Outcome of Mid-Term Elections Likely to Impact Energy Issues

Republican gains of at least 60 House seats, 6 Senate seats, and 20 state legislatures will bring leadership changes and oversight that are likely to impact energy policy as well as regulatory requirements beginning in January 2011.

Stationary source reporting requirements for glass and other energy intensive trade exposed industries are scheduled to start mid-year. Affected industries have legally challenged the EPA's authority to regulate these emissions via the Clean Air Act. A decision from the court is expected prior to regulations going into place. Incoming Republican leadership, including John Boehner (R-OH) who is expected to be elected House Speaker, has indicated that they will hold oversight and investigative hearings on federal agency action in this and other areas. 



In California, a voter ballot measure Prop 23 that would have halted that state's cap and trade program until unemployment reached 5.5% was defeated by almost 20%. However, Prop 26, which requires a 2/3's vote by the state legislature to enact local and state fees passed. This may make it more difficult to continue funding for the state's global warming law, via the California Air Resources Board (CARB), as the fees passed onto businesses and industries must now reach this voting requirement. A recent draft of the cap and trade program, issued by CARB, would provide for free emissions credits to the glass container and several other industries in the state until 2020.

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