Hill Heat

Last weekend, Sen. Barbara Boxer led a delegation from the Environment and Public Works Committee to Greenland:

• Barbara Mikulski (D-Md.)
• Ben Cardin (D-Md.)
• Bill Nelson (D-Fl.)
• Frank Lautenberg (D-N.J.)
• Amy Klobuchar (D-Minn.)
• Sheldon Whitehouse (D-R.I.)
• Johnny Isakson (R-Ga.)
• Bob Corker (R-Tenn.)
• Bernie Sanders (I-Vt.)

Inhofe sent staffer Mark Morano, a former writer for the rightwing Cybercast News Service. Richard Alley of Penn State University, the lead author on the United States Intergovernmental Panel on Climate Change was the scientific advisor on the trip. They met with Arkalo Abelsen, Greeland’s environmental minister.

• Barbara Boxer: Urge Your Senators to Support the Sanders/Boxer Global Warming Bill!

The New York Times has an editorial on the energy bill to be debated this week (HR 3221): An Incomplete Energy Bill.

The House will begin debating Friday on a generally useful energy bill that would increase energy efficiency, encourage more responsible oil and gas development on public lands and stimulate investment in cleaner fuels. Yet the bill is incomplete. If it truly hopes to address the problems of global warming and energy independence, three vital issues need to be addressed.

The three missing components:

• CAFE Standard (Markey-Platts, HR 1506)
• Renewable Energy Standard (Udall, HR 969)
• Low-Carbon Fuel Standard

This is also the Union of Concerned Scientists platform.

Rep. Dingell, meanwhile, wrote an op-end on the carbon tax: The Power in the Carbon Tax. It’s a critical insight into the thinking of perhaps the most influential person in Congress in shaping global warming policy.

I apparently created a mini-storm last month when I observed publicly for at least the sixth time since February that some form of carbon emissions fee or tax (including a gasoline tax) would be the most effective way to curb carbon emissions and make alternatives economically viable. I said, as I have on many occasions, that we would have to go to some kind of cap-and-trade system for carbon emissions.

The press conference has been announced for 10:30 AM tomorrow.

In this morning’s markup, the Senate Environment and Public Works Committee approved S. 1785, which has the following straightforward text:

Section 209 of the Clean Air Act (42 U.S.C. 7543) is amended by adding at the end the following: (f) Waivers of Preemption-

1. PENDING REQUESTS- Not later than 30 days after the date of enactment of this subsection, but in no case later than September 30, 2007, the Administrator shall issue to the Governor of each applicable State a decision on each request for a waiver of preemption under subsection (b) that—
   1. has been submitted by the State; and
   2. is pending as of the date of enactment of this subsection.
2. SUBSEQUENT REQUESTS- With respect to a request for a waiver of preemption under subsection (b) (including such a request submitted by a State that has adopted and enforced certain standards as described in section 177) that is submitted by a State after the date of enactment of this subsection, not later than 180 days after the date on which the Administrator receives the request, the Administrator shall issue to the Governor of the State a decision on whether to grant the waiver.

It passed by a party-line 10-9 vote.

On July 30, Speaker Pelosi set the agenda for her energy independence initiative, which she had originally hoped to complete by July 4th. The legislative package will be introduced to the floor in two parts:

• the Renewable Energy and Energy Conservation Tax Act of 2007 (HR 2776) from the Ways and Means Committee, reported out at the end of June
• and the New Direction for Energy Independence, National Security, and Consumer Protection Act (HR 3221), which needs to be signed off by the relevant committees

HR 2776 provides tax incentives for renewable electricity production, biofuels, efficient appliances, plug-in hybrids, and renewable energy bonds. It pays for these incentives buy reducing oil and gas royalties and closing the “Hummer” tax loophole.

HR 3221 is a wide-ranging omnibus, under the jurisdiction of the following committees:

• Education and Labor (Title I: green jobs)
• Foreign Affairs (Title II: foreign assistance and trade)
• Small Business (Title III: small business sustainability initiative)
• Science and Technology (Title IV: research funding—HR 364, HR 906, HR 1933, HR 2773, HR 2774, HR 2304, HR 2313)
• Agriculture (Title V: biofuels)
• Oversight and Government Reform (Title VI: carbon-neutral government)
• Natural Resources (Title VII: Energy Policy Act of 2005 reforms, changes in oil and gas royalties, wind energy, CCS, wildlife, oceans)
• Transportation and Infrastructure (Title VIII: public transportation, highways, shipping, public buildings)
• Energy and Commerce (Title IX: appliance, lighting, and building efficiency, smart grid, renewable fuel infrastructure, plug-in hybrids)
• Armed Services (it’s unclear which components are under its jurisdiction)

All amendments to HR 3221 must be introduced by Wednesday afternoon. The Rules Committee will convene Thursday at 3 PM to establish the debate rules and timetable.

After the amendment process and ratification, the package will then go into conference to be reconciled with the Senate energy bill, SA 1502, passed mid-June.

From CQ.com: Broader Policy Overhaul May Be in Store as Senate Takes Up Farm Bill.

Summary:

• Senate will take up bill after August recess; making the September 30 deadline unlikely
• Sen. Harkin, Ag Committee chair, plans much higher land-conservation program funding than in House bill (HR 2419)
• Harkin and Grassley (R-Iowa) plan to cap annual payments to $250,000 from current cap of $360,000; HR 2419 has no cap
• Sen. Lugar (R-Ind.) supports FARM21, Ron Kind’s proposal (H.AMDT 700)
• Sens. Durbin (D-Ill.) and Brown (D-Ohio) introduced the Farm Safety Net Improvement Act last week, which ties “counter-cyclical” payments (aka crop subsidy payments) to revenue (price times yield) instead of the target price (see the American Farmland Trust page)
• Nutrition advocates are looking for better than the $4 billion increase in the House bill
• Tax provisions to pay for the Senate bill will generate Republican resistance

Full text below the fold.

Last week, Sen. Mary Landrieu (D-La.) presented the Containing and Managing Climate Change Costs Efficiently Act (S. 1874), a piece of legislation authored by Joe Lieberman’s former environmental advisor, Timothy Profeta, who now heads the Nicholas Institute for Environmental Policy Solutions at Duke University.

The proposal would establish the Carbon Market Efficiency Board which would oversee the emissions trading market established by cap-and-trade legislation. The board would operate much like the Federal Reserve Board, providing information on price and low-emission technology investment trends to Congress and the public, and it would adjust the price of emissions permits when a “market correction” is needed. The first measure is to expand companies’ ability to “bank” permits, or borrow permits against future year reductions. The second measure, to be used if high prices are not relieved by the first measure, is to add a slightly larger number of permits to the market. This temporary increase would be compensated for by reducing available permits in a later year, when more options have been developed.

Profeta testified about the proposal in last week’s hearing. His white paper goes into further detail.

The bill is intended to be folded into the Lieberman-Warner package to be presented as a discussion draft at the end of the week.

John Warner (R-Va.), Lindsey Graham (R-S.C.), and Blanche Lincoln (D-Ark.) are cosponsoring the bill, in a bipartisan show of strength by pro-business Senators. [The League of Conservation Voters/Chamber of Commerce scores for the senators are: Warner 14%/100%, Graham 29%/92%, Landrieu 43%/75%, Lincoln 43%/67%. By way of comparison, Lieberman is 71%/44%.]

By 231-191, the House passed the farm bill (HR 2419) today. Highlights:

• The bill funds the energy title, which funds biofuels research and development, energy efficiency programs and renewable-energy projects, by reversing $6.1 billion over ten years of the offshore drilling royalty payments mistakenly granted to oil and gas companies
• The bill found additional funding for food stamps by by ending a practice known as “earnings stripping,” which lets foreign-owned companies shift income to a country with lower tax rates, delivering $7.8 billion over 10 years
• The Senate is expected to start debating its version of the legislation after the August recess. Current programs expire Sept. 30 and it is unlikely Congress will be able to complete action on a new five-year bill by then. Instead, a short-term extension of the law is likely to be necessary.
• The $5 million per year Community Food Projects program to fight food insecurity by funding projects that promote the self-sufficiency of low-income communities was zeroed out.

At today’s hearing on the California waiver, EPA administrator Stephen Johnson refused to condemn or even comment on the Department of Transportation’s lobbying against the waiver. He also refused to state whether or not the administration is opposed to the request.

In his testimony, he admitted speaking to the Secretary of the Department of Transportation, Mary E. Peters, at the beginning of the comment period, and obfuscated over what they discussed. He admitted that they discussed reaching out to her “constituency”, which when pressed by Sen. Boxer, he understood to mean governors and members “particularly interested” in transportation. He avoided saying what the Secretary’s intentions or views were and whether he recommended the “constituency” should send in comments.

His new excuse for not making a decision on the waiver request is the “voluminous” amount of comments. He was understandably accused of footdragging by the Democrats on the panel.

Tomorrow’s global warming hearing, led by Joe Lieberman, will be a prelude to the cap-and-trade legislation now being written by his and John Warner’s staffers. This bill will be the default Senate cap-and-trade bill unless matters dramatically change. See CQ Green Sheets for more.