Hill Heat

Environmental group Friends of the Earth, who had endorsed John Edwards’s campaign for president, today launched an ambitious campaign criticizing the Lieberman-Warner climate bill (S. 2191) and Senate Democrats supporting it, noting that Edwards, Clinton, and Obama had all released climate plans that distinctly differ from the bill in economics and emissions targets. At Lieberman-Warner.org:

After years of ignoring global warming, the U.S. Senate is finally considering legislation to cap greenhouse gas pollution. Unfortunately, the Lieberman-Warner bill being advanced by Senate Democrats lavishes up to $1 trillion on industries responsible for global warming, and in return asks for reduction targets well below what scientists say are necessary. If this is the best Senate Democrats can do, the world is in trouble.

Friends of the Earth Action is leading the fight to either fix, or ditch, Lieberman-Warner, and we need your help.

The good news is that we already have some key allies: the Democratic presidential candidates. They all have plans that make polluters pay for emissions and that seek the carbon reductions called for by science. We think the Senate needs to build on their plans rather than the weak Lieberman-Warner bill, which is modeled on legislation by Senator John McCain.

At this morning’s House Global Warming Committee hearing on Auctions and Revenue Recycling in Cap and Trade, the witnesses presented some of the first Congressional testimony on the economic implications of a greenhouse-emissions cap and trade system such as the one proposed in Lieberman-Warner (S. 2191).

A summary of some of the analysis presented in the written testimony:

1. Power generators will raise prices the same whether allowances are given away for free or are auctioned, because the price is set by the limitation in supply (the cap)
2. Investment in energy efficiency provides greater immediate taxpayer return than technology investment
3. Because power generators are free from competition they don’t need any protection through free allowances
4. A European Commission analysis found no macroeconomic negative impact of moving their cap-and-trade system to full auction
5. Free allocation to load-serving entities is a subsidy to electricity consumption, which leads to an increase in allowance prices and requiring greater decreases from other sectors
6. The “virtual tax” a cap-and-trade system imposes can be greatly alleviated if revenues are used to reduce pre-existing taxes
7. To fully offset the costs on the electricity sector through free allocation of allowances would cost the government 2.5 to ten times the value of the economic harm to the emitters, depending on whether the free allowances are narrowly targeted (15% of sector allowances) or nationally distributed (65% of sector allowances)
8. To fully offset the costs on the poorest 20% of the American public takes about 14% of total revenues of a 100% auction system

Excerpts from the testimony related to the above points are below the jump.

Representatives of the coal, oil, and gas lobby met yesterday at the United States Energy Association’s “State of the Energy Industry” conference at the National Press Club in Washington. They agreed that Lieberman-Warner may be the best legislation they can hope for, especially if issues like polar bear habitat set the standard for legislation.

Katherine Ling reports for E&E Daily that David Parker, president and CEO of the American Gas Association, said “Who would you rather have writing a bill in the Senate? I might guess it may set a tone for business to fully work with the Senate this year.” He continued that “the polar bear habitat is going to really drive this [climate change] debate. We all have a big education job to do and I think we need to do it collectively.”

Bill Scher has further commentary at Blog for Our Future.

In A Solar Grand Plan (Scientific American January 2008), Ken Zweibel (NREL), James Mason (Solar Energy Campaign) and Vasilis Fthenakis (Brookhaven National Photovoltaic Environmental, Health and Safety Research Center) lay out a vision for replacing our fossil fuel-powered electricity production to solar energy. The editorial summary:

A massive switch from coal, oil, natural gas and nuclear power plants to solar power plants could supply 69 percent of the U.S.’s electricity and 35 percent of its total energy by 2050.

A vast area of photovoltaic cells would have to be erected in the Southwest. Excess daytime energy would be stored as compressed air in underground caverns to be tapped during nighttime hours.

Large solar concentrator power plants would be built as well.

A new direct-current power transmission backbone would deliver solar electricity across the country.

But $420 billion in subsidies from 2011 to 2050 would be required to fund the infrastructure and make it cost-competitive.

By way of contrast, the Friends of the Earth analysis finds that Lieberman-Warner (S. 2191) allocates approximately $800 billion in subsidies to the fossil fuel industry, with about $350 billion to subsidize carbon capture and sequestration specifically. About $350 billion is allocated to all sustainable technologies (wind, solar, biomass, geothermal).

A year-end fundraising email from Sen. Barbara Boxer (D-Calif.), chair of the Committee on Environment and Public Works calls the committee approval of the Lieberman-Warner climate bill “a huge step forward” and “one of my proudest accomplishments”:

Subject: A huge step forward

Our progress on moving global warming legislation through the Environment and Public Works Committee this month and sending it on to the full Senate was a huge step forward for America, and personally, it was one of my proudest accomplishments over my 30 year career in public service.

But we’ve still got many more steps to take over the coming years to fight global warming and save our planet for our kids, our grandkids, and generations to come.

That’s one big reason I’ve decided to run again for the U.S. Senate when my term expires in 2010—and, because we know that I’ll be a top target for the right wing, I’m already preparing for a tough race. . .

As Chairman of the Environment and Public Works Committee, leading the fight against global warming will continue to be my top priority. And, if 2008 goes our way, I may soon be working with a new Democratic President and expanded Democratic majorities in Congress who share our commitment to that fight.

But we’re not going to solve the climate change crisis with just one bill, a better Congress, or a Democratic President. Fighting global warming is going to require many years of focus, dedication, and leadership to see things through. . .

We’ve still got a lot of work to do on fighting global warming, ending the war in Iraq, protecting our environment, defending a woman’s right to choose, and so many other important issues—and I’m going to need you with me every step of the way.

Ed. – the fundraising pitches have been stripped out.

In Bali, EE News reporter Darren Samuelson interviews David G. McIntosh, Sen. Lieberman (I-Conn.)’s counsel and legislative assistant for energy and the environment, about the prospects for Lieberman-Warner (S. 2191) on the Senate floor in 2008.

Before joining Senator Lieberman’s staff in April 2006, McIntosh served briefly as a Maryland assistant attorney general representing the state’s air agency. Before that, he worked at NRDC as a Clean Air Act litigator and regulatory lawyer. After graduating from Harvard Law School in 1998, he clerked for a U.S. District Court judge in Washington, DC before joining the legal and lobbying firm Covington & Burling, for one year. He is not to be confused with former representative David M. McIntosh (R-Ill.), a strong fighter against environmental regulations.

“We could probably predict a half-dozen issues that would be top-line amendment issues,” McIntosh said during an interview at the United Nations’ global warming negotiations in Bali. “Some of them, we have the ability through negotiation and engagement to have those amendments be presented in a way that is not divisive, that does not divide up the votes that would otherwise support passage on the floor.”

McIntosh predicted Senate negotiations over the climate bill from Lieberman and Sen. John Warner (R-Va.) would center foremost on the economic implications tied to creating a first-ever mandatory cap on U.S. greenhouse gas emissions. He also expects a strong push on incentives for nuclear power.

McIntosh hopes to be able to craft a nuclear title suitable for inclusion in Lieberman-Warner:

The bill’s lead cosponsors are interested in “seeing if it is possible to craft an amendment or to encourage others on nuclear enegry in ways that’d be seen as targetted and relevant and fitting within the confines of the bill rather than efforts to revive every type of support for nuclear power that anyone has ever thought of.”

Sen. Kerry (D-Mass.), the only Senator in Bali, also spoke on Lieberman-Warner:

I can’t tell you precisely when, but we’re committed to having this debate regardless of whether or not we can pass it or where the votes are. We believe it’s an important marker, and we intend to make this part of the debate in the presidential elections of 2008.

Sen. Boxer (D-Calif.) successfully shepherded the Lieberman-Warner Climate Security Act (S. 2191) out of the Environment and Public Works Committee from yesterday’s markup with a 12-8 vote, Sen. Warner and the two independents (Lieberman and Sanders) joining the nine Democrats.

Boxer:

The vote of the Environment and Public Works Committee in favor of the Climate Security Act was a historic moment for our country and for my Committee.

For me, it was the greatest legislative accomplishment of my political career of thirty years.

Finally, America is taking bold steps to avert the catastrophe that awaits our children and grandchildren if we do nothing.

Our bill has two goals…to fight global warming and to do it in a way that keeps our economy strong. That will be my focus in the coming weeks and months as we move the bill forward to the Senate floor.

This bill is the most far reaching global warming bill in the world and I am grateful to Senators Lieberman and Warner for breaching the partisan divide and unleashing a spirit of cooperation that puts the wind at our backs.

Ranking member Inhofe:

For the first time in history, a fatally flawed global warming cap-and-trade bill was passed out of committee. Not only is the entire cap-and-trade approach fatally flawed, but the Lieberman-Warner bill failed to improve today, as Democrat amendments were added. Instead of engaging in substantive debate, the Democrats chose to simply reject all serious efforts to mitigate the unintended consequences of this bill and ensure adequate future energy supplies for this nation.

The rejection of key amendments has guaranteed an enormous floor fight as many major issues were side-stepped. While the vote today was never in question, it did provide an opportunity for Republicans to expose the serious deficiencies of this bill. The full Senate now needs to look at a cost-benefit analysis of this bill. It is simply all economic pain for no climate gain. Numerous analyses have placed the costs at trillions of dollars. Even if you accept the dire claims of man-made global warming, this bill would not have a measurable impact on the climate.

Republicans, in a good faith effort, offered a conservative number of amendments [Ed.—150] to address the most important flaws in this bill. Unfortunately, they were rejected. As is, this bill will strike a devastating blow to American families, American jobs, and the American way of life.

We have had approximately 20 climate hearings on the impacts of climate change, but none on so called ‘solutions.’ [Ed.—other than this, this, this, this, this, this] Differing approaches to reducing emissions were never discussed. Instead, the Committee rushed to a single approach, without the aid of government analyses.

Within seven years, electricity prices are estimated to skyrocket 35 to 65 percent and will have a huge economic hit on households. These costs are far greater than the McCain-Lieberman bill that was voted down by the Senate two years ago. Additionally, the poor will be the hardest hit as they pay about five times more per month, as a percentage of their monthly expenditures, compared to wealthier Americans. By 2015 this bill is estimated to cost up to 2.3 million jobs [Ed.—by CRA International], and these lost jobs will go to China, India, and other emerging nations without carbon limits.

The morning part of the session was carried live on C-SPAN 2.

Sen. Bond’s chart from his opening statement:

Amendments

Amendments adopted: Sanders low-carbon manufacturing incentives, Lautenberg decoupling incentives, Cardin good government.

Amendments rejected: Craig offramps, Inhofe auto-industry job offramp, Bond low-income family cost-relief, Isakson nuclear title, Voinovich available-tech offramp.

Amendment withdrawn: Carper multiple-pollutant title.

Markup of Lieberman-Warner, S 2191, scheduled for December 5.

MORNING

Sen. Bond’s chart from his opening statement:

Amendments

Amendments adopted: Sanders low-carbon manufacturing incentives, Lautenberg decoupling incentives, Cardin good government, Klobuchar renewable energy bonus study, Lautenberg aviation greenhouse gas study, Sanders advanced tech vehicle language, Whitehouse coastal impacts, Barrasso coal propaganda, Carper recycling, Craig-Warner forestry package, Alexander low-carbon fuel standard, Inhofe NAS study explicitly including nuclear.

Amendments rejected: Craig offramps, Inhofe auto-industry job offramp, Bond low-income family cost-relief, Isakson nuclear title, Voinovich available-tech offramp, Craig-Inhofe nuclear offramps, Voinovich energy cost offramp, Vitter offshore drilling, Sanders CCS bonus restriction, Sanders 80% target, Sanders 2-degree limit, Barrasso soda ash mine methane emissions exemption, Clinton-Sanders no industry permit giveaways, Voinovich state regulation preemption, Voinovich Clean Air Act exemption, Inhofe Yucca Mountain authorization.

Amendments withdrawn: Carper multiple-pollutant title, Carper output-based allocation, Cardin public transit, Barrasso small refiner giveaways, Voinovich WTO nullification, Barrasso high-altitude CCS demonstration, Barrasso local economy offramps, Inhofe nuclear PTC.

05/12/2007 at 09:00AM

Tomorrow morning’s Environment and Public Works markup of the Lieberman-Warner climate bill (S. 2191) promises to be long and contentious, quite possibly to be extended to Thursday. Republicans have proposed over 150 amendments, with Sen. Craig offering 46; EE News reports they expect votes on upwards of 50 of the amendments. Democrats have submitted about 30 amendments.

Below is a summary of the amendments the senators of the committee are planning to submit, in addition to Sen. Boxer’s manager’s mark.

Major amendments include Sen. Clinton’s two amendments. The first establishes 100% auction of permits, and the second dramatically restricts CCS funding. Sanders #4 establishes an 80% target and #7 limits total offset permits. Vitter #10 restricts ownership of allowances primarily to covered entities. Carper #1 places caps on traditional air pollutants and Carper #2 bases permit giveaways to power sector on historical electricity production, not emissions. Isakson proposed various pro-nuclear amendments.

Friends of the Earth has highlighted five amendments they support.