If you haven’t heard by now, the President has proposed a new climate change plan that aspires to make strides toward curbing America’s impact on carbon dioxide emissions. While the speech puts forth grand ideas of carbon dioxide emissions reductions and our obligation to meet them, it also provides some ambiguous language when it comes to the private sector. While pundits will have plenty to talk about, the implementation will be key for any proposed changes. From the speech it is likely that any enforcement actions will be directed through an Executive Order and EPA interpretation of the Supreme Court’s ruling in 2007 that greenhouse gases are covered under the Clean Air Act. Furthermore, it appears that some sort of cap will be pursued to limit the quantity of carbon dioxide allowed to leave a power plant. While the time table in implementation will be the driver of how quickly utility rates will rise, it will also depend heavily on input from the American public. While the adoption of increasingly efficient appliances may help in the transition towards reduced energy consumption for some households, it is unlikely that this aspect of the President’s plan will have much impact on greenhouse gas emissions. One can only hope that the White House and the EPA will have some very real conversations with the Nation’s electric utilities and rate payers because while ideas fuel innovation, money pays the bills.
For a full transcript of President Obama’s remarks, click here.