Outlook for "Energy Independence" Bill
Members of Congress remain on Thanksgiving recess this week, but staff for the energy committees and leadership is working to complete a slimmed-down version of the "energy independence" bill in the hope that it will be brought to the House floor when Members return the first week in December. If successful, the bill/conference report would then move to the full Senate for consideration.
The bill will likely NOT contain a federal Renewable Portfolio Standard (RPS) or a tax title, as both apparently are too controversial to win the 60 votes needed in the Senate to avoid a filibuster.
The House bill contains an RPS that exempts federal, municipal and cooperative utilities. The Senate bill is silent on an RPS, but Senate Energy and Natural Resources Committee Jeff Bingaman (D-NM) still supports a program that would draw in municipal and cooperative utilities that sell more than 4 million megawatt hours of energy per year at retail. Despite Bingaman's strong support for the RPS, however, it seems he still has not been able to attract the votes needed for it to pass in the Senate.
The tax title in the House bill is controversial because it gives tax incentives to a range of renewable energy technologies, and "pays for" those incentives by eliminating existing incentives for the oil and gas industry; there is no tax title in the Senate bill. The Senate Finance Committee approved a package that "pays for" renewable incentives in a similar fashion, but it was prevented from becoming part of the bill by Senators from oil and gas states. This has prompted a number of Senators to say that they will not vote for the bill if the House tax title is included.
Still part of the bill are provisions that would mandate an increase in: production of alternative fuels, Corporate Average Fuel Economy (CAFE) standards for vehicles, and efficiency standards for additional large appliances, among other provisions.
Decisions about the fate of the bill are being made primarily by the offices of the House Speaker and Senate Majority Leader. Although things are still in flux, we believe that if the leadership wants to pass any "energy independence" bill this year, it will have to drop the more controversial matters, like an RPS and a tax title, and move to pass a narrower package.
Senate Completes Climate Hearings; Dec. 5 Markup Scheduled
During the week of November 12, the Senate Environment and Public Works (EPW) Committee held two more legislative hearings on S. 2191, "America's Climate Security Act," sponsored by Sens. Joe Lieberman (I-CT) and John Warner (R-VA). Despite complaints from committee members that she is moving too quickly, EPW Committee Chairman Barbara Boxer has scheduled a full committee markup on the bill for December 5.
The tone at all three hearings was similar with the more liberal Democratic Senators, like Sens. Bernie Sanders (I-VT) and Amy Klobuchar (D-MN), stressing the urgency to take more aggressive action and the more conservative Republicans, like Sens. James Inhofe (R-OK) and Kit Bond (R-MO), pointing out the harm the bill could have on the U.S. economy. Sens. Lieberman and Warner have tired to moderate the differences between the more partisan Members of the committee.
The Subcommittee-approved Lieberman-Warner bill would establish a federal program to reduce greenhouse gas (GHG) emissions by 63% by 2050. Under the program, the Environmental Protection Agency (EPA) would allocate emissions allowances to electric power, transportation and manufacturing sources that, taken together, account for 75% of those emissions. The "cap" on emissions would be set at 2005 emissions levels for 2012 and ratchet down over time, to 19% of 2005 levels by 2020 and 63% of 2005 levels by 2050.
Even if the bill passes out of committee next month, it is not likely to advance on the Senate floor next year, given an expected filibuster by Sen. Inhofe and President Bush's opposition to mandatory emissions controls.
House Action "On-Hold"
Although earlier this year House Energy and Commerce Committee Chairman John Dingell (D-MI) and Energy and Air Quality Subcommittee Chairman Rick Boucher (D-VA) stated they would begin work on a comprehensive climate change bill in the fall, they have reversed coarse and now say they will not move forward on climate issues until a final "energy independence" bill is completed. Therefore, no House climate change action will take place prior to adjournment.
Kelliher re-Nomination to FERC Held-Up in the Senate
Federal Energy Regulatory Commission (FERC) Chairman Joseph Kelliher's re-nomination hangs in the balance as the Senate attempts to conclude the first session of the 110th Congress. Kelliher must be re-confirmed by the Senate before it adjourns for the year. If that does not happen, the President could make a "recess appointment," which would only last until the end of the next session - not for a full five-year term.
In a surprise procedural move by Senate Majority Leader Harry Reid (D-NV), late last week, the Senate did not "officially" adjourn for the two week Thanksgiving recess, but, instead, stayed in "pro forma" session. This was done to block the President's ability to make recess appointments. Kelliher was not the primary reason for this unusual maneuver; it had to do with the controversial appointment of James Holsinger as surgeon general. Holsinger has met criticism from gay rights organizations and opposition from key Senate Democrats.