Progress on the path to the “Full Portfolio” utilities prepare for climate change
A formidable array of forces is gathering behind the idea that it is time for the United States to impose statutory limits on greenhouse gas (GHG) emissions. The debate in Congress has begun. The candidates for President support mandates. The leaders of many utilities with very substantial greenhouse gases emissions have spoken about the need for adopting GHG mandates. This is not to say there is agreement on what those limits will look like. Still to be resolved are such critical issues as: 1) who will be covered by the caps; 2) what reductions will be required; 3) over what timeframe will the reductions occur; 4) what combination of free allocation, auction, and “safety valve” will determine the distribution and price of allowances; 5) how any U.S. program will be coordinated with international climate change regimes; and 6) how trade with countries with no GHG limits will be addressed.