ML Strategies Weekly Energy and Environmental Update

Energy and Climate Legislation

Despite White House energy and environmental advisor Carol Browner saying early last week that the Senate might pass climate legislation during a lame duck session, nearly all Senators and clean energy experts have declared climate legislation dead for this Congress. Additionally, passage of a large energy package or even an oil spill bill is unlikely during the September work period. As legislative possibilities become increasingly unclear, the Environmental Protection Agency is gearing up with a host of new regulations to address greenhouse gas emissions.

Beginning next year, projects that increase heat-trapping emissions substantially will require a Clean Air Act permit. Last week the EPA issued two rules, discussed in more detail below, that set the stage for next year's requirements. The EPA is requiring 13 states to change their implementation plans to ensure that their emissions are covered, and the agency will take charge of