Tuesday, Mar. 03, 2009

Modesto forum addresses local climate response

Air Resources Board's fulfillment of bill presents area energy users with some formidable challenges

California's effort to deal with climate change could hamper Modesto area businesses and raise rates for electricity users, speakers said at a forum Monday.

They said businesses face high costs for reducing carbon dioxide and other emissions, and uncertain prospects for a "green" economy based on renewable energy and other innovations.

"It assumes that businesses have unlimited capital to invest," said Jan Marie Ennenga, executive director of the Manufacturers Council of the Central Valley, based in Modesto. "It projects phantom jobs to replace real jobs."

The forum drew about 90 people to a Modesto Irrigation District meeting room. It was sponsored by MID, the city of Modesto and several business groups.

The California Air Resources Board is carrying out Assembly Bill 32, signed in 2006. It aims to reduce emissions believed to be contributing to generally higher temperatures, rising sea levels and shrinking of valley water supplies from the Sierra Nevada snowpack.

The effort includes greatly reducing the use of carbon-heavy fuels in vehicles, buildings, appliances and elsewhere. It also calls for absorbing some of the carbon in forests and on farmland -- practices that could earn landowners money -- and capturing methane from livestock manure and other sources.

The plan aims to reduce the state's total emissions to the 1990 level by 2020, part of a long-term goal to cut 80 percent by 2050.

Dorene D'Adamo, an air board member from Turlock, said the effort provides a mix of regulations and incentives. These include a "cap-and-trade" system, in which companies that reduce emissions earn credits that they can sell to emitters who are not reducing.

"We do expect that the economy is going to turn around, and we also expect to see a lot of green jobs, but it's going to be very challenging as we move forward," D'Adamo said.

Cynthia Cory, environmental affairs director for the California Farm Bureau Federation, said research is needed on just how farmers could capture carbon in crops and earn money for the service.

The plan calls for 33 percent of the state's electricity to come from renewable sources by 2020. These include solar, wind and small hydroelectric plants, but not large dams.

MID is at 12 percent but faces about $30 million in added annual costs to reach 33 percent, said Joy Warren, regulatory administrator for the district.

She said an average residential bill could rise from $145 a month now to $200 in by 2020.

Modesto City Councilwoman Janice Keating, who moderated the forum, also cited the effect on residents.

"I'm very concerned about the average everyday person here in the Central Valley who is ultimately going to pay the cost at the bottom of the stack," she said.

Bee staff writer John Holland can be reached at jholland@modbee.com or 578-2385.