Mandatory US carbon caps coming following elections:
observers
Washington (Platts)--9Nov2006
Now that Democrats have won control of at least one chamber of the US
Congress, electric utilities should expect a strong legislative push for
mandatory caps on carbon dioxide emissions that are blamed for global warming,
business and legal experts told a conference in Washington Wednesday.
William Bumpers, a Washington attorney who represents electricity
generators, petroleum refiners and other energy-related companies, said
mandatory carbon caps are clearly on the horizon.
"Most thoughtful companies are recognizing that regulation of greenhouse
gas emissions is inevitable," Bumpers told a climate change conference at
American University's Washington College of Law. "And after yesterday's
elections, it's coming very soon."
Bumpers said there was "no question in [his] mind" that the first climate
bill that Democrats will take up when Congress convenes in January is a
measure that Representative Henry Waxman, Democrat-California, introduced in
June. Waxman's measure--HR 5642--would cap emissions at current levels
beginning in 2010 and ratchet them down to 80% below 1990 levels by 2050.
Bumpers said Waxman, a senior member of the Energy and Commerce Committee
and presumptive member of the Government Reform committee, has attracted more
than 100 co-sponsors for his bill. But one key Democrat who is not on that
list is Representative John Dingell of Michigan, the presumptive chairman of
the Energy Committee.
Dingell told reporters Wednesday that he will "consider" mandatory carbon
caps, but he stopped short of promising any specific legislation.
Peter Lehner, who heads the environmental section of the New York
attorney general's office, echoed Bumpers' view that Democrats would push for
climate-change legislation when Congress returns in January. Lehner, though,
declined to speculate on the prospect of such a bill passing the House and the
Senate and being signed into law by President Bush.
Lehner did say, however, that a comprehensive climate bill may have an
upside for Bush and Republican lawmakers, who oppose mandatory emissions caps.
This is because, Lehner said, such a bill could render moot several
high-profile lawsuits that seek to force US government agencies and/or power
companies to reduce greenhouse gas emissions.
One such suit that Lehner filed seeks to force American Electric Power,
Southern Company and other large US electric utilities to curb their CO2
emissions on the grounds that they are a "public nuisance" that contributes to
global warming.
"Our case is out the window" if Congress passes a comprehensive climate
bill, Lehner said.
Meanwhile, speakers at the conference also said financial institutions
are starting to take emissions into account on the energy projects they fund.
"The banks are going to demand" this type of climate analysis, Bumpers said.
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