Blackouts Mean Uncertainty for Energy Bill
The massive power outage that affected much of the northeastern United States and Canada on August 14 and 15 has created significant uncertainty over the prospects for the Energy Bill scheduled to be discussed in conference when Congress resumes sitting.
According to CNBC (Aug. 19), “Congressional leaders say the final version will have three elements aimed at preventing future blackouts: Mandatory reliability standards, investment incentives and reform of transmission siting rules.” President Bush has been quoted as saying, “One thing is for certain – they will have mandatory reliability standards in the energy bill. What that means is that the companies will have to have strong reliability measures in place. Otherwise, there will be consequences for them.”
With the President lobbying strongly for reliability mandates and a bill to sign as soon as possible, congressional leaders have targeted a vote by the end of September. It remains to be seen how far defenders of provisions on such matters as fuel efficiency standards and global warming will be prepared to engage in brinkmanship in order to push their demands.
Canada Launches Kyoto Plan
On August 12, the Canadian government announced a program totaling one billion Canadian dollars aimed at securing Canadian compliance with the Kyoto Protocol. The package includes: $100 million to expand Canada’s ethanol production (roughly double what had been expected), a $45 million public awareness program, and $131.4 million to encourage consumers to choose more energy-efficient vehicles and appliances, and to adopt other energy-saving practices in their daily lives. $302.9 million will be used to help business and industry cut emissions with existing technology and $250 million to help them develop new technology, while $320.7 million will go to partnerships with provinces, territories and aboriginal communities, which will be asked to propose emissions-cutting ideas that fit their priorities.
Consumers will be eligible to apply for rebates to improve home energy efficiency. The average rebate is expected to total around $1,000.
The package is expected to reduce Canadian greenhouse gas emissions by 20,000 tons. Under the Kyoto terms, Canada’s target is a reduction of 240,000 tons by 2010. (CTV, Aug. 18)