GAO: European Cap-And-Trade Program Skewed To Industry
A report from the Government Accountability Office finds that Europe’s initial cap-and-trade system for limiting greenhouse gases set overly high limits and gave redistributed significant wealth to covered entities. The report (GAO-09-151), requested by Republican members of the House Energy & Commerce Committee, was completed November 18 but publicly released today.
The summary notes that the cap was set too high:By limiting the total number of emission allowances provided to covered entities under the program and enabling these entities to sell or buy allowances, the ETS set a price on carbon emissions. However, in 2006, a release of emissions data revealed that the supply of allowances-The report also notes that polluting entities passed on the price of emissions permits to consumers, despite receiving them for free, resulting in windfall profits:the cap-exceeded the demand, and the allowance price collapsed. Overall, the cumulative effect of phase I on emissions is uncertain because of a lack of baseline emissions data.
Studies have found that in the EU’s deregulated energy markets, power producers passed on the market value of allowances to consumers by adding the value of the allowances to energy rates.
The GAO also describes Europe’s international offset system, the Clean Development Mechanism, and notes the extreme difficulty in accurately calculating the worth of such investments in terms of emissions reduction. CDM investments are intended to prevent or lessen future emissions or factors such as deforestation which reduce the sequestration of greenhouse gases. Thus, the reductions are based against a hypothetical business-as-usual scenario, which cannot be precisely determined.
White House Organizes Mayors Against EPA Global Warming Regulations
From the Wonk Room.
The Bush administration, though in the shadows of President-elect Barack Obama’s transition effort, continues to subvert the rule of law and impede action on global warming. Last week, the White House emailed mayors asking them to oppose the Environmental Protection Agency’s draft proposal for greenhouse gas regulations. According to the Washington Post, the email by Jeremy J. Broggi, associate director of the White House Office of Intergovernmental Affairs reminded mayors to formally submit complaints to the EPA:
At the time, President Bush warned that this was the wrong way to regulate emissions. Chairman John D. Dingell called it “a glorious mess.” And many of you contacted us to let us know how harmful this rule would be to the economies of the cities and counties you serve.
Broggi, a young Dick Cheney protegé, also linked to a November 20 U.S. Chamber of Commerce blog post by Bill Kovacs that makes the absurd claim regulation of carbon dioxide under the Clean Air Act “will operate as a de facto moratorium on major construction and infrastructure projects.” Broggi’s lobbying against his own government is nothing new—last year the Department of Transportation lobbied Congress to oppose global warming regulations.
To avoid action on global warming despite a direct order from the Supreme Court, Bush’s people have brazenly flouted their Constitutional obligation to faithfully execute the law, ignoring science, ignoring Congressional subpoenas, even ignoring emails from the EPA. Just as former attorney general Alberto Gonzales claimed the Geneva Convention’s ban on torture was “quaint,” EPA Administrator Stephen Johnson called the Clean Air Act “outdated” and “ill-suited” to the task of regulating greenhouse gas emissions.
However, it is the approach of the likes of George Bush, Stephen Johnson, Bill Kovacs, and John Dingell to the climate crisis that is “outdated,” “ill-suited,” and “a glorious mess”—not laws like the Clean Air Act. Robert Sussman, a Senior Fellow at the Center for American Progress Action Fund and co-chairman of Obama’s EPA transition team, explained last month:In fact, a new administration could enforce new global warming regulations with common sense, focusing on large emitters of greenhouse gases to achieve reasonable reductions while spurring trillions of dollars worth of economic growth and green-collar jobs.
Come January, Dingell will have been replaced as chairman of the House Energy and Commerce Committee by Rep. Henry Waxman (D-CA), and the Bush administration by Obama’s team. Sadly, Kovacs will continue plugging his dangerous message of inaction, although major companies are starting to abandon the Chamber’s reactionary rhetoric.
Broggi’s email reminded Bush’s allies in “bold, underlined text” that the public comment period for these proposed regulations closes this Friday, November 28. You can join the We Campaign in sending the message that the EPA can and should take immediate action to control global warming and to help repower America.
The text of the email follows.
Massey's Blankenship Calls Critics 'Communists,' 'Atheists,' And 'Greeniacs' 1
From the Wonk Room.
Last Thursday, Don Blankenship, CEO of Massey Energy, the fourth largest United States coal company, described his critics as “communists,” “atheists,” and “greeniacs.” In an address before the Tug Valley Mining Institute in Williamson, WV, Blankenship said those who criticize him are “our enemies” like Osama bin Laden:It is as great a pleasure for me to be criticized by the communists and the atheists of the Charleston Gazette as to be applauded by my best friends. Because I know they are wrong. People are cowering away from being criticized by people that are our enemies. Would we be upset if Osama bin Laden was critical of us?These are actually mild words for Don Blankenship. This spring, Blankenship was caught on tape threatening to shoot an ABC reporter and then assaulting him:
- The Fatal Aracoma Mine Fire. In the months before the fatal 2006 fire at the Aracoma mine, which had 25 violations of health and safety laws, Blankenship personally waived company policy and told mine managers to ignore rules and “run coal.”
- Political Corruption. Blankenship has spent millions of dollars to influence West Virginia judgeships and state legislative races, and palled around in Monte Carlo with state Supreme Court Chief Justice Elliott “Spike” Maynard and their “female friends” in July 2006. The state court reversed a $77 million verdict against Massey in 2008.
- Mountaintop Removal. Massey Energy is the king of the incredibly destructive practice of mountaintop removal mining. The Bush Administration (which includes former Massey officials) overturned Clinton-era rules limiting the practice. Massey now plans to destroy Coal River Mountain despite lacking necessary permits.
How many times have the people in this room heard, at the US Chamber of Commerce or at the National Mining Association, “I don’t believe in climate change, but I’m afraid to say that because it is a political reality”? The greeniacs are taking over the world.
Major U.S. Companies Embrace Progressive Climate Action
From the Wonk Room.
On Wednesday, five major U.S. corporations launched a new business coalition with the investors’ activist group Ceres to call for immediate, muscular, and progressive action to fight global warming. The founding members of Business for Innovative Climate and Energy Policy (BICEP) are Levi Strauss & Co., Nike, Starbucks, Sun Microsystems and The Timberland Company. As right-wing business organizations like the Chamber of Commerce pretend that limits on pollution will destroy the economy, the members of BICEP recognize that the true threat is failing to halt catastrophic climate change.
The eight principles embraced by BICEP for national action on global warming reflect recommendations from the Center for American Progress, Green For All, 1Sky, and other progressive organizations, including a moratorium on new coal plants, no subsidies for pollution permits, aggressive efficiency standards, and green-job creation in low-income communities.
In addition, BICEP calls for greenhouse gas emissions to be at least 25 percent below 1990 levels by 2020, in line with scientific recommendations—and more than double the target set by President-elect Barack Obama.
As Mindy Lubber, president of Ceres said in a press call, tackling global warming is integral to future economic strength:Rather than ignore risk, address the risk and turn it into an opportunity. We need to send the right and honest market signal. Carbon pollution has a cost.
The full list of recommendations:
President-Elect Obama Climate And Environment Videos 1
Saying “denial is no longer an acceptable response,” Obama indicated he will press forward with cap-and-trade legislation and that members of Congress will act as his representatives at the Poznan climate negotiations.
The second video is from a meeting of Obama’s Energy & Environment Policy Transition Team and an interview with team member Heather Zichal:
Schwarzenegger: In California, It's 'Fire Season All Year Round'
From the Wonk Room.
In a weekend interview with ABC’s George Stephanopoulos, Gov. Arnold Schwarzenegger (R-CA) talks of the impact of global warming on California’s wildfires. Climate change is lowering snowpack in the Rockies and increasing droughts, heat waves and lightning strikes, stoking more intense fires over a longer season:
Through global warming, we have now fire season all year round. We used to have fire seasons only in the fall, but now the fire seasons start in February already, so this means that we have to really upgrade, have more resources, more fire engines, more manpower and all of this, which does cost extra money.Watch it:
By May of this year wildfires were raging at levels traditionally seen only in July. After California’s driest spring in 114 years of recordkeeping, 1700 wildfires set a record 840,000 acres ablaze from June to July, costing the state more than $200 million. Fires in the past month, the worst in the Los Angeles area in four decades, have destroyed over 1000 homes. “Through last week, 1.24 million acres burned in California, the most since 1970, when consistent, modern records were first kept.”
Last month, Sen. Dianne Feinstein (D-CA) called for the Bush administration to end delays in assistance, saying, “As the climate warms and wildland fires become bigger and more intense, a rapid response is critical to prevent the spread of fires.”
EPA Appeals Board Strikes Down Construction Of New Coal-Fired Power Plant
From the Wonk Room.
Yesterday, the Environmental Protection Agency’s Environmental Appeals Board ruled today that the EPA has no valid reason for refusing to place limits on the global warming emissions from Desert Power’s proposed 110-megawatt coal-fired power plant in Vernal, Utah.
It is reckless to approve a huge coal-fired power plant with no global warming emission controls. This one massive plant will negate the emissions reductions being implemented by the Northeastern states in the first mandatory regional program to cut global warming pollution. The Administration’s shameful decision rewards polluters, flouts the Clean Air Act, and fails the American people.Joanna Spalding, the Sierra Club attorney who successfully argued the case, delivered this statement:
Today’s decision opens the way for meaningful action to fight global warming and is a major step in bringing about a clean energy economy. This is one more sign that we must begin repowering, refueling and rebuilding America. The EAB rejected every Bush Administration excuse for failing to regulate the largest source of greenhouse gases in the United States. This decision gives the Obama Administration a clean slate to begin building our clean energy economy for the 21st century.
The 69-page decision described the Bush administration’s arguments as “weak,” “questionable,” “not sustainable,” and “not sufficient,” and rebuked EPA Administrator Stephen Johnson for failing to issue CO2 regulations, repeatedly recommending an “action of nationwide scope.”
Waxman Supporters Claim He 'Has The Votes' To Replace Dingell
From the Wonk Room.
John Dingell (D-MI) and Henry Waxman (D-Cal.)
A likely measure of the depth of Waxman’s support is last month’s statement of climate principles, signed by 152 members, or two-thirds of the Democratic caucus, on October 2. The letter, led by Waxman, Ed Markey (D-MA), and Jay Inslee (D-WA), details much stronger standards than were found in the draft legislation Dingell produced the following week.
The National Journal reports:Dingell is expected to win support from Majority Leader Hoyer, Midwestern Democrats, members of the Congressional Black Caucus – who typically back the seniority – and Blue Dog Coalition members.
The Blue Dogs are self-identified “conservative Democrats,” many of whom disproportionately supported Bush’s agenda. Dingell, it should be noted, is not a Blue Dog and is a strongly progressive voice on many issues.
Rep. Rick Boucher (D-Va.), the coal-country chairman of the Energy & Commerce subcommittee that controls greenhouse pollution legislation, echoed the conservative mantra that this election provided no mandate for change. Supporting Dingell, Boucher warned that it would be problematic “if the first action of the new majority … is a dramatic move to the left.”
However, this is not an ideological battle. For example, Waxman has secured the support of senior Blue Dog Rep. Jim Cooper (D-Tenn.), who told reporters he is “on Henry’s whip team.” Both Waxman and Dingell have made economic justice and public health central planks of their careers. Their differences are strategic, not ideological. Dingell’s work on climate change has emphasized the approach of protecting industry from economic harm, whereas Waxman believes that robust economic health will come from the transition to a clean energy economy.
National Journal’s Dan Friedman has updated his report with details of a call with Dingell supporters who “forcefully rejected” the claim Waxman has sufficient support to oust Dingell:“These claims that Mr. Waxman has the votes are just not true,” said Energy and Commerce Oversight and Investigation Subcommittee Chairman Bart Stupak, D-Mich. “There is no doubt in my mind at the end of the day that Chairman Dingell will still be referred to as Chairman Dingell.” Stupak and Reps. John Barrow, D-Ga., and Mike Doyle, D-Pa. said Waxman has not made a clear case for why he should replace Dingell. “I asked [Waxman] quite pointedly what his basis for challenging Mr. Dingell was,” Doyle said. “He was unable to give me a single reason why he thought Mr. Dingell shouldn’t be chairman other than the fact that he [Waxman] would be a better chairman.”
Obama Plans Green Economy Listening Tour Before Inauguration
From the Wonk Room.
Dan Kammen, the director of the Renewable & Appropriate Energy Laboratory at UC Berkeley and a top adviser to President-elect Barack Obama (D-IL), has told E&E News that Obama may conduct a nationwide “listening tour” to allow his team to hit the ground running for a green recovery:
The incoming Obama team is considering a “listening tour” around the country on energy and environmental issues before Inauguration Day in an attempt to build momentum for its policies and legislative plans.Last month, Obama told Time’s Joe Klein that an “Apollo project” for a “new energy economy” is his top priority:
That’s going to be my No. 1 priority when I get into office.
In Tuesday’s victory speech before a crowd of 125,000 in Chicago’s Grant Park, Obama indicated that listening to all people of this nation will be central to his administration:
There are many who won’t agree with every decision or policy I make as President, and we know that government can’t solve every problem. But I will always be honest with you about the challenges we face. I will listen to you, especially when we disagree. And above all, I will ask you join in the work of remaking this nation the only way its been done in America for two-hundred and twenty-one years – block by block, brick by brick, calloused hand by calloused hand.In the 75 days before Obama takes office, he will also have to weigh in on major events already on the calendar:
Green Stimulus. Speaker Nancy Pelosi (D-CA) today announced she hopes to work with the lame-duck Senate and White House to pass a green recovery stimulus bill before the end of the year, including funding for infrastructure projects “in a way that reduces our dependence on foreign oil, creates good green jobs in America.” On the campaign trail, Obama proposed a $190 billion stimulus package that includes green infrastructure and jobs.International Action. From December 1 to 12, the next round of international climate negotiations takes place in Poznań, Poland. Obama has pledged to send a team of representatives, in what may be his first major act as President-elect on the international stage.
Waxman Plans To Challenge Dingell For Control Of Energy And Commerce
From the Wonk Room.
John Dingell (D-MI) and Henry Waxman (D-CA)
In the 110th Congress, Dingell and Waxman took very different stances on global warming issues. In stark contrast, Dingell opposed California’s petition to set automotive emission standards for greenhouse gases, while Waxman led hearings to investigate why the EPA denied the California waiver.
The two also took different paths after Speaker Nancy Pelosi (D-CA) called in January, 2007, for rapid action on legislation that would limit greenhouse emissions. Waxman introduced the Safe Climate Act in March to reduce emissions by 80 percent by 2050. Dingell, a longtime defender of the auto industry, instead worked through a series of hearings and white papers on this complex issue to introduce draft legislation this October.
Dingell “put aside” the global warming legislation to push a provision in the 2007 energy bill that increased fuel economy standards for the first time in decades. When signed by President Bush in December, it marked a major achievement for the environment and the economy—but has since been used by the Bush administration for an excuse for inaction on mandatory global warming regulations.
As Roll Call writes, “The move marks a major showdown between two Democratic powerhouses.”
E&E News reports:“This is a fight for all the marbles,” said one refining industry lobbyist. “If Henry gets this, my god, given the scope of jurisdiction of the Energy and Commerce Committee, all hell will break loose legislatively if Waxman chairs this thing.”