Major energy legislation (HR 4) has been passed by both the U.S. House of Representatives and the Senate. Both versions of the bill, now headed for a conference committee showdown, would enact key portions of the Bush energy plan, including increased subsidies for nuclear power, clean coal and other fossil fuel sectors, while boosting tax incentives for energy efficiency and alternative energy sources such as wind, solar and fuel cells.

The bills both fail to tackle some prominent sources of air pollution, including vehicle emissions, which could be slashed if Congress approved higher fuel efficiency standards for passenger vehicles. However, the Senate version would triple the amount of ethanol added to gasoline across the nation by 2012, a step that could help states meet clean air standards without using water polluting MTBE.

President George W. Bush moved to reduce power plant emissions of three major pollutants -- sulfur dioxide, nitrogen oxides and mercury -- through his Clear Skies initiative, unveiled in February 2002. Critics say the largely voluntary program, which would set nationwide emissions caps that companies could meet by trading pollution credits and other market based mechanisms, could actually increase the real emissions of these pollutants.

The Clear Skies initiative also aims to cut the nation's so called carbon intensity, a measure of carbon emissions tied to U.S. economic activity. The proposal has been widely criticized both at home and abroad as an inferior tool for combating global climate change, when compared to the international Kyoto Protocol that President Bush has rejected.

A number of states have passed or are reviewing legislation to curb carbon emissions from fossil fueled power plants, a trend that could eventually prompt calls by the energy industry for uniform nationwide standards.

Legal challenges to the new source review (NSR) provisions of the Clean Air Act continue, with hearings on a landmark case brought by the federally operated Tennessee Valley Authority beginning in May. Senior administration officials have said repeatedly that the NSR rule should be overhauled, and the EPA is still reviewing the provision, having missed several self imposed deadlines for announcing any planned revisions.

In January 2002, the Justice Department announced that enforcement actions taken under NSR are legal and consistent with the Clean Air Act and the Administrative Procedure Act. EPA Administrator Christie Whitman has reportedly advised regional EPA offices to continue to seek new cases that can be prosecuted under NSR, while at the same time counseling utilities cited under NSR to avoid settling their cases until the Tennessee Valley Authority's case is decided.

Meanwhile, evidence continues to mount regarding the link between air pollution and human health problems. In April 2002, for example, a report released by a consulting firm and a former enforcement officer from the EPA charged that almost 6,000 premature deaths can be blamed each year on pollution from 80 power plants in the Midwest and Southeast.

More information on the White House Clear Skies initiative is available.

-- Cat Lazaroff