Hill Heat

As reported at Gristmill, Sens. Lieberman and Warner intend to submit the draft of their cap-and-trade legislation, America’s Climate Security Act (S. 2191), today. The legislation incorporated suggestions from stakeholders to adjust some figures from the draft outline released at the beginning of August. Notably, the 2020 reduction from 2005 emissions levels is increased from 10% to 15% (the Sanders-Boxer target), and the peak auction percentage (reached in 2036) is increased from 52% to 73%. There are numerous other components, adjustments, and details.

How does Lieberman-Warner stack up to the Sanders-Lautenberg principles or the Step It Up 2 provisions?

Sanders-Lautenberg

• CAP: The 2020 target is as strong as Sanders-Boxer, but the 2050 target is much weaker (67% by 2050 instead of 80%) and only 75% of emissions are regulated; there are numerous explicit provisions to loosen controls to protect the economy but none to change them to stabilize atmospheric concentrations of GHG; however, it calls for a report every three years looks at both economic and environmental impacts
• POLLUTER PAYS: The bill does not transition quickly to a full auction. Spending of auction revenues is generally in line with Sanders-Lautenberg, though large amounts go to CCS development
• ENCOURAGE STATE LEADERSHIP: The bill explicitly rewards states with stricter standards than the federal cap
• ADDITIONAL PROVISIONS: The bill includes green building standards and low-carbon fuel provisions, among others, but does not require new coal plants to have CCS
• NO LOOPHOLES AND LIMITED OFFSETS: The annual caps may be temporarily increased by as much as 20% if later caps are tightened and companies pay interest on “borrowed” allowances; offsets are limited to 15% of allowances and are held to the Sanders-Lautenberg standard

Step It Up 2

• GREEN JOBS: There is some funding for green jobs, but not 5 million by 2015
• EFFICIENCY: There is not a federal efficiency standard of 20% greater efficiency by 2015
• CAP: As decribed above, the cap is not economy-wide, and is 15% by 2020 and 67% by 2050, not 30% by 2020 and 80% by 2050
• NO NEW COAL: There is not a moratorium on new coal plants without CCS

Full comparison of October release with the original August draft below the jump.

Sens. Bernie Sanders (I-Vt.) and Frank Lautenberg (D-NJ) yesterday released a statement of principles for judging climate change legislation. Both are members of the Senate Environment and Public Works Committee’s Subcommittee on Private Sector and Consumer Solutions to Global Warming and Wildlife Protection, representing the majority with Sen. Lieberman and Sen. Baucus; Lieberman and Warner plan to submit cap-and-trade legislation to the subcommittee today.

Earlier in the month, a group of liberal Democratic senators outlined their goals for climate change legislation, praising the Lieberman-Warner effort.

Here are the Sanders-Lautenberg principles in short:

• Targets must be set to cap atmospheric concentration of greenhouse gases at a max of 450 PPM CO2 equivalent, latest science continually taken into acount
• Quick transition to polluter-pays auction, with monies providing economic relief and significant investment in renewables and energy efficiency
• No federal pre-emption of state efforts
• Additional policies such as building and fuel standards and CCS requirements that ensure rapid deployment of clean energy technology
• Offsets should be limited, real, verifiable, additional, permanent and enforceable

From CQ Greensheets and Detroit News reports on movement on the inter-chamber energy bill negotiating process:

• The controversial standard legislation – fuel economy (CAFE) and renewable fuels (RFS) from the Senate bill (HR 6), and renewable energy (RPS) from the House bill (HR 3221) – “will be worked out behind closed doors between House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid”, with staff-level discussions this week
• Opponents of the CAFE legislation in the Senate bill continue a last-ditch effort to advocate Hill-Terry (HR 2927) and get Senators to switch their votes. The coalition, led by Energy and Commerce chair John Dingell, includes:
  • Alliance of Automobile Manufacturers
  • Blue Dog Coalition
  • American Farm Bureau Federation
  • American Recreation Coalition
  • Associated General Contractors
  • International Professional Rodeo Association
  • Plumbing, Heating and Cooling Contractors Association
  • Small Business and Entrepreneurship Council
• Dingell’s staff is meeting with the leadership staff for the closed-door negotiations, but he is leaving the door open to blocking the energy bill: “I’m not foreclosing any option. I don’t make the jungle. I just live there.” He also said that trying to get a bill completed before the scheduled October 26 recess “is to invite a disaster.”

Step It Up announced that presidential candidates Dennis Kucinich and John McCain are the first candidates to commit to participating in Step It Up 2 events on November 3.

Dennis Kucinich:

John McCain:

Al Gore’s response:

I am deeply honored to receive the Nobel Peace Prize. This award is even more meaningful because I have the honor of sharing it with the Intergovernmental Panel on Climate Change – the world’s pre-eminent scientific body devoted to improving our understanding of the climate crisis – a group whose members have worked tirelessly and selflessly for many years. We face a true planetary emergency. The climate crisis is not a political issue, it is a moral and spiritual challenge to all of humanity. It is also our greatest opportunity to lift global consciousness to a higher level.

My wife, Tipper, and I will donate 100 percent of the proceeds of the award to the Alliance for Climate Protection, a bipartisan non-profit organization that is devoted to changing public opinion in the U.S. and around the world about the urgency of solving the climate crisis.

Through The Climate Project, Gore has trained over 1000 people to give his “Inconvenient Truth” presentation; the website allows people to request a presentation.

Gore is the chairman of ACE. The board consists of:

• Theodore Roosevelt IV, Managing Director, Lehman Brothers, Chair of the Pew Center for Global Climate Change
• Larry J. Schweiger, President & CEO, National Wildlife Federation
• Carol M. Browner, Principal, The Albright Group, LLC, Clinton EPA Administrator
• Brent Scowcroft
• Lee Thomas, Reagan EPA Administrator
• Orin S. Kramer, General Partner, Boston Provident, L.P., Chairman, New Jersey State Investment Council, Carter White House
• Congressman Sherwood L. Boehlert
• Kevin Wall, CEO, Control Room, Producer, Live Earth/SOS

Democratic Senators Bob Menendez (NJ), Jack Reed (RI), John Kerry (MA), Russ Feingold (WI), Chris Dodd (CT) and Dick Durbin (IL) wrote last week to Sens. Joe Lieberman (I-CT) and John Warner (R-VA), the Chairman and Ranking Member of the Environment and Public Works Subcommittee, to weigh in on the draft plan of the legislation the two are developing.

They mirror the previous praise by Democrats on the subcommittee in their letter:

We write today to congratulate you on your leadership in addressing global warming. The outline of proposed legislation that you distributed last month is an important start and your efforts to forge a bipartisan bill and attempt to pass a meaningful climate change bill this Congress deserve praise and recognition.

They go on to express some concerns, though without the vehemence of the Kit Bond’s conservative criticism:

• Calling for a 80% reduction by 2050 with specific and aggressive interim targets, as opposed to the 70% target in the draft
• Reiterating opposition to “safety valve” legislation like that in Bingaman-Specter
• Criticizing the degree to which free allocations of emissions credits are given to the fossil fuel sector
• Calling for more emphasis on energy efficiency and renewable energy: “take some of the considerable resources generated by the auction process and devote them to further research and incentives for renewable energy . . . make the bill more balanced by devoting a larger share of the allowance value to public purposes, including support for energy efficiency and renewables”

Illinois senator and presidential candidate Barack Obama’s global warming/energy policy has developed significantly in the past year, from endorsement of coal-to-liquids funding to his policy platform unveiled yesterday.

Summary of Obama’s energy policy:

• 100% auction cap-and-trade with 1990 levels by 2020, 80% cuts by 2050
• $150 billion investment over ten years in clean energy and green jobs
• 2030 goals: reduce U.S. economy energy intensity by 50%, reduce oil consumption by 35%,
• Standards: 25% federal RPS by 2020, all new buildings carbon neutral by 2030, phase out traditional incandescents by 2014
• Smart grid with distributed generation
• Increase CAFE standards to 35 MPG, Renewable Fuel Standard to 36 billion gallons by 2022
• Require 60 billion gallons of biofuels by 2030
• Re-engage in UNFCCC

Toyota is now responding to NRDC’s challenge to drop its opposition to the Markey-Platts CAFE standard increase (since echoed by UCS and Ed Markey, and written up by Tom Friedman):

There are various bills before Congress that would mandate a new target of 35 mpg by 2020 and require both cars and trucks to meet that standard. Our engineers tell us the requirements specified by these proposed measures are beyond what is possible. Toyota spends $23 million every day on research and development but, at this point, the technology to meet such stringent standards by 2020 does not exist.

Toyota has long supported an increase in the Corporate Average Fuel Economy (CAFE) standards. Moreover, Toyota has always exceeded federal fuel economy requirements. We are continuously striving to improve our fuel economy, regardless of federal mandates.

Toyota currently supports a proposal known as the Hill-Terry bill, HR 2927, that would set a new standard of up to 35 mpg by 2022 (up to a 40% increase) and maintain separate categories for cars and light trucks. Although this won’t be easy, we believe it is achievable.

House Energy Independence and Global Warming Committee chairman Ed Markey responds: “Apparently the only thing that separates Toyota from the ‘impossible dream’ of 35 miles per gallon here in the U.S., is a flight across the Pacific Ocean,” as Toyota meets Japan’s (and Europe’s) fuel efficiency standards of greater than 40 MPG, according to the International Council on Clean Transportation.

As he previously announced he would, Energy and Commerce’s Energy and Air Quality Subcommittee chair Rep. Rick Boucher (D-Va.) released the first of a series of white papers on climate legislation today, Scope of a Cap-and-Trade Program.

Based on the hearings earlier this year, the Committee and Subcommittee Chairmen have reached the following conclusions: The United States should reduce its greenhouse gas emissions by between 60 and 80 percent by 2050 to contribute to global efforts to address climate change. To do so, the United States should adopt an economy-wide, mandatory greenhouse gas reduction program. The central component of this program should be a cap-and-trade program. Given the breadth of the economy that will be affected by a national climate change program and the significant environmental consequences at stake, it is important to design a fair program that obtains the maximum emission reductions at the lowest cost and with the least economic disruption. The Subcommittee and full Committee will draft legislation to establish such a program.

Oddly, the white paper fails to mention a baseline for emissions reductions; the scientific consensus for the 80 percent reduction is from 1990 emissions levels.

The white paper makes no recommendations on how credits should be allocated, though Boucher has stated his resistance to auctions in the past. Nor does it discuss interaction with foreign carbon markets or how to deal with imports from unregulated entities.

The white paper argues that complementary measures are necessary:

“Even with a broad-based cap-and-trade program, complementary measures (such as a carbon tax or other tax-based incentives, efficiency or other performance standards, or research and development programs) will also be needed. For example, funding for research, development, and deployment of new technologies would assist industries that will need to adopt new technologies. In addition, efficiency or other performance standards might be appropriate for some economic actors that would be inappropriate to include directly in a cap-and-trade program, but that should contribute to an economy-wide reduction program in some other way.

Proposed measures range from Dingell’s carbon tax, increased CAFE standards, appliance and lighting efficiency standards, a federal renewable energy standard, to carbon sequestration funding.

Further notes are below.

This morning saw the House Science and Technology Committee host a hearing on Energy Storage Technologies: State of Development for Stationary and Vehicular Applications, with testimony from a wide array of government, industry, and research experts.

In addition, A Siegel at Daily Kos disscusses advances in “hydro pumped storage”, which uses excess energy from a hydroelectric plant to pump water to a reservoir which can be used to generate power when demand exceeds output.