Dingell & Boucher Release Draft Climate Change Bill

Oct 7: The House Energy & Commerce Committee, Chaired by Representative John Dingell (D-MI) and the Subcommittee on Energy and Air Quality, Chaired by Rick Boucher (D-VA) released their long-awaited "discussion draft" of climate change legislation. The draft is the culmination of nearly two years of intensive work on climate change by the Committee and according to the Chairmen, "marks an important step in our ongoing efforts to address this increasingly serious problem."

According to a memo to Committee member, "Politically, scientifically, legally, and morally, the questions has been settled: regulation of greenhouse gases in the United States is coming. We believe that elected and accountable representatives in the Congress, not the Executive Branch, should properly design that regulatory program. The only remaining question is what form that regulation will take. . . The discussion draft would establish an economy-wide cap on emissions of greenhouse gases. In the early years of the program, caps would be set at a level that is realistically achievable to ensure that firms are able to adjust gradually. By 2050, emissions from covered sources would be reduced to 80 percent below 2005 levels . . . The discussion draft presents four options concerning how emission allowances might be allocated to firms, States, consumers, and other areas. . . The demise of the climate change bill in the Senate earlier this year underscores the need to reach a broad bipartisan consensus.

The memo calls for "unprecedented investments" in existing and innovative technologies, rapid deployment of carbon capture and sequestration (CCS) and increased production of electricity from nuclear, wind, solar, tidal, geothermal and other sources. The memo requests persons review and comment on the draft "so that we may begin the next session of Congress more informed and better able to move legislation quickly."

An early response from Environmental Defense Fund (EDF) President Fred Krupp indicates, “The release today of new draft climate legislation . . . is further confirmation that passing cap and trade legislation remains high on the agenda of congressional lawmakers and a boost for prospects of a bill next year. We appreciate that Chairmen Dingell and Boucher are moving forward with their bill in this critical economic time for America. . . The near-term targets and timetables in the current draft of the proposal fall far short . . . EDF will continue to push for strong emissions reduction targets in the early years of the program as discussions move forward. Importantly, their proposal appears to manage costs without provisions that would bust the emissions cap. We look forward to working with the chairmen, along with leadership and the new president, to pass a bill that protects the climate and delivers the economic stimulus America needs now more than ever.”

Access the Text of the Draft Legislation; Executive Summary of the Discussion Draft; Memo to Members of the Committee; an Allocation Chart; and all background papers and committee meetings on the development of the legislation (click here). Access the EDF statement on the draft (click here). [*Climate]

Enviros Will Sue To Regulate Perchlorate If Necessary

Oct 3: Immediately after U.S. EPA announced that it had made a preliminary determination that there is not a "meaningful opportunity for health risk reduction" through a national drinking water regulation for exposure to perchlorate [See WIMS 10/3/08], environmental advocates announced they plan to sue the Agency. EPA said it had conducted an extensive review of scientific data related to the health effects of exposure to perchlorate from drinking water and other sources and found that in more than 99 percent of public drinking water systems, perchlorate was not at levels of public health concern.

Therefore, based on the Safe Water Drinking Act criteria, the Agency made its decision and is now seeking comment on its preliminary determination and will make a final determination for perchlorate after considering information provided in the 30-day public comment period. Despite the "preliminary" nature of EPA's decision, the environmental groups said the "decision represents a victory for the Department of Defense and military contractors, which for years have pressured EPA not to regulate perchlorate and other chemicals associated with weapons manufacturing."

Responding to the announcement, the nonprofit environmental law firm Earthjustice said it plans to challenge any final EPA decision in court, representing the Environmental Working Group (EWG) and other organizations concerned about the health effects of perchlorate in drinking water. Earthjustice attorney George Torgun said, "EPA's decision has industry's fingerprints all over it. Weapons makers will benefit at the expense of millions of Americans' drinking water spiked with rocket fuel. Clean, safe drinking water is essential. That's why we will fight in court to make sure this toxin is regulated under the Safe Drinking Water Act."

For years, perchlorate was disposed in the ground by the military and missile-makers. The highly soluble toxin has spread from bases and factories to wells and rivers across the country. The groups indicated that if limits for perchlorate in drinking water were set, the Defense Department and defense contractors could be found responsible for cleanups triggered by violations of the Safe Drinking Water Act. Senator Barbara Boxer and Representative Hilda Solis (both D-CA) have pushed for legislation that would force EPA to set a federal perchlorate standard [See WIMS 5/6/08]. According to a release from Earthjustice, "Perchlorate concentrations of less than 5 parts per billion have been shown to inhibit iodine uptake by the thyroid gland, resulting in a decreased formation of two hormones necessary for proper oxygen consumption and metabolism. The harm is greatest in populations that are developing and growing rapidly, such as fetuses, infants, and young children."

Ben Dunham, Earthjustice environmental health policy analyst said, "According to EPA, at least 10 million people have rocket fuel in their drinking water. Yet today, the agency says there is not a 'meaningful opportunity for health risk reduction.' I'm sure the 10 million people drinking contaminated water think cleaning up their water supply would be 'meaningful.' Because perchlorate contamination is often concentrated around military facilities, EPA's failure to protect the public from polluted drinking water will hit military families especially hard. These families have already sacrificed so much for this country. This decision adds insult to injury, by allowing contamination to continue."

Dr. Anila Jacob, MD, MPH, Senior Scientist at EWG said, “The health and well-being of millions of breast-fed babies are being ignored by EPA so the defense industry and their agents in the Pentagon can avoid cleaning up the mess they’ve made." The groups cited a 2005 GAO report listing state-by-state drinking water supplies contaminated by perchlorate.

According to an announcement from the American Water Works Association (AWWA), Massachusetts and California have already set perchlorate standards at levels of 2 µg/L and 6 µg/L, respectively. AWWA, which recently completed two studies reviewing both occurrence and exposure of perchlorate, reported it “will work quickly to assess the details of the proposed regulatory determination and submit comments as appropriate based on the findings of these reports.” AWWA has posted information to help utilities communicate to customers about perchlorate.

U.S. Senator Barbara Boxer (D-CA), Chairman of the Senate Committee on Environment and Public Works, issued a statement saying, "Once again on a Friday, when nobody is paying attention, the Bush administration announces a policy that will harm the American people. The Bush EPA's failure to set a standard for perchlorate, a dangerous contaminant found in drinking water, is outrageous and I will do everything in my power to reverse it. Perchlorate contamination endangers the health of our families, especially pregnant women and children, and to simply allow it to remain in our drinking water is immoral." Boxer indicated that EPA says perchlorate is found in the drinking water supplies of up to 16.6 million Americans; however, other independent researchers have estimated that 20 million or more Americans are exposed to the toxin.

Access a release from Earthjustice and link to the GAO report (click here). Access a release from EWG (click here). Access EWG's research and related information on perchlorate (click here). Access the announcement from AWWA and link to further information (click here). Access a release from Senator Boxer (click here). Access EPA's draft regulatory determination and extensive background information (click here). [*Water]

Renewable Energy Tax Extenders Pass As Part Of "Rescue" Bill

Oct 3: The Renewable Energy Tax Extenders as contained in the recently approved Senate Bill (H.R. 6049) [See WIMS 9/24/08] have finally been approved as part of the Revised Federal Intervention In Financial Markets Bill (H.R. 1424). The measure was approved on October 1, in the Senate by a vote of 74-25 (with Senator Kennedy not voting). Senators McCain, Obama, and Biden all voted in favor of the bill. In the House, the measure was approved by a vote of 263-171 this afternoon (October 3, 2008), and was signed immediately by the President.

The tax extenders portion of the bill, (H.R. 6049, Senate Substitute, Energy and Tax Extenders Act of 2008, [See WIMS 9/22/08]) extends the placed-in service date for the credit through December 31, 2009 in the case of wind and refined coal, and through December 31, 2010 in the case of other sources. The measure extends the 30 percent investment tax credit for solar energy property and qualified fuel cell property, as well as the 10 percent investment tax credit for micro-turbines, through 2016. The bill extends the credit for residential solar property through 2016, and removes the credit cap (currently $2,000) for solar electric investments. The bill increases the $500 per half kilowatt of capacity cap for qualified fuel cells to $1,500 per half kilowatt of capacity, and adds small commercial wind as a category of qualified investment. The bill adds residential small wind investment, capped at $4,000, and geothermal heat pumps, capped at $2,000, as qualifying property. With respect to vehicles, the bill establishes a new credit for plug-in electric drive vehicles and the credit for passenger vehicles and light trucks ranges from $2,500 to $7,500.

The so-called "tax extenders" bill was worked out between Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Chuck Grassley (R-IA) who reached an agreement with the Senate’s Democratic and Republican leadership. The measure passed the Senate 93-2 on September 23. A much more controversial Democratic counter measure -- the Renewable Energy and Job Creation Tax Act of 2008 (H.R. 7060) -- was approved in the House on September 26, by a vote of 257-166, mostly along party lines. The controversial provisions would have closed what Democrats called "loopholes that allow corporations and executives to avoid U.S. taxes by shipping jobs and investment overseas and curtailing unnecessary tax subsidies for big, multinational oil and gas companies."

Karen Wayland, Legislative Director for Natural Resources Defense Council (NRDC), issued a statement regarding the inclusion what she said are "tax incentives for dirty fuels" in the economic recovery package. She said, "Dirty fuels -- like oil shale, tar sands and liquid coal -- have no business in a clean energy package, and they certainly don't belong in the economic bailout bill. Taxpayers are already paying a high price for the current economic crisis, and they shouldn't have to pay more to Big Oil and its allies. Despite important incentives for clean, renewable energy, Congress is taking a step backward by assisting the producers of dirty, expensive and inefficient fuels."

Access legislative details for H.R. 1424 with links to the roll call votes (click here). Access a 7-page Senate Finance Committee staff detailed summary of the Energy-related provisions of the Energy and Tax Extenders Act of 2008 (click here). Access the statement from NRDC (click here). [*Energy, Et. Al.]

Gov. Schwarzenegger Signs Law To Curb GHG From Sprawl

Sep 30: California Governor Arnold Schwarzenegger announced that he has signed SB 375 by Senator Darrell Steinberg (D-Sacramento), which builds on the State law AB 32, California's first-in-the-nation law to reduce greenhouse gas (GHG) emissions, by adding the nation's first law to control greenhouse gas emissions by curbing sprawl. Governor Schwarzenegger said, "This landmark bill takes California's fight against global warming to a whole new level, and it creates a model that the rest of the country and world will use. When it comes to reducing greenhouse gases, California is first in tackling car emissions, first to tackle low-carbon fuels, and now with this landmark legislation, we are the first in the nation to tackle land-use planning. What this will mean is more environmentally-friendly communities, more sustainable developments, less time people spend in their cars, more alternative transportation options and neighborhoods we can safely and proudly pass on to future generations."

According to a release from the Governor, in order to reach the greenhouse gas reduction goals set out in AB 32, the Global Warming Solutions Act of 2006, "Californians need to rethink how we design our communities." SB 375 does this by providing emissions-reduction goals around which regions can plan-integrating disjointed planning activities and providing incentives for local governments and developers to follow new conscientiously-planned growth patterns.

SB 375 enhances the Air Resources Board's (ARB) ability to reach AB 32 goals by directing ARB to develop regional greenhouse gas emission reduction targets to be achieved from the automobile and light truck sectors for 2020 and 2035. ARB will also work with California's 18 metropolitan planning organizations to align their regional transportation, housing and land-use plans and prepare a "sustainable communities strategy" to reduce the amount of vehicle miles traveled in their respective regions and demonstrate the region's ability to attain its greenhouse gas reduction targets. The Governor indicates, "Spending less time on the road is the single-most powerful way for California to reduce its carbon footprint."

Additionally, SB 375 provides incentives for creating attractive, walkable and sustainable communities and revitalizing existing communities. The bill also allows home builders to get relief from certain environmental reviews under the California Environmental Quality Act if they build projects consistent with the new sustainable community strategies. It will also encourage the development of more alternative transportation options, which will promote healthy lifestyles and reduce traffic congestion.

Ann Notthoff, California advocacy director for Natural Resources Defense Council (NRDC) said, “Putting cleaner cars on the road and filling their tanks with cleaner fuel isn’t enough to achieve our pollution reduction goals as long as the number of miles we drive continues to grow out of control. That’s why this law is so great. It is the missing piece in California’s plan to reduce global warming pollution. By giving people a choice to get out of their cars once in a while we can take a big bite out of our global warming pollution, and save drivers money too. We know that better planning works. On average, Americans living in compact neighborhoods where cars are not the only transportation option drive one-third fewer miles. Besides reducing global warming pollution, this also saves people money at the gas pump."

Access a release from Governor Schwarzenegger with links to related information (click here). Access a Fact Sheet on the new law (click here). Access legislative details for SB 375 (click here). Access the California Climate Change portal for extensive information (click here). Access a release from NRDC (click here). [*Climate, *Land]

Report On EU REACH Regs Impact On U.S. Companies

Sep 30: A new report from Environmental Defense Fund (EDF), indicates that hundreds of companies located in 37 of the 50 United States produce or import hundreds of chemicals designated as dangerous by the European Union (EU). As a result, these companies will be directly affected by controls imposed under the EU's new chemicals regulation -- REACH (Registration, Evaluation, Authorization and restrictions of Chemicals).

The report -- Across the Pond: Assessing REACH's First Big Impact on U.S. Companies and Chemicals -- finds that many of the hundreds of chemicals already identified as dangerous by the EU are being produced or imported in the United States in large amounts and at many different sites. The findings provide compelling evidence for the U.S. Congress to protect public health by reforming the nation's primary chemical safety law, the 32-year-old Toxic Substances Control Act.

Richard A. Denison, Ph.D., EDF Senior Scientist and author of the report said, "The fact that so many chemicals already designated as dangerous by EU officials are actively being produced and used in the United States should dispel any notion that the problem is limited to only a few 'bad actors.' Toxic chemicals grabbing recent headlines -- such as bisphenol A used in baby bottles and food cans, phthalates used in kids' toys, and flame retardants used in furniture -- are just the tip of the iceberg in terms of chemicals that demand scrutiny. This report serves as an early warning to companies making and using these dangerous chemicals that they will be at a competitive disadvantage unless they proactively seek to eliminate exposures and develop safer alternatives. Scrutiny of these chemicals is only going to grow, so chemical companies should support efforts to modernize the decades-old U.S. chemicals policy that has shielded chemicals from needed testing and appropriate control."

Last year, the EU adopted its sweeping new chemicals regulation -- Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) -- under which companies must register all chemicals they place on the EU market in amounts above one metric ton. A hallmark of REACH is its identification of so-called "substances of very high concern" (SVHCs). REACH's intent is ultimately to allow use of such SVHCs only when each use has been specifically authorized. Denison said, "REACH's requirements will fully apply to U.S. companies that make chemicals for the EU market. This report is the first to determine which companies report making SVHCs in the United States. Once these chemicals become subject to REACH's authorization requirements, these companies will need permission from EU officials to sell them in the EU."

EDF based its analysis on a list of nearly 300 SVHCs issued last week by the International Chemical Secretariat (ChemSec), a Swedish nongovernmental organization. ChemSec dubbed its list the "SIN List," for "Substitute It Now," which reflects the group's interest in promoting safer alternatives to SVHCs wherever possible. The list represents the first effort to identify the range of chemicals expected to be subject to authorization under REACH. EDF compared the SIN List to the most recent publicly available data from the U.S. EPA that identifies which companies reported making or importing these chemicals in the United States. EDF found that many, and likely most, of the SIN List chemicals are manufactured or imported in the United States.

The EDF report also finds that: Eight states have at least a dozen SIN List chemicals: New Jersey, Texas, Louisiana, Ohio, New York, North Carolina, Kentucky and Michigan; In the United States, at least 85 SIN List chemicals are produced annually in amounts of one million or more pounds, and at least 14 exceed one billion pounds annually; At least 173 companies are producing or importing SIN List chemicals in the United States; Some companies are associated with many SIN List chemicals -- as many as 21 per company; and The five companies reporting making the most SIN List chemicals are Dow, DuPont, Chemtura, Equistar and BASF.

EDF found that only about a third of the SVHCs on the U.S. Toxic Substances Control Act (TSCA) Inventory have been tested under TSCA. Only two -- asbestos and hexavalent chromium -- have been regulated under TSCA, and EDF says "even these only under narrow conditions."

The American Chemistry Council (ACC) issued a release indicating that the EDF and ChemSec reports are creating "unnecessary confusion and public concern." ACC indicates in their release, "Barely 3 months after Europe’s comprehensive new chemical law (REACH) has gone into effect, already non-governmental public interest groups have created wish-lists and reports which distract attention from efforts to effectively implement the law, and that could undermine the law’s effectiveness."

ACC said, "The list published by ChemSec is simply one interest group’s recommendation on what chemicals should be subject to use-specific authorization under REACH. The list is not a formal element of the European Union’s REACH program, and could create serious confusion for chemical manufacturers, distributors and their customers throughout the value chain. Under REACH, it is the European Chemicals Agency’s (ECHA) responsibility to propose chemicals for authorization and, to date, ECHA has proposed an initial list of 16 substances using the procedures set out under the law.

"The Environmental Defense Fund (EDF) has issued a new report on impacts from REACH in the U.S., based on the ChemSec 'wish list.' In ACC’s view, the EDF report compounds the potential for confusion in chemical value chains. Further, it implies that there are unregulated exposures to the listed chemicals, and creates the potential for unwarranted public concern. . . "

Access a release from EDF (click here). Access links to the complete 24-page report, summary and data tables (click here). Access the Chemical Secretariat "SIN List" (click here). Access a release from ACC and link to additional information (click here). Access WIMS-EcoBizPort REACH Program links (click here). Access various WIMS-eNewsUSA Blog posts on REACH issues (click here). [*Toxics]

GAO Report On Federal Actions On Carbon Capture & Storage

Sep 30: The Government Accountability Office (GAO) released a report entitled, Climate Change: Federal Actions Will Greatly Affect the Viability of Carbon Capture and Storage As a Key Mitigation Option (GAO-08-1080, September 30, 2008).

As requested by the House Select Committee on Energy Independence and Global Warming, GAO examined (1) key economic, legal, regulatory, and technological barriers impeding commercial-scale deployment of carbon capture and storage (CCS) technology and (2) actions the Department of Energy (DOE), U.S. EPA, and other agencies are taking to overcome barriers to commercial-scale deployment of CCS technology. Among other things, GAO examined key studies and contacted officials from pertinent agencies, companies, and environmental groups, as well as research and other organizations.

GAO said that nationally-recognized studies and its contacts with a diverse group of industry representatives, nongovernmental organizations, and academic researchers show that key barriers to CCS deployment include: (1) underdeveloped and costly CO2 capture technology and (2) regulatory and legal uncertainties over CO2 capture, injection, and storage. Key technological barriers include a lack of experience in capturing significant amounts of CO2 from commercial-scale power plants and the significant cost of retrofitting existing plants that are the single largest source of CO2 emissions in the United States.

Regulatory and legal uncertainties include questions about liability concerning CO2 leakage and ownership of CO2 once injected. According to the National Academy of Sciences and other knowledgeable authorities, another barrier is the absence of a national strategy to control CO2 emissions trading plan, CO2 emissions tax, or other mandatory control of CO2 emissions), without which the electric utility industry has little incentive to capture and store its CO2 emissions. Moreover, according to key agency officials, the absence of a national strategy to control CO2 emissions has also deterred their agencies from resolving other important practical issues, such as how sequestered CO2 will be transported from power plants to appropriate storage locations and how stored CO2 would be treated in a future CO2 emissions trading plan.

Among GAO’s recommendations are that (1) DOE continue to place greater emphasis on CO2 capture at existing power plants and (2) EPA examine how its statutory authorities can be used to address potential CCS barriers. DOE neither explicitly agreed nor disagreed with the first recommendation. EPA expressed general agreement with the second recommendation.

Chairman Edward Markey (D-MA) of the Select Committee on Energy Independence and Global Warming, who requested the study said, “If carbon sequestration technologies are going to get off -- and into -- the ground, we must have national limits on global warming pollution and an administration dedicated to promoting climate-friendly technologies. Solving coal’s climate conundrum is as vital as any challenge we face in battling global warming, and half-measures just won’t cut it.”

In a release Markey indicated that the GAO report says ". . .climate-fighting carbon sequestration technologies won’t significantly advance until a national strategy to regulate carbon emissions and interagency cooperation measures are established. The report shines a light on the lack of leadership from the Bush administration on global warming and climate-friendly technologies."

Access the complete 72-page GAO report (click here). Access a release from Chairman Markey (click here). [*Climate, *Energy]

Back & Forth On Renewable Tax Incentives Continues

Sep 28: House Speaker Nancy Pelosi (D-CA) released a brief statement following the September 26 House vote of 257-166, mostly along party lines, approving its different version of the Renewable Energy and Job Creation Tax Act of 2008 (H.R. 7060), which would extend and expand tax incentives for renewable energy. Speaker Pelosi said, “With the American people pinched at the pump, and seriously concerned about the state of the economy, the House has taken action again today to cut taxes for millions of middle-class families, invest in renewable energy technologies to create high-paying green jobs, make America more energy independent, and remove incentives in the tax code that encourage shipping jobs and investment overseas.

“When I became Speaker, I made energy independence the top priority for the New Direction Congress. This legislation holds true to that commitment, investing in the future and the ingenuity of the American people to create and deploy cutting-edge renewable technologies that will reduce our dependence on foreign oil. This legislation also holds true to our commitment to fiscal responsibility. By closing loopholes that allow corporations and executives to avoid U.S. taxes by shipping jobs and investment overseas and curtailing unnecessary tax subsidies for big, multinational oil and gas companies, we are ensuring that future generations don’t foot the bill for the progress we can make today.

“I urge my colleagues in the Senate to seize the opportunity to enact this bill law, thus creating and saving jobs in a difficult economy, providing essential tax relief to families and businesses, and speeding our transition to a clean, renewable energy and energy efficient future.”

On the Senate side, Senate Finance Chairman Max Baucus (D-MT), who successfully guided the Senate bipartisan "tax extenders" package including extensions of incentives for key renewable energy technologies to a 93-2 approval vote in the Senate [See WIMS 9/24/08], commented on the House passage of its alternate legislation which has now created a new impasse with little legislative time left.

Senator Baucus said, “This move in the House endangers tax relief that American businesses and families need right now. While I commend the House’s effort to fully offset the cost of this needed tax legislation, it is clear to me from discussions in the Senate that even this new package of bills will not pass in this body. Therefore, the tax relief agreed to in the Senate is the only legislation with any hope of providing energy tax incentives, protection from the alternative minimum tax, and business and family tax cuts this year. The tax relief passed by the Senate does what all of us want: it supports jobs, energy, and families at a time when our country is in financial crisis. The House needs to take a vote on the Senate package and pass these tax breaks for jobs, energy, and families, period, even at some cost. Americans need the sound energy future, the good-paying jobs, and the tax relief the Senate bill ensures. The House can provide it with one vote. I hope that vote will be scheduled soon.”

Access a release from Speaker Pelosi (click here). Access a more detailed release from House Democrats (click here). Access the brief statement from Senator Baucus (click here). Access legislative details for Senate Substitute for H.R. 6049 (click here). Access legislative details for H.R. 7060 including links to the roll call vote (click here). [*Energy]

RGGI Launches First-In-The-Nation Auction For CO2 Allowances

Sep 25: At a bell-ringing ceremony held at the New York Mercantile Exchange in lower Manhattan, the Regional Greenhouse Gas Initiative (RGGI) marked the opening of the first-in-the-nation auction for carbon dioxide emission allowances [See WIMS 3/21/08]. The ceremony, which was attended by Governor David Paterson of New York and Governor Jon Corzine of New Jersey, served to mark what RGGI says is the "most serious effort yet in the United States to address climate change."

RGGI will reduce carbon dioxide (CO2) emissions through a mandatory, market-based cap-and-trade program. Under RGGI, the ten participating states will stabilize power sector carbon emissions at their capped level, and then reduce the cap by 10 percent at a rate of 2.5 percent each year between 2015 and 2018. As promised in the 2005 RGGI Memorandum of Understanding, all participating states plan to have implementing regulations in place by January 1, 2009.

Jonathan Schrag, Executive Director of RGGI, Inc. said, “Today marks the culmination of more than five years of research, design and development of the nation’s first carbon market. It is fitting that our event took place on the shores of the river that Henry Hudson explored nearly 400 years ago. As with Hudson’s exploration then, these pioneering states are leading the way forward on the new, clean-energy economy that others will surely follow.”

CO2 allowances under RGGI will be distributed primarily via auctions rather than the free allocation methodology used in other emissions markets. By using an auction, participating states are able to provide benefits to consumers. Revenues from the carbon allowance auctions will be invested by the participating states in energy efficiency programs, renewable energy stimulus efforts and other programs to benefit consumers. As a result, RGGI will deliver economic and environmental benefits and improve energy security through reduced use of fossil fuels.

The RGGI auction offered 12,565,387 allowances, including CO2 allowances issued by Connecticut, Maine, Maryland, Massachusetts, Rhode Island and Vermont. Other RGGI participating states (Delaware, New Hampshire, New Jersey, New York)will offer allowances for sale in future auctions as they complete their necessary rulemaking proceedings. A second auction is scheduled for December 2008, with all RGGI participating states expected to offer allowances for sale in the first 2009 auction. The CO2 allowances purchased at this auction can be used by a regulated facility for compliance in any of the RGGI states, even if that state did not offer allowances in this auction.

Future sales of CO2 allowances are planned through a steady offering of allowances in quarterly auctions. States have committed to offer for sale before the end of 2011 all of the allowances they are putting into the auctions for the first three-year compliance period. Regulated power companies must hold enough allowances to match their CO2 emissions for the first compliance period by March 1, 2012. RGGI is serving as a model for other regional greenhouse gas initiatives including the Western Climate Initiative, the Midwestern Regional Greenhouse Gas Reduction Accord, a system being studied in Florida.

Dale Bryk, senior attorney at the Natural Resources Defense Council (NRDC) said, “Today is a bold step forward for our clean energy future and the fight against global warming. The new system is good for consumers, good for the economy and good for our climate. This new energy plan is straight-forward, highly cost-effective and creates a clean energy pathway for the rest of the country to follow. It is the shape of things to come.” Leading companies operating in the region that have backed the new system include Bank of America, Staples, National Grid, Pfizer, PSEG and the association of large energy users called The Energy Consortium.

World Resources Institute (WRI) President Jonathan Lash said, "Today, ten states are taking a major step forward in the fight against global warming as they begin operations of the Regional Greenhouse Gas Initiative (RGGI), the country’s first mandatory GHG emissions market. These Northeast and Mid-Atlantic states have been pioneers at a time when federal action has been egregiously lacking. Their accomplishments have proven that emissions markets are effective and politically possible. . . WRI is proud to have participated in the design of all three agreements, and congratulates the governors, state legislators, and stakeholders in the RGGI states on their outstanding accomplishment.”

Access a release from RGGI (click here). Access the RGGI website for extensive information (click here). Access the Western Climate Initiative (click here). Access the Midwestern Regional Greenhouse Gas Reduction Accord (click here). Access the Florida Climate Change website (click here). Access a release from NRDC (click here). Access a release from WRI (click here). [*Climate]

Recent Activity On The Oil Commodity Market Speculation Issue

Sep 25: On September 18, the U.S. House of Representatives passed the Commodity Markets Transparency and Accountability Act of 2008 (H.R. 6604) introduced by Representative Collin Peterson (D-MN), Chairman of the House Agricultural Committee [See WIMS 9/18/08]. The bill passed the House by a vote of 283 to 133, and was transmitted to the Senate on September 22. In July, Republican and Democratic Senators engaged in a heated debate on the issue of energy price speculation v. energy supply when Democrats put forth their Stop Excessive Energy Speculation Act (S. 3268) which failed to pass [See WIMS 7/24/08]. The legislation is now back in the hands of the Senate and it remains to be seen if Senators will deal with the issue in light of the Wall Street bailout concerns and limited legislative time.

On September 22, the same day the Senate received H.R. 6604, the Air Transport Association (ATA), the industry trade organization for the major U.S. airlines, reacted to oil's largest one-day price gain in NYMEX history, stating that "this record increase reaffirms that speculation is playing a significant role in driving up the price." On the 22nd, reversing recent price decreases, oil spiked at $130 per barrel, closing at $120.92 per barrel. ATA said, it "recognizes the impact of the financial crisis on Wall Street, the weak dollar and the aftermath of Hurricane Ike, the unprecedented 16 percent jump over the weekend -- from $104.55 per barrel last Friday to $120.92 per barrel today -- also reflects the impact of excessive energy speculation."

Also on the 22nd, as part of its ongoing national crude oil investigation, the Commodity Futures Trading Commission (CFTC) issued a statement regarding the oil market activity. CFTC Acting Chairman Walter Lukken said, “CFTC surveillance and enforcement staff are closely monitoring today’s large movement in the price of crude oil. We are working closely with NYMEX compliance staff to ensure that no one is taking advantage of the current stresses facing our financial marketplace for their own manipulative gain.”

Stephen J. Obie, Acting Director of the CFTC’s Division of Enforcement added, “CFTC enforcement staff will scour today’s trading activity to determine whether anyone engaged in illegal manipulative activity. No one should be trying to game our nation’s commodity futures markets.” CFTC said as part of its investigation, enforcement staff can compel testimony, under oath, and the production of information concerning the crude oil markets, including recent crude oil trading. On September 23, various media reports indicated that CFTC had "subpoenaed dozens of traders as it probes why a Nymex oil contract rose the most ever yesterday. . ."

Senate Republicans remain skeptical about the effects of speculation on oil prices. Retiring Senator Pete Domenici, Ranking Member of the Senate Energy and Natural Resources (ENR) Committee and a key Republican leader on energy issues said at September 16, hearing on the speculation issue, “I have yet to see any credible reports that speculators are manipulating the markets to drive prices up in a substantial way. In fact, I would note that now that prices have come down, the rhetoric from Democrats seems to have quieted, too, except for this hearing. It is obvious to me—and most experts—that the rise in prices we have seen this summer is a direct result of a global supply and demand imbalance, and the way to correct it is by addressing that fundamental problem.”

The hearing was held to examine two separate and conflicting reports on the speculation issue. The first report, the CFTC’s staff report on swap dealers and index traders, represents an unprecedented effort to measure what is happening in our commodity markets revealed very little evidence of speculation, and Domenici said "certainly not enough to significantly affect the price of oil." Domenici continued saying, "The second report, from Mr. Masters, concludes that speculation is a significant influence on the price of oil. The accuracy of this claim has already been called into question, most notably by the man who generated the data used to construct it."

Access the release from the CFTC (click here). Access the ATA release on the oil market (click here). Access Senator Domenici's statement at the speculation hearing (click here). Access the ENR Sep. 16 Subcommittee hearing on oil speculation and link to all testimony and a webcast (click here). Access a release and link to the complete 48-page CFTC report (click here). Access the so-called "Masters" reports and related information from the Accidental Hunt Brothers Blog (click here). Access legislative details for H.R. 6604 (click here). Access legislative details for S. 3268 (click here). Access background information on the Energy and Commerce investigation of the Energy Speculation issue (click here). Access the Stop Oil Speculation Now blog for additional information (click here). [*Energy]

Renewable Energy Tax Extenders Bill (H.R. 6049) Passes Senate 93-2

Sep 23: With praise and support from both Democrats and Republicans, at about 6 PM on Tuesday, the Senate unanimously (93-2, 5 not voting) passed the so-called "tax extenders" package that includes extensions for key renewable energy technologies like wind, solar and biomass. Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Chuck Grassley (R-IA) announced the bipartisan agreement that also included an update of the alternative minimum tax rules and continued tax cuts for college tuition, state and local sales taxes, and research and development for U.S. businesses on September 16 [See WIMS 9/18/08].

The bill, H.R. 6049 (Senate Substitute, Energy and Tax Extenders Act of 2008, [See WIMS 9/22/08] extends the placed-in service date for the credit through December 31, 2009 in the case of wind and refined coal, and through December 31, 2010 in the case of other sources. The measure extends the 30 percent investment tax credit for solar energy property and qualified fuel cell property, as well as the 10 percent investment tax credit for micro-turbines, through 2016. The bill extends the credit for residential solar property through 2016, and removes the credit cap (currently $2,000) for solar electric investments. The bill increases the $500 per half kilowatt of capacity cap for qualified fuel cells to $1,500 per half kilowatt of capacity, and adds small commercial wind as a category of qualified investment. The bill adds residential small wind investment, capped at $4,000, and geothermal heat pumps, capped at $2,000, as qualifying property. With respect to vehicles, the bill establishes a new credit for plug-in electric drive vehicles and the credit for passenger vehicles and light trucks ranges from $2,500 to $7,500.

Senate Majority Leader, Harry Reid (D-NV) said, “I am pleased that Senate Republicans have finally recognized -- after blocking nine Democratic efforts to invest in clean, renewable energy sources -- the importance of making America more energy independent, strengthening our national security and creating good-paying jobs here at home. This bill will help us harness the power of the wind, the sun, geothermal and other sources of clean, renewable energy. . . "

Senate Republican Leader Mitch McConnell (R-KY) said, “The taxpayer can claim a major accomplishment today. At a time of high economic anxiety, this tax relief extension bill encourages greater energy independence, delivers much-needed relief to job creators across the country, and it ensures a much smaller tax bill for millions of American families. The Senate had been deadlocked on the provisions contained in this bill for months. But in the end, senators on both sides of the aisle shut out the partisan rancor of the presidential election, hammered out a compromise, and delivered. And the result is a tribute to all the senators and the many staffers on both sides who worked so hard to get us here. . . "

At a press conference Democratic Senators Max Baucus (D-MT), Jeff Bingaman (D-NM), Maria Cantwell (D-WA), and Ken Salazar (D-CO) joined Greg Wetstone of the American Wind Energy Association, Karl Gawell of the Geothermal Energy Association and Kateri Callahan of the Alliance to Save Energy all applauded the bill. Senator Bingaman, Chairman of the Senate Energy and Natural Resources Committee said, “I have long maintained that targeted tax incentives are an essential element of a bold new energy policy for our country. These incentives’ will play a critical role in promoting clean, renewable energy and energy efficiency, and in turn reducing our reliance on conventional fuels, promoting a more secure energy supply and combating global warming. Equally important, these tax credits will create high-paying jobs and reduce energy costs for all Americans.”

U.S. Senator Pete Domenici, Ranking Member of the Senate Energy and Natural Resources Committee, applauded passage of the bill. “At long last, both parties have joined together to extend the essential tax credits for renewable energy, which were set to expire at the end of the year. Renewables like wind, solar, biomass and geothermal will play an essential role in our energy future, and the renewable energy tax credits are necessary to help these industries continue to grow. I am pleased that the Senate has passed this extension, and I look forward to quick action in the House.”

The Natural Resources Defense Council (NRDC) issued a release saying, "We are encouraged that the Senate is taking action to promote the creation of clean energy solutions that our country urgently needs, but it’s too bad they are tossing some of dirty fuels into the mix. This bill will spur increased energy efficiency and the production of renewable energy technologies, which are keys for creating new jobs and reducing our dependence on foreign oil. Unfortunately, the bill also supports increased subsidies for dirty fuels -- like oil shale, tar sands and liquid coal -- that can cause twice the global warming pollution as conventional oil. As the bill moves to the House, we ask Representatives to strip away the dirty energy provisions that won’t help people at the pump and won’t move America to a new clean energy future.”

Access legislative details for H.R. 6049 (click here). Access a 7-page Senate Finance Committee staff summary of the energy aspects of the bill (click here). Access a release from Senator Reid (click here). Access a release from Senator McConnell (click here). Access a release from Senator Domenici (click here). Access a release from the Democratic Senators' press conference (click here). Access a release from NRDC (click here). [*Energy]

Financial Woes Spill Over To Climate Change Hearing

Sep 23: The Senate Environment and Pubic Works Committee, Chaired by Senator Barbara Boxer (D-CA) held a full Committee hearing entitled, “Regulation of Greenhouse Gases under the Clean Air Act.” Witnesses testifying at the hearing included: Robert Meyers, Principal Deputy Assistant Administrator Office of Air and Radiation U.S. EPA; California Air Resources Board; Jason Burnett, Former Associate Deputy Administrator U.S. EPA; Sierra Club; U.S. Chamber of Commerce; and the Competitive Enterprise Institute. Chairman Boxer and Ranking Member James Inhofe both delivered opening statements.

Senator Boxer recounted the long history of EPA action since the April 2, 2007, Supreme Court decision [Massachusetts, et al. v. EPA, et al., No. 05-1120, See WIMS 4/2/07] that confirmed that EPA has authority to regulate greenhouse gas (GHG) pollution under the Clean Air Act (CAA). In July of last year that EPA was planning to issue final rules on regulating greenhouse gases by the end of 2008; however "after a long delay, the Bush Administration stopped progress on this rulemaking in its tracks. . .and instead took the weakest step possible in order to further delay action. This was EPA’s 'Advanced Notice of Proposed Rulemaking.'"

Senator Boxer said, "We need to consider all the tools available to us to avert the dangers of unchecked global warming. And I continue to believe that we need a comprehensive new law to reduce global warming emissions. But in the meantime there is much that can and should be considered under the Clean Air Act. This law has a proven track record over the last 40 years. It has been very effective in reducing pollution and saving lives. . . This hearing will provide a road map for the next Administration to finally take effective action on reducing global warming emissions. After this hearing, my Committee will prepare a report to the next President on the Clean Air Act’s potential role in combating global warming."

Senator Inhofe said, "I am hopeful that today’s hearing will focus less on political theatrics and more on the substantive matter before us today, which has very urgent and troubling implications for our already fragile economy. This matter is the very real possibility of regulating greenhouse gases under the Clean Air Act. . . As more and more analysis is done about the potential implications of regulating greenhouse gases under the Clean Air Act, the more alarming the consequences become. . .

"We will also hear today from the United States Chamber of Commerce, who will voice their strong opposition over any proposed rules under the Act. They will discuss their new analysis that finds over one million mid-sized to large commercial-sector sources could become exposed to PSD permitting requirements, including 92,000 health care facilities and 100,000 schools and other educational facilities. In addition, almost 200,000 industrial manufacturing sector sources emit enough CO2 per year to become exposed to PSD permitting requirements, as well as over 17,000 large agricultural sector sources. . . In a time of record high energy prices, economic uncertainty, and dire financial news, and with Treasury Secretary Paulson testifying at this hour on the largest government bailout in history, the only positive economic data I can gather under those scenarios is for the legal profession as they will have a feeding frenzy of new Rules to challenge."

Access the hearing website for links to all testimony, opening statements and a webcast (click here). [*Climate]

Financial Crisis Delays Work On Energy Crisis

Sep 22: Following last week's unraveling of the financial fabric of the country and an emergency proposal for a near trillion dollar (and growing) bailout of Wall Street it appears the financial crisis will take precedent over the energy crisis which was "top dog" just a few days ago. Before the impact of the financial crisis was fully realized last week, the House managed to pass an energy bill [Comprehensive American Energy Security and Consumer Protection Act (H.R. 6899), See WIMS 9/17/08] over the objections of Republicans and Presidential veto threat. On the Senate side key Senators had apparently worked out a bipartisan plan for clean energy tax incentives totaling approximately $17 billion [H.R. 6049 (Energy and Tax Extenders Act of 2008, See WIMS 9/18/08]. While the legislation was expected to be debated and voted on Tuesday, September 23, it is now uncertain whether it will be considered or delayed.

Already, the "Gang of 10 (now 20)" has announced it will delay introducing its revised version of a comprehensive bipartisan energy legislation (New Energy Reform Act of 2008, better known as New Era) until after the election. According to a September 19, release from Senator Kent Conrad (D-ND) and Saxby Chambliss (R-Ga.), leaders of the "Gang of 20", "Unfortunately, with the fiscal crisis unfolding, time to debate a comprehensive energy policy is not available. Instead, we will share our plan with our colleagues and ask that the New Era bill be among the first orders of business when Congress reconvenes.”

The bipartisan proposal includes what the coalition of Senators are calling an historic investment in research and development in an effort to transition new vehicles to non-petroleum based fuels by 2020. The new version of the proposal expands "responsible measures" to increase offshore drilling on the Outer Continental Shelf and remains committed to expanding renewable sources such as wind, solar and geothermal. Additionally, the plan includes consumer tax credits to purchase advanced fuel vehicles and increases nuclear power generation. Finally, the new version of the plan is completely paid for with no net tax increase and no net spending increase.

Conrad and Chambliss said, “Our group is strong and committed. We have accomplished something positive on Capitol Hill. We have formed a bipartisan group of Senators that continues to put progress ahead of politics. The New Era proposal has dramatically advanced the energy debate in Congress. The reason our group formed and the reason we remain together is because we all want to see a serious, comprehensive energy policy that can be enacted into law. We are extremely proud of this Gang of 20 and remain committed to working together to lessen our nation’s dependence on foreign oil and strengthen America’s economy.”

The coalition of 20 senators -- 10 Republicans and 10 Democrats -- has worked for the past three months to develop New Energy Reform Act of 2008. The Senators, in addition to Conrad and Chambliss who developed the proposal include: Senators John Warner (R-VA), Tim Johnson (D-SD), Susan Collins (R-ME) Mary Landrieu (D-LA), Lindsey Graham (R-SC), Blanche Lincoln (D-AR), John Sununu (R-NH), Evan Bayh (D-IN), Elizabeth Dole (R-NC), Tom Carper (D-DE), Norm Coleman (R-MN), Ben Nelson (D-NE), John Thune (R-SD), Mark Pryor, (D-AR), Johnny Isakson (R-GA), Ken Salazar (D-CO), Bob Corker (R-TN), and Amy Klobuchar (D-MN).

In anticipation of the Senate consideration of the clean energy tax incentives, Senate Energy & Natural Resources Committee Chairman Jeff Bingaman (D-NM) delivered a statement on the Senate Floor and cheered the compromise and urged his colleagues to support it. Senator Bingaman said, "This compromise will enable us to become a more energy efficient nation and wean us off our dependence on fossil fuels. It extends the production tax credit by one year for wind energy and by two years for other qualified renewable resources -- a category that the bill expands to include marine renewable, such as waves and tides. I had hoped that we could achieve a longer-term extension of the PTC [production tax credit], but this is all we could afford within the package’s cost constraints. Undoubtedly, this bill’s extension of the PTC will enable our renewable industries to stay afloat. But today, I renew my commitment to a long-term extension of the PTC, which I hope we will be able to achieve in the next Congress." Bingaman continued with further explanation of the compromise (See link below).

Access a release from Senators Conrad and Chambliss (click here). Access the complete floor statement from Senator Bingaman (click here). [Energy]

Hearing On "Science Under Siege" At U.S. EPA

Sep 18: The House Energy & Commerce Committee, Subcommittee on Oversight and Investigations, Chaired by Representative Bart Stupak (D-MI) held a hearing entitled, Science Under Siege: Scientific Integrity at the Environmental Protection Agency. Witnesses testifying at the hearing included: U.S. Government Accountability Office (GAO); Union of Concerned Scientists (UCS); State of Maine Department of Environmental Protection; Glynn Environmental Coalition; Natural Resources Defense Council (NRDC); American Chemistry Council; Marcus Peacock, Deputy Administrator U.S. EPA [Prepared testimony was not submitted]; and George Gray, Ph.D., Assistant Administrator U.S. EPA Office Research and Development.

Full Committee Chairman, Representative John Dingell (D-MI), delivered an opening statement saying, "Scientific integrity is an essential ingredient of nearly every decision the Environmental Protection Agency (EPA) makes. Unfortunately, there is a substantial question as to whether that is always the case under the current Administration. There is growing evidence that Congress, State and local governments, the public, and even other countries cannot rely on EPA for honest science.

"The landmark survey of EPA scientists conducted by the Union of Concerned Scientists (UCS) confirms what many had feared -- the Bush Administration’s political interference with EPA scientists is pervasive and frequent. The UCS survey found that more than 500 EPA scientists knew of “many or some” cases where EPA political appointees had interfered with scientific decisions. Nearly 100 EPA scientists identified the White House Office of Management and Budget as the primary source of external interference. And more than 500 scientists said they feared retaliation for speaking candidly about EPA’s scientific work. Clearly, we are not talking about an isolated incident.

"The testimony we will hear today exposes a broad pattern of political meddling by the Bush Administration, directed at EPA scientists and science. A prime example is the Administration’s recent changes to the Integrated Risk Information System (IRIS) process, under which chemicals are evaluated to determine the extent to which they may be hazardous to human health. . . Under this new system, the two largest polluters in the United States -- the Department of Defense and the Department of Energy -- are permitted to provide secret comments to OMB, which then has the final say on what goes into the IRIS system. Even EPA is not permitted to see these comments. And, because all of this is now done in secrecy, it is not entirely clear who else may have a hand in the process. . ."

At the hearing GAO released a new report entitled, New Assessment Process Further Limits the Credibility and Timeliness of EPA's Assessments of Toxic Chemicals (GAO-08-1168T, September 18, 2008). In the report, GAO found, "In March 2008, GAO concluded that the IRIS database was at serious risk of becoming obsolete because EPA had not been able to complete timely, credible assessments or decrease its backlog of 70 ongoing assessments -- a total of 4 were completed in fiscal years 2006 and 2007. In addition, assessment process changes EPA had recently made, as well as other changes EPA was considering at the time of GAO’s review, would further reduce the credibility and timeliness of IRIS assessments."

GAO said, "EPA issued its revised IRIS assessment process in April 2008. The new process is largely the same as the draft GAO evaluated and does not respond to the recommendations in GAO’s March 2008 report. Moreover, some key changes are likely to further exacerbate the productivity and credibility concerns GAO identified. . . Instead of streamlining the process, as GAO recommended, EPA has institutionalized a process that from the outset is estimated to take 6 to 8 years. This is problematic because of the substantial rework such cases often require to take into account changing science and methodologies. . . Little or no progress has been made on assessments of chemicals highlighted in our report, including naphthalene, formaldehyde, and trichloroethylene (TCE)."

Access the hearing website for links to all testimony and a webcast (click here). Access the complete statement from Chairman Dingell (click here). Access the GAO report (click here). Access multiple WIMS-eNewsUSA blog postings on the IRIS issue (click here). [*Toxics]

Bipartisan Senate Agreement On Clean Energy Tax Incentives

Sep 16: Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Chuck Grassley (R-IA) announced an agreement with the Senate’s Democratic and Republican leadership to move legislation accomplishing the Finance panel’s remaining major objectives for the year: passage of clean energy tax incentives, the protection of millions of Americans from the alternative minimum tax (AMT), and extensions of expiring family and business tax cuts. Last week, Baucus and Grassley unveiled a $40 billion package of clean energy tax incentives for Senate consideration this month. The Finance leaders combined key objectives of that legislation with an agreement to update alternative minimum tax rules and continue tax cuts for college tuition, state and local sales taxes, and research and development for U.S. businesses.

Senators will be debating the amendments on the Senate Floor to replace the current text of H.R. 6049 (Energy and Tax Extenders Act of 2008), energy tax legislation approved in the House of Representatives earlier this year and which failed to obtain the 60 votes necessary in the Senate on June 17 [See WIMS 6/18/08]. Along with other non-energy related elements, the bipartisan agreement includes clean energy tax incentives totaling approximately $17 billion, paid for by freezing the tax deduction for the domestic manufacturing activities of American oil and gas companies, by tightening the rules by which oil and gas companies pay taxes on income earned overseas, by freeing general fund monies with increased payments into the oil spill liability trust fund as new drilling is considered, by a one-year extension of the Federal Unemployment Tax Act surtax at the current level, and by increasing reporting requirements for brokers on sales of stock.

Senator Baucus said, “This month, the Senate can act to create jobs, break America’s dependence on foreign oil, support working families and help businesses thrive.This agreement will lead America toward clean, homegrown energy and the good-paying jobs that come with it. . . The Senate and the House should take up the elements of this agreement and pass them without delay. Americans are ready now for good-paying jobs, tax relief, economic growth, and a brighter energy future.” Senator Grassley said, “This legislation will be a huge shot in the arm to the economy, and the timing couldn’t be better. . . This package is a major victory and was worth fighting for in Congress because these provisions have proven their value. . ."

Access a release from the Senate Finance Committee (click here). Access a 7-page Senate Finance Committee staff summary of the Energy and Tax Extenders Act of 2008 (click here). Access an 18-page Staff Summary of the Senate Finance Committee Summary Amendment to the Substitute Amendment to H.R. 6049 (click here). Access legislative details for H.R. 6049 (click here). Access current Senate Floor activity (click here). [*Energy]

House Passes Energy Bill (H.R. 6899); Republicans Outraged

Sep 16: The House passed the Comprehensive American Energy Security and Consumer Protection Act (H.R. 6899) by a vote of 236-189 (9 not voting, 8 Republicans & 1 Democrat), at about 10 PM (September 16) [See WIMS 9/16/08]. Republicans voting for the Democratic bill included Representatives Buchanan, Castle, Gilchrest, LoBiondo, LaHood, Knollenberg, Kirk, Jones (NC), Inglis (SC), Hayes, Porter, Ramstad, Reichert, Shays, and Smith (NJ). Democrats voting against the measure included Representatives Barrow, Capps, Cazayoux, Farr, Filner, Pallone, Marshall, Holt, Payne, Rothman, Taylor, Thompson (CA), and Woolsey.

House Speaker Nancy Pelosi (D-CA) said, "The legislation is a bold step forward, helping end our dependence on foreign oil and increase our national security. It launches a clean renewable energy future that creates new American jobs, expands domestic energy supply -- including new offshore drilling, and invents and builds more efficient vehicles, buildings, homes, and infrastructure. It will lower costs to consumers and protect the interests of taxpayers. It is a comprehensive strategy, and the product of bipartisan compromise. It offers Republicans who want a comprehensive approach the choice to make sure Big Oil pays its fair share."

Minority Leader John Boehner (R-OH) issued a release on September 17, saying, "House Democrats say they want to 'stimulate' the economy, but last night nearly every single one of them voted against the bipartisan energy bill authored by Representatives John Peterson (R-PA) and Neil Abercrombie (D-HI) to lower gas prices on behalf of working families and small businesses -- including 24 Democrats who are cosponsors of the Peterson-Abercrombie bill. That’s correct, 24 Democrats flip-flopped, repudiated their past statements of support and cosponsorship for the bipartisan Peterson-Abercrombie bill by voting against it [i.e. voting for H.R. 6899]. And by rejecting the Peterson-Abercrombie bipartisan plan, Democrats proved once and for all that yesterday’s debate was about nothing more than providing political cover for vulnerable Democrats on the eve of an election -- and not about passing 'all of the above' energy reforms to make a real difference in lowering gas prices."

Boehner's release continues, "House Democratic leaders denied Republicans the opportunity to have a full debate and honest vote on the American Energy Act [See WIMS 8/13/08, (H.R. 6566)], the Republican bill that does 'all of the above' to help working families and small businesses struggling with record fuel costs. This fight is not over. House Republicans will continue to fight for an honest debate and vote on the American Energy Act -- legislation that increases American energy production off our coasts, in the Inter-Mountain West, and on Alaska’s remote North Slope to help lower gas prices, encourages more efficiency and conservation, and accelerates the development of more alternative and renewable fuels through additional funding from increased drilling royalties. This is the bill the American people support and expect. How much longer will Speaker Pelosi block it?"

In an earlier release on September 16, Boehner said, "Written behind closed doors, with their special interest allies who are on the record in support of higher gas prices, and finally released to the public in the dark of night, the Democrats’ latest ‘no energy’ bill once again defies the will of the American people who support a comprehensive approach to lower gas prices. This Democratic bill permanently locks away some 88 percent of the best American oil resources on the Outer Continental Shelf. It blocks valuable and job-creating energy production on Alaska’s North Slope and Inter-Mountain West. And it stops efforts to produce more and cheaper energy through emissions-free nuclear and coal-to-liquids technologies. Rather than an ‘all of the above’ approach, this bill is very nearly ‘none of the above.’ The American people have been waiting for months for this Democratic Congress to give them a meaningful, honest vote on more American energy production, but instead, Speaker Pelosi has served-up a legislative hoax and a debate rigged to once again defy their will.”

The American Petroleum Institute (API) issued a release saying, "The House energy bill is a dry hole for American consumers. The bill does little to increase U.S. oil and natural gas supplies and, in fact, may well result in less domestic production, which would make America more dependent on foreign energy. The plan guarantees $18 billion in new taxes on the industry, which would discourage new energy production. At the same time, it offers the illusion of increased offshore access but with no guarantee that energy would ever be produced in new areas on the Outer Continental Shelf. The bill all but guarantees that states will not agree to allow drilling off their coasts since the legislation does not permit states to share revenue derived from lease bids and production royalties. The arbitrary 50-mile buffer puts offlimits some of the most potentially promising areas for oil and natural gas production. In fact, under this bill, 15 billion barrels, or more than 80 percent of the OCS oil resources under current moratoria, would remain off-limits."

The Independent Petroleum Association of America (IPAA) issued a release saying, "IPAA commends Congress for its bipartisan recognition that expanded offshore development in the United States is essential to America’s energy future. This is a good first step that will yield benefits to the American people. However, the sum of the provisions outlined in H.R. 6899 would hamper our continued efforts to increase the supply of American energy resources to help secure the future of America’s economy and our national security. We believe that all of America’s oil and natural gas resources can be developed in an environmentally safe manner. For far too long, America’s offshore development has been unnecessarily prohibited. Finally, Congress appears to be ready to address this key issue. While IPAA commends the Congress for recognizing the importance of developing America’s offshore resources, H.R. 6899 falls short of an effective program and presents new, inappropriate burdens."

Sierra Club issued a release saying, "Today, House Republicans were given a chance to vote on a true "all-of-the-above" energy package that includes both clean energy and expanded offshore drilling. But despite significant offshore drilling provisions in the bill, an overwhelming number of House Republicans attempted to reject the bill and force a substitute to the House Leadership’s energy package, complaining that it did not go far enough to help oil companies -- fortunately they failed. . . Congress should take this opportunity to help pull us out of our energy crisis by creating a true, comprehensive, 'all of the above' energy compromise. While far from ideal, the energy package offered by Democratic leadership in the House at least included significant investment in clean energy through a Renewable Energy Standard, improved public transit and green building measures, and an extension of clean energy tax credits. Congress should protect consumers through a crackdown on oil speculation and drilling royalty loopholes, and offers low-income energy assistance. Of course the House package also included compromise provisions for expanded offshore drilling but a package of clean energy measures would help solve our energy crisis and protect consumers--a stark contrast to a drill-only policy, which will do nothing but endanger our coasts and add to Big Oil's profits. "

The Natural Resources Defense Council (NRDC) said, "The House energy bill falls short of what Americans really need to meet our energy challenges. Big Oil is playing off the fears Americans faced with rising gas prices and is distorting the facts. Unfortunately, the politics of Big Oil and its allies have resulted in bad policies that will not provide real solutions. We want Congress to make sure that Big Oil doesn’t continue to load us up with dirty energy that overshadows the clean, renewable, homegrown solutions Americans need.”

Audubon issued a release saying, "We are deeply disappointed with the House energy bill due for a vote today. Instead of adopting forward-looking policies that will address our long-term energy needs, Congress is intent on playing politics. . . This bill does too little to bring about America's clean energy future. When the political season is over we will urge Congress to quickly adopt measures we know will help permanently end our dependence on fossil fuels, reduce global warming pollution, and create thousands of clean energy jobs to restore America's position as an energy leader."

National Wildlife Federation (NWF) said, “While the House bill takes positive steps on renewable energy and energy efficient buildings, those provisions are outweighed by a last-minute change lifting a longstanding prohibition on commercial oil shale leasing. Much of the public attention around Congressional energy bills has been focused on offshore oil leasing provisions, but oil shale is an unconscionable environmental threat. “Oil shale is a disaster not only for America's western wilderness and water supply but for our climate. . . America is on the verge of an explosion of clean energy jobs. It’s time for Congress to light the fuse.”

Access details of the roll call vote (click here). Access a release from Speaker Pelosi with a video of floor remarks (click here). Access a release from Minority Leader Boehner (click here). Access a previous release from Boehner (click here). Access legislative details for H.R. 6899 (click here). Access legislative details for H.R. 6566 (click here). Access a release from API (click here). Access a release from IPAA (click here). Access a release from Sierra Club (click here). Access a release from NRDC (click here). Access a release from Audubon (click here). Access a release from NWF (click here). [*Energy]

House Debates Democrats' Energy Bill (H.R. 6899)

Sep 16: The U.S. House began heated debate on the Comprehensive American Energy Security and Consumer Protection Act (H.R.6899), sponsored by Representative Nick Rahall (D-WV) with cosponsors John Dingell (D-MI), George Miller (D-CA) and Gene Green (D-TX). The bill, according to its description is: To advance the national security interests of the United States by reducing its dependency on oil through renewable and clean, alternative fuel technologies while building a bridge to the future through expanded access to Federal oil and natural gas resources, revising the relationship between the oil and gas industry and the consumers who own those resources and deserve a fair return from the development of publicly owned oil and gas, ending tax subsidies for large oil and gas companies, and facilitating energy efficiencies in the building, housing, and transportation sectors, and for other purposes.

Much of the early debate was on a point of order over a provision that would provide $1.2 billion non-energy related benefit solely to New York City. Republicans argued that the provision was clearly an "earmark" benefiting only on location. Republicans also complained that the bill was not available until late last evening and has not been reviewed by any House Committee. Republicans said "no body expects this bill to become law." Minority Leader John Boehner (R-OH) said "enough is enough. . . We have no opportunity to bring forth our alternative American Energy Act. . . " He said the Democrats' bill is "nothing but a hoax on the American people."

House Speaker Nancy Pelosi (D-CA) issued a release entitled, "America - It's Time For An Oil Change." Pelosi said, "Today, the House will consider the Comprehensive American Energy Security and Consumer Protection Act, H.R. 6899. The legislation is a bold step forward, helping end our dependence on foreign oil and increase our national security. It launches a clean renewable energy future that creates new American jobs, expands domestic energy supply--including new offshore drilling, and invents and builds more efficient vehicles, buildings, homes, and infrastructure. It will lower costs to consumers and protect the interests of taxpayers. It is a comprehensive strategy, and the product of bipartisan compromise. It offers Republicans who want a comprehensive approach the choice to make sure Big Oil pays its fair share."

According to Pelosi's release and explanation of the bill it would provide for: Royalty Reform: Making Oil Companies Pay Their Fair Share for Drilling on Public Lands; Repeal of Tax Subsidies for the Big 5; Releasing Oil from the Strategic Petroleum Reserve; Mineral Management Service Ethics Reform; Investing in Renewable Energy, Energy Efficiency and Home Heating Assistance (LIHEAP), Paid for by Making Oil Companies Pay their Fair Share for Drilling on Public Lands (98/99 leases); Electricity from Clean Renewable Sources; Renewable Biomass; Responsible Compromise on Drilling on the Outer Continental Shelf; Require Oil Companies to Drill on the 68 Million Acres of Federal Lands They Already Control; Increase Domestic Oil Production in Alaska; Promote Natural Gas, E-85 Infrastructure; Carbon Capture & Sequestration; Oil Shale Development With State Approval; Strengthen Energy Efficiency in Buildings to Bring Down Costs; Incentives for Energy Efficient Homes; and Saving Energy Through Public Transportation Act.

Access legislative details for H.R. 6899, including a link to the text of the legislation (click here). Access the House Floor votes as they occur (click here). Access a lengthy release from Speaker Pelosi including further explanation of the above highlights and a graphic to explain the offshore drilling provision (click here). [*Energy]

Senate Leaders Speak Out At Energy Summit

Sep 12: At the Senate-Wide Energy Summit [See WIMS 9/11/08, & 9/12/08], both Senate Majority Leader Harry Reid (D-NV) and Senate Minority Leader Mitch McConnell (R-KY) expressed their views on energy issues which will guide their parties in upcoming votes on energy bills expected very soon, perhaps this week.

Senate Majority Leader Reid said, “We have seen two diverging trends in the energy debate – one very encouraging, one less helpful. On one side, as the fall campaign heats up, we have seen energy move into a more partisan realm, with candidates looking to score points with sound bites that solve nothing. But on the other side, we are seeing an increasing consensus that when all the political dust settles, our energy challenges cannot fall victim to partisan bickering. “We see this encouraging trend toward bipartisanship in the Gang of 22 [outgrowth of the Gang of 10]. . .

"I think it’s important we all agree that a problem as big as this requires comprehensive solutions. In all the places where truth counts more than slogans, it is agreed that there is no single ‘magic bullet.’ We need to decrease our consumption of fossil fuels. We can conserve energy painlessly and cost-effectively by improving efficiency in household appliances and the ways we build new buildings. We also need to demand and expect better fuel efficiency from our automobiles. . . one part of the solution is the Advanced Technology Vehicle Manufacturing Incentives Program.

“We need to hasten our transition away from oil. That means incentivizing the production of home-grown renewable alternatives. We also need to bring prices down for the oil we use. That means going after any speculator, price gouger or oil-producing nation who game or cheat the system and leave American consumers paying the bill. . . The transition from the fossil fuels of old to the renewable fuels of tomorrow can create jobs, protect our national security and cleanse our environment. . . "

Minority Leader McConnell said, "Republicans, I assure you, are open to any reasonable suggestion that will lead to a concrete, meaningful result. And it is with this in mind that Republicans have already coalesced around a simple and straightforward principle that we believe could and should form the basis of bipartisan legislation on this issue: we need to both find more American energy and use less.

“We know that we can ' find more ' domestic energy by means of deep sea exploration off our coasts and by developing Western oil shale deposits which, according to conservative estimates, represent at least 800 billion barrels of recoverable oil. . . But it must be said at the outset that conservation alone is clearly insufficient. While all of us may envision a future in which America does not run on fossil fuels, this is not today’s reality. Nor will it be for many years to come. We need to be realistic and recognize that -- in the near term -- we will still need more oil and gas. And I believe that this oil and gas should come from America’s own ample domestic reserves -- not from the Middle East. We cannot, and should not, ask people like rural Kentuckians to assume the burden of this transition when we have enormous energy reserves under our own feet, reserves that the government has made increasingly difficult to tap. . .

“The American people are demanding that Congress do something to alleviate high gas prices, and to do something significant. Some of the proposals we have heard from the other side make an effort. But, by and large, they fall seriously short. They either ignore the need for increased domestic supply, or they’re disproportionally meager in light of the severity of the crisis. . . We have the resources. Americans want us to use them. And they are exactly right. . ."

Access the complete statement from Senator Reid (click here). Access the complete statement from Senator McConnell (click here). Access the Summit meeting website for links to all testimony and link to a 5 hour and 20 minute webcast (click here, testimony should be posted soon). [*Energy]