Chapter 3 - The U.S. Political Landscape and Its Impact on Environmental Trading

Abstract

This chapter describes the complex and contradictory trends that characterize the political landscape for environmental trading. The chapter discusses the impact of the Kyoto Protocol on the intertwined energy/environmental systems and opines about the legislative stalemate over energy issues at the U.S. national level. The numerous trends that form the matrix underpinning contemporary energy law that ultimately affects any initiatives are presented. On the development side of the energy equation, interest in alternative energy sources as a correlative development to increased technological capability in an important arena is expanding. Increased efficiency and conservation initiatives together with renewables such as wind power, solar energy, hydropower projects, biomass energy, and other new sources are likely to play increasingly important roles in the energy economy. Distributed generation also provides meaningful solutions. The FERC has authorized projects in the Louisiana and the Texas Gulf Coast area; others are likely to move forward in Massachusetts, Georgia, Florida, California, and Northern Mexico. These projects will be competing for liquefied natural gas (LNG) supply in a worldwide marketplace. Concerns about disposal of spent nuclear fuel, security of facilities, and security of the nuclear fuel supply itself have prevented new plants from being built in the United States.