Hill Heat

Speakers

• Sen. Thomas R. Carper, D-Del.
• Sen. Joseph I. Lieberman, I-Conn.

Contact: Marni Goldberg at 202-546-0007 or [email protected]

Yorktown Room, Hyatt Regency Hotel, 400 New Jersey Ave. N.W.

San Francisco, 11-12 September 2007

As the GHG market transitions from voluntary trading to compliance with state (and surely soon federal) requirements, projections are that the annual global volumes of GHG credits will increase from $21.6m (2006) to reach $60 billion and may eventually top $1 trillion.

This unique meeting will bring together the leading US and International experts together for two days of intense, information rich presentations, debates and networking. Understand how one of the World’s largest future commodity markets will develop and impact upon your business.

Speakers

• Commissioner Jeffrey Byron, California Energy Commission
• Terry Tamminen, Energy & Environmental Advisor to Governor Schwarzenegger
• Allen Alley, Deputy Chief of Staff, Governor’s Office, State of Oregon
• Richard Saines, Partner, Baker & McKenzie, USA
• Veronique Bugnion, Managing Director, Point Carbon, USA
• David N. Reschke, Noble Carbon Credits, Canada
• Ian Carter, Policy Coordinator, North America, International Emissions Trading Association IETA, Canada
• Thomas D. Peterson, Executive Director, The Center for Climate Strategies, USA
• Angus Duncan, Oregon Carbon Allocation Task Force, USA
• Doug Scott, Chair, Illinois Climate Change Advisory Group, USA
• Josh Bushinsky, Western Policy Coordinator, Pew Center on Global Climate Change, USA
• Gia Schneider, Vice President, Credit Suisse, USA
• Imtiaz Ahmad, VP, Morgan Stanley, UK
• Blake Schaefer, Director, Global Environmental Finance, Stark Investments
• Roger Williams, VP – Portfolio Development, Blue Source
• Marc Stuart, Co-founder, Director of New Business Development, EcoSecurities
• Barbara McKee, Director CSLF, Chair IEA Working Party on Fossil Fuels & Director of Clean Energy Collaboration, DOE, USA
• George Peridas, Science Fellow, Climate Center, Natural Resources Defense Council
• Arthur Lee, CSLF Stakeholder; Principal Advisor, Global Policy & Strategy, Chevron, U.S.A
• Len Eddy, Managing Director, Agcert International, Canada
• David B. Layzell, President and CEO, BIOCAP Canada Foundation, Canada
• Richard A. Birdsey, Program Manager, Global Change Research, USDA Forest Service
• Doug Wikizer, Chief Environmental Protection and Regulations, California Department of Forestry and Fire Protection, USA
• Lisa Jacobson, Executive Director, Business Council for Sustainable Energy, USA
• Nathan Clark, Director, Offset Projects/Economist, Chicago Climate Exchange, USA
• Ricardo Bayon, Director, The Ecosystem Marketplace
• Cameron Brooks, VP – Resource Development, Renewable Choice Energy
• Mike Bess, General Manager North America, Europe and Africa, Camco International, UK
• Meg Gottstein, Administrative Law Judge, California Public Utilities Commission
• Ned Helme, President, CCAP, Center for Clean Air Policy, USA
• Frank T. Princiotta, Director of the Air Pollution Prevention and Control Division, U.S. Environmental Protection Agency, USA

At his town hall meeting last week, House Energy and Commerce chairman John Dingell unveiled the outline of his global warming legislative plan, which he will introduce in committee on September 1:

• cap-and-trade system with an 80% cap by 2050
• $100 per ton CO2 emissions tax
• 50-cent increase in federal gax tax
• funding for research on renewable energy
• ending the McMansion mortgage deduction (homes larger than 3,000 square feet)

Glenn Hurwitz at Grist pens a stinging assessment of the chairman: Dingell is dispensible.

So far, he’s fought hard against all steps forward, but it hasn’t made much difference in policy. That suggests that environmentalists and Democrats would be well served to reconsider conventional wisdom about Dingell. Partly because of his gratuitous and repeated swipes at leadership and the environmental movement, his sway with both leadership and rank-and-file Democrats is considerably less than it once was. As the RES vote and Hoyer’s prediction that Congress will pass aggressive fuel efficiency standards shows, his support is no longer essential to passing major environmental legislation. This doesn’t mean that Democrats or environmentalists can ignore all sometime-opponents of environmental progress within the caucus (some, like Gene Green and Charlie Gonzalez, have shown that they retain considerable pull), but it does mean we can stop obsessing about Dingell.

Earlier at Grist David Roberts criticized the Greenpeace activists protesting Dingell’s recent efforts to block an increase in CAFE standards: Dingell’s dimwitted detractors.

Argh. Silly, gimmicky, irrational crap. If this is what Dingell runs into, it’s no wonder he holds green activists in such contempt. Relative to what Dingell’s proposing, the difference between a 35mpg CAFE (which he supports) and a 45mpg or 50mpg CAFE (which greens support) is meaningless. Utterly and completely trivial. A distraction. If we could get in place a carbon tax and a cap-and-trade system, the effects will dwarf minor changes in CAFE. Instead of hectoring Dingell about CAFE, activists should be using their energy to push other legislators to support these bills.

Environmental Defense was one of several prominent environmental groups to embrace the Lieberman-Warner proposal:

Joe Lieberman and John Warner are providing remarkable leadership. By developing an approach that has environmental integrity and support from both sides of the aisle they are doing what is necessary to actually make law.

Matt Stoller of Open Left, who has been highly skeptical of all cap-and-trade approaches, let alone the Lieberman-Warner proposal, wrote this analysis yesterday:

Anyway, the bill Bush is going to get behind is the Lieberman-Warner bill, opposed by the Sierra Club but supported by the intensely corporate-friendly and compromised Environmental Defense. There’s a green civil war coming, with ED President Fred Krupp playing the role of the DLC. The other environmental groups are split, with the Pew Center and the Nature Conservancy following Krupp over the cliff. The Union of Concerned Scientists and NRDC are ‘concerned’, and the LCV and the Sierra Club are clear that this is a bad move. If you want to see a dysfunctional, degraded, and compromised movement that have lost touch with their mission statements, look no further than ED, Pew, and the Nature Conservancy.

Today, Tony Kreindler of ED responded on Stoller’s site. Here’s an excerpt:

What Lieberman and Warner have offered is a blueprint for a climate bill with an airtight emissions cap and a market for carbon that will spur investment in cost-effective emissions reductions. They also have a plan for managing economic impacts, and importantly, it doesn’t compromise the integrity of the emissions cap. Does that favor corporations over the environment? We don’t think so, and we won’t support a bill that fails the environmental test.

The discussion is continued at Open Left.

Sens. Lieberman and Warner have unveiled the skeleton of their cap-and-trade legislation, America’s Climate Security Act.

Cap

“The bill will specify an annual aggregate tonnage cap, expressed in terms of Co2 equivalence, for each year from 2012 through 2050. The cap that the bill will specify for 2012 will be the 2005 emissions level.” And: 10% below 2005 by 2020, 30% by 2030, 50% by 2030, 70% by 2050.

Allowances

• Each year 20% of that year’s National Emission Allowance Account for free to covered entities within the industry sector.
• In 2012 20% of the NEAA will be allocated to the electric power sector. A portion of that 20% will be free to new entrants to the electric power sector. The allocation will be at 20% from 2012 – 2017, then transition to 0% by 2035.
• 10% will be allocated to load-serving entities to defray energy-cost impacts on low- and middle-income consumers and to promote demand-side energy efficency, some of it for free to rural electric cooperative facilities.
• 8% will be allocated to covered entities who have taken pre-enactment action to reduce greenhouse gas emissions. That 8% will transition to 0% by 2020.
• Each year 4% will be allocated to state governments, half based on population, half on historical state emissions.
• Each year 4% will be allocated to US coal mines.
• Each year 7.5% will be allocated to farmers, foresters, and other landowners to store carbon in soils, crops, and forests.
• Each year 2.5% will be allocated to the transportation sector.

Allowances for Auction

• 24% in 2012 will go to auction under the aegis of the Climate Change Credit Corporation; rising to 52% by 2035.

Auction Proceeds

• 20% for a public-private partnership for power-sector technologies including CCS
• 20% for public-private partnership for CCS
• 20% for transportation sector technologies and reducing miles traveled
• 10% for environmental mitigation
• 10% for SO2, NOx, mercury emission reduction from coal plants
• 10% to state and local for low-income community mitigation
• 10% for international mitigation

CCS

CCS regulations and a legal framework for the Federal assumption of liability for geological storage will be proposed by a study group within two years of enactment.

Carbon Market Efficiency Board, Banking

• Up to 15% of the allowances a covered entity must submit may be comprised of borrowed allowances, with an interest rate set by the Board.
• Up to 15% of the allowances that a covered entity must submit may be comprised of offset credits.
• Up to 15% of the allowances that a covered entity must submit may be comprised of allowances purchased on a certified foreign greenhouse gas emissions trading market.
• the Board may increase the number of emissions credits if the average daily closing price of an emissions credit exceeds the upper end of the range predicted by the CBO prior to the start of the program.
• The Board may adjust the terms and interest rates of the emissions loans “as needed to avoid significant harm to the economy” and “in the event of more extreme economic circumstances” to raise the cap temporarily provided that subsequent year’s caps are tightened so that cumulative reductions are unchanged.

Offsets

“The bill will set forth detailed, rigorous requirements for offsets, with the purpose of ensuring that they will represent real, additional, verifiable, and permanent emissions reductions.”

Foreign Tariffs

The President will be authorized to require that importers of GHG-intensive products submit emissions allowances of a value equivalent to that of the allowances that the US system effectively requires of domestic manufacturers, if it is determined that nation has not taken commensurate action to reduce GHG emissions.

At 10:30 am on Thursday, August 2, in the hearing room of the Senate Environment and Public Works Committee (Dirksen 406), Senators Joe Lieberman (ID-CT) and John Warner (R-VA), the Chairman and Ranking Republican, respectively, of the Senate Subcommittee on Private Sector and Consumer Solutions to Global Warming and Wildlife Protection, will unveil the particulars of the agreement that they have reached on economy-wide climate legislation. This agreement synthesizes ideas contained in other climate change proposals while also incorporating new thinking. It will form the basis of a bill that the two Senators will introduce when the Senate reconvenes in September.

The press conference has been announced for 10:30 AM tomorrow.

Last week, Sen. Mary Landrieu (D-La.) presented the Containing and Managing Climate Change Costs Efficiently Act (S. 1874), a piece of legislation authored by Joe Lieberman’s former environmental advisor, Timothy Profeta, who now heads the Nicholas Institute for Environmental Policy Solutions at Duke University.

The proposal would establish the Carbon Market Efficiency Board which would oversee the emissions trading market established by cap-and-trade legislation. The board would operate much like the Federal Reserve Board, providing information on price and low-emission technology investment trends to Congress and the public, and it would adjust the price of emissions permits when a “market correction” is needed. The first measure is to expand companies’ ability to “bank” permits, or borrow permits against future year reductions. The second measure, to be used if high prices are not relieved by the first measure, is to add a slightly larger number of permits to the market. This temporary increase would be compensated for by reducing available permits in a later year, when more options have been developed.

Profeta testified about the proposal in last week’s hearing. His white paper goes into further detail.

The bill is intended to be folded into the Lieberman-Warner package to be presented as a discussion draft at the end of the week.

John Warner (R-Va.), Lindsey Graham (R-S.C.), and Blanche Lincoln (D-Ark.) are cosponsoring the bill, in a bipartisan show of strength by pro-business Senators. [The League of Conservation Voters/Chamber of Commerce scores for the senators are: Warner 14%/100%, Graham 29%/92%, Landrieu 43%/75%, Lincoln 43%/67%. By way of comparison, Lieberman is 71%/44%.]

From CQ Green Sheets: Senate Environment Presses Ahead on Federal, State Climate Action

Summary: Lieberman & Warner are working on carbon cap-and-trade legislation. Their staff is working hard right now to get the legislation written before the August recess, but they might not make that target. The witnesses at this hearing give a hint as to what the legislation will look like.

Witnesses

• Timothy Profeta, Director, Nicholas Institute for Environmental Policy Solutions, Duke University, former Lieberman staffer and the principal author of the 2003 Lieberman-McCain cap-and-trade legislation
• Blythe S. Masters, Managing Director, JP Morgan Securities, Inc., supporter of carbon trading
• Robert Baugh, Executive Director, Industrial Union Council, AFL-CIO, supports Bingman-like (S 1766) elements like “safety valve” emission cost caps and money for carbon sequestration
• Garth Edward, Trading Manager, Shell International Trading and Shipping Company, supporter of carbon trading
• Margo Thorning Ph.D., Senior Vice President and Chief Economist, American Council for Capital Formation, believes cap-and-trade evil and the European experience a failure

Tomorrow’s global warming hearing, led by Joe Lieberman, will be a prelude to the cap-and-trade legislation now being written by his and John Warner’s staffers. This bill will be the default Senate cap-and-trade bill unless matters dramatically change. See CQ Green Sheets for more.