Budget deficit forces trim in climate plans

Recognizing a tough budget situation, the state is planning to pursue a less-aggressive plan to curb climate change than many had hoped.

The centerpiece of the plan is a regional cap-and-trade system that would limit the amount of greenhouse gases that industrial polluters emit while allowing them to buy and trade credits for the amount they can produce.

But some of the ambitious recommendations put forth by a task force Gov. Christine Gregoire established last year likely won't be pursued when the Legislature convenes next month.

Gregoire last week released a pared-down state budget proposal in response to a projected deficit of nearly $6 billion, with calls for across-the-board cuts.

"We'll do as much as we can within the confines of the budget," said Tony Usibelli, assistant director of the Department of Community, Trade and Economic Development. "That's the difficulty we're running up against."

A report released Monday by several state agencies relies heavily on a regional cap-and-trade program to fight climate change.

Concerned about the bad economy and pressure on businesses, Gregoire is leaning toward giving away most of the pollution credits, rather than auctioning them off as environmentalists had hoped.

But Ecology Department Director Jay Manning said Gregoire is still making climate change a priority, and pointed to her pursuit of cap-and-trade regulations in this economic climate.

The governor's proposed budget includes about $25 million for climate change, including money to add solar panels to three state prisons, increase the energy efficiency of public buildings and fund anaerobic digesters to reduce waste.

The Climate Action Team, which Gregoire convened last year to come up with concrete ways to fight climate change, earlier this month called for more energy-efficient buildings, compact urban development, better collection of recycled materials, reduced driving and revised development rules to account for greenhouse-gas emissions.

Janice Adair of the state Department of Ecology said the state won't pursue some of those recommendations next year, such as giving tax credits to buildings that reduce energy use.

She said other groups or legislators may push for them, and some efforts, such as revising the energy code to reduce energy use, can still be done.

Some environmentalists are understanding.

"It's obviously a dismal budget situation," said K.C. Golden, policy director with Climate Solutions. "We're not expecting enormous public investment."

He said there's opportunity for private investment in energy-efficient buildings and through the cap-and-trade program.

The plan initially calls for selling at least 10 percent of credits to polluters through an auction and giving away the rest.

Eric de Place, a senior researcher with the Sightline Institute, a Seattle think tank, said he was disappointed. However, a spokesman for the Association of Washington Business, Grant Nelson, questioned whether this was the year to go forward to new regulations on businesses.

Seattle Times staff reporter Warren Cornwall contributed to this report.