The President's Economic Report & Climate And Energy Policy

Feb 11: Last week during the near-shutdown of Washington, DC due to blizzards and record-breaking snowfalls, the White House released The Economic Report of the President, an annual report written by the Chair of the Council of Economic Advisers, Dr. Christina Romer. An important vehicle for presenting the Administration's domestic and international economic policies, it provides an overview of the nation's economic progress with text and extensive data appendices. Somewhat buried and under-reported are 27-pages within the 462-page report entitled, Chapter 9: Transforming the Energy Sector and Addressing Climate Change. This chapter, provides some significant information relating to facts and policy considerations in the Administration's strategy on energy and climate change.

 

    In the President's message which accompanies the report, the President sets the stage and says, "It's not enough to move the economy from recession to recovery. We must rebuild the economy on a new and stronger foundation. . . we have begun to build a new clean energy economy. The Recovery Act included the largest investment in clean energy in history, investments that are today creating jobs across America in the industries that will power our future: developing wind energy, solar technology, and clean energy vehicles. But this work has only just begun. Other countries around the world understand that the nation that leads the clean energy economy will be the nation that leads the global economy. I want America to be that nation. that is why we are working toward legislation that will create new incentives to finally make renewable energy the profitable kind of energy in America. It's not only essential for our planet and our security, it's essential for our economy."

 

    While the President's message does not address climate change specifically, Chapter 9 addresses it in great detail. That chapter begins by stating, "The President has called climate change 'one of the defining challenges of our time.' If steps are not taken to reduce atmospheric concentrations of carbon dioxide (CO2) and other greenhouse gases, scientists project that the world could face a significant increase in the global average surface temperature. Projections indicate that CO2 concentrations may double from pre-industrial levels as early as 2050, and that the higher concentrations are associated with a likely long-run temperature increase of 2 to 4.5 °C (3.6 to 8.1 °F). With temperatures at that level, climate change will lead to a range of negative impacts, including increased mortality rates, reduced agricultural yields in many parts of the world, and rising sea levels that could inundate low-lying coastal areas."

 

    Considering the above information the report indicates, ". . .policy should take steps to ensure that the market provides the correct signals to greenhouse gas emitters about the full cost of their emissions. Second, policy should actively promote the development of new technologies. One way to accomplish these goals is through a market-based approach to reducing greenhouse gases combined with government incentives to promote research and development of new clean energy technologies. Once policy has ensured that markets are providing the correct signals and incentives, the operation of market forces can find the most effective and efficient paths to the clean energy economy. The Administration's policies in this area are guided by these principles."

 

    The level of detail of the discussion is revealed by the titles of the various sections and subsections of the "must-read" chapter including the following: Greenhouse Gas Emissions, Climate, and Economic Well-Being (Greenhouse Gas, Temperature Change, Impact on Economic Well-Being, with sidebars on Climate Change in the United States and Potential Impacts and Expected Consumption Loss Associated With Temperature Increase); Jump-Starting the Transition to Clean Energy (Recovery Act Investments in Clean Energy; Energy Efficiency, Renewable Generation, Grid Modernization, Advanced Vehicles and Fuels Technologies, Traditional Transit and High-Speed Rail, Carbon Capture and Storage, Innovation and Job Training, Clean Energy Equipment Manufacturing, Total Recovery Act Energy Investments); Short-Run Macroeconomic Effects of the Clean Energy Investments; Other Domestic Actions to Mitigate Climate Change; Market-Based Approaches to Advance the Clean Energy Transformation and Address Climate Change (Cap-and-Trade Program Basics, Ways to Contain Costs in an Effective Cap-and-Trade System [Banking and Borrowing, Price Ceilings or Floors, Offsets], A significant sidebar on the European Union's Experience With Emissions Trading, Coverage of Gases and Industries, The American Clean Energy and Security Act [Projected Climate Benefits, Projected Economic Costs]; International Action on Climate Change Is Needed (Partnerships with Major Developed and Emerging Economies, Phasing Out Fossil Fuel Subsidies); and Conclusion.

 

    The chapter concludes saying, "Today's economy is dependent on carbon-intensive fuels that are directly linked to an increase in global average temperature. Continued reliance on these fuels will have a range of negative impacts, including increased mortality rates, reduced agricultural productivity in many locations, higher sea levels, and the need for costly adaptation efforts. For these reasons, a clean energy transformation is essential. Through his comprehensive plan, the President has set the country on course to achieve this goal. He has taken several significant and concrete steps to transform the energy sector and address climate change through the American Reinvestment and Recovery Act and through targeted regulation. To address externalities associated with greenhouse gas emissions, the President has proposed a market-based cap-and-trade approach. These combined efforts will stimulate the research and development necessary to advance new clean energy technologies. Because of the global nature of the climate change problem, the Administration is also actively pursuing partnerships with other countries to advance efforts to transition the world to clean energy and reduce greenhouse gas emissions."

    Access a White House press release (click here). Access the complete Chapter 9 (click here). Access links to the complete report and individual chapters (click here).

WIMS Publishing Notice

Subscribers & Readers Note: We will not be publishing today, February 15, 2010, in observance of the Washington's Birthday/President's Day holiday. We will return on Tuesday, February 16, 2010.

UN Head Launches Advisory Group On Climate Change Financing

Feb 12: The leaders of the United Kingdom and Ethiopia will head up a new high-level group launched by United Nations Secretary-General Ban Ki-moon that is intended to mobilize financing swiftly to help developing countries combat climate change. The Copenhagen Accord reached at December's United Nations conference in the Danish capital called for jump-starting immediate action on climate change and guiding negotiations on long-term action, with pledges to raise $100 billion annually by 2020. It also includes an agreement to working towards curbing global temperature rise to below 2 degrees Celsius and efforts to reduce or limit emissions.

    At a press conference In New York, Ban announced the new Advisory Group on Climate Change Financing, to be chaired by Ethiopian Prime Minister Meles Zenawi and UK Prime Minister Gordon Brown saying, "There will be an even balance between developing and developed countries." According to a release, the body's other members, who will be appointed for 10 months and whose names will be announced soon, include heads of State and Government, senior ministers and officials from central banks and experts on finance and development. The Advisory Group will be charged with creating practical proposals to boost both short- and long-term financing for mitigation and adaptation strategies in developing countries. The Group is expected to produce a final report containing recommendations before the next Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC) in Mexico this December.

    UK Prime Minister Gordon Brown issued a statement saying, "I very much look forward to working with Prime Minister Meles and the members of the advisory group in the task that believe is one of the most important we face - combating climate change by ensuring that the poorest countries have the finance that is necessary to do so. If we can resolve this problem, then I believe many of the other challenges of climate change can be resolved. So the task before us, while daunting, is a very important one to the future of the environment of the world."

    Last week, the UNFCCC announced that by the January 31 deadline specified in the Copenhagen Accord, some of the world's biggest emitters of carbon dioxide -- including the United States and China -- have formally submitted their national targets to cut and limit greenhouse gases by 2020. It said that it had received specific pledges from 55 countries that together account for 78 per cent of global emissions from energy use. The pledges to the Accord are purely voluntary and there are no enforcement provisions for the signing countries. Yvo de Boer, Executive Secretary of the UNFCCC issued a statement saying, "This represents an important invigoration of the UN climate change talks [however,] Greater ambition is required to meet the scale of the challenge. But I see these pledges as clear signals of willingness to move negotiations towards a successful conclusion."

    On February 2, the World Resources Institute (WRI) issued a working paper entitled, "Comparability of Annex I Emission Reduction Pledges." [See WIMS 2/3/10]. As negotiated in the Copenhagen Accord provides a mandate for Annex I Parties that choose to associate themselves with the Accord to register their emission reduction pledges by January 31, 2010 [See WIMS 2/1/10]. The WRI analysis indicated that emission reduction pledges "will not be enough to meet even the lower range of emission reductions required for stabilizing concentrations of CO2e at 450 ppm and certainly fall very short of goals to reduce concentrations below that level." WRI has developed an Interactive Chart: Analyzing Comparability of Annex I Emission Reduction Pledges.

    Access a release from the UN (click here). Access a statement released by the UN on the Advisory Group (click here). Access a release from the UK Prime Minister (click here). Access the WRI Interactive Chart (click here).

Global Launch Near For New e-Stewards Certification & Standard

Feb 9: The Natural Resources Defense Council (NRDC) announced its endorsement of the first-ever certification program for electronics recycling created jointly by the environmental community and business leaders. NRDC said the new e-Stewards Certification and Standard, held by the Basel Action Network (BAN), is seen as essential to stem the tide of hazardous old computers, TVs, monitors and other electronic waste currently flooding African and Asian countries such as Ghana, Nigeria, India, Pakistan and China. Jim Puckett, BAN Executive Director said, "NRDC recognized that we have finally created a principled yet practical solution to e-waste recycling that environmentalists, businesses and consumers can all embrace. We are thrilled to receive NRDC's coveted endorsement in the lead-up to our global launch."

    NRDC said it is joining with BAN to call on all electronics recyclers to become e-Steward Certified recyclers, and at the same time is asking all businesses to become designated "e-Steward Enterprises" by agreeing to give priority to e-Steward recyclers for their old electronic assets. The e-Stewards recyclers are a group of leading North American electronics recyclers and asset managers who have been qualified as upholding the highest standard of environmental and social responsibility. Environmental and social justice advocates urge you to make use of these recyclers for all of your e-waste disposal/recycling/asset management.

    By March 1, 2010, accredited certifying bodies will independently assure conformity to the revised e-Stewards Standard, thus providing the highest level of assurance that they meet the world's most responsible environmental and social justice criteria for electronics recyclers. The criteria include no toxic e-waste dumped in landfills or incinerators, exported to developing countries, or sent to prison labor operations and accountability for the entire recycling chain of toxic materials.

    NRDC Senior Scientist Dr. Allen Hershkowitz said, "This initiative is sorely needed. Many e-waste recyclers claim to be green, but in reality they rely on unsafe and ecologically damaging methods like dumping millions of tons of toxic waste each year in China, India and Africa. E-Stewards provide businesses and consumers with a first-of-a-kind seal to identify the truly responsible recyclers." In 2008, the Government Accountability Office (GAO) released a report roundly criticizing the US EPA for not doing more to promulgate and enforce rules to control the e-waste trade. Unfortunately, to date little has changed and a market-based solution is seen as more necessary than ever." [See WIMS 10/28/09].

    Businesses that agree to make best efforts to use e-Steward recyclers will be rewarded as designated e-Stewards Enterprises. The first global companies to receive these e-Steward Enterprise designations as well as the first Certified e-Steward recyclers will be announced in March. Already there are about 50 North American recyclers that are considered "Pledged e-Stewards" which have been vetted by BAN and are licensed and committed to becoming certified in the next 18 months. These companies include some of the largest electronics recyclers in North America. Due to the widespread fraudulent or unscrupulous exportation and irresponsible practices now plaguing the electronics recycling industry, consumers are urged to use only these Pledged e-Steward recyclers.

    Access a release from NRDC (click here). Access the complete list of Pledged e-Stewards (click here). Access the e-Stewards website for complete information on certification and related information (click here). Access the BAN website for more information (click here).

API Counters Improved Health Benefits From Ozone Standard

Feb 2: In testimony delivered in Houston, the American Petroleum Institute (API) said U.S. EPA's proposed new ozone pollution standards would exact significant costs on consumers, jobs and the economy without delivering commensurate benefits.  It said there was no scientific justification for imposing the more stringent standards. API policy advisor Ted Steichen, who presented the association's testimony said, "Without a clear certain scientific basis for selecting a different numeric standard, the ozone standard need not be changed now. We urge the Administrator not to pursue this proposal. He said EPA's own studies failed to support a lowering of the ozone standards.  

 

    Yesterday, WIMS reported on the testimony of Environmental Defense Fund (EDF) which indicated that strengthening the National Ambient Air Quality Standard (NAAQS) for ozone pollution from 75 to 60 parts per billion (ppb) would reduce premature death rates by 60-fold and reduce asthma cases 50-fold, according to analyses by the Environmental Protection Agency (EPA). The testimony was given at an the EPA public hearing in Sacramento to reconsider the adequacy of a controversial national ozone air quality standard adopted by the Agency in 2008. The Agency held three public hearings on the proposal: Feb. 2, 2010 in Arlington, VA and in Houston; and Feb. 4, 2010 in Sacramento. Written comments are being accepted until March 22, 2010 [See WIMS 2/9/10].

    API's Steichen emphasized that tremendous progress has been made improving the nation's air quality, in large part through oil and natural gas industry efforts, and said more improvements will follow -- under the existing ozone standards -- because of pollution controls in place or soon to be implemented. He testified, "Thanks to implementation of the Clean Air Act our air quality has demonstrably improved. Since 1990, the oil and gas industry invested more than $175 billion -- that's billion, with a 'B' -- towards improving the environmental performance of its products, facilities, and operations."

    Both cleaner vehicles and cleaner fuels will contribute to further improvement, he explained, with "annual emission reductions from the use of Ultra Low Sulfur Diesel with cleaner technology engines … equivalent to removing the pollution from more than 90% of today's trucks and buses by 2030." Steichen said moving forward with the proposed new standards could "impact citizens while they are still suffering from a severe recession, in the very communities where we need to be creating jobs."

    On January 7, U.S. EPA proposed the strictest health standards to date for ground-level ozone or smog -- proposing a rule to set the "primary" standard, which protects public health, at a level between 0.060 and 0.070 parts per million (ppm) measured over eight hours. The current primary 8-hour standard is 0.075 ppm [See WIMS 1/7/10]. EPA is also proposing to set a separate "secondary" standard to protect the environment, especially plants and trees -- proposing to set the level of the secondary standard within the range of 7-15 ppm-hours. The current secondary standard is the same as the primary standard -- 0.075 ppm.

    Despite contrary testimony from EDF and others and information from EPA, Dr. Robyn Prueitt testified on behalf of API indicating that "controlled human exposure studies do not support an association between ozone exposure and adverse respiratory effects below 0.08 ppm. . . The epidemiological evidence for short-term health effects of ozone is weak and does not support causality at levels below 0.08 ppm. . . Health effects are attributed to ozone exposure when PM-related associations are not accounted for. . . [and] There are many issues with EPA's scientific method."

    Access a release from API with links to Steichen's complete testimony and Dr. Robyn Prueitt's testimony on behalf of API analyzing the scientific research on the impacts of ozone on health (click here). Access a release on the EDF testimony and link to related information (click here). Access links to extensive background information including a fact sheet, hearing recordings, and the proposed rule from EPA's website (click here). Access the EPA docket for background and to review & submit comments (click here).

Caterpillar & Exelon Join FutureGen Alliance

Feb 8: Illinois Governor Pat Quinn and U.S. Senator Dick Durbin (D-IL) announced that Caterpillar, a global leader in the manufacturing of heavy machinery, will join the FutureGen Alliance. This is the second major new Alliance member signed up in just over a week. Caterpillar's move signals critical support ahead of the U.S. Department of Energy's (DOE) pending decision to move ahead on FutureGen construction in Mattoon, Illinois. On January 30, Illinois-based Exelon, one of the nation's largest electric utilities and energy providers, added its support to the project by becoming a member of the FutureGen Alliance partnership.

    On July 14, 2009, the Department of Energy (DOE) issued a National Environmental Policy Act (NEPA) Record of Decision (ROD) to move forward on FutureGen toward the first commercial scale, fully integrated, carbon capture and sequestration (CCS) project in the country. At the time, DOE said its decision was "based on careful consideration of the proposed project's potential environmental impacts, as well as the program goals and objectives." The ROD and a cooperative agreement signed by DOE and the FutureGen Alliance allowed the Alliance to proceed with site-specific activities for the project. The Department and the Alliance will decide very soon whether to continue the project through construction and operation. 

    Governor Quinn said, "I welcome Caterpillar's investment in FutureGen and in Illinois," said The company's support -- just over a week after another major Illinois-based company, Exelon, signed on to the project -- is a clear sign that momentum for this project is gaining. This shows that the private sector stands alongside my administration and our local partners to move quickly and effectively once we receive the final 'go' from DOE." FutureGen is designed to be the cleanest coal-fueled power plant in the world. The 275 megawatt facility will convert coal into hydrogen and electricity, while capturing and safely storing the carbon dioxide in sandstone formations a mile beneath the site. It will lay the groundwork for developing similar plants around the country and the world, pioneering the capture, rather than release of greenhouse gases.

    FutureGen would also create jobs and economic growth. Initial estimates state that 1,300 construction jobs and 150 permanent jobs would be created through FutureGen. In addition, a study conducted by Southern Illinois University showed that during the four-year construction period, there would also be 1,225 indirect and induced spin-off jobs created and more than $1 billion in economic impact statewide as a result of FutureGen.

    Senator Durbin said, "In just a little over a week, the FutureGen Alliance has added another strong partner with a deep connection to Illinois. U.S. Caterpillar will bring a great deal to the table as the FutureGen Alliance and the Department of Energy continue in the final stages of negotiations. I look forward to welcoming many new FutureGen Alliance members -- from Illinois and around the world." Last week, President Obama moved decisively to support the mission of FutureGen and clean coal projects to follow. Governor Quinn sent a letter to the President on Thursday praising his decision to establish an Interagency Task Force on Carbon Capture and Storage (CCS) [See WIMS 2/4/10].

    According to a release from the FutureGen Alliance, the final go-ahead depends on increasing Alliance membership and dollar contributions from the private-sector support, as well as reducing total project costs. At stake is $1.1 billion through the American Recovery and Reinvestment Act to re-launch the FutureGen project. The State of Illinois has put together a comprehensive investment package that includes direct grants, financing incentives and tax-related savings, to help ensure that FutureGen comes to Illinois.

    DOE's total anticipated financial contribution for the project is $1.073 billion, $1 billion of which would come from Recovery Act (ARRA) funds for CCS research. The FutureGen Alliance's total anticipated financial contribution is $400 million to $600 million. The total cost estimate of the project is $2.4 billion, consequently, the Alliance, with support from DOE, are pursuing options to raise the additional non-federal funds needed to build and operate the facility.

    Access a release from Governor Quinn's Office (click here). Access the FutureGen Alliance website (click here). Access the DOE FutureGen website for more information (click here).

NOAA's New Office & Web Portal To Address Climate Issues

Feb 8: Individuals and decision-makers across widely diverse sectors -- from agriculture to energy to transportation -- increasingly are asking NOAA for information about climate change in order to make the best choices for their families, communities and businesses. To meet the rising tide of these requests, U.S. Commerce Secretary Gary Locke announced the intent to create a NOAA Climate Service line office dedicated to bringing together the Agency's strong climate science and service delivery capabilities.

 

    Secretary Locke said, "By providing critical planning information that our businesses and our communities need, NOAA Climate Service will help tackle head-on the challenges of mitigating and adapting to climate change. In the process, we'll discover new technologies, build new businesses and create new jobs." Jane Lubchenco, Ph.D., under secretary of commerce for oceans and atmosphere and NOAA administrator said, "Working closely with federal, regional, academic and other state and local government and private sector partners, the new NOAA Climate Service will build on our success transforming science into useable climate services. NOAA is committed to scientific integrity and transparency; we seek to advance science and strengthen product development and delivery through user engagement."

    Leaders from numerous public and private sector entities support the creation of NOAA Climate Service. A NOAA release included supporting quotes from Jim Rogers, CEO of Duke Energy; Carol Browner, assistant to the president for energy and climate change; the Navy's Task Force Climate Change; and the White House Office of Science and Technology Policy. Additionally, NOAA include a link to comments from other leaders from government, business, science and environment.

    NOAA said that unifying its climate capabilities under a single climate office will integrate the Agency's climate science and services and make them more accessible to NOAA partners and other users. Planning has been, and continues to be, shaped by input from NOAA employees and stakeholders across the country, with close consideration given to the recommendations of the NOAA Science Advisory Board, National Academies and National Academy of Public Administration.

    NOAA Climate Service will encompass a core set of longstanding NOAA capabilities with proven success. The climate research, observations, modeling, predictions and assessments generated by NOAA's top scientists -- including Nobel Peace Prize award-winners -- will continue to provide the scientific foundation for extensive on-the-ground climate services that respond to millions of requests annually for data and other critical information. Thomas Karl, director of NOAA's National Climatic Data Center, will serve as transitional director of NOAA Climate Service. New positions for six NOAA Regional Climate Services Directors will be announced soon and will provide regional leadership for integrating user engagement and on-the-ground service delivery within the Climate Service.

    NOAA also unveiled its new website -- Climate.gov -- that will serves as a single point-of-entry for NOAA's extensive climate information, data, products and services. Known as the NOAA Climate Portal, the site addresses the needs of five broadly-defined user groups: decision makers and policy leaders, scientists and applications-oriented data users, educators, business users and the public. Highlights of the portal include an interactive "climate dashboard" that shows a range of constantly updating climate datasets (e.g., temperature, carbon dioxide concentration and sea level) over adjustable time scales; the new climate science magazine ClimateWatch, featuring videos and articles of scientists discussing recent climate research and findings; and an array of data products and educational resources.

    Access a release from NOAA with links to various comments and related information on the new office (click here). Access the NOAA Climate Service office website (click here). Access the new NOAA Climate Portal (click here). Access a separate release on the Climate Portal (click here).

Truly Bipartisan Clean Air Act Amendment Bill Introduced

Feb 4: Senators Tom Carper (D-DE) and Lamar Alexander (R-TN) introduced The Clean Air Act (CAA) Amendments of 2010 (S. 2995), legislation that would cut mercury emissions by 90 percent from coal-fired power plants and tighten national limits on emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx). The legislation is co-sponsored by Senators Amy Klobuchar (D-MN), Susan Collins (R-ME), Judd Gregg (R-NH), Edward Kaufman (D-DE), Lindsey Graham (R-SC), Dianne Feinstein (D-CA), Jeanne Shaheen (D-NH), Charles Schumer (D-NY), Joe Lieberman (ID-CT) and Olympia Snowe (R-ME).

    Senator Carper said, "Twenty years have passed since Congress passed significant revisions to the Clean Air Act. While there have been some significant environmental progress along the way, clearly we can do better. If the legislation we are introducing today is enacted, we will do much better. The Clean Air Act Amendments of 2010 provides us an opportunity to work across the aisle, something we do too rarely these days. Passage will not only help us clean up our nation's power sector and our nation's air, it also will provide the certain[ty] and predictability that an important industry in America needs. And, it provides us an opportunity to work with utilities, with environmentalists, and with towns and communities across America to improve the lives and health of tens of millions of Americans in the years to come." Carper notes that EPA has tried to regulate stricter controls on nitrogen oxides, sulfur dioxide and mercury since the late 1990s, but court challenges have invalidated those proposals.

    Senator Alexander said, "This bill is about good health, tourism and jobs. Half a million Tennesseans suffer from asthma, and 400,000 of them are at risk because of poor air quality, so we must act now on getting these harmful pollutants out of the air. Mercury can contaminate our crops and water supply, ultimately harming brain function and other vital organs, and is especially harmful to children and pregnant women. Sulfur dioxide and nitrogen oxides can contribute to respiratory illness and other lung diseases. And millions of people come to the Smokies every year to see the 'blue haze' the Cherokees sang about, not the grey smog that power plant emissions help to create. Tennessee cities by themselves will not be able to make our air clean enough to comply with new EPA regulations and attract auto suppliers and other new jobs to Tennessee unless strong national standards stop dirty air from blowing into Tennessee from other states."   

    A release from Senator Carper indicates that according to the American Lung Association, 186 million Americans live in areas where air pollution endangers lives. The U.S. EPA estimates that the Clean Air Act Amendments would save more than 215,000 lives and more than $2 trillion in health care costs by 2025, by cleaning the air and thereby reducing Americans' likelihood of suffering from chronic lung disease, asthma, or lung cancer.

    Additionally, EPA is moving forward with enhanced National Air Ambient Quality Standards to reduce these pollutants, and when these requirements are implemented, as many as 650 counties nationwide could be considered out of compliance and therefore subject to stricter air quality standards, which makes it very difficult to create and retain jobs. This legislation would help communities meet these air quality standards, so that new manufacturers can get clean air permits so they can build new facilities -- and hire new workers.

    Specifically, the bill would require utilities, through the use of emissions-control equipment (such as "scrubbers" on smokestacks) and other technologies, to: - Cut SO2 emissions by 80 percent (from 7.6 million tons in 2008 to 1.5 million tons in 2018); - Cut NOx emissions by 53 percent (from 3 million tons in 2008 to 1.6 million tons in 2015); and - Cut mercury emissions by at least 90 percent no later than 2015. To ensure that regulations are cost-effective, the legislation also establishes nationwide trading systems for SO2 and NOX emissions to ensure that reductions are cost-effective. Mercury emissions would be reduced by EPA by utilizing the maximum available control technology.

 

    Access a release from Senator Carper (click here). Access legislative details for S. 2995 (click here).

Obama Says No Ideological Approach To Energy Issue

Feb 3: At a meeting with a bipartisan group of Governors from around the country, the President announced actions to accelerate the development of biofuels and clean coal technologies -- what the Administration called "two critical components of his comprehensive plan for transitioning to a clean energy economy." The Vice President and key Cabinet members were also present at the meeting including -- Steven Chu (DOE), Tom Vilsack (USDA), Ken Salazar (DOI), Lisa Jackson (EPA). Also present were White House staffers Nancy Sutley, Chair of the Council of Environmental Quality, and Carol Browner, Assistant to the President for Energy and Climate.

The President announced three measures which the White House said will "work in concert to boost biofuels production and reduce our dangerous dependence on foreign oil." (1) The U.S. EPA has finalized a rule to implement the long-term renewable fuels standard of 36 billion gallons by 2022 established by Congress. (2) The U.S. Department of Agriculture has proposed a rule on the Biomass Crop Assistance Program (BCAP) that would provide financing to increase the conversion of biomass to bioenergy. (3) The President's Biofuels Interagency Working Group released its first report -- Growing America's Fuel. The report, authored by group co-chairs, Secretaries Vilsack and Chu, and Administrator Jackson, lays out a strategy to advance the development and commercialization of a sustainable biofuels industry to meet or exceed the nation's biofuels targets.

Additionally, the President announced a Presidential Memorandum to create an Interagency Task Force on Carbon Capture and Storage to develop "a comprehensive and coordinated Federal strategy to speed the development and deployment of clean coal technologies." The White House said, "Our nation's economy will continue to rely on the availability and affordability of domestic coal for decades to meet its energy needs, and these advances are necessary to reduce pollution in the meantime." The President called for five to ten commercial demonstration projects to be up and running by 2016.

In addition to the announcements made at the meeting with the Governors, it should be noted that the White House has recently made two important decision related to nuclear power as well. On January 29, the President called for the formation of a Blue Ribbon Commission on America's Nuclear Future to provide recommendations for developing a safe, long-term solution to managing the Nation's used nuclear fuel and nuclear waste [See WIMS 1/29/10]. And, on February 1, DOE Secretary Steven Chu issued a release reviewing the President's $28.4 billion Fiscal Year 2011 budget and said it included "restarting the American nuclear power industry." It includes an increase to $54.5 billion, from the $18.5 billion currently allotted, the amount of Federal loan guarantees to be accessed by companies planning to build new nuclear power plants.

President Obama also made an interesting comment, not widely reported, in response to a question at a Town Hall Meeting in Nashua, New Hampshire on February 2, that may indicate a shift in Administration policy. The Questioner said, ". . .if we can invest in technology here at home, to develop clean technology, place that technology in developing countries, not only just where they can have energy and electricity to be productive with, but establish with that an economic system where they have jobs and they are opening up new markets that we can sell our products into and that we can build our relationships with their leaders through. And at home, if we can focus on making ourselves more energy efficient, because we are a very inefficient country when it comes to the use of energy, just like all of the industrialized countries. These two things, I think, done first can help us to avoid having to do cap and trade and other aspects with environmental controls that are going to have negative impacts on our economy. We need to make productive use of our technology and our people so that we can clean up the economy, put people to work, and then if that isn't sufficient enough, we then go to the kinds of programs that have been talked about at the Copenhagen summit." The President replied, "First of all, those are such good ideas I've already adopted them, although I didn't know they came from you."

At the meeting with Governors President Obama said, ". . .if anybody read the story in The New York Times last Sunday, countries like China are moving even faster. And they're very aggressive about wanting to make sure that these clean energy jobs are in their countries. As I said at the State of the Union, I'm not going to settle for a situation where the United States comes in second place or third place or fourth place in what will be the most important economic engine in the future.

"Now, there's no reason that we shouldn't be able to work together in a bipartisan way to get this done. I know that there is some concern about how energy fits together with climate change. I happen to believe that climate change is one of the reasons why we've got to pursue a clean energy agenda, but it's not the only reason. So even if you don't believe in the severity of climate change, as I do, you still should want to pursue this agenda. It's good for our national security and reducing our dependence on foreign oil. It's good for our economy because it will produce jobs. We can't afford to spin our wheels while the rest of the world speeds ahead. . .

In an effort to dispel suspicion of a bias toward a narrow approach to energy independence, the President said, "I want to be clear that my administration is following a non-ideological approach to this issue. We believe in a strategy of more production, more efficiency, and more incentives for clean energy. We're willing to make some tough decisions on issues like offshore drilling, so long as we protect coastlines and communities. We are moving forward on a new generation of nuclear power plants, although we want to make sure that they are safe and secure. One of the things that we're going to be talking about today is investing in the kind of technology that will allow us to use coal, our most bountiful natural resource here in the United States, without polluting our planet. . .

"The bottom line is this: I am convinced that America can win the race to build a clean energy economy, but we're going to have to overcome the weight of our own politics. We have to focus not so much on those narrow areas where we disagree, but on the broad areas where we agree. And I also think it's important for us to understand that in order for us to move forward with a robust energy policy, we've got to have not an either/or philosophy but a both/and philosophy -- a philosophy that says traditional sources of energy are going to continue to be important for a while so we've got to just use technologies to make them cleaner and more efficient; that we're going to have to pursue an energy-efficiency agenda across our economy."

The following is a brief summary of each of four major announcements at the meeting (links to further details are provided below):

Renewable Fuels Standard. EPA has finalized a rule implementing the long-term renewable fuels mandate of 36 billion gallons by 2022 established by Congress. The Renewable Fuels Standard requires biofuels production to grow from last year's 11.1 billion gallons to 36 billion gallons in 2022, with 21 billion gallons to come from advanced biofuels. Increasing renewable fuels will reduce dependence on oil by more than 328 million barrels a year and reduce greenhouse gas emissions more than 138 million metric tons a year when fully phased in by 2022. For the first time, some renewable fuels must achieve greenhouse gas emission reductions - compared to the gasoline and diesel fuels they displace – in order to be counted towards compliance with volume standards.

Biomass Crop Assistance Program. USDA has proposed a rule for Biomass Crop Assistance Program (BCAP) to convert biomass to bioenergy and bio-based products. USDA provides grants and loans and other financial support to help biofuels and renewable energy commercialization. BCAP has already begun to provide matching payments to folks delivering biomass for the collection, harvest, storage, and transportation of biomass to eligible biomass conversion facilities.

Biofuels Working Group. In May, President Obama established the Biofuels Interagency Working Group – co-chaired by USDA, DOE, and EPA, and with input from many others – to develop a comprehensive approach to accelerating the investment in and production of American biofuels and reducing our dependence on fossil fuels. Today the Working Group released its first report: Growing America's Fuel – a new U.S. Government strategy for meeting or beating the country's biofuel targets. The report is focused on short term solid government solutions supporting the existing biofuels industry, as well as accelerating the commercial establishment of advanced biofuels and a viable long-term market by transforming how the U.S. Government does business across Departments and using strategic public-private partnerships.

Presidential Memorandum for a Comprehensive Federal Strategy on Carbon Capture and Storage. Charting the path toward clean coal is essential to achieving the Administration's clean energy goals, supporting American jobs and reducing emissions of carbon pollution. Rapid development and deployment of clean coal technologies, particularly carbon capture and storage (CCS), will help position the U.S. as a leader in the global clean energy race. The President's memorandum establishes an Interagency Task Force on Carbon Capture and Storage to develop a comprehensive and coordinated federal strategy to speed the development and deployment of clean coal technologies.

The Task Force will be co-chaired by representatives of from DOE and EPA and include participants from at least 9 different agencies and offices. The Task Force shall develop within 180 days a plan to overcome the barriers to the deployment of widespread affordable CCS within 10 years, with a goal of bringing five to ten commercial demonstration projects on line by 2016. The plan should address incentives for CCS adoption and any financial, economic, technological, legal, institutional, or other barriers to deployment. The Task Force should consider how best to coordinate existing federal authorities and programs, as well as identify areas where additional federal authority may be necessary. The Task Force shall report progress periodically to the President, through the Chair of the Council on Environmental Quality.

Access the President and Vice President complete comments (click here). Access a release from the White House with links to additional information (click here). Access a White House blog post on the meeting with links to additional information (click here). Access the President's comments in New Hampshire (click here). Access the RFS rule (click here). Access the BCAP rule (click here). Access the Biofuels Working Groups report (click here). Access the full CCS memorandum (click here).

WRI Analysis Shows Copenhagen Pledges Fall Far Short

Feb 2: The World Resources Institute (WRI) has issued a working paper entitled, "Comparability of Annex I Emission Reduction Pledges." As negotiated in December 2009, the Copenhagen Accord provides a mandate for Annex I Parties that choose to associate themselves with the Accord to register their emission reduction pledges by January 31, 2010 [See WIMS 2/1/10]. Many pledges have already been put forward by major industrialized countries and economic blocs. These include the European Union (EU), Japan, Canada, and Australia, and the US.

In the analysis, WRI assess Annex I pledges under the Copenhagen Accord, as well as pledges by Parties that have yet to associate themselves with the Accord (namely Belarus and Ukraine). The Working Paper presents a comparative analysis of the pledges, which was performed with two key aims: (1) To enable negotiators from all countries to compare the emission reduction outcomes that would result from industrialized countries' pledges; and (2) To facilitate efforts to aggregate emission reduction pledges in order to calculate the global impact on the atmosphere.

The absence of details regarding some countries' mechanisms to achieve emission reductions present hurdles to measuring comparability. WRI indicates that countries will need to clarify how they plan to fulfill their pledges, especially with regard to the use of international offsets and inclusion of land use, land use change, forestry (LULUCF) emissions and reductions, if aggregate effort and comparability are to be effectively measured.

WRI says, "Nevertheless, the analysis provides a preliminary picture of where the world is post Copenhagen. Our key conclusions and recommendations are listed . . . Most importantly, we found that while developed country emission reduction pledges could have an important and potentially substantial impact, they will not be enough to meet even the lower range of emission reductions required for stabilizing concentrations of CO2e at 450 ppm and certainly fall very short of goals to reduce concentrations below that level."

WRI's primary conclusion indicates, "Existing pledges by developed countries, when added together, could represent a substantial effort for reducing Annex I emissions by 2020 -- a 12 to 19% reduction of emissions below 1990 levels depending on the assumptions made about the details of the pledges. But they still fall far short of the range of emission reductions -- 25 to 40% --that the IPCC notes would be necessary for stabilizing concentrations of CO2e at 450 ppm, a level associated with a 26 to 78% risk of overshooting a 2ºC goal (Meinshausen 2005). If the pledges are not ratcheted up even beyond the highest pledges, this analysis shows that the additional reductions required between 2020 and 2050 would be significant, with emissions dropping roughly 2.5% annually to reach a goal of 80% below 1990 levels by mid-century."

WRI has also developed an Interactive Chart: Analyzing Comparability of Annex I Emission Reduction Pledges. The updated interactive chart presents countries' pledges side-by–side, including the most recent pledges filed in the Copenhagen Accord. It allows users to break down the pledges based on factors such as different base years, different ranges of commitments, and -– a new feature -– on the basis of emissions intensity. The tools enable negotiators to compare the different emission reduction pledges and aggregate them in order to calculate their global impact -- and see if that impact will be sufficient.

Access the 22-page WRI working paper (click here). Access the WRI Interactive Chart (click here). Access WRI's International Climate Policy website for more information (click here). Access the UNFCCC website for more information (click here). Access an additional informative table from the U.S. Climate Action Network on country commitments which we have referenced previously (click here).

Chu Says Budget Will Restart American Nuclear Power Industry

Feb 1: U.S. Department of Energy (DOE) Secretary Steven Chu issued a release reviewing the President's $28.4 billion Fiscal Year 2011 budget request for DOE. Chu highlighted the Administration’s commitment to create jobs with the development of a clean energy economy [See WIMS 2/1/10], invest in advanced science, research and innovation, maintain a strong nuclear deterrent and secure nuclear materials both at home and abroad, and improve energy efficiency to help curb greenhouse gas emissions that contribute to climate change. The FY 2011 budget request also places an emphasis on DOE improving fiscal performance with the proposed creation of a new initiative on Management Reform.

Secretary Chu said, "The President's budget cuts wasteful spending while making wise investments in innovation and clean energy that will put Americans back to work, save families money and keep our nation competitive in the global marketplace. This budget supports new approaches to energy research and invests in the next generation of scientists and engineers, and it will spark new clean energy projects nationwide, including restarting the American nuclear power industry."

On the nuclear power issue, the Nuclear Energy Institute (NEI) issued a release saying they welcomed the fiscal year 2011 budget request that would increase to $54.5 billion, from the $18.5 billion currently allotted, the amount of Federal loan guarantees to be accessed by companies planning to build new nuclear power plants. Referring to the Presidents statement in the State of the Union that he wanted “a new generation of safe, clean nuclear power plants,” and the budget proposal to triple the loan guarantee for new nuclear plants “is a tremendously positive development for our nation,” according to NEI's President and Chief Executive Officer Marvin Fertel.

Fertel said, “Coupled with the solid bipartisan support for nuclear energy that exists in Congress, the Administration’s initiative will make a meaningful difference in bringing about development of the nuclear energy facilities that our nation needs to meet rising electricity demand and increasingly stringent environmental requirements.” Fertel points out, however, that the budget request does not include funding for the DOE used nuclear fuel management program that for decades has focused on development of an underground repository at Yucca Mountain, NV. DOE has a license application for the facility pending with the NRC, but the Administration’s budget document states that Yucca Mountain “is not a workable option” and that the program will be discontinued this year.

Last Friday, the Administration directed DOE to establish a high level, blue ribbon committee to address the nuclear waste issue [See WIMS 1/29/10]. The Commission which was launched by Secretary Chu, is being co-chaired by former Congressman Lee Hamilton and former National Security Advisor Brent Scowcroft. The Commission is to provide advice and make recommendations on issues including alternatives for the storage, processing, and disposal of civilian and defense spent nuclear fuel and nuclear waste. Chu said, “Nuclear energy provides clean, safe, reliable power and has an important role to play as we build a low-carbon future. The Administration is committed to promoting nuclear power in the United States and developing a safe, long-term solution for the management of used nuclear fuel and nuclear waste." The 15-member Commission is charged with producing an interim report within 18 months and a final report within 24 months.

Other items highlighted by Chu in the President’s FY 2011 budget request for DOE included: Positions the United States to be the global leader in the new energy economy by developing new ways to produce and use clean and renewable energy; Maintains effective nuclear deterrence while working to secure all vulnerable nuclear materials around the world within four years; Engages in cross-disciplinary scientific approaches to our energy and national priorities – including innovative and transformative research at DOE’s National Laboratories; Expands the use of clean, renewable energy sources such as solar, wind, and geothermal while supporting the Administration’s goal to develop a smart, strong, and secure electricity grid; Promotes innovation in the renewable and nuclear energy sectors through the use of expanded loan guarantee authority; and Advances responsible environmental management by cleaning up hazardous, radioactive legacy waste from the Manhattan Project and the Cold War.

DOE indicated that in developing the budget, several program reductions and terminations are proposed which further demonstrate the Administration’s commitment to fiscal responsibility. They include: Eliminating more than $2.7 billion in tax subsidies for oil, coal and gas industries (estimated to generate more than $38.8 billion dollars in revenue over the next 10 years); Terminating Ultra-Deepwater exploration program, saving $50 million; and Canceling planned expansion of the Strategic Petroleum Reserve, saving $71 million.

American Petroleum Institute (API) President Jack Gerard issued a statement on provisions included in the FY 2011 budget submitted to Congress which he said are aimed at imposing new taxes on the oil and natural gas industry. He said, “With America still recovering from recession and one in ten Americans out of work, now is not the time to impose new taxes on the nation’s oil and natural gas industry. New taxes would mean fewer American jobs and less revenue at a time when we desperately need both. A robust U.S. oil and gas industry is essential to the recovery of the nation’s economy. In addition to providing the cost-competitive energy that it is the lifeblood of the economy, the industry is one of the largest employers in the country, supporting more than 9 million jobs, including many green jobs. Imposing new taxes would reduce our nation’s energy security by discouraging new investment in domestic oil and natural gas production and refining capacity and pushing those investments -- and American jobs -- abroad. We hope to work with the administration and Congress to seek sound public policies that will allow the oil and gas industry to create new jobs and help fuel an economic recovery that will benefit all Americans.”

The Natural Resources Defense Council (NRDC) issued a statement on January 29, in advance of the President's budget proposal, and said "additional billions of dollars in loan guarantees for the nuclear power industry would be a mistake." NRDC said, "Energy sources should compete for public dollars based on how well they provide the clean, efficient and affordable power we need. On that basis, nuclear power has a long way to go. It remains a high-cost, subsidy-dependent, radioactive-waste generating, water-depleting, non-renewable energy source that still carries with it the low probability of a high-consequence accident.We can get far more for our money by investing in efficiency gains, conservation and innovative technologies that generate power from wind, solar and other renewable sources; as well as biomass and waste heat from industry."

The Union of Concerned Scientists (UCS) also criticized loan guarantees for nuclear power. Ellen Vancko, nuclear energy and climate change project manager at UCS said, "increasing loan guarantees for nuclear power beyond what Congress already has authorized would shift unacceptable risks from the nuclear industry to U.S. taxpayers. This is a prime example of pork barrel politics on behalf of special interests. . . "While it may be appropriate to provide loan guarantees to support a small number of first-mover reactors, any decision to triple federal loan guarantees could divert critical financial resources from more cost-effective clean energy projects that would come on line much more quickly and put Americans back to work right now."
Secretary Chu will testify on the budget before the Senate Energy & Natural Resources Committee, Chaired by Senator Jeff Bingaman (D-NM) on February 4. Bingaman issued a release indicating, "This Budget Request is a powerful statement of the priority that President Obama is giving to energy, technological competitiveness and nuclear weapons security imperatives, despite the tough fiscal environment we find ourselves in. On most major programs in the department, the President’s budget request basically gets it right. I hope that this request attracts vigorous support from everyone who cares deeply about securing our nation’s energy future, boosting our economic growth and combating nuclear nonproliferation.”

Access a release from DOE with additional details (click here). Access a lengthy release from NEI addressing various DOE budget issues (click here). Access a release from API (click here). Access a release from NRDC (click here). Access a release with links to additional information from UCS (click here). Access a release from Senator Bingaman (click here). Access the detailed 215-page budget document focusing exclusively on Nuclear Energy, Defense Nuclear Waste Disposal & Nuclear Waste Disposal (click here). Access links to more summary and detailed DOE budget documents on additional subjects (click here). Access links to additional DOE budget information (click here).

FY 2011 Budget & Focus On The Clean Energy Economy

Feb 1: The President and the Office of Management and Budget (OMB) released the Administration's proposed $3.8 trillion budget. According to White House budget information, "The Administration is committed to moving the Nation from recession to recovery by sparking job creation to get millions of Americans back to work and building a new foundation for the long-term prosperity for all American families. To do this, the 2011 Budget makes critical investments in the key areas that will help to reverse the decline in economic security that American families have experienced over the past decade with investments in education, clean energy, infrastructure, and innovation.

"But even as we meet the challenge of the recession and work to build an economy that works for all American families, we must also change the way Washington does business – ending programs that don’t work, streamlining those that do, cracking down on special interest access, and bringing a new responsibility to how tax dollars are spent. The President’s Budget takes the steps to help jumpstart job creation, works to strengthen the economic security of American families, and makes the tough choices to put our Nation back on the path to fiscal responsibility."

In his budget message, the President reminded, "As we look to the future, we must recognize that the era of irresponsibility in Washington must end. On the day my Administration took office, we faced an additional $7.5 trillion in national debt by the end of this decade as a result of the failure to pay for two large tax cuts, primarily for the wealthiest Americans, and a new entitlement program. We also inherited the worst recession since the Great Depression—which, even before we took any action, added an additional $3 trillion to the national debt. Our response to this recession, the Recovery Act, which has been critical to restoring economic growth, will add an additional $1 trillion to the debt-- only 10 percent of these costs. In total, the surpluses we enjoyed at the start of the last decade have disappeared; instead, we are $12 trillion deeper in debt. In the long term, we cannot have sustainable and durable economic growth without getting our fiscal house in order.

According to a fact sheet on the budget and "Creating the Clean Energy Economy of Tomorrow," becoming the world leader in developing the clean energy technologies that will lead to the industries and jobs of tomorrow is critical to the future of our country. To help bring about the clean energy economy of tomorrow, the Budget will: Undertake a Comprehensive Approach to Transform our Energy Supply and Slow Climate Change; Develop the Market for Clean Energy Technologies; Spur Investment in Domestic, Clean Energy Manufacturing; Advance the Development of Carbon Capture and Storage Technologies; Eliminate Funding for Inefficient Fossil Fuel Subsidies; Invest in Science Research and Develop­ment; Boost Development of Clean Energy on Federal and Tribal Land; Invest in the Understanding of Climate Change and Its Impacts; Increase the Number of Math, Science, and Engineering Graduates; and Invest in a Smart, Energy-Efficient, and Reliable Electric Grid.

In more detail on transforming the county's energy supply and slowing climate change, the Administration says it "will work to enact and implement a comprehensive market-based policy that will reduce greenhouse gas emissions in the range of 17 percent in 2020 and more than 80 percent by 2050. Businesses will have the flexibility to seek out the most profitable and least costly ways of achieving greenhouse gas emission reductions, from making investments in energy efficiency and low-carbon or zero-carbon fuels to offsetting their emissions through agricultural activities that remove carbon dioxide from the atmosphere, and developing export markets for American clean energy technologies through investments in emission offset activities abroad. The policy will address the needs of vulnerable families, communities, and businesses to facilitate the transition to a clean energy economy. To prepare for the reduction in emissions, the Government will invest in climate registries to account for greenhouse gas emissions; implement regulations that improve energy efficiency, lower energy bills, and reduce emissions; plan for the effects of a changing climate in the stewardship of our natural resources; and undertake the research and development of next-generation energy technologies that will promote our energy and climate security." The Budget also invests $2.6 billion to deepen our understanding of cli­mate change and its impact and calls for the U.S. to take prompt, substantial action to help the least developed and most vulnerable coun­tries adapt and build resilience to the impacts of climate change.

On the subject of ending fossil fuel subsidies, the Administration says, "As we work to create a clean energy economy, it is counterproductive to spend taxpayer dollars on incentives that run counter to this national priority. To further this goal, the Budget eliminates tax preferences and funding for programs that provide inefficient fossil fuel subsidies, which impede investment in clean energy sources and undermine efforts to deal with the threat of climate change. We are eliminating 12 tax breaks for oil, gas, and coal companies, closing loopholes that will raise $36 billion over the next decade. Moreover, this leadership in eliminating subsidies will also encourage prompter action by the major emerging economies to phase out their subsidies, which are in the hundreds of billions of dollars annually."　
　
Access the Clean Energy fact sheet (click here). Access links to complete information on the proposed FY 2011 budget including fact sheets and state-specific information (click here).

DOE Blue Ribbon Commission on America’s Nuclear Future

Jan 29: As part of the Obama Administration’s commitment to restarting America’s nuclear industry, U.S. Secretary of Energy Steven Chu announced the formation of a Blue Ribbon Commission on America’s Nuclear Future to provide recommendations for developing a safe, long-term solution to managing the Nation’s used nuclear fuel and nuclear waste. The Commission is being co-chaired by former Congressman Lee Hamilton and former National Security Advisor Brent Scowcroft.

DOE indicated that in light of the Administration’s decision not to proceed with the Yucca Mountain nuclear waste repository, President Obama has directed Secretary Chu to establish the Commission to conduct a comprehensive review of policies for managing the back end of the nuclear fuel cycle. The Commission will provide advice and make recommendations on issues including alternatives for the storage, processing, and disposal of civilian and defense spent nuclear fuel and nuclear waste.

In his State of the Union address on January 27, the President said, ". . .to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. It means making tough decisions about opening new offshore areas for oil and gas development. It means continued investment in advanced biofuels and clean coal technologies. And, yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America." [See WIMS 1/28/10].

Secretary Chu said, “Nuclear energy provides clean, safe, reliable power and has an important role to play as we build a low-carbon future. The Administration is committed to promoting nuclear power in the United States and developing a safe, long-term solution for the management of used nuclear fuel and nuclear waste. The work of the Blue Ribbon Commission will be invaluable to this process. I want to thank Congressman Hamilton and General Scowcroft for leading the Commission and I look forward to receiving their recommendations." Carol Browner, Assistant to the President for Energy and Climate Change said, “As the world moves to tackle climate change and diversify our national energy portfolio, nuclear energy will play a vital role. Today, the Obama Administration has taken an important step. With the creation of the Blue Ribbon Commission, we are bringing together leading experts from around the country to ensure a safe and sustainable nuclear energy future.”

During a recent hearing before the Senate Energy & Natural Resources Committee, Chaired by Senator Jeff Bingaman (D-NM), Republican members questioned Chu extensively on the need for a more ambitious role of nuclear energy in the mix of technologies to address climate and energy issues. Chu said he and the Administration agree that nuclear energy must be an important part of the energy solution [See WIMS 1/21/10].

Congressman Hamilton said, "Finding an acceptable long-term solution to our used nuclear fuel and nuclear waste storage needs is vital to the economic, environmental and security interests of the United States. This will be a thorough, comprehensive review based on the best available science. I'm looking forward to working with the many distinguished experts on this panel to achieve a consensus on the best path forward." General Scowcroft said, "As the United States responds to climate change and moves forward with a long overdue expansion of nuclear energy, we also need to work together to find a responsible, long-term strategy to deal with the leftover fuel and nuclear waste. I'm pleased to be part of that effort along with Congressman Hamilton and such an impressive group of scientific and industry experts."

The Commission is made up of 15 members who have a range of expertise and experience in nuclear issues, including scientists, industry representatives, and respected former elected officials. The Commission’s co-chairs have a record of tackling tough challenges in a thoughtful, comprehensive manner and building consensus among an array of interests. The Commission is charged with producing an interim report within 18 months and a final report within 24 months.

Other members of the Commission include: Mark Ayers, President, Building and Construction Trades Department, AFL-CIO; Vicky Bailey, Former Commissioner, Federal Energy Regulatory Commission; Former IN PUC Commissioner; Former Department of Energy Assistant Secretary for Policy and International Affairs; Albert Carnesale, Chancellor Emeritus and Professor, UCLA; Pete V. Domenici, Senior Fellow, Bipartisan Policy Center; former U.S. Senator (R-NM); Susan Eisenhower, President, Eisenhower Group, Inc.; Chuck Hagel, Former U.S. Senator (R-NE); Jonathan Lash, President, World Resources Institute; Allison Macfarlane, Associate Professor of Environmental Science and Policy, George Mason University; Richard A. Meserve, President, Carnegie Institution for Science, and former Chairman, U.S. Nuclear Regulatory Commission; Ernie Moniz, Professor of Physics and Cecil & Ida Green Distinguished Professor, Massachusetts Institute of Technology; Per Peterson, Professor and Chair, Department of Nuclear Engineering, University of California - Berkeley; John Rowe, Chairman and Chief Executive Officer, Exelon Corporation; and Phil Sharp, President, Resources for the Future.

Access a release from DOE (click here). Access the Presidential Memo directing the establishment of the Commission (click here). Access DOE's Nuclear Energy website for additional information (click here).

President SOTU: Gridlock; Jobs; Energy, Infrastructure & Climate

President Jan 27: In President Obama's first State of the Union (SOTU) address, he said the public is asking, "why Washington has been unable or unwilling to solve any of our problems. They're tired of the partisanship and the shouting and the pettiness. . . And what the American people hope -- what they deserve -– is for all of us, Democrats and Republicans, to work through our differences; to overcome the numbing weight of our politics."

He began his speech calling 2009, "one of the most difficult years in our history." But, he concluded the address saying, "The spirit that has sustained this nation for more than two centuries lives on in you, its people. We have finished a difficult year. We have come through a difficult decade. But a new year has come. A new decade stretches before us. We don't quit. I don't quit. Let's seize this moment -- to start anew, to carry the dream forward, and to strengthen our union once more."

He analyzed the political roadblocks that have held back progress on some major issues and said, "Democracy in a nation of 300 million people can be noisy and messy and complicated. And when you try to do big things and make big changes, it stirs passions and controversy. That's just how it is. Those of us in public office can respond to this reality by playing it safe and avoid telling hard truths and pointing fingers. We can do what's necessary to keep our poll numbers high, and get through the next election instead of doing what's best for the next generation. . . So we face big and difficult challenges. And what the American people hope -– what they deserve -– is for all of us, Democrats and Republicans, to work through our differences; to overcome the numbing weight of our politics."

He continued his criticism of Washington politics and said, ". what frustrates the American people is a Washington where every day is Election Day. We can't wage a perpetual campaign where the only goal is to see who can get the most embarrassing headlines about the other side -– a belief that if you lose, I win. Neither party should delay or obstruct every single bill just because they can. The confirmation of -- (applause) -- I'm speaking to both parties now. The confirmation of well-qualified public servants shouldn't be held hostage to the pet projects or grudges of a few individual senators. Washington may think that saying anything about the other side, no matter how false, no matter how malicious, is just part of the game. But it's precisely such politics that has stopped either party from helping the American people. Worse yet, it's sowing further division among our citizens, further distrust in our government."

He said "jobs must be our number-one focus in 2010, and that's why I'm calling for a new jobs bill tonight." He called for taking $30 billion of the money Wall Street banks have repaid and using it to help community banks give small businesses credit. Then he linked his call for jobs to infrastructure and energy development.

He said, ". . .we can put Americans to work today building the infrastructure of tomorrow. From the first railroads to the Interstate Highway System, our nation has always been built to compete. There's no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products. . . We should put more Americans to work building clean energy facilities -- and give rebates to Americans who make their homes more energy-efficient, which supports clean energy jobs. . ."

He said, "I've been told that our political system is too gridlocked, and that we should just put things on hold for a while. For those who make these claims, I have one simple question: How long should we wait? How long should America put its future on hold? You see, Washington has been telling us to wait for decades, even as the problems have grown worse. Meanwhile, China is not waiting to revamp its economy. Germany is not waiting. India is not waiting. These nations -- they're not standing still. These nations aren't playing for second place. They're putting more emphasis on math and science. They're rebuilding their infrastructure. They're making serious investments in clean energy because they want those jobs. Well, I do not accept second place for the United States of America."

He said, ". . .we need to encourage American innovation. . . You can see the results of last year's investments in clean energy. . . But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. It means making tough decisions about opening new offshore areas for oil and gas development. It means continued investment in advanced biofuels and clean coal technologies. And, yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America.

"I am grateful to the House for passing such a bill last year. And this year I'm eager to help advance the bipartisan effort in the Senate. I know there have been questions about whether we can afford such changes in a tough economy. I know that there are those who disagree with the overwhelming scientific evidence on climate change. But here's the thing -- even if you doubt the evidence, providing incentives for energy-efficiency and clean energy are the right thing to do for our future -- because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation."

Senate Minority Leader Mitch McConnell (R-KY) issued a statement on the State of the State and said, "The President is always welcome at the Capitol, especially at a time when there is so much important work to be done on behalf of the American people. The President talked about jobs tonight. This is a welcome change in focus after the President and his administration spent nearly an entire year pursuing a partisan health care plan that would have spent trillions of dollars we don't have rather than on a plan for getting Americans back to work. I'm hopeful the administration's new focus on the economy will lead it to say no to more spending and debt, more bailouts, and more government.

“The President's words about the importance of deficit reduction are timely. . . The administration could address this concern right away by directing unspent Stimulus and TARP funds to pay down the federal deficit, and it could implement a true spending freeze. It could also assure families and small businesses that their taxes will not go up at the end of the year, as currently planned. . . Americans are concerned about government spending, debt, jobs, and keeping the homeland safe. They expect us to focus on these core issues until we get them right. In the year ahead, there is much work to be done, and the task before us is clear. We need to get Americans back to work and remain focused on keeping America secure and putting our nation back on the road to prosperity. Republicans look forward to working with the President on these shared goals.”

House Republican Leader John Boehner (R-OH) issued a statement saying, "We had hoped to hear a new commitment to keep his promises to govern from the center, change the tone in Washington, and work with both parties in a bipartisan way to help small businesses create jobs and get our economy moving again. Unfortunately, the President and the Democrats in charge of Congress still aren’t listening to the American people. The American people were looking for President Obama to change course tonight, and they got more of the same job-killing policies instead. . . That includes a trillion-dollar ‘stimulus’ that isn’t working, a fiscally-irresponsible budget that doubles our debt in five years and triples it in 10, a costly government takeover of health care, and a massive national energy tax. The President’s message isn’t the problem, it’s his job-killing policies."

Access the complete State of the Union address (click here). Access the video of the address (click here). Access the statement from Senator McConnell (click here). Access the statement from Rep. Boehner (click here). Access a video of the official Republican response to the State of the Union (click here).

API Critical Of Lack Of Focus On Oil & Natural Gas Jobs

Jan 26: In advance of the President's State of the Union message, the American Petroleum Institute (API) President and CEO Jack Gerard opened a media conference call with a statement calling for the Obama Administration to begin focusing on jobs from producing more American oil and natural gas -- not just "so-called green energy." Gerard also said the some of the Administration's policies will actually make the nation more dependent on imported energy and seem to be aimed at stifling the job creation potential of domestic oil and natural gas development.

He said, "The American oil and natural gas industry clearly has a role to play in putting Americans back to work. The U.S. oil and natural gas industry already supports more than 9 million American jobs and can create many more. The industry created more than two million additional American jobs in the years 2004 to 2007 alone. We are also a leading creator of green jobs. Between 2000 and 2008, the oil and natural gas industry invested more than $58 billion on these and other carbon mitigation technologies, more than either the federal government or the rest of private industry combined. Using Center for American Progress economic assumptions, we have created 1.2 million green jobs and there is more potential."

He also said, "A key talking point for this Administration and Congress is lessening our dependence on imported energy. Yet the very policies it is pursuing will actually make our nation more, not less, dependent on imported energy. Some of the policies advanced recently seem aimed at stifling the job creation potential of domestic oil and natural gas development. Tax proposals in the budget are anti-jobs, anti-consumer and anti-energy. Other initiatives would adversely affect leasing and development on federal lands and U.S. waters and drive up the costs of doing business."

Gerard concluding saying, "The nexus between more energy development of all kinds and more jobs is strong. We hope the Administration comes to recognize that. With the Administration and all Americans, we share a common goal: more jobs. And we're ready to work with everyone to attain it. We need to move beyond political sloganeering and work together to create common sense energy and economic policy that is non-partisan, a policy that will get Americans working again, put the economy firmly back on its feet and bolster our energy security." [Emphasis in original]

The Department of Interior (DOI) immediately issued a point-by-point response -- or what it called a "Rhetoric" v. "Reality" response. Interior spokeswoman Kendra Barkoff said, “Mr. Gerard needs to check his facts before making statements that are so far off the mark. Oil and gas production on federal lands and waters is up -- not down -- from 2008, and under Secretary Salazar’s leadership the Department has offered more than 56 million additional acres for development. Interior’s agencies will continue to promote oil and gas development in the right ways, in the right places, and with a fair return for the American taxpayer, regardless of the political spears Mr. Gerard may throw on any given day.” The DOI release continues to detail facts and figures in response to the API statement.

API issued a counter response saying, "Mr. Gerard stands by his facts. Interior doesn’t rebut one -- and can’t. The bottom line is that Interior is not moving forward with leasing to provide for America’s energy future, which would also create thousands of jobs for Americans and generate billions of dollars in government revenue. Interior’s attack on the veracity of Mr. Gerard’s comments is pure dissimulation. It fails to address Mr. Gerard’s point that leased acreage plunged in 2009 and concedes that lease revenues collapsed by more than 90 percent during the first year of this Interior Department."

Access the complete statement from API (click here). Access the Rhetoric v. Reality response from DOI (click here). Access the counter response from API (click here).

States Seek To Join Endangerment Finding Lawsuit

Jan 22: Massachusetts Attorney General Martha Coakley’s Office announced that it was leading a coalition of 16 states and New York City, in filing a motion to intervene in a lawsuit brought by industry groups last fall to challenge U.S. EPA's Endangerment Finding. The Endangerment Finding, announced December 7 [See WIMS 12/7/09 & Multiple Articles], is the Agency's formal determination that greenhouse gas (GHG) emissions cause climate change and as a result may reasonably be anticipated to endanger public health and welfare. EPA published the Endangerment Finding in response to the Supreme Court’s landmark decision in Massachusetts v. EPA. The finding is the first step towards regulating greenhouse gas emissions under the Clean Air Act. The filing signals the states’ intention to join with the EPA in defending EPA’s decision. The motion was filed in the Federal Appeals Court in Washington, DC.

Joining Massachusetts in the motion to intervene were the states of Arizona, California, Connecticut, Delaware, Iowa, Illinois, Maine, Maryland, New Hampshire, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington, and the City of New York. Attorney General Coakley, who recently lost her run for Ted Kennedy's Senate seat to [See WIMS 1/20/10] Republican Scott Brown said, “The Endangerment Finding marked the end of an era in which the federal government refused to acknowledge that anything could or should be done about global climate change. We are confident that the court will uphold the EPA’s action and that the EPA will press forward with its plan to begin regulation of greenhouse gases. While we continue to hope that Congress will enact effective and comprehensive legislation to control and reduce greenhouse gas emissions, we firmly believe that the EPA has an important role to play whether or not Congress acts and we cannot afford to wait.”

On December 23, 2009, industry groups from various sectors (e.g., Massey Energy Co., National Cattlemen’s Beef Association and Alpha Natural Resources Inc., etc.) filed a single petition for review in the United States Court of Appeals for the D.C. Circuit. Petitioners have not yet identified the specific issues they intend to raise, but Attorney General Coakley’s Office intends to argue that the legal and scientific basis for the EPA’s Endangerment Finding is sound and should be upheld. Assistant Attorney General Carol Iancu, and Assistant Attorney General Tracy Triplett, both of Attorney General Coakley’s Environmental Protection Division are handling the case.

In announcing its participation in the industry groups' lawsuit in December, Tamara Thies, chief environmental counsel for the National Cattlemen’s Beef Association (NCBA) said, “EPA’s finding is not based on a rigorous scientific analysis; yet it would trigger a cascade of future greenhouse gas regulations with sweeping impacts across the entire U.S. economy. Why the Administration decided to move forward on this type of rule when there’s so much uncertainty surrounding humans’ contribution to climate change is perplexing.”

NCBA cited the so-called "Climategate" issue saying, "'Climategate' revealed that the data on which the EPA relied to make this finding is questionable and may have been manipulated to tell a story that global warming alarmists wanted to tell. The fact that the EPA is ignoring this scandal is not going to make it go away.” NCBA also said that as was evident in Copenhagen, "other countries around the world like China and India are unwilling to tie the hands of their economic engines and impose these kinds of costs on their citizens.”

Access a release from the MA AG (click here). Access a release from NCBA with links to additional information (click here).