NATIONAL ENVIRONMENTAL POLICY ACT (NEPA)

Report
It’s Not Easy Being Green:
What’s Up on Warming in
Washington?
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PRESENTED BY
Peter Glaser
Troutman Sanders LLP
401 9th Street, NW
Suite 1000
Washington, DC 20004
202.274.2950
www.troutmansanders.com
Virginia Bar Association
July 25, 2009
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.
• 1427 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
2012
- 17% below by 2020
- 58% below by 2030
- 83% below by 2050
- 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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