Hill Heat

In a letter to Sen. Boxer, the AFL-CIO lists its concerns with Lieberman-Warner (S 2191), referring back to testimony at the July 24 hearing on the draft legislation.

The AFL-CIO letter criticizes the adoption of the Sanders amendment to limit advanced-vehicle moneys to 35 MPG or higher and the Barrasso amendment clarifying the types of coal eligible for R&D subsidy.

The other delineated criticisms:

• An overly aggressive Phase I emission reduction target, now increased from a 10 percent to a 15 percent reduction of greenhouse gas emissions below 2005 levels by 2020, before the anticipated commercial availability of carbon capture and storage technologies;
• An unequivocal commitment to achieving a 70 perscent national emision reduction below 2005 levels by 2050, regardless of the degree of subsequent participation of major developing nations like China and India in a global climate protection framework;
• The failure to identify “domestic economic development” as a finding of Congress, a purpose of the legislation, and the failure to require that funding from this legislation be dedicated to domestic investments for new technology and the creation of jobs – from production to construction and exports.
• The absense of an effective safety valve price for carbon dioxide allowances, which will have an adverse impact upon investment decisions and consumer and inducstry pricing.
• The need for a restricted and regulated market system that does not fall prey to predatory trading practices, hoarding of allowances, and the creation of carbon billionaires, which an open market and unlimited banking of allowances can lead to.
• The extent of the use of international allowances combined with offsets, and he possibility of double dipping with offsets by providing allowances for activities that would have been done anyway.
• Inappropriate allocations of emissions allowances, such as the 10 percent allocation to “wires companies” to encourage energy efficiency – a goal that may be better accomplished through direct legislation on energy efficiency standards, now incorporated in other provisions of the bill.

From E&E News (subs. req.): Boucher told a business forum that he has been in talks with the Bush’s environmental advisors, including Jim Connaughton, chairman of the White House Council on Environmental Quality, about crafting cap-and-trade legislation Bush would sign.

According to the E&E report, Boucher did not think that having a bill that largely preempted state efforts would be problematic. He went on to say that there need to be more protections for the coal industry, and a minimal cap on emissions for the next twenty years.

Boucher said any measure that forces coal-fired power plants to curb emissions too fast – before carbon capture and sequestration can be widely deployed – would cause major shifts to natural gas and drive up prices.

Boucher said the upcoming climate bill will provide a “somewhat forgiving, a gentle introduction to controls” until carbon capture and storage is ready, which he said would be around 2025. Before that, he said, coal-fired utilities will need other options available to meet obligations, such as purchase of offsets.

“The schedule prior to 2025 has got to be more forgiving,” he told reporters. “The schedule after 2025 can be very rigorous.”

Boucher said Senate proposals would impose major limits too fast. “I don’t think the Senate bills adequately address that need because the control schedule is quite severe in the early years, before we have carbon capture and storage available,” he said. “If they default to natural gas, real harm to the economy occurs.”

This morning the Senate Committee on Environment and Public Works held its first hearing on Lieberman-Warner (S 2191).

Sens. Warner, Isakson, and Clinton were not in attendance.

Republican senators Voinovich, Inhofe, Vitter, and Craig protested the speed with which the bill is being considered, and called for more hearings and for an analysis from the DOE’s Energy Information Administration and the EPA before markup of the bill. Boxer responded indignantly to the “slow dance” approach, noting that twenty hearings were held this year on global warming and reading a statement from Sen. Warner: “This committee had the chance to hold hearings on Lieberman-McCain and it did not.”

Democratic senators Sanders, Cardin, Lautenberg, and Carper criticized the free allocation of permits to polluters, calling for 100% auction or greater allocation to clean and renewable energy producers.

Sen. Whitehouse (D-R.I.) focused on the lack of jurisdiction and oversight over the market entities created by the bill as a problem area.

Sen. Lieberman favorably noted that entities like electricity company PG&E get both free allocations and proceeds from the auctions.

The witnesses from WRI and the Environmental Resources Trust noted that the basic economic arguments for greater auction of permits: greater economic efficiency and a lower likelihood of market distortion in the form of windfall profits for polluters. They also noted that some degree of free allocation is likely a political necessity. The PG&E witness said he would probably not support the bill without free allocations to his company, and proposed several schemes that would increase subsidies and lower risk for his company at the expense of coal-intensive energy providers. The PG&E witness also made the observation, under questioning from Sen. Sanders, that concentrated solar plants are already competitive with new nuclear plants without government support and would be competitive with current coal/hydro plants if the kinds of subsidies the bill is planning for advanced coal technology were put instead into the renewable sector.

The minority witnesses argued for greater efforts to protect against foreign competition and argued that the short-term caps were too strict. Boxer noted their strong connections to the fossil fuel lobby.

Much more in the live-blog digest transcript.

The American Solar Energy Society unveiled a new report today in a briefing with Sen. Ken Salazar that says that 40 million U.S. jobs by 2030 in renewable energy and energy-efficiency (RE&EE) could be created if policymakers commit to growing the sector.

If U.S. policymakers aggressively commit to programs that support the sustained orderly development of RE&EE, the news gets even better. According to research conducted by the American Solar Energy Society (ASES) and Management Information Services, Inc. (MISI), the renewable energy and energy efficiency industry could—in a crash effort—generate up to $4.5 trillion in revenue in the United States and create 40 million new jobs by the year 2030. These 40 million jobs would represent nearly one out of every four jobs in 2030, and many would be jobs that could not easily be outsourced.

Continue reading for more excerpts.

Today Sen. Kerry chaired a hearing on geological carbon sequestration and introduced legislation to establish CCS demonstration projects.

The legislation provisions:

• Establish 3-5 commercial-scale sequestration facilities
• Establish 3-5 “first-of-a-kind” coal-fired demonstration plants with carbon capture
• Establish an interagency process to determine a regulatory framework for CCS
• Direct USGS to perform a capacity assessment of sequestration potential; establish an aggressive CCS R&D program at DOE
• Authorize technology sharing agreements with China, India and other coal-intensive developing countries.

At the hearing the consensus was that the federal government should invest not only in a few large-scale projects, but also a greater number of small-scale pilot tests, and in use-directed fundamental research. The EPRI representative emphasized the advantages of starting R&D investment before carbon emissions pricing kicks in, and promoted the work EPRI has done to study advanced coal technologies and CO2 capture and sequestration.

At the National Wildlife Federation table at Power Shift Youth Summit:

Q: Does the National Wildlife Federation support the idea of a cap and auction system?

A: Yeah, we’ve been working for a number of years on supporting the best cap-and-trade system possible. We support 100% auction of credits, or if there is distribution, there should only be distribution for public benefit, and want to see good legislation come out of Congress. Our time for strong action is rapidly dwindling and want to see the best legislation we can possibly pass as soon as we can possibly pass it.

There was essentially no national news coverage of Power Shift, though Power Shift organizer Jessy Tolkan did some media pieces: Andrew Revkin at the New York Times interviewed her his blog and she debated Pat Buchanan on Hardball.

Politico: Students demand environmental power shift

Like so many of the students in attendance, the group of UVM freshmen demonstrated an impressive knowledge of the policy issues at hand, easily launching into disquisitions on the need for dense, mixed-use urban planning and investments in mass transit to combat suburban sprawl and reduce auto dependence.

MTVNews did this piece: Youth Leaders Shift Attention To Environment At Power Shift Summit In D.C.

Student newspaper coverage from Cornell (NY), University of Massachusetts, Simon’s Rock College (Mass.), Trinity College (Conn.), Virginia Tech, Duke University (N.C.) Howard University (D.C.), University of Maryland (more, more, more), Ithaca College (NY), University of Tennessee, Knoxville, University of Connecticut, Georgetown University, University of Pennsylvania, University of Central Florida, Carnegie Mellon University (Penn.).

Senate debate on the farm bill (HR 2419/S 2302/SA 3500) stalled yesterday when Republicans objected to a unanimous consent resolution that only germane amendments could be proposed. Reid responded by filling the amendment tree with germane amendments, including the Grassley-Dorgan amendment to limit farm payments (SA 3508) and the Lugar-Lautenberg FRESH Act (S 2228) as a substitute bill.

Also yesterday the White House announced its intentions to veto the Senate version of the farm bill (Harkin, S 2302/SA 3500), stating its opposition for budget accounting reasons, though its opposition to the kinds of subsidy reforms in the Harkin bill is also known.

If the farm bill is stalled through the Thanksgiving recess beginning at the end of next week, Reid said subjects the Senate may consider include:

• a repeal of the estate tax
• S-CHIP
• Iraq war amendments
• labor issues

Today saw thousands of Power Shift participants coming to Capitol Hill for a day of testimony before the House Global Warming Committee, a large rally on the Capitol steps, and perhaps most importantly, hundreds of meetings with staff and legislators.

The youth activists introduced the 1Sky platform and asked for a commitment to the goals of making green jobs, strong emissions cuts, and no new coal top climate legislation priorities. They also called for 100% auction of pollution permits, and for an energy bill with the Senate 35 MPG standard, the House renewable energy standard, the Green Jobs Act, and no coal or nuclear subsidies.

In response to the Kansas state’s decision to deny permits for two new Sunflower Electric coal plants, a group funded by Sunflower Electric placed a newspaper ad arguing that

without new, next-generation coal-fueled plants, Kansans will be captive to high-priced natural gas, allowing hostile foreign countries to control the energy policy of Kansas and America. We are already held hostage to some of these same countries for oil.

The text of the ad runs below full-color photographs of Vladimir Putin, Hugo Chavez, and Mahmoud Ahmadinejad.

The Natural Gas Supply Association and Kansas Gas Service have not yet responded.