Senate climate bill going nowhere soon, if ever; will Obama, EPA and states be the back-up

(Photo of Capitol engulfed in emissions from Flickr and Capitol Climate Action.)

Don’t hold your breath for the Senate to act on climate change. It won’t happen until next spring –- at least.

Sen. John Kerry (D-Mass.), lead sponsor of the strongest bill in the Senate, told reporters Monday that Dem leadership won’t start climate debate until after both health reform and financial regulatory reform are disposed of – likely around March.

Meanwhile Kerry is working with Sens. Lindsey Graham (R-S.C.) and Joe Lieberman (I-Conn.) in an effort to craft a bipartisan bill that can garner 60 votes. (Why am I not thrilled about that?) They plan to have an outline ready within three weeks, before the international conference in Copenhagen.

A lot of moderate Democrats and most Republicans in the Senate are finding reasons to oppose climate legislation.

Two of them, Sens. James Webb (D-Va.) and Lamar Alexander (R-Tenn.) have offered an alternative that would emphasize new technology. It would provide $750 million each of the next 10 years for R&D on carbon capture, advanced biofuels, solar power, advanced batteries and recycling of used nuclear fuel. It would also give $1 billion to the Nuclear Regulatory Commission to review advanced and small nuclear designs. The two said they did not support the Kerry-Boxer bill because it relies on cap-and-trade. (What they didn’t say is it will hurt coal.)

If climate action doesn’t happen by spring, conventional wisdom is that it will be stalled until after the 2010 elections. That doesn’t bode well. If Democrats lose one Senate seat, power will switch to the GOP, and climate change denier Sen. James Inhofe (D-Okla.) will replace Sen. Barbara Boxer (D-Calif.) as Environment Committee chair. We’ll be back to “drill, baby, drill.”

Many Dems in the House, who voted for the climate bill that passed their chamber in June, are now under fire from more conservative Republicans in their districts. It’s unsure how that will play out in the voting booth.

If we can’t get something passed by early spring, it may be left to the president, the EPA and the states to provide the impetus for change. Obama made a pact with China this week for cooperation on renewable energy, the EPA is working on rules to regulate large CO2 emitters, and states in the East, West Coast and Midwest are likely to merge the cap-and-trade markets they have been working on regionally.

(Souces: E&E Daily, E&E News PM)

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)