Star-Tribune Editorial Board
Before the national recession, it seemed certain that the federal government would take action this year to curtail emissions of greenhouse gases, such as carbon dioxide from coal-fired power plants. Both presidential candidates backed the so-called "cap-and-trade" approach, whereby companies that don't meet emission limits could buy credits from other companies that have met emission-reduction goals.
Now, the expense of such a program has made its chances of passage this year uncertain. Still, it's probably just a matter of time before Congress approves something like what was proposed by President Obama in his 2010 budget bill.
So it's certainly in Wyoming's best interest to continue preparing for what Gov. Dave Freudenthal calls a "carbon-constrained" economy. As the nation's No. 1 coal producer, and as a consumer of mostly coal-fired power, Wyoming has a tremendous stake in what happens on the issue.
The actual impacts of a cap-and-trade system on Wyoming are a matter of debate. It is true, as the state's congressional delegation has pointed out, that power generators will likely pass on to consumers the additional costs of meeting emissions limits. And because so much of our electricity comes from traditional coal-fired plants, Wyomingites are likely to take a relatively big hit.
But the exact cost to the Wyoming consumer isn't yet known. It may not be as significant as numbers cited by cap-and-trade opponents, including Rep. Cynthia Lummis.
It's particularly important for her and our two senators to engage in the congressional debate and work for Wyoming's best interests. That will be easier following Thursday's Senate action that prevents cap-and-trade legislation from bypassing the regular process for considering bills.
But standing on the sidelines and railing against any type of cap-and-trade system isn't what Wyoming needs. If carbon regulation is coming, as appears to be the case, our delegation should work to shape it in such a way that helps our coal industry and protects Wyoming consumers as much as possible.
The coal industry appears to be approaching the issue pragmatically. Shortly after Obama's election, a spokesman for the National Mining Association told the Star-Tribune: "We support a cap-and-trade approach, and we support a responsible means of controlling CO2 emissions and reducing those emissions into the atmosphere. Our point, simply, is when we do that, let's make sure it does not lead to unacceptable economic harm."
Wyoming Mining Association Executive Director Marion Loomis said he believes the state's coal industry will adapt to any changes in federal law.
Fortunately, Wyoming officials aren't waiting for federal action to prepare for carbon limits. The state is teaming with General Electric to build a plant to demonstrate that Powder River Basin coal can be economically converted into cleaner-burning gas for power generation. And research into carbon capture and storage is well under way here - the Legislature and governor have even created laws to help make possible large-scale CO2 sequestration underground.
More such efforts are needed, and federal research and development funding is a must. Our congressional delegation can help make that happen.
We recognize that there are many people in Wyoming who don't believe human-caused climate change is real. But the fact is that our nation is moving inexorably toward restricting greenhouse gas emissions. Preparing for that change will help reduce its impact on the Wyoming economy.
Posted in Editorial on Sunday, April 5, 2009 12:00 am
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