Hill Heat

On Monday thousands of young energy and climate leaders will descend on Capitol Hill to send a message to Congress: we must pass the energy bill before Congress (HR 3221) so we can begin the transition towards a cleaner, safer, more prosperous future without oil dependence or global warming.

The day of events starts with several of these leaders appearing before Chairman Edward J. Markey and the Select Committee on Energy Independence and Global Warming. Chairman Markey and those testifying will then travel to the West Lawn of the Capitol to meet thousands of supporters who will call for more green jobs, more renewable energy, and higher fuel economy standards, among other clean energy measures.

Congress is currently considering energy legislation that would raise fuel economy standards for America’s vehicles to 35 miles per gallon by 2020, increase the use of renewable energy, and create millions of new “green collar” jobs.

Witnesses

• Billy Parish, Energy Action Coalition
• Brittany R. Cochran, Environmental Justice and Climate Change Initiative
• Cheryl Lockwood, Alaska Youth for Environmental Action
• Katelyn McCormick, Students Promoting Environmental Students
• Mike Reagan, California PIRG

05/11/2007 at 09:30AM

The Environmental and Energy Study Institute (EESI) invites you to learn about national renewable electricity portfolio standards such as the one included in the House energy bill (HR 3221, Sect. 9611) as the House and Senate go to conference on the energy bill. A Renewable Portfolio Standard (RPS) is a market-based mechanism that requires utilities to gradually increase the portion of electricity produced from renewable resources such as wind, biomass, geothermal, solar, incremental hydropower and marine energy. Twenty-five states and the District of Columbia have RPSs, covering over 40 percent of the nation’s electrical load. A national RPS has passed the Senate in the last three Congresses, although it is not included in the Senate energy bill (HR.6).

A national RPS has many attributes that can benefit all states, including lowering natural gas prices, providing manufacturing jobs, improving air quality, reducing greenhouse gas emissions and creating larger, stable markets for renewable energy technologies. A June analysis by the US Energy Information Administration (EIA) of a national RPS proposed by Senate Energy Committee Chair Bingaman (D-NM) requiring electric utilities to acquire 15 percent of their electricity from renewable energy sources by 2020, found net consumer cost to increase just 0.3 percent through 2030 compared to the reference case. EIA also found that by 2030, prices for natural gas and coal, two key fuels for the electric power sector, are lower with the RPS than in the reference case. Speakers for this event include:

• Leon Lowery, Majority Staff, Senate Committee on Energy and Natural Resources
• Chris Namovicz, Operations Research Analyst, Energy Information Administration
• Dr. Marie Walsh, Adjunct Associate Professor, Dept. of Agricultural Economics, University of Tennessee
• Jeff Deyette, Energy Analyst, Union of Concerned Scientists
• Bill Prindle, Deputy Director, American Council for an Energy-Efficient Economy

Some are concerned that not all states, particularly those in the Southeast, have sufficient renewable resources to satisfy a national RPS. In 2005, bioenergy was the largest component of renewable electricity production in the nation, comprising 56 percent of all renewable electricity and 1.3 percent of total electricity. This percentage can be increased significantly since each state has important biomass resources that can be utilized sustainably to produce clean, renewable, domestic energy. According to the EIA analysis, biomass generation-from dedicated biomass plants and existing coal plants co-firing with biomass fuel-grows the most by 2030, more than tripling from 102 billion kilowatt-hours (kwh) in the reference case to 318 billion kwh with the RPS policy. In addition to renewable energy, HR 3221 includes four percent energy efficiency (25 percent of the RPS credits) as part of the standard, which allows states to make use of low-cost efficiency opportunities to help meet the standard. At least three states (including Nevada, North Carolina, and Pennsylvania) include energy efficiency as part of their RPS. In August 2007, North Carolina enacted a Renewable Energy and Energy Efficiency Portfolio Standard requiring all investor-owned utilities in the state to supply 12.5 percent of 2020 retail electricity sales in the state from eligible energy resources by 2021.

01/11/2007 at 02:00PM

The Environmental and Energy Study Institute (EESI) invites you to learn about the loan guarantee provisions in the 2007 energy bills that have passed the House and Senate and await conference (HR. 6/HR. 3221). The Senate bill’s provision would significantly alter how the Department of Energy (DOE) provides taxpayer-funded loan guarantees for new energy technologies, especially to costly nuclear power plants. Section 124(b) of the Senate bill (HR. 6) allows loan guarantees to be given to multiple projects to construct an existing nuclear power design; exempts DOE’s loan guarantee program from Sec 504(b) of the Federal Credit Reform Act of 1990 (FCRA) which allows DOE to write unlimited loan guarantees without Congressional oversight; and gives DOE unfettered access to the Incentives for Innovative Technologies Fund (EPACT 2005) without requiring appropriations or any fiscal year limitation. This provision, if adopted, would eliminate Congressional authority and the safeguards provided through the appropriations process regarding expenditures for these potentially risky projects and shift enormous financial risk from Wall Street banks to America’s taxpayers. The House-passed legislation on loan guarantees is different; it says that no eligible technology can be excluded from consideration from loan guarantees.

Because of the likelihood of delays and cost overruns in building new nuclear power plants, Wall Street banks are unwilling to accept any financial risks for nuclear power loans. Six of the nation’s largest investment banks-Citigroup, Credit Suisse, Goldman Sachs, Lehman Brothers, Merrill Lynch, and Morgan Stanley- recently told the DOE, “We believe these risks, combined with the higher capital costs and longer construction schedules of nuclear plants as compared to other generation facilities, will make lenders unwilling at present to extend long-term credit.” Our briefing panel will discuss whether the loan guarantee provisions constitute a significant taxpayer liability and/or poor governance. Speakers include:

• Peter Bradford, President, Bradford Brook Associates; former Chair, New York State Public Service Commission and Maine Public Utilities Commission; and former Commissioner, U.S. Nuclear Regulatory Commission
• Jerry Taylor, Senior Fellow, Cato Institute
• Jim Harding, CEO, Harding Consulting
• US Government Accountability Office (GAO)

Not only is the cost to the taxpayers potentially very high, so is the risk. The Congressional Budget Office has said there is a good chance that the DOE will underestimate the costs of administering these loans and that more than 50 percent of new reactor projects will default on their loan repayments, leaving taxpayers at risk. U.S. taxpayers will be fully liable for any potential shortfalls. The nuclear industry ask is $25 billion for FY 2008 and more than that in FY 2009-more than $50 billion in two years. According to the Congressional Research Service, this is more than the $49.7 billion spent by the DOE for all nuclear power R&D in the 30 years from 1973-2003. This is also well over the Administration’s target of $4 billion in loan guarantees for nuclear and coal for FY 2008.

This briefing is open to the public and no reservations are required.

30/10/2007 at 10:30AM

Last week the Union of Concerned Scientists released a new version of “Cashing In on Clean Energy”, judging the economic and environmental effects of a 15% renewable electricity standard (RES) by 2020 (aka renewable portfolio standard (RPS)), the standard called for in HR 3221, the House energy bill. [The Senate version did not include the Bingaman amendment of the same standard, and the provision is at the negotiating table; the initial UCS study looked at a 20% by 2020 standard; the 1Sky/Step It Up campaign calls for 20% by 2015.]

Using an Energy Information Administration (EIA) model, The UCS found the following:

• Consumer savings would equal $13 billion to $18.1 billion in lower electricity and natural gas bills by 2020 (growing to $27.7 billion to $31.8 billion by 2030 if the standard does not increase)
• Clean, renewable energy capacity would increase between 3.6 and 4.5 times over 2005 levels
• Reductions in global warming pollution equal to taking between 13.7 and 20.6 million cars off the road

The ranges are generated for lower and higher RES scenarios, depending on implementation choices:

Under our “lower renewable energy case”: (1) all states opt into a provision that allows electric service providers to use energy efficiency to meet up to 27 percent of their annual targets, and (2) additional renewable energy generation from electric power providers having to meet higher targets under state standards is eligible. Under the “higher renewable energy case”: (1) states with renewable standards that are higher than the federal targets (there are 18) do not opt into the energy efficiency provision, and (2) additional renewable energy generation used to meet state standards is retired and not eligible for use under the national standard.

From CQ:

After negotiations with key Republicans, Senate Majority Leader Harry Reid said Friday he was prepared to seek a conference with the House on energy policy legislation.

“The Speaker wants to go to conference. I want to go to conference,” Reid, D-Nev., said on the floor Friday. “We know we can’t do a bill unless we include the Republicans in it.”

The unanimous consent to move to conference was blocked on a procedural basis by John Cornyn, R-Texas, Friday afternoon because many senators were traveling, but no objections were expected this week.

That said, the battle over CAFE standards remains strong, with the auto industry lobbying hard for the weaker Hill-Terry language (HR 2927). Last week GM Chairman and CEO Rick Wagoner met with Al Hubbard, director of the National Economic Council, Nicole Nason, the administrator of the National Highway Traffic Safety Administration, and EPA officials, and Ford CEO Alan Mulally is expected in DC this week.

Meanwhile, the natural gas industry is calling for expanded drilling:

The American Petroleum Institute, Independent Petroleum Association of America, and seven other trade associations representing natural gas producers, pipelines, and consumers jointly expressed strong concern Oct. 19 about US House energy legislation that they believe would reduce instead of increase domestic gas supplies. . . . The 2005 Energy Policy Act contains several provisions to encourage production in frontier areas, including ultradeep water, ultradeep gas, and offshore Alaska, which HR 3221 seeks to repeal, they said.

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.”

HR 3221, the New Direction for Energy Independence, National Security, and Consumer Protection Act, passed at 5:40 PM by a vote of 241-172. 26 Republicans voted in favor of the bill and 9 Democrats against.

At 4:39 PM the Udall renewable energy standard (RES) amendment passed 220-190. 32 Republicans voted for the provision and 38 Democrats against.

At 8:16 PM, HR 2776, the Renewable Energy and Energy Conservation Tax Act, was passed by a vote of 221-189. 9 Republicans voted in favor and 11 Democrats against. The bill was subsequently attached to HR 3221 and the combined bill will go into conference with the Senate.

From CQ:

Energy legislation remained in limbo Friday, stalled by tight vote counts, partisan squabbling and fresh veto threats from the White House. Floor consideration was likely to be delayed until Saturday — at best.

Democrats at midday were considering making changes to the energy tax package (HR 2776) to placate oil-state Democrats upset about treatment of the oil and gas industry.

There “may be some slight changes,” said John B. Larson, D-Conn., vice chairman of the Democratic Caucus, after a meeting in the office of House Speaker Nancy Pelosi, D-Calif. Larson would not elaborate on what the changes might be, but Democrats have been struggling to ensure that they can muster a majority vote in support of the energy package. They cannot count on support from many, if any, Republicans.

House Democratic leaders still insist the chamber will take up the energy tax bill and a broader energy measure (HR 3221) before it leaves for the month-long August recess. The Rules Committee was expected to draft a rule later Friday, with floor votes Saturday. But even that could prove optimistic.

Democratic aides said they expect a prolonged debate on a fiscal 2008 defense spending bill (HR 3222) that is set to go to the House floor ahead of the energy package. Republicans were threatening to use parliamentary delaying tactics on that bill.

“We didn’t get the rule for the energy package done yesterday. That means the earliest it could be taken up would be Saturday,’’ said a senior Democratic aide.

The proposed amendments to HR 3221 have been submitted and are available for review, as are those for HR 2776.

Of significance for HR 3221:

• Both major CAFE standards bills, Markey-Platts, and Hill-Terry, were withdrawn. Barton’s CAFE bill is still on the slate as Amendment #62
• Udall-Platts (HR 969), the Renewable Energy Standard, is on the slate as Amendment #96 and probably has enough votes for passage
• Herseth Sandlin submitted Amendment #81 to change the Renewable Fuels Standard program to require the production of 36 billion gallons of renewable fuels by 2022
• Boustany’s Amendment #9 makes the Secretary of Energy a statutory member of the National Security Council
• Shay’s Amendment #105 doubles the funding for the Weatherization Assistance Program

HR 2776:

• McCrery submitted the Republican substitute for the tax package as Amendment #7

The Committee on Rules is expected to meet Thursday, August 2, 2007 to grant a rule which may structure the amendment process for floor consideration of H.R. 2776, the Renewable Energy and Energy Conservation Tax Act of 2007, and H.R. 3221, the New Direction for Energy Independence, National Security, and Consumer Protection Act.

Any Member wishing to offer an amendment to H.R. 3221 must do so by 5:00 PM on Wednesday, August 1, 2007.

02/08/2007 at 03:00PM