Hill Heat

Originally posted at the Wonk Room.

After years of delay, Secretary of the Interior Dirk Kempthorne made a landmark decision on whether global warming pollution is regulated by the Endangered Species Act (ESA). Kempthorne ruled that the polar bear should be classified as a “threatened species” due to the decline of polar sea ice, critical to its survival. Kempthorne stated:

They are likely to become endangered in the near future.

The Department of Interior, under Secretary Dirk Kempthorne, fought for several years in the courts since 2005 to avoid making a decision on whether the precipitous decline in Arctic sea ice due to global warming is making the polar bear an endangered species. Fish and Wildlife Service director Dale Hall testified in January that there was no significant scientific uncertainty in the endangerment posed by global warming to polar bears—the only legal justification under the Endangered Species Act for a delay.

Kempthone’s decision to follow the science is in marked contrast to Environmental Protection Agency Administrator Stephen Johnson’s action to override his staff in refusing to regulate tailpipe greenhouse gas emissions.

However, Kempthorne also argued vigorously that his decison does not compel the Bush administration to construct a plan to regulate greenhouse gas emissions, repeating President Bush’s entirely spurious claim that would be a “wholly inappropriate use” of the Endangered Species Act. The Interior news release announces, “Rule will allow continuation of vital energy production in Alaska.” Kempthorne claimed that the Marine Mammal Protection Act (MMPA) is “more stringent” than the ESA, despite the court ruling that compelled him to make today’s ruling stating that “the protections afforded under the ESA far surpass those provided by the MMPA.”

Yesterday morning, the Senate passed the Ensign-Cantwell clean energy package (S.Amdt 4419) by a vote of 88-8. The package is attached to Sen. Chris Dodd’s (D-Conn.) Foreclosure Prevention Act (S. Amdt 4387 to H.R. 3221), which was approved 84-12.

The future of the energy package now depends on whether the House is willing to consider it a “stimulus” that merits deficit spending.

The eight senators in opposition were Sens. Alexander (R-Tenn.), Bunning (R-Ky.), Byrd (D-W.Va.), Carper (D-Del.), Dodd (D-Conn.), Kyl (R-Ariz.), Sessions (R-Ala.), and Voinovich (R-Ohio). Alexander and Kyl’s alternate version of the package (S. Amdt 4429), which would have extended credits by another year and lowered the wind production credit, died by a 15-79 vote. Dodd had vigorously argued that the renewable tax package was not germane to his housing bill.

Not voting were the three presidential candidates and Sen. Liddy Dole (R-S.C.).

According to a report in CQ Tuesday, the Senate deadlock on the renewable tax-credit package may have broken, led by efforts by Sen. Maria Cantwell (D-Wash.) and John Ensign (R-Nev.). Ensign told reporters he expects “a big announcement” on Thursday.

Details of the renewable incentives have been released, but not the full package, including revenue provisions (that is, is oil company tax breaks will be rolled back) and other elements that have been in previous iterations, such as benefits for the coal industry.

A summary:

• The renewable energy production tax credit (PTC) is extended one year to 2009 and modified to include tidal power
• The solar and fuel cell investment tax credit (ITC) is extended 8 years to 2016
• The residential energy-efficient property credit is extended one year to 2009, and the $2,000 cap is removed
• Clean Renewable Energy Bonds (CREBs) are extended one year to 2009, with an additional $400 million authorized
• The 10% ITC for energy-efficiency improvements to existing homes is extended one year to 2009
• The contractor tax credit for energy-efficient new homes is extended two years to 2010
• The energy-efficient commercial buildings deduction is extended one year to 2009 and increases the $1.80/sqft max to $2.25/sqft
• The energy-efficient appliance credit is extended to 2010

The full language explaining the incentives is after the jump.

Dirk Kempthorne has not confirmed attendance.

Witnesses

• The Honorable Dirk Kempthorne, Secretary, U.S. Department of the Interior (INVITED)

• Dr. Douglas B. Inkley, Senior Scientist, National Wildlife Federation
• Kassie R. Siegel, Director of the Climate, Air, and Energy Program, Center for Biological Diversity
• William P. Horn Esq., Birch, Horton, Bittner & Cherot

02/04/2008 at 10:00AM

On Tuesday, April 1, 2008, Chairman Edward J. Markey (D-Mass.) will bring top-level executives from the five largest oil companies to discuss the current state of oil and gas prices, oil company profits, and the need for clean, renewable fuels to ease demand for oil and cut global warming pollution.

ExxonMobil reported record profits of $40.6 billion in 2007, and the other top four oil companies like BP and Shell made billions more. These same companies are fighting to keep $18 billion in tax breaks that Congress is attempting to shift towards renewable energy incentives for wind, solar, biomass and other climate-friendly sources. The House recently passed the Renewable Energy and Energy Conservation Tax Act of 2008, but President Bush and the top oil companies are fighting to defeat the measure in the Senate.

Witnesses

• Mr. J. Stephen Simon, Senior Vice President, Exxon Mobil Corp.
• Mr. John Hofmeister, President, Shell Oil Company
• Mr. Robert A. Malone, Chairman and President, BP America, Inc.
• Mr. Peter Robertson, Vice Chairman, Chevron
• Mr. John Lowe, Executive Vice President, ConocoPhillips

01/04/2008 at 12:00PM

The Subcommittee will review recommendations from policy experts, the Government Accountability Office and the Inspector General’s office for improving the Federal oil and gas royalty system in light of the recent report to the Minerals Management Service’s Royalty Policy Committee entitled “Mineral Revenue Collection from Federal and Indian Lands and the Outer Continental Shelf.”

Witnesses

Panel 1

• Mr. Earl Devaney, Inspector General, Department of the Interior
• Mr. David Deal, Vice Chair, Royalty Policy Committee, Department of the Interior
• Mr. Frank Rusco, Acting Director, Natural Resources and Environment, General Accounting Office

Panel 2

• Hon. C. Stephen Allred, Assistant Secretary, Land and Minerals Management, Department of the Interior
• Mr. Randall Luthi, Director, Minerals Management Service
• Mr. Larry Finfer, Deputy Director, Office of Policy Analysis, Department of the Interior
• Ms. Linda Stiff, Acting Commissioner, Internal Revenue Service
• Mr. Dennis Roller, Royalty Audit Section Manager, Office of the State Auditor, North Dakota

11/03/2008 at 10:00AM

Despite earlier reports that the Senate was considering inclusion of the oil-for-renewable package (H.R. 5351) in its budget reconciliation, as the budget markup begins today, the filibuster-proof strategy has been taken off the table.

The National Journal reports:

While a Senate budget resolution is going to set aside $13.4 billion over five years for these renewable and efficiency credits – some of which expire this year – it merely signals that the issue is one of the priorities for Senate Democrats and does not forward debate over how to pay for those credits. . . a spokesman for Reid said he will not resurrect an energy tax debate until after lawmakers come back from the upcoming two-week Easter recess.

The Journal also reports that Sen. Maria Cantwell (D-Wash.) has been tasked by Majority Leader Reid to attempt to find further Republican votes to establish a veto-proof majority for the package.

CQ Politics points to Sen. Landrieu as objecting to using reconciliation:

Sen. Mary L. Landrieu , D-La., for example, is against using the process to pass renewable-energy tax breaks if they lead to tax hikes on oil and gas companies.

Sen. Landrieu cast a deciding vote against the oil-for-renewable tax package during the 2007 energy bill debate.

Upon the House passage of the oft-stymied oil-for-renewable tax package as a standalone bill (H.R. 5351) last week, Ben Geman of E&E News reported on a possible mechanism for moving the bill through the Senate with a simple majority:

Senate Democrats are eyeing a filibuster-proof budget bill as a vehicle for energy tax provisions that have narrowly failed to win the 60 votes needed to cut off debate, several lawmakers said yesterday.

Energy taxes are a “candidate to be considered in [budget] reconciliation,” Budget Chairman Kent Conrad (D-N.D.) told reporters. “I think we have to look at things that reduce our dependence on energy.”

The oil-for-renewables package, which faces the threat of a Bush veto, received resounding support from a broad coalition of industry, investors, and environmental organizations in a press conference today on the first day of the Washington International Renewable Energy Conference. President Bush is scheduled to offer the keynote address to the convention tomorrow.

The Democratic House leadership sent a letter today challenging Bush to sign the House oil-for-renewables tax package (H.R. 5351) passed by their chamber yesterday.

Promotion of the renewable energy industry is the goal of the Washington International Renewable Energy Conference, which your Administration hosts next week. The conference offers a remarkable world platform to support a fiscally responsible commitment to these industries and technologies and the jobs they will produce. We urge you to reconsider your previous opposition to fiscally sound incentives for American renewable energy, and lend your support to this historic legislation in time for this occasion.

At today’s press conference, President Bush parried a question about his threatened veto of bill (after admitting ignorance about the likely $4 gallon gas this spring).

He claimed the cost-neutral bill would “cost the consumers more money and we need more oil and gas being explored for, we need more drilling, we need less dependence on foreign oil.” With respect to renewable energy, he discussed cellulosic ethanol and other biofuels, nuclear energy, and carbon sequestration, but not solar, wind, or energy efficiency.

From the beginning of her tenure, Speaker Nancy Pelosi (D-Calif.) has attempted to pass legislation cutting billions in tax breaks and royalty payments to oil and gas companies to invest in renewable energy and energy efficiency. The legislation has died twice by a single vote in the Senate – in December as part of the energy bill (H.R. 6), and three weeks ago as part of the economic stimulus legislation (H.R. 5140).

House leadership announced plans to immediately reintroduce the legislation as a standalone bill, named the Renewable Energy and Energy Conservation Tax Act of 2008 (H.R. 5351).

Debate on the bill is now taking place, with a final vote scheduled for some time after 3 PM EST.

Update: HR 5351 passed by a roll call vote of 236-182. 17 Republicans joined the Democratic majority; 8 Democrats (Barrow, Boren, Cuellar, Gene Green, Lampson, Melancon, Ortiz, Rodriguez) voted against passage.