Hill Heat

The Environmental and Energy Study Institute (EESI) invites you to learn about the loan guarantee provisions in the 2007 energy bills that have passed the House and Senate and await conference (HR. 6/HR. 3221). The Senate bill’s provision would significantly alter how the Department of Energy (DOE) provides taxpayer-funded loan guarantees for new energy technologies, especially to costly nuclear power plants. Section 124(b) of the Senate bill (HR. 6) allows loan guarantees to be given to multiple projects to construct an existing nuclear power design; exempts DOE’s loan guarantee program from Sec 504(b) of the Federal Credit Reform Act of 1990 (FCRA) which allows DOE to write unlimited loan guarantees without Congressional oversight; and gives DOE unfettered access to the Incentives for Innovative Technologies Fund (EPACT 2005) without requiring appropriations or any fiscal year limitation. This provision, if adopted, would eliminate Congressional authority and the safeguards provided through the appropriations process regarding expenditures for these potentially risky projects and shift enormous financial risk from Wall Street banks to America’s taxpayers. The House-passed legislation on loan guarantees is different; it says that no eligible technology can be excluded from consideration from loan guarantees.

Because of the likelihood of delays and cost overruns in building new nuclear power plants, Wall Street banks are unwilling to accept any financial risks for nuclear power loans. Six of the nation’s largest investment banks-Citigroup, Credit Suisse, Goldman Sachs, Lehman Brothers, Merrill Lynch, and Morgan Stanley- recently told the DOE, “We believe these risks, combined with the higher capital costs and longer construction schedules of nuclear plants as compared to other generation facilities, will make lenders unwilling at present to extend long-term credit.” Our briefing panel will discuss whether the loan guarantee provisions constitute a significant taxpayer liability and/or poor governance. Speakers include:

• Peter Bradford, President, Bradford Brook Associates; former Chair, New York State Public Service Commission and Maine Public Utilities Commission; and former Commissioner, U.S. Nuclear Regulatory Commission
• Jerry Taylor, Senior Fellow, Cato Institute
• Jim Harding, CEO, Harding Consulting
• US Government Accountability Office (GAO)

Not only is the cost to the taxpayers potentially very high, so is the risk. The Congressional Budget Office has said there is a good chance that the DOE will underestimate the costs of administering these loans and that more than 50 percent of new reactor projects will default on their loan repayments, leaving taxpayers at risk. U.S. taxpayers will be fully liable for any potential shortfalls. The nuclear industry ask is $25 billion for FY 2008 and more than that in FY 2009-more than $50 billion in two years. According to the Congressional Research Service, this is more than the $49.7 billion spent by the DOE for all nuclear power R&D in the 30 years from 1973-2003. This is also well over the Administration’s target of $4 billion in loan guarantees for nuclear and coal for FY 2008.

This briefing is open to the public and no reservations are required.

On October 30, The Hamilton Project at Brookings will host a two-part forum on mitigating climate change through market mechanisms and new technologies. In addition to the release of a new Hamilton Project strategy paper, the forum will highlight two new discussion papers on how to best design market mechanisms to reduce greenhouse gas emissions and will include proposals to expand — and possibly restructure — the federal research and development program to better promote the development of new greenhouse gas reducing technologies.

Former U.S. Treasury Secretary Robert E. Rubin and Hamilton Project Director Jason Furman, also a Brookings senior fellow, will open the event with a special award presentation, followed with opening remarks by former U.S. Treasury Secretary Lawrence H. Summers on economic approaches to energy security and climate change—the subject of the new strategy paper.

The new Hamilton Project strategy paper argues that the best way to address climate change is to give the private sector the right incentives to undertake emissions reductions. At the same time, the strategy calls for policies to protect low- and middle-income families from the consequences of higher energy prices.

The two new discussion papers will feature alternate views on how to best harness market forces to protect the environment. Gilbert E. Metcalf of Tufts University will discuss his proposal for a carbon tax and Robert N. Stavins of Harvard University will present his proposal for a cap-and-trade system. John Deutch of the Massachusetts Institute of Technology and John Podesta of the Center for American Progress will also discuss their recent proposal for a new federal research and development strategy, and Richard Newell of Duke University and Resources for the Future will share his ideas for creating science and technology policies that would enable new technologies to work effectively.

Welcome and Special Presentation

• Robert E. Rubin, Citigroup Inc. and Jason Furman, The Hamilton Project

An Economic Approach to Energy Security and Climate Change

• Lawrence H. Summers, Harvard University

Panel One

Creating a Green Market: How to Best Price Carbon

• Moderator: Sebastian Mallaby, Council on Foreign Relations
• Gilbert E. Metcalf, Tufts University
• Robert N. Stavins, Harvard University
• Jason Furman
• Kathleen McGinty, Pennsylvania Department of Environmental Protection

Panel Two

Warming up to New Technologies: Innovating Our Way To a Stable Climate

• Moderator: Roger C. Altman, Evercore Partners
• John Deutch, Massachusetts Institute of Technology
• John Podesta, Center for American Progress
• Richard Newell, Duke University
• Kelly Sims Gallagher, Harvard University
• David Sandalow, Brookings Institution

Hyatt Regency Regency Ballroom 400 New Jersey Avenue, NW Washington, DC

Last week the Union of Concerned Scientists released a new version of “Cashing In on Clean Energy”, judging the economic and environmental effects of a 15% renewable electricity standard (RES) by 2020 (aka renewable portfolio standard (RPS)), the standard called for in HR 3221, the House energy bill. [The Senate version did not include the Bingaman amendment of the same standard, and the provision is at the negotiating table; the initial UCS study looked at a 20% by 2020 standard; the 1Sky/Step It Up campaign calls for 20% by 2015.]

Using an Energy Information Administration (EIA) model, The UCS found the following:

• Consumer savings would equal $13 billion to $18.1 billion in lower electricity and natural gas bills by 2020 (growing to $27.7 billion to $31.8 billion by 2030 if the standard does not increase)
• Clean, renewable energy capacity would increase between 3.6 and 4.5 times over 2005 levels
• Reductions in global warming pollution equal to taking between 13.7 and 20.6 million cars off the road

The ranges are generated for lower and higher RES scenarios, depending on implementation choices:

Under our “lower renewable energy case”: (1) all states opt into a provision that allows electric service providers to use energy efficiency to meet up to 27 percent of their annual targets, and (2) additional renewable energy generation from electric power providers having to meet higher targets under state standards is eligible. Under the “higher renewable energy case”: (1) states with renewable standards that are higher than the federal targets (there are 18) do not opt into the energy efficiency provision, and (2) additional renewable energy generation used to meet state standards is retired and not eligible for use under the national standard.

Senator John Kerry will speak to the Council on Foreign Relations on Monday. His address, “After Kyoto, Eyes on Bali: Global Climate Change and American Leadership,” will focus on the security risks of global climate change and the way forward as the United States approaches the next round of global climate change talks in Bali in December. Sen. Kerry and Sen. Boxer are leading the Senate delegation to this next round of international discussions.

Council on Foreign Relations 58 East 68th Street New York, NY 10021

In a story reported by Associated Press (see Washington Post, ED, WattHead, CQ), Barbara Boxer revealed that CDC director Julie Gerberding’s written testimony (uncensored version) at Tuesday’s EPW hearing on global warming impacts on health was dramatically cut by the White House’s Office of Management and Budget after questions were raised by John H. Marburger III, director of the Office of Science and Technology Policy.

Six of the deleted pages detailed how global warming might affect Americans and they included a section with the title, “Climate Change is a Public Concern.”

On Wednesday, House Science Committee Chairman Bart Gordon and Investigations Subcommittee Chair Brad Miller sent a letter to Marburger formally requesting all documents related to the matter by next Monday:

We expect our government researchers and scientists to provide to both Congress and the public the full results of their taxpayer-supported work without the filter that those of opposing views might like to impose. Otherwise, we cannot have a full and free scientific debate.

Marburger released a statement today (from Andy Revkin’s NYT Dot Earth blog), claiming:

Those commentators have missed or ignored several nuanced but important differences between the I.P.C.C. report’s findings and the draft testimony.

Barbara Boxer responsed:

Dr. Marburger’s statement is a lame defense of the White House action to censor information the American people deserve to know about the dangers of global warming.

DeSmogBlog shows what was cut from the report, saying:

These were not minor edits the White House PR spin machine would like us to believe. The word-count for the CDC Director’s Senate testimony went from 3,107 to 1,500 after the White House got through with it.

Whole sections on health related effects to extreme weather, air pollution-related health effect, allergic diseases, water and food-borne infectious diseases, food and water scarcity and the long term impacts of chronic diseases and other health effects were completely wiped out of the testimony.

As discussed by Sean Siperstein at Warming Law, Washington governor Christine Gregoire announced last week that her state would join California when it files suit against the EPA for delay on the waiver petition to allow California and 11 other states to regulate CO2 emissions from automobiles (“clean car” regulations). This week the New York Times reported that New York and the other states intend to join the lawsuit as well.

California intended to file suit against the EPA on Monday, 181 days after its request for action following the U.S. Supreme Court decision in Massachusetts vs. EPA:

We provided 180-day notice on April 26, 2007, of our intent to sue under the Clean Air Act and Administrative Procedure Act, which provide mechanisms for compelling delayed agency action. However, we had frankly held out hope that this dispute would be resolved without the time and expense of a lengthy court battle. Given your comments in front of the Special Committee and the work of the U.S. Department of Transportation, a lawsuit on the 181st day now appears to be inevitable.

The filing of the lawsuit has been delayed by the raging wildfires in California.

As Lieberman-Warner has its first hearing, Sierra Club, Audobon, Physicians for Social Responsibility, U.S. PIRG released these seven principles for climate change legislation:

• Reform energy policy: New national energy policies should encourage efficiency, innovation, competition, and fairness. We need more aggressive energy efficiency policies for electricity and buildings, increased CAFE standards like those passed by the Senate, and the renewable electricity standard included in the House energy bill.
• Promote a clean energy future: Invest in energy efficiency and renewable energy to create new industries and good jobs here at home.
• Cap and cut carbon emissions to science-based levels: Science tells us in order to prevent the worst impacts of global warming we must start cutting global warming pollution by 2012, with reductions in total U.S. greenhouse gas emissions of at least 15 to 20 percent below current levels by 2020 and 80 percent by mid-century.
• Use all public assets for public benefit: The value of carbon permits should benefit the public – through auctions or other mechanisms – not generate windfalls for polluting industries. Free allocations, if any, must be limited to a short transition period.
• Ensure a just transition: Allowances should be used to help finance a just transition that keeps and creates jobs, reduces impacts on low-and moderate-income citizens, and mitigates harm to affected workers and communities.
• Provide aid to adapt to an altered climate: Allowances should be used to help distressed and impoverished people around the world, as well as wildlife and ecosystems in the face of global warming’s varied threats.
• Manage costs without breaking the cap. “Safety valves” and other devices that break the cap on emissions must not be allowed. Any offsets must be real, surplus, verifiable, permanent, and enforceable.

Featured Panelists:

• Carleton Brown CEO, Full Spectrum, LLC
• Majora Carter Executive Director, Sustainable South Bronx
• Sadhu Johnston Chief Environmental Officer, City of Chicago
• Van Jones, President and Founder, Ella Baker Center for Human Rights

Moderated by:

• Bracken Hendricks, Senior Fellow, Center for American Progress

A new wave of green investment is sweeping our nation’s cities, driven by policies from green building laws, to renewable energy standards, to the mayors’ climate pledges. Reorienting our antiquated urban and energy infrastructure around the platforms of efficiency, sustainability and reduced greenhouse gas emissions represents perhaps the preeminent engine for innovation, job creation, and economic productivity growth in coming decades. While federal policy remains in a stalemate, America’s cities are taking the lead in promoting a cleaner and more secure energy future – seizing the enormous opportunity afforded by the exploding “green” economic sector to rebuild communities, regional economies, and people’s lives.

With billions of dollars poised to flow into cities in the form of green investment, a movement is growing to ensure that the new green economy builds local businesses and creates good jobs for those who need them most. The question people are asking is: “who will get the green jobs of the future?” Around the country, cutting edge businesses, community activists, and forward-thinking elected officials are making good on the promise of green cities to expand economic opportunity and build career ladders into family-supporting green jobs with living wages.

This panel of national experts on “green collar jobs” and environmentally-oriented economic development comes at a critical moment for our city and our nation, as we grapple with how to leverage emerging policies on green building, clean energy, waterfront restoration, and climate change as an opportunity to reinvest in jobs, skills, and local businesses, even as we rebuild our neighborhoods and restore aging infrastructure. These experts will tell their concrete stories of how community groups, developers, and city governments are forging a better path forward into a green, equitable, and prosperous economy.

9:00am to 10:30am Admission is free.

A light breakfast will be served.

Center for American Progress 1333 H St. NW, 10th Floor Washington, DC 20005 Map & Directions

Nearest Metro: Blue/Orange Line to McPherson Square or Red Line to Metro Center

RSVP for this Event

For more information, please call 202.682.1611.

Biographies

Carleton Brown is founding partner and Chief Operating Officer of Full Spectrum of NY. He oversees the development and deployment of high performance and sustainable building technologies and strategies in Full Spectrum’s developments and insures that all projects meet appropriate performance and quality standards. Based on a belief that all communities regardless of race, ethnicity or income are entitled to a sustainable future, Mr. Brown and his team have become market leaders throughout the US in restructuring urban investment to create green, economically sustainable and equitable urban habits that value cultural diversity. Carlton Brown is a 1973 graduate of Princeton University – School of Architecture and Urban Planning. He has served on numerous business and governmental boards, and is currently a member of NYC Mayor Bloomberg’s Sustainability Advisory Board.

Majora Carter is connecting poverty alleviation & the environment in ways that benefit both concerns, demonstrating Clean-Tech solutions for our most persistent urban public health & global climate concerns. By creating positive physical environments, demonstrating cool and green roof technologies, working to replace an under-utilized expressway with local-value driven development, and the Bronx Environmental Stewardship Training program, she is creating a skilled green-collar workforce with personal & economic stakes in their urban environment. Majora was born, raised, and continues to live & work in the South Bronx, an environmentally challenged community. She founded Sustainable South Bronx in 2001 to fight for Environmental Justice through innovative, economically sustainable projects that are informed by community needs. She earned a 2005 MacArthur Fellowship for her vision, drive, and tenacity as an urban revitalization strategist; and in 2007 was named one of Newsweek’s “Who’s Next in 2007”, NY Post’s 50 most influential women in New York City, Vibe Magazine’s New Power Generation, and awarded the National Audubon Society’s Rachel Carson Award.

Sadhu Johnston is Chief Environmental Officer for the Mayor’s Office in the City of Chicago. As Mayor Richard M. Daley’s Chief Environmental Officer, Johnston is responsible for oversight of all City of Chicago environmental initiatives, helping to implement Mayor Daley’s commitment to green economic development. Prior to serving in this capacity, Johnston served as the Commissioner of the City of Chicago Department of Environment (DOE). He was appointed by Mayor Richard M. Daley in July of 2005 after serving as the Assistant to the Mayor for Green Initiatives. His responsibilities as commissioner included the overall management of the Department of the Environment, which administers programs to protect and restore Chicago’s natural resources, reduce waste, clean up brownfields, promote energy efficiency and reliability, educate the public about environmental issues, and enforce the City’s environmental protection laws. Prior to working for the City of Chicago, Sadhu served as the Executive Director of the Cleveland Green Building Coalition. Sadhu is quoted as saying “My role is to bring the department of environment into each department.”

Van Jones is working to combine solutions to America’s two biggest problems: social inequality and environmental destruction. Van co-founded the Ella Baker Center for Human Rights, which is now headquartered in Oakland, California. In June 2007, the City of Oakland adopted a proposal from the Ella Baker Center and the Oakland Apollo Alliance to create a “Green Jobs Corps” to train youth for eco-friendly “green-collar jobs.” Now the Center is working with the Business Alliance for Local Living Economies (BALLE) to create the country’s first-ever Green Enterprise Zone, to attract environmentally sound industry to Oakland. At the national level, Van and the Ella Baker Center helped to pass the Green Jobs Act of 2007, as Title 1 of the U.S. House energy package. When signed and authorized, this path-breaking, historic legislation will provide $125 million in funding to train 35,000 people a year in “green-collar jobs.” Van is also the founding president of “Green For All,” a national campaign for green-collar jobs and opportunities.

Bracken Hendricks is a Senior Fellow with the Center for American Progress where he works on the issues of climate change and energy independence, green jobs, infrastructure investment, and economic policy, with a focus on broadening progressive constituencies and message framing. Bracken was the founding Executive Director and is currently a National Steering Committee member of the Apollo Alliance for good jobs and energy independence, a coalition of labor, environmental, business and community leaders dedicated to changing the politics of energy independence. Hendricks served as a Consultant to the Office of the President of the AFL-CIO and as an Economic Analyst with the AFL-CIO Working for America Institute. He has been a member of Pennsylvania Governor Ed Rendell’s Energy Advisory Task Force, the Cornell University Eco-Industrial Round Table, and the Energy Future Coalition. He is also a philanthropic advisor to the Wallace Global Fund on matters of Civic Engagement and Democratic Participation. Hendricks serves on the board of Green HOME, a Washington DC based non-profit promoting green building in affordable housing.

New York Times:

When you are the wife of a movie mogul, you can do more than simply complain about the unusual weather that is wreaking havoc with your favorite surf break. Equipped with a Hollywood aura and impeccable social connections — not to mention sheaves of data-filled talking points — you can count on at least 20 minutes’ worth of respectful attention in Washington, with legislators willing to throw open their doors for activists who share the last names of some deep-pocketed donors.

Which is why a team of eco-wives from the entertainment industry descended on Washington last week, hoping to ride a bit of the momentum from Al Gore’s Nobel Peace Prize in a city that can be unusually receptive to Hollywood celebrity, even if it has been deadlocked over environmental legislation this year.

The Natural Resources Defense Council Action Forum was founded in 2000 by Laurie David and Elizabeth Wiatt, pulling in six other Hollywood wives by 2004. It’s being renamed to the Leadership Council.

Following the precedent of Massachusetts vs. EPA, Roderick L. Bremby, Secretary of the Kansas Department of Health and Environment, announced today that he is denying air quality permits to the Sunflower Electric Power Corporation for the construction of two 700-megawatt coal-fired electric generation plants.

I believe it would be irresponsible to ignore emerging information about the contribution of carbon dioxide and other greenhouse gases to climate change and the potential harm to our environment and health if we do nothing.

The Sunflower project was projected to release an estimated 11 million tons of carbon dioxide annually.

Update Read reports from Kansas City Star, Environmental News Service, Washington Post; commentary from the Wichita Eagle, Open Left, A Change in the Wind, Climate Change Action, Gristmill.

Timeline below the jump.