Though some upper bound may ultimately be necessary, it must be balanced against the fact that such limits could reduce the incentive for entities to participate. The early credit incentives should apply across the broadest possible array of participants. In addition to the traditional industrial and electricity sectors, for example, other sectors and entities should be allowed and encouraged to participate, including transportation, residential, commercial and agriculture. Further, the program should include both carbon sinks and sources, inasmuch as carbon sequestration may provide significant opportunities for agricultural and forest products participants such as those operating in the Northern Forest Lands. In what may be a relatively unusual suggestion, I would recommend that states and municipalities also be allowed to participate in an early emission credit program, both because they generate emissions themselves, but also because they are often left to implement whatever it is the federal government has decided.
Great uncertainty prevails here as well.
In the case of the Acid Rain program, the federal government dealt directly with emission sources. In EPA's proposed NOx Transport SIP call, states were assigned emission budgets, and thus had a say in how allocations were made within their borders. By having the State of New Hampshire stand with them under some potential future regulatory reduction requirements, this bill would protect New Hampshire companies and other entities by reducing the risk that they might not receive appropriate credit for greenhouse gas emission reduction activities they already undertook. This measure has received bi-partisan support in the New Hampshire Legislature, and has been strongly supported by the state's business community. To date, the bill has passed the State Senate and has been recommended to the full House by the relevant policy committee.