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.
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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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