EPA leaves door open to start targeted cap and trade program with nationwide consequences

.
1/6/11, "EPA may try cap and trade on its own," Green Hell blog, Steve Milloy

"… and everyone thought cap-and-trade was dead. Sen. John Kerry said so. West Virginia Senate candidate Joe Manchin shot it in a campaign video.

• Now comes news that the EPA may resurrect cap-and-trade via regulation under the Clean Air Act.

Carbon Control News (CCN) reported today that,

… EPA air chief Regina McCarthy has said that any [greenhouse gas] trading program using existing air law authority would have to be established under the [Clean Air Act Section 111(d) New Source Performance Standards (NSPS)] rather than other sections.

While McCarthy denied taking steps to advance this idea, CCN reports,

“The agency sought $5 million in its fiscal year 2011 budget ‘to assess and potentially develop NSPS regulations for major industrial sectors and seek, where possible, market-oriented mechanisms and flexibilities to provide lowest cost compliance options’ for reducing GHG emissions, according to EPA’s FY11 Annual Performance Plan. Sources have said EPA’s mention of market-oriented mechanisms is likely a reference to cap-and-trade programs.”

A limitation of cap-and-trade under the NSPS would be that,

… it can only operate within specific industry sectors, rather than operate economy-wide like the trading program that would have been established under legislative proposals for a climate cap-and-trade program introduced in the 111th Congress.

But you can bet that the first industry sector to be regulated would be electric power generators, which would have economy-wide impacts.

Let’s hope that the Republican-controlled House zeroes out any funding the EPA requests for bringing a cap-and-trade Frankenstein to life."

• Related: Obama just added a cap and trade fan to his inner circle:

1/4/11, "Environmental Economist Joins White House Staff," NY Times Green blog by John M. Broder

"Nathaniel Keohane, most recently the chief economist at the Environmental Defense Fund, has moved to the National Economic Council at the White House to help direct environmental and energy policy. He replaces Joseph E. Aldy, who is returning to the faculty at Harvard University.

Mr. Keohane, an early and vigorous proponent of the market-based system of cap and trade to control greenhouse gas emissions,

• will be joining a White House bracing for an onslaught from Republicans in Congress determined to undo much of the administration’s environmental agenda.

In his new role, he will likely undertake economic analyses in defense of domestic and international environmental policies and

• will work with the major agencies involved in carrying out the administration’s agenda."...
• ####
  

George Bush the First is responsible for the 'Clean Air Act' of 1990 and emissions trading, said

• he wanted to be 'the environmental president.'

via Tom Nelson