FAQs

Q.  What is the current status of climate change legislation?

This is a period of great uncertainty for energy and environmental policy. Congress has focused on climate change legislation and other energy policy initiatives off and on over the past two years. In June of 2009, the U.S. House approved HR 2454 by a vote of 219-212. Officially known as the American Clean Energy & Security Act (ACES), the bill established a cap-and-trade system that would limit carbon dioxide emissions from power plants, vehicles and factories - essentially impacting all sectors of the economy. The U.S. Senate spent time considering several comprehensive energy proposals but never advanced a companion piece of legislation.

Q. How did the 2010 election affect energy legislation in Congress?

It is too early to tell but indications are that a still fragile economy may keep the new Congress from considering a bill that would restrict and tax carbon. A more likely proposal could address carbon emissions by encouraging conservation and efficiency. Congress has been exploring mandates such as a renewable generation requirement for utilities and loans for residential and commercial efficiency improvements.

Q. This debate is based on the assumption that global warming is real. Some of us are skeptical and believe we should resolve the science question first.

There are plenty of groups currently involved in the science debate and we encourage the public’s participation. As that debate continues, the issue moved from climate science to political science and inaction by Congress means that the Environmental Protection Agency (EPA) will continue its aggressive effort to reduce carbon emissions.

Q. What is the EPA doing?

In 2007, the U.S. Supreme Court authorized regulation of greenhouse gases using the federal Clean Air Act. Following that order, the EPA proceeded to declare carbon dioxide as one of six greenhouse gases that endanger public health and welfare. This action set the stage for EPA to begin regulating carbon emissions from all sources including vehicles, power plants and most industries. Without Congressional action to stop or delay the EPA, those regulations ramp up significantly in 2011.

Q. When the EPA does implement carbon rules, won’t that just get tied up in court for a long time?

Attempts to block EPA efforts in court will prove expensive, time-consuming, and have no guarantee of success. In fact, 39 such lawsuits have been filed to prevent implementation of rules and regulations under the Clean Air Act since 2000 and only once have the courts stayed the implementation of those regulations. It might be pretty hard to find a judge who would halt implementation in light of an EPA “harmful to health” finding accompanied by a Supreme Court order to act.

Q. How can we help?

First, we thank those members who have been engaged in this effort so far. More than 170,000 messages have been sent to Congress by Indiana cooperative members suggesting caution and reason. Opinions on the issue and momentum for proposals change often so we need cooperative members to stay informed and engaged. You can learn more at www.ourenergy.coop and www.fairpowernow.org.

Q. What are the utilities doing to prepare for the future?

Utilities are not interested in stopping legislative progress on energy issues. We need some consensus between Congress, the Administration and all interested parties in order to provide the certainty needed to begin a broad transition to the construction of future generation and transmission facilities.

Q. I believe that utilities should be doing more to reduce fossil fuel dependence and increase renewable resources. All this sounds like you are fighting for the status quo.

We need to preserve the ability to use all fuels in the future. Coal is plentiful and provides reliable baseload generation at the lowest cost. At the same time, Indiana’s electric cooperatives are industry leaders in development of alternative energy resources. We believe it is important to continue development of a diverse mix of generation resources.
In addition, using energy wisely is one of the best ways to reduce carbon emissions, and Indiana’s electric cooperatives have programs available to help consumers with efficiency and conservation.

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