Domenici Will Block "Warming" Legislation If China and others Do Not Commit to Act Senate Energy and Natural Resources Ranking Member Pete Domenici (R-NM) announced on March 26 that he would block climate legislation unless China or India take similar steps to reduce greenhouse gas emissions (GHG).
"My concerns are long enough that I would kill a bill if we haven't taken some giant stride in the direction of getting China and/or India to join with this," Sen. Pete Domenici (R-N.M.) said in an interview yesterday.
Domenici plans to hold firm unless he receives a signal from the White House to press developing nations into their own emissions reduction commitments. In a letter sent Friday, Domenici encouraged President Bush to seek additional commitments from China during Premier Wu Yi's upcoming May visit to Washington. Other examples of commitments that could win his support include a voluntary agreement or international treaties, a Domenici spokesman added.
China's emissions are reportedly on track to surpass those of the United States by early as this year which is driving the Senate Energy Committee's ranking member to express concern that a new U.S. program could do little to address climate change and simultaneously harm the domestic economy. Domenici has long been considered a pivotal figure in moving climate change legislation.
On a related note, American Electric Power (AEP) and the International Brotherhood of Electrical Workers (IBEW) are floating a plan that would require any developing country that has not capped its emissions to purchase credits if it wants to import goods into the United States.
House and Senate Hearings on "Role of China & India"
On Monday, March 26, 2007, the Senate Energy and Natural Resources Committee held a two-hour roundtable discussion on the European Union's Emissions Trading Scheme (ETS). During the discussion Sen. Domenici asked whether the European system encouraged China and India to participate and was told that it does not, but that it does allow credits to be traded on the international market.
In another hearing on March 27, the House Energy and Air Quality Subcommittee is scheduled to examine the role of China, India and other developing nations with regards to global warming.
Markey's Select Climate Committee Holds First Hearing
Today (3/27), Rep. Ed Markey (D-MA) will lead his first hearing as Chairman of the new House Select Committee on Energy Independence and Global Warming. He said his Committee will focus on three key areas: reducing the threat of global warming, cutting domestic use of foreign oil and creating jobs.
Markey is reportedly planning to hold additional hearings on climate change around the country, as well as internationally. Rep. Jim Sensenbrenner (R-WI), an opponent of climate change legislation, is the panel's ranking member.
Gore, Utility Executives Testify on Capitol Hill
On Tuesday, March 21, Former Vice President Al Gore testified before a joint hearing of the House Energy and Commerce and Science Committees, then at a hearing before the Senate Environment and Public Works Committee, regarding his views on climate change. At both events, Democrats generally praised Gore's efforts and questioned his strategies for implementing legislation. Republicans questioned him about the costs associated with his plans and how they would be distributed. Republicans also highlighted recent statistics that show that the Kyoto protocol has increased energy costs in Germany by 30-40%.
Gore underlined the need for Congress to act immediately to "cap" and then drastically reduce greenhouse gas (GHG) emissions. He made several recommendations:
Freeze CO2 emissions now;
- Reduce emissions by 90% by 2050;
- Use tax code to reduce taxes on employment, while increasing them on pollution, to make the tax "revenue neutral";
- Move toward a new global treaty on climate change;
- Impose a moratorium on the construction of coal-fired power plants that cannot sequester carbon;
- Create an "Electranet" or "smart grid" which will allow any customer to install solar panels and wind turbines on their properties and sell the power back to the grid;
- Ban the use of incandescent light bulbs and;
- Establish a "CONNIE MAE" financing entity to fund building improvements that would reduce GHG emissions.
On March 20, the House Energy and Commerce Subcommittee on Energy and Air Quality held a hearing to receive testimony from several utility CEOs on their climate change perspectives. The witnesses were: Jeffrey Sterba, PNM Resources; James Rogers, Duke Energy; David Sokol, MidAmerican Corporation; Michael Morris, AEP; Jackson Reasor, Old Dominion Electric Cooperative; and Milton Lee, CPS Energy. While the CEOs were in general agreement as to the need for climate change legislation, they differed on how much emissions should be cut and the timeline that should be set for their reduction.
Most of the witness questioning from Democrats revolved around what the Committee can do to assist coal-burning utilities to reduce their CO2 emissions. The witnesses had the same general viewpoints, which were to:
Provide certainty so that utilities can plan to reduce emissions under a cap-and-trade or similar program;
- Set timelines for research and development;
- Promote nuclear energy as a viable alternative;
- Adequately fund carbon sequestration research and development; and • Provide incentives for energy efficiency improvements.
Dingell States Principles on Climate Change
In a March 16th interview with EnergyWashington, House Energy and Commerce Committee Chairman Dingell (D-MI underlined three climate change principles which he feels must be addressed in any such legislation. Dingell said:
Any bill must apply to all sectors of industry equally, including automakers that he represents in his district outside of Detroit;
- The U.S. needs to get other countries, especially developing ones, on board to reduce GHG emissions. Efforts to curb climate change are futile if China and India continue to increase their emissions while the U.S. is attempting to reduce them;
- Fuel economy for light duty vehicles can be improved, among other strategies.
Dingell added that no decisions have been made regarding a cap-and-trade program and left the door open to other ideas.
Democrats and Republican leaders of the Committee have sent separate letters to industry leaders and trade association heads, soliciting ideas on climate change to help guide efforts to draft legislation.
DOI Study Find Wind/Wave Energy Has Minimal Environmental Impact
The Department of Interior recently released an environmental impact statement (EIS) that says that wind/wave turbines would have a "negligible to minor" impact on the local environment.
The DOI EIS focused on how to streamline the process for evaluating alternative energy projects along the Outer Continental Shelf. The DOI rules will help develop easements and right of way rules for eventual wind and wave power projects offshore.
Transmission Plan to Increase Renewables Adopted in Four States
According to the American Wind Energy Association, the states of California, Colorado, Minnesota and Texas are planning to implement a "zone" approach to integrate development of new renewable resources into transmission planning. Motivated in part by the adoption of renewable portfolio standards (RPSs), these states have adopted provisions that will require utilities to identify zones for likely renewable resource development, plan transmission needed to move power from those zones to the grid and apply to state regulators for upfront cost recovery of the transmission investment.
Quoted in Energy Washington, AWEA spokesman Rob Gramlich said that encouraging state transmission planning to include renewable zones will ensure that needed transmission is available ahead of construction of the renewable projects. Renewable advocates argue that the lack of adequate transmission is hampering optimal development of renewable resources and will make it more difficult to develop a strategy to limit emissions of greenhouse gases.
Gramlich also suggested that a "zone " approach could be adopted on a federal level, as part of the Department of Energy's current process to identify national interest transmission corridors. Renewables advocates may also seek inclusion of such a provision in federal RPS legislation.
FERC Approves NERC Reliability Standards
To assure reliability of the nation's bulk power system, FERC finalized 83 reliability standards proposed by the North American Electric Reliability Corp (NERC). The March 15 ruling adopts, for the first time, mandatory and enforceable reliability standards. Chairman Kelliher noted that now the "U.S. is better prepared to meet reliability challenges this summer." The final rule approves 83 of 107 proposed reliability standards. Additionally, six of eight proposed regional differences and the Glossary of Terms submitted by NERC were adopted.
The new reliability standards will apply to owners, operators and users of the "bulk power system designated by NERC through its compliance registry procedures." Violations of the standards will be penalized through monetary and non-monetary actions. The most serious violations will be responded to in an initial period to end December 31, 2007. The final rule will take effect 60 days after Congress receives the notice of the rule or after the rule is published in the Federal Register.