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EPA To Unilaterally Push Cap And Trade On Carbon Emissions

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Photo Credit: dantekgeekDespite being soundly rejected a few years ago, cap-and-trade will get its U.S. encore but not in Congress. The Obama administration will likely use its executive power to unilaterally impose carbon dioxide emissions trading systems.

The Environmental Protection Agency will unveil regulations for existing U.S. power plants early next month. For months, onlookers have speculating about what could be included in the EPA’s rule for existing power plants.

But over the past few days it has become clear that the Obama administration will use the EPA to push cap-and-trade systems and other anti-fossil fuel policies on U.S. states. Administration insiders have told news outlets that cap-and-trade will likely be one of the options the EPA gives states to cut their carbon dioxide emissions.

The Wall Street Journal reported the EPA’s proposal will “include a cap-and-trade component where a limit is set on emissions and companies can trade allowances or credits for emissions” to meet new federal rules. The journal added that power plant “operators could trade emissions credits or use other offsets in the power sector, such as renewable energy or energy-efficiency programs, to meet the target.”

The plan is being sold as a “flexible” one. By allowing states a menu of policy options to meet federal mandates, the standards will ostensibly meet the unique needs of each individual state. But the stark reality behind the proposal is that it will be a boon for states that have already imposed cap-and-trade systems — which are overwhelmingly Democratic states.

Read more from this story HERE.

Senators: ‘Far-Left’ Group Pushes EPA To Implement Cap-And-Trade Without Congressional Approval

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Republican senators urged the Environmental Protection Agency not to participate in a “sue-and-settle” arrangement with a law school policy institute that is trying to require the agency to develop rules implementing cap-and-trade, even though Congress refused to pass the law.

“In a recent rulemaking petition, the Institute for Policy Integrity (the Institute) seeks to compel EPA rules under three separate sections of the Clean Air Act,” Marten Law’s Dustin Till explains in a post. “The Institute first argues that Section 115 of the Clean Air Act, a never-before-used provision addressing international air pollution, requires EPA to order all 50 states to modify their state-level implementation plans to address greenhouse gas emissions.”

Four senators attacked the idea today in a letter to EPA assistant administrator Gina McCarthy, President Obama’s nominee to lead the agency.

“The potential negative impact in this case is that it threatens to expand environmental regulation beyond original intent of the law and could have detrimental effects on the livelihoods of our fellow Americans that are not always understood by academia,” wrote Sen. David Vitter, R-La., Sen. Deb Fischer, R-Neb., Sen. Roger Wicker, R-Wyo., and Sen. James Inhofe, R-Okla., in a letter today.

“When the price of transportation fuels increases for any reason, it is those with limited resources and fixed incomes whose livelihoods are most impacted by this added financial burden,” they added. “In recent years, we have consistently heard the term “environmental justice” as a reason for promulgating certain agency actions. We believe there also needs to be a measure of “economic justice” to ensure that Agency actions are not overly regressive and lack consideration for economic harm visited upon the very citizens these environmental laws are intended to protect.”

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European Cap-and-Trade Market Takes a Nose Dive

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The European Union’s cap-and-trade system took a huge hit on Thursday, with carbon prices plummeting a record 40 percent after a panel rejected a plan to delay emission permit sales to alleviate the overabundance of permits already in the system.

“The market is panicking, really,” Daniel Rossetto, managing director of Climate Mundial, told Bloomberg, adding that traders fear that Europe’s carbon emissions market won’t continue past 2020.

An excess of carbon emission permits in the 54 billion euro trading system drove the price down 91 percent from its record high in April 2006. Carbon permit prices sank to a record low of 2.81 euros ($3.75) per metric ton immediately after the panel rejected the EU plan. However, prices slightly rebounded to 4.33 euros per metric ton.

“This should be the final wake-up call,” said EU Climate Commissioner Connie Hedegaard in a statement. “Something has to be done urgently. I can therefore only appeal to the governments and the European Parliament to act responsibly.”

The Financial Times reports that the carbon market has seen two record-low prices within the last four days, causing some analysts to say carbon permits are “worthless.”

Read more from this story HERE.