Legislative Posturing to EndThis week the Legislative Revenue Office will release its final forecast prior to adjournment on June 30. Legislative leaders will then get serious about budget cuts and revenue raising measures as they strive to balance the budget in the face of double digit unemployment and continually falling revenues.
Last month, the budget writing Ways & Means Committee held two weeks of public meetings throughout Oregon, ostensibly to receive input on potential budget cuts. Not surprisingly, what they heard is "keep my program, cut someone else's, and don't raise my taxes.
The Oregonian newspaper has a good summary of the state budget situation at the following link.
Legislators warn that budget will come up short - Oregon, Northwest and National Politics & Elections News - Oregonlive.com
Climate Change Legislation Advances
Last week, after an hour of debate, the House passed HB 2186. This bill will allow the Department of Environmental Quality to reduce carbon emissions from transportation. Included in a long list of provisions are retrofitting medium and heavy-duty trucks, requiring low resistance tires and low carbon fuel requirements. The bill passed over the objections of the entire business community that signed a letter given to each of the 60 House members prior to the 32-27 vote. The bill now moves to the Senate where it may undergo further changes.
Meanwhile, negotiations continue over SB 80, originally Governor Kulongoski's Cap & Trade legislation. Oregon's two investor-owned utilities, PGE and PacifiCorp, have developed alternative legislation they are shopping to the business community, environmentalists and the Governor's Office. Previously, the utilities were part of a business/industry/labor/homebuilders coalition. However, pressure from the Governor's Office led to the utilities floating a new proposal.
This week the business coalition is meeting with the utilities to suggest changes to the legislation. With the House passage of HB 2186, the future of all climate change legislation is not clear, not that it has ever been this session.
Klamath Dam Removal Bill RestartedAfter passing the Senate in a rush in February, SB 76 had a hearing in the House last week. The bill will allow PacifiCorp to charge rate payers $200 million for the cost of removing four dams in California on the Klamath River. The House Environment and Water Committee took no action following 2.5 hours of testimony.
Representative Bill Garrard, R-Klamath Falls, led off with a scathing critique of the bill. Rep. Garrard stated the timing is bad for PacifiCorp ratepayers in Oregon. He quoted two feasibility studies that estimated environmental mitigation costs could approach $4.5 billion. He was critical of all aspects of the bill and the agreement: Oregon ratepayers pay out of pocket in higher rates, while California pays their share through a yet to be approved bond measure, the negotiation process that yielded the Klamath agreement was conducted in secret precluding some stakeholders.
Mike Carrier, Governor Kulongoski's Natural Resource Policy Advisory, testified in support of the bill and the -14 amendments. His theme, which was repeated throughout the hearing, was that dam removal was cheaper than the unknown costs that would be incurred through re-licensing the four dams.
Senator Rick Metsger, D-Welches, testified in opposition to the bill, but offered his -8 amendment. His amendment would direct the PUC to decide how much of the 3% Public Purpose Charge PacifiCorp customers already pay should go to the $200 million dam removal costs over the next 10 years. Sen. Metsger maintained that the dam removal is the type of project envisioned by him and the other drafters of SB 1149 in 1999 when the PPC was created. Ratepayers shouldn't have a double hit of 3% and 2% for Klamath dam removal.
The remainder of the hearing included proponents: farmers, tribes, environmentalists, the Citizens Utility Board and PacifiCorp and opponents: "off-project" farmers and local community activists. Gail Whitsett, wife and staff for Sen. Doug Whitsett, R-Klamath Falls, stated that their constituent emails were running 10:1 opposed to the bill.
Chair Rep. Ben Cannon, D-Portland, concluded the hearing without announcing any next steps for the bill.
For the report on OSWA legislation, click on:
OSWA Bill TrackerLogin: OSWA; Password: session09
For more legislative information, click on:
Conkling Fiskum & McCormick Insider Online.
