A proposal crafted through the Western Climate Initiative aims to reduce carbon dioxide and other gas emissions by 15 percent by 2020.
But the plan for now is just a framework, "the beginning of extensive discussions that will continue with our Legislature and stakeholders to ensure the design works for Utah," said Dianne Nielson, Huntsman's energy policy adviser.
Already, though, some state lawmakers worry that the initiative could hinder the state's economic growth.
"We want to protect the environment. We want to protect the air quality and do all those things . . . but we want to make sure that the coal industry and some of these that are important economic drivers for our state" are not harmed, said House Speaker Greg Curtis, R-Sandy, who was briefed on the program Monday.
As proposed, the Western Climate Initiative, which includes seven Western states and four Canadian provinces, will use emissions from 2010 as a baseline for cap-and-trade.
Beginning in 2012, each partner will be granted emission "allowances" that will move the state to the WCI's goal.
It then will be up to each state or province to decide how to distribute its allowance.
Carbon "offset" credits from uncapped sectors or entities that reduce emissions could be auctioned.
Nielson said that Utah's approach to greenhouse gas reductions would be spelled out in a bill to be written for the 2010 Legislature.
A task force - composed of lawmakers, executive branch representatives, industry, utilities, energy producers, consumer groups, environmental advocates, local government and others - would be assembled to nail down the details the bill would include, she said.
Under the WCI framework, emissions would be rigorously monitored. If a company, utility or some other entity doesn't have enough allowances to cover its emissions, it could lose some of its allowances as a penalty, forcing it either to buy more credits or cut its emissions.
When Huntsman enlisted the state in the Western Climate Initiative in 2007, some lawmakers were irritated that they weren't consulted first. A bill aimed at limiting the governor's power to enter into such agreements in the future passed the Legislature by an overwhelming margin last session, but Huntsman vetoed it and agreed to consult with legislative leaders before he commits the state to future partnerships.
Curtis said lawmakers want to know more about the cap-and-trade plan.
''I don't feel like we've been deeply consulted,'' said Curtis, who had a planned meeting on the proposal with the governor Monday, but it was replaced with discussion of the state's $272 million budget shortfall.
WCI proponents say that, in addition to reducing emissions, the plan would ease dependence on fossil fuels and spawn new "green" industries.
Utah Clean Energy executive director Sarah Wright said Utah's approach likely would be conservative because the state could achieve the "cap" part of the plan largely through an aggressive energy efficiency program Huntsman already has in place.
"It's not a sea change in the way we generate and use energy," Wright said. "We're not going to be closing down coal plants."
Nielson said the WCI wanted a cap-and-trade plan rather than a carbon tax, which would have been more expensive.
"We want it to be an affordable system," she said. "We're looking to be sure we have a diversified energy base, and that includes coal," she said.
Britt Weygandt, executive director of the Western Business Roundtable, a pro-industry group, said the organization is still examining the WCI plan. However, he said, a regional cap-and-trade system "would dramatically increase costs to consumers in the West of virtually everything we buy."
That's not how the Union of Concerned Scientists sees it. Christopher Bush, a UCS climate economist, said analyses conclude that region's economy would benefit from investments in global warming solutions.
Plan includes seven Western states, four Canadian provinces
The Western Climate Initiative includes Arizona, California, Montana, New Mexico, Oregon, Utah and Washington and Canadian provinces British Columbia, Manitoba, Ontario and Quebec.
The group has advanced a plan to reduce global warming pollution by capping greenhouse gas emissions and allowing auctions or trades of credits allocated according to a monitored system.
Each state and province will create its own path to the overall goal of reducing emissions to 2005 levels by 2020.
In Utah, a panel of interest groups will craft necessary policy for consideration by the 2010 Legislature.
All large utilities and industries that emit more than the equivalent of 25,000 metric tons of greenhouse gases must by federal law submit a report on their actual emissions by 2011.
The deadline for WCI member states and provinces to implement their cap-and-trade systems is 2012.

