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Federal Energy Legislation Highlights Political Volatility

By Daniel Stouffer

Republish: EasyPublish™ Published: 29Jul2010 Word count: 697 Viewed: 308 time(s) Get Free Content For Your Site

Like it or hate it, you have to agree that the United States political system is intriguing, if not entertaining. We're living in an age which many have dubbed "the carbon era," fully expecting major initiatives to be taken by governments around the world to curtail carbon emissions on behalf of the climate itself. There are indeed many energy efficiency and climate related initiatives under consideration and we have seen that problems surrounding the current federal energy legislation highlight just how politically volatile this entire arena is.

An independent observer could reason that whereas climate related issues should concern us all quite rightly, there are other, sometimes more pressing items to be considered within the political landscape that could temper enthusiasm for federal energy legislation. While many believe the only a significant "cap and trade" scheme could really make a difference and have any chance of helping us meet the 80% reductions talked about by 2050, others point to significant increases in energy costs as a result and the potential for economic hardship.

Like it or hate it, you have to agree that the United States political system is intriguing, if not entertaining. We're living in an age which many have dubbed "the carbon era," fully expecting major initiatives to be taken by governments around the world to curtail carbon emissions on behalf of the climate itself. There are indeed many energy efficiency and climate related initiatives under consideration and we have seen that problems surrounding the current federal energy legislation highlight just how politically volatile this entire arena is.

If federal energy legislation is not passed in 2010 and some kind of stringent carbon trading scheme established to set an actual price on a ton of carbon, many will turn to the EPA to see what they have in mind. When the Supreme Court ruled that if carbon emissions were a hazard to human health, the EPA should regulate them under the Clean Air Act, the floodgates opened for potential action.

The EPA could seek to impose considerable restrictions on either new and/or existing air polluters, essentially achieving through other means a significant reduction in carbon emissions. However, the Clean Air Act was originally designed to cover a different slate of air pollutants and few believe that EPA action could be as effective as federal energy legislation. EPA action could be far more invasive and be less "tailor-made" for the problem at hand.

The political landscape is highly volatile as midterm elections loom in 2010. Like a swinging pendulum, many expect there to be a shift in power, the Democratic Party losing control of the Senate. Should this happen, the Republicans are generally in opposition to a carbon trading scheme, at least one which has such power as the one proposed under the ACES Act.

The EPA has already moved to restrict emissions from vehicular sources by insisting that vehicle fuel efficiency standards be increased to an average of 35.5 miles per gallon by 2016. This will in itself serve to reduce greenhouse gases significantly and the EPA is legally obliged to start regulating stationary sources of carbon emissions as well. While EPA has considerable power of course, its budget is controlled by Congress and it remains to be seen whether appropriations will be made to cover all of the EPA's plans.

The progress of federal energy legislation should be of interest to every business owner. It should become clear that if carbon is going to be regulated in any significant way, then each business will be required to account for its energy use and its calculated carbon footprint. At the very least, each business owner should be working out how to measure and control the assets in its possession.

A "head in the sand" approach does not work anymore. Small organizations might think that "cap and trade" will only affect the larger polluters. They might also think that EPA legislation will only affect organizations that emit more than 25,000 tons of carbon per year, but industry lobbying groups are likely to ensure that everyone within the business world accepts an equal part of the problem in one way or the other. Regulation and cost are likely to hit home pretty soon.

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