Energy Bill Discussions Continue, Many Questions Remain Closed-door discussions between key House and Senate Members and staff continue in an effort to reconcile differences between the two chambers' energy bills. Members are meeting to strategize on the process and to discuss the controversial issues at the "10,000 foot level." Key leadership and committee staff continue to meet daily to discuss the details of key provision, such as a renewable fuels mandate, renewable portfolio standard, vehicle fuel economy standards and tax incentives.
In the meantime, Senate Republicans continue to be divided on whether to support a formal energy conference or continue to oppose and allow Democrats to craft the bill, which some believe may have a hard time securing the 60 votes needed to pass in the Senate and/or may be vetoed by the White House.
In the one camp are those like Sens. Kay Bailey Hutchison (R-TX) and John Cornyn (R-TX), who are blocking the appointment of conferees because they argue tax provisions in the legislation would have a negative impact on oil companies. They also strongly oppose Senate language that mandates an aggressive renewable fuel standard. The other faction of the GOP, which includes the Chairman of the Senate Energy and Natural Resources Committee, Pete Domenici (R-NM), supports moving to a formal conference, because they want to be involved in the discussions and want a final bill the President can sign. Domenici's camp has argued that they have more influence on the final product if they participate in a fair and bi-partisan conference committee. It remains to be seen which faction will prevail.
Congress is scheduled to recess for the Thanksgiving Day recess around November 17, and will only return on a limited-basis during the month of December to consider appropriations bills and/or conference reports. It is possible a conference report on the energy bill could be an item for consideration by both chambers during the month to December, although time is running short.
Lieberman-Warner Hold Hearing on Climate Change Bill
On October 25, Senate Subcommittee on Private Sector and Consumer Solutions to Global Warming and Wildlife Protection Chairman Sen. Joe Lieberman (I-CT) held a legislative hearing on the climate bill that Lieberman and Sen. John Warner (R-VA) introduced, entitled "America's Climate Security Act of 2007."
The bill establishes a federal program to reduce carbon dioxide emissions between 2007 and 2050. The greenhouse gas emissions cap targets electric power, transportation and manufacturing sources that account for 75% of greenhouse-gas (GHG) emissions. The cap on emissions starts in 2012 (based on 2005 emission levels) and then lowers it gradually, so that it reaches 1990 emission levels in 2020 and then reduces to 65% below 1990 emissions levels by 2050. The Act allows companies to trade, save and borrow emission allowances and allows them to generate credits when they stimulate non-covered businesses, farms and others to reduce their GHG or capture and store the emissions.
The tone of the Subcommittee hearing was more bi-partisan than previous hearings, perhaps because Warner has gotten involved in the process. Chairman Lieberman discussed the importance of acting quickly and boldly to address global warming. Warner said that the Supreme Court has spoken on climate change and it is now incumbent upon the legislative branch to take action on this issue.
The more conservative Senators on the Subcommittee raised their general opposition to the bill, on the basis that nothing is being done with regard to China and India and that the costs of a cap-and-trade system are unknown and likely very large. Concerns were also raised about jobs going overseas and protecting vulnerable families who will be hurt by potential rising costs if this bill is enacted.
Sens. Alexander (TN) and Isakson (GA) both discussed the fact that the bill does not include a role for nuclear and they do not see how an emission reduction program can work without this type of generation.
Full Environment and Public Works Committee Chairman Barbara Boxer (D-CA) is pushing for a subcommittee vote on the bill this week, prior to the United Nations meeting on climate in December in Bali, and the subcommittee has tentatively scheduled a mark-up for this Thursday, November 1. It remains to be seen if there are enough votes in Subcommittee to pass the bill. Sen. Max Baucus (D-MT) recently announced he would support it (as the bill gives allocations to Montana farmers and forest interests), and Lieberman and Warner are now working to secure one more vote. Currently, they are targeting Sens. Frank Lautenberg (D-NJ) and Bernie Sanders (I-VT).
Even if the bill does pass through subcommittee and full committee, which is significant, it is still doubtful that a climate change bill can get the 60 voters need to pass the full Senate this year.