Carbon Policy Impact on Industrial Facilities

Abstract

ABSTRCTConcerns over climate change in the U.S. are prompting actions at the federal, state and corporate levels that will affect how industrial facilities operate now and in the future. Because a comprehensive federal carbon policy is still in its infancy, some states are implementing their own carbon policies and setting their own reduction targets ahead of federal regulations. For example, California's climate change mitigation plan requires a reduction of 80 million metric tons of CO2 equivalent (MMTCO2eq), or a 16% reduction, from the state's projected 2020 business-as-usual emissions. A significant share of the required reduction will come from a cap-and-trade program, a program that directly affects industrial operation in the state.This article discusses the impact of federal and state policies on the operation of industrial facilities. It addresses the three primary steps that industrial facilities are currently taking to address or prepare for carbon policies: monitoring and reporting of greenho...