"Energy Independence" Bill May Advance to Conference
House Speaker Nancy Pelosi has called a meeting for today (10/10) with all of the chairmen of committees who have contributed to the House "energy independence" bill. At that meeting she will outline how she would like to proceed to conference with the Senate.
In the past, Speaker Pelosi has decided to short-circuit conference committees and it is possible that she could decide to do this again. Earlier this year, when the House and Senate could not agree on provisions in the lobbying reform bill, House and Senate Democratic leadership decided to by-pass a contentious conference committee by striking a deal amongst themselves and sending new, identical bills to both chambers.
The Speaker could tell the chairmen that she will accept certain Senate language or that only certain Members will be appointed as conferees. At this time, we do not have a clear indication as to which direction she will go with respect to the process or substance of controversial issues, such as the Renewable Portfolio Standard (RPS).
Both the House and Senate have passed differing versions of the energy bill. While they are similar in some respects, they differ on key controversial issues. A key difference is that the House bill contains an RPS (with an exemption for public power and coops) and tax title. The Senate bill does not contain either. Instead, the Senate bill raises automobile efficiency standards, known as "Corporate Average Fuel Economy" (CAFE) Standards and includes a mandate for production of alternative transportation fuels, whereas the House bill does not.
Last week, prior to adjourning for a week-long Columbus Day recess, Senate Majority Leader Harry Reid (D-NV) planned to overcome a procedural hurdle by making a motion to go to conference on the "energy independence" bill by "unanimous consent," but then decided to wait until after the recess to proceed. It is possible that Republicans could block the motion, based on concerns over the tax component, and Reid has indicated that he will not attempt another motion.
The procedural and substantive hurdles that the bill faces, including those described above in the Senate are adding credence to rumors that, for the sake of expediency, Democratic leadership might choose to depart from normal procedures.
Demands Mount as Senators Draft Warming Bill
Sens. Joe Lieberman (I-CT) and John Warner (R-VA) are beginning to understand the difficulty with drafting compromise climate change legislation. As they try to win enough votes in drafting the bill, they have met substantial criticism. Progressive environmental Senators have warned that the bill should avoid any loopholes that favor U.S. industry, but in doing so, the Lieberman and Warner proposal could lose the support of moderates and conservatives concerned about costs associated with a new climate policy.
Lieberman said, "We can do it. We're looking for that spot that represents progress but keeps everybody involved." Lieberman believes he is close to garnering the 60 votes required to move climate change legislation through the Senate. He said his first goal is to get the four necessary votes to move the bill out of the Senate Environment and Public Works (EPW) Private Sector and Consumer Solutions to Global Warming and Wildlife Protection subcommittee, of which he is chairman. Lieberman and Warner must balance the interests of the moderates in the committee, such as Sen. Max Baucus (D-MT) with more liberal members, such as Sens. Frank Lautenberg (D-NJ) and Bernie Sanders (I-VT).
The Lieberman/Warner effort suggests limiting emissions to 2005 levels beginning in 2012, followed by a 10 percent cut in 2020 and a 70 percent reduction by mid-century. The plan would cover emissions that represent about 80 percent of total U.S. emissions each year. The bill is expected to be introduced before the end of the month.
Farm Bill Includes Rural Renaissance Bond Program
On October 4th, the Senate Finance Committee approved a tax title to the Farm bill, called the "Heartland, Habitat, Harvest and Horticulture Act of 2007." This bill will be added to the Senate Agriculture Committee's farm bill, once approved by the Committee.
The farm bill tax title does not contain an extension and expansion of the Clean Renewable Energy Bond (CREB) program. However, it does contain a provision to create a new category of tax credit bonds, called "Rural Renaissance Bonds."
The Rural Renaissance Bond provision defines rural electric coops and "governmental bodies" as qualified issuers of the tax credit bonds. Qualified projects include utilities, broadband access and rural telephone programs. The program has a cap of $400 million and the bonds must be issued by December 31, 2008.