Change picture on Slide Master It’s Not Easy Being Green: What’s Up on Warming in Washington? Virginia Bar Association July 25, 2009 PRESENTED BY Peter Glaser Troutman Sanders LLP th Street, NW Suite 1000 Washington, DC
GHG REGULATION: HOW MUCH PAIN?
Waxman-Markey American Clean Energy and Security Act of 2009 Passed House on June 26. First time either House passed bill requiring greenhouse gas emission reductions pages (!) 300+ page amendment filed at 3 A.M. on the day of the vote
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Main Piece: Cap-and-Trade Cap-and-trade program for capped sources, principally large industrial sources accounting for 85% of U.S. GHG emissions. Targets and Timetables - 3% below 2005 when program starts in % below by % below by % below by Delayed compliance dates for certain industrials, NG LDCs
Emissions trading U.S. carbon market seen rocketing to $2T "Make no mistake, these carbon markets can be the world's largest commodity markets in a few short years," Commissioner Bart Chilton of the Commodity Futures Trading Commission told a carbon market gathering in Chicago. E&E Daily, Jun. 10, 2009
Offsets Market Offsets can substitute for allowances An offset is an emission reduction not required by law, such as tree planting, tillage practices, variety of other projects Est. 27%-31% of the compliance obligation through about 2025, increasing thereafter to over 60% by 2050 Huge offset market will develop
Renewable Portfolio Standard Utilities will be required to have specified percentages of their generation portfolio in renewable resources, growing after time Will create a very large market for renewable and alternative energy
Other Building, appliance, facility efficiency standards Incentives for clean coal technology and nuclear Incentives for clean fuels Etc.
The Senate 6 Committees have jurisdiction over bill, leading committee is Boxer’s EPW Reid asks for all Committees to complete work by late-September So bill can be brought to floor in October/November
Source: Climate Policy Group
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Key Political Considerations Northeast/West Coast vs. Heartland Ag Sector Strength Overwhelming complexity of bill and of harmonizing work of different committees in Senate, plus between House and Senate Health Care Unemployment Rate Copenhagen in December Don’t underestimate President’s determination
Don’t Forget EPA 2007 Supreme Court ruled that EPA has authority to regulate greenhouse gases if it finds that they endanger public health or welfare EPA has proposed to make such an endangerment finding as a prelude to regulation Autos first, then power plants and other large sources, then almost everything else
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