Climate Bills and a Green Economy

Boxer, Kerry Set to Introduce Cap-and-Trade Bill

September 28, 2009

E&E News - Ending some nine months of closed-door deliberations, Sens. Barbara Boxer (D-Calif.) and John Kerry (D-Mass.) will release global warming legislation Wednesday that they hope will be the vehicle for broader Senate negotiations and an eventual conference with the House.

The bill's authors said last week that they expect to start hearings early next month on the bill, with a markup in Boxer's Environment and Public Works Committee to follow soon thereafter. They also acknowledged that their legislation is just a "starting point" in a bid to win over moderate and conservative Democrats, as well as Republicans.

"I hope what we've done is constructive and well-received," Kerry, the chairman of the Foreign Relations Committee, said Thursday. "I have no pretensions, and neither does Barbara, that this will be the final product. It is a starting point, a commitment, full-fledged, across party lines to do what we need to do to protect the planet for the next century."

The Boxer-Kerry bill will build in large part off H.R. 2454, legislation approved in June by the House following several marathon months of negotiations that involved lawmakers representing coastal and industry-heavy districts. Exactly what is the same in the two bills remains to be seen. As for differences, Senate Democratic aides say they expect the legislation to divert from the House bill's 17 percent emissions target for 2020 and go with an even more aggressive 20 percent limit. The bill also will stay silent on exactly how the Senate should divide up emission allowances.

At least five other Senate committees are also expected to contribute to the climate debate. The Foreign Relations and Agriculture committees are preparing language without convening a markup.

Commerce Chairman Jay Rockefeller (D-W.Va.) said he will hold votes on his pieces of the global warming bill. And the same goes for Finance Chairman Max Baucus (D-Mont.), who last week told reporters that provisions on international trade and the allocation of emission allowances would be marked up provided Majority Leader Harry Reid (D-Nev.) says the bill is "clearly moving."

Sen. Jeff Bingaman (D-N.M.) has already approved legislation (S. 1462) out of the Energy and Natural Resources Committee that includes a nationwide renewable electricity standard and a raft of other energy incentives, including a provision that could bring oil and gas rigs closer to Florida's Gulf Coast. Bingaman is also planning a hearing Thursday on several competing cost estimates associated with the House-passed climate bill. The session, which was postponed once earlier this month, now gives senators an early public forum to sound off on the Boxer-Kerry bill...

Obama Says U.S. 'Determined' to Combat Climate Change, Despite Senate Delay

A failure to address climate change could create an "irreversible catastrophe," President Obama warns in a speech at the United Nations.

September 22, 2009

FOX News - President Obama promised the United Nations Tuesday that his administration is "determined" to do more to address the nation's climate change obligations.

But left out of the speech to the General Assembly special session on climate change was the political reality the president faces in trying to keep that promise.

While the House passed a sweeping climate change bill this year, it has stalled in the Senate as health care reform dominates the domestic agenda.

Yet Obama asserted Tuesday that, while the United States was slow to respond to the global warming threat, his administration is doing more to combat climate change than any in history.

He touted progress that has been made during his term, including new standards for fuel efficiency in automobiles and the House version of the so-called cap-and-trade bill -- which he called the most important part of U.S. efforts.

"We understand the gravity of the climate threat. We are determined to act. And we will meet our responsibility to future generations," he said.

Obama warned that a failure to address the problem could create an "irreversible catastrophe." Obama said time is "running out" to fix the problem but that, "we can reverse it."

That wasn't nearly enough to blunt the criticism directed at the United States by European and Asian leaders.

He was immediately followed on stage by Maldives President Mohamed Nasheed, who criticized the West for "complacency and broken promises" on climate change.

Former President George W. Bush rejected the 1997 Kyoto Protocol for cutting greenhouse gas emissions in part because major developing nations like China and India were left out.

Now the United States is being held up as an excuse by those very countries, who question why they should make strict commitments if the United States is not doing enough.

John Bruton, head of the European Union delegation in Washington, also issued a statement ahead of Obama's speech blasting the U.S. Senate.

"I submit that asking an international conference to sit around looking out the window for months, while one chamber of the legislature of one country deals with its other business, is simply not a realistic political position," he said.

The U.S. House bill passed earlier in the year would set the United States' first federal mandatory limits on greenhouse gases. Factories, power plants and other sources would be required to cut emissions by 17 percent from 2005 levels by 2020 and by 83 percent by mid-century.

It's unclear how long Obama has to harness the Democratic majorities in Congress to push through domestic priorities like climate change legislation. Many forecasters predict Democrats will lose congressional seats in 2010, making it all the more pressing for the Senate to make progress soon.

House Minority Leader John Boehner repeated Republicans' concerns with the climate change legislation under consideration Tuesday, warning that it will cost American families hundreds extra in energy costs.

"Out-of-touch Washington Democrats don't seem to get it," he said in a written statement. "Middle-class families and small businesses are struggling, and they shouldn't be punished with costly legislation that will increase electricity bills, raise gasoline prices, and ship more American jobs overseas to places like China and India."

Even if the Senate passes its own version, the differences will have to be reconciled before a bill heads to the president's desk.

But Obama maintained confidence Tuesday that the United States will act and put added pressure on developing nations to do the same.

"Yes, the developed nations that caused much of the damage to our climate over the last century still have a responsibility to lead, and that includes the United States. And we will continue to do so -- by investing in renewable energy, promoting greater efficiency, and slashing our emissions to reach the targets we set for 2020 and our long-term goal for 2050," Obama said. "But those rapidly-growing developing nations that will produce nearly all the growth in global carbon emissions in the decades ahead must do their part as well.

"They will need to commit to strong measures at home and agree to stand behind those commitments just as the developed nations must stand behind their own. We cannot meet this challenge unless all the largest emitters of greenhouse gas pollution act together," he said.

Reid Says Cap-and-Trade Bill MAY Wait Till 2010

September 15, 2009

ClimateProgress - Senate Majority Leader Harry Reid (D-Nev.) today said the Senate may not act on comprehensive energy and climate change legislation until next year, given the chamber’s busy fall schedule.

I’d say right now it’s about 50-50 we get a vote this year, and as readers know, I don’t think it matters terribly much. There’s gonna be a Senate vote on a climate bill — that is clear from Obama’s decision to speak at U.N. special session on global warming (and Todd Stern’s testimony). Even Inhofe knows that. We get one bit at this man apple, so the key is to work hard and pick the best time to pass the damn thing.

That said, I’d say the ideal time for a vote might be the first week in December, right before the international conference at Copenhagen. That’s when maximum attention and pressure can be brought to bear on this historical vote. But I do expect Copenhagen to 1) not have a final deal but 2) to move the negotiations forward, so having the debate and vote in January can also work.

I do think this vindicates my original recommendation back in January that “Obama needs to pass in 2009 the mother of all energy bills” and then pass a climate bill in early 2010. But now I think it is much too late to split the bills, as much as some members might like that. Nor does it appear that is Reid’s preference:

Speaking to reporters about the possibility of taking up the bill this fall, Reid said the Senate must first finish work on health care and regulatory reform.

“So, you know, we are going to have a busy, busy time the rest of this year,” Reid said. “And, of course, nothing terminates at the end of this year. We still have next year to complete things if we have to.”

Senate Majority Whip Dick Durbin (D-Ill.) acknowledged the current focus on health care but said he is hopeful climate will remain part of the packed agenda this year. Asked whether he and Reid are discussing the climate and energy bill amid the current health care push, Durbin said,

“It’s all health care, all the time. I shouldn’t say all the time, because we have a list of about a dozen things we have to do, and that is one of the elements that we want to finish before the end of the year.”

Reid also downplayed but did not rule out the possibility that Democrats could decide to move the energy piece separately from the climate change portion.

“That was an initial discussion that we had many, many months ago,” Reid said. “We’ve focused on what the House has done, and that is do it all in one package. But we have — that’s a bridge that’s still a long ways away.”

The House has passed a climate bill with shrinking emissions caps, and that’s what the Senate needs to do in order for there to be a global deal and have a serious chance of averting catastrophe.

Senate Dems Send Small Signs of Progress on Cap-and-Trade Bill

September 9, 2009

E&E Daily - Key Senate Democrats insisted that they are making incremental progress on a comprehensive global warming bill as they returned to Capitol Hill yesterday following a monthlong break where health care reform surged to the top of Congress' legislative agenda.

Environment and Public Works Chairwoman Barbara Boxer (D-Calif.) told reporters she has made "many decisions" on the climate legislation in recent weeks but declined to elaborate on specifics ahead of a bill introduction later this month with Foreign Relations Chairman John Kerry (D-Mass.).

"You will find out soon enough, as soon as we have our press conference on the bill," Boxer said. "But it is going well."

Boxer also would not say when she would hold a markup, though Senate aides say they are penciling in the EPW Committee vote for early to mid-October. "The bill will be introduced this month and then, immediately following, we will have a markup," Boxer said.

Kerry and Boxer originally intended to roll out their bill this week and finish markups by Sept. 28. But Boxer and Kerry bumped back that schedule last week to continue a series of consultations with government experts who have been modeling their proposal.

"We're burning and churning with CBO and with the EPA," Kerry said. "We're just running by them. The minute you nix something here, or change something, you change the overall formula and outcomes. And we need to know what the costs are, and what the impacts are."

Kerry also declined to talk timelines.

"I'm not going to make a prediction on a date, so we don't fall short of something," he said. "But obviously, we're trying to move it as fast as we can this month."

Senate aides said Kerry also plans to meet in the coming weeks with fence-sitting Senate Democrats and Republicans to try and expand the coalition supporting the bill should Majority Leader Harry Reid (D-Nev.) follow through with plans to give it floor time later this year.

Other small signs of progress are coming from some of the moderate Senate Democrats who have been working on their own for several months on issues considered critical to finding the 60 votes necessary for final passage.

Sen. Tom Carper (D-Del.), a senior member of the EPW Committee, told reporters yesterday that he is nearing a resolution with a small group of coal-state Democrats on coal research and technology issues.

"We're pretty close to having something constructive," Carper said, declining to discuss details. Senate aides said Carper's working group, organized earlier this spring by Boxer, includes Sens. Max Baucus of Montana, Robert Byrd of West Virginia and Arlen Specter of Pennsylvania.

Separately, Sen. Sherrod Brown (D-Ohio) said a group of manufacturing-state senators are within a few weeks of unveiling language that spells out how to deal with carbon-intensive U.S. industries. Brown said he is meeting next week with Boxer to go over an agenda that includes allocation of allowances, as well as a "border equalization" option that focuses on developing nations.

Offset issues remain the focus for Sen. Debbie Stabenow (D-Mich.), who said yesterday that she is planning to offer language that is more specific than what the House included in H.R. 2454, the bill approved on the floor in late June. Stabenow added that the Agriculture Committee may not need to formally vote on her proposal, which considers ways for industry to fund agriculture and other land management projects as a cheaper compliance option for the climate program.

"We're flushing out issues, but I'm not sure if there's going to be a markup," Stabenow said.

Health care remains 'The Big Kahuna'

Senate efforts to advance climate legislation come at the same time President Obama puts much of his own political capital on the line to try and pass a comprehensive health care reform bill.

Many top Democrats acknowledged yesterday that the global warming debate sits on the backburner as they try to resolve differences among themselves, as well as Republicans, on health care.

"I think health care is sort of the Big Kahuna here," said Agriculture Chairman Tom Harkin (D-Iowa). "We've got to get that done first." Sen. Evan Bayh (D-Ind.) said he heard little about climate change during town hall meetings over the August break -- except for advocacy groups who pounded the state's airwaves with commercials for and against the issue. "It's just been totally overwhelmed by the health care debate," he said.

Majority Whip Dick Durbin (D-Ill.) ducked several questions about climate change, saying Reid would be the one making the big decisions on timing for the bill, but acknowledged the schedule is packed for the remainder of the year.

"Health care and appropriations could take up the rest of the year, easy," Durbin said.

Durbin did tamp down speculation that Wall Street regulatory reform has surged past climate change into second on the Senate's agenda behind health care. "I'm not sure I can put it in that order," he said. "But I can say all three are priorities as we bring this year to a close."

Sen. Joe Lieberman (I-Conn.), a longtime advocate for cap-and-trade legislation, said the outcome of the health care debate likely has ramifications for global warming.

"If this fails, there's no logic to it," he said of health care. "But I think it will be hard, not impossible, but harder for climate change."

Lieberman also said he thinks it is possible that successful compromises struck on health care could leave Congress with a "good feeling" headed into the climate debate.

Finance Chairman Baucus, a central figure in the health care battle, said he no longer needs to meet the Sept. 28 deadline for a markup on his pieces of the climate bill. As for the bill's bigger picture prospects, Baucus replied,

"My guess is it's going to be difficult. We've got health care. It's going to take up most of the month. It's going to be difficult to also do [climate]."

Obama appears tonight before a joint session of Congress to promote his health care agenda. EPW Committee ranking member James Inhofe (R-Okla.) said he does not expect Obama to include climate in the speech.

"He doesn't want to get on a losing issue right now," Inhofe said. "He's got enough of them. He doesn't need one more."

Digging in

Some lawmakers returning from their four-week break appeared like they had moved little when it comes to the global warming bill.

Sen. Byron Dorgan (D-N.D.) said he still was trying to convince Democratic leaders to drop the cap-and-trade components and just go for an energy bill that includes expanded fossil fuel production and a nationwide renewables mandate.

"I am going to continue to push for that," Dorgan said.

But the chairman of the Democratic Policy Committee said Reid has not budged from keeping the entire package together.

Harkin said he continues to push for a change to the House-passed bill's allocation language that splits allowances up 50-50 between power companies that rely on coal, natural gas and nuclear energy (E&E Daily, Aug. 5). Harkin said the House formula penalizes parts of the country that rely primarily on coal and natural gas for their electricity, while giving too much benefit to more energy-efficient power companies.

"I think they know it can't be 50-50," Harkin said. "It just depends on where between 50 and 100 percent we get the allocations on emissions."

Harkin also said he favors adding language to the climate bill that forces other countries to make similar emission reduction commitments -- otherwise the United States could back out of its own law.

"I also say we need an exit ramp," he said. "We need that in case no other countries join with us. But since we put the most pollutants in the air, it's up to us to take the leadership."

Some moderate Senate Republicans also are holding firm in their positions against action on a Democrat-led climate bill, at least not without major concessions.

Sen. John McCain (R-Ariz.) said yesterday he still questions the Obama administration for making budget assumptions that take into account money raised from the climate bill.

"I can't use cap and trade as a way to increase revenue," McCain said. "It's $630 billion that's in the president's budget. That's not cap and trade. That's appropriately called cap and tax. So we have to look at that."

McCain said he is starting to work with Lieberman on climate legislation, including language that has expanded incentives for nuclear power.

Sen. George Voinovich (R-Ohio) said he continues to press for a wide range of answers on the climate legislation, including a Congressional Research Service report comparing the House-passed bill with other measures under debate and being implemented around the world, "to see just what we're covering and what we're not covering."

Voinovich also wants EPA and other agencies to explain what baseline year should be used for making emission reductions considering Europe, Australia and Japan cannot agree on whether to calculate their efforts from 1990, 2000 or 2005.

The retiring two-term senator said he is getting push back from EPA as he raises questions about how many federal employees would be needed to implement a climate law, as well as what types of jobs would be filled.

"I'm just saying, there are some really big questions," Voinovich said. "There are big issues out there that need to be given some thoughtful consideration."

Voinovich said he is working with EPA Administrator Lisa Jackson to get answers to his questions about the climate bill. Until then, he said he continues to keep a "hold" on the Senate confirmation of Robert Perciaseppe to be deputy EPA administrator.

"We're going to try and see if we can resolve some of these differences and work it out," Voinovich said.

Looking ahead, Inhofe said Boxer should have little trouble moving a climate bill through the EPW Committee.

"She can do that in a heartbeat," he said. "She can do that tomorrow."

But Inhofe expects Reid will have problems moving climate legislation on the floor.

"The votes just flat aren't there," he said. "Certainly, the August recess was five weeks of losses as more and more people realize the cost and the fact it's just not real."

Instead, Inhofe predicted Reid pulls back from a vote on a cap-and-trade bill and instead opts for an alternative.

"He'll have to have something face saving for Copenhagen," Inhofe said, referring to the December U.N. climate talks. "Maybe a study?"