More is Changing than the Climate – Be Prepared for a "New Era of Global Cooperation on Climate Change"

 

The tide is beginning to turn on climate change, starting with President-elect Barack Obama's videotaped message to California Governor Schwarzenegger's Global Climate Summit.  President-elect Obama vowed quick action to curb emissions and engage in international talks.   A number of recent events support the assertion of a changing political dynamic.

 

President-elect Obama's Message

 

Popular wisdom has been that given the current economic situation in the United States it would be unlikely that Congress could be able to enact a cap-and-trade regime until the economy recovers.  However, Obama's message at the climate change summit told the scientists, executives, governors and foreign officials gathered at the conference that "[y]ou can be sure that the United States will once again engage vigorously in these negotiations, and help lead the world toward a new era of global cooperation on climate change."[1]  President-elect Obama said that he will establish strong annual targets that sets the United States on a course to reduce emissions to their 1990 levels by 2020 and reduce them an additional 80% by 2050.  He said that his goal of $15 billion a year in incentives to get private capital moving towards clean energy technologies would produce five million green jobs that "pay well and can't be outsourced."

 

Waxman's Ascent to Chair of Energy and Commerce

 

Environmental groups also feel that Representative Henry Waxman's (D-Calif.) victory on November 20 over longtime Chairman of the Energy and Commerce Committee John Dingell (D-Mich.) "signals a more aggressive stance by the committee toward climate change."[2]  Waxman joins Sen. Barbara Boxer (D-Calif.) as heading a committee with the greatest jurisdiction over climate change. Boxer is the chairman of the Senate Environmental and Public Works Committee.

 

Sen. Boxer to Introduce Streamlined Bill in January on Cap-and-Trade Plan

 

Sen. Boxer outlined a plan to introduce "streamlined" climate change legislation shortly after the 111th Congress begins in January that would direct the Environmental Protection Agency (EPA) to design an emissions trading system to curb U.S. greenhouse gas emissions.[3]  The legislation would amend the Clean Air Act to give the EPA authority to design a cap-and-trade proposal.  Boxer said that the bill will "focus on achieving the emissions reductions needed while restoring the economy" and indicated that the legislation would follow the goals laid out by the president-elect during his presidential campaign.

 

EPA's Advance Notice of Proposed Rulemaking

 

The EPA published an Advance Notice of Proposed Rulemaking (ANPR) on greenhouse gases on July 30, kicking off a 120 day comment period and triggering what "may be the most intense debate of how the world's largest economy can act domestically to solve a challenge fundamentally global in nature." [4]  The National Association of Manufacturers President John Engler and several other organizations wrote to the EPA on November 3 asking for an extension, citing the ANPR's "unprecedented" scope.  Robert Meyers, principal deputy assistant administrator for air and radiation, responded on behalf of the agency and declined to extend the comment period on the ANPR beyond the November deadline citing the extended comment period that the EPA had already provided and the ongoing dialogue that will occur as the EPA considers the comments. [5]

 

Renewal of the Select Committee on Climate Change

 

House Speaker Nancy Pelosi (D-Calif.) said that she expects Congress to renew the Select Committee on Energy Independence and Global Warming.  The committee was established in 2007 and was set to expire at the end of 2008.  Pelosi would not comment on a timeline for climate change legislation, but committee Chairman Edward Markey (D-Mass.) said that with a new "climate-friendly administration" they have a historic opportunity to "finally solve the greatest challenge the planet has ever faced."[6]

 

Call to Establish a Market Price for Carbon Emissions

 

Senate Majority Leader Harry Reid (D-Nev.) said that one of his top priorities for the upcoming session is to establish a market price for carbon emissions.  In an academic forum on clean energy sponsored by Third Way, a Washington think tank, the senator also listed creating a national renewable energy standard; expanding and extending tax credits for renewable energy; improving the energy efficiency of buildings; and developing "smart grid" for electricity transmission as his other priorities.[7]

 

Recent Litigation

 

Action groups are monitoring recent decisions on the Clean Air Interstate Rule (CAIR) and Best Available Control Technology (BACT) for CO2[8].  Concern is rising about cap-and-trade programs in light of a recent decision striking down the CAIR and how trading programs stemming from CAIR will be handled.  Parties are also following a recent Environmental Appeals Board decision remanding a prevention of significant deterioration permit issued by EPA Region 8 for reconsideration of its conclusions regarding the applicability of emissions control requirements to limit CO2 emissions.

 

Regardless of these indicators, President-elect Obama feels the time has come.  "Now is the time to confront this challenge once and for all," Obama concluded in his climate conference remarks. "Delay is no longer an option.  Denial is no longer an acceptable response.  The stakes are too high. The consequences, too serious."

 

If your organization would more information on sustainability, green house gas regulation or climate change, please contact Kristina Tridico, chair, or any member of the Green Industries Initiative at Ice Miller LLP.

 

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice.  The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.



[1] See http://change.gov/newsroom/entry/president_elect_obama_promises_new_chapter_on_climate_change/.

[2] Waxman's Rise at Energy and Commerce Signals More Rapid Action on Climate Change, 225 DEN A-8, November 21, 2008.

[3] Boxer to Offer Streamlined Bill in January Directing EPA to Design Cap-and-Trade Plan, 225 DEN A-1, November 21, 2008.

[4] EPA's Greenhouse Gas Proposal: A Blueprint for Federal Regulation, by Roger Martell, James Cahan and Chris Bell, 206 DEN B-1, October 24, 2008; for the ANPR see 73 Fed. Reg. 44,354 (7/30/08).

[5] See http://www.epa.gov/climatechange/anpr.html.

[6] Pelosi Calls for Two-Year Renewal of Select Committee on Climate Change, 226 DEN A-3, November 24, 2008.  The Select Committee on Energy Independence and Global Warming's 100th Congress Staff Report is available at http://globalwarming.house.gov/mediacenter/pressreleases_2008?id=0059#main_content

[7] See http://reid.senate.gov/newsroom/120208_energy.cfm.

 

[8] See State of North Carolina v. Environmental Protection Agency, No. 05-1244 (D.C. Cir.) and In Re Deseret Power Electric Cooperative, EAB PSD Appeal No. 07-03.