Hill Heat

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

On July 30, Speaker Pelosi set the agenda for her energy independence initiative, which she had originally hoped to complete by July 4th. The legislative package will be introduced to the floor in two parts:

• the Renewable Energy and Energy Conservation Tax Act of 2007 (HR 2776) from the Ways and Means Committee, reported out at the end of June
• and the New Direction for Energy Independence, National Security, and Consumer Protection Act (HR 3221), which needs to be signed off by the relevant committees

HR 2776 provides tax incentives for renewable electricity production, biofuels, efficient appliances, plug-in hybrids, and renewable energy bonds. It pays for these incentives buy reducing oil and gas royalties and closing the “Hummer” tax loophole.

HR 3221 is a wide-ranging omnibus, under the jurisdiction of the following committees:

• Education and Labor (Title I: green jobs)
• Foreign Affairs (Title II: foreign assistance and trade)
• Small Business (Title III: small business sustainability initiative)
• Science and Technology (Title IV: research funding—HR 364, HR 906, HR 1933, HR 2773, HR 2774, HR 2304, HR 2313)
• Agriculture (Title V: biofuels)
• Oversight and Government Reform (Title VI: carbon-neutral government)
• Natural Resources (Title VII: Energy Policy Act of 2005 reforms, changes in oil and gas royalties, wind energy, CCS, wildlife, oceans)
• Transportation and Infrastructure (Title VIII: public transportation, highways, shipping, public buildings)
• Energy and Commerce (Title IX: appliance, lighting, and building efficiency, smart grid, renewable fuel infrastructure, plug-in hybrids)
• Armed Services (it’s unclear which components are under its jurisdiction)

All amendments to HR 3221 must be introduced by Wednesday afternoon. The Rules Committee will convene Thursday at 3 PM to establish the debate rules and timetable.

After the amendment process and ratification, the package will then go into conference to be reconciled with the Senate energy bill, SA 1502, passed mid-June.

19/04/2007 at 10:00AM

18/04/2007 at 10:00AM