Article by Kyle W. Danish, Shelley N. Fidler, Andrea Hudson Campbell and Kevin M. Gallagher
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Commentary
What can we expect from President-elect Obama and the new Congress? Expect some near-term green energy legislation, including funding for renewables, green buildings, biofuels, and transmission. It's tempting to say that cap-and-trade legislation has fallen off the agenda, but don't be too sure. There are some bulwarks against delay: the specter of EPA regulation, the perceived patchwork of state and regional programs, and the desire to have something to say in Copenhagen next December . . . Another big change? Rep. Henry Waxman is challenging John Dingell's Chairmanship of the House Energy & Commerce Committee. Rep. Waxman is seen as more aggressive on environmental issues than Chairman Dingell, the most senior House member, who has strong ties to the Detroit-based auto industry. Dingell has had a distinguished career as a legislator earning a reputation as a tireless and tough investigator and negotiator – a consumer advocate, a critic of banking and financial interests, and an advocate for health care reform. He and Waxman famously teamed up to complete the last major rewrite of the Clean Air Act in 1990. Waxman, a serious legislator with many health and environment issues under his belt, has most recently developed a reputation for dogged oversight of the Bush Administration over eight years of probing investigations and is well connected with the California-based network that advises Speaker Nancy Pelosi. Both men have authored legislative proposals to address climate change. Dingell's recently released discussion draft (offered with Energy and Air Quality Subcommittee Chair Rick Boucher) attracted attention for suggesting some innovative solutions to some of the problems that blocked successful legislative resolution when the issue was considered by the Senate earlier this year. Waxman's openness to market-based approaches to GHG regulation is unclear.
Elections
- Obama Victory Sets Stage for Climate and Energy Policies. Sen. Barack Obama's (D-IL) win in Tuesday's election opens the door to a major change in perspective on energy and climate change issues in the next Administration. Dan Kammen, an energy advisor to the Obama campaign, said this week that cap-and-trade legislation will be a top priority for the Obama Administration, adding that plans are being made for a "listening tour" prior to Inauguration Day to build momentum for later action in Congress. Mr. Kammen also stated that President-elect Obama will review all Bush Administration environmental regulations and policies, including a possible re-visitation of the decision to deny California's request for a waiver to implement its vehicle GHG standards. In addition, President-elect Obama's environmental advisors have made clear that, while the President-elect prefers a Congressionally-enacted cap-and-trade program, he will start the process of EPA rulemaking if Congress does not take action within 18 months. Other major issues that are likely to receive a great deal of attention under the Obama Administration are renewable energy incentives, electric transmission, green buildings, and mass transit projects. Former EPA Administrator Carol Browner and former Deputy Interior Secretary David Hayes, both of whom served under President Clinton, are part of President-elect Obama's transition team on energy and environmental issues.
- Democrats Increase Majorities in Senate, House. Senate Democrats gained at least 6 seats, winning open seats in Virginia, Colorado and New Mexico. Democratic challengers also beat incumbents in New Hampshire, North Carolina and Oregon. Several races are still to be decided, including the race between Senator Norm Coleman (R-MN) and challenger Al Franken in Minnesota. In Georgia, incumbent Senator Saxby Chambliss (R-GA) did not win 50 percent of the vote as required by state law; a run-off election will be held on December 2. Senator Ted Stevens (R-AK) leads by 3,500 votes, but there are still thousands of absentee ballots to be counted. In the House, Democrats appear to have gained 20 seats, although a handful of House races also will be subject to recounts and/or run-offs. The increased majorities in both the House and Senate could lead to an increased likelihood of action in the next Congress on a variety of climate change and energy legislation including issues that were formerly deadlocked.
Congress
- Rep. Waxman Challenges Rep. Dingell's Chairmanship of Energy and Commerce Committee. Rep. Henry Waxman (D-CA) notified House Energy and Commerce Committee Chair John Dingell (D-MI) on November 5 that he intends to seek the Chairman's position in the next Congress. Rep. Waxman is the second most senior member of the Energy and Commerce Committee where he served under Dingell for 28 years and currently chairs the House Oversight and Government Reform Committee. House Democrats plan to hold organizational meetings later in the month and, if the rules that have traditionally governed the House apply, the House Steering and Policy Committee will be responsible for deciding on Rep. Waxman's bid for the Chairmanship. The loser of that contest would likely then have the option of bringing the issue before the full Democratic caucus in the House, which would vote by secret ballot.
- House Majority Leader Supports Extension of Special Global Warming Committee. House Majority Leader Steny Hoyer (D-MD) said this week that he supports renewal of the House Select Committee on Energy Independence and Global Warming during the next Congress. Speaker of the House Nancy Pelosi (D-CA) established the Select Committee two years ago and appointed Rep. Ed Markey (D-MA) as its chairman. Funding for the panel is set to expire at the end of 2008. Majority Leader Hoyer said that he expects the Select Committee to continue and to play a significant role in the development of climate change policy. The Select Committee does not have legislative authority, meaning that it cannot vote on legislation, but, under Chairman Markey, it held more than 50 hearings on climate change during the last two years.
States and Cities
- Court Strikes Down New York's Hybrid Taxi Mandate. The U.S. District Court for the Southern District of New York issued a preliminary injunction that will prevent New York City from enforcing minimum fuel efficiency standards for new taxis starting service in the city. In striking down the standards, Judge Paul Crotty agreed with arguments from the trade group Metropolitan Taxicab Board of Trade that federal fuel economy standards preempt state and local fuel economy standards. The New York standards, which are a major part of Mayor Michael Bloomberg's initiative to reduce the city's GHG emissions, would have required all new taxis entering the fleet beginning this fall to achieve at least 25 miles per gallon (mpg) and all new taxis entering service beginning October 2009 to achieve 30 mpg. In response to the decision, Mayor Bloomberg ordered the New York City Taxi and Limousine Commission to develop new regulations that would provide incentives for the adoption of hybrid vehicles and disincentives for the continued use of the low mileage Ford Crown Victorias that dominate the city's taxi fleet.
- California Utility Regulators Approve $3.6B for Utility Efficiency Program. The California Public Utilities Commission approved a plan to spend $1 billion of utility money and $2.6 million in matching state funds to implement an energy efficiency program for low-income housing. The California Alternate Rates for Energy initiative authorizes the state to issue the matching funds. The dual goals of the program are to reduce energy bills for low-income customers and to reduce the state's GHG emissions.
- California Voters Reject Renewable Energy Ballot Measures. California voters failed to pass two ballot measures aimed at promoting renewable energy and alternative energy vehicles. Proposition 7 would have increased the state's renewable portfolio standard from the current 20 percent by 2010 to 40 percent by 2020 and 50 percent by 2025. Proposition 10 would have authorized a bond issuance to raise $5 billion for incentives for alternative-fueled vehicles. The defeat of the two measures is attributed to significant opposition from two of the state's three major investor-owned utilities and the state's recent budget troubles.
Studies and Reports
- Researchers Call for Stringent CO2 Cuts to Avoid Catastrophic Climate Effects. A group of researchers led by NASA scientists James Hansen called on the federal government to pursue policies that will reduce atmospheric CO2 concentrations to 350 parts per million (ppm), well below the 450 ppm CO2 concentration long thought to be the necessary goal. Currently, atmospheric CO2 concentrations are believed to be approximately 385 ppm. The report, published in The Open Atmospheric Science Journal, suggested that lawmakers establish global CO2 prices designed to eliminate all traditional coal-fired utilities without use of carbon capture and sequestration technology. The article can be downloaded at: http://www.bentham.org/open/toascj/.
Industry
- Industry and Investor Groups Call for Energy and Economy to Become Top Priorities for Obama Administration. In a letter to President-elect Obama, the National Association of Manufacturers (NAM) called for his support of incentives for coal-based energy production and for deployment of carbon capture and sequestration technologies, as well as domestic oil shale production. The group opposed alternative energy mandates. Also this week, the U.S. Chamber of Commerce called on the incoming Administration to support economic stimulus measures that would support the auto, housing, trade, and infrastructure industries. The green investor group Ceres sent President-elect Obama a letter calling for legislation to reduce GHG emissions by 25 percent below 1990 levels by 2020 and 80 percent below 1990 levels by 2050, as well as a 20 percent renewable energy mandate by 2020.
- Arkansas Approves Permit for AEP Coal-Fired Facility. The Arkansas Department of Environmental Quality issued a permit for American Electric Power (AEP) to build a 600-megawatt coal-fired power plant in the state. The facility will use ultra-supercritical coal generation technology, which will improve efficiency and reduce emissions relative to a conventional coal-fired power plant. The site includes a location for later installation of carbon capture technology. The $1.5 billion facility is expected to begin operation by late 2012.
International
- India Argues For Steeper GHG Cuts for Developed Nations, Reaffirms Rejection of an Absolute Target. India submitted to the United Nations climate change secretariat a proposal for the successor treaty to the Kyoto Protocol that calls on developed nations to take on more stringent mid-term GHG emissions targets than those currently proposed. Current proposals would require developed nations to reduce emissions by 25-40 percent from 1990 levels by 2020, but India argues that those levels are not sufficient to achieve the emission reductions recommended by the United Nations Intergovernmental Panel on Climate Change. The Indian proposal also reaffirmed the nation's rejection of mandatory targets for developing nations, suggesting that the most equitable solution would be emission targets based on per capita GHG emissions. A climate regime based on per capita emissions would require significant reductions from developed nations, while permitting continued emissions growth from heavily-populated developing nations such as India and China.
- Canadian Officials Call for U.S.-Canada Climate Change Pact. In the wake of the U.S. Presidential election, Canadian Prime Minister Stephen Harper, along with a number of his ministers, proposed a U.S.-Canadian climate change pact. Prime Minister Harper's Conservative government also recently proposed the creation of a North America-wide GHG program that would include the U.S., Canada and Mexico. The proposed climate pact would seek to create common mechanisms for addressing GHG emissions, and would likely include a cap-and-trade program and technology development initiatives.
- Poland Backs off Fight Against Full Auctioning in Third Phase of EU ETS. Facing diminishing chances of prevailing in its attempts to prevent the auctioning of all allowances during the third phase of the European Union Emission Trading Scheme (ETS), Poland has turned its attention to affecting the rules for the third phase in other areas. Poland, which opposes full auctioning because of the country's heavy reliance on coal, has submitted a proposal seeking to impose price limits on emission allowances and to provide incentives for low-carbon technology deployment.
- UK, Qatar Sign MOU to Develop Low-Carbon Technologies. The United Kingdom (UK) and Qatar signed a Memorandum of Understanding (MOU) under which the two countries will partner to develop low-carbon technologies, such as wind and solar power. The partnership will involve cooperation between the UK's government-created Carbon Trust and the Qatar Investment Authority (QIA). As part of the partnership, the two countries will create a $400 million "Qatar-UK Clean Technology Investment Fund" that will invest in clean energy businesses located primarily in the UK.
- Mexico Passes Energy Reform Package Aimed at Reducing GHG Emissions. Both houses of the Mexican Congress passed an energy sector reform package that is expected to reduce the nation's GHG emissions. The reform package will combat GHG emissions by promoting the development of renewable energy sources, establishing a variety of energy efficiency and conservation programs, creating a national commission on energy efficiency, and driving the development of clean fuels. Mexico, the world's 13th largest GHG emitter, has voluntarily committed to reduce its annual GHG emissions by 126 million tons and is considering whether to implement mandatory GHG targets next year.
- Finland Announces Long-Term Climate Strategy. The Finnish government approved a long-term strategy for national climate change and energy policy. The strategy will cap energy consumption for 2020 at approximately current levels, promote the development of renewable energy resources, increase energy efficiency, and provide increased funding for climate change programs.
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