Hill Heat

A media conference call to discuss the findings of a study jointly commissioned by the National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) that quantifies the potential national and state economic impacts of the Lieberman-Warner climate change bill, S. 2191, the America’s Climate Security Act of 2007.

Conducted by Science Applications International Corporation (SAIC), the independent study examines the implications of the legislation with respect to future energy costs, economic growth, employment, production, household income and the impact on low income earners. The study includes a comprehensive national economic assessment, as well as separate and specific overviews of the impact the legislation would have on all 50 U.S. states.

The results of the study will be outlined during a brief presentation which will be followed by a question and answer session. The full SAIC national and 50 state-specific studies will be posted online at 9:30 am ET, Thursday, March 13, in advance and can be found at either www.accf.org or www.nam.org/climatechangereport.

The call is for credentialed media only.

• The Honorable John Engler, President, National Association of Manufacturers
• Dr. Margo Thorning, Senior Vice President and Chief Economist, American Council for Capital Formation

12/03/2008 at 10:00AM

U.S. Senator Barbara Boxer (D-CA), Chairman of the Senate Environment and Public Works Committee, will be joined by the heads of America’s leading environmental organizations to discuss the need for action to address the challenge of global warming.

Participants

• Sen. Barbara Boxer (D-CA), Chairman, Environment and Public Works Committee
• Frances Beinecke, President, Natural Resources Defense Council
• Carl Pope, Executive Director, Sierra Club
• Gene Karpinski, President, League of Conservation Voters
• Kevin Knobloch, President, Union of Concerned Scientists

Also participating will be representatives of Environment America, Environmental Defense, Center for International Law, Clean Water Action, National Wildlife Federation, Ocean Conservancy, Pew Environment Group, Physicians for Social Responsibility, and The Wilderness Society.

12/03/2008 at 09:30AM

E&E News’s Darren Samuelson reports in a pair of stories that the House of Representatives is moving forward to introduce companion legislation to the Lieberman-Warner Climate Security Act (S. 2191), the cap-and-trade legislation wending its way through the Senate. Rep. John Dingell (D-Mich.), whose Energy and Commerce Committee has jurisdiction, told steel industry officials last week that he plans “to release one or more draft global warming bills for comment by mid-April.”

Samuelson also reported that Rep. Markey, chair of the Select Committee on Energy Independence and Global Warming and a strong ally of Speaker Pelosi, has been meeting with “alternative energy producers, labor groups, financial market officials and industry representatives” to craft legislation.

Rep. Markey is preparing to send a report directly to Pelosi with proposals to address climate change or offer amendments when the House Energy and Commerce Committee holds a markup on a major piece of climate legislation, sources on and off Capitol Hill said today.

Markey said: “I think you should do the best you can each year. I do. And we have a real chance this year. If there’s an epiphany that occurred at the White House, then there we are with a chance to make history.”

The Sierra Club, until today, has stayed on the sidelines during the contretemps over Lieberman-Warner (S. 2191) fueled by a campaign by Friends of the Earth asking Sen. Barbara Boxer (D-Calif.) to “fix or ditch” the bill. The 1.3 million member organization has now made its position clear.

In an essay posted to Grist’s Gristmill blog this afternoon, Sierra Club executive director Carl Pope delineates clear principles for endorsing climate legislation, all of which Lieberman-Warner currently fails to satisfy:

• Reductions in total emissions on the order of 80 percent by 2050 and 20 percent by 2020
• All allowances should be auctioned or otherwise used to benefit the public
• Revenue should fund “highest-value solutions”, not coal or nuclear energy
• Ensure a just transition for workers, protect vulnerable groups, and help induce world action

He compares the current political situation to the one that led to the Clean Air Act in 1971, saying that “Maine Sen. Edmund Muskie, fearing that industry would block him on other points, acceded” to the industry insistence to grandfather old plants, and that environmentalists like the 25-year-old Pope went along.

He then responds to Sen. Barbara Boxer and advocates of pushing a climate bill this year hell or high water:

Fast-forward to present day: the carbon industries are lobbying to get a deal done this year that would give away carbon permits free of charge to existing polluters – bribing the sluggish, and slowing down innovation. And politicians are telling us that while it would be better to auction these permits and make polluters pay for putting carbon dioxide into our atmosphere, creating that market unfortunately gets in the way of the politics. We are being urged to compromise – to put a system in place quickly, even if it is the wrong system.

Friends of the Earth announced today that it is expanding its web and print “Fix or Ditch” campaign with a local network and cable ad buy before the February 12 Virginia, Maryland, and DC primaries.

The campaign, which challenges Senate Democrats to change Lieberman-Warner’s emissions targets and allowance distribution provisions (S. 2191) to reflect the platforms of the presidential candidates of their party, has drawn fire from Sen. Boxer (D-Calif.) and Environmental Defense as well as a passionate letter of support from Greenpeace.

Meanwhile, American Prospect correspondent (and Tapped co-founder) Chris Mooney challenges the Democratic platforms of 100% auction and 80% reduction in emissions by 2050 in This Will Mean the World to Us (sub. req.):

Many Democratic campaigns, responding to their environmental base, are currently outlining cap-and-trade regimes featuring a highly ambitious 100 percent auction process for the initial pollution allowances or permits, with the proceeds going to other needed public policies, such as investment in the clean-energy technologies that must ultimately supplant fossil fuels. When it comes to specifying precise reductions, meanwhile, the campaigns generally seem to agree that we need something like bringing emissions back to 1990 levels by 2020 and decreasing them by 80 percent by 2050, through a cap that becomes progressively more stringent.

An 80 percent reduction by 2050 does indeed square with what scientists think would be necessary to avoid the worst climate impacts—most notably, the loss of large bodies of land-based ice currently perched atop Greenland and West Antarctica, which, upon sliding into the ocean, would drive catastrophic sea-level rise. It’s one thing to outline a policy in the abstract, however, and quite another to get it through the next Congress. As one climate policy insider says, “The environmental community has a tendency to run their leaders off a plank; that’s what they’re setting up right now with this 80 percent reduction by 2050.”

The more moderate approach of the Lieberman-Warner bill is to reduce capped emissions (and not all emissions are included) by 70 percent by 2050. Lieberman-Warner is also pragmatic in another way: It does not set up a 100 percent auction for emissions allowances, a system that major emitters oppose. They think they should be granted allowances gratis at the outset (or as climate experts say, there should be “grandfathering”). Under Lieberman-Warner, just 24 percent of allowances would be auctioned off initially, though the percentage would increase over time. It’s far easier to get buy-in from industry in this way, and although Lieberman-Warner may have a tough time passing both houses of Congress before the election (or surviving a possible presidential veto), it may be precisely the type of bill that can sail through in 2009.

What’s achievable in climate policy seems to be changing all the time, but still we mustn’t shoot the moon. Consider the perspective of Tim Profeta, current director of Duke’s Nicholas Institute, who previously served as a chief architect of the McCain-Lieberman Climate Stewardship Act, which failed by a 55-to-43 Senate vote in 2003. “As somebody who fought for a freeze of emissions in the 2003 Congress and was told it was too aggressive, it is hard for me to believe where we are now,” Profeta says. “The current movement to require 100 percent auctions and even deeper cuts faces strong political opposition from emitters, many of whom have good arguments about what is economically feasible for their companies. I fear that we might pass up the opportunity for real action now—when it is essential to have the U.S. begin to reduce its emissions—because someadvocatescontinue to shift the objectives to stricter and stricter limits as the debate proceeds.” It’s fine for Democratic candidates, at the moment, to answer the call of environmental groups—the Sierra Club, for instance, has criticized Lieberman-Warner—and present highly ambitious cap-and-trade proposals. But after the election, the new president will need to be flexible and focus on getting a workable bill passed. It can be strengthened later as more science comes in—2050 is, after all, still far away—but we must at least begin ratcheting down emissions now.

Last Thursday, Darren Samuelson of E&E News interviewed Sen. Barbara Boxer (D-Calif.) and an NRDC representative in response to the Friends of the Earth campaign to “fix or ditch” the Lieberman-Warner cap-and-trade bill (S. 2191). In its campaign, Friends of the Earth challenged Boxer for supporting Lieberman-Warner’s high degree of emitter giveaways and subsidies and its target of 60% reductions from 1990 levels of greenhouses by 2050, although the Democratic presidential candidates are calling for 100% auction and 80% by 2050.

Sen. Barbara Boxer (D-Calif.):

Their logic doesn’t hold up. What we need to do is not waste time. If we can get a strong bill signed into law, we should get it. And if we can’t, we shouldn’t. . . . They’re sort of the defeatist group out there. They’ve been defeatists from day one. And it’s unfortunate. They’re isolated among the environmental groups.

Boxer went on to emphasize the importance of holding senators accountable on global warming through test votes.

Julia Bovey, NRDC:

We do not agree with Friends of the Earth. We are not willing to give up the fight. We believe the Lieberman-Warner bill as passed out of committee is a very strong start. That doesn’t mean there isn’t room for improvement.

NRDC had previously described the bill as “a strong start”.

Brent Blackwelder, Friends of the Earth president, responded:

Far from being defeatists, we’re being realists. We’re focusing on what the scientists tell us has to be done to solve global warming. It’s not acceptable to pass a bill that falls short of the science. It’s not acceptable to pass a bill that gives $1 trillion to polluters.

On Monday, Environmental Defense Climate & Air director Mark McLeod sent an email to several Senate offices excoriating Friends of the Earth for placing L-W and Boxer “under attack”, claiming that opposition in the “liberal blogosphere” to Lieberman-Warner or the passage of any climate bill in this session “will become orthodoxy if we do not present a counterview from respected pro-environment voices.”

He characterized Friends of the Earth as “small and fairly isolated” in contrast to ED and “many other major environmental groups” who “are in favor of moving forward to get a strong bill like Lieberman-Warner,” saying also that Friends of the Earth is calling for “unrealistic dramatic changes.”

The full text of McLeod’s email is after the jump.

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.

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.