Hill Heat

The rhetoric and campaigning heats up as Sens. Barbara Boxer (D-Calif.) and John Kerry (D-Mass.) prepare to unveil climate legislation on Wednesday, September 30th.

St. Louis Post-Dispatch They were 30,000 petitions gathered by the Missouri Association of Electric Cooperatives urging Bond, R-Mo., to oppose present versions of cap-and-trade legislation to combat global warming as Congress gets ready to see a new bill this week. “I think certain people pushing this bill see me as one of the biggest thorns in their sides. If they don’t now, they will,” said Bond, who was on hand to receive the postcards.

E&E News “The legislation is going to be very interesting to people because we did some really different things and we’re excited about it.”

E&E News “It’s going to need a lot of work.” Brown said he did not expect the Boxer-Kerry bill to include language adopted in the House that tries to assist energy-intensive manufacturing industries, including steel, pulp and paper and cement. “My understanding is they did not include the House language on manufacturing. But I’ve been talking to them about it. They are very open to it. They are in no way dismissive.”

E&E News Both Brown and Stabenow said they would welcome the release of the Senate bill even though it will give critics something tangible to target. “It always does. There is always something to shoot at. But I think it is the right step, and then we start working to improve it.”

Des Moines Register “We are seeing a system that is just inherent with special interests.”

Sussex Countian “We must act to reduce black carbon – a dangerous pollutant emitted by old, dirty diesel engines like those in some school buses and thought to be the second largest contributor to global warming after carbon dioxide.”

Des Moines Register Sen. Bob Corker, R-Tenn., called the proposed credit trading a “Rube Goldberg notion” that would wind up “transferring wealth out of this country to other countries around the world.”

Speaking at the United Nations Climate Summit, President Barack Obama said “the time we have to reverse this tide is running out.” E&E News interviewed Senators on their schedule for action.

“Nearly 1 in 10 Americans are looking for work. President Obama’s scheme is for less American energy production. Less energy production will mean fewer jobs for Americans.”

Finance Chairman Max Baucus (D-Mont.) also said yesterday that he is still planning a markup for key pieces of the climate bill that deal with international trade and allocation of allowances. “I’m going to take my cues largely from leader Reid to see what his schedule is, and how quickly climate change is moving this year. If it looks like it’s clearly moving, we’re going to mark up.”

For her part, Boxer would not give any specifics when asked about her timeline for moving the bill through the Environment and Public Works Committee. “We’re going to mark up shortly. As soon as we’ve held the requisite number of hearings.”

Majority Whip Dick Durbin (D-Ill.) was also circumspect about Obama’s call for moving the climate bill. “I want to get to all of these issues this year, as the president has asked us to. But I think Senator Reid is reflecting the reality of the calendar, and we just have to see what we end up with. Senator Boxer is preparing for the debate. She’s ready. But the question is whether we have the time to treat this issue as it should.” “The Europeans are our friends and allies and we need to work with them and the rest of the world on this climate change issue. But unfortunately, the European Union doesn’t have control over the Senate calendar. And Senator Reid, I think, is being honest that this is becoming problematic the longer it takes for us to get to health care.”

Boxer and Kerry are still aiming to release their legislation before the end of the month, though Kerry yesterday tried to give himself a little bit of wiggle room for its formal unveiling. “That’s our current plan. But we’ve got a lot of drafting to do between now and then. But we’re working on it.”

“I’ll take second place to no one on climate change. I introduced the first cap-and-trade bill on the Senate floor. I introduced the second. All of them had nuclear power as a component. The radical environmentalists are driving the agenda. And for someone to say that they have a robust nuclear element, I’d love to see it. There’s been no indication of it.”

Majority Leader Harry Reid (D-Nev.) yesterday sidestepped a question about whether he would hold a vote before the end of the year on the Boxer-Kerry legislation. “We’re going to push climate as hard and as fast as we can.”

“Sometimes in this country the greatest deliberative body in the world acts as though it is the only deliberative body in the world, and that we should wait until it gets its healthcare passed,” the EU’s ambassador to the US, John Bruton, has complained. “The world cannot wait on the Senate’s timetable.”

E&E News “We’re not at 60 votes yet. But there are a lot of potential senators who could be part of that 60.” “We think we can get Republican support for this bill. Not just one senator, but several.” “It’s not easy to predict how we’ll complete the work this year. But we’re making every effort to get it done this year. We’re certainly working toward concrete progress before the Copenhagen meetings. I think we’re clearly working with the goal of action this year.”

Tom Carper “We always talk about silver linings. The fact we’ve slowed down on health care I think gives us a chance to do a better job on the clean energy front. We need to take advantage of that.”

The Hill “I wish we could have done everything we had to do by now, but it just takes time. It’s a new president, a new Congress and a big agenda. It just takes time.”

USA Today If the deal making in Copenhagen leads to a new pact that would harm the U.S. economy, “no such treaty or agreement can be approved by the Senate,” says Sen. James Inhofe, R-Okla.

E&E News Senate Foreign Relations Chairman John Kerry (D-Mass.), Boxer’s lead co-pilot in writing the climate bill, said that the authors are in talks with their fellow Democrats on carbon market oversight, as well as funding for clean coal technology, other low-carbon energy technologies and adaptation. “There are a lot of different pieces,” Kerry said. Asked how often he is counting votes, Kerry replied, “Every day.”

The Hill “The U.S. has been dragging its feet for eight years.”

E&E News As for specifics, Boxer had been under pressure from her left to ramp up the House-passed bill’s 2020 target from 17 percent to 20 percent. “I don’t have to prevail on Senator Boxer,” said Sen. Frank Lautenberg (D-N.J.). “She knows what’s right.” “I’m feeling pretty good about the tactics, the strategy, that as much as possible, we’d like it to include Republicans. The one thing I believe, bipartisanship is a means, not an ends.”

The Hill “I don’t know that we’ve pulled back. It’s just the formulation from the House I find objectionable on many grounds. Without jumping up and down any further, I think more constructive ways of fighting climate change can be found and I’ll be working to find it.”

E&E News When asked about Bruton’s criticism, Sen. John McCain (R-Ariz.) shot back, “Well, I don’t think there are 10 Americans that know who he is.”

Washington Post “I believe very strongly that action on climate change has to include meaningful reductions. We have also got to make sure that we don’t kick the economy in the head.”

The Hill “There are some who are saying that we have to hurry up and do it yesterday because Copenhagen is coming. This is a serious enough issue that we must take the time to do it right.”

E&E News “The alphabet agencies are not the fourth branch of government, and they ought to take judicial notice of what’s happening and what’s not happening in the Senate,” Nelson said last week when asked about the prospect of EPA climate regulations.

The Hill Sen. Ben Nelson (D-Neb.), who opposed a global warming bill creating a cap-and-trade system last year, said he doesn’t pay much attention to what people from other countries say about the Senate. “We’re going to do it the way we think it’s appropriate to do it. And we will not be driven by their criticisms.”

The Hill “I’m not sure that the Senate is going to be dictated by the timing in December. It would be helpful to go to that very important meeting with legislation, but I’m not sure people are going to feel comfortable rushing it.”

The Hill Sen. Sheldon Whitehouse (D-R.I.) said the EU is right to blame the Senate for blocking long-needed action. “Partly, it’s the fact that healthcare is crowding everything else out, but it’s also partly because the polluting industries see the Senate as a place where they can hold 40 votes,” Whitehouse said.

E&E News For her part, Boxer brushed aside Lincoln’s public opposition to the cap-and-trade bill. “She’s such an expert on agriculture. It’s great,” Boxer said. “And I look forward to working with her on all of the issues, including climate.”

Reuters “People are so focused on healthcare, there haven’t been a lot of discussions,” on the climate bill worries, Brown added. Meanwhile, Senator Blanche Lincoln, who is taking over the chairmanship of the influential Senate Agriculture Committee, on Wednesday fretted climate change legislation would hurt farm profitability through higher energy costs. It would be “a heavy lift” to pass a climate change bill this year, she predicted. “In this economy, it is important to take it one step at a time,” she said as she praised the pending energy bill.

E&E News In contrast to the Democrats, several GOP members of the agriculture panel said Lincoln’s recent comments against the climate bill indicate she could be independent of Democratic leadership. “I think it could, but I don’t know,” said ranking member Saxby Chambliss (R-Ga.). “I can’t jump inside her mind and see. It has the potential to change it.”

Reuters “It’s a difficult schedule” with many members already “anxious” about healthcare reform, Senator Dick Durbin, the second-ranking Democrat, told Reuters when asked about prospects this year for a bill to cap emissions of carbon dioxide and other greenhouse gases.

Wisconsin Business “I’m not signing onto any bill that rips off Wisconsin,” Feingold declared, arguing the bill’s mandatory caps on greenhouse gas emissions could put the coal-dependent Badger State at an economic disadvantage compared to other regions and nations. “Western Wisconsin is particularly strong in being concerned about this because of their reliance on coal,” Feingold said of the bill, which has already passed the House. “There is a real possibility … that it will be unfair to Wisconsin and Wisconsin ratepayers.” In addition to fixing the bill’s carbon allocations to put the Midwest on better economic footing with the rest of the country, Feingold was among 10 senators to recently raise the possibility of levying tariffs on other nations – including China – that may not practice comparable environmental responsibility. ”Why should we leave ourselves completely exposed while they just get to go forward?” Feingold asked.

From the Wonk Room.

Even as their colleagues place roadblocks on energy reform, several members of the U.S. Senate are attempting to strengthen the American Clean Energy and Security Act, the green economy legislation passed by the House of Representatives this June. As Sen. Barbara Boxer (D-CA) and Sen. John Kerry (D-MA) take the lead to write the Senate draft, many of their fellow senators have proposed specific policy improvements:

• EMISSIONS LIMITS: Sens. Ben Cardin (D-MD), Frank Lautenberg (D-NJ), Bernie Sanders (I-VT), and Sheldon Whitehouse (D-RI) are calling for the legislation to strengthen its 2020 target for greenhouse pollution reductions to 20 percent below 2005 levels, instead of the current 17 percent target. “I like the House bill, don’t get me wrong,” said Sen. Ben Cardin (D-MD). “But I think we can do better.” Lautenberg told reporters: “That’s the objective, as far as I’m concerned, because the glide path has to be established that enables us to get to 80 percent in 2050. You can’t get there unless you start aggressively pushing.”
• GREEN TRANSPORTATION: Sen. Tom Carper (D-DE) is working to strengthen the bill’s funding for green transportation, pushing language that would “devote a guaranteed share of revenues from carbon regulation to transit, bike paths, and other green modes of transport.” The Clean, Low-Emission, Affordable, New Transportation Efficiency Act (S. 575 / H.R. 1329) would auction ten percent of carbon market allowances for clean transit improvement. Senators Arlen Specter (D-PA), Jeff Merkley (D-OR), Frank Lautenberg (D-NJ), and Ben Cardin (D-MD) have co-sponsored the legislation.

Washington Post As we are moving to address some of our nation’s great challenges – revitalizing our economy, putting Americans back to work and passing health insurance reform – scientists are telling us we have a short window to take the steps that are needed to avoid the ravages of global warming. We must also act quickly to ensure America leads the world in clean energy technology. We need to confront all of these issues; we don’t have the luxury of picking and choosing. By creating powerful incentives for clean energy, the bill that Sen. John Kerry (D-Mass.) and I will introduce in September will restore our economy and create jobs at home while reducing carbon pollution and making us less dependent on foreign oil. John Doerr – one of the nation’s leading venture capitalists, who helped launch Google and Amazon.com—has predicted that the investment capital that will flow into clean energy will dwarf the amount invested in high-tech and biotech combined. It will create millions of jobs in America – building wind turbines, installing solar panels on homes and producing a new fleet of electric and hybrid vehicles. We can successfully address all of these challenges. Our forebears have set the pace ever since our nation was founded. President Obama has reminded us that America built the transcontinental railroad and established the National Academy of Sciences in the midst of the Civil War. In the 1960s, we passed historic civil rights legislation even as we took on the challenge of going to the moon. At the end of the day, leaders have to lead when action is needed.

Washington Post Cap-and-trade legislation will fail under its own weight, just like health-care legislation. Each massive, misguided policy is being doggedly pushed by the Obama administration and the Democratic congressional leadership in a narrow, partisan fashion that will contribute to and ensure its failure. We could forecast the American outrage, based on past experience with these types of proposals, and if the Democrats succeed in forcing these bad policies on American families, they will be held accountable by the public. The administration’s health-reform proposal would nationalize and bureaucratize health care in America. Cap-and-trade, meanwhile, will kill 2 million American jobs; shrink the household incomes of average Americans by more than $1,000 annually; and penalize the industries that produce our nation’s energy – at a time when we are already concerned about the high costs of fuel and utilities. It will increase our dependence on foreign energy imports, which is already at an astounding 60 percent. We have seen such proposals before, and the good news is that they have failed miserably because Americans are well informed and understand how they could impact their lives.

Washington Post As lawmakers return to Washington and assess the fiery backlash of constituent opposition to government-run health care, those mired in the thick of the climate change debate are wondering: What does it all mean for us? The warring factions over climate policy should step back and try to discern whether constituents are signaling a more basic distrust of new government schemes. Polling data from the past several months indicates that such public distrust is real, deep and widespread. This means the Democrats’ government-run, cap-and-trade scheme – in fact, an energy tax that extends into every corner of American life – now faces an even higher hurdle, including growing opposition from many Democrats in the Senate. Such distrust will only grow if Democrats insist, as they did in the House, on crafting climate legislation in their inner sanctums, with no time for serious public input and debate. And this is exactly the course being drawn in the Senate. Still, Washington’s appetite for spending, taxing and regulating – cap-and trade contains elements of each – is boundless. So, despite having public opinion on our side, those opposed to cap-and-trade are facing a monumental battle this fall in the Senate. There will be a mad race for 60 votes, and the outcome will reverberate beyond 2010.

E&E News “I’d like to hear what they have to say about it before I shoot my mouth off,” Bennet’s signed on as co-sponsor to a bill from Sen. Tom Udall, (D-N.M.) and Udall of Colorado that would enact a 25-percent-by-2025 renewable electricity standard. “It’s been an enormous positive for Colorado,” Bennet said. “The market adapted. Our evidence is that it works.” When it comes to Colorado’s fossil fuels, Bennet for now is stepping behind natural gas, calling for it to have a bigger role in the Senate bill. “It was essentially absent from the House bill,” Bennet said. “I’d like to know why that is.” Bennet said he also sees “opportunities to tie together natural gas with intermittent power sources like sun and wind.” “I don’t have any specifics today,” Bennet said about what he wants to see. “I’m talking with people in the environmental community and natural gas people and hearing what their ideas are.” “In Colorado now we’re confronting these issues because of the water shortages that we have,” Bennet said. “If we are going to be able to assure that another generation of Coloradans are able to farm, or one after that, we need some answers to these questions how do we preserve our water resources.”

E&E News Senate Energy and Natural Resources Chairman Jeff Bingaman (D-N.M.) has long advocated price controls as part of a cap-and-trade bill, including a “safety valve” in previous versions of his own. “I think it’s something that makes a lot of sense to look at,” Bingaman said. “These cap-and-trade bills have so many pieces,” Bingaman said. “I don’t know that you can point to one thing and say, ‘Stick that in and everyone jumps on board.’ I think it’s much more complicated than that.”

E&E News Sen. Kit Bond (R-Mo.) complained during an EPW Committee hearing yesterday about comments from Boxer and Kerry that they may not even be putting out allocation language with their draft bill in early September. “That troubles me a great deal,” Bond said. “We can’t leave these allocations blank, placeholders, if we’re going to give Americans a fair, open and transparent view of the legislation.”

E&E News Barbara Boxer (D-Calif.) is considering a “price collar” for her global warming bill that could help to curb the economic costs from a cap-and-trade program. “I don’t know why we can’t consider this as one more way to give more certainty,” Boxer said during a hearing today. “I’m looking at it, is what I’m saying.”

E&E News Among other things, the senators said they would seek a “border adjustment mechanism” that could slap trade sanctions on carbon-intensive goods from developing countries that do not have strong enough climate policies. “In the absence of an adequate international agreement, a border measure could help to prevent countries from responding to climate change less rigorously than the United States and undercutting the effectiveness of our climate policy by shifting, rather than reducing, greenhouse gas emissions,” the senators wrote. Other Senators that signed on: Russ Feingold (D-WI), Carl Levin (D-MI), Evan Bayh (D-IN), Robert Casey (D-PA), Arlen Specter (D-PA), Jay Rockefeller (D-WV), Robert Byrd (D-WV), Al Franken (D-MN)

New York Times As Congress considers energy and climate legislation,” the senators wrote, “it is important that such a bill include provisions to maintain a level playing field for American manufacturing.” “It is essential that any clean energy legislation not only address the crisis of climate change, but include strong provisions to ensure the strength and viability of domestic manufacturing,” the letter said.

“E&E News’:http://www.eenews.net/EEDaily/2009/08/05/1/ Sen. Kit Bond (R-Mo.) criticized the power companies for even trying to negotiate with congressional Democrats. Either way, he said, the electric utilities lose. “That’s bargaining with somebody on how they’re going to hang you,” Bond said. “They’ll hang you with minimal pain, or they’ll torture you to death.”

E&E News “So let us see if we can figure out how to distribute emission allowances in a way that one might call just,” Baucus said at a hearing on allocations today. “Let us see if we can figure out how to give all Americans what they deserve.” “The House bill provided solid relief to low-income Americans through these means,” he said. “The Senate should match it, or build on it.” “I don’t want to prejudge at this point,” he said. “I just want to take a good, strong, hard, fresh look at allowances to see what makes sense. Everything can be improved upon.”

CQ “I doubt it’ll be major. There’ll be some,” Senate Finance Chairman Max Baucus , D-Mont., said Tuesday, when asked about changes to the allocation formula.

WV Metro News “There are a number of ways to use allowance revenues to mitigate the cost of climate legislation on consumers and businesses,” Senator Baucus said.  “For example, Congress could use the money from auctioning allowances to cut taxes by cutting marginal rates, by cutting capital gains rates, by cutting payroll taxes or by doing all of the above.”

ENews USA He said, “Economists expect that these allowances will have a value, like cash. Thus, many argue that the government should not just give these allowances away. Many argue that the government should auction them, and return the proceeds to consumers. Others argue that the government should allocate a portion of the allowances to regulated companies. Doing so would soften the effects of putting a price on carbon.” . . . “Allowances will have significant value. In 2012, the first year of the program in the House‐passed bill, the Congressional Budget Office [CBO] puts their value at about $60 billion. For the period of 2010 to 2019, they amount to more than $870 billion.” Baucus cites the CBO which says, “[T]he creation of allowances by the government should be recorded as revenues. That logic does not hinge on whether the government sells or, instead, gives away the allowances. Allowances would have significant value even if given away because the recipients could sell them or, in the case of a covered entity, use them to avoid incurring the cost of compliance.”

Washington Post “We want an America in which we create hundreds of thousands of ‘green jobs,’ but not at the expense of destroying tens of millions of red, white and blue jobs.”

Washington Post “It’s very hard for Congress to do one big thing, much less do a couple of really big issues at the same time,” said Sen. Byron L. Dorgan (D-N.D.), whose state produces coal as well as wind power. Dorgan, who could be a swing vote on a climate bill, said he believes in capping carbon emissions, but not this way. He fears that cap-and-trade will create a market open to manipulation, like existing securities markets. He remains noncommittal about his ultimate vote. “We have a whole mountain range to climb before we get there,” he said.

Washington Post “What they did, we’ll keep,” said  Sen. Tom Harkin (D-Iowa), chairman of the Senate Agriculture Committee. “We’re going to maybe do some other things that would maybe embellish what they did in the House.” He wants to be more generous with “carbon offset” programs that allow farmers to be paid for no-till agriculture that keeps carbon in the soil.

Delta Farm Press “If the United States passes this bill (without China and India), we’re not going to impact temperatures to any significant degree. Isn’t that correct?” “‘Because overall land area and crops decline due to aforestation, the modeling indicates a net decrease in total agricultural soil carbon storage as carbon is transferred from agricultural soils to the aforestation pool.’ “The whole purpose of this hearing is just to be honest with people. So, what’s going out of production? The important thing about that is it affects the pork producer, the cattle guy — it beats the living daylights out of them. Why? Because prices will go up. They’re out there saying, ‘Look, my input costs are going to go up with electricity, natural gas, fertilizer.’ “Just tell them: how many acres are going out of production?” “Many of the offsets (Vilsack) speaks about wouldn’t go to the row crop person to offset his higher energy, fertilizer and other costs,” Johanns continued. “It would go to the person who is planting the forestland. “But, again, unless you can quantify this, you can’t sell this plan. It becomes the ‘hope and a prayer’ plan for agriculture because you can’t tell farmers and ranchers what they’ll be exposed to in terms of input costs. That’s a huge issue.” It’s no consolation “to stand with one foot in the campfire and one in the ice bucket and say, ‘on average, I’m in good shape,’” said Johanns. “It’s no consolation to tell farmers and ranchers, ‘you’re going to be in good shape, on average,’ if you don’t know the regional differences, the crop differences, if you can’t tell them how much land will go out of production. “And yet we have a House bill (Waxman/Markey) that passed. I find that shocking. I find it amazingly shocking that could happen without the aforementioned information being available.

Billings Gazette Sen. John Barrasso, R-Wyo., calls it a ‘job-killer’ that would result in “stripping red, white and blue jobs, and then subsidizing a few green jobs in their place.”

E&E News “We’re going to, in the Finance Committee, have hearings on and fully intend to mark up allowances, which allowances are free allowances, as well as what allowances are auctioned.” “On allocations, the last time, in the Clean Air Act, that was a much smaller deal,” Baucus said. “This is much more important. And also, it is a tax measure. It’s a tax bill. And if the House bill were referred to a committee, it’d be automatically referred to the Finance Committee because of revenue.”

Springfield News-Leader Blunt appeared at Saturday’s meeting with Sen. Kit Bond, who vowed to raise a lot of questions when the bill gets to the Senate. He said most sources are telling him it would make energy bills double. “That’s just a guess,” said Bond. “It may only go up 50 percent, it may go up 200 percent rather than 100 percent. Nobody really knows how much it will cost other than it will cost.” . . . Bond said that with China and India refusing to adopt cap-and-trade provisions, getting the United States to abide by them won’t make a huge impact on climate change.

E&E News “I like the House bill, don’t get me wrong,” said Sen. Ben Cardin (D-Md.). “But I think we can do better.”

Grist “I didn’t think it was possible, but the Waxman-Markey climate bill appears to be even more problematic than the climate bill that tanked in the Senate last spring,” he said, referring to the Lieberman-Warner bill that he voted against in 2008.  “I don’t know of many special interests that don’t receive a pay-off in this [Waxman-Markey] legislation, and if it comes to the Senate floor in this form, I’ll vote against it.” “I want to tell you that I wish we would just talk about a carbon tax, 100 percent of which would be returned to the American people. So there’s no net dollars that would come out of the American people’s pockets.”

Des Moines Register But without more economic analysis, Vilsack is trying to sell the climate bill on a “hope and a prayer,” says Mike Johnanns.

Johanns “Cap-and-trade threatens to change the landscape of American agriculture, and we need to get a better understanding of just how deep the impact will be,” Johanns said. “It is necessary for the Senate as well as farmers and ranchers across the country to know the facts about how cap-and-trade will affect agriculture. I am pleased Chairman Harkin has agreed to hold more hearings, and I hope they, along with a committee mark-up, are scheduled soon so we can give this critical issue a more in-depth look.”

E&E News “I’m using this time to try respectfully to educate members of my caucus, and maybe some Republicans, about the importance of natural gas, the importance of domestic energy security, so we don’t lose that in this debate.” Landrieu said. “It’s not just about cleaning up the environment. It’s about securing America’s economic future. And both are important.”

E&E News “That’s the objective, as far as I’m concerned,” added Sen. Frank Lautenberg (D-N.J.). “Because the glide path has to be established that enables us to get to 80 percent in 2050. You can’t get there unless you start aggressively pushing.”

Wall Street Journal “I believe climate change is real . . . but this 1,400-page bill is a farce. They bought every industry off—steel mills, agriculture, utilities,” he says. So you wouldn’t vote for the House bill? “I would not only not vote for it,” he laughs, “I am opposed to it entirely, because it does damage to those of us who believe that we need to act in a rational fashion about climate change.”