Tuesday, June 23, 2009

Duke vs. Newt: frantic lobbying as House climate bill vote draws near

Duke Energy wants it, Newt Gingrich doesn't. With the House climate bill heading to the floor for debate Friday, lobbying is fast and furious.
In the past two days:
• A group of 22 environmental groups sent a letter to all House members urging them to vote for the bill – the American Energy and Climate Security Act (H.R.2454). Groups included the Natural Resources Defense Council, Sierra Club and League of Conservation Voters. LCV said it would not endorse anyone who votes against it.
• 20 companies and electric utilities took out full-page ads in Washington papers calling for passage because they want the clarity of rules it would bring (and likely because most allowances for cap-and-trade will be given -- not sold -- to polluters at the start). Those signing on included Duke, NRG Energy and PSEG Inc.
• 20 climate scientists sent a letter to Congress saying that to avert a "rapidly developing global climate crisis” they should pass a strengthened version of the bill as a basis for stronger federal policies. Well-known NASA scientist James Hansen, who is convinced CO2 emissions must be cut back to 350 parts per million (from the current 385) rather than the early target of 450 ppm, did not sign.
• President Obama urged passage during his news conference Tuesday, saying it would spark a clean-energy transformation.
• The Cooler Heads Coalition, a new group of science skeptics and other legislative opponents began lobbying Congressmen.
• Newt Gingrich’s American Solutions for a Winning Future planned to run a TV ad, starting Wednesday, opposing the bill and saying it would hurt the economy.

Are the votes there to pass it?
On Tuesday there were 170 reliable votes and 108 on the fence, according to an analysis by E&E Daily. 218 votes are need to pass the bill. If the votes aren’t there, House Majority Leader Steny Hoyer (D-Md.) said he may push it back until after the Fourth of July.

In years past the Senate took the lead on climate legislation, and the House has never passed a cap-and-trade bill. But this year the Senate is lagging behind, with a weak energy bill out of the Energy Committee and Barbara Boxer still crafting a cap-and-trade bill in her Environment Committee. So even if the House manages to pass this bill, Senate agreement is not by any means secure.

A few other points
* The EPA said Tuesday the bill would cost the average household between $80 and $111 a year. Congressional Budget Office figures released Friday said an average of $175 a year, with a range of $40 to $245 depending on income level.

* The bill has been changed somewhat in recent days to accommodate the eight committees with some jurisdiction. A concern of Agriculture Chair Collin Peterson (D-Minn.) has apparently been met by giving rural electric cooperatives one-half a percent of the free allowances. But agriculture is still concerned about who will oversee farm offsets, the Agriculture Department or the EPA. And moderate Democratic representatives from farm states are needed on this vote.

* States would now be permitted to spend 10% of their allotment (which in turn is 10% of free allowances) on public transportation.

* Because of the powerful farm interests, methane emissions from cows have been exempted from the bill. They called it a “cow tax.” Methane is a much more potent greenhouse gas than carbon dioxide, and cows produce about 25% of the emissions so that’s a significant exemption.
(Sources: E&E Daily, E&E News PM)

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