Fed climate bill to pre-empt states on cutting GHG

(Photo of power plant in New York City from Flickr and photographer Salim
Virji)

Some states are complaining they won’t be able to set stricter greenhouse gas curbs under a federal climate bill. The House bill passed in June calls for cutting GHG 17% (from 2005 levels) by 2020 and pre-empts states and regional coalitions from requiring stronger measures.

Five state attorneys-general (from California, Connecticut, Delaware, New Jersey and Arizona) have written Senate leaders asking them to include in their version of the climate bill a 20% cut by 2020 and permission for states to impose stricter limits if they choose.

At risk is the Regional Greenhouse Gas Initiative, made up of 10 Eastern states, which has already raised $350 million for clean energy and efficiency from auctioning permits in its new cap-and-trade market. RGGI is on its way to cutting emissions from power plants 10% by 2018.

Also in danger is the Western Climate Initiative, a plan for 11 states and Canadian provinces to begin cap-and-trade in 2012. A number of other states are “observers.” They don’t want to make a commitment but are watching to see what happens.

Under the House American Clean Energy and Security Act (ACES), these programs would have to stop in 2012, which means the Western plan would never get off the ground.

The best solution here would be a stronger Senate bill that caps emissions at 20% (at least) but also allows states to do more if they want, just as California has led the way on auto emissions. The East and West Coasts are far more likely than much of the rest of the country to have the political will to do what needs to be done to stop global warming and they shouldn’t be restrained.

But just to put it all in perspective, industrialized nations altogether have plans to cut GHG an average of 10-14% from 1990 levels (which is lower than 2005), according to Reuters, while the UN Intergovernmental Panel on Climate Change (IPCC) says the world needs to cut 20-40% and China and India want the U.S. and other industrialized countries to cut 40% by 2020 to allow for economic growth in developing countries.

(Source: Reuters PlanetArk, riggi.org, westernclimateinitiative.org)

Northeast and Western states to test carbon trading in regional markets

News Update: Ten Northeast states have launched the nation’s first cap-and-trade system, raising $38.5 million for renewable energy and efficiency. It applies to electric utilities and about 90% of the allowances will be auctioned. The goal of the Regional Greenhouse Gas Initiative (pronounced “Reggie”) is to cut CO2 emissions 10% between 2014-18. There is a problem, though. The cap, set several years ago as the plan was being developed, may be too high to make much difference. GHG emissions in the region have leveled off in recent years instead of growing as expected. So the cap is higher than current usage. Some say the states may need to set a new, lower cap. Meanwhile, in the West, 7 states and 4 provinces across Canada unveiled a blueprint for a similar plan. The Western Climate Initiative aims to cut emissions 15% below 2005 levels by 2020. The Western plan would be economy-wide, including industry, transportation and homes. In a concession to industry, it plans to auction only 10% of allowances, giving the rest free to polluters and causing concerns some businesses could make windfall profits, as happened in the initial European plan. While both regional plans seem to be imperfect, California Gov. Arnold Schwarzenegger said the states are moving ahead where the federal government had failed to act. (Sources: ClimateWire, New York Times, AP)

Governors to push Congress, new president for quick, aggressive action to cut CO2 emissions

News Update: Eighteen states signed a pledge Friday to pressure the federal government to quickly adopted limits on greenhouse gases. “Washington is asleep at the wheel and we can’t wait for them,” Gov. Arnold Schwarzenegger (R-Calif.) told a climate conference at Yale that included 3 other governors, 2 premiers of Canadian provinces, and representatives from Europe, Mexico, and the Intergovernmental Panel on Climate Change. In addition to Schwarzenegger, Govs. Rod Blagojevich (D-Ill.), Jon Corzine (D-N.J.) and Kathleen Sebelius (D-Kan.), and representatives from 14 other states signed the pledge. The 18 states hold more than half the population of the United States. They include Arizona, Colorado, Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, Michigan, New Mexico,New York, Oregon, Virginia and Washington. Sebelius said the federal government should build on regional cap-and-trade agreements already in process. The Western Climate Initiative, with 7 states and 2 provinces, has a goal of cutting 15% (from 2005 levels) by 2020. The Regional Greenhouse Gas Initiative with 9 states in the East, is ready to officially launch its carbon-trading plan next year. And Illinois and several other Midwestern states recently reached agreement to cut emissions. The group expects to get more signatures (28 states either have or are close to plans to cut emissions) and counteract President Bush’s pressure to go slow, as Congress deliberates a cap-and-trade bill in June. (Sources:
Mercurynews.com , Reuters)