Wind, solar and geothermal tax credits extended, but fossil fuels get incentives too

(Photo of wind farm in Texas from Flickr and photographer fieldsbh)

Washington Report: In case you missed it, the $700 billion bailout bill included renewable energy tax credit extensions, which just a week earlier had seem DOA for this session of Congress because the Senate and House couldn’t agree. It was the Senate version (the least desirable one) that was attached to the bailout. So we got good news and bad news: the good being that renewable energy companies can continue to grow – the bad being that coal, oil shale and tar sands got a break too. The $17 billion package of extensions included:
• 1 year of production tax credits for wind (the industry is already lobbying for longer-term extension of credits)
• 2 years of production tax credits for geothermal, biomass and other alternative sources.
• 8 years of investment tax credits of 30% for solar energy for homes and commercial properties and removal of the $2,000 cap (so an installation costing $30,000 would be reduced to $20,000).
• Biodiesel credits for the U.S. that put an end to Europeans shipping their product here to get the credit and then back again.
• New credits for plug-in electric hybrid vehicles of $2,500 to $7,500. The new Chevy Volt would qualify at the top level.
• New credits for wave and tidal energy projects.
• New employer tax credits to reimburse up to $20/month to those who use bicycles as their main commuter transportation
• New credits for refineries that process oil shale and tar sands.
• New credits for coal-fired plants that capture and store carbon dioxide, including pumping it into depleted oil fields to extract the remaining oil.
• Inclusion of coal-to-liquid fuel as an alternative fuel.
(Sources: Greenwire, E&E Daily)

Wins and losses in this Congress in fight against global warming

Washington Report: Congress has left Washington for the election campaign, and a lame duck session in November is unlikely to bring much action on the global warming front. So we can probably go ahead and assess what this Congress has done for us in the fight to curb greenhouse gases. There was a flurry of activity, with multiple committee hearings and dozens of proposed bills, so the topic was high profile. But what was really accomplished? Not much.
• The biggest victory was passage for the first time in 2 decades of a corporate average fuel economy (CAFE) standard for cars and light trucks. They will have to average 35 mpg by the year 2020. That bill also had a renewable fuel standard, which encouraged a controversial increase in the use of corn ethanol, which does nothing to curb greenhouse gases and drove up food prices.
• Left on the drawing board, passed by the House but not the Senate, was a renewable electricity standard of 15% by 2020 to force power plants to use less fossil fuel and more renewables.
• Failed to summon the 60 votes needed to debate a compromise and watered-down global warming bill by Sens. Joe Lieberman (I-Conn.) and John Warner (Va.)
• Permitted the 26-year-old off-shore drilling ban to expire, as well as a ban on oil shale extraction in Western states. (Though Democrats are hoping to reinstate the offshore ban, at least partially.)
• Extended renewable tax credits for wind, solar and other renewable sources, adding incentives for plug-in cars and wave energy, but also for fossil fuels in the form of refining oil shale and tar sands, producing coal-to-liquid, and sequestering carbon. The tax credits were on their way to oblivion when the Senate leadership attached them to the $700 billion bailout bill at the 11th hour.
So, the fossil fuel interests basically won every round except auto fuel efficiency, if you see extension of renewable credits as maintaining the status quo. There’s been a lot of activity, but not much progress. We need to get those 60 votes in the Senate.

House, Senate both extend renewable energy tax credits, but are still at odds

Washington Report: At long last, both House and Senate have extended the renewable energy tax credits due to expire at years’ end. The House passed its bill Friday, the Senate its earlier in the week. But they passed different versions and now have to reconcile them, which seems to be a problem. At issue are:
*The addition of tax credits for oil shale and tar sands refineries and coal-to-liquid in the Senate bill.
*Failure to pay for all credits in the broader Senate bill, which goes beyond energy credits with other business and individual tax credits.
House Dems and environmentalists strongly object to the introduction of credits for fossil fuels. Rep. Jay Inslee (D-Wash.) called oil shale “enormously environmentally damaging.” So are tar sands and coal-to-liquid fuel. On the second point, Blue Dog (conservative) Democrats in the House don’t want to see anything passed that isn’t 100% paid for. The White House favors the Senate bill, despite some taxes on oil, and says it would veto a final bill that looks like the House version. So now the two chambers have to resolve the conflict. Inslee said he thinks that is possible, since a large majority favors the extensions. The Senate Bill passed 93-2. House Dems have passed renewable tax credit extensions without fossil fuels 8 times. (Sources: E&E Daily, E&E News PM)

Big Oil wins this round; offshore ban is gone

(Photo of offshore oil platform from Flickr and photographer absolutwade/Beau Wade)

Washington Report: Big Oil has won, at least for now. After spending millions on lobbying, and taking advantage of the rise in gas prices to win over two powerful advocates, President Bush and John McCain, it has two-thirds of the country believing we need to drill offshore – and drill now. Not to mention those omnipresent American Petroleum Institute ads of an annoying woman of indeterminate age in a black pantsuit who strides across the U.S. map as if she owns it, telling us Congress has put most of the oil reserves in the U.S. off bounds. Well, they aren’t anymore. For the first time in 26 years, Congress has let the moratorium on offshore drilling expire. Starting Oct. 1 oil rigs technically could spring up just 3 miles offshore, except within 150 miles of Florida’s Gulf Coast, which was placed off-limits by a 2006 law. Also gone is the ban on oil shale in the West. It’s a huge step backward for the environment and a win for fossil fuels. Not satisfied, some lawmakers continue to push their drilling agendas. Republicans want to give the states a portion of the royalties (which some gulf states had and lost) and speed up leasing and permitting. Democrats from Massachusetts want to make sure to protect the Georges Bank fishing grounds (“shellfish, not Shell Oil”) and national marine sanctuaries from drilling. A new president and Congress could reinstate the ban. (E&E News PM)

‘Gang of 10’ bill dead for now; tax credit extensions likely for renewable energy

(Photo of wind farm from Flickr and photographer lamusa/Jennifer)

Washington Report: The Gang of 10 bipartisan Senate energy package is over, at least until after the election. The 20 supporters apparently couldn’t reach agreement and pulled the bill Friday. Pressure to expand offshore drilling after a more generous Democrat bill passed the House, as well as a fast-tracked bipartisan bill to extend renewable energy tax credits contributed to the decision. The financial crisis also promised to bump an energy debate as a top priority. But it was unclear Friday whether the offshore drilling ban would be allowed to expire Sept. 30 or would be extended in a resolution to continue government spending till year’s end. Meanwhile the Finance Committee’s bill on tax credit extensions is likely to come up next week. That bill would, among other things:
• Extend production tax credits for wind 1 year.
• Extend investment tax credits for solar energy 8 years.
• Extend credits for energy efficient buildings for 1 year.
• Add credits for small residential wind turbines and geothermal pumps.
• Add credits for new advanced coal and coal gasification, and to industry for capture and storage of CO2
• Add consumer credits for plug-in vehicles
• Limit but not repeal tax breaks for oil companies.
A coalition of industry and environmentalists warned Thursday that failure to extend renewable tax credits could cost 100,000 jobs and billions in investments. (Sources: Greenwire, E&E PM, E&E Daily)

House approves energy bill with off-shore drilling, tax credit extensions for renewables, RES

(Photo of Capitol Building from Flickr and photographer seansie/Sean Hayford O'Leary)

Washington Report: The House on Tuesday voted 236-89 to pass a comprehensive energy package that allowed for more off-shore drilling but at the same time rolled back oil tax breaks to fund renewable energy and efficiency. HR 6899 would:
• Allow drilling more than 100 miles of both coasts and, if states said OK, drilling 50 miles off their shore; maintained the ban on drilling within 125 of the west coast of Florida; protected Georges Bank fishing grounds off New England from drilling.
• Create a renewable electricity standard (RES) mandating 15% of electric power come from renewable sources by 2020, though one-fourth of the mandate could be met with efficiency.
• Roll back $18 billion in oil tax breaks to fund renewable energy and conservation.
• Extend investment tax credits for solar energy 8 years, production tax credits for wind 1 year, and other renewables like geothermal and wave energy 3 years.
• Make $1 billion in tax credits available for coal plants that use carbon capture and storage (CCS) technology.
• Lift a moratorium on oil shale leasing in Colorado, Utah and Wyoming, though the states must pass laws to permit it.

The politics behind the bill
Environmental groups, while liking the renewable provisions, objected to the bill’s offshore drilling, oil shale and CCS provisions. Democrats said they backed down on offshore drilling because public opinion favors it and they wanted to give cover to moderate Dems in tough re-election fights. They also noted the offshore drilling ban expires at the end of September, which would permit drilling as close as 3 miles offshore if Congress doesn’t act. They added CCS and oil shale at the last minute to garner more support. GOP leaders, who wanted much broader offshore drilling, complained they had no input into the bill and said it would not add to domestic oil production because states would have no financial incentive to allow drilling off their shores. The White House threatened to veto the bill, based on the rollback of oil tax breaks and the RES. (Sources: Congressional Quarterly, E&E Daily,
thedailygreen.com)

House Dems back down on offshore drilling

(Photo of drilling platform off Santa Barbara that caused big spill in 1969 from Flickr and photographer Doc Searls)

Washington Report: Facing the threat that the ban on offshore drilling will be allowed to expire Sept. 30, House Democrats are expanding the drilling provision in their new energy package to include drilling 100 miles offshore and as close as 50 miles off the east and west coasts if states want it. Their ace in the hole is that they haven’t included royalties for the states, which makes it less likely states will opt in. The plan maintains a ban within 125 miles of Florida’s gulf coast until 2022. Also, in an effort to bring coal-state reps onboard, the plan now would spend $10 billion over 10 years on carbon capture and storage technology. A third new item is more vehicles using natural gas as fuel. The package also includes:
• A renewable electricity standard (RES) of 15% by 2020, one-fourth of which can be met with efficiency
• Extension of tax credits for renewable energy and efficiency
• Pressure on oil companies to drill where they have existing leases, such as Alaska
• Repeal of Big Oil tax breaks and royalty subsidies
• Release of oil from the Strategic Petroleum Reserve
• More money for public transit

The package is expected to go to the Rules Committee Monday and be voted on as early as Tuesday. The GOP has its own bill – The American Energy Bill – which calls for much wider offshore drilling, drilling in ANWR, and more use of oil shale and nuclear plants, as well as expanded renewables and efficiency.

In the Senate, the “Gang of 10” bill picked up 4 more sponsors this week: Susan Collins (R-Me.), Amy Kobluchar (D-Minn.), Elizabeth Dole (R-N.C.) and Evan Bayh (D-Ind.), doubling the original 10. That bill is also expected to come up next week, along with two alternatives. Senate Majority Leader Harry Reid (D-Nev.) said he'd like to vote first on the tax credit extensions before bringing up broader bills. For more on the “Gang of 10” and background on the House bill, see EarthlingAngst’s Sept. 5 post. There is an urgency to pass something before the end of the month, when the offshore moratorium expires, allowing drilling within 3 miles of shore. With elections at hand and public sentiment buying the argument that drilling is the answer, it’s clear that science is not winning out this time. (Source: E&E Daily)


•

House Dems have new energy bill, adding renewable electricity standard and tax credits

(Photo of Speaker Nancy Pelosi from Flickr and Talk Radio News Service)

Washington Report: Rallying back after being caught off-guard on offshore drilling, Nancy Pelosi and the House Democratic leadership plans to bring a new energy package to the floor when Congress returns next week. Emphasizing renewable energy, green jobs and efficiency, the Democratic package will include some expansion of offshore drilling, because it has become so popular with the public. But most of the emphasis will be on renewables. One important element will be the oft-tried extension of renewable tax credits, due to expire the end of the year. Large wind and solar projects are at risk because of the delay in extending the credits, held up by Republicans in the Senate (with John McCain refusing to vote many times, including once when a yes vote from him would have done the trick). While the new House bill is a work in progress, it is expected to include:
• A renewable electricity standard (RES), which has passed the House but not in the Senate.
• An energy efficiency standard
• Repeal of big oil tax breaks
• Help for mass transit
• Some relaxation of the off-shore drilling ban, with safeguards
• Extension of renewable and efficiency tax credits
Republicans are already calling the bill a gimmick and say the RES (which would mandate a percentage of electricity come from renewable sources) is a deal-breaker. A vote could take place as early as Sept. 12.

And in the Senate
Majority Leader Harry Reid (D-Nev.) says he will call for a vote on the “Gang of 10” bipartisan energy bill soon after Congress reconvenes. Over the August break, six more Senators signed on – Republicans John Warner (Va.), John Sununu (N.H.) and Norm Coleman (Minn.) and Dems Tim Johnson (N.D.), Ken Salazar (Colo.) and Tom Carper (Del.) Their proposal, which environmentalists says is too reliant on old fossil fuels, would:
• Allow off-shore drilling up to 50 miles off Florida in the Gulf of Mexico
• Allow the Carolinas, Georgia and Virginia to decide if they want drilling 50 miles from their shore and giving them some of the royalties.
• Repeal billions in tax breaks for oil companies to help fund renewable energy and conservation
• Set a goal to wean 85% of autos off oil-based fuels in 20 years
• Extend renewable and efficiency tax credits until 2012
• Give tax credits for extremely efficient vehicles
• Fund next-generation biofuels and loan guarantees for coal-to-liquid plants that can capture carbon dioxide.

How they differ
The Senate “Gang of 10” proposal (details still unknown) would not include a renewable energy standard (RES) or energy efficiency standard. The House proposal (also few details) would include no coal-to-liquid provision. Presumably the Senate proposal will do less for renewables than the House package and will allow more offshore drilling. Once the details are known it will be more clear what the differences are. Original sponsors of the “Gang of 10” proposal are all pro-drilling. They are Sens. Kent Conrad (D-N.D.), Saxby (R-Ga.), John Thune (R-S.D.), Ben Nelson (D-Neb.), Lindsey Graham (R-S.C.), Blanche Lincoln (D-Ark.), Mary Landrieu (D-La.), Johnny Isakson (R-Ga.), Bob Corker (R-Tenn.) and Mark Pryor (D-Ark.).

The White House view
A spokeswoman for President Bush said Friday he wants Congress to give him a "clean" energy bill (not to be confused with "clean energy" bill) that expands offshore drilling, removes limits on oil shale leasing and extends the renewable tax credits. Apparently his idea of a "clean" energy bill is one that doesn't have all that other stuff in it.

The urgency
If agreement isn’t reached soon, renewable tax credits will expire, putting a stop to many wind and solar projects. Also the moratorium on offshore drilling will die if it’s not renewed by Congress. But more important, going into this election season, is that the voters are worried about gas prices and want to see some action taken. Will Republicans be able to win out with their “drill now” mantra? Or will Democrats prevail with an emphasis on renewable energy and green jobs? Both claim their plans will further energy independence. The maneuvering will be interesting – and disturbing – to watch. Whatever they do won’t help gas prices and – more important – won't do as much as is needed to fight against global warming.

How you can help
Join the Sierra Club, Physicians for Social Responsibility and other groups Tuesday, Sept. 9 for National Call-in Day. Call your senators and representatives (Congressional switchboard is 212-224-3121) and tell them the emphasis should be on renewable energy, efficiency and green jobs, not offshore drilling and more fossil fuels. Also write a Letter to the Editor to that effect. Help shape the debate.

(Sources: Greenwire, E&E PM, Sierra Club)

Offshore drilling battle could lead to government shutdown Oct. 1

(Photo of Capitol Building from Flickr and photographer seansie/Sean Hayford O'Leary)

Washington Report: Republicans and Democrats may be headed for a showdown in Congress that could shut down government, halting paychecks and benefits and causing layoffs. Unable to reach agreement on an energy bill, Dems may add the yearly extension of the offshore drilling moratorium to a short-term government funding bill that will be needed at the end of September, which 3 dozen GOP senators have vowed to “fight vigorously.” Offshore drilling is an issue Republicans think could work for them politically if Dems continue to oppose it. Both parties’ leaders have agreed to an Energy Summit when Congress returns Sept. 8, but details have yet to be worked out. Democrats’ answer to high gas prices is release of oil from the Strategic Petroleum Reserve, a requirement that oil companies drill on the 68 million acres they have under lease before bidding on new leases, and curbs on energy futures speculation. They also want repeal of oil tax breaks, a renewable energy standard of 15% by 2020 and extension of renewable tax credits. The Republicans’ fossil-fuel-heavy plan calls for repealing the offshore drilling moratorium on the east and west coasts, drilling in ANWR, oil shale extraction in the Rockies, increased incentives for nuclear energy, extension of credits for wind, solar and hydrogen, new tax breaks for coal-to-liquid, tax breaks for electric cars and speeding up permits for oil refineries. “The Gang of 10,” a bipartisan group of senators, came up with a compromise bill just before the August break, which might have a chance of breaking gridlock, so long as one side doesn’t see a political advantage in stalling. But it’s going to be hard to get agreement when the parties are so far apart, and the petroleum industry opposes it. Main provisions include:
• Drilling in the eastern Gulf of Mexico
• Drilling offshore from 4 Southeast states – Virginia, Georgia, North and South Carolina – if the states agree
• Repeal of billions in oil company tax breaks
• Extension of tax credits on renewable energy sources like wind and solar
• New loan guarantees for coal-to-liquid
• Speeding of permits for nuclear plants
• Billions for R&D for advanced biofuels and batteries
To read more see the Grist blog. (Souces: Greenwire, San Francisco Chronicle)

'Gang of 10' Senate proposal gets Obama backing

(Photo of offshore drilling from Flickr and photographer absolutwade/Beau Wade)

Washington Report 1: The Senate “Gang of 10” drew support from Barack Obama Friday for a bipartisan compromise energy package that would relax restrictions on some offshore drilling, while repealing some tax breaks on the oil industry and funding renewable energy and conservation. Obama had previously opposed more offshore drilling but said he favored some of the other provisions in the bill and compromise was needed to get anything passed. The proposal, led by Sen. Kent Conrad (D-N.D.) and Sen. Saxby Chambliss (R-Ga.) was the result of many meetings to craft a bill that would satisfy voters upset over high gas prices and reduce dependence of foreign oil. It will likely come to the floor after the August break. It would:
• Reduce the no-drilling area in the eastern Gulf of Mexico to 50 miles off the Florida coast from 150 miles offshore (both Florida senators strongly objected).
• Allow drilling offshore from four Southeastern states -- Virginia, Georgia, North and South Carolina -- if the states agree, and share some revenue with the states.
• Repeal tax breaks worth $30 billion for oil companies, which made record profits this quarter (see below).
• Extend renewable energy tax credits, due to expire this year, until 2012, to encourage development of wind, solar and other renewable sources.
• Give incentives to coal-to-liquid plants that can capture and store carbon.
• Fund R&D on advanced batteries and help automakers retool.
• Develop and demonstrate next-generation biofuels.
• Give tax credits for highly efficient cars and those that use non-petroleum fuels. Senate Majority Leader Harry Reid (D-Nev.) gave the proposal luke-warm praise as a starting point for some agreement on energy. The American Petroleum Institute opposed the repeal of some oil tax credits (calling it "tax increases), saying it would discourage domestic drilling. (Source: Greenwire)

Oil companies earn record quarterly profits

(Photo of pump prices in May from Flickr and and futureatlas.com)

Washington Report 2: While drivers were paying high prices at the gas pump over the past few months, oil companies were raking in profits. The major oil companies all announced record 2nd-quarter profits in the past week:
• Exxon Mobil: $11,680,000,000
• Shell: $11,600,000,000
• BP: $9,460,000,000
• Chevron: $5,980,000,000
• ConocoPhillips: $5,439,000,000
And that’s just for 3 months. All those zeros kind of take you aback, don’t they? (Source: Greenwire)

LCV adds Stevens to ‘Dirty Dozen’ list to defeat

(Photo of Sen. Ted Stevens (left) after committee hearing from Flickr and U.S. Army photographer Staff Sgt. Jim Greenhill)

Washington Report 3: The League of Conservation Voters has added indicted Sen. Ted Stevens (R-Alaska) to its list of targets for defeat in the coming election. Stevens has an LCV lifetime voting record of 14% on bills to protect the environment and has consistently voted for billions in breaks for oil companies, LCV said. Others on the list:
• Sen. Mary Landrieu (D-La.), who has the worst voting record on the environment among Dems running for re-election.
• Rep. Stevan Pearce (R-N.M.), a congressman running for an open senate seat against Rep. Tom Udall (D-N.M.). Pearce’s lifetime percentage on the environment is 1%, compared with Udall’s 96%.
• Sen. Mitch McConnell (R-Ky.), minority leader of the Senate who has been a roadblock to clean energy and global warming legislation.
• Former Rep. Bob Schaffer (R-Colo.), who left the House to work for an oil company and is now challenging Rep. Mark Udall (D-Colo.) for an open senate seat.
• Sen. James Inhofe (R-Okla.), former chair of the Environment Committee, who has said global warming is a “hoax.”
• Rep. Joe Knollenberg (R-Mich.), one of the biggest opponents to progress on global warming and clean energy.
The final 5 in the dozen are yet to be named . LCV helped oust two of its targets in 2006, former Sen. Conrad Burns (R-Mont.) and former House Natural Resources Chair Richard Pombo (R-Calif.) (Sources: Greenwire, LCV)

Levee weakness, rising seas could put Washington under water if major storm hits

(Photo of Jefferson Memorial from Flickr and photographer ktylerconk/Kathleen Conklin)

News Update 2: I recently read a futuristic novel about global warming, in which a rising Potomac River caused a Katrina-like flood to inundate Washington, D.C. So I was struck when I saw this story on The Daily Green this week: Officials are saying a 70-year-old levee system in the capital is at risk of failing in a major storm. If the levee system fails, downtown Washington could be under 10 feet of water, officials said. Built on reclaimed swamp, national monuments, museums and office buildings are at increasing risk as global warming increases sea levels, development causes more storm run-off and heavier rains threaten. Three of the levees, inconspicuous because they’re covered by grassy berms, are deficient, according to the Army Corps of Engineers, and the District of Columbia has committed $2.5 million to repair them. On several occasions sandbags have been put out on the National Mall to protect monuments and in 2006 heavy rain damaged several downtown buildings and closed the Justice Department. (Sources: The Daily Green, Associated Press)

Oil profit announcements next week may give Dems edge in spat over offshore drilling

(Photo of ConocoPhillips gas station from Flickr and photographer Alec Ananian)

Washington Report 1: Three major oil companies will announce their earnings next week, possibly giving Democrats an advantage in the political fight over energy. Dems today failed 50-43 to pass a bill calling for more regulation of commodity traders, blaming high gas prices on speculators. Republicans, on the other hand, are calling for more domestic exploration, especially offshore and in shale. Dems say the oil companies should drill in the 68 million acres they already have under lease rather than offshore, and tried unsuccessfully to pass a bill to that effect. One big oil company, ConocoPhillips, announced its second-quarter earnings last week, revealing a $5.4 billion profit, up 13% from the same period last year. Rep. Rahm Emanuel (D-Chicago) criticized the oil companies for using too much of their record profits for stock buy-backs and not enough for drilling. ConocoPhillips used $2.5 billion to buy back stocks. Exxon, Chevron and BP will all announce their earnings next week. Dem leaders are expecting record profits from all, at a time when people are hurting because of the price of gas. They think that will give them an election-campaign advantage, while Republicans think they have a winning message with their call for more offshore drilling. If you want to take action in opposition to offshore drilling, go to the Sierra Club Web site and write an effective letter to the editor. (Sources: Greenwire, E&E Daily)

Senate may try again next week to extend renewable energy tax credits

(Photo of solar panels on Florida beach house from Flickr and photographer John Tracy)

Washington Report 2: Senate Finance Chair Max Baucus (D-Mont.) is likely to try one more time next week to get renewable energy tax incentives extended beyond December. In an effort to win a few more GOP votes, he has added some sweeteners to the tax package (which contains more than renewable credits). Additions include money for the highway trust fund, disaster relief and mental health parity, and an alternative minimum tax fix. Extending the credits for wind, solar, biomass, geothermal and efficiency are not at issue. Rather there is disagreement about how to pay for them. Congress leaves soon for its August break and Dem leaders would like to see the credits extended before then, to provide stability for clean energy businesses. (Source: E&E Daily)

House cafeteria cutting greenhouse gases – and making $$ at it

(Photo of salad from Flickr and photographer roboppy/Robyn Lee)

Washington Report 3: House members and staff are eating green and making green, and the Senate likely will soon follow suit. In December, Restaurant Associates took over House restaurants and food services and made them more environmentally friendly. Among other things, they:
• abolished Styrofoam
• used local produce in salad bars
• switched to organic coffee
• started composting much of the waste.
And it’s profitable. The greener cafeterias are expected to bring in $1 million annually. Why? Because more people are staying on The Hill to eat their meals, now that they are healthier and better. The Senate, which has had taxpayer-subsidized food services running at a loss ($1.3 million last year), is expected to sign a contract with Restaurant Services this week. Building on its success, the company also started a farmer’s market in the Cannon House Office Building, selling government types fresh fruits and vegetables from farms within 150 miles, (Source: E&E Daily)

EPA regulation of GHG would harm Bush legacy, Cheney, oil interests thought: report

Washington Report 1: President Bush dumped an EPA plan to regulate greenhouse gas emissions from power plants, refiners and autos at the urging of White House insiders, who feared it would hurt the president's legacy, a former EPA official told a congressional committee this week. The administration's efforts to respond to the Supreme Court's April 2007 decision, calling on EPA to regulate heat-trapping emissions, were outlined by Jason Burnett, a former adviser to Administrator Stephen Johnson, who spoke to the House Select Committee on Energy and Global Warming. Committee Chair Ed Markey (D-Mass.) concluded, in a report that combines Burnett's closed-door testimony with documents obtained by subpoena, that the president backed down after hearing arguments from the office of Vice President Dick Cheney, the Office of Management and Budget, the Transportation Department, Exxon Mobil Corp. and others in the oil industry. (Source: E&E Daily)

Dems’ Drill Bill in House comes up dry as parties spar over lifting offshore drilling ban

(Photo of Texas oil rig from Flickr and photographer Lizzie Vengeance/Lizzie Phillips )

Washington Report: House Democrats tried Thursday to pass a bill that urges oil companies to speed up exploration where they have current leases. Despite support from 26 Republicans, the bill failed to get the two-thirds vote it needed under expedited rules – 11 oil patch Dems voted against it. This bill was the Dem response to GOP efforts in both chambers to relax the ban on offshore drilling and paint Democrats as blocking oil exploration here, hence keeping gas prices high. Minority Leader Mitch McConnell (R-Ky.) has introduced a bill, supported by several dozens fellow Republicans, to let states decide whether to lease in federal waters and then get a cut of the take. But it looks like they won’t be able to muster the votes in either house to end the ban on offshore drilling. A vote of the Congress is needed to end the ban, despite President Bush’s announcement. (Source: E&E News PM)

We’ve used up all the slack time to avoid global warming tipping point -- Hansen

(Night photo of coal-fired power plant in Ohio from Flickr and and photographer Daniel Shea

Washington Report: NASA scientist James Hansen, who first warned Congress about global warming exactly 20 years ago, testified Monday a new administration and Congress must make a “transformational” energy change next year or be plunged into catastrophic, unstoppable climate change.

The main points of his statement, published in advance in The Guardian in England:
• CO2 in the atmosphere must be reduced and kept below 350 parts per million to avoid climate change disaster (it is now at 385 ppm and the Lieberman-Warner bill targeted 450).
• The first requirement is to halt use of coal unless the CO2 is captured and stored. He called for a moratorium on new plants that don’t do that.
• A price on emissions is essential. A carbon tax, with all the money going back to the public in the form of a “dividend,” would be best, he said, with a full share to every adult and half-share to children.
• Fossil fuel CEOs have known about the damage CO2 was doing, but like the tobacco companies, encouraged doubt about a link to global warming. “In my opinion, these CEOs should be tried for high crimes against humanity and nature.”
• The next President must make a low-loss electricity grid a priority, so renewable energy can replace fossil fuels for power generation.
• Fossil fuel interests must be blocked from squeezing every last drop of oil from public lands, offshore and wilderness areas. It will only delay the real change that is needed to avoid a tipping point.

The tipping point has already been reached in the Arctic, Hansen said, and regardless of new emissions, summer sea ice will disappear. The risk now is passing a tipping point in West Antarctica and Greenland, which will rise the seas if they melt. Without a big change, he predicted a sea level increase of 2 meters (6 feet) by century’s end, which would bring constantly unstable shorelines and hundreds of millions of refugees.

Hansen, the director of NASA’s Goddard Institute for Space Studies, told Congress June 23, 1988, that the world was warming, that the cause was man-made, and that it would lead to erratic weather with floods, droughts and wildfires. Some call him a prophet and some have said he is “nuts.”

This week Sen. James Inhofe (R-OK), R-Okla., said, "Hansen, Gore and the media have been trumpeting man-made climate doom since the 1980s. But Americans are not buying it."

Hansen has suggested he might campaign against some of the obstructionists in Congress. Inhofe is facing a challenge this year from Democrat Andrew Rice in Oklahoma.

(Sources: The Guardian, ClimateWire,
EnvironmentalLeader.com, Associated Press)

New House global warming bill could bypass Energy Chair Dingell, causing jurisdiction dispute

(Photo of Capitol Building from Flickr and photographer Tolka Rover/Eamonn O'Brien-Strain)

Washington Report 1: Three members of the House Ways and Means Committee are about to introduce a cap-and-trade bill to cut greenhouse gases 80% (below 1990 levels) by 2050 and auction 85% of the credits. Democrats Lloyd Doggett (Texas), Ed Blumenauer (Ore.) and Chris Van Hollen (Md.) said they will give the Treasury Department, not the EPA, authority over key parts of the bill. That means Ways and Means can have jurisdiction. The bill has 17 co-sponsors including Rahm Emanuel (lll.) the 4th most powerful Democrat. While W&M Chair Charlie Rangel (D-N.Y.) is expected to hold hearings this summer, the bill is not likely to go to the floor until a new president and Congress are in place, to give it a better chance. Energy Committee Chair John Dingell (D-Mich.), an ally of the auto industry, has had jurisdiction over global warming legislation for the past 18 months, during which time he has issued 4 white papers and held subcommittee hearings, but made no substantial progress. This is not the first effort to bypass Dingell. Rep. Ed Markey (D-Mass.) introduced a cap-and-trade bill earlier this month that went to Ways & Means, as well as Energy and 8 other committees. Dingell and his colleague on the Energy Committee, Rick Boucher (D-Va.) responded that while they welcome the thoughts and work of other committees, they will take the lead on any cap-and-trade legislation. (Source: E&E PM)