) is proposing a new fee on businesses based on their greenhouse gas emissions. If adopted, it would be the first such fee in California – and perhaps the United States.

The proposal would charge 4.2 cents for every metric ton of carbon dioxide emitted by any of the 10,000 “stationary sources” regulated by the Air District, including power plants, oil refineries, landfills and restaurants (homes and vehicles would not be affected). The fee would raise estimated $1.1 million annually and go towards the air district’s global warming reduction programs. The largest emitter of greenhouse gases in the Bay Area, the Shell oil refinery in Martinez, would pay $186,475 a year for its 4.4 million annual metric tons of emissions, while many small businesses would pay as little as $10 a year.

"The climate is changing, and we think that everybody needs to help with the solution and pay their fair share to reduce greenhouse gases," said Jack Broadbent, the Bay Area Air Quality Management District’s Executive Officer. "This is the next step in addressing the problem. The public is demanding that we be part of the solution."

While environmentalists lauded the proposal as a watershed event, industry officials cautioned that it would drive up energy costs for consumers and could lead to a patchwork system of regulations that lacks any uniformity across the state. BAAQMD currently relies on a number of voluntary measures to reduce greenhouse gas emissions, while the European Union currently administers a “cap-and-trade” carbon market that is also being pursued by a group of New England states as well as the leading Presidential candidates.

The air district’s board is expected to begin discussing the proposal in March and holding a final vote sometime in May. Information on the rule proposal can be found at www.baaqmd.gov/pln/ruledev/workshops.htm. To read the entire article, please visit: http://www.mercurynews.com/healthandscience/ci_8215767?source=email.

Media Contact: Dave Low

(408) 998-5865, david@lungsrus.org