California Looks North for a Climate Partner

California has been lonely for the last seven years as the only state that prices carbon emissions from most sources. Oregon is expected to decide this month whether to join them.

3 minute read

June 18, 2019, 1:00 PM PDT

By Irvin Dawid


Exurban Commute

Joseph Sohm / Shutterstock

"California set itself up to be a global leader in reducing greenhouse gas emissions, but it never intended to go it alone," reports Rachel Becker for CALmatters, a nonpartisan, nonprofit journalism venture. While many states share the same commitment to fighting climate change, no other state has followed in its footsteps by pricing carbon emissions from most sources.

A bill winding its way through the Oregon legislature could finally give California a U.S. partner in the cap-and-trade program [pdf] it shares with the Canadian province of Quebec.

“California really led with all-in, and I want Oregon to be all-in, too,” said Oregon state representative Karin Power, a Democrat who co-chairs the Joint Committee on ​Carbon Reduction spearheading the bill. “We can do this. We know that science tells us we have to.”

Unlike the nine New England and Mid-Atlantic states that comprise the Regional Greenhouse Gas Initiative, a carbon cap-and-trade program which applies only to power generation, House Bill 2020 would establish the Oregon Climate Action Program which "[p]laces an overall limit across total emissions from regulated sectors to achieve the state’s greenhouse gas goals," according to the 5-page summary [pdf].

A key part of the market-based cap-and-trade program is the role played by emission allowances, described in the program's FAQ:

The state distributes a fixed quantity of emissions allowances each year. Each allowance permits an entity to produce 1 ton of emissions per year. Large emitters who are covered by the program either reduce emissions or acquire an emissions allowance. Emitters can acquire an allowance directly through auction, through trade with other entities, or in certain cases, they may receive allowances directly from the state.

Carbon prices

"The California Air Resources Board just released the results from the latest – the 15th – joint California-Quebec cap-and-trade auction, and the program seems to be performing as hoped," reported Melanie Curry for Streetsblog California on May 22. "[A]ll of the “current” allowances were sold this time, at a price of $17.45 per metric ton, which is $1.83 above the floor price of $15.62."

The price for emitting a ton of carbon dioxide or equivalent has increased $7.36, or 73 percent, since its first auction in November 2012 about 6 and one-half years ago.

Path to success

"Oregon’s bill still needs to survive the House and the Senate before it ends up on the governor’s desk by the end of June," adds Becker on June 6.

Still, its chances are looking good with a Democrat supermajority in the Oregon legislature. [HB 2020] sets ambitious targets for greenhouse gas reductions over the next 30 years: 45 percent below 1990 levels by 2035 and 80 percent below 1990 levels by 2050.

Becker goes on to describe other aspects cap-and-trade, and possible constitutional challenges with the program that would increase energy prices, which is the subject of a June 4 Willamette Week article by Nigel Jaquiss.

One issue to watch is whether the sale of allowances would be tantamount to a new tax, triggering the three-fifths supermajority requirement established by voters in 1996.  Sen. Michael Dembrow (D-Portland), the chief sponsor of HB 2020, believes it would need only a majority threshold.

Related in Planetizen:

Thursday, June 6, 2019 in CALmatters

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight