President Responds to High Court

 

 
  May 23, 2007
 
The Bush administration is now outlining how it will achieve carbon dioxide cuts, all in the wake of a U.S. Supreme Court ruling that says those emissions tied to global warming can be regulated under the Clean Air Act. While the measure falls short of what the green community would like, the president says it is practical, voluntary and innovative.

Ken Silverstein
EnergyBiz Insider
Editor-in-Chief

The cornerstone of the blueprint would cut gasoline consumption by 20 percent from the currently projected levels and do so by 2018. That proposal is actually not new and was originally announced by the president in his annual State of the Union address. That goal would be accomplished by requiring fuel makers to increase their production of alternative fuels that include ethanol by a factor of four. It would also be done by increasing the fuel efficiency standards in vehicles, but not to the extent that some Democratic lawmakers would like.

In a Rose Garden ceremony, Bush said the matter could be achieved independent of legislation and through an executive order. He then directed four federal agencies that include the Environmental Protection Agency as well as the Energy, Agricultural and Transportation Departments to get proposed rules out by fall and have them ready to implement by year-end 2008.

Twelve states and several others had sued the EPA, saying it had neglected to perform its duties by failing to regulate carbon dioxide (CO2). The case reached the high court, which said recently in a 5-4 opinion that the EPA had the authority to regulate the emission. Bush said that a resolution to the matter is highly complex and that it will take time to do -- comments that angered many environmentalists and Democratic lawmakers, who countered that it is just a delay tactic to avoid serious action.

Bush's plan "will fall far short of fixing the climate problem" without mandatory caps on carbon emissions, says Fred Krupp, president of Environmental Defense. "Whether EPA will lead the fight against global warming or lead us to a hotter planet remains to be seen," he adds, imploring the president to join the American mainstream.

The green community generally supports a more progressive posture such as the one passed recently by a Senate committee raising the Corporate Average Fuel Economy Standards to 35 miles a gallon by 2020, and a four percent increase for 10 years after that -- a move that the president says would make cars less safe and more expensive. Those standards now average about 25 miles per gallon and have remained that way since 1985.

With Democrats now controlling Capitol Hill, legislation that would try to curb heat-trapping emissions appears likely. That position is supported in a new report by the United Nations that sought the views of about 2,000 scientists. Those experts concluded that action to stabilize the levels of greenhouse gases is needed within eight years or the consequences of higher temperatures would be irreversible.

Passions Rising

The spotlight has created forward momentum to cut CO2 levels that originate from both cars and power plants. A coalition of major corporations and environmental groups in January announced an agreement to back action on global warming, including an aggressive, market-based cap on carbon emissions. The companies include Duke Energy, FPL Group, GE, Lehman Brothers, PG&E Corporation and PNM Resources.

"FPL Group is proud to be among other industry leaders and stakeholders who are part of this positive collaboration to support the formulation of mandatory policies to reduce CO2 emissions for our country," says Lew Hay, CEO of FPL Group, which is a major provider of renewable energy in this country.

The Environmental Defense, which led the effort, stressed the importance of involving business. Such a move not only will increase the pressure on Congress but it will also work to ensure that any plan for fixing climate change is an economic plus.

A cap-and-trade system that sets limits on emissions and allows companies that meet those limits to bank or sell credits is the centerpiece of that agreement. The collective group proposed a cap and trade system to cut greenhouse gas emissions 60 percent to 80 percent from current levels by 2050, with interim targets at 5, 10, and 15 years.

Not all are rallying to the cause. President Bush's announcement that his administration will push for higher fuel economy standards and an increase in the use of alternative fuels was met with disappointment by energy policy analysts at the free-market Competitive Enterprise Institute. Those critics say it would do almost nothing to reduce foreign oil dependence. It would, instead, just increase gas prices even more.

"With gas prices rising, Americans are already moving to conserve oil and boost fuel efficiency in a far more intelligent manner than that proposed by the president," says Sam Kazman, general counsel for the institute. "Higher fuel economy standards will only succeed in restricting consumer choice, destroying jobs, and increasing traffic fatalities."

But the Center for American Progress disagrees, saying President Bush's Executive Order is a "baby step" and is simply not enough to combat the global warming phenomenon or the country's increased demand for foreign oil. With gas prices now at record highs and with respected experts all warning of dire consequences, the non-partisan group of educators says that now is the time to take decisive action.

Besides stiff fuel efficiency standards and a free market approach to allow CO2 emissions trading, the organization is advocating the creation of a national cap on emissions that is followed by mandated annual reductions in CO2 emissions. It is also asking Congress to establish a renewable portfolio standard that mandates 25 percent of all electricity come from clean energy alternatives such as wind and solar by 2025.

Those general views are taking hold in Middle America. The issue has moved away from whether policymakers should act to curb CO2 emissions over to just how they should go about reaching such reductions. The president's more considered plan is too plodding for those who argue for more determined steps. The reality is that it takes a consensus to make bold changes and any plan is likely, in the initial stages, to be modest.

More information on this topic is available from Energy Central:

Global Warming in Court - Utilities Win First Round, EnergyBiz, Nov/Dec 2005

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