The fact that any near-term US federal action on cap-and-trade is pretty much dead is widely acknowledged. However, in addition to the abandonment of cap-and-trade legislation in the Senate (see our blog of Aug 26) other recent developments at the White House point to a change of tack for President Obama’s New Chapter on Climate Change.

In August, the White House ordered the redirection of $1.5B in clean energy funding into a state aid package. The Administration also recently requested the Supreme Court to overturn an appeals court decision that allowed Connecticut and several other states to seek greenhouse gas (GHG) emissions reductions under a federal common law nuisance claim.

The request to overturn the September 2009 appeals court decision is based on EPA actions to regulate GHGs that have since occurred, and that potentially supplant a reason given by the Second Circuit for allowing the lawsuit to go forward. But while there is no doubt that the EPA has moved the yardsticks forward, the Rockefeller Resolution, which would delay EPA regulation by 2 years, has broad support in the Senate and poses a serious threat to the EPA’s planned January 2011 program start date.

Just a couple of months ago a Presidential veto was expected on measures to block or delay EPA action. Now a strong stand appears optimistic at best, with some environmental advocacy groups feeling betrayed by an Administration that has generally been more open to environmental regulation than its predecessor.

Dwindling support may lie in the fact that US unemployment figures rose to nearly 10% in August; second quarter US economic growth was at a paltry 1.6% and public support for the present Administration is waning. Whatever the reason, it would appear that those seeking action and leadership on climate change shouldn’t look to federal policy makers (on either side of the border) for some time to come.