Job Preservation Comes First in Maryland Climate Bill

The last time Gov. Martin O’Malley tried to set targets for reducing greenhouse gas emissions in Maryland, steelworkers from the sprawling Sparrow’s Point mill poured into the statehouse to protest. Union leaders and industry lobbyists cornered their senators, arguing that the legislation would put thousands of jobs in jeopardy, and they succeeding in killing the 2008 bill.

On Friday, O'Malley announced a new plan for GHG targets. This time, the legislation puts economic concerns first and it gives the manufacturing industry a seven-year pass.

That might not be ideal, but it’s probably the best Maryland’s climate advocates can get in this economy. Officials say the legislation was a compromise that included industry and environmental groups including Chesapeake Climate Action Network, Maryland League of Conservation Voters, Environment Maryland, Sierra Club, and Clean Water Action. As O’Malley put it:

For our prosperity, for our current and future generations, and for the health of our state, which is so vulnerable to rising sea levels, we must take action on climate change now—not later. Maryland can't afford to be left behind.

The proposed Greenhouse Gas Reduction Act of 2009 would require Maryland to cut its greenhouse gas emissions to 25 percent below 2006 levels by 2020. That equates to a 4 percent drop from Maryland’s 1990 levels.

The state is already on pace to get halfway to that mark through recent laws that regulate power plant and auto emissions, order a reduction in energy consumption by 15% percent by 2015, and strengthen the state’s renewable energy portfolio. To finish the sprint, the new legislation would order the Maryland Department of Environment to come up with a raft of GHG-reducing regulations and programs by 2012. The MDE's primary targets will be the transportation and energy sectors, which account for about 70 percent of the state's GHG emissions. However, the legislation ties the department’s hands in the realm of industry by exempting manufacturers from new state regulations until at least 2016.

Manufacturers (accounting for about 4 percent of the state’s GHG emissions) would still be regulated by any new federal legislation or anything implemented by the Regional Greenhouse Gas Initiative, the 10-state Northeast and Mid-Atlantic cap-and-trade system.

MDE spokeswoman Dawn Stoltzfus noted one compelling argument against stricter state requirements for manufacturers in Maryland is that they would put the state's manufacturers at a competitive disadvantage compared to neighboring states, and that could have detrimental effects on the Maryland economy. A strong federal carbon cap is necessary to created a level playing for industries and workers nationwide, added Chesapeake Climate Action Network spokeswoman Anne Havemann:

Maryland can take a big step by passing this bill, but our one state can only do so much. After the passage of this bill, we’ll be setting our sights on Washington and look forward to working with Maryland’s influential federal leaders to champion much-needed climate legislation.

The Maryland bill specifies that new regulations related to GHG reduction must ensure no loss of manufacturing jobs, a net economic benefit to the state economy, and no adverse impact on the reliability or affordability of electricity and fuel. Maryland officials don’t expect that to be a problem. The MDE anticipates that the transition to a low carbon economy could be a $2 billion boon to the state through energy efficiency, conservation and new green jobs by 2020. A study by the International Center for Sustainable Development estimated the state’s plan could create between 144,000 and 326,000 jobs over the next 20 years.

The Chesapeake Climate Action Network declared O’Malley a “clean energy hero” for the new legislation. Environmental strategist Terry Tamminen, who advises California Gov. Arnold Schwarzenegger on climate issues, also praised Maryland officials for their effort: