House Committee Approves Waxman-Markey ACES (H.R. 2454) 33 To 25

May 21: Following the marathon, 4-day markup session, the House Energy and Commerce Committee approved H.R. 2454, the American Clean Energy and Security Act (ACES), by a vote of 33 to 25, at about 8:30 PM. In the end, 32 Democrats and 1 Republican voted for the Committee amended bill. Three Democrats voted against the bill: Mike Ross, AR; Jim Matheson, UT; and G.K. Butterfield, NC. The one Republican voting for the bill was Representative Mary Bono Mack, CA. Despite the mostly party-line vote, the Republican leadership on the bill, Ranking Member Joe Barton (R-TX) and Fred Upton (R-MI), congratulated Committee Chairman Henry Waxman on his leadership, control and fairness in allowing the Republican minority to present and debate their amendments. The Republicans encouraged the Democrats to exercise the same leadership when the bill reaches the House Floor.

Chairman Waxman called the legislation "a comprehensive approach to America's energy policy that charts a new course towards a clean energy economy." He said, "Today the Committee took decisive and historic action to promote America's energy security and to create millions of clean energy jobs that will drive our economic recovery and long-term growth. This bill, when enacted into law this year, will break our dependence on foreign oil, make our nation the world leader in clean energy jobs and technology, and cut global warming pollution. I am grateful to my colleagues who supported this legislation and to President Obama for his outstanding leadership on these critical issues."

Energy and Environment Subcommittee Chairman Ed Markey (D-MA) said, "With this plan, we will shape a new energy destiny for our country, where we innovate more and pollute less. Today we have chosen bold action to preserve good paying jobs here in America and preserve our planet. In just eight weeks, Chairman Waxman and I, working with our entire committee, have moved us farther down the path toward energy independence than our country had moved in the past eight years."

According to a release from the Committee, the 900+ page ACES, will create millions of new clean energy jobs, save consumers hundreds of billions of dollars in energy costs, enhance America's energy independence, and cut global warming pollution. The Committee indicated that the legislation has received wide support from electric utilities; energy companies; manufacturing, industry, and corporate companies; labor unions; and community and environmental organizations.

To meet these goals, the legislation has four titles: (1) A clean energy title that promotes renewable sources of energy, carbon capture and sequestration technologies, clean electric vehicles, and the smart grid and electricity transmission. (2) An energy efficiency title that increases energy efficiency across all sectors of the economy, including buildings, appliances, transportation, and industry. (3) A global warming title that places limits on emissions of heat-trapping pollutants. The legislation would cut global warming pollution by 17% compared to 2005 levels in 2020, by 42% in 2030, and by 83% in 2050. These are science-based targets and within the range agreed to by the U.S. Climate Action Partnership (USCAP) -- a diverse coalition of leading businesses and environmental NGOs. (4) A title that protects U.S. consumers and industry and promotes green jobs during the transition to a clean energy economy.

A release from Ranking Member Barton indicated that, "House Democrats used political muscle and party loyalty on Thursday to ram through an anti-global warming bill that opponents caution could cost a family of four $2,937.38 a year. The action came after a marathon committee session that spent 37 hours over four days methodically rejecting 56 separate Republican efforts to learn the full cost of the bill, to prevent scams in its trading system and even get the feds out of hot tubs."

Barton said, “We have legitimate and serious concerns about the redirection of our energy policy in America, which is the foundation and bedrock of our free market economy, the most productive and the largest in the world. A third of the world’s GDP is based on the United States economy and that economy for over 150 years has been based on a free market allocation of resources in the energy sector. This bill makes fundamental changes in that basic philosophy. One estimate puts its price per family of four at $29,373.85 over 10 years. Another estimate is that it will raise electricity rates 90 percent after adjusting for inflation, and boost gasoline prices 74 percent and natural gas prices 55 percent.”

On a macro level, Barton predicted that “a cap-and-trade program will never be made to work in an economy as diverse and complex as the United States. It’s just not possible, and trying to make it work is going to cost money and jobs. How many U.S. industries do we want to bankrupt in one markup, just to achieve a temperature impact of less than one degree Fahrenheit in the next 100 years?”

Republicans offered a major alternative substitute (See link below) to the ACES bill which was defeated by a vote of 35 no, 19 for, and 2 present. Barton said, “This substitute in any other Congress would be considered very progressive and very moderate. But because it still attempts to use the market system and the price mechanism to let people make free choices on which forms of energy to use and how to use them, it is not as directive and invasive by government as the pending legislation. It does not have a cap and trade program. We do accept that it would be better for the economy if we were less carbon-intensive, so instead of a cap-and-trade mechanism that’s very complicated, we take a page out of the current the law, the Clean Air Act, and set performance standards. We set a limit on the amount of CO2. This substitute is comprehensive. It would work. It would be good law.”

In a release from USCAP, the industry-environmental coalition said, "While the current bill does not reflect every USCAP recommendation - and in some instances addresses issues not considered in the Blueprint or in more detail than the Blueprint - it is a good foundation for moving forward in the Congress. As this process unfolds, we are committed to pursuing further opportunities to make the bill even more effective and economically sustainable. In the weeks ahead, USCAP and its members will be working actively with all members of Congress in both chambers and all parties to seek common ground - and to find common sense solutions. We are committed to a path forward that will reduce greenhouse gas emissions, protect consumers and advance new technologies that will lead the transition to a low carbon economy."

USCAP members include: Alcoa - Boston Scientific - BP America - Caterpillar - Chrysler - ConocoPhillips - Dow - Duke Energy - DuPont - Environmental Defense Fund - Exelon - Ford - FPL Group - GE - GM - John Deere - Johnson & Johnson - Natural Resources Defense Council - The Nature Conservancy - NRG Energy - PepsiCo - Pew Center on Global Climate Change - PG&E - PNM Resources - Rio Tinto - Shell - Siemens - World Resources Institute - Xerox.

The American Petroleum Institute (API) issued a statement from President Jack Gerard saying, “While the bill has laudable environmental and economic goals, its inequitable system of allocations remains intact and if enacted would have a disproportionate adverse impact on consumers, businesses and producers of gasoline, diesel fuel, jet fuel, crude oil and natural gas. . . As a recent independent analysis shows, this inequitable approach, by itself, will produce additional unemployment, driving annual job destruction totals related to the legislation to more than one million. Another independent study projects job losses more than double this – up to 2.7 million net jobs lost annually, even with new green jobs created. According to one of these reports, an average family will pay an additional $1,500 a year for energy and 74 percent more for gasoline. Today, that would mean gasoline prices above $4.00 a gallon, an increase nearly equivalent to a ten-fold rise in the federal gasoline tax.”

A broad coalition of environmental and other advocacy groups indicated, "While a week of debate failed to adequately strengthen protections for consumers, communities, and the climate in this bill, it erased all doubt of who will benefit most from it: Big Business. Despite the best efforts of Chairman Waxman, the decision-making process was co-opted by oil and coal lobbyists determined to sustain our addiction to dirty fossil fuels, even as the country stands ready to rebuild our economy and clean up the environment with real clean energy. The resulting bill reflects the triumph of politics over science, and the triumph of industry influence over the public interest. . ."

The coalition (Greenpeace, et al) includes: Greenpeace USA * Friends of the Earth * Public Citizen * Citizen Power * Center for Biological Diversity * Citizens Action Coalition of Indiana * TURN—The Utility Reform Network * Sustainable Energy & Economy Network * Green Delaware * Massachusetts Environmental Energy Alliance * Massachusetts Forest Watch * Coal Moratorium Now! * Rainforest Action Network * International Rivers * Energy Justice Network.

Access a release from the Committee and link to the bill, supporting documents and the 4 individual days of markup including amendments and videos (click here). Access a lengthy release from Rep. Barton (click here). Access a release on the Republican alternative and link to a summary of the substitute (click here). Access a release from USCAP with links to additional information (click here). Access a release from API (click here). Access a release from Greenpeace, et al (click here).

UNFCCC Releases Kyoto Protocol Replacement Negotiating Text

Yvo de Boer, Executive Secretary of the United Nations
Framework Convention on Climate Change

May 20: Yvo de Boer, Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC) announced that progress towards achieving an ambitious new treaty on the reduction of greenhouse gas (GHG) emissions is gathering pace. The UNFCCC posted online the text to be negotiated by nations this December 7-18, in Copenhagen. De Boer said, “This document marks an important point on our road. It's the first time [a] real negotiating text will be on the table which can serve as a basis for governments to start drafting a Copenhagen agreed outcome.”

Governments attending the Copenhagen conference on climate change are expected to adopt an agreement to succeed the Kyoto Protocol, whose first commitment period for reducing greenhouse gas emissions ends in 2012. The negotiations on reductions to be achieved by industrialized countries after 2012 center on issues related to the scale of the reductions, improvements to emissions trading and the Kyoto Protocol's carbon offset mechanisms, as well as concerns relating to land-use change and forestry.

The 53-page negotiating text covers a shared vision for long-term cooperative action, along with an action plan for strengthening adaptation and mitigation measures, as well as finance, technology and capacity-building. De Boer said, “Meanwhile, the United States has committed to a Copenhagen agreement and a clean energy future. Industrialized countries are giving developing nations due credit for the climate change strategies they already have in place." He stressed that with only 199 days before Copenhagen, time gets tighter but the world is not standing still on climate change.”

According to the brief document summary, "This document was prepared by the Chair of the Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA) in response to the request from the AWG-LCA at its fourth session. The document presents a negotiating text, contained in the annex, which aims to provide a starting point for the negotiations at the sixth session of the group by reflecting ideas and proposals by Parties in a structured and comprehensive but concise manner. The text takes account of ideas and proposals contained in the most recent submissions from Parties received by the secretariat from the end of the fifth session up to 5 May 2009, of the ideas and proposals submitted previously. . ."

Before the UNFCCC conference in Copenhagen, some 3,000 participants, including government delegates, representatives from business and industry, environmental organizations and research institutions will gather in Bonn from June 1-12, for talks on the negotiating text. The meeting follows an early April meeting of the UNFCCC parties in Bonn [See WIMS 4/9/09] and a meeting of the "Major Economies" in late April in Washington, DC [See WIMS 4/29/09]. Following the Bonn meeting in June, and prior to the Copenhagen meeting, the Major Economies Forum on Energy and Climate Change will hold another meeting in June, the Group of 8 summit will be held in July, and the UN Secretary-General will hold a high-level meeting in September.

Access a release from the UN (click here). Access the Negotiating Document (click here). Access the Agendas and more information on the June meetings (click here). Access the Danish COP 15 host website (click here). Access the UNFCCC website for more information (click here). Access the United Nations Climate Change Gateway (click here).

New UCS National Blueprint For A Clean Energy Economy

May 19: According to the findings of a two-year, peer-reviewed study by the Union of Concerned Scientists (UCS), with the right policies in place, the United States could dramatically cut the heat-trapping emissions that cause global warming and, at the same time, lower energy costs in every region of the country. UCS President Kevin Knobloch said, "We can protect the environment and Americans' pocketbooks by adopting the right policies. Our analysis shows we have the technology and the know-how to do this. What we now need is the political will."

The report, Climate 2030: A National Blueprint for a Clean Energy Economy, used a modified version of the Department of Energy's National Energy Modeling System and concluded that the United States could meet an emissions-reduction cap of 26 percent below 2005 levels by 2020 and 56 percent below 2005 levels by 2030. The average U.S. household would realize net savings of $300 in 2020 and $900 in 2030, while businesses collectively would see net savings of $35 billion in 2020 and nearly $130 billion in 2030. Collectively, households and businesses would see net savings of $255 billion in 2030.

UCS found that implementing a cap on emissions with a suite of energy and transportation policies would trigger investments in efficiency improvements, renewable energy technologies, clean vehicles, better transportation choices, and low-carbon technologies and fuels. Household and business savings on transportation fuel costs and on electricity, natural gas and heating oil bills would more than offset those investments and any rise in energy prices.

UCS calculated net savings for nine regions of the country, basing the geographic designations on the Department of Energy's modeling system. As an example, in the East North Central region, which includes Illinois, Indiana, Michigan, Ohio and Wisconsin, the UCS blueprint’s combined policies would provide net savings of $213 for the average household in 2020 and $808 in 2030. Businesses in the region collectively would save $2.2 billion in 2020 and $15.8 billion in 2030.

Access a lengthy release and links to various regional analyses (click here). Access an overview and links to an executive summary and the complete 239-page report and more (click here).

President Resolves Differences On CAFE & Auto GHG Management

May 19: In a White House Rose Garden event with many distinguished attendees, President Obama announced his national autos program to adopt uniform Federal standards to regulate both fuel economy and greenhouse gas (GHG) emissions while preserving the legal authorities of DOT, EPA and California. Attending the ceremony were the CEO's of major U.S. and foreign auto companies, the heads of U.S EPA and DOT, and other departments, Governors of MI, CA, and MA, Senators from MI and CA, major environmental organizations and others. The President's program resolves years of bitter controversy and legal wrangling over CAFE (Corporate Average Fuel Economy] standards, the "California waiver" and related energy and climate change issues.

The program covers model year 2012 to model year 2016 and ultimately requires an average fuel economy standard of 35.5 mpg in 2016. The result is a projected reduction in oil consumption of approximately 1.8 billion barrels over the life of the program and a projected total reduction in greenhouse gas emissions of approximately 900 million metric tons. This groundbreaking policy is good for consumers, good for the auto industry and it helps our country by reducing pollution and promoting energy independence.

Ten car companies and the UAW have embraced the national program because it provides certainty and predictability to 2016 and includes flexibilities that will significantly reduce the cost of compliance. The program also honors President Obama’s commitment to reconsider the denial of the California waiver by the Bush Administration. Under the agreement, EPA would grant California's request to enforce its state clean car standards while the U.S. develops harmonized national emission standards and fuel economy standards under Federal law. Significantly, the nation's automakers would drop long-standing litigation over the state clean car standards.

According to a White House fact sheet, the resolution would be good for consumers, the economy and the country. The fact sheet indicates that consumers will receive savings in increased fuel efficiency; maintain a choice of vehicles such as size of cars, trucks and SUVs; and benefit from reduced air pollution, the reduction of greenhouse gas emissions and other conventional pollutants.

The economy and auto companies would benefit by having one national policy for all automakers; the potential to lower compliance costs for automakers by avoiding a patchwork of fuel efficiency and pollution rules; providing clarity, predictability and certainty concerning the rules; and providing flexibility on how to meet the expected outcomes and the lead time needed to innovate.

Finally, the country would benefit by reducing the dependence on oil (1.8 Billion barrels of oil cumulatively, over the lifetime of the program) and significant reductions in greenhouse gas emissions (savings equivalent to taking 177 million of today's cars off the road). And, the program would result in historic collaboration between EPA and DOT, and cooperation and support between CEOs, Governors, the UAW, the environmental community and others.

President Obama said, "In the past, an agreement such as this would have been considered impossible. That is why this announcement is so important, for it represents not only a change in policy in Washington, but the harbinger of a change in the way business is done in Washington. As a result of this agreement, we will save 1.8 billion barrels of oil over the lifetime of the vehicles sold in the next five years. And at a time of historic crisis in our auto industry, this rule provides the clear certainty that will allow these companies to plan for a future in which they are building the cars of the 21st century."

According to a White House release, this groundbreaking policy delivers on the President’s commitment to enact more stringent fuel economy standards and represents an unprecedented collaboration between the Department of Transportation (DOT), the Environmental Protection Agency (EPA), the world’s largest auto manufacturers, the United Auto Workers, leaders in the environmental community, the State of California, and other state governments.

EPA Administrator Lisa P. Jackson said, "The President brought all stakeholders to the table and came up with a plan to help the auto industry, safeguard consumers, and protect human health and the environment for all Americans. A supposedly 'unsolvable' problem was solved by unprecedented partnerships. As a result, we will keep Americans healthier, cut tons of pollution from the air we breathe, and make a lasting down payment on cutting our greenhouse gas emissions." Carol Browner, Assistant to the President for Energy and Climate Change said, "A clear and uniform national policy is not only good news for consumers who will save money at the pump, but this policy is also good news for the auto industry which will no longer be subject to a costly patchwork of differing rules and regulations. This an incredible step forward for our country and another way for Americans to become more energy independent and reduce air pollution."

Dave McCurdy, president and CEO, Alliance of Automobile Manufacturers said, "For seven long years, there has been a debate over whether states or the federal government should regulate autos. President Obama’s announcement ends that old debate by starting a federal rulemaking to set a National Program. Automakers are committed to working with the President to develop a National Program administered by the federal government. What’s significant about the announcement is it launches a new beginning, an era of cooperation. The President has succeeded in bringing three regulatory bodies, 15 states, a dozen automakers and many environmental groups to the table. We’re all agreeing to work together on a National Program."

Frances Beinecke, President of the Natural Resources Defense Council (NRDC) said, "President Obama, the state of California, the auto industry, and environmental leaders have come together around a global warming solution that will strengthen our economy and put the auto industry on the path to a clean energy future. The future of the auto industry lies in making cleaner, more fuel-efficient vehicles that reduce global warming pollution and our dependence on oil. These new national rules build on California's ground-breaking standards to tackle global warming pollution from cars and trucks. Starting in model year 2012, the new standards will deliver cleaner, higher-mileage cars nationwide, cut global warming pollution, and save drivers money every time they fill up."

Access a release from the White House (click here). Access a White House fact sheet (click here). Access a lengthy release from Alliance of Automobile Manufacturers with an historical summary (click here). Access a release from the NRDC (click here). [Note: Many others issued releases on this development; too numerous to cover all]

Markup Begins On Waxman-Markey ACES Bill

May 18: Chairman Henry Waxman (D-CA) and Subcommittee Chairman Edward Markey (D-MA) officially introduced H.R. 2454, The American Clean Energy and Security Act (ACES), late Friday, May 15. The Energy and Commerce Committee began markup of the bill today (May 18) at 1:00 PM and will complete consideration before the Memorial Day recess. The hearing today, began with opening statements from Committee members. There are 36 Democrats and 23 Republicans on the full Committee. Opening comments were completed and the Committee will reconvene tomorrow at 10:AM for what will likely be an all day and into the night session; with more to follow this week. Live video of the meetings is available at the website below.

Republicans remained united in their opposition to the bill. On May 14, Republicans members of the Committee, led by Ranking Member Joe Barton, (R-TX), outlined what they are proposing as an alternative to the Waxman-Markey -- the Energy Production, Innovation, and Conservation Act, which has not yet been formally introduced [See WIMS 5/15/09]. Republicans are expected to offer a large number of amendments to the Waxman-Markey bill; and a complete substitute.

Waxman said, "The legislation will create millions of new clean energy jobs, save consumers hundreds of billions of dollars in energy costs, promote America's energy independence and security, and cut global warming pollution. In support of these goals, this legislation ensures that consumers and industries in all regions of the country are protected. I look forward to working with all members of the Committee to approve this legislation to make America the world leader in new clean energy and energy efficiency technologies." Markey said, "This bill marks the dawn of the clean energy age. This is a once-in-a-generation opportunity to revive our economy and create millions of good-paying clean energy jobs. After months of hearings and discussions with my colleagues, I am pleased that we have produced a bill that has widespread support from all regions of the country."

The formal release of the 932-page bill Friday followed a release earlier the same day of a document summarizing how the emission allowances would be allocated in the current version of the bill [See WIMS 5/15/09]. The bill has been referred to the Waxman's Committee on Energy and Commerce, and in addition to the Committees on Foreign Affairs, Financial Services, Education and Labor, Science and Technology, Transportation and Infrastructure, Natural Resources, Agriculture, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Fred Krupp, president of Environmental Defense Fund (EDF) commented on the latest version of the bill saying, "This bill can win not only the support of environmentalists and business, but also the diverse group of regional interests that make up the Congress. It's a watershed agreement. The bill includes an important and aggressive short-term target to reduce greenhouse gas emissions 17% below 2005 levels by 2020 -- right in the middle of the range called for by the 30 leading companies and non-profit groups in the U.S. Climate Action Partnership [USCAP], of which EDF is a member.

"The agreement delivers a strong cap on pollution with a smart plan to protect family budgets and economic competitiveness, and that's precisely the formula we need. The latest government study of the Waxman-Markey bill estimates that the emissions cap can be achieved for as little as $98 per household per year -- about a dime a day per person -- if the legislation is designed to keep costs down. Importantly, more than half of the value of emissions permits under the agreement will be used to protect consumers and keep utility rates low. In the early years of the program, it will allocate permits at no cost to regulated local electricity and natural gas distributors, which will pass the value of the permits directly to households. Permit value will also be used to keep energy-intensive U.S. industries competitive. Ultimately, all permits under the cap will be auctioned."

The Union of Concerned Scientists (UCS) did an analysis of the latest draft and commented that, "Congressmen Waxman and Markey have done an admirable job satisfying a lot of competing interests. But now, as the bill moves forward, Congress needs to strengthen many of the bill's provisions to ensure that we dramatically cut emissions, save consumers money, and strengthen our economy with a well-designed climate and energy policy." UCS reviewed the allocation categories listed by the committee. Below is the group's assessment, including its estimates of how much money Congress would allocate. (Note: Based on a projected carbon price of $17 per ton in 2020, when most emissions sources will be covered under the bill, each 1 percent of allowance allocation would be worth approximately $750 million.)

Access a brief announcement from Waxman and Markey (click here). Access legislative details for H.R. 2454 (click here). Access the complete statement from EDF (click here). Access a release with a summary of the UCS allocation analysis (click here). Access the Committee website for a link to the live video (click here).

Details On Allocation Of Emission Allowances Under ACES

May 15: Following yesterday's release by the Committee on Energy and Commerce of details of agreements on a Combined Efficiency and Renewable Electricity Standard (RES); allocation of allowances to the automobile industry; and major provision for the allocation of allowances to major energy-intensive, trade-exposed industries [See WIMS 5/14/09] ; Chairman Henry Waxman (D-CA) and Subcommittee Chairman Ed Markey (D-MA) released a document summarizing how the emission allowances will be allocated in the current version of the American Clean Energy and Security Act of 2009 (ACES). The Committee is scheduled to begin the markup on Monday, May 18, at 1:00 PM, and Chairman Waxman has pledged to get the bill approved by the full Committee before the Memorial Day recess.

According to the 2-page summary, emission allowances will be allocated to accomplish three primary goals: (1) to protect consumers from energy price increases; (2) to assist industry in the transition to a clean energy economy; and (3) to spur energy efficiency and the development and deployment of clean energy technology. A small amount of allowances will be allocated to prevent deforestation and support national and international adaptation efforts and for other purposes.

Under consumer protections the Committee lists protection from Electricity Price Increases; Natural Gas Price Increases; Home Heating Oil Price Increases; and protections for Low- and Moderate-Income Households. The electricity sector will receive 35% of the allowances, representing 90% of current utility emissions; and local electric distribution companies will receive 30% of the allowances. Merchant coal and long-term power purchase agreements will receive 5% of the allowances. The allowances will be distributed according to a formula recommended by the utility industry. Local natural gas distribution companies will receive 9% of allowances, and states will receive 1.5% of allowances for programs to benefit users of home heating oil and propane. All allowances would phase out over a five-year period from 2026 through 2030.

15% of allowances will be auctioned each year and the proceeds of these allowances will be distributed to low- and moderate-income families to protect them from other energy cost increases. These allowances will be distributed through tax credits, direct payments, and electronic benefit payments and will not phase out.

Under the Transition Assistance for Industry, protection would be provided for Energy-Intensive, Trade-Exposed Industries, as described in the Inslee-Doyle agreement announced earlier [See WIMS 5/14/09]. In addition, oil refiners will receive 2% of allowances starting in 2014 and ending in 2026.

Under Energy Efficiency and Clean Energy Technology allowances would be provided for: Investments in Carbon Capture and Sequestration; Renewable Energy and Energy Efficiency; Advanced Automobile Technology; Research and Development. Additional allowances would be provided for Other Public Purposes including: Supplemental Reductions from Preventing Tropical Deforestation; Domestic Adaptation (wildlife and natural resource protection, public health and other domestic adaptation purposes); International Adaptation and Clean Technology Transfer; and Worker Assistance and Job Training. Unallocated allowances will be auctioned to ensure budget neutrality and the remainder will be used for consumer protection.

While the Committee Democrats have generally agreed to the compromise bill designed to accommodate the diversity of issues and interests within their party, Republicans have remained opposed to the bill. On May 14, Republicans members of the Committee, led by Ranking Member Joe Barton, (R-TX), outlined what they are proposing as an alternative to the Waxman-Markey. They said their bill will be offered during the bill’s markup beginning next week.

Among other items the Republican bill would amend the Clean Air Act to overturn Massachusetts v. EPA; preempts state authority to regulate certain fuels and all gases from CAA regulation; provide regulatory certainty to once again invest in coal-fired generation; provide an all-encompassing alternative to a renewable portfolio standard; expand nuclear power development and open Yucca Mountain; repeals “decoupling” mandates; Retire the Vehicle Incentive Rebate program; create federal transmission grid facility siting authority; create a Volunteer Service Corps to focus on reforestation; expand exploration & production in the Outer Continental Shelf, Arctic coastal plain, and Oil Shale; provide tax incentives for alternative fuel vehicles and a $500 million prize for the first U.S. automobile manufacturer to produce and sell 50,000 economically feasible, super-fuel-efficient vehicles reaching 100 miles-per-gallon; encourage the use of clean coal-to-liquid technology; and provide a trust fund to promote the development of renewable and alternative energy.

Access the complete summary of allocation of the allowances (click here). Access a summary of the Republican bill (click here); and the complete draft (click here).

Major Breakthroughs Welcomed On Waxman-Markey ACES Bill

May 13: Following yesterday's official announcement that the full Committee on Energy and Commerce will begin formal markup of the American Clean Energy and Security Act of 2009 (ACES) bill on Monday, May 18, the Committee released details of an agreement on a Combined Efficiency and Renewable Electricity Standard (RES); an agreement on allocation of allowances to the automobile industry; and an agreement on a major provision for the allocation of allowances to major energy-intensive, trade-exposed industries.

Following the announcement of the agreements House Speaker Nancy Pelosi (D-CA) issued a statement saying, “I commend all the Members of the House Energy and Commerce Committee who have been working in good faith to find the first meaningful common ground on this landmark legislative effort to create millions of clean energy American jobs. Chairman Waxman and Chairman Markey have led this effort and have shown, with the diversity on their committee, that this Congress can craft national legislation that creates millions of jobs, puts us on a path toward energy independence, reduces the pollution that creates catastrophic climate change, and recognizes the regional differences that give this country its character and will provide a strong and diverse foundation for economic recovery. . .

“This bill will create entire new industries in the United States -- while preserving the manufacturing base that has been the foundation of our economy, helping industries such as steel, glass, and cement remain competitive in the global marketplace, and pioneering cleaner coal technologies for use here and around the world. This bill will strengthen our national security and make America a strong world leader in the new technologies to fight climate change. Perhaps most importantly, this bill makes sure that hard-working Americans reap the rewards of a clean energy economy, instead of paying the price.”

Representatives Henry Waxman, Edward Markey (D-MA), John Dingell (D-MI), Rick Boucher (D-VA), Bart Gordon (D-TN), and Mike Doyle (D-PA) released the details of the agreement on a Combined Efficiency and RES. The agreement provides for a combined 20% renewable energy and energy efficiency standard by 2020. By 2020, utilities would be required to obtain 15% of their electricity from renewable energy sources and demonstrate annual electricity savings of 5% from energy efficiency measures. If the governor of a state determines that utilities in the state cannot meet the 15% renewable requirement, the governor may reduce the renewable requirement to 12% and increase the efficiency requirement to 8%.

Representatives Waxman, Markey, and Dingell released the details of the agreement on allocation of allowances to the automobile industry. Under the agreement, the automobile industries will be provided incentives to make electric and advanced technology vehicles. The industry will receive 3% of allowances from 2012 through 2017, and after that will receive 1% of allowances through 2025.

Representatives Waxman, Markey, Doyle, and Jay Inslee (D-WA) released the details of the agreement on a major provision for the allocation of allowances to major energy-intensive, trade-exposed industries. Under the agreement, energy-intensive industries that compete in global markets will be provided incentives to improve their energy efficiency, as well as assistance to address the costs of transitioning to a clean energy economy. The incentives will be based on the amount of domestic production. Under the agreement: 15% of allowances in 2014 will be distributed to U.S. manufacturers that are in energy-intensive, trade-exposed industries; Manufacturers will receive allowances based on the average carbon emissions from the sector, scaled by the manufacturer's U.S. production; and to provide adequate transition time, the industries will receive allowances through 2025, at which time the President will determine whether they are still needed.

The announcement of the markup meeting and the agreements reached was also welcomed by the President. At the daily White House press briefing, press secretary Robert Gibbs responded to questions regarding the what was called, a "pretty substantial watering down of what the President wanted" in a bill and what the Democrats on the Committee had agreed to. Gibbs said, ". . .an overall emission target for 2050 is what the President campaigned on. Some of the intermediate standards for -- I think is it 2020 or 2025, the target instead of a 20 percent reduction below the 2005 levels is a 17 percent reduction. . . There's some slightly smaller targets in a renewable electricity standard, but . . . I think we would argue that while we may have intermediate hurdles, different slight changes in the hurdles along the path, we're addressing the need to do something about harmful greenhouse gas emissions; that we are incentivizing the creation of clean-energy jobs to meet both those emission targets as well as that renewable energy standard or electricity standard target.

"And finally, we're creating a market incentive to deal with pollution by setting that standard at a certain level and decreasing that standard so that the market can decide the actions that individual companies and businesses might take to deal with those changing standards. . . "

On a question about free allowances as opposed to auctioning them, Gibbs responded, "I think if this week for energy independence represents the clearing of a fairly large hurdle in getting a bill through committee and getting the House of Representatives on its way to getting something through to the Senate to the point where the President can sign a bill into law that creates a market incentive to create clean-energy jobs, a market incentive to reduce the amount of greenhouse gas we emit, and puts us a path toward energy independence, the President will find that to be a great success even if there are some slight changes in what he campaigned on. . . I think that represents quite a change in the way this debate has been conducted. And again, if we can look back at this being the beginning of something that we get on down the road, I think the President will believe it to be a tremendous success."

Access a release from Speaker Pelosi (click here). Access a statement and further details on the Combined Efficiency & RES agreement (click here). Access a statement and further details on the auto industry allowances agreement (click here). Access a statement and further details on the trade-exposed industries agreement (click here). Access the transcript of the White House press briefing (click here).

Democrats Reach Compromise On Waxman-Markey ACES Bill

May 13: Although no official announcement had been posted at press time, the Sierra Club issued a release indicating that the House Energy and Commerce Committee has reportedly reached agreement on a compromise version of the American Clean Energy & Security Act (ACES) [See WIMS 5/6/09], a comprehensive clean energy and climate plan. Other reports indicate that Chairman Henry Waxman (D-CA) is still planning to get a vote before Memorial Day and that markup could begin on Monday.

The Roll Call reported last evening that Waxman said, “We have resolved a good number of the issues" and adding that the bill remains on track to clear his panel next week. Member opening statements are reportedly planned for Thursday with the markup beginning on Monday. Roll Call said Waxman indicated, “I am optimistic. I believe we will have the votes to pass the bill [next week].”

Resolving the highly contentious issues among the broad diversity of the Democrats on the full Committee (i.e. Midwest, South, Oil States, Coal States, etc.), would be a major victory for the Obama Administration and there is a feeling that if Democrats can resolve their differences and agree to a compromise bill it could increase the chances for approval in the Senate. It is assumed that all Republicans will vote against the bill. There are 36 Democrats and 23 Republicans on the full Committee. Further details on tentative compromises are reported in a May 13, New York Times article (see link below).

Sierra Club's Executive Director Carl Pope issued a statement saying, "Chairmen Waxman and Markey have done heroic work in reaching agreement on the Energy and Commerce Committee around a comprehensive clean energy and climate plan, a critically important milestone that has faced seemingly insuperable obstacles. Their leadership has been truly remarkable. But it is clear that Big Oil, Big Coal and other polluters are still holding out for a Congressional bailout. They will continue to try to riddle this legislation with loopholes, water it down, and load it up with hundreds of billions of dollars in giveaways. They don't want it to deliver a recovery fueled by the clean energy jobs that America needs.

"These polluters are trying to strangle the clean energy economy in its cradle, steal the benefits of the clean energy future from the American people, and keep us addicted to oil and dirty coal. As this bill moves through the many remaining steps in the legislative process, we will work to strengthen this bill, so that it meets President Obama's challenge to Congress and the American people. Only a bill which accomplishes these three things can really jumpstart the green recovery, build the clean energy future, and end our addiction to oil and coal: (1) Dramatically ramp up America's transition to cleaner, cheaper energy sources like wind, solar, biomass, and geothermal; (2) Slash energy waste in order to cut emissions quickly and cheaply, while saving consumers money on their energy bills; and (3) Close the carbon pollution loophole and make polluters pay for the carbon pollution they emit."

Update at press time: Chairman Waxman officially announced the Committee on Energy and Commerce will meet in open markup session on Monday, May 18, 2009, at 1:00 PM, and subsequent days as necessary, in room 2123 Rayburn House Office Building, to consider the American Clean Energy and Security Act of 2009.

Access a release from Sierra Club (click here). Access the article from Roll Call (click here). Access the NYT article (click here). Access a Twitter feed for the latest update reports (click here).

Administrator Jackson Testifies On EPA FY 2010 Budget

May 12: The Senate Environment and Pubic Works Committee, Chaired by Senator Barbara Boxer (D-CA) held a hearing on the President’s proposed U.S. EPA Budget for FY 2010 [See WIMS 5/11/09]. The only witness was EPA Administrator Lisa Jackson. Both Senator Boxer and Ranking Member James Inhofe (R-OK) delivered opening comments.

Senator Boxer said, "During the previous Administration, there was rarely any good news in the EPA budget. The Bush Administration’s proposed Fiscal Year 2009 budget represented a 26% decline in resources over the prior eight years. I am pleased to see that this EPA budget represents a fresh, new commitment to safeguarding public health, including the health of our children, curbing the carbon pollution that causes global warming, and creating clean energy jobs." Boxer noted that EPA estimates that our nation has more than $200 billion in investment needs just for wastewater infrastructure. By 2019, our drinking water infrastructure needs could top $100 billion.

She also indicated that the budget "takes important steps needed to begin to address global warming" and provides funds to: Increase funding for the Energy Star program, which promotes the use of energy efficient technologies; Implement a national inventory of large sources of greenhouse gas emissions; Analyze issues related to a cap and trade system for controlling the carbon pollution that causes global warming; and Develop vehicle emissions reductions technologies to address carbon pollution and help US car manufacturers who adopt such technologies become more competitive.

In his opening statement, Senator Inhofe digressed with a reminder to Administrator Jackson of her commitment to transparency and said, "I trust the Administrator and her staff will honor this principle, especially as the agency considers regulating greenhouse gases under the Clean Air Act. We don’t agree on this issue -- I am strongly opposed to carbon regulation under the Clean Air Act and I will try to stop it -- but at least we can agree that EPA should remain open to a wide variety of viewpoints."

On the budget matters, Inhofe said, ". . .in spite of these massive spending increases and economic problems, the president proposes what I can only call a stunning increase in federal spending: a total of $3.4 trillion. This is more than the nation has ever spent under any other president. It will also create a $1.8 trillion federal deficit – the highest ever. The President also proposes some budget cuts, to the tune of $17 billion. Half of those will come from defense spending. So, according to the President’s budget, and during a time of war no less, we are being asked to cut a number of next-generation weapons systems for our war fighters. Yet there seems to be enough money to increase EPA’s budget by a staggering 37 percent. . . The President’s EPA budget in many respects fuels a growing bureaucracy and encourages more misguided regulation, both of which threaten jobs, our energy security, and our economic competitiveness, not to mention our citizens’ freedoms."

Administrator Jackson indicated that the Fiscal Year (FY) 2010 Budget request represents the highest level of funding for EPA in its 39-year history -- a 37 percent increase over our FY 2009 Budget. The Budget requests $10.5 billion in discretionary budget authority and 17,384.3 Full Time Equivalents (FTEs).

Jackson said, "This budget starts the work needed to transform our economy through investment in cutting-edge green technologies, repairing crumbling infrastructure and strengthening our core regulatory and scientific capabilities to make the Nation’s water, air, and land cleaner for our communities, families, and children. This budget keeps EPA on the job protecting the environment. It helps states, tribes, and local governments stay on the job by providing critical partnership assistance. And, it helps put Americans back on the job. . . This FY 2010 budget reflects President Obama’s commitment to usher in a new era in environmental stewardship and puts us on a clear path to a cleaner and safer planet." The remainder of Jackson's 15-page testimony provided details of the budget.

As WIMS reported yesterday [See WIMS 5/11/09], U.S. EPA's Office of the Chief Financial Officer has posted its latest FY 2010 “Summary of the EPA’s Budget” which provides a 98-page overview of the Agency’s budget and the complete 932-page FY 2010 “Congressional Justification” (CJ) which is the very detailed formal title for the actual budget document which is submitted to Congress.

Access the hearing website and link to Jackson's testimony, Sen. Boxer's statement and a webcast (click here). Access the statement from Sen. Inhofe (click here). Access the Budget in Brief (click here). Access links to the compete CJ and individual sections (click here).

Stockholm Convention Adopts Nine New Chemical POPs

May 8: At the fourth meeting of the Conference of the Parties (COP 4) of the Stockholm Convention, meeting in Geneva from May 4-9, the Governments adopted amendments to include nine new persistent organic pollutants (POPs) [See WIMS 5/6/09]. Over 160 Governments have concluded the one-week conference with "practical decisions" which they say will strengthen a global effort to eradicate some of the most toxic chemicals known to humankind. For the first time, the Convention was amended to include new chemicals, many of these are still widely used as pesticides, flame retardants and in a number of other commercial uses.

The nine new chemicals added to the list are: Alpha hexachlorocyclohexane; Beta hexachlorocyclohexane; Hexabromodiphenyl ether and heptabromodiphenyl ether; Tetrabromodiphenyl ether and pentabromodiphenyl ether; Chlordecone; Hexabromobiphenyl; Lindane; Pentachlorobenzene; Perfluorooctane sulfonic acid, its salts and perfluorooctane sulfonyl fluoride.

UN Under-Secretary General and UNEP Executive, Achim Steiner said, “This meeting in Geneva has culminated in a momentous day for the Stockholm Convention. Its significance cannot be under-estimated. We now have a clear signal that Governments around the world take seriously the risks posed by such toxic chemicals. The tremendous impact of these substances on human health and the environment has been acknowledged today by adding nine new chemicals to the Convention. This shift reflects international concern on the need to reduce and eventually eliminate such substances throughout the global community.”

In another move, a groundbreaking decision on synergies was unanimously adopted, marking the collaboration between the Stockholm Convention and its sister treaties on hazardous chemicals and wastes, the Rotterdam and Basel Conventions. This momentum will gather pace at the UNEP Governing Council Special Session of the Global Ministers Environment Forum slated for February 2010, when an Extraordinary COP will follow immediately afterwards. For the first time, the expanded Working Group will be comprised of the three chemicals and wastes treaties in sequential COPs.

A landmark decision was also reached on the endorsement of the DDT global partnership. While DDT is targeted for eventual elimination, the Convention recognizes that some countries will continue to use this pesticide to protect their citizens from malaria and other diseases. Additionally, the PCB Elimination Network was also endorsed. Countries have now strengthened efforts to phase out polychlorinated biphenyls or PCBs through a cooperative framework to support countries in the environmentally sound management and disposal of these harmful substances. The Network will be tasked with establishing key data and evaluating whether the use of PCBs is indeed declining.

The Conference also reviewed the process for evaluating the Convention’s effectiveness in reducing POPs over time. A global monitoring program building on various national and regional monitoring systems will produce a worldwide picture of trends in the quantity and types of POPs in the environment and in the human body.

Access a release from the Convention (click here). Access the COP 4 meeting website for the agenda, background documents and complete coverage (click here). Access the Stockholm Convention website for complete information on POPs (click here). Access the extensive list and links to COP 4 documents (click here). Access complete day-by-day coverage and summary from IISD Reporting Service (click here).

DOI Salazar Keeps Controversial Bush-Era 4(d) Polar Bear Rule

May 8: Department of Interior (DOI) Secretary Ken Salazar announced that he will retain a controversial special rule issued in December under the Bush Administration for protecting the polar bear under the Endangered Species Act. But DOI said it will closely monitor the implementation of the rule to determine if additional measures are necessary to conserve and recover the polar bear and its habitat. Salazar said, “To see the polar bear’s habitat melting and an iconic species threatened is an environmental tragedy of the modern age. This administration is fully committed to the protection and recovery of the polar bear. I have reviewed the current rule, received the recommendations of the Fish and Wildlife Service, and concluded that the best course of action for protecting the polar bear under the Endangered Species Act is to wisely implement the current rule, monitor its effectiveness, and evaluate our options for improving the recovery of the species.”

Salazar's action follows his receipt of a letter from 53 law professors from around the country urging him to rescind the “special rule” created by the Bush administration which they say sharply limits protections for the polar bear under the Endangered Species Act. David Hunter, director of the environmental law program at American University’s Washington College of Law said, “The polar bear deserves the same protections all other endangered species receive. Secretary Salazar should use authority granted to him by Congress to rescind the special rule for the polar bear.” Noah Greenwald, biodiversity program director at the Center for Biological Diversity (CBD) said, "For Salazar to adopt Bush's polar bear extinction plan is confirming the worst fears of his tenure as Secretary of the Interior. Secretary Salazar would apparently prefer to please Sarah Palin than to protect polar bears. It makes little sense for Salazar to rescind Bush's national policy barring consideration of global warming impacts to endangered species in general, but keep that exact policy in place for the one species most endangered by global warming -- the polar bear." [See WIMS 3/4/09]

The polar bear is listed as a threatened species under the Act [See WIMS 5/15/08], meaning it is at risk of becoming an endangered species throughout all or a significant portion of its range. The law provides civil and criminal penalties for actions that kill or injure bears and bars Federal agencies from taking actions that are likely to jeopardize the species or adversely modify its critical habitat. In addition, the polar bear is protected by the Marine Mammal Protection Act (MMPA), which provides equal and in some cases more stringent protections, and international treaties such as the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

DOI says Section 4(d) of the ESA, the "special rule," allows the Fish and Wildlife Service "to tailor regulatory prohibitions for threatened species as deemed necessary and advisable to provide for the conservation of the species." Thomas Strickland, assistant secretary for fish and wildlife and parks said, “In our judgment, keeping the rule is the best course of action for the polar bear. We will continue to reach out and listen to the public and a wide range of stakeholders as we monitor the rule, and will not hesitate to take additional steps if necessary to protect this iconic species.” The rule also states that incidental take of polar bears resulting from activities outside the bear’s range, such as emission of greenhouse gases (GHG), will not be prohibited under the ESA.

Salazar said, “We must do all we can to help the polar bear recover, recognizing that the greatest threat to the polar bear is the melting of Arctic sea ice caused by climate change. However, the Endangered Species Act is not the proper mechanism for controlling our nation’s carbon emissions. Instead, we need a comprehensive energy and climate strategy that curbs climate change and its impacts -- including the loss of sea ice. Both President Obama and I are committed to achieving that goal.”

DOI indicated that under the Omnibus Appropriations Act of 2009, Congress granted Salazar authority until May 10 to revoke the 4(d) rule. If Salazar had decided to withdraw the 4(d) rule, a virtually identical “interim” 4(d) rule issued by the previous Administration when the polar bear was first listed as a threatened species would be put back in place. Salazar said, “Revoking the current 4(d) rule would return us to an interim rule that would offer no more protections for the polar bear and would result in uncertainty and confusion about the management of the species.”

CBD said that Salazar ignored strong criticism of the rule and requests to revoke it from more than 1,300 scientists, more than 50 prominent legal experts, dozens of lawmakers, more than 130 conservation organizations and hundreds of thousands of members of the public. They said the rule severely undermines protection for the polar bear by exempting all activities that occur outside of the polar bears range from review -- "The polar bear, however, is endangered precisely because of activities occurring outside the Arctic, namely emission of greenhouse gases and resulting warming that is leading to the rapid disappearance of summer sea ice."

CBD also indicated that the special rule also reduces the protections the bear would otherwise receive in Alaska from oil industry activities in its habitat. Greenwald said, “Salazar’s decision today is a gift to Big Oil and an affirmation of the pro-industry/ anti-environmental policies of the Bush administration. This is not the change Obama promised.” The Center for Biological Diversity and other organizations are challenging the polar bear special rule in court. Oil-industry organizations, trade associations, and Alaska Governor Sarah Palin have intervened in the court case to defend the rule. CBD argues that, "Addressing greenhouse gas emissions under the Endangered Species Act is no different than addressing any other pollutants that have been effectively addressed under the Act for years, such as DDT and other pesticides that had severe impacts to the bald eagle and other species."

The law professors indicated in their letter, "We have three primary concerns with these exemptions. First, the exemption for all activities outside the current range of the species is overly broad, exempting whole classes of activities that harm polar bears. For example, the majority of contaminants, ranging from petroleum hydrocarbons, persistent organic pollutants, and heavy metals that negatively impact polar bears come from outside the current range of the species. 73 Fed. Reg. 28212, 28290. Second, exemption of all greenhouse emissions outside of the current range of the polar bear from potential regulation under Section 9 undermines the
survival and recovery of the polar bear because such emissions are the primary threat to the continued existence of the polar bear.

"Finally, the take provisions of the MMPA provide less protection for the polar bear because unlike the ESA, the MMPA’s definition of 'take' does not include the term 'harm.' Compare 16 U.S.C. § 1532(19) with 16 U.S.C. § 1362(13). Under the ESA, the 'harm' prohibition has been interpreted to include habitat modification, which significantly impairs 'essential behavioral patterns, including breeding, feeding or sheltering.' 50 C.F.R § 17.3. In eliminating the 'harm' prohibition for polar bears, the special rule potentially undermines effective protections for the polar bear’s habitat from both direct and indirect impacts."

DOI pointed out in its release that President Obama’s Fiscal Year 2010 budget request includes a significant new commitment to helping conserve the polar bear. The budget request includes an increase of $7.4 million for polar bear conservation, of which $3.2 million will be invested through the Fish and Wildlife Service. The new commitment includes a $1.5 million increase for the Endangered Species program specifically to address new and reinitiated interagency consultations on oil and gas projects and to prepare for a range-wide Polar Bear Conservation Plan to guide U.S. and international work to conserve and improve the status of the species. An increase of $1.7 million will allow the FWS Marine Mammal program to intensify work with partners to prepare, review, and publish population assessments, conservation plans, and incidental take regulations.

Access a release from DOI and link to a Section 4(d) Q&A document (click here). Access a release from CBD with links to the letters from more than 1,300 scientists, 53 law professors, eight senators, U.S. representatives, California legislators and more than 130 conservation organizations (click here). Access the DOI Polar Bear Conservation and Management website (click here). Access the CBD Polar Bear website for more information (click here).

Ag Committee Chair Peterson Won't Support Climate Bill

May 6: Just as the House Energy & Commerce Committee is engaged in a very fragile political negotiation on the Waxman-Markey draft American Clean Energy and Security Act of 2009 (ACES) and the President has urged House Democrats to work toward a compromise bill [See WIMS 5/6/09], House Agriculture Committee Chairman Collin Peterson (D-MN) has dealt what could be a crushing blow to the negotiations.

At the first legislative hearing on President Obama's biofuels initiatives and proposed Renewable Fuel Standard (RFS), Peterson became so distraught that he vowed not to support "any kind of climate change bill." Other Democrats including Earl Pomeroy of North Dakota and Tim Holden, Pennsylvania said they and others agreed with Peterson.

In further comments (not necessarily in order), Peterson said, "I want this message sent back down the street. I will not support any climate change bill. . . You are going to kill off the biofuels industry before it gets started. You are in bed with the oil industry. . . If they think anyone is going to invest in next-generation ethanol, given what's going on, they are kidding themselves. . . By the time it gets down to the agency, what the hell is going to come out of it? ... This thing is out of control. . . I don't care. Even if you fix this. I don't trust anybody anymore . . . This thing is out of control, I've had it."

The uproar occurred at a hearing of the Agriculture Committee, Subcommittee on Conservation, Credit, Energy and Research, Chaired by Representative Holden. The hearing was held to review the impact of the indirect land use and renewable biomass provisions in the renewable fuel standard. Witnesses from the Administration included: Dr. Joe Glauber, Chief Economist, U.S. Department of Agriculture (USDA), and Ms. Margo Oge, Director, Office of Transportation and Air Quality, U.S. EPA. Other witnesses included representatives of: the Center for Agricultural and Rural Development, Iowa State University; Pennsylvania Department of Agriculture; New Fuels Alliance; National Biodiesel Board; Platinum Ethanol; and the American Forest Foundation.


USDA testified that, "The feedstock limitations associated with the exclusion of some sources of renewable biomass as defined in [Energy Security and Independence Act of 2007 (EISA)] -- particularly with respect to cellulosic materials from both private and public forest lands-may serve to limit the opportunity to replace fossil fuels. In the future, ethanol produced from cellulosic sources, including wood biomass, has the potential to cut life cycle GHG emissions by up to 86 percent relative to gasoline (Wang et al. 2007)." USDA testified further on how biofuel production affects land use in the United States and the rest of the world, and will discuss what is meant by emissions associated with land use change.


EPA testified that the Administrator had signed a notice of proposed rulemaking for the Renewable Fuel Standard included in EISA, commonly called "RFS2." The Agency said the proposed rule "provides EPA an opportunity to present our work to the public and formally incorporate the advice and input we will receive over the coming months." EPA said, "A central aspect of the RFS2 program is its focus on the lifecycle greenhouse gas impact of renewable fuels. EISA created the first U.S. mandatory lifecycle greenhouse gas (GHG) reduction thresholds for renewable fuels used in the U.S. . .


"EPA, working with experts from across the Federal government, including experts from the Departments of Agriculture and Energy as well as outside experts, has spent the last year and a half creating a robust and scientifically supported methodology that identifies direct and indirect emissions, including those resulting from international land use change. This methodology meets our statutory obligations under EISA. Just as importantly, it recognizes that to account for the climate-related effects of renewable fuels, the direct emissions associated with fuel production and combustion as well as the indirect emissions must be taken into account. . ."


EPA said, ". . .we understand that some have concerns that the state of the science regarding the assessment of GHG emissions related to international land changes is so immature, and potentially subject to error, that EPA should disregard or deemphasize such emissions, and calculate renewable fuel lifecycle GHG emissions assuming that there are no GHG emissions associated with predicted international land use changes. We believe such an approach would introduce far more error into lifecycle GHG assessment than the EPA proposal, which is based on reasoned application of the best available science and data. The result of disregarding land use changes would be to ignore the developing science in this area, and to overstate, perhaps dramatically, the GHG benefits of renewable fuels. . ."

The environmental organization, Friends of the Earth (FOE) issued a release on the meeting calling Chairman Peterson's comments an "embarrassing hissy fit." FOE said, "It’s pretty stunning that less than two years ago, Peterson voted for the law requiring the EPA to account for this pollution, but he apparently now wants the EPA to break the law he voted for. The EPA indicated yesterday that it plans to follow that law instead of doing Peterson’s bidding, so now he throws a temper tantrum. It’s embarrassing.”

The Renewable Fuels Association (RFA) indicated when the new RFS proposed rule was announced that it would "engage EPA. . . over the issue of lifecycle greenhouse gas emissions related to the production and use of ethanol." RFA said, "EPA has also attempted to calculate indirect emissions that occur as a result of purported land use changes and other factors occurring domestically as well as internationally. The controversial notion of indirect land use changes impacts, including those happening outside the U.S., are thought to greatly reduce ethanol’s GHG benefit. The RFA welcomes the debate over these issues." RFA has prepared a 5-page document entitled, Understanding the International Indirect Land Use Penalty on Biofuels.

In a release posted on May 7, Subcommittee Chairman Tim Holden of Pennsylvania said, “We are very upset with the path EPA has taken us down and sent that message back loud and clear in today’s hearing. If we continue with these provisions in EISA, we will not only harm the biofuels industry but also shortchange a large part of the country before we even get started. We need to expand the reach of biofuels, not hamper the farmer and forest owner.” Subcommittee Ranking Member Bob Goodlatte (R-VA) said, “The arbitrary restrictions in the renewable fuel standard will limit the potential biomass to meet the renewable fuels mandate. I am in favor of the development of advanced renewable fuels, but more importantly I am in favor of developing a policy that allows the market to develop next generation renewable energy." The Subcommittee indicated, "The provisions discussed today were last minute additions to EISA that were never debated, and members of the Committee have worked to get them changed for the past two years."

Access various media reports on Chairman Peterson's comments (click here); (click here); and (click here). Access the Subcommittee hearing website and link to all testimony (click here). Access a release from Friends of the Earth release (click here). Access more information from RFA including their release and the document referenced above (click here). Access the Subcommittee release (click here).

Resolving Climate Change With House Dems Is Critical Turning Point

May 5: President Obama met for about an hour and half with Democratic members of the House Energy & Commerce Committee, Chaired by Chaired by Representative Henry Waxman (D-CA) to discuss two key pieces of legislation which the Committee is currently considering -- the draft comprehensive energy legislation, the Waxman-Markey draft American Clean Energy and Security Act of 2009 (ACES) [See WIMS 5/4/09] and health care reform. Washington insiders report that the President was well informed on the climate change issue and encouraged the House Democrats to work out their differences and move quickly to meet their deadline of a Committee-approved bill by Memorial Day.

In a press briefing responding to questions about the meeting, White House spokesman Robert Gibbs said, "The President said the transitioning -- to include energy economy -- would create clean-energy jobs and provide America with a major growth driver for the years to come, helping to move us from a bubble-and-bust economy. The President outlined core principles that he believed should guide the energy legislation as the committee finalizes it. The President believes that consumers and communities should be compensated if during the transition period there are any additional costs associated with reducing carbon emissions. He believes there should be predictability and certainty in the market so that entrepreneurs can make major private sector investments in clean-energy innovation. He also believes regional impact should be taken into account and addressed and that our trade-sensitive industries need to be protected.

"The President also made clear that we have been discussing health care reform for decades and he hears from Americans every day that now is the moment for action. With millions of Americans out of work we cannot afford for any American to be denied health care coverage because of a preexisting condition."

There were conflicting reports from Chairman Waxman about whether the Committee will move the bill forward in the Subcommittee or go directly to the full Committee. With time running short, consideration in the full Committee could expedite the mark up process. No meetings had been announced at press time today.

Major issues that still have Democrats divided include the timing of the cap and trade program; the use of emission "offsets"; the distribution (free and/or by auction) of emission "allowances"; and requirements for a national Renewable Electric Standard (RES).

Considering the broad diversity of the Democrats on the full Committee (i.e. Midwest, South, Oil States, Coal States, etc.), there is a feeling that if Democrats can resolve their differences and agree to a compromise bill it could increase the chances for approval in the Senate.

In response to further questions regarding the meeting and the President's feelings about getting a bill on climate change passed in time for the global warming talks in December in Copenhagen, Gibbs said, ". . .obviously you heard the President on a number of occasions mention that his three most important priorities are health care, energy independence and education; that those three present an important foundation for creating long-term economic growth. So I think clearly it’s a major priority of the President's. And I think he believes that the meeting was productive, that progress was made, and that discussions continue in Congress on moving this bill forward. We're hopeful to get something done this year. Obviously, as I said, it is a strong priority of the President's. . . I think the meeting today denotes both his interest and his activity level on this in trying to move a solution forward."

On the Senate side, Senator Barbara Boxer (D-CA), Chairman of the Senate Committee on Environment and Public Works, recently announced what she called "the first set of global warming working groups in order to reach out to Senate colleagues and build support for climate change legislation." Boxer said, We are moving forward on a solid footing with dedicated Senators taking the lead on these critical issues." She announced the formation of five working groups including: Regional Issues; Cost Containment; Targets and Timetables; Market Oversight; and Coal Research and Technology. She appointed key Democrats to work on each of the issues.

Access the complete White House press briefing transcript (click here). Access a release from Senator Boxer on the working groups (click here). Access various media reports on the White House meeting (click here).

President Announces Biofuels Initiatives & Proposed RFS

May 5: President Obama announced steps to further his Administration’s commitment to advance biofuels research and commercialization. Specifically, he signed a Presidential Directive establishing a Biofuels Interagency Working Group, announced additional Recovery Act funds for renewable fuel projects, and announced the Administration's notice of a Proposed Rulemaking on the Renewable Fuel Standard (RFS). President Obama said, "We must invest in a clean energy economy that will lead to new jobs, new businesses and reduce our dependence on foreign oil. The steps I am announcing today help bring us closer to that goal. If we are to be a leader in the 21st century global economy, then we must lead the world in clean energy technology. Through American ingenuity and determination, we can and will succeed."

The Biofuels Interagency Working Group (BIWG), to be co-chaired by the Secretaries of Agriculture and Energy and the Administrator of U.S EPA will work with the National Science and Technology Council's Biomass Research and Development Board in undertaking its work. Among other items outlined, the BIWG will develop the nation’s first comprehensive biofuel market development program to identify new policies to support the development of next-generation biofuels, increase flexible fuel vehicle use, and assist in retail marketing efforts; coordinate infrastructure policies impacting the supply, secure transport, and distribution of biofuels; and identify new policy options to promote the environmental sustainability of biofuels feedstock production, taking into consideration land use, habitat conservation, crop management practices, water efficiency and water quality, as well as lifecycle assessments of greenhouse gas (GHG) emissions.

American Recovery and Reinvestment Act (ARRA) funding of $786.5 million will be provided to accelerate advanced biofuels research and development and expand commercialization by providing additional funding for commercial biorefineries. A mix of new funding opportunities and additional funding for existing projects will be allocated across four main areas: $480 million solicitation for integrated pilot- and demonstration-scale biorefineries; $176.5 million for commercial-scale biorefinery projects; $110 million for fundamental research in key program areas; and $20 million for ethanol research.

On the Renewable Fuel Standard, EPA will issue a Notice of Proposed Rulemaking outlining the strategy for increasing the supply of renewable fuels, poised to reach 36 billion gallons by 2022, as mandated by the Energy Independence and Security Act of 2007 (EISA). EISA will establish four categories of renewable fuels including: Cellulosic biofuels; Biomass-based diesel; Advanced biofuels; and Total renewable fuel. The proposal would require 36 billion gallons annually of renewable fuels, of which 16 billion gallons must be cellulosic biofuels; and 1 billion gallons must be of biomass-based diesel. At most 15 billion gallons of the renewable fuel mandate can be met with conventional biofuels, including corn-based ethanol.

For the first time, some renewable fuels must achieve greenhouse gas emission reductions compared to the gasoline and diesel fuels they displace. Refiners will be required to meet the requirements to receive credit toward meeting the new standards.EPA also will conduct peer reviews on the lifecycle-analysis (GHG emissions over the life of the fuels) methodology and the results for various fuels and feed-source combinations. A 60-day public comment period on the proposed rule will begin upon publication in the Federal Register.

Access a release from the White House (click here). Access a prepublication copy of the 549-page proposed rule (click here). Access a 9-page summary of the RFS proposal (click here). Access EPA's RFS website for complete information including fact sheets, 822-page regulatory impact analysis and more (click here). Access a release from EPA (click here). Access a release from USDA (click here). Access a release from DOE (click here).

Tricky Politics On House Waxman-Markey Climate Change Bill

May 4: House Democrats are engaged in some tricky behind the scenes negotiations attempting to gain support for the Waxman-Markey draft American Clean Energy and Security Act of 2009 (ACES) [See WIMS 4/28/09]. Republicans are still pressing for more details and an additional hearing on the bill. While the 13 Republicans members on the House Energy and Commerce Committee Subcommittee, led by Ranking member Fred Upton (D-MI), are assumed to oppose the bill; there is also concern being expressed by some of the 21 Democratic members of the Subcommittee.

Last week's markup was delayed because of both Republican and Democrats concerns. Full Committee Chairman, Henry Waxman (D-CA) has pledged to have the bill approved by the Committee by Memorial Day and House Speaker Nancy Pelosi (D-CA) has said she want a House vote by August.

The twenty-one Democratic Members of the Subcommittee Chaired by Ed Markey(D-MA) include: Mike Doyle, PA; Jay Inslee, WA; G. K. Butterfield, NC, Vice Chair; Charlie Melancon, LA; Baron P. Hill, IN; Doris O. Matsui, CA; Jerry McNerney, CA; Peter Welch, VT; John D. Dingell, MI; Rick Boucher, VA; Frank Pallone, Jr., NJ; Eliot L. Engel, NY; Gene Green, TX; Lois Capps, CA; Jane Harman, CA; Charles A. Gonzalez, TX; Tammy Baldwin, WI; Mike Ross, AR; Jim Matheson, UT; John Barrow, GA; and Henry A. Waxman, CA (ex officio).

In addition to concerns expressed by Subcommittee Democrats G. K. Butterfield, NC; Charles A. Gonzalez, TX; and Gene Green, TX; concerns have also been raised by Democratic Congressional Campaign Committee Chairman Chris Van Hollen (D-MD); Dennis Cardoza (D-CA) a member of the moderate group of Democrats known as the Blue Dog Coalition; and Majority Whip Jim Clyburn of South Carolina.

Reportedly, some Democratic leaders are worried that some freshmen Democrats will be forced to vote on the controversial issue which may jeopardize their reelection chances. Other Southern Democrats are negotiating to get more emphasis on nuclear power in the bill and including nuclear and hydroelectric as "renewable" energy sources.

Additionally, Representative Green has reportedly said, “I can’t vote for a bill unless my refineries (are protected) because of the nature of my district, it’s a job base and a tax base”; and others are concerned about the bill’s impact on low-income Americans. Democrats on the Committee are reportedly scheduled to meet with White House officials on Tuesday to discuss the concerns and the Subcommittee is expected to meet further this week to consider the bill.

Congressman Chris Van Hollen (D-MD), one of those that has expressed concerns, is Co-Chair of the Renewable Energy and Energy Efficiency Caucus and describes himself as a leading supporter of Congressional efforts to address global climate change. Van Hollen introduced his own Cap and Dividend Act of 2009 (H.R. 1862) on April 1. Van Hollen's legislation sets targets for emissions reductions OF 25 percent below 2005 levels by 2020 and 85 percent below 2005 levels by 2050 for covered emissions, auctions 100 percent of carbon permits, and returns all auction proceeds to consumers in the form of a monthly dividend.

Van Hollen said, “The science of climate change can be complicated, but the legislative solution doesn’t have to be. The strength of cap and dividend lies in its simplicity and durability. All permits are sold at auction, and all proceeds are given back to the American people. As the price of energy rises, the monthly dividends will keep American consumers whole. At its core, any successful climate change bill cannot just reduce carbon emissions. It must attract and retain the long-term, popular support of the American people. I believe the cap and dividend approach offers the best chance to get the job done.”

In an interview with The Hill on April 27, Van Hollen said, "The first thing we need to do is see whether we can come together around a consensus position in the committees in the House, and that’s what we’re working on. And then, of course, if we were able to arrive at that, the question is whether you would take it to the floor, or do you wait to see if anything develops on the Senate side."

Representative Upton, expressed the Republican position on the bill in a lengthy release on April 22. Upton said, "The statistics are startling. According to an MIT model of a 100 percent auction cap and tax, the American people will be taxed $366 billion in 2015 – four times as much as the President's estimate of $80.3 billion for that year. Job losses under such a plan could be greater than 6 million. Increased energy costs would near $1 trillion in 2030. Increases in electricity costs could be greater than 100 percent. A family of four could expect to pay as much as $4,560 in additional costs in 2015. In written testimony, OMB Director Peter Orszag stated that the average household cost would be $1,300 for a 15 percent cut in emissions – this administration is seeking an 80 percent cut. Not quite the prescription our economic maladies desperately require."

Access links to a number of various media reports including Politico, Wall Street Journal, The Hill and more (click here). Access legislative details for H.R. 1862 (click here). Access Rep. Upton's complete statement (click here). [*Climate]