Four years ago, the environmental movement had been riding high until its “magic carpet ride” suddenly crashed. But the re-election of Barack Obama has given the green cause renewed hope and one that is manifesting itself both on Capitol Hill and in the market place.

The victories are not of the ticker-tape parade variety, but they are subtle ones that have achieved environmental gains. The U.S. Energy Information Administration, for example, said Tuesday that coal-fired power plants are installing scrubbers to the tune of $30 billion over five years -- a move that has made a notable dent in sulfur dioxide emissions that cause acid rain.

At the same time, the U.S. Senate has twice now defeated amendments to rollback regulations on mercury and carbon dioxide. The argument for enacting such laws is that the technologies to curb those releases do not yet exists while the one given for continuing the course is that much progress is occurring, and that the tools to achieve mercury reductions are, in fact, getting deployed.

“But I think the technological innovation of shale gas has been transformative in terms of the carbon footprint of our industry,” says Jim Rogers, chief executive of Duke Energy in a conference call with analysts and shareholders. “Today in the United States we are at the same place in terms of CO2 emissions as we were in 1992, and on a per capita basis the same place we were in 1960.”

Rogers goes on to say that when the so-called Waxman-Markey bill passed the House in 2010, it had mandated carbon reductions equal to what they were in 1990 before the year 2020. Because of the shift over to natural gas used to fuel power plants, the nation is on its way to meeting that goal, he adds.

Still, Rogers is insisting that federal legislation is required to go further and that the US. Environmental Protection Agency cannot do it alone. Skeptics of the Duke exec’s words note that this utility has one of the oldest coal fleets in the country that must be replaced. So, pricing carbon is self-serving because Duke must build more gas plants to meet demand, something for which it would then get paid.

“So I think much is being done to reduce carbon,” says Rogers. “But at the end of the day, they will have to put a price on carbon.”

Decarbonizing the Economy

The centerpiece of the environmental cause had been the positive House vote in favor of reducing carbon emissions through a cap-and-trade program. But that effort ended in 2011 when the Republicans took control of the House.

But there is a shift in the energy landscape. It’s not just centered on the shale gas boom. It’s also focused on regulatory compliance and the adherence to existing law. The Energy Information Administration reports that scrubbers have been installed at 110 coal-fired power plants in 34 states from 2007 to 2011.

So, 60 percent of the coal fleet now has that equipment. That, in turn, has reduced sulfur dioxide emissions by 68 percent between 1990 and 2011, the agency says. 

Meantime, two Senate bills to prevent the Environmental Protection Agency from taking action to cut carbon dioxide and mercury emissions failed to win approval this month after a floor vote. In the aftermath, Senator James Inhofe, R-Okla., said that he didn’t expect his amendment pertaining to carbon regulations to pass but that he wanted to make a point, which is that EPA is “misguided.”

The Natural Resources Defense Council disagrees with that sentiment, arguing instead that public health precedes corporate profits: “Reducing our carbon emissions is part of a larger shift toward the clean energy future we all know will help to put Americans back to work, make our companies more competitive worldwide, and create healthier and more prosperous families and communities,” says Peter Lehner, executive director of the organization.

And while President Obama has said that curing climate change is urgent, legislative progress on that front is unlikely. Measures to curb carbon dioxide emissions could not get the 60 votes necessary to overcome a filibuster in the Senate.

And, the House can’t event get a hearing to discuss the issue. Key Democratic lawmakers there have written to energy committee leaders, pleading for such a public forum. They are saying that if Republicans are unsold on the underlying science, then such open debate would give them a chance to question the scientists.

“I think that we are on the road to decarbonizing our economy even without legislation,” says Duke’s Rogers. “But having a price on carbon would be important for the future to drive even further our successes that we have achieved so far.”

Pricing carbon won’t happen in the near term. But environmental organizations can claim that progress is being made. And while the movement is standing upright, it has a ways to go before it reaches the altitude it did four years ago.


EnergyBiz Insider has been awarded the Gold for Original Web Commentary presented by the American Society of Business Press Editors. The column is also the Winner of the 2011 Online Column category awarded by Media Industry News, MIN. Ken Silverstein has been honored as one of MIN’s Most Intriguing People in Media.

Twitter: @Ken_Silverstein

energybizinsider@energycentral.com

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