Bay Area Imposes First Pollution Tax In U.S.

by Nicole

Air quality regulators in the Bay Area have become the first in the nation to impose a tax on greenhouse gases emitted by local businesses.

The board of the Bay Area Quality Management District (BAAQMD) voted overwhelmingly (15 to 1) for the measure. The fees will be imposed on around 2,500 local businesses once the new rules come into effect on July 1.

The BAAQMD's jurisdiction covers nine districts that surround the San Francisco Bay, including Napa, Sonoma, San Mateo, and Marin County. The organization is charged with attaining and maintaining air quality standards "to protect the public's health and the environment."

The region’s seven biggest polluters are expected to have to pay more than $50,000 each in the first year of the scheme, however fees for the majority of businesses are expected to be less than $1 per year. With polluters being charged a nominal fee of 4.4 cents per ton of CO2, the measure is more symbolic than punitive.

Though the penalties are low, many local business leaders are concerned that reporting mechanism will add additional, unforeseen costs, since, like our tax system, the program will be honor-based, with businesses being expected to measure their own emissions.

The measure is expected to raise $1.1 million in the first year, which will be used to fund air quality programs. Meanwhile, officials hope the scheme will set a precedent and serve as a model for others across the nation.

| 05/21/08 |