Boxer Releases Summary of Manager's Amendment to Lieberman-Warner Bill Senate Majority Leader Harry Reid (D-NV) has said he will to bring the Lieberman-Warner climate change bill (S. 2191) to the Senate floor for consideration the first week in June, although there are reports that this date could slip. In advance of the floor debate, Senate Environment and Publics Works (EPW) Committee Chairman Barbara Boxer (D-CA) has been working to modify the committee-approved bill to garner broader support from Senate colleagues. To that end, Sen. Boxer released (5/19) a summary of the "Manager's Amendment" she plans to offer as a substitute for the committee-passed bill. The legislative language has not yet been released.
According to the summary, highlights of the Manager's Amendment include:
New market oversight provisions that identify crucial principles to prevent market manipulation and disruption and creation of an inter-agency group of regulatory agencies to develop recommendations to implement those principles;
A new provision to automatically release additional emissions allowances into the market when their cost hits a certain price range. Those allowances will, however, be "borrowed" against future allowance issuances, as in the committee-approved version of the bill, so that the bill's original emissions caps are preserved;
- Approximately $800 billion in new tax relief to "help consumers in need of assistance related to energy costs." The details of this assistance will be developed by the Senate Finance Committee at a future date;
- A new program to encourage the construction of highly efficient commercial building and retrofits of existing buildings;
- A new program to encourage retailers and distributors to increase sales of energy efficient building equipment, electronics and consumer appliances;
- A new program to support the change-over of large, commercial truck fleets to fuel-efficient hybrid vehicles.
- Cost estimates of the value of allowances allocated in the underlying Lieberman-Warner bill as follows: $190 billion to fund worker retraining and assistance programs; $213 billion in transition assistance to carbon-intensive manufacturers; $307 billion in transition assistance for fossil-fueled electric utilities; $34 billion to oil refiners for transition assistance; $20 billion in transition assistance to natural gas processors; $911 billion in energy assistance to low- and middle-income consumers; $254 billion in transition assistance to states that rely heavily on manufacturing and coal; $171 billion in funding for mass transit; $146 billion to fund the Energy Efficiency and Conservation Block Grant program and $566 billion for states that take early action on emissions reductions;
Using the cost estimates provided in the summary, Senators who oppose the Lieberman-Warner bill will characterize it as $5.6 billion in new federal programs and spending, generated through higher costs to consumers for electricity, heating and cooling, gasoline and other manufactured goods.
Inhofe Issue "White Paper" on Climate; Bashes Lieberman-Warner Bill
Environment and Public Works Ranking Member, Sen. James Inhofe (R-OK) issued a "white paper" yesterday (5/21), blasting the Lieberman-Warner bill and claiming that it "will hurt families, jobs and the economy." In the 14-page analysis, Inhofe discusses the background and history of the Kyoto Protocol, as well as differences between the successful acid rain "cap-and-trade" program implemented in the early nineties and the "cap-and-trade" regime proposed to mitigate greenhouse gas emissions in the Lieberman-Warner legislation. The white paper concludes that S. 2191 will be one of the most costly pieces of federal legislation ever, costing "hundreds of billions of dollars" to the electrical and industrial sectors of the economy, and creating uneven costs across the county. Inhofe predicts that if the bill is enacted it will "cripple the national economy while destroying jobs and raising electricity, heating and gas costs to every single family in the country."
Barton Releases Energy Principles
On May 20, Rep. Joe Barton (R-TX), the Ranking Member on the House Energy and Commerce Committee, released a list of energy and climate principles that he believes the U.S. should follow. The Republican principles are as follows:
- Lower Gasoline Prices
- Unlocking Domestic Energy Resources Immediately
- The American Economy and American Jobs Come First
- More Clean Energy
- Get Smart about Energy Efficiency
- Share Technology with Developing World
To lower gasoline prices, Barton suggests encouraging domestic oil and gas production. He says that Chinese companies are drilling for oil fifty miles off the Florida coast, so American companies should be allowed to drill off of the U.S. shorelines, as well. Regarding the third principle, Barton says that the Republicans support reducing CO2 emissions through incentives and technology, but will oppose any regulations that hurt working people. On the fourth principle of clean energy, Barton suggests that more nuclear energy and clean coal technologies are needed, and to improve energy efficiency, he offers smart metering, combined with a "distributed generation system." Finally, in order to reduce pollution and greenhouse gas emissions, Barton suggests that the U.S. provide new technologies to the developing world.
Comprehensive Tax Extenders Bill Moves to the House Floor
On May 15, the House Ways and Means Committee marked-up and approved H.R. 6049, the Energy and Tax Extenders Act of 2008. The $57 billion bill will extend popular tax credits and deductions, such as state and local tax deductions and tuition and education expenses, as well as the research and development tax credit, some of which expired last year. The bill is expected to be considered by the full House today (5/21). NEPPA supports the bill and signed onto a full page advertisement in Roll Call, as well as a joint coalition letter, that included numerous environmental and business interests, encouraging enactment of the bill.
Of specific interest to NEPPA members, is a package of energy tax extenders included in the larger bill. It includes the Clean Renewable Energy Bonds (CREBs) language introduced by Reps. Jim McDermott (D-WA) and advanced by Select Revenue Subcommittee Chairman Richard Neal (D-MA) that public power has been seeking to modify the CREB program. Specifically, it includes a $2 billion extension of CREB bonding authority; clarifies the definition of "public power" by directing that one-third of the allocation go to pubic power utilities with an obligation to serve, one-third go to electric coops, and one-third go to other governmental entities; changes the allocation methodology to "pro-rata" for public power systems; and making other technical changes to the CREB program.
H.R. 6049 also includes the following energy incentives of interest:
- A six-year extension of the investment tax credit (ITC) for solar energy;
- Three-year extensions of the production tax credit (PTC) for energy derived from biomass, geothermal, hydropower, landfill gas and solid waste; but only a one-year extension of the PTC for energy derived from wind;
- Tax incentives for coal-fired power plants that capture and sequester carbon dioxide;
- Incentives for the production of renewable fuels such as biodiesel and renewable diesel and cellulosic biofuels;
- Incentives for energy conservation in commercial buildings and residential structures;
- Incentives to encourage energy efficient products, such as plug-in hybrids cars; and
- Tax credit bonds providing State and local government with funds to make energy conservation investments in public infrastructure and invest in research.
In an effort to garner support from Republicans and the White House, the bill is paid for by non- oil-and-gas offsets, such as the inclusion of deferred compensation for offshore corporations (raises $24 billion) and delaying the implementation of the worldwide allocation of interest (raises $30 billion). However, it is unclear if Republicans and the President will support a bill that includes these offsets either.
Provisions Supported by APPA Included in Farm Bill
After months of negotiation, Congress approved the final conference report on the farm bill, H.R. 2419, the Food, Conservation, and Energy Act of 2008. President Bush has threatened to veto the compromise agreement, but both the House and Senate have the necessary two-thirds majority votes to override a potential veto.
Of interest to NEPPA included in the final bill are provisions to ensure federal oversight of the electronic trading of oil and gas. The language will close a regulatory gap, often referred to as the "Enron loophole," which has allowed oil and gas traders to make electronic trades without any federal oversight. This lack of oversight has led to complaints about price distortions. This provision seeks to put protections into the "over-the-counter" trading markets.
In addition, the final bill includes definitional changes that will allow public power in rural areas to apply for energy related grants. In addition, the bill includes APPA supported language that will requiring a transportation study to review reliability and pricing practices of rail and other transportation sectors.
Prior to the bills approval, on May 13, APPA signed onto a coalition letter urging the House and Senate to pass the measure.
New England Congressional Staff Changes
Steven Keenan will take over as Legislative Assistant to Sen. Jack Reed (D-RI) as Kristen Sarri moves to the Senate Commerce, Science and Transportation Committee. Keenan is a seasoned staffer, who comes from the House side. He staffed Rep. Anna Eshoo (D-CA), an active member of the House Energy and Commerce Committee.
Additionally, Chris Hickling, who used to work for Rep. Marty Meehan (D-MA) and then Rep. Niki Tsongas (D-MA) doing the House Northeast Midwest (NEMW) Coalition work, also moved over to the Senate. He will staff both Sens. Reed and Susan Collins, the co-chairs of the NEMW Senate coalition.
Lastly, Reps. Rosa DeLauro (D-CT) and Chris Murphy (D-CT) have new energy aides Leticia Mederos and Jesse Young, respectively.