Article by Kyle Danish, Shelley Fidler, Andrea Campbell, Kevin Gallagher, Megan Ceronsky and Tomás Carbonell
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Commentary
Sens. Kerry and Lieberman announced that they would roll out the Kerry-Graham-Lieberman bill on May 12 accompanied by CEOs from a number of major companies . . . In a press release issued the same day, Sen. Graham re-affirmed his support for the ideas in the bill, but called for a "pause" in the process, stating: "I believe there could be more than 60 votes for this bipartisan concept in the future. But there are not nearly 60 votes today and I do not see them materializing until we deal with the uncertainty of the immigration debate and the consequences of the oil spill." . . . Carol Browner, Director of the White House Office of Climate Change and Energy Policy, said that the spill could be a driver for climate/energy legislation . . . Sens. Nelson, Lautenberg, and Rockefeller expressed concerns about any bill with provisions for expanded drilling.
Executive Branch
- EPA Sends Additional Reporting Rule Supplements to OMB. Two months after the Environmental Protection Agency (EPA) proposed to expand its rule for Mandatory Reporting of Greenhouse Gases to the oil and gas sector, carbon dioxide injection facilities, and fluorinated gas sources, the agency has submitted a separate final rule to the White House Office of Management and Budget (OMB) that would expand the reporting rule to new sectors. The new rules would require greenhouse gas reporting from industrial landfills, wastewater treatment facilities, underground coal mines, and magnesium production facilities. EPA's submission to OMB suggests that the new rules are close to being publicly released. EPA included these sectors in the reporting rule when the rule was initially proposed in March 2009; however, the agency refrained from finalizing these provisions in order to further consider public comments. According to EPA, the agency determined that it would be appropriate to issue the reporting rules for these sectors in final form, rather than re-propose them. In a related development, EPA also withdrew a direct final rule issued March 16 that would have implemented minor technical revisions to the general provisions of the reporting rule. EPA cited industry opposition to the changes in explaining its decision to withdraw this direct final rule.
- EPA and USDA Sign Interagency Agreement to Promote GHG Reduction on Farms. EPA and the U.S. Department of Agriculture (USDA) announced an interagency partnership to promote methane capture and biogas energy projects at livestock operations around the country. Under the agreement, the agencies would provide $3.9 million over the next five years to provide technical assistance, improve technical standards and guidance for biogas recovery, and assist livestock producers with pre-feasibility studies. According to EPA, about 8,000 farms in the United States are capable of installing biogas energy systems; if all of these farms were to do so, emission reductions of 34 million tons CO2-e per year could be achieved.
- Chu Stresses Importance of CCS at First Task Force Meeting. At the first meeting of an interagency task force focused on carbon capture and sequestration (CCS) technologies, Secretary of Energy Steven Chu said that CCS has "enormous" potential and that "nothing ranks as high as CCS [among the] tools that could be used to decrease carbon emissions." Chu noted that the Administration has invested $4 billion in CCS technologies thus far, matched by $7 billion in private sector contributions. Chu also emphasized the need to cultivate additional financing for CCS projects, arguing that China is outpacing the United States in the development of efficient coal-burning technology. The mission of the task force is to provide recommendations for deploying five to ten CCS demonstration projects by 2016, and eliminate barriers to cost-effective use of CCS by 2020.
Congress
- Kerry, Lieberman to Release Bill Draft on May 12th. Sens. John Kerry (D-MA) and Joseph Lieberman (I-CT) announced that they will release their climate legislation on May 12th—without the participation of Lindsey Graham (R-SC). Sen. Kerry announced that carbon controls would not apply to energy intensive manufacturing entities until 2016, and that the majority of the revenue generated by the bill would be sent back to households. Sen. Kerry also said that he expects the CEOs of Dow Chemical Co., DuPont, Florida Power & Light Co., and American Electric Power to attend the bill release. Sen. Lieberman told reporters that the offshore oil drilling provisions are still being discussed, in light of the Gulf of Mexico oil spill.
- Graham Seeks Pause on Climate Bill; Sees Himself as Possible 60th Vote. In a separate press release, Sen. Graham expressed appreciation for the work of Sens. Kerry and Lieberman, but said that the politics of immigration reform and the oil spill in the Gulf of Mexico made it "impossible" to move forward on the climate bill and recommended a pause to "reassess where we stand." Sen. Graham noted increased opposition to expanded offshore oil drilling from Democrats, but stated that he remained committed to including such provisions in order to increase U.S. energy independence. In an interview, Sen. Graham also said that he could see himself as the 60th vote for the bill if it came to the floor. The press release is available here: http://lgraham.senate.gov/public/index.cfm?FuseAction=PressRoom.PressReleases&ContentRecord_id=73236907-802a-23ad-4378-793da7514eb1.
- Nelson Promises to Filibuster Oil Drilling. Sen. Bill Nelson (D-FL) has promised to filibuster any legislation that would expand offshore oil drilling. Sen. Frank Lautenberg (D-NJ) said he would not support any energy/climate bill if it included provisions for expanded drilling that would enable an oil spill to reach the New Jersey coastline. Sen. Jay Rockefeller (D-WV) said it would be "very hard" for him to vote for legislation authorizing offshore drilling. Sen. Mary Landrieu (D-LA), a supporter of offshore drilling, told reporters she would be willing to abandon some of the drilling provisions reportedly in the Kerry-Graham-Lieberman draft, but that her vote for a climate bill was contingent on provisions expanding the share of drilling revenues that go to coastal states.
Judicial
- Recusal Forces Cancellation of Oral Arguments in Comer Rehearing. One of the judges of the United States Court of Appeals for the Fifth Circuit has recused himself or herself from the rehearing of Comer v. Murphy Oil, causing the court to lose the necessary quorum and forcing the cancellation of oral arguments scheduled for May 24th. The Comer case was brought by victims of Hurricane Katrina who alleged that the defendants, including several major energy companies, had aggravated the hurricane's destructive force by contributing to climate change. In October 2009, a three-judge panel reversed the district court's decision to dismiss the case as a nonjusticiable "political question"; the Fifth Circuit agreed to rehear the case en banc earlier this spring, vacating the panel's decision. Now that oral arguments have been canceled, it is unclear whether the three-judge panel's decision will be reinstated and whether the defendants will be able to appeal to the Supreme Court.
States and Cities
- Massachusetts Issues Revised GHG Policy On Treatment of GHGs From New Developments. The Massachusetts Executive Office of Energy & Environmental Affairs (EEA) issued a revised Greenhouse Gas Emission Policy & Protocol. The revised policy provides guidance on the treatment of GHG emissions from new development projects under the Massachusetts Environmental Policy Act. The revised policy requires a case-by-case determination of GHG emission performance standards and mitigation requirements for new projects, but refrains from requiring full life-cycle analysis of GHG emissions.
- Virginia Attorney General Brings Lawsuit Against Climate Researcher. Virginia Attorney General Ken Cuccinelli filed a civil suit against climatologist Michael Mann related to climate change research performed by Mann when he was at the University of Virginia. The suit, which accuses Mann of violating the Virginia Fraud Against Taxpayers Act while pursuing grants and awards from the state, is based on emails between climate change researchers at the University of East Anglia that were released to the public last year. Mr. Mann is a contributor to the assessment reports of the International Panel on Climate Change and is the author of the so-called "hockey stick" graph used in those reports, which shows a correlation between rising emissions and temperatures. Mr. Mann's current employer, the Pennsylvania State University, concluded in an initial review into the emails that there was no credible evidence that Mr. Mann directly or indirectly falsified data, but that it could not determine whether he had deviated from accepted practices. That review is ongoing. Cuccinelli also has brought lawsuits against the EPA over its GHG endangerment finding and the agency's rule establishing GHG emission standards for new motor vehicles.
Industry and NGOs
- Environmental Organizations Oppose Inclusion of Offshore Drilling in Senate Climate Bill. A letter signed by more than 70 environmental organizations and sent to all members of the U.S. Senate strongly opposes provisions expanding offshore oil exploration that are believed to be included in the climate change bill developed by Senators Kerry, Graham, and Lieberman. Referring to the recent explosion and continuing oil spill in the Gulf of Mexico, the letter calls offshore drilling an "inherently dangerous, risky, and dirty business," and says the incident "is proof positive that we must end our addiction to oil, enact a firm limit on carbon pollution, and ensure this type of disaster never happens again." Organizations signing the letter included the Sierra Club, the Natural Resources Defense Council, Greenpeace, and Friends of the Earth. The letter is available online here.
Studies and Reports
- EIA Finds Dramatic Drop in Energy-Related CO2 Emissions in 2009. According to the Energy Information Administration's (EIA) annual report on energy-related carbon dioxide (CO2) emissions in the US, the nation's energy sector reduced emissions by 7 percent in 2009. This dramatic decline followed a 3% reduction in energy-related carbon dioxide emissions in 2008. About one-third of the 2009 reduction in emissions was caused by the continuing economic recession, with the remaining emission reductions attributable to a combination of fuel switching (principally from coal to natural gas) and structural changes in the economy that diminished the size of energy-intensive industries. The report found "unprecedented" improvements in the carbon intensity of the electric power sector and the industrial sector, which saw their respective CO2 emissions per unit of output decline by 4% and 3% in 2009. The full report can be viewed at http://www.eia.doe.gov/oiaf/environment/emissions/carbon/
- Pew Report Recommends Creation of National Adaptation Program. A new report by the Pew Center on Global Climate Change recommends that the Obama Administration undertake more efforts to promote adaptation to the effects of climate change, noting that "there is growing recognition that significant climate change is unavoidable." In particular, the report recommends that President Barack Obama issue an executive order requiring the coordination of existing authorities across federal agencies, and directing agencies to take account of climate risks in their strategic planning. In addition, the report urges the establishment of a National Climate Service to coordinate federal research on adaptation. "By taking steps now to adapt to climate change," the report states, "we will be far better able to limit future damages and their associated costs." The report is available at http://www.pewclimate.org/docUploads/adaptation-federal-leadership.pdf.
International
- Ministers Hold Informal Meeting in Bonn, Germany. Environment ministers from forty nations held informal discussions on climate change in Bonn, Germany from May 2-4 in advance of a formal negotiation session later this year. The meeting, called the "Petersburg Dialogue," focused on addressing differences between developed and developing nations that led, in part, to the failure of last year's climate change negotiations in Copenhagen, Denmark. The formal climate change negotiation session will be held in Bonn from May 31-June 11.
- U.S., Canada and Mexico Propose HFC Reductions Under Montreal Protocol. The United States, Canada and Mexico jointly proposed an amendment to the Montreal Protocol that would require party countries to phase down their consumption and production of HFCs over the next several decades. The amendment would cap consumption and production beginning in 2014, with the initial cap being equal to each country's consumption and production during the period 2004-2006. The final cap would reach 85 percent below that baseline by 2033. The proposal almost exactly mirrors a previously defeated amendment offered by the three nations in September of last year. HFCs are a potent GHG with a global warming potential that is 12,000 times that of CO2.
- 500 EU Cities Pledge To Exceed Union's GHG Reduction Targets. 500 European Union cities pledged to exceed the EU's regional goal of reducing GHG emission 20 percent below 1990 levels by 2020. The cities made the commitment by signing the "Covenant of Mayors." The cities expect to meet the goal by cooperating on low-carbon strategies. The European Commission will provide several hundred million euros to the cities to fund energy efficiency programs in pursuit of the goal.
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