Regardless of how you feel about Climate Change (the new politically correct term for Global Warming), whether you think it’s long overdue or just a bunch of liberal bunk, the fact remains that new regulations governing greenhouse gas emissions are on the way.

I just completed two separate seminars, one a webinar and the other a half day conference put on by a major university.  At both seminars, the overall consensus was the same:  it’s not a question of “if we’ll get greenhouse gas regulations,” it’s a question of “when.”  The speakers at both seminars predicted that we would have something passed by Congress and signed by the President before the end of next year (2010).

The recently passed Waxman-Markey House bill (aka the American Clean Energy & Security Act, or ACES) and the Senate version due to be debated later this year will impact every American in one way or another.

Here’s a short summary.

The ACES bill contains provisions to reduce the amount of greenhouse gas emissions by means of a “Cap-and-Trade” system.  A “Cap-and-Trade” program is a system whereby an item, in this case greenhouse gases are “capped” at a maximum total amount.  Greenhouse gases include Carbon Dioxide (CO2), Sulfur Hexafluoride (SF6), Methane (CH4), Nitrous Oxide (N2O), Hydrofluorocarbons (HFCs),  and Perfluorocarbons (PFCs) – all converted into “CO2 Equivalents,” which is where the term “Carbon Footprint” comes from.

Industries that emit these gases will be issued “allowances,” which are basically permits allowing them to emit a certain quantity of CO2 Equivalents. Only a set number of allowances (sum total equal to the “cap”) will be issued.

If a company actually emits less than what their allowance allows them to emit, they can sell, or “trade” the balance. If a company emits more than their allowance, they must purchase additional allowances from companies that have surpluses or risk regulatory actions.

Over time, in this case by 2026, the overall “Cap,” and therefore, the number of available allowances, is steadily reduced so that the total amount of greenhouse gas emissions decreases every year eventually forcing industry to either invest in more efficient equipment or continue to purchase allowances which will become more and more scarce (not to mention more expensive).

Another way a company can stay within their emission limits is to “offset” a portion of their emissions.  The simplest example is by planting trees or vegetation that will absorb an equivalent amount of CO2.  However, there are a lot of problems with this.  Vegetation can die off and trees can be harvested or struck by lightning reducing or eliminating the offset.  What happens then?  How do you control that?

There are obviously a lot of details that are yet to be nailed down and the Senate version may throw even more variables into the equation.  However, one thing is pretty clear: all of this basically increases operating costs for business and that usually translates into higher consumer prices.

Although this program will be phased in over time, eventually it will affect 85% of the US economy making it the largest regulatory program of its kind in the world.  Like I said, all of us will be affected, either as employees, as consumers, or as both.

Where can you go for more info?  The EPA’s Climate Change page is a good start.  It contains numerous links describing what greenhouse gases are, what the health and environmental effects are, and what you can do – including a “Personal Greenhouse Gas Emissions Calculator” – to help reduce greenhouse gas emissions.

This is going to be one heck of a ride!

Hiram
The Balanced Health Guy

Technorati Tags: greenhouse gas emissions, ghg, waxman-markey, aces, epa, environment, atmosphere, co2, cap and trade, carbon footprint

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