President Signs American Recovery and Reinvestment Act

Feb 17: In record time, President Obama and House and Senate Democrats have passed the American Recovery and Reinvestment Act (H.R. 1) [See WIMS 2/12/09] -- a $787 billion package. The package was able to obtain only three Republican votes on the Senate side that were critical to meeting the 60 vote requirement for passage in the Senate. While Republicans in Washington, DC have nearly unanimously rejected the package of stimulus funding, many Republican governors throughout the country and major business and manufacturing, mining and transportation associations supported the bills passage.

President Obama signed the bill this afternoon (February 17, 2009) at a signing ceremony in Colorado and called the action a "major milestone on our road to recovery," while still emphasizing that we have many miles yet to go. The President said, "Congress has passed my economic recovery plan -- an ambitious plan at a time we badly need it. It will save or create more than 3.5 million jobs over the next two years, ignite spending by business and consumers alike, and lay a new foundation for our lasting economic growth and prosperity." The President acknowledged that some people are skeptical about the plan given how Washington has performed in the past, which is why he's encouraging people to check back at Recovery.gov -- the site where, once the plan is in action, you'll be able to track the funds. He said, "Utlimately, this is your money, and you deserve to know where it's going and how it's spent."

The following is a summary of some of the details for energy, science, infrastructure, water resources and environmental cleanup included in the funding package. [Note: The links below provide even more details.]

Clean, Efficient, American Energy: Over $30 billion to transform the nation’s energy transmission, distribution, and production systems by allowing for a smarter and better grid and focusing investment in renewable technology. $5 billion to weatherize modest-income homes.

Further details for this category include: Reliable, Efficient Electricity Grid: $11 billion; Renewable Energy Loan Guarantees: $6 billion; GSA Federal Buildings: $4.5 billion; Local Government Energy Efficiency Grants: $6.3 billion; Energy Efficiency Housing Retrofits: $250 million; Energy Efficiency and Renewable Energy Research: $2.5 billion; Advanced Battery Grants: $2 billion; Home Weatherization: $5 billion; Smart Appliances: $300 million; GSA Federal Fleet: $300 million; Electric Transportation: $400 million; Cleaning Fossil Energy (carbon capture and sequestration): $3.4 billion; Department of Defense Research: $300 million; Alternative Buses and Trucks: $300 million; Diesel Emissions Reduction: $300 million; and Training for Green Jobs: $500 million.

Transform our Economy with Science and Technology: $15 billion for science facilities, research, and instrumentation. $7.2 billion to expand broadband internet access so businesses in rural and other underserved areas can link up to the global economy.

Further details for this category include: Wireless and Broadband Grants: $7.2 billion; National Science Foundation: $3 billion; National Institutes of Health Biomedical Research: $8.7 billion; University Research Facilities: $1.3 billion; Department of Energy: $2 billion; NASA: $1 billion; National Oceanic and Atmospheric Administration: $600 million; National Institute of Standards and Technology: $360 million; NOAA Operations, Research and Facilities: $230 million; U.S. Geological Survey: $140 million; Small Business Administration: $720 million; Rural Business-Cooperative Service: $150 million; Economic Development Assistance: $150 million; Community Development Financial Institutions: $100 million; Digital TV Conversion Coupons: $650 million.

Modernize Roads, Bridges, Transit and Waterways: $27.5 billion for highway construction; $16.5 billion to modernize federal and other public infrastructure with investments that lead to long term energy cost savings; $18.8 billion for clean water, flood control, and environmental restoration investments; $17.7 billion for transit and rail to reduce traffic congestion and gas consumption.

Further details for this category include: $27.5 billion for highway and bridge construction projects and $1.5 billion for competitive grants to state and local governments for transportation investment. Transit New Construction: $750 million; Transit Upgrades and Repair: $750 million; Transit Capital Assistance: $6.9 billion; Amtrak: $1.3 billion; High Speed Rail and Intercity Passenger Rail Grants: $8 billion; Airport Improvement Grants: $1.1 billion; Transportation Security Administration Explosive Detection Systems: $1 billion; Border and Ports of Entry: $720 million; and Coast Guard: $240 million.

More details for Clean Water, Environmental Cleanup: Clean Water State Revolving Fund: $4 billion; Drinking Water State Revolving Fund: $2 billion; Rural Water and Waste Disposal: $1.38 billion; Corps of Engineers: $4.6 billion; Bureau of Reclamation: $1 billion; Watershed Infrastructure: $340 million; International Boundary and Water Commission: $220 million; Superfund Hazardous Waste Cleanup: $600 million; Leaking Underground Storage Tanks: $200 million; Nuclear Waste Cleanup: $6 billion; NOAA Operations, Research and Facilities: $230 million; Brownfields: $100 million; Construction on Public Lands: $2.5 billion; Reducing Wildfires Threats: $515 million; Bureau of Indian Affairs: $500 million.

In addition to the overall funding, the Center for American Progress (CAP) has developed an interactive U.S. map that provides state-by-state allocations of approximately 69 percent of the total cost of the act where CAP could establish the money distribution of amounts greater than $1 billion and where funding formulas were available. The map compares the amount that each state will get relative to the size of its economy, measured using each state’s 2007 gross state product (GSP).

The state and local funds include, among other provisions, direct tax cuts for working families and those with children; increased unemployment insurance and food stamps to help those most in need; new funding to equip the education system for the 21st century; additional funds for clean energy programs; state-level infrastructure projects; and assistance that is necessary to protect vital services such as Medicaid. CAP notes that many of the other programs in the recovery plan will be distributed through competitive grants to states and localities, or through funding formulas where it is not possible to make estimates at this stage. The remainder is for programs that are distributed at the federal level [See link below for the CAP map].

Access the President's comments (click here); and here (click here). Access a 4-page summary (click here). Access a detailed 12-page summary (click here). Access Text of the Conference Report - Division A (click here). Access Text of the Conference Report - Division B (click here). Access Joint Explanatory Statement - Division A (click here). Access Joint Explanatory Statement - Division B (click here). Access a detailed, line-by-line summary by major category from the Wall Street Journal (click here). Access the CAP map and links to explanatory information and an Excel spreadsheet (click here). Access legislative details for H.R. 1 (click here). [*All]

Senate Hearing On EPAct05 Loan Guarantee Program

Subscribers Note: WIMS will not be publishing on Monday, February, 16, 2009, in observance of President's Day/Washington’s Birthday.

Feb 12: The Senate Energy & Natural Resources Committee, Chaired by Senator Jeff Bingaman (D-NM) held a hearing is to receive testimony on the current state of the Department of Energy Loan Guarantee Program, authorized under Title 17 of the Energy Policy Act of 2005 (EPAct05), and how the delivery of services to support the deployment of clean energy technologies might be improved. EPAct05 authorizes the U.S. Department of Energy to issue loan guarantees to eligible projects that "avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases" and "employ new or significantly improved technologies as compared to technologies in service in the United States at the time the guarantee is issued."

Witnesses testifying at the hearing included David Frantz, Director of Loan Guarantee Program, Department of Energy and representatives of the Council on Competitiveness; Friedman Billings Ramsey & Company, Inc.; and Barclays Capital. Chairman Bingaman and Ranking Member Senator Lisa Murkowski (R-AK) both delivered opening statements.
Chairman Bingaman said, “As I’ve noted before on this topic, the challenges we face in reorienting our energy systems from our current path are significant. Even as many of us realize the dangers to our health, security, and welfare that continuation of the status quo presents, the size of the challenge can be daunting. Putting a price on CO2 will help, and I believe policies such as a Renewable Electricity Standard will also be a part of the solution, but to achieve the speed and scale required, we can’t limit ourselves to one or even a few policy tools. We should explore every possible option and be ready to adapt when policies don’t seem to get the job done. . .

"The loan guarantee program in the 2005 energy bill was aimed squarely at that problem [developing and implementing new technologies], but somewhere along the line it seems the guiding principles of speed and scale were lost. I believe the President and Secretary Chu are bringing the necessary will and sense of urgency to this problem, but we should still ask ourselves if the structure of the program is sufficient to allow them to succeed. Can the Department take the necessary risks -- risks the private sector is unwilling to take or unable to effectively price – to enable these technologies to get over the initial hurdles to commercialization? Will they be able to act at a sufficient scale to reduce the deployment costs that keep these technologies from effectively competing with entrenched current technologies?"

Ranking Member Murkowski said, "Some opponents of this vital program dismiss it as merely a Loan Guarantee Program for the nuclear industry. That is simply not the case. The Title XVII program provides support for a broad portfolio of clean energy technologies - everything from energy efficiency and renewable energy systems; to pollution control and vehicle technology; to advanced nuclear and carbon capture projects.

"The Loan Guarantee Program we established four years ago can now assist us as we seek to rebuild our battered economy. The program supports projects that promise stable, high paying energy sector jobs and will help rebuild a core infrastructure upon which the future prosperity of our country depends.

"We are not risking taxpayer dollars with this program. Instead, fees paid by loan guarantee recipients are designed to cover the costs of potential project defaults.The energy sector obviously needs the Title XVII Loan Guarantee Program as evidenced by the voluminous number of requests submitted to the Department of Energy. Despite the current limit of $42 billion for the program, DOE has received more than $120 billion dollars in applications. . .

". . .there is an urgent need for these services -- particularly in this credit crisis -- and we should ensure that the current program proceeds as expeditiously as possible. Where there are roadblocks, they should be removed. Where rules are ambiguous, clarification should be provided. If there is a desire to broaden the current program to provide additional services or achieve different policy objectives, then it should be done in such a way as to not cause delays in the disposition of current applications. Second, we must ensure equitable treatment of the entire portfolio of clean energy technologies. Now is not the time to be picking technology “winners and losers.”

DOE testified, "This program is an urgent priority for Secretary Chu as we face an unprecedented economic crisis that demands action. Secretary Chu is personally reviewing the program, and has committed to giving this program the attention, departmental resources and oversight it needs to succeed while ensuring that taxpayer interests are protected. . . One immediate priority for Secretary Chu is automating, simplifying and streamlining the existing application and evaluation systems."

DOE summarized the current proposal status including: The 2006 mixed technologies solicitation closed in November 2008 -- 11 projects for $4.0 billion in loan authority; The front-end nuclear power facilities solicitation closed in December 2008 -- two proposals for $2 billion in loan authority; The first nuclear power facilities solicitation also closed in December 2008 -- 15 proposals for $18.5 billion in loan guarantee authority; The fossil energy advanced technologies solicitation Part I applications were due on December 22, 2008 -- eight projects for $8 billion in loan guarantee authority; The advanced renewables solicitation currently has $10B in loan guarantee authority and is scheduled to close in February 2009, with the exception of the large scale renewable projects which will close in April 2009.

Access the hearing website and link to testimony and a webcast (click here). Access a statement from Senator Bingaman (click here). Access a statement from Senator Murkowski (click here). Access the DOE Loan Guarantee Program website for complete background information (click here). [*Energy]

Stimulus Bill Approved By Conference Committee

Feb 11: Amidst some confusion between House and Senate Democrats, Senate Majority Leader Harry Reid (D-NV) announced that an agreement had been reached on the economic stimulus bill by House & Senate conferees. The compromise deal on the American Recovery and Reinvestment Act (H.R. 1) [See WIMS 2/10/09] is for a $789.5 billion package and resolves the differences between the House version of $819 billion, and the Senate version of $838 billion. Insiders say the Senate announcement was made prior to final approval by House Speaker Nancy Pelosi (D-CA). House and Senate Republicans (with the exception of the three Republican Senators necessary for final approval) remain staunchly opposed to the final bill which now must be reapproved, without changes, by both Chambers before it goes to the President's desk.

President Obama issued a statement saying, "I want to thank the Democrats and Republicans in Congress who came together around a hard-fought compromise that will save or create more than 3.5 million jobs and get our economy back on track. Just today, the CEO of Caterpillar said that if this American Recovery and Reinvestment Plan is passed, his company would be able to rehire some of the employees they’ve been forced to lay off. It’s also a plan that will provide immediate tax relief to families and businesses, while investing in priorities like health care, education, energy, and infrastructure that will grow our economy once more. I’m grateful to the House Democrats for starting this process, and for members in the House and Senate for moving it along with the urgency that this moment demands."

Senator Olympia Snowe (R-ME), one of the three Senate Republicans supporting the package (along with Senators Specter, PA, and Collins, ME) issued a statement indicating that she was "directly involved in the Senate-House conference committee process, and was engaged in meetings with Majority Leader Reid last night and this morning that produced the compromise" that was revealed.

She said, "Given the gravity of our economic circumstances, I am pleased that our bipartisan negotiations have yielded a consensus solution that will create jobs, assist the displaced, and invest in our economy. As I’ve said from the outset of this process, it is not a matter of labeling something as spending or as tax relief -- it’s finding and including in this package the vital provisions necessary for jump-starting our economy. This $789 billion compromise will create or retain more 3.5 million jobs and provide tax relief for 95 percent of hard-working American families. We will be vigilant to ensure that every dollar is spent efficiently and effectively and for the sole purpose of turning this economy around and creating a brighter future for our fellow Americans. The time has come to bring everyone together and ensure this measure is swiftly enacted into law."

Senator Specter issued a statement saying, "This is obviously a very difficult vote in view of the large deficit and national debt which we have. But I believe it is indispensible that strong action be taken because the serious economic condition - with millions of jobs lost and millions of people being foreclosed from their houses -- poses a threat that cannot be ignored. The economists are virtually uniform in their prediction that if we do not act we face the potential consequence of a catastrophe and depression the likes of 1929. . . I believe the position of the United States Chamber of Commerce is a solid position from a very conservative organization and a Republican group very concerned with fiscal restraint. They have endorsed this legislation enthusiastically because of the seriousness of the economic situation and because of what it will mean on highways and bridges and dams and putting so many people to work. . ."

February 13, 2009, UPDATE: Here are the links to the actual Conference Committee report that will be voted on and explanatory statements.

Text of the Conference Report - Division A
Text of the Conference Report - Division B
Joint Explanatory Statement - Division A
Joint Explanatory Statement - Division B
H. Res. 168: Rule and Committee Report

Access a video of the February 11, House-Senate Conference Committee meeting (click here). Access the statement from President Obama (click here). Access the statement from Senator Snowe (click here). Access the statement from Senator Specter (click here). Access the WSJ comparison between the House and Senate versions (click here). Access a summary from the Associated Press and USA TODAY research on how some of the differences between the House and Senate bills were resolved (click here). Access a 4-page House Appropriations Summary of the Conference Committee Report (click here). Access a WSJ interactive 1/27/09 map of approximate state distributions of funding (click here). Access legislative details for H.R. 1 (click here). [*All]

DOI Secretary Salazar Details Strategy For Offshore OCS Energy

Feb 10: Saying he needed to restore order to a broken process, Department of Interior (DOI) Secretary Ken Salazar announced his strategy for developing an offshore energy plan that includes both conventional and renewable resources. His strategy calls for extending the public comment period on a proposed 5-year plan for oil and gas development on the U.S. Outer Continental Shelf (OCS) by 180 days; assembling a detailed report from Interior agencies on conventional and renewable offshore energy resources; holding four regional conferences to review the findings; and expediting renewable energy rulemaking for the Outer Continental Shelf. Salazar said, “To establish an orderly process that allows us to make wise decisions based on sound information, we need to set aside the Bush Administration’s midnight timetable for its OCS drilling plan and create our own timeline."

In a news release, DOI indicated that on Friday, January 16, its last business day in office, the Bush Administration proposed a new five year plan for offshore oil and gas leasing. The proposal was actually published in the Federal Register on January 21, the day after the new Administration took office. The deadline for public comment that the Bush Administration established does not provide enough time for public review or for wise decisions on behalf of taxpayers. At the time of the Bush Administration proposal, the U.S. Chamber of Commerce applauded the Minerals Management Service (MMS) proposal to lease newly-available areas in the Outer Continental Shelf (OCS) for oil and gas exploration and development from 2010 to 2015 [See WIMS 1/21/09]. The MMS, under the Department of Interior published its notice on January 21, 2009 in the Federal Register [74 FR 3631-3635]. The Draft Proposed 5-year OCS Oil and Gas Leasing Program for 2010-2015 (DPP) was originally proposed for comments extending through March 23, 2009. DOI indicated that by adding the 180 day extension to the original 60-day period, interested parties will have had a total of 240 days (8 months) to comment on the proposed plan.

Salazar said, “The additional time we are providing will give states, stakeholders, and affected communities the opportunity to provide input on the future of our offshore areas. The additional time will allow us to restore an orderly process to our offshore energy planning.” He said the evaluation of the proposed plan also needed better information about what resources may be available in the offshore areas. He indicated, “In the biggest area that the Bush Administration’s draft OCS plan proposes for oil and gas drilling -- the Atlantic seaboard, from Maine to Florida -- our data on available resources is very thin, and what little we have is twenty to thirty years old. We shouldn’t make decisions to sell off taxpayer resources based on old information.”

Salazar directed the United States Geological Survey (USGS), the MMS, and other departmental scientists to assemble all the information available about the offshore resources -- conventional and renewable -- along with information about potential impacts. The report is due in 45 days. Based on that report, the Department will then determine what areas need more information and create a plan for gathering that information. The Department of the Interior oversees more than 1.7 billion acres on the Outer Continental Shelf -- an area roughly three fourths of the size of the entire United States.

The strategy will also build a framework for offshore renewable energy development, so that the Department can incorporate the significant potential for wind, wave, and ocean current. He said, “The Bush Administration was so intent on opening new areas for oil and gas offshore that it torpedoed offshore renewable energy efforts. I intend to issue a final rulemaking for offshore renewables in the coming months, so that potential developers know the rules of the road. This rulemaking will allow us to move from the ‘oil and gas only’ approach of the previous Administration to the comprehensive energy plan that we need.”

Last September, Congress passed a Continuing Resolution that did not include language extending the Outer Continental Shelf (OCS) Offshore Drilling Ban [See WIMS 9/24/08 & 9/29/08]. The previous ban expired on September 30, 2008. At the time Democrats indicated that the actions did not necessarily reflect a major shift in the Democratic position on offshore drilling, but they said it was a short-term concession to President Bush to keep the government running until a new President and Congress began work this year.

Senate Energy & Natural Resources Committee Chairman Jeff Bingaman (D-NM) said, “Secretary Salazar’s strategy for developing offshore energy is both thoughtful and balanced. Public opinion on offshore development varies from region to region, so his plan to hold regional conferences makes a good deal of sense. I appreciate the Secretary’s initiative in taking on this issue and look forward to working with him on it.”

American Petroleum Institute (API) President Jack Gerard commented on Salazar's plan and said, "Congress made the American people wait nearly 30 years to address our immediate energy challenges. Secretary Salazar today told the American people they must continue to wait -- even though more than two-thirds of them want to tap our vast domestic resources for the benefit of all Americans. . . The draft plan already received a record 120,000 comments from states, environmental groups, industry, labor groups and members of the public – with 87,000 of those comments supporting expanded and expeditious development. Secretary Salazar’s announcement means that development of our offshore resources could be stalled indefinitely. That would delay Americans’ access to nearly 160,000 new, well-paying jobs, $1.7 trillion in revenues to federal, state and local governments and greater energy security."

The U.S. Chamber of Commerce commented saying, "With America's continued reliance on imported oil, we urge the Obama Administration to not let bureaucratic processes slow down the path to energy security. Expanding domestic production will reduce America's dependence on imported oil and significantly reduce the billions of dollars we send abroad each year for energy. Producing American energy on and off our shores has the potential to be an engine of economic growth creating hundreds of thousands of jobs and generating more than $1 trillion in royalty revenue to the government."

The American Chemistry Council (ACC) President & CEO Cal Dooley commented saying, "ACC applauds Secretary Salazar for making the development of a comprehensive energy policy a top priority. . . “We are encouraged by the bipartisan support in Congress last year for lifting the moratoria on offshore domestic energy development. Clearly, consensus has developed around the need for OCS energy to be part of America’s energy equation. We cannot begin soon enough to reshape U.S. energy policy in a way that drives demand for American goods and services, including chemistry; maintains and expands America’s job base; adds leasing revenues to the Treasury; helps reduce greenhouse gas emissions; and advances our security."

Sierra Club issued a statement saying, "Energy independence and jobs will be won by investing in clean energy, not by handing over our coasts to the oil industry. The Obama administration clearly understands that. President Bush's last-minute offshore drilling plan could have been written by oil industry executives. It was not based on science, was not subject to public review, did not consider the best interest of coastal communities, and ignored clean energy options. Revising this drilling plan is an important first step in getting our new energy economy on track."

Natural Resources Defense Council (NRDC) issued a statement saying, "There’s a new way of doing business at the Department of Interior under Secretary Salazar. By committing to a thorough review, Salazar is demonstrating bold leadership that will offer America a new energy future that provides clean domestic energy and cuts our dependence on foreign oil. . . New offshore drilling would risk oil spills from Florida to Maine, and all along the Pacific Coast. This would not only cause tremendous economic damage to fishing and tourism communities, but it would destroy habitat for wildlife, and hurt all of us who live, work and vacation in these places."

Access a release from DOI (click here). Access the statement from Senator Bingaman (click here). Access a release from API and link to a fact sheet (click here). Access a release from the U.S. Chamber (click here). Access the ACC statement (click here). Access a statement from Sierra Club (click here). Access a statement from NRDC (click here). [*Energy/OCS, *Water]

37 Senate Republicans Stand Strong Against Stimulus

Feb 10: Despite the fact that the President, Senate Democrats, business groups, environmental groups and government groups strongly support the stimulus package that passed the Senate today [See WIMS 2/9/09], 37 Republican Senators continue their strong opposition. In his first, prime time press conference, President Obama announced his support for the stimulus package that now must be finalized in a House-Senate Conference Committee.

In his press conference, President Obama said, "It is absolutely true that we cannot depend on government alone to create jobs or economic growth. That is and must be the role of the private sector. But at this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life. It is only government that can break the vicious cycle where lost jobs lead to people spending less money which leads to even more layoffs. And breaking that cycle is exactly what the plan that’s moving through Congress is designed to do. . .

"But as we learned very clearly and conclusively over the last eight years, tax cuts alone cannot solve all our economic problems – especially tax cuts that are targeted to the wealthiest few Americans. We have tried that strategy time and time again, and it has only helped lead us to the crisis we face right now. That is why we have come together around a plan that combines hundreds of billions in tax cuts for the middle-class with direct investments in areas like health care, energy, education, and infrastructure – investments that will save jobs, create new jobs and new businesses, and help our economy grow again – now and in the future."

Announcing its support, the U.S. Chamber of Commerce said, "With the U.S. economy continuing to deteriorate, the U.S. Chamber of Commerce calls on the Senate to approve without delay H.R. 1, the American Recovery and Reinvestment Act of 2009. The legislation is not perfect -- parts of the bill should be modified or eliminated. However, the Chamber urges the Senate to approve H.R. 1, and encourages Congress and the Administration to work on a conference report that provides timely, targeted, and temporary economic stimulus. The Chamber supports pro-growth tax initiatives in the bill. In particular, the Chamber strongly supports provisions that would: extend the net operating loss (NOL) carryback period; provide for bonus depreciation and allow a refundable alternative minimum tax (AMT) credit in lieu of bonus depreciation; extend small business expensing; extend AMT relief; and provide a housing credit. The Chamber also supports provisions to extend the Trade Adjustment Assistance program.

"In addition, the Chamber strongly supports the Reid-Conrad-Ensign proposal on cancellation of indebtedness (COI). The Chamber applauds the inclusion of tax relief for companies that purchase their own or related party debt at a discount by providing relief from the current COI rules. This important provision applies to all restructurings, including debt-for debt, equity-for-debt, cash-for- debt, and similar exchanges. This provision helps preserve jobs, facilitates the deleveraging of the U.S. economy, and strengthens financial institutions’ balance sheets. Moreover, many of the spending-side provisions of the legislation will also provide stimulus and get Americans back to work. Of note, the Chamber strongly supports provisions to increase infrastructure spending. . ."

According to a CNN U.S. National Poll on February 7-8, the President's job approval comes in at 76% Approve, 23% Disapprove; Congressional Job Approval results in 29% Approve, 71% Disapprove. On the specific stimulus question, i.e. "do you favor or oppose the bill that the Senate is expected to vote on?"; the results indicate: 54% Favor and 45% Oppose.

Despite the widespread support for the stimulus, most Republican's in the House and Senate remain opposed. On the Passage of the Bill (H.R. 1 as Amended by the Collins-Nelson (NE) Amendment conducted today, February 10, 37 Republicans voted against the measure, and Senator Gregg (R-NH) who was recently appointed by President Obama to head the Department of Commerce removed himself from the vote. 56 Democrats, 2 Independents and 3 Republicans (Collins, ME; Snowe, ME, and Specter, PA) voted for the measure to obtain 61 votes necessary for passage.

Today, February 10, in opening remarks Senate Republican leader Mitch McConnell (R-KY) said, "The American people were ready to support an economic plan that would work and that wouldn't spend money we don't have on things we don't need. So were Republicans in Congress. What many of us did not expect, however, was that President Obama wouldn't be the author of that plan. In an odd turn of events, the bold economic plan that President Obama called for, ended up being written by some of the longest-serving Democrats in the House of Representatives, and it showed. Yesterday, the Democratic majority in the House postponed a leftover appropriations bill from last year that would bring 2009 spending to more than $1 trillion for the first time in the history of our country. It may seem overwhelming to do all of this at the same time, but in my view, we need to lay all of this spending on the table at once rather than trickle it out in an effort to hide the true cost. We need to be straight with the American people."

Senator Dick Lugar (R-IN) said, "The stimulus bill considered by the Senate is a sprawling affair, with massive spending for a wide variety of projects, some of which are completely unrelated to the immediate economic challenges before us. Further, the bill contains provisions that threaten to undermine the very economic growth it purports to stimulate, placing American businesses and their workers in danger of trade-based retaliations and escalating financial protectionism. . ."

Senator James Inhofe (R-OK) said, ". . .we will be voting on a $1.2 trillion mistake. The American people are tired of these expensive mistakes, but this would not be the first one. Now at the end of the Senate’s consideration of HR 1, we are voting tonight to end debate on what is being called a compromise proposal. It is being called a bipartisan proposal. Let me tell the American people that a vote tonight on a proposal supported by all the Democrats and 3 Republicans is not a bipartisan proposal nor is it any kind of compromise. . ."

House Speaker Nancy Pelosi (D-CA) issued a brief statement saying, "There is no time to delay. The American people need action on the economy now. Despite the worsening economic crisis, Republican leaders in Congress keep saying ‘No’ to legislation designed to help speed relief to America’s families, workers and small businesses." Pelosi included a listing of the House Republican leadership and their recent votes on major legislative proposals.

Access the President's press conference statement and link to the video of the press conference (click here). Access the complete statement from the U.S Chamber (click here). Access the complete statement in opposition from Senator McConnell (click here). Access links to the Senate Republican statements and additional Republican view points (click here). Access a release from Speaker Pelosi (click here). Access a statement from the National Association of Manufacturers (click here). Access a statement from the National Governor's Association (click here). Access a support letter from the U.S. Conference of Mayors (click here). Access a release and letter from the National League of Cities (click here). Access the CNN poll results (click here). Access the roll call vote for the February 10, final passage (click here). [Note: Yesterday's report, linked above, included links to the full text and summaries of the Senate substitute bill]. Access the Read The Stimulus blog for additional information (click here). Access the Stimulus Watch blog for additional information (click here). [*All]

Senate Stimulus Bill Slated For Narrow Passage

Feb 9: Partisan politics and the same old Congressional gridlock were never so obvious over the weekend Friday night and Saturday during the Senate debate on the Senate substitute for the House-passed American Recovery and Reinvestment Act (H.R. 1). After an extensive behind the scenes negotiations led by Senators Susan Collins (R-ME) and Senator Ben Nelson (D-NE) and including several other Democrats and Republicans, a paired down version of the Senate bill emerged that apparently will be supported by Senate Democrats and three Senate Republicans -- Senator Collins; Senator Olympia Snowe (R-ME) and Senator Arlen Specter (R-PA). The so-called Collins-Nelson amendment, plus various floor amendments previously approved now constitute the current Senate version of the bill which totals some $827 billion. The House-passed its $819 billion version on January 28, 2009 [See WIMS 1/29/09] with no Republican support.

A test procedure vote is expected on the Floor of the Senate this evening and a final vote on passage is scheduled for Tuesday. The House and Senate differences must then be resolved by a Conference Committee and then the resulting bill will need to be approved by both the House and Senate again before going to the President for his signature. The process is supposed to be complete on or before President's Day on February 16.

While the President and Democrats apparently will gain a narrow passage of the stimulus bill, all House Republicans and more than 35 Senate Republicans appear united in their opposition to the current stimulus bill. On Friday, February 6, U.S. Senate Republican Leader Mitch McConnell (R-KY) issued a statement saying, “From the very first moment of this debate, there’s been strong bipartisan agreement on one thing: the original version of this bill was too big, too unfocused to work. The President, Senate Democrats, and just about every Senate Republican agreed this bill needed a massive overhaul. . . Virtually everyone agreed this bill lacked focus, didn’t create enough jobs, had too much permanent government expansion, and was just way too expensive with the national debt already reaching frightening new dimensions. . . The more the American people learn about this bill, the less they like it. Americans realize that a bill which was meant to be timely, targeted, and temporary has instead become a Trojan horse for pet projects and expanded government. . . Republicans are ready to support a stimulus bill. But we will not support an aimless spending spree that masquerades as a stimulus. . . But putting another $1 trillion on the nation’s credit card isn’t something we should do lightly."

Access the complete 778-page Collins-Nelson amendment for the American Recovery and Reinvestment Act (click here). Access a 14-page summary of the Appropriations provisions of the bill (including Nelson-Collins amendment and other floor amendments as of February 6) (click here). Access an 11-page summary of Finance provisions as Amended on the Floor through 2/7, Plus Expected Elements of the Collins-Nelson Amendment (click here). Access a release from Senator Collins (click here). Access a statement from Senator Snowe (click here). Access comments from Senator Specter (click here). Access a statement from Senator McConnell (click here). [*All]

Dreams Of Bipartisan Stimulus Fading Fast

Feb 6: While few people actually know what is in the American Recovery and Reinvestment Act, the political tensions and rhetoric are building on both sides of the aisle. Whatever is inside the current version of the massive bill with amendments -- the Democrats are for it; and the Republicans are against it. The House-passed bill [See WIMS 1/29/09] is being reworked in the Senate and it appears that there will be a vote on passage later today (February 6), or over the weekend. Senate Majority Leader Harry Reid (D-NV) said he thinks he has the necessary 60 votes for passage; however, it will likely be a very close vote. Then a Conference Committee will attempt to resolve differences and send the bill to the President for his signature. Likely, results are an $800+ billion stimulus -- approximately $300 billion in tax cuts and $500 billion in spending; with maybe $100 billion on infrastructure including roads, bridges, mass transit, flood control, clean water projects, and other projects.

Even the President appears to have lost his patience, saying on February 4, "It is not merely a prescription for short-term spending – it’s a strategy for long-term economic growth in areas like renewable energy, health care, and education. Now, in the past few days I’ve heard criticisms of this plan that echo the very same failed theories that helped lead us into this crisis -- the notion that tax cuts alone will solve all our problems; that we can ignore fundamental challenges like energy independence and the high cost of health care and still expect our economy and our country to thrive. I reject that theory, and so did the American people when they went to the polls in November and voted resoundingly for change.”

Vice President Joe Biden issued a statement saying that echoed the President’s message of urgency saying, "Quite simply, we cannot wait. We cannot wait another two weeks, three weeks, four weeks. We cannot wait. Our economic recovery package is now before the Senate. It will put us back on track to create and save 3 to 4 million jobs."

House Speaker Nancy Pelosi (D-CA) issued a release on February 5, saying the economic Recovery Plan, "must not be weakened with failed Bush-era theories." She said, "As we work toward bipartisan consensus, the President has made clear that any modification that changes the focus from creating jobs and transforming our economy from top to bottom or that weakens the economic impact of this package is unacceptable."

Republican Senators say the bill needs a "massive overhaul." Senate Minority Leader Mitch McConnell (R-KY) said "Now is the time to act -- but it’s not the time to act foolishly. . . “action for the sake of action is almost always unwise. What’s needed is the right action. And the stimulus plan that Democrats in the House and Senate have proposed is not the right action. . . Including interest, the proposal before us comes to a staggering $1.3 trillion -- a figure that makes most peoples’ head spin. It includes billions in wasteful spending. And it increases permanent federal spending by nearly $300 billion -- locking in bigger and bigger deficits every year. Apparently, the authors of this bill just couldn’t resist inserting scores of long-cherished pet projects. That’s how you end up with $70 million for climate research, tens of millions to spruce up government office buildings here in Washington, and $20 million for the removal of fish passage barriers in a stimulus package that was supposed to be timely, targeted, and temporary. . ."

The independent Congressional Budget Office (CBO) has released recent reports on the House passed H.R. 1 and the Senate Substitute bill for H.R. 1. The reports include: (1) H.R. 1, American Recovery and Reinvestment Act of 2009 (January 30, 2009 ); (2) H.R. 1, American Recovery and Reinvestment Act of 2009 (February 2, 2009 ); and (3) Estimated Macroeconomic Effects of the Inouye-Baucus Amendment in the Nature of a Substitute to H.R. 1 (February 4, 2009 ) [See links below].

Access a release from the House Speaker including the President's statement (click here). Access the VP's statement (click here). Access a release from the Senate Minority Leader (click here). Access the CBO reports: #1 (click here); #2 (click here); and #3 (click here). Access the debate on the bill on cable TV (C-SPAN2). Access voting action roll call votes on the various amendments and links to details (click here). Access legislative details for H.R. 1 (click here). [*All]

Markey-Platts Introduce Renewable & Efficiency Standards Bills

Feb 4: In a bi-partisan effort to create jobs and re-power the American energy sector, Representatives Edward Markey (D-MA) and Todd Platts (R-PA) introduced a renewable electricity standard [RES or RPS (Renewable Portfolio Standard)] that would ensure that America is generating a quarter of its electricity from clean energy sources by 2025 (H.R. 890, American Renewable Energy Act). To compliment this expansion of clean energy with effective energy efficiency measures, Representative Markey also introduced an energy efficiency standard [EES] that will cost-effectively cut electricity demand (H.R. 889, Save American Energy Act). The two measures will create more than a half million jobs and will save consumers more than $180 billion. Markey is the Chair of the House Select Committee on Energy Independence & Global Warming and the Chair of the House Environment and Energy Subcommittee of the House Energy & Commerce Committee.

Representative Markey said, “With our economy in crisis, renewable energy can create hundreds of thousands of new green jobs, revitalize declining manufacturing sectors, and decrease global warming pollution. If we follow an ambitious clean energy path, American families will save money, construction and manufacturing workers will be back on the job, and our environment will be safer for generations to come. Massachusetts and more than half of the country already have renewable energy standards, and so should our entire nation.” Representative Platts said, “This legislation takes a significant step -- similar to what is already taking place in many states, including my home state of Pennsylvania -- to help ensure America reduces its dependency on foreign oil and creates a more stable energy supply for our nation. Establishing a federal Renewable Electricity Standard will help to protect our environment as well as promote economic development and energy security.”

According to a release from Markey, twenty-seven states and the District of Columbia have passed renewable electricity requirements, and "a national standard will further unleash technology innovation and put Americans back to work, creating more than 350,000 green jobs over the next decade." The Save American Energy Act would institute an energy efficiency resource standard that reduces electricity demand by fifteen percent by 2020.

Markey's release indicates that efficiency measures are "not only the fastest, cheapest and cleanest source of energy, they will also lead to $130 billion in consumer savings over the next 20 years. Efficiency measures in the Save American Energy Act will lead to the creation of 260,000 new jobs, putting people to work in retrofitting buildings and weatherizing homes. As efficiency measures decrease energy consumption, The Save American Energy Act will reduce peak electricity demand by 90,000 megawatts by 2020, eliminating the need to build 300 medium-size power plants."

The Union of Concerned Scientists' (UCS) preliminary analysis of the legislation indicates that the Markey-Platts bill would boost renewable energy generation by 135 percent above and beyond current policies between now and 2025. Alan Nogee, UCS Clean Energy Program director said, "This electrifying standard would provide a smart, proven, cost-effective strategy to ramp up our clean energy use, create tens of thousands of jobs, and lower consumer utility bills. The clean energy tax incentives that Congress is finalizing will get us moving in the right direction in the near term, and the renewable energy standard makes sure we stay on that path for the foreseeable future."

UCS said in the coming weeks it will release a more comprehensive analysis of a 25-by-2025 proposal. UCS also maintains the RES Toolkit that provides comprehensive information on each existing state renewable electricity standard for experts and concerned citizens (See link below).

Access a release from Representative Markey (click here). Access legislative details for H.R. 889 (click here). Access legislative details for H.R. 890 (click here). Access a release from UCS (click here). Access the UCS RES Toolkit (click here). [*Energy]

Obama Calls For New Executive Order On Federal "Regulatory Review"

Jan 30: President Obama has signed and issued a Presidential Memorandum on "Regulatory Review," not to be confused with a memorandum by the same title issued by Rahm Emanuel, Assistant to the President and Chief of Staff on January 20 which dealt with procedures for proposed or final regulations issued by the Bush administration [See WIMS 1/21/09]. The new Presidential Memo deals with the regulatory review process and relationship of OMB's Office of Information and Regulatory Affairs and the various regulatory agencies. This relationship and process was often highly controversial during the Bush administration. The new Presidential Memo was not available on the White House website, and was not discussed in recent press briefings, but was published in the Federal Register on February 3, 2009.

The new, Presidential Memo, dated January 30, indicates, "For well over two decades, the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB) has reviewed Federal regulations. The purposes of such review have been to ensure consistency with Presidential priorities, to coordinate regulatory policy, and to offer a dispassionate and analytical 'second opinion' on agency actions. I strongly believe that regulations are critical to protecting public health, safety, our shared resources, and our economic opportunities and security. While recognizing the expertise and authority of executive branch departments and agencies, I also believe that, if properly conducted, centralized review is both legitimate and appropriate as a means of promoting regulatory goals.

"The fundamental principles and structures governing contemporary regulatory review were set out in Executive Order 12866 of September 30, 1993. A great deal has been learned since that time. Far more is now known about regulation -- not only about when it is justified, but also about what works and what does not. Far more is also known about the uses of a variety of regulatory tools such as warnings, disclosure requirements, public education, and economic incentives. Years of experience have also provided lessons about how to improve the process of regulatory review. In this time of fundamental transformation, that process--and the principles governing regulation in general -- should be revisited.

I therefore direct the Director of OMB, in consultation with representatives of regulatory agencies, as appropriate, to produce within 100 days a set of recommendations for a new Executive Order on Federal regulatory review. Among other things, the recommendations should offer suggestions for the relationship between OIRA and the agencies; provide guidance on disclosure and transparency; encourage public participation in agency regulatory processes; offer suggestions on the role of cost-benefit analysis; address the role of distributional considerations, fairness, and concern for the interests of future generations; identify methods of ensuring that regulatory review does not produce undue delay; clarify the role of the behavioral sciences in formulating regulatory policy; and identify the best tools for achieving public goals through the regulatory process. . ."

Access the Federal Register publication of the complete memo (click here). Access the Access the 2-page Regulatory Review Memo from Rahm Emanuel (click here). [*All]

Readers & Subscribers Note

We apologize for the lack of daily postings Friday, Monday and today. We have been without Internet services (email and web) since Friday, January 30, 2009, at approximately 9 AM, due to a significant outage problem with our Internet Service provider. A very frustrating experience!

We are back online now and will resume postings starting tomorrow.

Thank you for your patience.

House Democrats Pass Economic Stimulus Bill

Jan 28: House Democrats passed their version of an $819 billion American Recovery and Reinvestment Act (H.R. 1) by a vote of 244 to 188 (all Republicans & 11 Democrats voted against the bill) [See WIMS 1/15/09]. The debate over the bill between Democrats and Republicans repeated the intense partisan differences common in the 110th Congress. The House version is definitely a Democratic bill and a substitute amendment by Republicans was rejected. Observers are predicting more compromise between Democrats and Republicans in the Senate; however, there are still substantial differences in philosophical approaches to the stimulus. Many are saying the bill is short on infrastructure funding, particularly in light of the ASCE report calling for $2.2 trillion in needed investment over a five year period [See WIMS 1/28/09].

House Speaker Nancy Pelosi issued a statement following the House vote saying, “Today’s vote is a victory for the American people. As the President urged us to do in his Inaugural Address just eight days ago, the House is taking action, ‘bold and swift,’ by passing a bill to create and save 3 to 4 million jobs. This is a bill about the future and about how we create jobs for today’s workers and for the next generation. It provides tax cuts for 95 percent of Americans, invests in science and innovation, in energy, in health care, in education -- all with strict accountability and fiscal responsibility. I look forward to swift Senate passage and for President Obama to sign the American Recovery and Reinvestment Act into law before the Presidents’ Day recess."

House Republican Leader John Boehner (R-OH) issued a statement on the House floor opposing what he called, "Democrats’ $1 trillion 'stimulus' package" and supporting the Republican proposal crafted by House Ways & Means Committee ranking member Dave Camp (R-MI) and Republican Whip Eric Cantor (R-VA). Republicans said their bill would provide "fast-acting tax relief that will create jobs in America -- a plan that would create 6.2 million new jobs by the end of 2010." Boehner said, “The bill that we have on the floor, the underlying bill, has as an example 32 new, brand new, government programs that spend $136 billion. Now, we all know how long it takes to get a new program up, the bureaucracy that has to be hired before we can ever get that money out into the economy."

The Natural Resources Defense Council (NRDC), issued a statement saying, “The economic recovery package funds vital programs to improve the efficiency of our homes, buildings and federal offices. It also includes urgently needed grants for companies to invest in renewable energy technologies. The funding to repair our nation’s crumbling water and transportation systems will immediately create jobs and strengthen our nation’s roads, bridges, and pipes."

NRDC indicated in a brief summary that the House bill would provide: 3.4 billion for states for clean energy projects; A grants program for renewable energy technologies covered by the renewable energy tax incentives; $6.2 billion for weatherization of low income homes; $3.5 billion for the Energy Efficiency and Conservation Block Grant Program (supports clean energy projects primarily at the city and county levels); $2 billion for clean energy research & development; $6 billion for increasing energy efficiency in federal buildings; $12 billion for transit (an amendment by Rep. Nadler (D-NY) increased transit funding from $9 to $12 billion); $2 billion for ready-to-go drinking water infrastructure projects; $6 billion for ready-to-go sanitation infrastructure projects.

Access the breakdown of the roll call vote (click here). Access a statement from the Speaker (click here). Access a release from Representative Boehner (click here); and his Floor statement (click here). Access extensive coverage, links and video summaries of the debate posted on the Speakers blog site (click here); and including the Republican substitute here (click here). Access legislative details for H.R. 1 (click here). Access a release from NRDC (click here). [*All]

ASCE Releases Timely Infrastructure Report Card; $2.2 Trillion Needed

Jan 28: With President Obama and Congress considering a massive economic stimulus in the range of $800 billion to over a trillion dollars [See WIMS 1/15/09], the American Society of Civil Engineers (ASCE) released its sobering 2009 Report Card for America’s Infrastructure. The timely assessment assigns a cumulative grade of D to the nation’s infrastructure and notes that a five-year investment need of $2.2 trillion from all levels of government and the private sector. According to an announcement, decades of underfunding and inattention have jeopardized the ability of our nation’s infrastructure to support our economy and facilitate our way of life. Since ASCE’s last assessment in 2005 there has been little change in the condition of the nation’s roads, bridges, drinking water systems and other public works, and the cost of improvement has increased by more than half a trillion dollars.

ASCE President D. Wayne Klotz, P.E., F.ASCE said, “Crumbling infrastructure has a direct impact on our personal and economic health, and the nation’s infrastructure crisis is endangering our future prosperity. Our leaders are looking for solutions to the nation’s current economic crisis. Not only could investment in these critical foundations have a positive impact, but if done responsibly, it would also provide tangible benefits to the American people, such as reduced traffic congestion, improved air quality, clean and abundant water supplies and protection against natural hazards.”

As the nation’s infrastructure receives focused attention from the White House, Congress and the public, ASCE’s 2009 Report Card for America’s Infrastructure provides an assessment of the condition and need for investment of 15 infrastructure categories, including, for the first time, levees. While there has been some improvement in energy since 2005, overall conditions have remained the same for bridges, dams, drinking water, hazardous waste, inland waterways, public parks and recreation, rail, schools, solid waste and wastewater, and have worsened in aviation, roads and transit. Security, a category that was added to the Report Card in 2005, and which received an incomplete grade, has been removed from the list of assessed categories and added into the methodology used to assess each individual category. Grades ranged from a high of C+ for solid waste to a low of D- for drinking water, inland waterways, levees, roads and wastewater.

The Report Card also presents five key solutions for raising the nation’s infrastructure GPA. These include: Increasing federal leadership in infrastructure; Promoting sustainability and resilience; Developing federal, state and regional infrastructure plans; Addressing life-cycle costs and ongoing maintenance; and, Increasing and improving infrastructure investment from all stakeholders.

The report indicates that redevelopment of brownfields sites over the past five years generated an estimated 191,338 new jobs and $408 million annually in extra revenues for localities, but federal funding for “Superfund” cleanup of the nation's worst toxic waste sites continues to decline steadily. Scoring a grade of D-, the nation’s drinking water and wastewater systems and inland waterways face difficult problems. Leaking pipes lose an estimated seven billion gallons of clean drinking water a day, and there is an annual shortfall of at least $11 billion to replace aging facilities that are near the end of their useful life and to comply with existing and future federal water regulations.
Aging systems discharge billions of gallons of untreated wastewater into U.S. surface waters each year, and an estimated $390 billion must be invested over the next 20 years to update or replace existing systems and build new ones to meet increasing demand. Finally, while the average tow barge can carry the equivalent of 870 tractor trailer loads, 30 of the 257 locks still in use on the nation’s inland waterways were built in the 1800s and another 92 are more than 60 years old. The cost to replace the present system of locks is estimated at more than $125 billion.

The 2009 Report Card was developed by an advisory council of 28 civil engineers representing each of the infrastructure categories, as well as a broad spectrum of civil engineering disciplines. Each category was evaluated on the basis of capacity, condition, funding, future need, operation and maintenance, public safety and resilience. A detailed report, which accompanies the grades released, will be released on March 25, 2009.

On January 21, ASCE released their recommended ‘Principles for Infrastructure Stimulus Investment’ designed to help guide lawmakers and the Obama administration when allocating economic stimulus funding for infrastructure projects poised to aid in rebuilding the nation’s economy. ASCE is encouraged by last week’s introduction of the American Recovery and Reinvestment Bill of 2009, which highlights a shared focus on accountability and infrastructure investment. This investment is expected to create and sustain jobs, and begin to address the nation’s crumbling infrastructure if appropriately applied to areas that most require federal support.

Access a release on the Report Card (click here). Access more information on the Report Card and links to a webcast (click here). Access a release on the Principles for Infrastructure Stimulus (click here). [*All]

Reactions To President's Directives On Energy & Climate Change

Jan 27: There was significant reaction from many sectors to President Obama's direction to U.S. EPA to review the previous denial of a waiver request by California to set its own standards for the regulation of vehicle emissions and his directive for the Department of Transportation (DOT) to establish higher Corporate Average Fuel Economy (CAFE) standards for carmakers' 2011 model year. [See WIMS 1/26/09]. In his speech, announcing the directives, the President also delivered his strongest statements to date on climate change and global warming. He said, ". . . the long-term threat of climate change, which, if left unchecked, could result in violent conflict, terrible storms, shrinking coastlines, and irreversible catastrophe. . ."

On the California waiver it is important to emphasize precisely what the President said as there has been considerable misleading reports and statements on his statement. The President said, "California has shown bold and bipartisan leadership through its effort to forge 21st-century standards, and over a dozen states have followed its lead. But instead of serving as a partner, Washington stood in their way. This refusal to lead risks the creation of a confusing and patchwork set of standards that hurts the environment and the auto industry. . . And that's why I'm directing the Environmental Protection Agency to immediately review the denial of the California waiver request and determine the best way forward. This will help us create incentives to develop new energy that will make us less dependent on the oil that endangers our security, our economy and our planet." [emphasis added]. It appears the President is proposing a national standard and would like to discourage individual states from adopting the California standard.

There has also been confusing reporting on the number of other states interested in adopting the California standard. The State of California reports that thirteen other states, as of January 21, 2009, have adopted California's standards including: Arizona, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington. In various reports and statements, it has also been implied that there would be many different regulations in the various states if the California waiver were granted. It should also be emphasized that if the California waiver were approved and other states were to adopt the California standard as permitted under the Clean Air Act, there would only be two different standards -- not 16-18 different standards in various states.

The following is a sampling of various reactions from different sectors to the President's announcements. Access the complete statements by clicking on the active links.

House Speaker Nancy Pelosi (D-CA) - "This morning, President Obama signaled that our country can no longer afford to wait to combat the climate crisis and our dangerous dependence on foreign oil. He is setting our country on a path led by science and innovation, in a dramatic departure from the past eight years. Granting the request of California and other states to move forward with reducing greenhouse gases emissions from vehicles will steer American automakers to retool their fleets. Only through innovation will automakers be able to create the greener cars of the future and regain their global competitiveness. President Obama has also sent a clear message on CAFE standards. Restarting the implementation of new fuel efficiency standards will allow the Obama Administration to bring fresh thinking to the process and ensure the standards achieve the goals set by Congress in the landmark 2007 energy bill."

House Republican Leader John Boehner (R-OH) - “The President’s action today is disappointing. The effect of this policy will be to destroy American jobs at the very time government leaders should be working together to protect and create them. Millions of American jobs will be placed in further jeopardy if automakers are forced to spend billions to comply with potentially dozens of different emissions standards in dozens of different states. . . Reversing the decision could open the door to states setting their own standards, forcing struggling American automakers -- which recently received billions in taxpayer funds -- to comply with potentially dozens of different and costly standards across the country."

U.S. Senator Barbara Boxer (D-CA) - "I have long said that granting California the waiver so that California and 18 other states can address tailpipe emissions from cars is the best first step the President can take to combat global warming and reduce our dependence on foreign oil. It is so refreshing to see that the President understands that science must lead the way. We know that the scientists and professionals at EPA have made it clear that science and the law demand that the waiver be granted. As Chairman of the Environment and Public Works Committee, I will be working with the new EPA Administrator to ensure that the California waiver moves forward as quickly as possible. The President's comments about the importance of American leadership on clean energy and global warming were also music to my ears."

U.S. Senator James Inhofe (R-OK) - It’s unfortunate that the administration believes a patchwork of state regulations is better than a single national fuel economy standard. This is a crippling mandate for the ailing auto industry. Why attempt to bail out the auto industry on one hand and on the other mandate regulations that will further raise costs and result in more job losses in the industry? The potential granting of this waiver could authorize an untested, state-by-state regulatory program that could undermine the national CAFE standard, thus creating a patchwork of regulatory compliance obligations that would provide marginal, if any, benefit from a greenhouse gas reduction standpoint, but would tremendously increase costs and burdens on interstate commerce and on the automobile industry. It is a political exercise that attempts to address a global issue with a statewide solution that undermines a carefully crafted and newly revised national fuel economy standard.”

Representative Edward Markey (D-MA) - This is an energy triple play that will cut global warming pollution, increase innovation, and reduce our dependence on foreign oil. It shows what a visionary president is capable of doing, and the faith he has in the economic revival that America's automotive and energy industries can produce. . . President Obama is right to reconsider the way these fuel economy standards are implemented, and will undoubtedly use sound science and realistic analysis to achieve the strongest results that benefit consumers. Granting the waiver to California, Massachusetts and other states to go forward with reducing global warming emissions from vehicle tailpipes is what even the Bush Administration’s own experts concluded must be done, and I’m delighted that the era of politics trumping science and the law is over.

California Governor Arnold Schwarzenegger - "With this announcement from President Obama less than a week into his administration, it is clear that California and the environment now have a strong ally in the White House. Allowing California and other states to aggressively reduce their own harmful vehicle tailpipe emissions would be a historic win for clean air and for millions of Americans who want more fuel-efficient, environmentally-friendly cars. My administration has been fighting for this waiver since 2005 and we will not give up until it is granted because we owe it to our children and to our grandchildren to do more than just protect our natural resources, we must also work to improve them so that we leave behind an environment for future generations that is better than it is today.” [See also a California chronology on the waiver issue]

National Association of Clean Air Agencies - "Federal legislation must not preempt state or local governments from taking additional and more stringent actions to reduce GHG emissions. . . EPA should propose and promulgate a finding that GHG emissions endanger public health and welfare and use the authorities under the Clean Air Act to regulate GHG emissions. . . The Bush Administration’s denial of California's waiver request left California and over a dozen states with limited means to reduce motor vehicles' contributions to climate change. The Administration should immediately overturn the decision denying California's waiver application. . ." [Excerpted from a comprehensive set of recommendations for the Obama Administration, dated 12/16/08]

Alliance of Automobile Manufacturers - "The Alliance supports a nationwide program that bridges state and federal concerns and moves all stakeholders forward, and we are ready to work with the Administration on developing a national approach. Since CA sought federal permission to set its own fuel economy/CO2 standards, there have been many developments. The U.S. Supreme Court directed EPA to reconsider greenhouse gas regulations for autos, the Congress passed stringent new fuel economy standards requiring CO2 reductions of at least 30%, automakers are offering more than 25 models of hybrids for sale in 2009, President Obama and a Democratic Senate and House are considering a comprehensive, economy-wide approach to CO2 reductions, and the credit crunch is producing the toughest marketplace since World War II. Today in the U.S. there are three voices on fuel economy/CO2 -- NHTSA, EPA and CA -- and each has different standards, different structures and different timelines. Automakers seek a federal-state solution that provides us with compliance clarity and one national standard. The Alliance also urges the Obama Administration to issue fuel economy standards for MY2011, because automakers are working on their product plans now and need the certainty of final standards."

U.S. Chamber of Commerce - “At a time when we need to jump start our economy, regulating CO2 in this manner would stop most of President Obama’s stimulus proposal cold in its tracks and create a regulatory train wreck. California should not set national standards for environmental regulation. The President already has the authority to regulate greenhouse gas emissions from motor vehicles under the Energy Independence and Security Act of 2007. Allowing the California waiver would create a patchwork of regulations, be inefficient, and not achieve the desired outcome. As Congress tries to bail out the auto industry, California wants to punch more holes in the bottom of the boat. In addition, such a move would put the EPA one step closer to making carbon dioxide ‘subject to regulation’ under the Act."

National Association of Manufacturers - "The NAM understands the fundamental importance of protecting the environment. Our member companies are committed to greater environmental sustainability, including energy efficiency and conservation and reducing greenhouse gas emissions associated with global climate change. We know we cannot solve the climate change issue alone. . . A separate waiver for California would lead to a patchwork of greenhouse gas reduction laws when climate change is a global issue and should be addressed on a national level."

American Petroleum Institute - API supports President Obama’s desire to fortify the nation’s energy security with a comprehensive energy policy. The oil and natural gas industry, which supports 6 million workers, stands ready to advance those national goals and we urge policymakers to proceed with plans to extend new leases on non-park federal lands and waters to develop energy resources that belong to the American people. However, the President’s directive to the Environmental Protection Agency to reconsider its denial of California’s request for a waiver that stopped California and 13 other states from implementing their own limits on auto emissions is not the way to go on reducing greenhouse gas emissions. Creating a patchwork regulatory structure across multiple states would most likely impose higher costs on consumers, slow economic growth and kill U.S. jobs.

Earthjustice - "President Obama's directive is a much welcome move toward an energy efficient economy, with cleaner air and reduced greenhouse gas emissions. We're very pleased the President took this immediate step toward allowing California and other states to set stronger standards. We're on our way to producing more jobs and a cleaner environment, during a time where restoring both the economy and the environment are crucial to this country."

Natural Resources Defense Council - “What a thrilling moment to have our new president put his vision into action for a cleaner and safer environment. President Obama’s announcement is a big step in fulfilling his campaign promises for a clean energy economy that will move America beyond oil, create new jobs and reduce global warming pollution. This is a strong signal to the world that America is ready to quickly step forward as a leader in the fight against global warming.”

Environmental Defense Fund - President Barack Obama signed two executive orders that could be remembered as the critical turning point toward achieving real energy independence and stopping global warming. . . The President's powerful statement affirming his commitment to moving aggressively to cut global warming emissions and unleash America's clean energy future laid out clear goals for action in the coming weeks and months.

National Wildlife Federation - "Today’s decision provides the kind of sound direction the auto industry needs to once again lead and build the kind of cars not only America needs, but the world needs. Our energy policies will no longer be based on denial and delay but instead on sound science that tells us we don’t have to choose among efficient vehicles, jobs and a healthy environment. With these new standards and President Obama’s proposed new green investments, we can advance cutting-edge technology that will restore America’s place as a world leader in the auto industry, save consumers money, and reduce our global warming pollution. President Obama has sent a clear message that America is leaving behind our failed fossil fuel policies that leave consumers at the mercy of wild swings in prices at the pump."

Union of Concerned Scientists - "This is a clean break from the previous administration's do-nothing approaches on global warming and U.S. oil dependence. Reconsidering the waiver denial is a clear indication that the new administration is ready to lead on energy and global warming. With this announcement, President Obama is beginning to make good on his campaign pledge to restore science to its rightful place in federal policymaking. I'm confident the administration will heed the advice of EPA staff scientists, grant the waiver, and take necessary steps to implement nationwide greenhouse gas standards for vehicles. If EPA Administrator Lisa Jackson follows through with her promise to keep the process transparent, we'll know the role science played in this decision."

GreenpeaceUSA - “For eight years, President Bush blocked the country’s progress on global warming solutions. At long last, the era of obstruction and denial is over. . . Detroit itself has indicated that this action is not only possible but also good for business. In its ‘modernization plans’ submitted to Congress as part of its request for a taxpayer bailout last fall, General Motors pledged fuel efficiency improvements that would allow the company to meet a national clean cars standard consistent with California’s, according to an analysis by Natural Resources Defense Council."

United Nations Environment Programme - "Just days after taking office, US President Barack Obama has appointed a climate envoy and cleared the way for new rules to force automakers to produce cleaner cars. The President signed papers aimed to prod the struggling US auto industry to design new fuel-efficient vehicles. His Administration is also considering whether to allow California to regulate car emissions, which are blamed for contributing to global warming. The move could prompt 18 states to put in place tougher emission limits than federal standards over coming months."

Access the complete statements above by clicking on the active links. Access the "The Energy Independence and Security Act of 2007" Presidential Memo (click here). Access the "State of California Request for Waiver" Presidential Memo (click here). Access various WIMS-eNewsUSA blog posts on the California waiver issue (click here). [*Energy, *Climate]