Hill Heat

From the Wonk Room.

Speaking before a joint session of Congress on Tuesday, President Barack Obama declared that his plan to restore America’s economic prosperity “begins with energy.” The details of his proposed budgetary outline reveal what Obama meant:

Restoration of Superfund.

In 2002, Bush crippled Superfund, the federal program for cleaning up the most toxic sites in America, by eliminating the tax on industrial polluters “that once generated about $1 billion a year.” President Obama’s budget reinstates Superfund taxes in 2011, restoring $17 billion over ten years to the depleted program.

Polluters Pay To Fight Climate Change And Make Work Pay.

The Bush administration rejected the Kyoto Protocol in 2001, and instituted a voluntary program to reduce greenhouse gas emissions in 2002, which instead rose. President Obama calls for a mandatory cap on carbon emissions starting in 2012, expected to raise $645.7 billion over ten years. Instead of sending those revenues back to the polluters, $15 billion a year will go to clean energy technologies, with the rest funding the Making Work Pay tax credit to reduce payroll taxes for every working American.

Ending Tax Breaks For Fossil Fuel Industry.

Oil, natural gas, and coal companies enjoyed record profits in recent years, even as numerous incentives and tax breaks for companies that drill and mine our shared resources were protected. President Obama’s budget eliminates $31.75 billion in oil and gas company giveaways and increases the return from natural resources on federal lands by $2.9 billion over ten years.

In a column at the Center for American Progress, director of climate strategy Dan Weiss analyzes the budget and finds: “President Obama’s proposed energy budget is a ray of sunshine after an eight-year blackout. Congress must now make this clean energy future a reality.”

From the Wonk Room.

Responding pre-emptively to plans of a massive act of civil disobedience at the coal-fired U.S. Capitol Power Plant, the leaders of Congress today called for an end to its use of coal. In a letter to the Architect of the Capitol, Senate Majority Leader Harry Reid (D-NV) and House Speaker Nancy Pelosi (D-CA) describe the plant as “a shadow that hangs over the success” of the architect’s efforts to green the Capitol:

The Capitol Power Plant (CPP) continues to be the number one source of air pollution and carbon emissions in the District of Columbia and the focal point for criticism from local community and national environmental and public health groups.

Reid and Pelosi note that “there are not projected to be any economical or feasible technologies to reduce coal-burning emissions soon.” (In other words, coal is dirty.) They ask the architect to switch the plant fully to natural gas “by the end of the year”:

Therefore it is our desire that your approach focus on retrofitting at least one of the coal boilers as early as this summer, and the remaining boiler by the end of the year.

The switch will allow the plant “to dramatically reduce carbon and criteria pollutant emissions, eliminating more than 95 percent of sulfur oxides and at least 50 percent of carbon monoxide,” as well as the costs of “cleaning up the fly ash and waste.”

Gristmill’s Kate Sheppard reports “that doesn’t mean the big protest on Monday is off, according to organizers,” because “there are still hundreds of other power plants burning coal around the country.”

From the Wonk Room.

The Center for Public Integrity has found that “more than 770 companies and interest groups hired an estimated 2,340 lobbyists to influence federal policy on climate change in the past year,” estimating total expenditures of $90 million. Their comprehensive investigation of climate lobbying discovered that nearly 2,000 of the lobbyists represent corporate interests.

CPI found that the top climate lobbying shop was the American Coalition for Clean Coal Electricity (ACCCE), a coal-industry front group that spent $10.5 million lobbying Congress:

No group exemplifies the sophistication of the current debate more than the American Coalition for Clean Coal Electricity — a new lobbying organization unveiled just weeks before the vote last June on the Warner-Lieberman bill. Representing 48 mining firms, coal-hauling railroads and coal-burning power companies, ACCCE spent $10.5 million lobbying Capitol Hill on climate in 2008 — more than any other organization solely dedicated to the issue. In addition to the group’s president, Steven Miller, a one-time aide to former Democratic Kentucky Gov. Brereton Jones, and vice president Joe Lucas, who was an aide to former Energy Secretary Hazel O’Leary, ACCCE has at least 15 outside lobbyists, including former White House Counsel Quinn. The big effort is not surprising, since electricity is the largest single source of U.S. greenhouse gas emissions, and the most carbon-intensive fuel, coal, provides half the nation’s power. But ACCCE’s position is that it supports a mandatory federal program to curb the emissions its own members produce—as long as the policy meets ACCCE’s set of principles for keeping electricity affordable, domestically produced, and reliable. And that means encouraging, in ACCCE’s words, “robust utilization of coal.”

Check out the “The Climate Change Lobby” site, including a searchable database of lobbyists and a sampling of top players.

From the Wonk Room.

In a sweeping address to both houses of Congress, the Supreme Court, and the Cabinet, President Barack Obama introduced his budgetary plan for the United States government, explaining it will “invest in the three areas that are absolutely critical to our economic future: energy, health care, and education” :

It begins with energy.

Obama described how countries like China, Germany, Japan, and South Korea have leapfrogged our nation, becoming the leaders in energy efficiency and renewable energy – using technology invented in the United States. “It is time for America to lead again,” Obama declared to sustained applause. He noted the recovery plan’s investments in renewable energy, efficiency, and a new clean electrical grid. However, he challenged the Congress to deliver legislation to limit global warming emissions “to truly transform our economy” and “save our planet”:

But to truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America. And to support that innovation, we will invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America.

While Congress has been willing to support new incentives and tax breaks for energy development (including “clean coal”), both Democrats and Republicans have balked at putting a price on global warming pollution.

President Barack Obama’s excerpted remarks on energy:

From the Wonk Room.

The first satellite designed exclusively to measure atmospheric carbon dioxide from space failed to reach orbit during this morning’s launch, NASA reported. The Orbital Carbon Observatory (O-C-O, an acronym that matches the chemical diagram for carbon dioxide) “did not achieve orbit successfully in a way that we could have a mission,” Nasa launch commentator George Diller announced following the early-morning liftoff. “I am bitterly disappointed about the loss of OCO,” Dr. Paul Palmer, a scientist collaborating on the mission, told BBC News. “My thoughts go out to the science team that have dedicated the past seven years to building and testing the instrument.” NASA’s announcement explains the loss in dry terms:

When OCO launched Feb. 24, the payload fairing did not separate as it was supposed to and the mission ended.

The OCO would have complemented the Japanese satellite Gosat, designed to measure carbon dioxide and methane emissions with an infrared spectrometer and a cloud and aerosol imager. Gosat successfully launched on Friday. The two satellites were designed to work together and cross-check each other’s measurements, with “a common ground validation network to help combine data from the missions.”

Satellite measurement of CO2 emissions is needed to complete scientists’ understanding of the carbon cycle. Scientific American’s David Biello explained the mystery of the missing carbon before OCO’s launch:

Human activity—from coal-fired power plants to car tailpipes—is responsible for nearly 30 billion metric tons of carbon dioxide wafting into the atmosphere yearly. We know that roughly 15 billion metric tons remains in the atmosphere for a century or more. A portion of the rest ends up in the ocean—acidifying saltwater and making life tough for corals—and another chunk appears to be helping tropical trees grow thicker. We don’t know, however, where the rest of humanity’s CO₂ is disappearing to.

From the Wonk Room.

An all-star cast of the leading voices in the new Obama era is convening at the Newseum in Washington DC to discuss the future of U.S. energy policy. The National Clean Energy Project follows a similar meeting convened by Senate Majority Leader Harry Reid (D-NV) last summer in Nevada. But much has changed in the past few months. The new administration – including Energy Secretary Steven Chu, Interior Secretary Ken Salazar, and White House energy adviser Carol Browner – have committed to a multibillion investment in a new clean energy grid with the economic recovery act signed into law last week by President Obama.

The webcast of the event can be seen at NationalCleanEnergyProject.org.

Former senator Tim Wirth of Colorado introduces the meeting.

10:30 PRESIDENT BILL CLINTON

Every time before in the last thirty years when I started this … every time oil dropped people said give my Hummer back. They’re not saying that any more. I want to thank everybody this economic recovery bill has good things in it and I’m grateful as a citizen. We have to maximize the value of this economic recovery. The big short-term gains in jobs and greenhouse gas reductions are in energy efficiency advances.

10:35 VICE PRESIDENT AL GORE

We really do have a planetary emergency. This sounds shrill to many ears. We’re still not used to thinking in those terms. We’ve seen the oil price roller coaster. This roller coaster’s headed for a crash and we’re in the front car.

10:45 HOUSE SPEAKER NANCY PELOSI

We have to hold together or we will all regret the missed opportunity.

10:55 T. BOONE PICKENS

Geothermal does not operate an eighteen-wheeler. Get realistic… I’m running out of time. But we are going to have an energy policy in America.

11:00 JOHN PODESTA, CENTER FOR AMERICAN PROGRESS ACTION FUND

We have to recognize we’re living through a terrible recession, a dependence on fossil fuels, and the almost existential threat of global warming.

will come out of the Energy Committee.

From the Wonk Room.

The economic recovery plan agreed to by House and Senate negotiators will “pump billions of dollars into ‘smart grid’ projects,” renewable energy, energy efficiency, and public transit. The conference report reduced some of the more controversial elements that were included by the Senate:

COAL SUPPORT

Wonk Room: Senate ‘Improvements For Integration’ Loophole May Make $4.6 Billion ‘Clean Coal’ Fund A Dirty Giveaway (2/12/09):

The Senate version of the American Recovery and Reinvestment Act adds $2.2 billion to the House’s allocation of $2.4 billion for the development of “carbon capture and sequestration technologies” (CCS). Furthermore, the Senate language adds a dangerous loophole that changes a potentially green investment into subsidy for a dirty industry.

CONFERENCE REPORT: Fossil energy funding is now $3.4 billion, with no specific terms or limitations.

NUCLEAR WEAPONS

Wonk Room: Senate’s Billion-Dollar Nuclear Weapons Provision Should Be Cut From Recovery Plan (2/10/09):

Buried in the Senate version of the economic recovery plan — despite the “heroic” efforts of Sen. Ben Nelson (D-NE), Sen. Susan Collins (R-ME), and other centrists to “fr[y] the bacon” — is an allocation of $1 billion to the National Nuclear Security Administration (NNSA) for “weapons activities.” This provision, divorced as it is from any semblance of national security strategy, should be eliminated.

CONFERENCE REPORT: Nuclear weapons funding has been eliminated.

‘CLEAN ENERGY’ LOAN GUARANTEES

Wonk Room: Senate Appropriators Add $50 Billion Nuclear Waste To Recovery Plan (1/30/09):

On Wednesday, the Senate Appropriations Committee voted to increase nuclear loan guarantees by $50 billion in the economic recovery package (S. 336). This sum “would more than double the current loan guarantee cap of $38 billion” for “clean energy” technology.

CONFERENCE REPORT: These loan guarantees have been eliminated.

From the Wonk Room.

The coal-industry public relations group, American Coalition for Clean Coal Electricity (ACCCE), is celebrating the Senate’s insertion of billions of dollars of coal R&D funds in the recovery plan in an email to supporters. The Senate plan added $2.2 billion to the House’s allocation of $2.4 billion for the development of “carbon capture and sequestration technologies.” ACCCE heralded the ”$4.6 billion in clean coal technology funding” in the message, claiming the “funding is important because”:

• It contributes to energy independence, allowing us to use coal that is right here in America
• It stimulates the economy and could create almost 7 million job-years of employment and over $1 trillion in sales
• It will help fight climate change and aid other environmental goals by promoting technologies to reduce carbon dioxide and major air pollutants

It is not the case that $4.6 billion for coal technology could “create almost 7 million job-years of employment and over $1 trillion in sales.” The “7 million job-years” figure comes from “Employment and Other Economic Benefits from Advanced Coal Electric Generation with Carbon Capture and Storage,” a BBC Research report commissioned by ACCCE. The report says that the construction of 100 gigawatts of advanced coal plants - about 200 plants over a fifteen-year span - would generate that much job activity. The construction expenditures for a single plant with CCS is estimated at “approximately $2.0 to $2.1 billion.” So the $4.6 billion in the Senate plan is enough for the construction of only two plants and about 6,000 construction and manufacturing jobs. Two hundred plants would cost a $393 billion. The ACCCE email “is a bit confused,” Doug Jeavons, the author of the BBC report tells the Wonk Room:

The nearly 7 million job-years estimate is associated with full scale development of about 100 gigawatts of advanced coal CCS capacity, not just the proposed $4.6 billion in the stimulus plan.

Furthermore, the technology to build such plants does not yet exist. As NV Energy announced when they indefinitely postponed the construction of a coal-fired plant in Ely, Nevada:

The company will not move forward with construction of the coal plant until the technologies that will capture and store greenhouse gasses are commercially feasible, which is not likely before the end of the next decade.

To make CCS technology commercially viable, the Center for American Progress recommends, there should be a federal greenhouse emissions performance standard put in place for new plants, and a cap-and-trade system to make polluters pay for their emissions.

From the Wonk Room.

Announcing that “the time for reform has arrived,” Secretary of the Interior Ken Salazar set aside the Bush administration’s “midnight timetable” for offshore drilling. “On Friday, January 16, its last business day in office,” Salazar explained in his Feburary 10th press conference, “the Bush Administration proposed a new five year plan for offshore oil and gas leasing.” The Bush plan called for the completion of meetings and hearings by March 23. Salazar decried this “broken process”:

It was a headlong rush of the worst kind. It was a process rigged to force hurried decisions based on bad information. It was a process tilted toward the usual energy players while renewable energy companies and the interests of American consumers and taxpayers were overlooked.

Salazar announced he “will extend the public comment period by 180 days, get a report on offshore energy resources, hold regional conferences and expedite rulemaking for offshore renewable energy resources.”

Salazar made it clear that his definition of “energy independence” does not mean a “drill only” future. He rebuked the “oil and gas or nothing” approach of the Bush administration, who ignored the Energy Policy Act of 2005’s mandate to develop regulations for offshore renewables:

I intend to do what the Bush Administration refused to do: build a framework for offshore renewable energy development, so that we incorporate the great potential for wind, wave, and ocean current energy into our offshore energy strategy. The Bush Administration was so intent on opening new areas for oil and gas offshore that it torpedoed offshore renewable energy efforts.

On Tuesday, Sen. Barbara Boxer (D-CA) stood with fellow Democratic members of the Senate Committee on Environment and Public Works to introduce principles for climate legislation, saying “We know that we have to act, and we intend to act.” David Axelrod, one of President Obama’s senior advisers, told E&E News that the effort by Congress to construct legislation to fight global warming is more than welcome:

We think that it’s healthy that there’s so much momentum in Congress to address this problem. It’s long overdue.

Boxer admitted that December is her working deadline for getting a bill “out of committee.” Other Senate chairs, including Energy and Natural Resources Chairman Jeff Bingman (D-NM) and Finance Chairman Max Baucus (D-MT) intend to weigh in on any legislation. “All of those committees,” Majority Leader Harry Reid (D-NV) told E&E News, “especially my old committee, EPW, have an important role to play for the Senate to produce a sound cap-and-trade bill that meets the president’s emission reductions objectives.”

At Climate Progress, Joe Romm therefore doubts climate legislation will be passed before 2010: “So this has to get through multiple Senate committees, pass the full Senate, be reconciled with whatever comes out of the House, and then pass both House and Senate again, and finally end up on Barack Obama’s desk.”

Meanwhile, President Obama continues to build a green-powered administration, with the selection of Robert Sussman and Lisa Heinzerling as senior EPA policy advisers, Todd Stern as the State Department climate envoy, climate justice leader Ron Sims as deputy secretary for the Department of Housing and Urban Development, and even new assistant White House chef Sam Kass, a strong supporter of local, sustainable, and healthy food.

On February 4th, the EPA and Department of Justice restarted a “national initiative, targeting electric utilities whose coal-fired power plants violate the law,” with a lawsuit against a Kansas utility whose coal-fired power plant has been in violation of the Clean Air Act for more than ten years. The case against Westar Energy had been held up by the Bush administration since 2003. A memo from Stephen Johnson’s deputy Marcus Peacock practically shut down all enforcement activity in 2005.