A Look at Green Legislation, Nearly One Year into the New Administration
By Jim Poad Director of Client Solutions, Advantage IQ | November 18, 2009
Obama's election to the presidency came with the promise of sweeping policy change. A point of focus for the new administration was the climate; protecting it from the dangerous emissions that are released into the atmosphere at an alarming rate.
Now nearly one year into the President's first term, the new administration has taken action that is considered long overdue by many. They have introduced legislation that will regulate the release of greenhouse gases (GHG). The US is the last industrialized, developed country to address regulating these gases and was only recently overtaken by China as the largest GHG emitter in the world.
These new environmental protection policies come in the form of the Climate Bill, which was passed by the House of Representatives on June 29, 2009. The legislation is designed to reduce the US carbon emissions by 17% (from 2005 levels) by 2020. It is believed that this bill will become law in the fall of 2009.
As the bill currently sits, there are three primary ways this legislation will impact businesses.
Power Prices/CO2e Emissions
Facilities that emit greater than 25,000 tonnes of carbon per year will be regulated. Primarily, these include electrical generators, refineries, chemical, metal, and cement plants. Those businesses below that mark will see the trickle down effect; higher energy costs resulting from the money those larger emitters must spend to clean up their production process.