Pollution is bad; cap-and-trade is ... confusing

(Photo of Wyoming power plant from Flickr and photographer Kenneth Hynek.)

In a stroke of genius Sen. Kerry (that’s John, D-Mass.) switched out the term “cap-and-trade” for “pollution” in the Senate climate bill unveiled this week.

Everyone recognizes pollution is bad (except maybe some who produce it). You can see pollution and smell it – though maybe not the kind of pollution we’re talking about. But the association is there in most minds – pollution casts a cloud over cities, causes asthma and heart attacks, makes water undrinkable and unswimmable.

Greenhouse gases are as dangerous as other types of pollution, but you can’t see, smell or taste them and that’s a problem. Plus, who but the financial traders really understand cap-and-trade?

We need to forget "global warming" and "climate change" and call it what it is – pollution – so that people will care. Because we’ll need a lot of public support to balance out the special interests whose oxen are being gored.

Clean Energy Jobs and American Power Act
Kerry and Senate Environment Chair Barbara Boxer (D-Calif.) unveiled their bill Wednesday to start Senate debate. It’s a little different from the House-passed bill in several respects:
• It calls for 20% reduction in GHG in 2020 (as opposed to 17%).
• It offers incentives for natural gas, the least hazardous of the fossil fuels, and more loan guarantees for nuclear.
• It allows states and regions to continue their own cap-and-trade until after the federal law is implemented.
• It doesn’t interfere with the EPA’s regulation of carbon dioxide in power plants and heavy industry, as the House bill did. But Kerry has already admitted that might be used to get fence-sitters to fall on their side.

On the fence
Speaking of fence-sitters, there are about 21. They include Sen. John McCain (R-Ariz.), who has gone all mavericky on what he used to espouse. His pal and former climate co-sponsor Joe Lieberman (I-Conn.) said this bill has to be changed (read: weakened) to get 60 votes. (60 is the new 51.)

The Kerry-Boxer bill isn’t going anywhere fast, which is more than too bad. That will hurt the possibility of reaching international agreement in Copenhagen. Which means we are stopping the whole world from fighting GHG pollution.

Maddening Max and Blanche
The bill now has to wait for the Finance Committee to figure out how to dole out allowances. (Unlike the House, the Senate bill left that part blank.) And we all know Finance Chair Max Baucus (D-Mont.) knows how to drag his feet. He’s already said this is likely to wait till next year.

And then there’s new Agriculture Chair Blanche Lincoln (R-Ark.), who will have at it too. She doesn’t have very nice things to say about cap-and-trade and is the one of the bluest of the Blue Dog Democrats. In the House, the Ag chairman was able to hold up that bill and almost kill it getting concessions his rural constituents wanted. How did Lincoln get to be Ag chair anyway? When Ted Kennedy died, Sen. Tom Harkin (D-Iowa) moved over to head the Health committee and I guess Lincoln was next in line. Too bad.

We’re still embroiled in health care reform and, unlike the president, the Congress – especially the Senate – doesn’t seem able to walk and chew gum and the same time. So it’s likely that the bill will be slow walked until the year is ended, Copenhagen over, and 2010 elections on the horizon.

We need to push hard now. Call your senators. Tell them to fight pollution by passing a strong climate bill by the end of the year.

(Sources: ClimateWire, Sierra Club, Reuters Planet Ark, League of Conservation Voters)

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)

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)

Ten key Dem Senators had problems with global warming bill -- what happens next?

(Photo of Capitol Building from Flickr and photographer Gawnesco/Scott Gawne.)

Weekly Angst: Following a 48-36 vote (60 were needed) to end debate on the Climate Security Act Friday, 10 keys Dems, 9 of whom voted with the leadership, said they had problems with the bill that would have kept them from ultimately voting for it.

In a letter to Majority Leader Harry Reid (D-Nev.) and Environment Chair Barbara Boxer (D-Calif.), the 10 said their states would be the most adversely affected by the bill, as written. Sens. Debbie Stabenow and Carl Levin (Mich.), Jay Rockefeller (W.Va.), Jim Webb (Va.), Evan Bayh (Ind.), Blanche Lincoln and Mark Pryor (Ark.), Ben Nelson (Neb.), Claire McCaskill (Mo.), and Sherrod Brown (Ohio) said they favored a cap-and-trade bill but it must “ensure consumers and workers in all regions of the U.S. are protected from undue hardship.” The following issues need to be addressed, they said:
* Make sure there’s a short-term cushion to ensure technologies will be there to help meet early emissions targets.
* Fold state laws into the federal system.
* Expand agriculture and forestry offsets.
Advocates are now looking to a new President and new Congress to get a cap-and-trade bill passed. With Sen. John Warner (R-Va.) retiring, Sen. Joe Lieberman (I-Conn.) said he is looking for a new partner to continue working on the Climate Security Act.

Next on the Senate agenda
While the global warming bill may be dead for now, Senate leadership is moving on to other energy bills: the unfinished business of passing an extension of renewable tax credits (approved by the House) and a “windfall profits” bill to tax major oil companies and address “price gouging.”

The renewable tax credit extentions (HR6049) would continue wind farm production credits 1 year and solar energy investment credits 6 years, as well as continue credits for other renewable energy sources and efficiency. The credits are due to expire the end of this year and without them renewable projects face an uncertain future.

The windfall profits bill (S3044) will probably come up first and is intended to address high oil and gasoline prices. In addition to a new tax and the repeal of tax breaks for major oil companies, the bill has a price-gouging provision and also allows the Justice Department to bring anti-trust actions against OPEC. This one is unlikely to get the 60 votes needed to avoid a filibuster and President Bush has threatened a veto.

And across the way in the House
House Speaker Nancy Pelosi (D-Calif.) rejected a GOP challenge to debate global warming on the floor of the House before the 4th of July and said any activity this year will be in Energy Chair John Dingell (D-Mich.)’s committee. She indicated chances for passing a strong bill will be much better next year.

Dingell has announced his subcommittee on Energy and Air Quality, headed by Rep. Rick Boucher (D-Va.), will hold hearings on the bill that just died in the Senate, as well as the two strong bill introduced in the House by Reps. Henry Waxman (D-Calif.) and Ed Markey (D-Mass.) Waxman’s bill calls for an emissions cut of 80% by 2050, with 100% of the credits auctioned, and Markey mandates an 85% reduction, with 94% of credits auctioned. Dingell and Boucher are expected to produce their own bill at some point.
(Sources: E&E Daily, E&E News PM)

Governors to push Congress, new president for quick, aggressive action to cut CO2 emissions

News Update: Eighteen states signed a pledge Friday to pressure the federal government to quickly adopted limits on greenhouse gases. “Washington is asleep at the wheel and we can’t wait for them,” Gov. Arnold Schwarzenegger (R-Calif.) told a climate conference at Yale that included 3 other governors, 2 premiers of Canadian provinces, and representatives from Europe, Mexico, and the Intergovernmental Panel on Climate Change. In addition to Schwarzenegger, Govs. Rod Blagojevich (D-Ill.), Jon Corzine (D-N.J.) and Kathleen Sebelius (D-Kan.), and representatives from 14 other states signed the pledge. The 18 states hold more than half the population of the United States. They include Arizona, Colorado, Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, Michigan, New Mexico,New York, Oregon, Virginia and Washington. Sebelius said the federal government should build on regional cap-and-trade agreements already in process. The Western Climate Initiative, with 7 states and 2 provinces, has a goal of cutting 15% (from 2005 levels) by 2020. The Regional Greenhouse Gas Initiative with 9 states in the East, is ready to officially launch its carbon-trading plan next year. And Illinois and several other Midwestern states recently reached agreement to cut emissions. The group expects to get more signatures (28 states either have or are close to plans to cut emissions) and counteract President Bush’s pressure to go slow, as Congress deliberates a cap-and-trade bill in June. (Sources:
Mercurynews.com , Reuters)