reprinted from the Wichita Eagle, 1/17/2008
In Kansas energy debates, we have heard a lot lately about "regulatory uncertainty." But what does that mean, exactly?
Sunflower
Electric Power Corp. CEO Earl Watkins has asserted that regulatory
uncertainty is bad for business ("Regulatory process needs to be
certain, impartial," Jan. 15 Opinion). So has Amy Blanken-biller, CEO
of the Kansas Chamber. They are right. Businesses do need a set of
clear and consistent rules.
Ironically enough, that is
precisely why some of the nation's leading corporations -- and largest
greenhouse gas emitters -- are calling for carbon dioxide regulation.
As
Duke Energy CEO Jim Rogers said last year, when elected to chair the
Edison Electric Institute, "I've seen several surveys that say 70 or 80
percent of the executives in our industry think there will be carbon
regulation. In a sense, we're all building our business plans around
the carbon scenario. The only issue is what the regulations will look
like and when they'll be implemented."
Duke and other
corporate superstars -- including Caterpillar, Deere & Co., Dow
Chemical, General Electric and Shell -- have formed the U.S. Climate
Action Partnership. Together, they are working toward a cap-and-trade
system that would, in effect, put a price on carbon dioxide and other
greenhouse gases.
These Fortune 500 companies believe they
can "slow, stop and reverse the growth of U.S. emissions while
expanding the U.S. economy." Presumably, they know a little something
about economic success and regulatory certainty.
They also
know that if you're not at the table when the rules get set, you're on
the menu later. That is why they are actively working to shape carbon
dioxide regulations. Kansas businesses should do the same.
Kansas
Health and Environment Secretary Rod Bremby's decision in October did
not create regulatory uncertainty; it reflected regulatory uncertainty:
• As
of July 2007, members of the 110th Congress had introduced more than
125 bills, resolutions and amendments specifically addressing global
climate change and greenhouse gas emissions. Decisions made now under
the specter of such regulations may be deemed imprudent under law and
subject retroactively to penalty.
• In
the past 18 months, proposals for 20 coal plants have stalled
nationwide because of public concerns about air pollution, increases in
greenhouse gases, rapidly climbing economic costs and future liability.
• Regional
agreements between governors in the Northeast, West and, most recently,
Midwest provide clear targets for emission reductions and allow for a
cap-and-trade system that would put a price on carbon emissions.
Neither
Bremby nor Gov. Kathleen Sebelius is "out front" on this issue. They
are, in fact, arguably behind -- 22 states already have climate action
plans and another 14 are creating plans.
Regulatory
certainty is needed, and in the wake of Bremby's decision, Kansas has a
historic opportunity to lead the nation in creating it. Let's stop
considering false choices between economic vitality and climate
stability, and start talking instead about how we achieve both.
Nancy Jackson is executive director of the Climate and Energy Project at the Land Institute in Salina.
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