7-29-08 NEPPA e-Weekly: A Summary of Recent Legislative Activities of Interest to NEPPA Members Senate to Try Again on Energy Extenders Bill, Movement on Energy Speculation Bill Possible
Tomorrow (7/30), the Senate is expected to vote on a procedural motion to consider S. 3335, the Jobs, Energy, Families, and Disaster Relief Act, introduced late last week by Finance Committee Chairman Max Baucus (D-MT), which includes the expiring energy tax incentives. Sixty votes will be needed to advance the bill, and while more then the previous 54 votes are expected, many think the Democrats will fall short of super-majority needed. Senate Majority Harry Reid and Minority Leader Mitch McConnell are working to forge an agreement to advance the bill. Of interest to NEPPA, included in the $135 billion bill are renewable and energy efficiency tax incentives, including $2 billion in Clean Renewable Energy Bonds (CREBS), among other things. To date, Republicans have opposed the "offsets" to pay for the extensions included in the bill.
Adding to the already politically-charged environment surrounding the extenders bill, is the Senate stalemate on a Democratic energy bill that would expand regulation on excessive oil speculation, which many blame for inflating prices of crude oil and gasoline. However, according to press accounts, the Senate this week appears close to a breakthrough on the stalled energy legislation, as Majority Leader Harry Reid (D-NV) said Republicans could offer four amendments, including a vote to lift the current moratorium on offshore oil drilling. Republicans are filibustering the bill, essentially bringing the Senate to a halt. Last week Democrats failed to reach cloture on the speculation bill, and Republicans are filibustering the bill and refusing to allow the chamber to move onto other topics, unless they are allowed an "up or down vote" on offshore oil drilling before the August recess. Minority Leader Mitch McConnell (R-KY) indicated that Reid's offer is a positive step in ending the stalemate, but need time to confer with his Republican colleagues.
LIHEAP Boost Fails in Senate
On July 26, the U.S. Senate voted against moving forward with legislation that would have nearly doubled Low Income Home Energy Assistance Program (LIHEAP) funding, to $5.1 billion. Senators voted 50-35 to limit debate on the bill, but fell short of the 60 votes needed to move to final passage. The White House threatened to veto the bill on grounds LIHEAP operates mostly in the winter and the heating season is over. It said a contingency fund held $100 million to cover emergencies through the end of FY 08.
"At a time when the cost of home heating fuels and electricity are soaring, and when the economy is in a decline, millions of Americans are finding it harder and harder to stay warm in the winter or cool in the summer," said Sen. Bernie Sanders (I-VT), the legislation's sponsor. We will continue to fight for this," he said. "We have an energy emergency. Given the escalating cost of home heating fuels, if we don't dramatically increase funding for the home energy program, senior citizens on fixed incomes, the disabled and low-income families with children will go cold this winter."
Northeast "Green Exchange" to Trade Carbon Allowances
Starting in late August, the New York Mercantile Exchange (NYMEX) will offer futures contracts for carbon dioxide (CO2) allowances under the coming Regional Greenhouse Gas Initiative (RGGI), a CO2 cap-and-trade program for 11 Northeast states. The Green Exchange first announced the coming futures market in May. The new trading products will be the first-ever exchange tradable CO2 allowances created by a U.S.-based government compliance regime.
The Green Exchange will offer CO2 allowances futures contracts for the next day's trading starting August 24. Contracts will be available for electronic trading on the CME Globex trading platform. Physical delivery of the contracts will be administered by RGGI's CO2 Allowance Trading System, NYMEX officials said. The timing means the Green Exchange will be offering futures trading a full month before the first system-wide RGGI allowance auctions begin September 25.
"This allows the affected sources to begin to get some price transparency before the auctions start," Tom Holleran, vice president for marketing at NYMEX and a Green Exchange principal, said in an interview. The Green Exchange marks North America's first entry into carbon trading under government mandate.
Chairman Bingaman to Revisit National RPS Next Year
Expecting a larger Democratic majority in Congress in 2009, Senate Energy and Natural Resources Chairman Jeff Bingaman (D-NM) said in a July 29 appearance on C-SPAN that he wants to move another major comprehensive energy bill next year and is considering whether changes are needed to the expanded biofuels mandate signed into law late last year. His spokesperson added that he would also be advancing a national Renewable Portfolio Standard (RPS), requiring utilities to generate a portion of their energy portfolio from renewable resources. Bingaman had called for a 15 percent RPS by 2020 shortly after Democrats took control of Congress in the 2006 elections. The provision, however, lacked enough support to be included in the Energy Policy Act of 2007.