5.4. ERMUSR 03-20-2007 - Laserfiche WebLink

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rr~ w ~~~ .,. American Public Power Association FEBRUARY 2007 Climate Change F,missions of greenhouse gases and the linkage of those emissions to global climate change is the most significant environmental issue confronting the electric utility.industrv. In 2005 and }~ 2006 (the 109th Congress), action occurred in both the regulatory and legislative arenas on this issue. On the regulatory front in 2005, the electric utility sector began implementation of the memorandum of understanding (MOU) with the Department of Energy (DOE) on voluntary approaches to greenhouse gas emissions (Gf3G) reductions. In 2006, DOE finalized its update of the voluntary GIIG reporting program under 1605 (b) of the Eners~~y~ Policy Act of 1992. In Congress, heated debate over global climate change occurred in the context of enacUnent of the Energy Policy Act of 2005 (EPAct05). The final bill did not impose new requirements on emissions of GHGs, but did include language on voluntary actions to reduce such ~, emissions. I-Iowever, interest in the issue was building despite opposition to mandatory programs by the Kepublican leadership, as evidenced by the Senate's adoption during consideration of EPAct05 of a "Sense of the Senate" provision that stated that Congress should "enact a comprehensive and effective national program of mandatory, market- based limits and incentives on emissions of greenhouse gases that slow, stop, and reverse the growtl-i t~ of such emissions at a rate and manner that will not significantly harm the U.S. economy and 1!1 w111 not encourage comparable action by other nations that are major trading partners and key contributors to global emissions." Therefore, momenhrm had been building on the issue before the new Democratic leadership in the 110th Congress put it at the top of the leadership agenda in both the IIouse and Senate. However, the leadership change has clearly heightened the interest in and accelerated the timeline for action mandatory GHG reduction legislation. ~ '1 1 In December of 2004, the American Public Power Association (APPA) joined several other electric power sector organizations in signing a memorandum of understanding (MOU) with the U.S. Department of Energy (DOE) that established a framework for the voluntary reduction of greenhouse gas emission intensity (greenhouse gas intensity measures the ratio of greenhouse gas emissions to economic output) through 2012. The agreement and the resulting program, called Climate VISION, requires participants from all energy sectors to make a meaningful contribution to the President's goal of reducing the GHG intensity in the United States by 18 percent by 2012. The IOU specifically calls upon the power sector to reduce its GHG intensity by the equivalent of three to five percent over the next decade. It also promotes incentives and policies that would "provide investment stimulus on an equitable basis to all segments of the power sector in order to accelerate and maintain America's critical energy infrastructure." The Edison Electric Institute, Large Public Power Council, National Rural Electric Cooperative Association, Electric Power Supply Association, Nuclear Energy Institute, and Tennessee Valley Authority joined APPA in signing the document. For its part, APPA pledged to work with its members to help them achieve GHG emissions reductions through voltmtary Www.APPAnet.org continued 21