The Environmental Protection Agency's (EPA) latest report on United States (U.S.) annual emissions of greenhouse gases (GHG) (available at http://www.epa.gov/climatechange/ghgemissions/usinventoryreport.html) confirms the trend seen over the latest few years — the U.S. emitted 1.6 percent fewer tons of carbon dioxide equivalents in 2011 than in 2010.  In fact, 2011 emissions were 6.9 percent lower than the amount emitted in 2005 (which was the baseline used in the failed federal climate change legislation).  However, the U.S. 2011 emissions were 8 percent higher than in 1990 (the baseline year for the Kyoto Protocol) and will need to be reduced another 10.1 percent to meet the Administration's goal of a 17 percent reduction in U.S. emissions from 2005 to 2020. 

EPA's automobile fuel economy rule, federal energy efficiency rules for consumer products and buildings, and incentives for the use of renewable energy generation clearly contributed to these decreases in GHG emissions.  Most analysts also attribute a significant portion of the GHG reductions to lower energy usage (due to the still fragile recovery of the economy) and to the switch to the use of low GHG emitting natural gas (a consequence of the historically low prices of this fuel).  There continues to be a debate over the extent to which the utilities' decision to switch to natural gas may be influenced by concerns over the future regulation of coal-fired electric generating facilities.  For example, EPA's proposed GHG emission rule for new electric power plants can only be met by natural gas fired plants or a switch to renewable energy production (given current technology).  Some in the utility and coal industry also fear that EPA may reverse its current policy and promulgate new emissions reduction rules on existing coal-fired electric generating units or that EPA, states or citizen groups may seek to impose GHG reductions unit-by-unit through litigation.  Regardless of the utilities' reasons, the trend toward lower GHG emissions from that sector continues.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.