The top administrator for the US EPA recently released findings that will pave the way for legislation that limits greenhouse gas emissions in the United States. With this report, the US takes a big step closer to European Union nations, which have agreed to Kyoto greenhouse gas limits and are pushing for a new treaty on climate change at a December meeting in Copenhagen.

While Congress has vowed to be sensitive to the economic ramifications of either a carbon tax or a cap-and-trade system, businesses face uncertainty until a formal regulation is passed. Particular sectors impacted are electric generation utilities, industrial emitters (oil & gas, mining, chemicals), large scale manufacturing operations, gas suppliers, and refineries.

In these circles, this is Big News. It was immediately picked up by the top nightly news anchors, and published widely on Monday, including articles in The Wall Street Journal, The New York Times, and other members of the Associated Press.

In the short term, these affected entities should proactively measure and monitor current emissions in order to (1) evaluate how regulation may affect them and (2) identify the most economical areas to improve. These are the first steps towards a comprehensive greenhouse gas emissions management system, which will be necessary to efficiently respond to future regulations.

While legislation is working its way through Congress, the public (and some influential economists) are beginning to re-shape opinion about the most efficient way for the U.S. to reduce our total emissions. Today’s blog from John Sall on “Earth Day P’s and Q’s” is a testimony to such growing public interest. As he suggests, catch Earth Day fever and take this opportunity to learn more about environmental policies by reading his recommended articles.

As always, your feedback is welcome. Happy Earth Day!