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August 4, 2004
Eight States Tell Plants to Cool It
Steaming with anger, eight states are suing the top five American energy producers because of their contribution to global warming. Will these companies roast in court? See what it boils down to:
In a historical lawsuit, the states of California, New York, Connecticut, Iowa, New Jersey, Rhode Island, Vermont, and Wisconsin are suing the nation's top five electric companies - American Electric Power Company, the Southern Company, Tennessee Valley Authority, Xcel Energy Inc., and Cinergy Corporation for their contribution to global warming.
Citing that the federal government refused legislation limiting carbon dioxide emissions that cause global warming, the states have taken matters into their own hands. These companies, which operate 174 power plants across the country, produce 650 million tons of carbon dioxide each year, which is 10% of the country's total carbon dioxide emissions. These particular companies were targeted because they are the top producers of carbon dioxide in the nation, according to a recent study.
Instead of seeking any monetary compensation, the states want the companies to lower their carbon dioxide emissions by three percent each year for the next decade. Currently, carbon dioxide emissions are not regulated. The federal Clean Air Act lists sulfur dioxide, which produces acid rain, as a pollutant that can be acted against, but not carbon dioxide.
The plaintiffs express hope for victory in this case, appealing to the way the states handled the tobacco lawsuit, in which they bypassed the federal government to get a billion dollar law settlement from tobacco companies. They claim that carbon dioxide cannot be contained within state boundaries, and that if one plant emits it, the nation if not the entire globe suffers.
Carbon dioxide is just a pet peeve, say to critics of the suit. Energy plants, such as the ones being sued, are already highly regulated; every step of the process is approved at a local, state, and federal level. Cutting emissions would be a long process, one that might not be completed in a decade.
Also, if the states win the suit, jobs in the coal-producing states will be reduced, according to United for Jobs. Plus, energy and electricity rates are certain to increase by unprecedented factors. Harry Alford, United for Jobs co-chairman, notes that the portion of coal-energy used in the plaintiff states is less than 21%. In the states in which the targeted plants are located, more than 50% of their energy comes from coal.
Another factor the judge will have to consider is that if emissions are cut, the economy will suffer because coal-energy will have to come from a costlier source, such as natural gas. The U.S. Senate has declined such plans in the past for this reason. Charles River Associates, an economic research firm, calculated that the emission cuts previously discussed by Congress would eliminate 600,000 jobs and that electricity bills would jump 42%.
However, global warming, a process in which carbon dioxide is a principle component, is a relevant issue. It causes an increase in health problems related to a rise in the planet's temperature, such as heat stroke and asthma attacks due to smog. Hotter temperatures increases risk of wildfires, leads to shortages of water, causes droughts resulting in crop failure, and raises the level of seawater, which can damage property.
The invocation of the public nuisance law in the face of the preexisting federal Clean Air Act will likely cause a great deal of argument on both sides of the case. Critics of the lawsuit state that the outcomes of environmental cases like this one usually restrict the states from using the public nuisance law as the basis for their suit. However, in this case, the Attorneys General plan to highlight the absence of global warming issues in the Clean Air Act.
Though this suit may be a pivotal point for environmental law, others say the issue of global warming can be addressed in less drastic measures, such as conducting more research in solar, wind, and hydropower. Some have suggested changing the habits or policies that waste electricity and that make such high levels of energy generation necessary.
Sources:
State AG 'Global Warming' Lawsuit Targets Coal States, Threatens Jobs
Yahoo Finance News, July 22, 2004
http://biz.yahoo.com/prnews/040722/dcth023_1.html
US States Sue Over Global Warming
New Scientist, July 22, 2004
http://www.newscientist.com/news/news.jsp?id=ns99996194
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