Energy Panel Urges Efficiency, Carbon Limits

A 16-member commission that includes top electric utility officials, academics, politicians, and the former heads of EPA and the CIA released a report last week urging limits on greenhouse gas emissions, greater vehicle fuel efficiency standards, and a national program to develop more and cleaner energy sources. The report calls for implementation of a mandatory tradable-permit system for greenhouse gas emissions by 2010. The system would be based on a mandatory 2.4% annual reduction in greenhouse gas intensity--tons of emissions per dollar of GDP. The Bush Administration has also called for declining intensity, but its plan is less aggressive and voluntary. The recommendations cover a host of energy areas, but the commissioners were unable to reach agreement on drilling in the Arctic National Wildlife Refuge, they said. Overall, the report calls for a doubling in federal spending to $36 billion over 10 years for energy-related research and tax incentives. The commissioners estimate, however, that the program will be revenue neutral, because an amount equal to spending will be generated by the permit trading and auction program. The report is available at http://www.energycommission.org.