California Reponses to California Waiver Denial

Posted by Brad Johnson on 20/12/2007 at 10:21AM

Selected responses from the California congressional delegation and executive branch to EPA’s denial of the California waiver yesterday.

Rep. Henry Waxman (D-Calif.), chairman of the Committee on Oversight and Government Reform:

EPA’s decision ignores the law, science, and commonsense. This is a policy dictated by politics and ideology, not facts. The Committee will be investigating how and why this decision was made.

Sen. Dianne Feinstein (D-Calif.):

Candidly I find this disgraceful. The passage of the Energy Bill does not give the EPA a green light to shirk its responsibility to protect the health and safety of the American people from air pollution.

Gov. Arnold Schwarzenegger (R-Calif.):

While the federal energy bill is a good step toward reducing dependence on foreign oil, the President’s approval of it does not constitute grounds for denying our waiver. The energy bill does not reflect a vision, beyond 2020, to address climate change, while California’s vehicle greenhouse gas standards are part of a carefully designed, comprehensive program to fight climate change through 2050 . . . California sued to compel the agency to act on our waiver, and now we will sue to overturn today’s decision and allow Californians to protect our environment.

Sen. Barbara Boxer (D-Calif.), chair of the Committee on Environment and Public Works:

With Members of Congress leaving town, and with the news on global warming getting worse with each passing day, EPA Administrator Stephen Johnson has delivered the worst possible news to the good people of California and the 12 other states who have proven they are leaders in fighting for the survival of the planet.

It is ironic that this waiver denial comes during the season when we are supposed to work to make our country and the world a better place. And to hide behind the newly-passed Energy Bill as an excuse flies in the face of the Supreme Court’s findings and the Energy Bill itself.

This ill-advised denial turns its back on science, turns its back on fairness, turns its back on states’ rights, and turns its back on precedent.

I have informed the state of California that I am prepared to take all measures to overturn this harmful decision.

Calif. Attorney General Jerry Brown (D):

It is completely absurd to assert that California does not have a compelling need to fight global warming by curbing greenhouse gas emissions from cars. There is absolutely no legal justification for the Bush administration to deny this request – Governor Schwarzenegger and I are preparing to sue at the earliest possible moment.

EPA Admin Denies California Waiver

Posted by Brad Johnson on 20/12/2007 at 09:37AM

EPA administrator Stephen Johnson’s denial of California’s petition to regulate tailpipe greenhouse gas emissions following the White House energy bill signing ceremony was deservedly front page news from coast to coast. The Supreme Court forced the EPA to consider California’s December 2005 Clean Air Act waiver request in April 2007 (Massachusetts v. EPA). In testimony before the Senate and the House earlier this year, Johnson signaled his lack of desire to grant the waiver. Now that decision has come in, with justifications even EPA’s own laywers and policy staff don’t believe. This is the first time in the history of the Clean Air Act that the EPA has denied a section 209 California waiver request.

[Ed.—Warming Law has superior analysis of the decision, from which I’ll steal some key insights.]

The EPA, which is yet to release the formal denial, announced in its press release that the increased CAFE standards in the new energy law to justify its denial of the California waiver:

EPA has determined that a unified federal standard of 35 miles per gallon will deliver significant reductions in greenhouse gas emissions from cars and trucks in all 50 states, which would be more effective than a partial state-by-state approach of 33.8 miles per gallon.

Warming Law says “EPA appears to be attempting to add a new test to the Clean Air Act” in requiring that California prove a local interest in addition to the “compelling” and “extraordinary” standards the Supreme Court said this problem meets.

Warming Law’s Tim Dowling notes that Johnson’s claim the waiver would create a “confusing patchwork of state rules” is typical industry rhetoric that is specious—only two sets of standards, national and California, would apply. “Johnson failed to explain how EPA has been able to grant EVERY other 209 waiver request in history without creating a confusing patchwork, but can’t do so here.”

Juliet Eilperin of the Washington Post reveals that Johnson overrode his staff.

In a PowerPoint presentation prepared for the administrator, aides wrote that if Johnson denied the waiver and California sued, “EPA likely to lose suit.”

If he allowed California to proceed and automakers sued, the staff wrote, “EPA is almost certain to win.”

The technical and legal staffs cautioned Johnson against blocking California’s tailpipe standards, the sources said, and recommended that he either grant the waiver or authorize it for a three-year period before reassessing it.

“Nobody told the administration they support [a denial], and it has the most significant legal challenges associated with it,” said one source, in an interview several hours before Johnson’s announcement, who spoke on the condition of anonymity because the official is not authorized to speak for the agency. “The most appropriate action is to approve the waiver.”

President Signs Energy Bill; NYT Praises Dingell, Slams Landrieu

Posted by Brad Johnson on 19/12/2007 at 03:39PM

From the New York Times Editorial blog:

The Energy Bill: A Hero and a Villain

President Bush has just signed into law an energy bill that could have been even better but still remains an impressive achievement. The long struggle to produce that bill yielded the usual quotient of heroes and villains, but two deserve special mention:

John Dingell, who could have been a villain but chose to be a hero; and Mary Landrieu, who could have been a hero but chose to be a villain.

Mr. Dingell was a most unlikely hero. A Michigan Democrat and a reliable defender of the automobile industry, he had long resisted efforts to mandate new fuel efficiency standards, which had not been updated for more than 30 years.

But there has always been a softer, “greener” side to this crusty octogenarian that people often overlook. An architect of the original Clean Water Act of 1972, he cares a lot about wetlands preservation, endangered species and other environmental causes. He is also a fairly recent convert to the climate change issue, describing the global warming threat with phrases like “Hannibal is at the gates.”

So when Nancy Pelosi, the House Speaker, made a personal pledge to upgrade fuel efficiency standards, Mr. Dingell agreed, in exchange for one or two modest concessions, to get out of the way. He did more than that. When environmentalists complained that the Senate’s mandate for a huge increase in ethanol could threaten forests, wetlands and conservation areas, Mr. Dingell made sure the final bill contained the necessary safeguards. He also insisted on a provision requiring that ethanol from corn or any other source produce a net benefit in terms of greenhouse gas emissions.

Ms. Landrieu was an altogether different story. The Louisiana Democrat broke ranks with her Democratic colleagues and gave President Bush and the Republican leadership the one-vote margin they needed to strike a key provision that would have rescinded about $12 billion in tax breaks for the oil industry and shifted the money to research and development of cleaner sources of energy.

The White House argued that these tax breaks were necessary to insure the oil industry’s economic health and to protect consumers at the pump. Given industry’s $100 billion-per-year profits, these arguments were absurd on their face, but Ms. Landrieu promoted both of them and added one of her own: The energy bill was “one-sided policymaking” that left “Louisiana footing the bill.”

Never mind that the rest of the country is footing the bill for the repair and restoration of Louisiana in the aftermath of Hurricane Katrina. That is a just and worthy cause and one that the nation is willing to help pay for. But isn’t reducing oil dependency and global warming emissions by rewarding traditional fossil fuels a bit less, and rewarding newer, cleaner fuels a bit more, also a just and worthy cause? One that Louisiana could help pay for? That is something Ms. Landrieu might ask herself the next time she puts her state’s interest ahead of the nation’s.

Bush-Approved Energy Bill Passes House

Posted by Brad Johnson on 18/12/2007 at 02:54PM

By a vote of 314-100, the House of Representatives approved the Senate version of the energy bill this afternoon.

The bill, which contains a major biofuels mandate (also known as the renewable fuels standard) and increased fuel economy, building, and appliance standards, has been given the okay by the president.

The New York Times today looks into the possible implications of the ethanol mandate.

Enviro Groups Attack Nuclear, Coal Loan Provisions in Appropriations Omnibus

Posted by Brad Johnson on 17/12/2007 at 01:11PM

The omnibus appropriations bill (H.R. 2764) wending its way to passage in the year-end Congressional rush.

As EE News reports, included in the bill are $18.5 billion in nuclear loan guarantees that have been championed by Sen. Pete Domenici (R-N.M.) and Rep. Steny Hoyer (D-Md.). Related provisions grant $6 billion for coal-based power generation and industrial gasification activities at retrofitted and new facilities that incorporate carbon capture and sequestration; $2 billion for advanced coal gasification; $10 billion for renewable and/or energy efficient systems and manufactoring and distributed energy generation, transmission and distribution; and $2 billion for uranium enrichment technology.

The loan guarantees come with the caveat that Congressional appropriators must approve any project implementation 45 days before the Department of Energy could activate the guarantee.

Funding for continuing nuclear programs includes $1.1 billion for DOE’s nuclear programs and $8.8 billion for the National Nuclear Security Administration.

Environmental groups have come out strongly against the nuclear and coal-to-liquids provisions. NRDC’s Heather Taylor told EE News, “The loan guarantee is certainly a poison pill for us. It’s an investment in the bad policies of the past.

In a joint letter to Congress, seventeen environmental organizations wrote:

On behalf of our millions of members and activists, we regretfully ask you to vote no on H.R. 2764, the State, Foreign Operations, and Related Programs Appropriations Act, 2008 (Consolidated Appropriations Act, 2008) because it would take America down a dirty energy path. Although Congress started with the promise of leading our country into a new energy future, H.R. 2764 breaks faith and continues the misguided, polluting policies of the past.

White House-Approved Energy Bill Passes Senate 86-8

Posted by Brad Johnson on 13/12/2007 at 08:35PM

After Sen. Reid dropped the oil-for-renewable tax package following a failed cloture vote on the energy bill this morning, Republicans removed the filibuster threat and President Bush dropped his veto threat, having achieved a bill that met essentially all of the White House conditions.

This evening, the senatorial candidates having left the city, the Senate moved directly to a vote (ending debate by unanimous consent) on the final revision of the energy bill, which retains strengthened CAFE, appliance, and building standards, and a strong biofuels mandate with White House-approved tax adjustments for revenue.

The bill passed 86-8, Sen. Stabenow (D-Mich.) joining seven Republicans (Wyoming, Oklahoma, Hatch, DeMint, and Kyl) in opposition.

Gore, Congress, Europe Assail U.S. Stance in Bali

Posted by Brad Johnson on 13/12/2007 at 03:02PM

The United States delegation to the UN Climate Change Conference in Bali has led Japan, Canada, and Russia in rejecting the nonbinding EU proposed roadmap of reducing greenhouse-gas emissions by wealthy countries 25 to 40 per cent by 2020. (By way of comparison, Lieberman-Warner (S. 2191) proposes a four percent cut from 1990 emissions levels by 2020.) The U.S. team is also opposing including references to the IPCC’s conclusions on the emissions reductions needed to avoid dangerous global warming.

In a speech today at the conference, Nobel Peace Prize laureate Al Gore said “My own country, the United States, is principally responsible for obstructing progress here in Bali . . . One year and 40 days from today, there will be a new inauguration in the United States. I must tell you candidly that I cannot promise that the person who is elected will have the position I expect they will have, but I can tell you I believe it is quite likely.”

In a letter to the President, 52 members of Congress, including a handful of Republicans, criticized the U.S. negotiating stance:

The clear implication is that the United States will refuse to agree to any language putting the United States on an established path toward scientifically-based emission limits. . . We write to express our strong disagreement with these positions and to urge you to direct the U.S. negotiating team to work together with other countries to complete a roadmap with a clear objective sufficient to combat global warming. The United States must adopt negotiating positions at the Bali Conference of the Parties that are designed to propel further progress – not fuel additional delay.

E&E News reports on EU threats to boycott a U.S.-led climate meeting:

Upset with the U.S.-led stance, senior officials from the European Union, France and Germany have threatened to boycott Bush’s plans to hold climate talks Jan. 30-31 in Honolulu.

“Without a roadmap and without a destination, it would be senseless,” said Stavros Dimas, the top environmental official for the European Commission. Dimas told reporters he made the same statement earlier today to Paula Dobrianksy, the lead U.S. negotiator at the climate meetings on the Indonesian island of Bali.

Karsten Sach of Germany’s environmental department and French negotiator Brice Lalonde both confirmed their countries also would stay away from Bush’s “Major Economies Meeting” if there is no agreement in Bali.

White House spokeswoman Kristen Hellmer didn’t take well to the E.U. threats. “Such comments are not very constructive when we are working so hard to find common ground on a way forward,” she said.

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Energy Bill Filibustered By One Vote: Reid To Drop Oil-for-Renewable Tax Package

Posted by Brad Johnson on 13/12/2007 at 10:00AM

By a roll call vote of 59-40, Senate Democrats failed to muster the 60 votes needed to prevent a filibuster threatened by Republicans of the compromise energy legislation which retained the tax package under veto threat but not the House-approved renewable energy standard. Sen. Reid plans to reintroduce a version of the energy bill which contains the CAFE and biofuels provisions later today.

Sen. Mary Landrieu (D-La.) was the only Democrat to vote with the Republicans. Coleman, Collins, Grassley, Hatch, Lugar, Murkowski, Smith, Snowe, and Thune voted with the Democrats. Sen. John McCain (R-Ariz.), on the campaign trail, was the one senator not voting.

Farm Bill Update: Lugar-Lautenberg and Dorgan-Grassley Fail Cloture Votes

Posted by Brad Johnson on 13/12/2007 at 09:27AM

Two of the major farm bill (HR 2419/S 2302) amendments supported by reform advocates, the Lugar-Lautenberg subsidy overhaul (S 2228) and Dorgan-Grassley subsidy cap (S 1486), have both failed to achieve the sixty votes necessary to overcome Republican filibusters.

On Tuesday, Lugar-Lautenberg was soundly rejected by a vote of 37-58 (the five presidential candidates in the Senate did not vote).

This morning, the cloture vote to end debate on Dorgan-Grassley narrowly failed by a vote of 56-43.

Reid Announces New Energy Bill Compromise, Drops RES

Posted by Brad Johnson on 12/12/2007 at 02:53PM

To gain the 60 votes a cloture vote on the energy bill (H.R. 6) needs for success, Senate Majority Leader Harry Reid has dropped the Renewable Energy Standard provision from the package, which still contains the 35 MPG by 2020 CAFE standard, a 36 billion gallon by 2022 biofuels mandate, appliance and building efficiency standards, and a broad tax/green jobs package. The White House has threatened to veto the bill for the CAFE standards and tax package. Reid held a cloture vote on the House version last week, which failed by a vote of 53-42. The new cloture vote is scheduled for Thursday.

The tax package was reworked by Sen. Max Baucus (D-Mont.) and Charles Grassley (R-Iowa), the leaders of the Senate Finance Committee.

The reworked tax package, which remains at about $21 billion paid for mostly by closing loopholes that favor oil and gas companies, changes the terms of the renewable production tax credit extension. The extension is limited to two years but the cap on credit an individual project can receive is dropped.

Other modifications include a new category of tax exempt bonds for electric transmission facilities, a $2500 tax credit for plug-in hybrid conversion kits, and the removal of an incentive for the construction of natural gas distribution infrastructure. Enforcement of prevailing-wage restrictions under Davis-Bacon was also dropped.

The full description of the tax package (“The Clean Renewable Energy and Conservation Tax Act of 2007”) is below.