Tag: environment

Portland’s Ill-Considered Climate Action Tax

By Micah Perry

Last fall, Portland voters approved a new 1% tax on large retailers to help the city achieve the goals of its Climate Action Plan. This measure has had serious consequences for Portland businesses.

Before the vote, proponents of the new tax described large retailers as places like Walmart or Fred Meyer. But, according to Dan Drinkward of Hoffman Construction, the city’s implementation of the measure “has gone beyond the clear intent of the measure as it was communicated to voters.”

Because of the measure’s broad language, many construction companies are defined as retailers and will have to pay the tax. Their clients will ultimately bear the cost increases—clients like Portland Public Schools, low-income housing developers, and the City of Portland itself.

Portland’s schools will especially suffer. The district’s projects have already increased in price because of the tax, with the Lincoln High School rebuild now costing an extra $2 million.

While certain foods, medicines, and health care services are exempt, other necessities like clothing and toiletries are subject to the tax, making Portland’s cost of living even higher, especially for low-income residents.

It would only take three commissioners from the Portland City Council to revise or repeal this poorly-thought-out tax. For the sake of the city, Portland’s voters must call on them to do so.

Micah Perry is a Research Associate at Cascade Policy Institute, Oregon’s free market public policy research organization.

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SW Corridor Project: A Net Negative for the Environment

By John A. Charles, Jr.

Portland politicians claim to be concerned about carbon dioxide emissions and climate change. That’s why so many of them support TriMet’s proposed 12-mile light rail line from Portland to Bridgeport Village near Tigard. They think it will reduce fossil fuel use.

Their assumptions are wrong.

According to the Environmental Impact Statement (EIS) for the project, energy used during construction of the rail project will equal 5.9 trillion Btu. Much of this will be in the form of fossil fuels needed to power the heavy equipment. Additional energy will be used to manufacture the rail cars, tracks, and overhead wires.

The EIS claims that the negative environmental consequences of construction will be made up by energy saved from operations of the train. However, the operational savings are so small it would take 61 years to mitigate the carbon dioxide emissions of construction.

2035 Daily Vehicle Miles Traveled and Energy Consumption 

Vehicle Type Daily VMT – No build option Million Btu/Day – No build option Daily VMT

With Light Rail

Million Btu/Day

With Light Rail

Passenger vehicle 51,474,286 249,084 51,415,071 248,798
Heavy-duty trucks 3,389,982 73,132 3,389,288 73,117
Transit bus 100,122 3,546 97,501 3,453
Light rail 19,189 1,247 21,200 1,377
TOTAL 54,983,579 327,009 54,923,060 326,745

                                          Source: Draft EIS, SW Corridor Project

Unfortunately, all of the light rail cars will need to be replaced before then. Building new cars will require more energy, resulting in additional CO2 emissions and a longer payback period.

Light rail is not a solution to a perceived climate change problem; it IS a climate change problem. Any further planning for the SW Corridor project should be terminated.

John A. Charles, Jr. is President and CEO of Cascade Policy Institute, Oregon’s free market public policy research organization.

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Testimony on HB 4001/SB 1507 Regarding Energy Rationing for Environmental Quality

Testimony of John A. Charles, Jr.

President & CEO, Cascade Policy Institute

 Regarding HB 4001/SB 1507

February 7, 2018

Members of the Committee: I have spent the last 45 years of my life promoting environmental quality. I began my career working for the Environmental Defense Fund, a group that was an early innovator in market-based mechanisms. From 1980 through 1996 I was CEO of Oregon Environmental Council, where I helped pass dozens of environmental laws. Since 1997 I have worked for Cascade Policy Institute, promoting concepts such as congestion pricing of roads.

If I thought that HB 4001 and SB 1507 could deliver significant pollution reductions at reasonable cost I would support them, but they will not. To summarize the problem in one sentence, the bills require Oregonians to pay a significant tax that will be certain, immediate, and local; for benefits that are speculative, long-term, and global.

This stands in sharp contrast to environmental policies such as drinking water regulations. Provision of safe drinking water does have a major cost, but the benefits are substantial and they accrue 100% to those who pay. Oregonians are quite willing to bear the expense of such programs because they demonstrably make us all better off. This will never be the case with carbon dioxide regulation.

Moreover, even assuming that reducing CO2 has some local benefit, the relevant trends are already moving in the right direction. According to the most recent legislative report from the Oregon Global Warming Commission, the “carbon intensity” of Oregon’s economy – that is, greenhouse gas emissions/unit of state GDP – dropped 64% from 1990 through 2015. This is a spectacular achievement, and it is driven almost entirely by market forces.

Last week the Environmental Protection Agency released its latest update of automobile emissions trends for carbon dioxide. The report shows that CO2 emissions per mile for all motor vehicles sold in 2017 were the lowest since the agency began collecting data in 1975.

For truck SUVs, the reduction since 1975 was 50%. For minivans it was 51%. For standard passenger cars it was 55%. Almost miraculously, automakers have produced the cleanest cars in history while also making them safer and more pleasant to drive than the 1975 models.

There is no crisis in Oregon regarding CO2 emissions. The trends are positive and long-term. This is a case where you should simply “do no harm” by staying out of the way.

John A. Charles, Jr. is President and CEO of Cascade Policy Institute, Oregon’s free market public policy research organization.

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John Charles Carbon Rationing Testmony HB 4001 2-7-18

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For Green Activists, the Cleanest Cars in History Are Bad News

By John A. Charles, Jr.

The Oregon Legislature convened again this week. A top priority for some officials is SB 1507,

which would create an energy rationing program that likely would increase the cost of gasoline to more than $7 dollars per gallon by 2035. This is being promoted as a means of reducing carbon dioxide, which some people think is a pollutant.

Coincidentally, the Environmental Protection Agency just released its latest update of automobile emissions trends for carbon dioxide. The report shows that CO2 emissions per mile for all motor vehicles sold in 2017 were the lowest since the agency began collecting data in 1975.

For truck SUVs, the reduction since 1975 was 50%. For minivans it was 51%. For standard passenger cars it was 55%. Almost miraculously, automakers have produced the cleanest cars in history while also making them much safer and more pleasant to drive than the 1975 models.

One would think that environmental advocates would be pleased with this success story, but good news is actually bad news for activists. They can only pass onerous legislation when everyone thinks we have a crisis.

We don’t have a crisis, and we don’t need this bill.

John A. Charles, Jr. is President and CEO of Cascade Policy Institute, Oregon’s free market public policy research organization.

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