In The News (September 24)

 

Congress Clashes -- Again -- Over Energy, Renewable Tax Credits

The U.S. House on Tuesday scuffled over the nation's energy policy, an issue in which the sides sometimes have appeared to grow farther apart the longer the debate goes on.

However, late in the day majority Democrats in the House muscled through a massive bill that would allow for some expansion of offshore oil drilling, as well as extend federal tax credits for renewable energy considered vital to the industry. The 236-189 vote was largely along party lines, although there was some bipartisan crossover on both sides.

While the House opened hours of debate on the measure, there also appeared to be some movement among the leadership of the U.S. Senate on a separate measure that would also extend federal incentives for renewable energy, according to a statement from the top lawmakers on the Senate Finance Committee

The House bill has mostly gained attention because of Democrats' support for what The New York Times last week called a "fundamental shift" in energy policy, new offshore oil drilling. But the measure also would keep in place federal tax credits for renewable energy, including wind, solar and other forms, some for as many as eight years. Such an extension has been held up repeatedly in Congress.

Those tax incentives expire at the end of the year. Advocates for renewal, including the head of GE Energy, quoted by the Wall Street Journal's Environmental Capital (which separately put together a pretty good comparison of competing energy proposals in Washington),  have warned of dire consequences for the renewable energy industry if they lapse. At the same time, renewable energy groups, such as the Solar Energy Industry Association, and their allies in the environmental community, have touted studies showing, variously, that as many as 440,000 jobs in the solar sector, or two million jobs in overall clean energy technology could be created by investing in the industries, via tax breaks or other means, such as proceeds from carbon auctions.

Coincidentally, the Energy Information Administration, the federal government's statistical agency for energy, issued a report showing that nuclear power and "refined" coal (treated to reduce certain emissions) received far fatter subsidies in 2007 than did renewable energy.   

Nevertheless, it was the wrenching issue of drilling that operated as a lightning rod for criticism. The bill's provisions did not go far enough to satisfy pro-drilling Republicans, and  environmentalists were badly split on the subject.

The bill would allow new drilling at least 50 miles offshore, only with the permission of the affected coastal states, according to a description put forward by House Speaker Nancy Pelosi. It would also close tax breaks for big oil companies and address an ethics controversy that has erupted following an Interior Department inspector general's somewhat salacious report issued last week. The document cited "a culture of ethical failure" among a handful of officials of the Minerals Management Service, the primary federal agency overseeing offshore development. It even suggested some were literally in bed with their counterparts in the petroleum industry. 

      

In a statement Tuesday, Pelosi called the House bill a comprehensive approach to energy policy and she called on minority Republicans to help in its passage:

“Republicans must set aside their drill-only mentality and embrace the provisions of this legislation, which is balanced, which is comprehensive, which respects the needs of the consumer. It is imperative that we are energy independent, so we can enhance the prospect for a great future of renewables and creating good paying jobs."

But environmental groups, often the allies of the Democrats, found the bill tough to swallow. Even a supporter, the Sierra Club, issued a statement saying the compromise legislation "isn't perfect." Despite that, the statement, attributed to club official Athan Manuel, concluded:

"It's time to break big oil's chokehold on our energy policy. The energy package put forth in the House this week will go a long way towards doing that."                                                    

But the drilling provisions were too much for other groups to take. The Natural Resources Defense Council issued its own statement saying the House legislation "falls short of what Americans really need to meet our energy challenges." The Audubon Society was even harsher, saying its officials were "deeply disappointed" with the measure, which they said included "an unacceptable increase in dirty, dangerous offshore drilling" that would threaten the coastline.

Republican leaders, coming from a completely different perspective, were equally as critical of the bill. House Minority Leader John Boehner issued a statement ripping the Democrats' legislation for closing off what he said was 88 percent of the "best American oil resources" off the coasts, as well as blocking production in Alaska's North Slope and other areas. Said the Ohio Republican:

"Rather than an ‘all of the above’ approach, this bill is very nearly ‘none of the above.’ The American people have been waiting for months for this Democratic Congress to give them a meaningful, honest vote on more American energy production, but instead, Speaker Pelosi has served-up a legislative hoax and a debate rigged to once again defy their will."  

On the Senate side of the Capitol, Senate Finance Committee Chairman Max Baucus, D-Mont., and his Republican counterpart, Sen. Charles Grassley of Iowa, announced a bipartisan agreement to move a bill extending renewable energy tax incentives, as well as a number of other unrelated tax breaks. The statement said the Senate should vote this week on the measure, details of which had not yet been unveiled.   

--Dennis Pfaff of Thelen LLP

 

In The News (August 18)

In The News (July 21)

Curbing Greenhouse Emissions Good for the Planet, Good for People, Enviros Say

As California officials get ready to formally unveil a host of measures to curb greenhouse emissions, environmentalists are working to support the effort, promoting reports showing all the good the effort would do, and demonstrating public support.

The Natural Resources Defense Council on Tuesday weighed in with a study the group said showed that many of the strategies for reducing global warming would also combat other forms of air pollution, saving lives and reducing illnesses. That document followed by just a day the release of a new poll suggesting that people support energy policies to reduce the threat of climate change, even if prices go up.

All of this comes just before the California Air Resources Board is scheduled to hear recommendations from government officials on what the state should do to comply with the state's Global Warming Solutions Act, better known as AB 32. The 2006 law requires the state to reduce its emissions of heat-trapping gases to 1990 levels by 2020, about a 30 percent cut compared to what would otherwise happen. The state has also taken other steps, such as a governor's executive order that requires emissions to be reduced to 80 percent below 1990 levels by 2050 and legislation and rules to reduce emissions from cars and trucks.

The board on Thursday is to get its first overall look at the proposed blueprint or "scoping plan" for implementing the law. Everything from the types of light bulbs people use to the cost of electricity could be affected. 

The NRDC report, which was co-produced by Redefining Progress, said the measures being considered could prevent as many as 700 premature deaths and 18,000 cases of asthma and respiratory illnesses. It calculated a savings of up to $5 billion in health costs for year 2020 alone.

 

According to the group's analysis, the measures producing the biggest impact on global warming, including cleaner cars and trucks, energy efficiency, renewable energy and so-called smart growth policies, also help generate big cuts in pollutants such as nitrogen oxides, which contribute to smog, and fine particles that cause a variety of health problems. Preventing global warming could also produce its own health-related benefits, such as reducing mosquito and other insect-borne illnesses, deaths from extreme heat and allergies.

The authors of the report recommended that the health benefits and cost savings should be incorporated into the calculations of what it will cost to implement the emissions-cutting plans.

Those costs didn't appear to daunt respondents to the poll, which was commissioned by Next 10, a nonprofit research organization and conducted by Fairbank, Maslin, Maulin & Associates, a California polling firm. According to information released by Next 10, including a memo from the polling company and a slide presentation, 58 percent of all voters said they supported implementing the law even after they were warned it could lead to “increased costs for gas, electricity and some consumer goods.” Support was strongest among Democrats and independents, the poll found, but dropped to 37 percent for Republicans.

The results, which also indicated a large majority believes that global warming is a serious threat to the economy and quality of life, were seized upon by the Environmental Defense Fund, which issued a statement warning that politicians who support delaying the law risks voter wrath. Some Republicans in Sacramento, according to a recent report in the San Francisco Chronicle, have been warning about the economic and budget consequences of strict regulations.

And there's some support for the notion that high energy prices could in fact weaken support for environmental goals. Take, for instance, the recent Rasmussen poll showing that a big majority favors new drilling off the nation's shorelines, a cause recently taken up by presumptive Republican presidential candidate Sen. John McCain. Many of the respondents to the poll said they believed the offshore oil would reduce gasoline prices. Such drilling, of course, has been anathema to green groups for a long time. 

Meanwhile, there's also the matter of just what lifestyle and other changes, as well as pocketbook impacts, could be in the offing for a California where carbon and other greenhouse emissions are constrained. As Climate Law Update has reported, some of the options being considered by regulators could reach far into the state's stereotypical lifestyle.   

Just the other day, one of the key officials involved in the AB 32 planning effort reiterated those proposals (plus supplied summaries of comments already received) in a letter to Mary Nichols, the air board's chairwoman. Public comments on the plan, which is due to become final later this year, will be accepted until August 1.

(Photo: Smoggy Los Angeles from the Griffith Observatory, Wikipedia)

In Other News (June 17)