HomeMy WebLinkAbout10-25-20 Public Comment - K. Walser - Comments on the Bozeman Climate Plan from Bozeman Citizens' Climate LobbyFrom:Kristen Walser
To:Agenda
Subject:Comments on the Bozeman Climate Plan from Bozeman Citizens" Climate Lobby
Date:Sunday, October 25, 2020 11:32:24 PM
The Bozeman chapter of Citizens’ Climate Lobby commends the City of Bozeman’s Climate
Team for their hard work in preparing this Climate Plan draft. The goal to achieve a 26%
emissions reduction below 2008 levels by 2025, even with the population growing, and net zero emissions in the electricity sector by 2030 is in line with what the scientists say must
happen to avoid the worst impacts of climate change. We also applaud the focus on equity and the City wanting to take a leadership role on climate.
As written, it will be difficult to reach these near term goals, where around 60% of the
reductions in the first 5 years will come from the power sector, and will require cooperation
from the investor owned utility Northwestern Energy to quickly reduce fossil fuels in its
energy mix. As the EnROADS (https://www.climateinteractive.org/tools/en-roads/) and other
emissions modelling shows, just increasing renewables does not reduce fossil fuel
emissions- only reducing the burning of fossil fuels reduces their emissions. Northwestern
Energy’s current plan to keep the Colstrip coal burning plant online until 2042 undermines
whatever increase in renewables can be negotiated. The Climate plan does recognize that
Northwestern Energy will need to reduce coal-fired generation to meet long term goals. We
think it will be necessary for both 2025 and 2030 short term goals.
There is a market-based mechanism to disincentivize fossil fuels in the utility mix and
encourage alternatives, namely to place a fee on the carbon content/pollution of fossil fuels.
There are currently 12 carbon pricing bills currently in Congress, and if any one of them
pass, Northwestern would have to insert that variable into their Resource Procurement Plan
modeling, completely enhancing the economic viability for renewables. This would also
provide certainty and predictability to all Colstrip stakeholders, including workers.
Unlike some carbon pricing, for instance cap and trade, carbon fees placed on fossil fuels
‘upstream’ at the point of production are a simple way to provide for economy-wide
incentives across all sectors (transportation, buildings, electricity) and stakeholders
(consumers, business, utility, government). Carbon fees would help Bozeman achieve ALL of its efficiency, renewable energy, and emissions goals.
The Bozeman Climate plan states "The City of Bozeman recognizes that the
Intergovernmental Panel on Climate Change (IPCC) considers carbon pricing “necessary”
to reach carbon reduction goals”, that national carbon pricing legislation enacted by
Congress would be the most efficient way to implement this market-based approach”, and that it should engage “in discussions about market-based policies in
order to effectively reduce greenhouse gas emissions by spurring low/no carbon innovation,
and work in a way that sustains local economic development and offers other benefits to
Bozeman and rural Montana.”
Carbon pricing does have a chance to pass Congress in a suite of climate bills expected in
2021, and has garnered support from scientists on the Intergovernmental Panel on Climate
Change (IPCC), who recognize that carbon pricing is necessary to keep warming to 1.5
degrees C. The scientists are joined by 3500 Economists, The Business Roundtable of 200
US CEO’s, even the Pope! The World Bank has documented 62 countries that have
already or are planning to implement carbon tax or cap and trade
policies.https://openknowledge.worldbank.org/handle/10986/33809
There were also 2 carbon pricing bills in the 2019 Montana Legislature.
To be a leader, the City of Bozeman should be ready to act in support, by specifying a set
of carbon pricing principles by which to evaluate legislation in advance of these upcoming
sessions. If discussions begin now, these Principles could be included within the Plan.
Here’s a simple example: https://www.businessclimateleaders.org/endorse-carbon-pricing-
principles and we would be glad to furnish other examples.
There are many different ways to design carbon pricing, but there is an excellent example
in a current bill in Congress, the Energy Innovation and Carbon Dividend Act (H.R. 763),
which embodies a specific type of carbon pricing called Carbon Fee and Dividend, or just
Carbon Dividend. It is simple, effective, market-based, incentive-based, fair, good for
people and the economy, and revenue neutral.
It protects those on low or fixed incomes: the slowly rising fossil fuel costs are offset
for consumers by a monthly 'Carbon Dividend' (provided by the carbon fee revenue).
98% of the lowest income folks get back more than they spend in added costs, and on average 68% of individuals get back
more! https://citizensclimatelobby.org/household-impact-study/
It’s good for the economy: People spend their dividend locally, creating 2.1 million
jobs in 10 years.
It’s predictable for business: The Carbon fee of $15/ton of CO2 emitted, rising at
$10/year.
It’s effective: The Center for Global Energy Policy (Columbia University) and the Rhodium
Group did an assessment of the Energy Innovation Act https://energypolicy.columbia.edu/sites/default/files/file-uploads/EICDA_CGEP-Report.pdf
“GHG emissions decline substantially. Compared to 2005 levels, implementing
EICDA as a stand-alone policy leads to economy-wide net GHG emissions
reductions of 32–33 percent by 2025 and 36–38 percent by 2030. These
emissions reductions exceed the targets in the EICDA proposal through 2030
and exceed the US commitments to the Paris Agreement over this period. Most of the near-term emission reductions occur in the power sector,
where emissions fall 82–84 percent by 2030.
Electricity generation shifts to cleaner sources. The price on carbon causes the US economy to shift from carbon-intensive energy sources to low- and zero-carbon energy sources. Coal is nearly eliminated from the power sector by 2030, with solar, wind, nuclear, and natural gas with carbon capture and storage all providing significantly larger generation shares compared to a current policy scenario.”
It covers almost all greenhouse gasses.
It would be administered federally so there are no state or local costs, caps
administrative costs, phases in predictably, and phases out based on reaching
emissions targets.
It works quickly: mandated to be operational within 270 days, immediately influencing
short and long term decision-making and innovation of governments, utilities,
corporations, and consumers. If its emissions targets are not met, the price rises an
additional $5 the following year.
It has support: It has 82 Co-Sponsors in the House. 121 local governments have
passed resolutions in support. In Montana, the Montana Ski Area Association,
Montana Trout Unlimited, Onsite Energy, and 12 other businesses have endorsed it.
https://energyinnovationact.org/supporters-overview/
It protects American competitiveness in the global market and encourages other
countries to adopt similar policies
It has bipartisan appeal: revenue-neutral, phases out, pauses duplicative GHG
regulations, exempts agricultural fuels
Advocating for effective and fair carbon pricing should be an integral part of the
Bozeman Climate Plan
Lead by 'engaging in discussion about market-based policies' before the start of the
next Congressional and State 2021 legislative sessions, when bills will be introduced
Adopt carbon pricing principles in the Climate Plan to serve as a roadmap for
discussion of specific bills to support in 2021
Ask Congress to support bills that embody the carbon pricing principles of
effectiveness and equity, like the Energy Innovation and Carbon Dividend Act (H.R.
763), which has more co-sponsors than any other carbon pricing bill.
Support the Energy Innovation and Carbon Dividend Act (H.R. 763), (There are
currently 121 local government resolutions)
Require Northwestern Energy to use a carbon price in their Resource Procurement
modeling in the range of pricing structures found in the 12 carbon pricing bills
currently in Congress, whether or not a bill is passed.
Please do not hesitate to contact me if you have any questions!
Thank you for your commitment to protecting our future!
On behalf of the Bozeman Chapter of Citizens' Climate Lobby,
Kristen Walser
Co-Lead, Bozeman ChapterState Co-Coordinator MT
Citizens' Climate Lobbycitizensclimatelobby.org
406.551.0388
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