Hill Heat

Reps. Nick Rahall (D-W.V.), Gene Green (D-Texas), George Miller (D-Calif.), and John Dingell (D-Mich.) have unveiled the House Democratic “all of the above” energy package, The Comprehensive American Energy and Security, Consumer Protection Act (H.R. 6899), which lifts the moratorium on offshore drilling and calls for massive investments in natural gas, oil, and coal, as well ethics reform for the MMS, support for public transit, and a suite of energy efficiency and renewable energy incentives and standards paid for by eliminating some oil subsidies.

Many elements are drawn from previous House bills—H.R. 5351, H.R. 3221, H.R. 6, H.R. 4520, H.R. 6578, H.R. 6078, H.R. 6052, H.R. 6515.

At Climate Progress, Joe Romm reviews the full text of the draft “Gang of Ten” energy legislation, now unofficially co-sponsored by ten Democrats and ten Republicans. The original ten senators are conservative and industry-friendly. Highlights of Romm’s review:

• Title II makes clear that the “consumer tax credits for advanced vehicles” is focused on plug-in hybrid electric vehicles (PHEV), see Section 202 (page 17). The tax credit is “$2,500, plus $400 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours” with a cap at $7,500. A midsized PHEV might consume 0.3 to 0.4 kilowatt-hours per mile when it runs on electricity (yes, Toyota may well do better than that, but I doubt GM will).

  So a PHEV20 (one with a 20-mile range running only on electricity) might have a battery capacity 7 kwh, and get a $3700 tax credit. The Chevy Volt is supposed to be 40-mile electric range and get about $6500.

• Section 254 (page 114) has a geothermal heat pump tax credit up to $2000 and Section 282 (page 168) has a 2-year accelerated depreciation period for geothermal systems.
• Title IV, Subtitle B “Coal-to-Liquid” (page 191) is a tad confusing, but it doesn’t look to me like it’s going to jumpstart the industry, since it requires carbon capture and storage and requires lifecycle greenhouse gas emissions from liquid coal to be no greater than that from conventional petroleum — a very high bar to jump.
• Subtitle C “Nuclear Power” (page 203) has a bad provision that says the Secretary of Energy “shall begin construction of a spent fuel recycling research and development facility not later than 1 year after the date of enactment of this Act.” Recycling is of course a euphemism for reprocessing.
• Subtitle D “Tax Provisions” (page 218) has a short section on enhanced oil recovery that I think is the worst provision in the bill.

Download the full draft.

In August, Tom Friedman penned “Eight Strikes and You’re Out” on McCain’s record on extending renewable energy production and investment tax credits:

Senator McCain did not show up for the crucial vote on July 30, and the renewable energy bill was defeated for the eighth time. In fact, John McCain has a perfect record on this renewable energy legislation. He has missed all eight votes over the last year — which effectively counts as a no vote each time. Once, he was even in the Senate and wouldn’t leave his office to vote.

The eight votes:

• July 30: S. 3335 filibustered 51-43 [Roll Call #192]
• June 17: H.R. 6049 filibustered 52-44 [Roll Call #150]
• June 10: H.R. 6049 filibustered 50-44 [Roll Call #147]
• April 10: S. Amdt. 4419 (tax credits without offsets, attached to Dodd housing bill) passes 88-8 [Roll Call #95]
• February 6: S. Amdt 3983 to H.R. 5140 (tax credits without offsets, attached to stimulus package) filibustered by one vote (58-41; Reid procedural vote with GOP, McCain not voting) [Roll Call #8]
• December 13: H.R. 6 filibustered by one vote (59-40; Landrieu with GOP, McCain not voting) [Roll Call #425]
• December 7: H.R. 6 filibustered 53-42 [Roll Call #416]
• June 21: S.Amdt. 1704 filibustered 57-36 (Landrieu with GOP, Boxer, Brownback, Coburn, Johnson, McCain, Sessions not voting) [Roll Call #223]

The one time the tax credit extension passed, it was known to be a deal-breaker in the House, since there was no funding mechanism approved and it was tied to the housing bill.

See Hill Heat’s earlier timeline of Republican obstruction on extending the renewable tax credits.

According to E&E News, Democratic leadership plans to unveil an “all of the above” energy package today or tomorrow which likely has the following components:

• Expansion of OCS leasing to include areas off the coasts of the Carolinas, Virginia and Georgia, and possibly the eastern Gulf of Mexico as well. A bipartisan Senate plan known informally as the “Gang of 10” proposal would allow drilling in these regions no closer than 50 miles from shore. But House lawmakers and aides did not say how close to shore their plan would allow drilling.
• New revenues from oil companies. A Democratic leadership aide said the bill may include provisions to ensure payment of royalties from late-1990s deepwater Gulf of Mexico leases that currently allow royalty waivers regardless of energy prices. The absence of price-based limits on these royalty waivers could cost the Treasury as much as $14.7 billion over 25 years, according to the Government Accountability Office. The bill may also include the repeal of the Section 199 tax deduction for major oil companies. This plan, past versions of which have also frozen the deduction at 6 percent for non-majors, raises roughly $13.6 billion over a decade, the Joint Committee on Taxation estimated in June.
• A so-called renewable electricity standard that requires utilities to supply escalating amounts of power from sources like wind and geothermal power. The House Democrats plan to include a standard of 15 percent by 2020, an aide said, akin to a measure the House approved last year that did not survive negotiations with the Senate. The plan allows roughly a fourth of the standard to be met with efficiency measures.
• Extension of renewable energy and energy efficiency tax credits.

E&E also reports that Pelosi indicated “the energy bill might include support for automakers’ retooling to make more efficient vehicles.”

This could also be part of an economic stimulus package being prepared or the continuing resolution to extend government spending beyond the Sept. 30 end of the fiscal year, she said.

Alex Kaplun reports for E&E News:

Top House Democrats say that shortly after Congress reconvenes, they will put on the floor a piece of legislation that will include an expansion of offshore drilling but also a renewable electricity mandate, energy-efficiency standards for buildings and oil industry tax provisions.

Rep. Ed Markey (D-Mass.) described the plan as “a political reverse takedown on the Republicans,” by calling the GOP bluff on their calls for an “All of the Above” energy agenda. David Sandalow, an adviser to Sen. Barack Obama (D-Ill.), told E&E News: “We’ll see whether the proponents of all of the above can take yes for an answer.”

Renewable electricity standards, building efficiency standards, and oil tax provisions have repeatedly passed the House over Republican opposition, but have died in Republican filibusters in the Senate.

The legislative plan will represent a compromise from the agendas of the various national lobbying campaigns by outside organizations:

• Al Gore’s We Campaign’s call for a 100% renewable electricity standard by 2018;
• Newt Gingrich’s American Solutions For Winning the Future’s call for expanded drilling;
• T. Boone Pickens’ call for new grid development, tax incentives for wind and solar, and subsidies for natural gas;
• The coal industry’s American Coalition for Clean Coal Electricity’s call for increased advanced coal technology subsidies.

ACCCE and Pickens each have had a significant presence at the national conventions.

On a lighter note, as Open Left’s Matt Stoller found, the people employed by ACCCE to spread the “clean coal” message in Denver weren’t necessarily all up to speed.

At the beginning of the month, five Republican senators and five Democratic senators unveiled an energy package that increases offshore drilling and coal-to-liquids, as well has rolling back some oil industry subsidies in favor of renewable tax breaks.

Leading the group are Sen. Kent Conrad (D-N.D.) and Sen. Saxby Chambliss (R-Ga.). The other members of the group: Sens. John Thune (R-S.D.), Ben Nelson (D-Neb.), Lindsey Graham (R-S.C.), Blanche Lincoln (D-Ark.), Mary Landrieu (D-La.), Johnny Isakson (R-Ga.), Bob Corker (R-Tenn.) and Mark Pryor (D-Ark.). Pryor, Landrieu, Thune, and Graham are up for reelection; Graham is a close associate of Republican presidential nominee John McCain (R-Ariz.).

Provisions of the bill, as described by E&E News:

• Offshore drilling. The drilling provisions would open up large swaths of new acreage in the eastern Gulf of Mexico to new oil-and-gas drilling. Current law provides a 125-mile buffer for Florida in most areas; the proposal would shrink the no-drill zone to 50 miles. It would also allow drilling in federal waters in the Atlantic off the coasts of four Southeastern states – Virginia, North and South Carolina and Georgia – if the states allow it. The states would share in some revenue if they allow leasing.
• Oil subsidy repeal. Total funding for the proposal’s various energy programs is $84 billion—$30 billion of this would come from oil companies, according to a summary circulated today.

  The oil industry revenues would come in part from repeal of major oil companies’ ability to claim the Section 199 domestic manufacturing credit and provisions to ensure federal revenues from flawed late 1990s deep-water gulf leases that currently allow royalty waivers regardless of energy prices.

• $20 billion automotive incentives. The conservation and alternative fuels provisions include $20 billion for an “Apollo Project” aimed at weaning 85 percent of America’s motor vehicles from oil-based fuels in 20 years. The program would include research and development in areas like advanced batteries and funding to help automakers re-tool to make alternative fuel vehicles. Also in the mix are tax credits of up to $7,500 per vehicle for consumers who buy cars that run primarily on non-petroleum fuels.
• Four-year clean credit extension. The proposal would also extend a suite of renewable energy credits – for wind, solar and other projects – and energy efficiency credits through 2012. Current renewable power production and investment tax credits are set to expire at year’s end, and the industry has been pressing for multi-year extensions to provide “certainty” to the market.
• New incentives. Elsewhere, the bill includes new tax credits for highly efficient vehicles and $2.5 billion in funding for development and demonstration of next-generation biofuels and infrastructure, among the suite of conservation and renewable energy provisions.
• Coal-to-liquids and nuclear. In addition to the drilling measures, the bill offers grants and loan guarantees for building coal-to-liquids plants capable of capturing carbon dioxide emissions. It also contains provisions to expand domestic nuclear power, such as increasing staff at the Nuclear Regulatory Commission – which has begun receiving the first applications to build new reactors in decades – as well as work force training.

22 members of the US House of Representatives have introduced the National Conservation, Environment and Energy Independence Act that would lift many restrictions on offshore oil drilling, while providing a projected $2.6 trillion in lease and royalty payments that would generate $390 million for a Renewable Energy Reserve Act. The bill introduced by 11 Democrats and 11 Republicans would open up all protected Outer Continental Shelf lands and end the oil shale leasing moratorium. The bill is in sharp contravention of Democratic leadership but in line with Republican demands.

The leaders of the effort were John Peterson, R-Pa.; Neil Abercrombie, D-Hawaii; Thelma Drake, R-Va.; Tim Walz, D-Minn.; Jim Costa, D-Calif.; and Dan Burton, R-Ind.

• Roscoe Bartlett
• Jim Costa
• Shelly Moore Capito
• Tim Walz
• Neil Abercrombie
• Thelma Drake

A group of ten senators is working on a similar plan. “There’s going to be substantially more drilling and substantially more conservation,” Sen. Mary L. Landrieu (D-La.) said of the Senate plan.

The House bill includes:

• Ending moratorium on Outer Continental Shelf, Gulf of Mexico, and oil shale lease sales: funds apportioned 30% to general treasury, 30% to states, 8% to conservation, 10% to environmental restoration, 15% to renewable energy, 5% to CCS/nuclear waste, 2% to LIHEAP
• Repealing the Waxman provision (Section 526)
• 6-year extension of renewable energy/energy efficiency tax credits
• Drawdown of light grade petroleum from the Strategic Petroleum Reserve, with $100 million going into LIHEAP, $60 million for university research, $15 million for wind research, $30 million for solar research, $30 million for hydro research, $40 million for automotive research, $110 million for industrial emissions research, $70 million for building efficiency R&D, $30 million for geothermal R&D, $30 million for smart grid R&D, $385 million for CCS R&D, $65 million for natural gas extraction research, $5 million for a hydrogen prize, $100 million for battery research

On Saturday, Senate Republicans successfully filibustered the Warm in Winter and Cool in Summer Act (S. 3186), a bill which would have provided an additional $2.5 billion in funding for the Low-Income Home Energy Assistance Program (LIHEAP), nearly double its current funding.

Sen. Bernie Sanders (I-Vt.), a cosponsor of the bill, issued this statement:

“At a time when oil companies are raking in record profits, the stubbornness of those who stood in the way of helping people in desperate need is incomprehensible to me. It is an outrage. The American people do not want to see the most vulnerable among us held hostage by the Senate Republican leaders.”

The National Energy Assistance Directors’ Association has projected that nationwide, the average cost of heating a home this winter will total about $1,114 – 14.6 percent more than last year.

Republican senators Coleman (Minn.), Collins (Maine), Smith (Ore.), and Snowe (Maine) voted with the 45 Democrats and Independents in attendance in favor of the bill. Coleman, Collins, and Smith are up for reelection this year (and are from northern states).

Senators not voting: Allard (R-Col.), Bond (R-Mo.), Bunning (R-Ken.), Burr (R-N.C.), Dole (R-N.C.), Graham (R-S.C.), Harkin (D-Iowa), Inhofe (R-Okla.), Inouye (D-Haw.), Isakson (R-Ga.), Kennedy (D-Mass.), McCain (R-Ariz.), Murray (D-Wash.), Obama (D-Ill.), and Warner (R-Va.).

Today at 2 PM, the entire House GOP caucus is holding a Capitol rally to support their drill-drill-drill bill, dubbed the “American Energy Act” (H.R. 6566) and being promoted as an “all of the above” approach to energy policy. Their memo, acquired by the Wonk Room, reveals their plans to promote the bill as a panacea for high gas prices.

Read the full text of the legislation.

As Center for American Progress Action Fund’s Daniel Weiss points out, however, the House GOP is pushing a number of misleading or false talking points. In particular, they grossly overestimate the expected returns on drilling offshore, opening the Arctic Refuge, or mining oil shale—and fail to mention that any such returns would only be noticeable in decades.

From the Wonk Room.

Former Vice President Al Gore is set to give a major energy policy speech today, in which he will challenge “the nation to produce every kilowatt of electricity through wind, sun and other Earth-friendly energy sources within 10 years, an audacious goal he hopes the next president will embrace.” Gore is speaking at noon at the Daughter of the American Revolution Constitution Hall in Washington D.C.

The electricity sector is the largest producer of greenhouse gases in the United States, with its fossil-fired power plants and an obsolete power grid generating one-third of all our global warming emissions. Gore’s “unprecedented challenge” is a “moonshot” goal, but it is also on the scale of what is needed to avoid climate catastrophe. To stabilize the climate, the Intergovernmental Panel on Climate Change found that industrialized nations need to cut emissions to 25 to 40 percent below 1990 levels. For the United States, whose emissions have risen 15 percent since 1990, that goal translates to 34 to 48 percent below today’s pollution. Transforming the grid would cut global warming pollution by 33 percent from current levels by 2018—what we need for an even shot to halt our global fever.

Moving to all clean electricity would likely spur related reductions in the transportation sector, as the new “smart grid” of electricity distribution designed for renewable sources such as solar and wind power would be able to use plug-in hybrid vehicles for distributed electricity storage. Instead of everyone reliant on a few massive power plants controlled by large utilities, the system would allow both large and small-scale electricity production and storage. The giant wind farms of T. Boone Pickens would be complemented by millions of solar roofs, all feeding into the same dynamic electricity network.