Global warming debate in Senate set for next week

(Photo of Capitol Building from Flickr and photographer Charles Pence.)

Weekly Angst: Prepare to turn on C-Span next week and watch the debate over the Senate global warming bill. It should be revealing.

Environment Committee Chair Barbara Boxer (D-Calif.) came up with a “substitute” bill (S. 3036) last week, which incorporates the one by Lieberman and Sen. John Warner (R-Va.), but tries to meet some objections to garner more support. It includes, for example, a $955 billion fund (from now through 2050) to pay down the federal deficit, to make the bill budget neutral (if not carbon neutral). The debate is expected to start in the early evening June 2, with a cloture vote that even staunch opponents are likely to go along with – they want a debate too. Lieberman and Warner have signed off on Boxer’s substitute and John Kerry (D-Mass.) and Olympia Snowe (R-Me.) are co-sponsors.

It should be a zoo. This topic elicits strong feelings because global warming is an enormous issue that threatens the planet but also has implications for industry, as it calls for a seismic shift from fossil fuels to carbon-free (or at least low-carbon) energy. The bill sets up a cap-and-trade system, which puts an ever-lowering cap on greenhouse gas emissions and auctions or gives away credits that businesses can trade depending on whether they meet their emissions targets. If they don't, they must buy credits from those who do.

All kinds of amendments planned, from one by Lieberman and Warner to include more nuclear power, to one by Republicans to return revenue from the auction of carbon credits to the taxpayers as tax cuts. Sen. Joe Biden (D-Del.) wants to tell the U.S. to engage in global climate negotiations for real, and a likely Republican amendment will ask for inclusion of offshore drilling for oil and gas. Dems have been alerted, too, about planned GOP amendments specifically designed to embarrass them and their likely presidential nominee, Barack Obama.

Environmental groups (2 dozen of them) released a statement late last week saying the bill still “needs to be strengthened to ensure it will meet the reductions science dictates” (at least 80% cut by 2050), which it does not. Boxer did not increase the target, which is 71% by 2050, but really only 66% because it does not include all greenhouse gas emissions. It's not clear to me if there’s been any change in the percent of credits auctioned off, which start as 26.5% in 2012, going up to 79% in 2031. Bur since there’s been no mention of it, I assume it hasn’t changed much. That percentage is deemed too low by most environmentalists, because it means more free credits to polluters and less money bolster renewable energy. Many want 100% auctioned.

Where the revenue will go
The Boxer version of the bill lists specific payoffs to different segments from the bill’s revenues, which will come from auction of credits:
• $911 billion for consumers for help with increased energy costs and energy efficiency projects. Most ($850B) would help with energy costs.
• $231B in assistance to steel, glass, aluminum, rubber and paper companies to make needed changes -- they're seen as the industries that will have the most trouble adjusting.
• $566B for states to deal with GHG cuts.
• $307B for electric utilities to revamp.
• $150B for renewable energy companies.
• $68B to the auto industry to retool for hybrids, plug-ins, electric and fuel-cell vehicles.
• $250B for adaptation to climate change, largely for coastal states.
• $288B for wildlife adaptation.
• $560B for a fund states can access if they switch over from their own emissions programs to the federal one.
(All these amounts are spread over 40 years)

Free credits for fossil fuels have shrunk in the new version but more credits will be given for capture and storage of carbon dioxide. But if I’m reading this right, there is WAY too little going to renewable energy like wind, solar and geothermal. We need to be virtually switched over to them from fossil fuels by 2050. So why so stingy? Could it be that the lobbyists for these fledgling industries don't have the money to spread around that oil, gas and other mature industries have? You betcha.

It looks like nuclear energy will be one of the winners in this new version. The bill now provides $92 million in incentives, on top of what the nuclear power industry already gets from the government. And a successful Lieberman-Warner amendment would bring them even more. Nuclear, which now provides 8% of U.S. power, is a huge bone of contention with many environmentalists who don’t like the radiation involved and say "no nukes, no way." Even those who think some nuclear plants might be necessary to wean us off fossil fuels -- if safety and disposal problems can be solved -- would far rather see money go to really clean sources like wind, solar, geothermal and wave action.

Even if this bill should pass the Senate, it's unlikely the House will act before the end of the year. And this president would not sign a bill that would satisfy anyone who sees a need for urgent change. So the debate is probably just the first salvo in a battle that may be more successful with the next Congress and next president. But it still should be interesting to watch it unfold.
(Sources: Greenwire, ClimateWire, E&E News PM)

Take action: Send an e-mail to your senators.

House passes bill to extend renewable energy tax credits, despite White House veto threat

(Photo of solar panels from Flickr and photographer kqed quest.)

Washington Report: The House of Representatives voted 263-160 Wednesday to approve yet another bill extending tax incentives for renewable energy such as wind and solar. But the White House is threatening to veto the $59 billion tax package, not so much on the credit extensions as the means to pay for them. The vote was largely along party lines. Renewable energy industries are eager to see extension of the incentives, due to expire in December, in order to maintain momentum. A House bill that included extensions paid for by repeal of oil and gas breaks, passed late last year but stalled in the Senate. Then earlier this year the Senate attached renewable incentives to a housing bill, but without any means to pay for them. The House, whose leaders want all expenditures paid for, added revenue from tax changes for offshore and multinational businesses to this bill. And that is the part President Bush objects to most. The bill extends production credits for wind till the end of 2009 and for geothermal and biomass for 3 years, as well as investment credits for solar for 6 years. It includes a $4,000 credit for residential solar power and $3,000 or more for buying plug-in cars. House Dems and Republicans disagree about the bill’s chances in the Senate. Meanwhile, House Republicans unveiled their own energy agenda, which would increase incentives for domestic production of fossil fuels, alternative fuels and nuclear energy, in addition to renewables and efficiency. (Sources: Greenwire, E&E News PM)

House OKs renewable energy tax credits

(Photo of windfarm from Flickr and photographer Alessandro Ronchi)

Congressional Round-up: The House voted 236-182 Wednesday to approve renewable energy tax credit extensions, funding them by eliminating tax breaks for 5 big oil companies. This is the fourth time they approved such a bill in the past year. Now comes the hard part. A similar bill has failed to get the 60 votes needed in the Senate to avoid a filibuster. That is likely again, though one tactic under discussion is to try to get some of the package included in the final budget reconciliation bill. The extensions are needed because current ones expire at the end of 2008, and already investment in renewables is slowing down. House Speaker Nancy Pelosi (D-Calif.) warned that a failure to extend the credits could cost the country 116,000 jobs. The Senate could bring up the bill as soon as next week. The House bill (H.R. 5351) provides:
• A 3-year extension on investment credits for wind, geothermal and other renewables.
• An 8-year extension of incentives for commercial solar energy and 6 years for residential, doubling the top credit for homeowners to $4,000.
• Incentives for plug-in hybrids, energy efficiency and installation of pumps for fuel with 85% ethanol.
The GOP and White House object to rescinding $13.6 billion in tax cuts for integrated oil companies. They say it will thwart exploration and raise prices for consumers. Dems said with oil over $100 a barrel, the 5 companies affected are making record profits and will lose less than 2% of those profits in the next 10 years. Call your Senators to approve this bill at (202)224-3121. Also, check to see how your Rep voted. (Sources: Washington Post, E&E Daily, E&E News PM, Sierra Club)

McCain nets zero on environment from Conservation Voters
Many see Sen. John McCain (R-Ariz.), the presumptive GOP nominee for president, as pro-environment. The League of Conservation Voters disagrees. McCain scored the lowest possible grade, a zero, on LCV’s 2007 Scorecard. Democratic contenders Sen. Hillary Clinton (D-N.Y.) came in at 73, and Sen. Barack Obama (D-Ill.) at 67. McCain, who introduced global warming legislation back before it was popular, has twice failed to show up for a vote on renewable tax credit extensions, where his vote could have made the difference. LCV says it’s a pattern and he missed all critical environmental votes last year. His lifetime score is 24. To see how your elected representatives scored, check the LCV scorecard. (Sources: Sierra Club, LCV)

New renewable tax-credit bill in House

Congressional Round-up: The House last week introduced a bill to extend production tax credits, funded in part by the repeal of oil tax benefits. The credits are due to expire at the end of the year, causing uncertainty for renewable energy industries. This bill is very similar to the one passed last summer by the House, but stifled in the Senate by 1 vote. It’s questionable whether the bill could pass the Senate in its current form. It includes:
• Extension of credits for wind, biomass, geothermal, small hydroelectric, landfill gas and trash combustion facilities through 2011, with a cap of 35% of the cost after 2009,
• Extension of solar energy and fuel cell investment tax credits for eight years,
• An end to deduction eligibility for the 5 larges oil companies,
• A 6% cap on benefits for smaller oil companies,
• A new credit for plug-in hybrid cars,
• Extension of tax credits for domestically produced cellulosic ethanol and biodiesel,
• A request that the National Academy of Sciences analyze current science on the production of biofuels and the domestic impact of a dramatic increase.

Proposal would allow power plants near national parks
Rep. Henry Waxman, (D-Calif.), chair of the House Oversight Committee, has urged the EPA to reject a proposal that would make it easier to build power plants near national parks. Waxman told EPA Administrator Stephen Johnson the proposed change in the New Source Review rules would violate the Clean Air Act. He said EPA technical experts acknowledged the change would allow “significant degradation” of the air in parks and national wilderness areas. He gave Johnson until March 5 to say why he ignored the advice of his staff. (Source: E&E News PM)

e-mailbag: Bob R. of Chicago writes, “Despite his admitted support and even sponsorship of environmental legislation, [John] McCain has too many constraints related to his conservative perception of reality to lead the nation effectively against the onslaught of global warming.”

Under fire, utilities canceling coal plants

News Update: Because of regulatory uncertainty and opposition from environmental groups, electric utilities are backing away from plans to build new carbon-spewing coal-fired plants. Coal now powers about half our electricity and is the dirtiest form of power. Last year 53 plants were stopped or put off. Regulators denied permits in Washington and Kansas. TXU in Texas cancelled 8 of 11 planned plants as part of a purchase agreement. Xcel Energy in Colorado closed 2 coal plants and is substituting natural gas, wind, solar and nuclear, with a goal of cutting 10% of CO2 by 2015. And TVA is building a nuclear plant instead of coal in Tennessee. Still, some new coal plants are on track in states like Indiana, Mississippi and New Mexico. Environmental groups urge no more coal plants until there is a viable “clean coal” option. (Source: Associated Press)

Diesel-electric hybrid buses picking up in American cities
Only 2-3% of municipal buses on the road are hybrids, but 22% of bus orders were for hybrids, the 2007 survey by the American Public Transportation Assn. found. Washington, D.C., ordered 900, New York City 850, Philadelphia 480 and Minneapolis-St. Paul 300. The mostly diesel-electric hybrids are priced at least $100,000 above standard diesel buses. But fuel economy was measured 27% higher in Seattle and 34% higher in NYC, says the National Renewable Energy Laboratory. Federal money is available to pay for up to 90% of hybrid buses, compared with 80% for conventional buses, according to the non-profit Advanced Energy. Some smaller cities testing the buses include Ann Arbor, Mich., Asheville, N.C., and Evansville, Ind. (Sources: USA Today, Greenwire)

Now you can google ‘renewable energy R&D division’
Google has announced it will spend tens of millions of dollars this year and hundreds of millions during the next decade on clean energy, both for its own facilities and to create a niche in renewable R&D. Aware that $2.4 billion in venture capital went into the sector in 2007, Google is ready to throw its brainpower and creativity behind renewable energy, especially solar, wind and geothermal. Its goal is reduce use of coal in the U.S. It’s better to work on breakthroughs and help lower the cost of renewables to consumers than buy offsets for questionable projects, the company said. (Source: Greenwire)

Geothermal energy in U.S. will double with Western projects
When 86 geothermal projects in the American West are completed, geothermal capacity will more than double to 6,300 megawatts, enough to light 6 million home, according to the Geothermal Energy Assn. The projects are benefiting from a combination of state renewable electricity standards and federal production tax credits. The association pressed Congress to extend the tax credits, due to expire the end of this year. (E&E News PM)

Ultimate outsourcing – modules for hotels made in China
British budget hotel chain Travelodge is putting up what is says is the first recyclable hotel. The 120-room structure will be made from pre-built steel container-like crates shipped from China that are stacked and bolted together. In the future, the hotel chain would like the Chinese to decorate and furnish the rooms as well. This hotel can be disassembled and moved and could be a model for sporting events and festivals, Travelodge said. It takes 12 weeks to assemble and could be removed after the event is over. (Source: PlanetArk)

(Coal plant photo courtesy of Flickr and Bruno D. Rodriguez)