What's Missing from the House Energy Bill; Dingell on Carbon Tax
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.
Bills to amend the Reclamation Wastewater and Groundwater Study and Facilities Act
- S.1054 and H.R.122, bills to amend the Reclamation Wastewater and Groundwater Study and Facilities Act to authorize the Secretary of the Interior to participate in the Inland Empire regional recycling project and in the Cucamonga Valley Water District recycling project,
- S.1472, to authorize the Secretary of the Interior to create a Bureau of Reclamation partnership with the North Bay Water Reuse Authority and other regional partners to achieve objectives relating to water supply, water quality, and environmental restoration,
- S.1475 and H.R.1526, bills to amend the Reclamation Wastewater and Groundwater Study and Facilities Act to authorize the Bay Area Regional Water Recycling Program,
- H.R.30, to amend the Reclamation Wastewater and Groundwater Study andFacilities Act to authorize the Secretary of the Interior to participate in the Eastern Municipal Water District Recycled Water System Pressurization and Expansion Project,
- H.R.609, to amend the Reclamation Wastewater and Groundwater Study andFacilities Act to authorize the Secretary of the Interior to participate in the Central Texas Water Recycling and Reuse Project, and
- H.R.1175, to amend the Reclamation Wastewater and Groundwater Study andFacilities Act to increase the ceiling on the Federal share of the costs of phase I of the Orange County, California, Regional Water Reclamation Project
Lieberman and Warner to unveil cap and trade plan tomorrow
The press conference has been announced for 10:30 AM tomorrow.
EPW Committee Sets A Deadline for the California Waiver
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-
- 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—
- has been submitted by the State; and
- is pending as of the date of enactment of this subsection.
- 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.
House Renewable Energy Action: HR 3221 and HR 2776
- 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.
California Waiver Deadline, Public Health, Endangered African and Asian Species, Nominations Markup
- S.742, to amend the Toxic Substances Control Act to reduce the health risks posed by asbestos-containing products,
- S.595, to amend the Emergency Planning and Community Right-to-Know Act of 1986 to strike a provision relating to modifications in reporting frequency,
- S.1785, to amend the Clean Air Act to establish deadlines by which the Administrator of the Environmental Protection Agency shall issue a decision on whether to grant certain waivers of preemption under that Act,
- S.775, to establish a National Commission on the Infrastructure of the United States,
- H.R.50, to reauthorize the African Elephant Conservation Act and the Rhinoceros and Tiger Conservation Act of 1994,
- S.1429, to amend the Safe Drinking Water Act to reauthorize the provision of technical assistance to small public water systems, H.R.465, to reauthorize the Asian Elephant Conservation Act of 1997,
- S.1832, to reauthorize the African Elephant Conservation Act, the Rhinoceros and Tiger Conservation Act of 1994, and the Asian Elephant Conservation Act of 1997,
- S.1498, to amend the Lacey Act Amendments of 1981 to prohibit the import, export, transportation, sale, receipt, acquisition, or purchase in interstate or foreign commerce of any live animal of any prohibited wildlife species, and
- R. Lyle Laverty, of Colorado, to be Assistant Secretary for Fish and Wildlife, Department of the Interior, and
- Robert Boldrey, of Michigan, to be a Member of the Board of Trustees of the Morris K. Udall Scholarship and Excellence in National Environmental Policy Foundation
S.1785 requires the EPA to make a decision on the California waiver by September 30. It passed out of committee by a party-line 10-9 vote.
Senate Farm Bill Outlook
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.
Broader Policy Overhaul May Be in Store as Senate Takes Up Farm Bill By Catharine Richert, CQ StaffThe Senate is prepared to write a dramatically different farm bill than the version the House passed last week.
The Senate debate will not happen until September or later. For now, Senate Agriculture Chairman Tom Harkin, D-Iowa, has promised to increase funding for land-conservation programs far above House numbers.
The $286 billion, five-year House measure (HR 2419), which passed, 231-191, on July 27, would impose new limits on farm subsidies, increase support for fruit and vegetable growers, boost land conservation and increase funding for nutrition programs. Farmers making more than $1 million a year would not be eligible for federal assistance.
Given the tight budget for the farm bill, subsidies are likely to be Harkin’s first target. He has said he will support a proposal by Charles E. Grassley, R-Iowa, that would cap the amount of money a farmer can get at $250,000 a year. Currently, the cap is $360,000 a year. The House bill does not include an overall payment cap.
Harkin has other options. Richard G. Lugar, R-Ind., supports FARM21, a version of a proposal by Rep. Ron Kind, D-Wis., that the House rejected. It would have phased out some subsidies and reinvested billions into conservation, nutrition and rural development programs.
Sens. Sherrod Brown, D-Ohio, and Richard J. Durbin, D-Ill., issued a plan to link countercyclical payments, which kick in when the price of a crop drops below a government-set target, to a crop’s revenue instead. They say their plan would be cheaper and more compliant with international trade law.
The flurry of proposals signals that the Senate is more open to a broad overhaul of the 2002 farm law (PL 107-171), says Scott Faber, farm policy director for Environmental Defense, an organization that will seek deeper cuts to subsidies and more money for conservation programs.
Also hoping for a bigger pot of money are nutrition advocates, who asked the House for an extra $20 billion over five years for a broad range of food programs.
Ellen Vollinger, who works for the Food Research and Action Center, said that money may be difficult to find in the Senate because of the tight budget. Her group may be looking for a much smaller amount, she said. The House bill proposes a $4 billion increase to various nutrition programs over five years.
Some of the extra cash for nutrition programs in the House bill came from cuts to crop insurance. Agriculture Chairman Collin C. Peterson, D-Minn., made those changes at the last minute to mollify food stamp advocates such as Jim McGovern, D-Mass., who vowed to vote against the bill unless it did more to boost nutrition.
The rest of it came from a provision that would tax foreign companies doing business here — which almost sunk the House bill. Most Republicans voted against the measure over the tax provision.
If a similar provision appears in the Senate farm bill — or becomes an issue in the expected conference on the legislation — big business is sure to launch an attack claiming that the package would discourage foreign companies from setting up shop in the United States.
House passes Farm Bill 2
- 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.
- The Ron Kind (D-Wis.) amendment (H.AMDT. 700, text) to cut farm subsidies and invest the money in conservation, nutrition, rural development and deficit reduction failed 117-309
- The Charles B. Rangel (D-N.Y.) amendment (text) to make it easier for Cuba to buy U.S. crops failed 182-245
- The John A. Boehner (R-Ohio) amendment to prevent farmers from locking in artificially high loan-deficiency payments failed 153-271
- The Adam H. Putnam (R-Fla.) amendment (text) to increase the subsidy ceiling above $1 million if 75% of the recipient’s income was farm-related failed 175-252
- The Jim Cooper (D-Tenn.) amendment (text) to make cuts to the crop insurance programs to support grasslands conservation failed 175-250
- The Lee Terry (R-Neb.) amendment (text)to create $10 million worth of sweet sorghum ethnanol demonstration project passed by voice vote
- The Dennis Cardoza (D-Calif.) amendment (text)to return plant pest inspections to the Department of Agriculture from Homeland Security Department passed by voice vote
River and water supply management bills
S.300, to authorize appropriations for the Bureau of Reclamation to carry out the Lower Colorado River Multi-Species Conservation Program in the States of Arizona, California, and Nevada, S.1258, to amend the Reclamation Safety of Dams Act of 1978 to authorize improvements for the security of dams and other facilities, S.1477, to authorize the Secretary of the Interior to carry out the Jackson Gulch rehabilitation project in the State of Colorado, S.1522, to amend the Bonneville Power Administration portions of the Fisheries Restoration and Irrigation Mitigation Act of 2000 to authorize appropriations for fiscal years 2008 through 2014, and H.R.1025, to authorize the Secretary of the Interior to conduct a studyto determine the feasibility of implementing a water supply and conservation project to improve water supply reliability, increase the capacity of water storage, and improve water management efficiency in the Republican River Basin between Harlan County Lake in Nebraska and Milford Lake in Kansas
Bipartisan Support for Clean Energy Provisions in House Energy Bill
Members of the House will hold a news conference to urge support for the inclusion of clean energy provisions in energy legislation that will be taken up by the House in order to address the problem of global warming and provide solutions the nation’s energy challenges. The bills supported are the Udall-Platts Renewable Electricity Standard (HR 969) and the Markey-Platts Fuel Economy Reform Act (HR 1506).
Contact: Liz Hitchcock at 202-546-9707, ext. 316
- Rep. Wayne T. Gilchrest, R-Md.
- Rep. Paul W. Hodes, D-N.H.
- Rep. Edward J. Markey, D-Mass.
- Rep. Todd R. Platts, R-Pa.
- Rep. Mark Udall, D-Colo.
- Rep. Tom Udall, D-N.M.
Reps. Wayne Gilchrest (R-MD), Paul Hodes (D-NH), Mark Kirk (R-IL), Ed Markey (D-MA), Todd Platts (R-PA), Mark Udall (D-CO) and Tom Udall (D-NM) said they will work to ensure that a strong 35 mile per gallon fuel economy standard and renewable electricity standard are included in the final bill. The Renewable Electricity Standard (H.R. 969) is sponsored by Reps. Tom Udall (D-NM) and Todd Platts (R-PA), and the Fuel Economy Reform Act (H.R. 1506) is sponsored by Reps. Ed Markey (D-MA) and Todd Platts (R-PA).
“Not since I first came to Congress over 30 years ago has America seen such high gas prices and the political will to move forward on fuel economy standards,” said Rep. Edward Markey (D-MA), Chairman of the Select Committee on Energy Independence and Global Warming. “We need to ensure a strong 35 mile per gallon standard joins a renewable electricity standard in the final bill that heads to the President.”
Rep. Todd Platts (R-PA) said, “Energy is an economic, environmental, and national security issue. Higher fuel efficiency standards for cars, a renewable energy standard for electricity, and similar initiatives are important to saving consumers money, conserving our resources and protecting the environment, and lessening our dependence on foreign oil.”
The House energy bill includes important clean energy and energy efficiency measures, and the Senate has passed legislation that calls for an increase in fuel economy to 35 miles per gallon. The final congressional energy package could be further strengthened by adding provisions to increase renewable electricity and preserve a strong 35 mpg fuel efficiency standard. Twenty three states and the District have already passed a Renewable Electricity Standard (RES), also called a renewable portfolio standard or RPS, which would require utilities to gradually increase the amount of renewable energy they use to generate electricity each year. It creates a market-based mechanism of tradable renewable energy credits – similar to the Clean Air Act trading system – allowing utilities to meet the requirements at the lowest cost.
Utilities would receive a credit for every kilowatt of electricity they produce from wind, solar, geothermal, tidal, ocean, and biomass energy – which includes capturing the gas from landfills and animal waste – as well as for improvements made to existing hydroelectric facilities. These credits could be traded or sold among utilities, or bought from the Department of Energy.
“As Congress prepares to address the many important energy issues facing our nation, we must consider the benefits of renewable energy. Establishing a federal renewable portfolio standard will balance a wide range of interests,” Rep. Tom Udall (D-NM) said. “Not only will it help us meet our growing demand for electricity, it will also reduce our exposure to fossil fuel price spikes and supply interruptions, increase economic development in the renewable energy industry, and improve our environment.”
A 2006 analysis by U.S. PIRG found that by obtaining 20 percent of our electricity from renewable energy sources by 2020 combined with a cap on global warming pollution, the U.S. would cut global warming pollution over 500 million tons, the equivalent of taking approximately 89 million cars off the road. According to the Union of Concerned Scientists, an RES standard of 20 percent by 2020 would generate over 185,000 new high-paying jobs in manufacturing, construction and more. In addition, the policy would save consumers at least $10.5 billion on their electric and natural gas bills by 2020.
“The Udall-Platts Renewable Electricity Standard amendment will create public benefits for everyone. The renewable energy goals it sets are significant, and the requirement is not overly burdensome for states as it gives them flexibility to achieve these goals. The passage of this amendment will benefit farmers, save consumers money, reduce air pollution, and increase reliability and energy security,” said Rep. Mark Udall, who is co-chair of the Renewable Energy and Energy Efficiency Caucus in the House of Representatives.
The Markey-Platts Fuel Economy Reform Act guarantees an annual four percent increase in corporate average fuel economy (CAFE) standards to ensure the U.S. achieves 35 miles per gallon for new cars by 2018. Experts say that by 2022, this action would reduce oil consumption by the same amount currently imported from the Persian Gulf, about 2.2 illion barrels of oil a day. In addition, the measure would save consumers $37 billion at the pump and lead to 241,000 additional jobs.
“Upgrading fuel economy standards is a commonsense step to decrease America’s dependence on foreign oil,” said Rep. Mark Kirk (R-IL). “Increasing standards would save the average American family $2,000 per year. Additionally, a national renewable electricity standard will allow us to take advantage of the economic benefits of renewable energies.”
Several conservation groups have stepped up their lobbying on Capitol Hill in support of these amendments in recent days to ensure continued momentum on clean energy as House consideration of an energy bill approaches. The Senate passed its energy bill last month.