PHOENIX — Gov. Janet Napolitano is pushing ahead with plans to impose new greenhouse gas restrictions on some Arizona businesses without first asking for approval from lawmakers or state utility regulators.
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Faeth said the actual language that will go to Napolitano and the governors of six other Western states and four Canadian provinces will not be ready until September. And it will not be until then,
Faeth said, that Napolitano will begin exploring how to make it happen.
Faeth said it is premature for Napolitano to decide whether she needs permission from lawmakers.
But the governor has a bit of a track record on this issue: She imposed new carbon dioxide emission standards for cars and trucks earlier this year by rule. And she vetoed legislation which would have required her to get such approval, not just for vehicle emission standards but the cap and trade system this proposa would implement.
Going around the Legislature could provoke a lawsuit.
Bill Mundell, a long-time member of the Arizona Corporation Commission, said Napolitano definitely cannot impose emission limits on power plants on her own.
“We have to decide how to pay for it,’’ Mundell said. He said estimates already presented to the commission suggest that imposing a cap-and-trade system could raise the cost o electricity by anywhere from $50 to $80 a month from coal-fired plants — major emitters of carbon dixoide — which provide much of the power to Arizona customers.
“Under the state constitution the commission is considered a fourth branch of government,’’ he said. “Any proposal she make needs the approval of the commission.
That may be only part of the legal dispute. Glenn Hamer, president of the Arizona Chamber of Commerce and Industry, said both lawmakers and utility regulators should b involved.
“If this is just something that happens through executive action— and if it happens through executive action without meaningful stakeholder involvement — I’m sure that it would be challenged in all appropriate ways,’’ Hamer said.
But he stopped short of
saying that his organization would be filing the suit.
The essence of a “cap and trade’’ system starts with an inventory
of how much greenhouse gas each source is emitting. At this point
the plan is to use 2012 as a base year.
There then will be a schedule of how much that needs to be cut
and how fast.
Companies that are unable to meet those reductions would be
entitled to purchase pollution credits from other firms who cut
emissions more than the target.
Members of the Western Climate Initiative last year agreed to a
regional goal of cutting greenhouse gases by 15 percent below
2005 levels by 2020. How much would be required by each state is
yet to be determined.
And Napolitano separately said she wants to cut greenhouse gas
emissions in Arizona to 2000 levels by 2020, and by half that by
2040.
Legal issues aside, Hamer said having Arizona and a handful of
other states act on their own to reduce greenhouse gases makes
bad economic sense. He said higher costs to business, both
directly and in utilities, will only speed the transfer of jobs
to other states without similar caps.
But Hamer’s organization would not be satisfied with even a
nationwide program. He said developing countries like China and
India should be required to impose meaningful reductions on their
own carbon dioxide emissions to avoid “massive transfer of
wealth’’ to other countries with laxer air quality regulations
than already exist in Arizona and the United States.
Napolitano last year directed her Department of Environmental
Quality to enact greenhouse gas emission standards for cars and
trucks sold in Arizona.
The Legislature responded by passing a bill requiring their
approval for any such standards. That would not only have
sidelined the vehicle standards but forced the governor to get
the blessing of lawmakers for the cap and trade system. But
Napolitano vetoed the measure, calling it “micromanagement.’’
Sen. Jake Flake, R-Snowflake, died before following through with
his threat to attach the provision to other environmental
legislation the governor wanted.
While the rules on vehicle emissions were subsequently adopted,
they cannot take effect unless and until a federal court rules on
a challenge by California to the refusal of the U.S.
Environmental Protection Agency to let states adopt stricter
standards than federal limits, of which there are none. Arizona’s
regulations are a virtual carbon copy of the California rules.





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