Eight U.S. states introduce C02 restrictions

In absence of federal regulations

Based on the article 'States Begin Capping CO2 Emissions' by Bob Bellemare in the Issue Alert (utilipoint.com)

The U.S. did not sign the Kyoto Protocol, nor has it implemented any national legislation to restrict CO2 emissions. However, most analysts and industry executives believe that this position will change in the years to come. Eight states have not waited for a change in the federal position and started their own initiatives this summer.

Northeast states

Seven Northeast states combined forces in the Regional Greenhouse Gas Initiative (RGGI). This is a cap-and-trade system with CO2 allowances, envisioning a 10% reduction in power plant-related CO2 emissions by 2019. An eighth state, Maryland, will join the initiative next year. 

California

Separate from the RGGI, California passed a bill requiring the state to bring greenhouse gas emissions down to the 1990 level by 2020. The necessary regulations to attain this goal still need to be developed, but it is expected that California will also adopt a cap-and-trade system.

Towards federal regulation?

These eight states combined represent about 15% of the United States’ CO2 emissions. But even more important, these initiatives could set the example and fuel a drive towards federal regulation.