Dive Brief:
- “Climate change is a fact,” President Barack Obama said during his State of the Union speech, signaling the administration's focus on the issue.
- Sidestepping Congress, Obama directed his administration to partner with states, cities and tribes to increase energy efficiency and cleaner power as part of a broad effort to cut carbon emissions.
Dive Insight:
Obama is making it a priority this year to cut carbon dioxide emissions. For utilities, the focus will be on pending regulations to cut emissions from existing power plants.
As a quick reminder, in the mid-2000s it appeared the U.S. was moving towards a national cap-and-trade plan. Those efforts went nowhere and for several years climate change actions were put on the backburner at the federal level. It now looks highly likely that new regulations will emerge, which will undoubtedly be challenged in court. The rules will give an additional nudge towards the ongoing change in the way utilities and generators make electricity. Less coal and more natural gas, which Obama called a “bridge” in his speech, and much more renewables and efficiency.