By JOHN PRINKKI and JASON PRIEST

Most Montanans agree that we need to take timely steps toward cleaner, domestic energy sources to ensure a healthy environment and economy. Now that Sens. Tester and Baucus are back in Washington they’ll have a chance to put a Montana brand on pending climate change legislation.

A key feature of the bill is Cap and Trade, which is a mandatory limit, or “Cap,” on carbon dioxide emissions combined with the right to emit up to the Cap or sell/ “Trade” that right to a third-party. The CO2 emission cap is set in Washington and the compliance costs will be determined by the vagaries of something like the stock market combined with the speculative development of new technologies.

The goal is to put a high price on CO2 emissions from fossil fuels like coal, oil, and natural gas in order to reduce their use. The hope is that as yet undiscovered energy technologies will develop faster than costs to consumers rise.

Cap and Trade won’t affect all Americans the same way: Montana ranks fourth in transportation energy costs and seventh in energy consumption per capita. We rank 49th in take home pay.

Montana’s energy-dependent economy and modest incomes mean Cap and Trade is likely to eliminate more high-paying jobs than it creates. Consider California’s experience with environmental mandates: From 1995 to 2007 manufacturing jobs decreased by 253,100 while green jobs grew by only 13,000. Longer, colder winters and longer distances to transport cattle, grains, and manufactured goods to markets mean higher energy costs and more job losses for Montanans.

The legislation expressly acknowledges there will be “adversely affected” workers in energy-intensive industries. In Montana, that includes 7,501 mining and 19,903 manufacturing jobs earning an annual average of $72,406 and $40,639 respectively in 2008. “Adversely affected” workers are eligible for “a climate change adjustment allowance” in an amount “not to exceed the average” wage for all workers in the state.

Because jobs in energy-intensive industries pay significantly more than the state average of $33,303 annually, this is up to a 54 percent pay cut for affected workers.

According to the Montana Department of Labor and Industry, workers who are able to find a green job can expect to be paid an average annual salary of $40,140. The annual salary is likely to be lower since the definition of green jobs includes many of the higher paid workers making the mining, oil, and gas industries cleaner who could lose their jobs under Cap and Trade.

Rising domestic energy costs are also likely to shift energy-intensive manufacturing to low-cost countries. According to experts, goods produced in China emit 14 percent more CO2 than if those goods are produced in America.

China is now the world’s largest emitter of CO2 and has categorically rejected emission caps. Under Cap and Trade, Montana will export high-paying jobs and import CO2 emissions: it’s a lose-lose for workers and the environment.

To create a win-win the Cap and Trade portions of the bill should be replaced with incentives for entrepreneurial solutions. Specifically:

• Replace costly subsidies for politically favored technologies with preferential tax treatment for increased R&D spending on both proven and experimental energy sources. Entrepreneurs, not Washington politicians, are more likely to discover cost-effective solutions for cleaner energy.

• Improve patent protection for new energy technology discoveries to improve the cost/benefit of entrepreneurial risk-taking.

We have a long tradition of sending representatives to Washington who stand up for hardworking Montanans. We’re confident that Sens. Baucus and Tester will do the right thing for Montana’s unique environment and economy.

Jason Priest is executive director of the Montana Growth Network. John Prinkki is chairman of the Carbon County Board of Commissioners.