Memo to Senator Murkowski: Legislate for Logical Solution
Sen. Lisa Murkowski (R-Alaska) has a point. There are many, if not a vast majority of policymakers, who agree with the senator that reducing greenhouse gas emissions is best left to thoughtful Congressional legislation, not EPA regulation under the Clean Air Act. Thus her looming threats to introduce amendments or resolutions or other procedural maneuverings to “take a time out,” slowing down EPA rulemaking procedures aimed at addressing climate change.
But failing to seize her moment in the spotlight and put forward a specific legislative solution is where her logic falls apart and observers note the senator’s ear to certain greenhouse-gas-intensive industries that oppose action on climate change. This leaves me to believe that if we take climate change seriously, then perhaps EPA action is in fact better than no action at all.
Sen. Murkowski says that she doesn’t want a “gun to the Senate’s head” and claims that choosing between Waxman-Markey or Kerry-Boxer bills and EPA regulation is a “false choice.” While she acknowledges the science of climate change and notes the impacts in Alaska, the senator’s stated intent is to ensure that EPA regulations don’t come into place prior to Congress finishing its deliberations because she fears significant economic hardship from an EPA approach to the climate challenge.
The senator emphasizes that Congress must pass a bill to reduce greenhouse gas emissions — she’s on record as being in favor of passing legislation to reduce emissions. Her position that the Senate needs to pass legislation based on sound policy that takes into account environmental integrity, economic impacts and job creation is absolutely appropriate.
What is lacking, however, from Sen. Murkowski’s foray into the fire, are a sense of urgency and a positive solution. Urgency is a scientific and economic necessity. Peer-reviewed science notes that the Intergovernmental Panel on Climate Change’s worst-case scenario forecasts are increasingly likely without immediate action, which is why so many are eager to see the EPA move forward.
The Senate is tied up in its predictably partisan politics all with an eye toward mid-term elections. Meanwhile, EPA is following its mandate and the law, and is trying to urgently tackle the problem. As logical as Sen. Murkowski may be in her desire to find a congressional solution to climate change, so is EPA Administrator Lisa Jackson in her intent to urgently solve a problem that economist Sir Nicholas Stern has called “the greatest market failure the world has ever seen.”
The senator from Alaska has made her point and has everyone’s attention. But now is the moment for real leadership and putting forward a concise legislative option that places a science-based cap on greenhouse gas emissions. Otherwise, Sen. Murkowski is open to critiques of just playing politics.
Washington
Published in The Hill (January 19, 2010).
Peter Gray Discusses Copenhagen & US Climate Change Legislation on Fox Business Network
During a December 15 interview with Fox Business Network, Peter Gray discusses what has been happening in Copenhagen and how the talks there could change the way companies do business in the US.
To watch the interview, please visit: http://video.mww.com/ftpupload/FTPinbox/15/FoxBiz-Gray-12-15-09.wmv.
Peter Gray Discusses the Climate Change Conference in Copenhagen on Bloomberg Radio
During the December 15 edition of The Hayes Advantage on Bloomberg Radio, Peter Gray discusses the Climate Change conference in Copenhagen as well as the chances of passage of a climate change bill.
To listen to the interview, please visit: http://video.mww.com/ftpupload/FTPinbox/15/Gray-Bloomberg.mp3.
Climategate: Tempest in a Teapot -- or a Tea Bagger Special?
It has taken decades of effort, the investment of tens of millions in research dollars, and the dedication of some of the brightest minds around the globe to collect, sift through and analyze the scientific evidence, which establishes a link between the change in the climate and man-made emissions of greenhouse gases. But in an age driven by the 24-hour news cycle, declining standards of journalism and point-counterpoint segments in which the truth is “debated,” a single email stolen from the files of a little-known but highly respected group of climate researchers places all of that work in jeopardy.
It has been three weeks since we first learned that hackers stole over 1,000 emails from the files of the University of East Anglia’s Climate Research Center (CRU). In the days immediately following the theft, global warming doubters raced to media outlets and began crowing that the emails demonstrate the existence of a global conspiracy among politically motivated climate scientists to push their agenda. Sen. James Inhofe (R-Okla.) announced he would probe whether the U.N.'s Intergovernmental Panel on Climate Change “cooked the science to make this thing look as if the science was settled, when all the time of course we knew it was not.” Even Sarah Palin got into the act, penning an editorial for the Washington Post in which she calls upon President Obama to reconsider attending the Copenhagen Conference of the Parties, given that “leading climate scientists deliberately destroyed records to block information requests, manipulated data to ‘hide the decline’ in global temperatures, and conspired to silence the critics of man-made global warming.”
Based on these sound bites from Palin, Inhofe and other climate change doubters, you probably assume that the massive trove of stolen emails must contain at least one smoking gun, one unambiguous email in which a climate change expert admits “we got it all wrong.” Au contraire.
Climate change doubters point to a 1999 email from CRU scientist Phil Jones in which he states the following regarding his attempt to reconcile data in his own study with data from a Penn State study by Michael Mann, published in Nature: “I've just completed Mike’s Nature trick of adding in the real temps to each series for the last 20 years and from 1961 for Keith's to hide the decline.” The “decline” Jones is referring to is that if one uses tree-ring density to estimate temperatures, the resulting data inexplicably show that temperatures have declined since the 1960s, when in fact we know from meteorological data that temperatures have increased. Climate change doubters take Jones’ poor word choices (“trick” and “hide”) out of context and claim that he was engaged in “cooking the science.” According to Michael Mann, however, the statistical “trick” referred to is replacing the tree ring-based temperature estimates with actual data on ambient air temperatures -- an analytical technique that has been openly discussed in scientific journals for over a decade.
Climate change doubters also point to an email exchange between CRU's Jones and Penn State’s Mann in which they vow to keep two anti-climate change papers out of an assessment by the Intergovernmental Panel on Climate Change and another email exchange in which they consider urging colleagues not to submit papers to a journal that publishes submissions from climate change skeptics. (Apparently, they contemplated boycotting the offending journal because it had published a study later determined to have been underwritten by the American Petroleum Institute.) Certainly, such attempts at scientific censorship are unwise. That said, it hardly amounts to evidence of a global climate change conspiracy.
Indeed, nothing in the stolen emails undermines the evidence that the climate is changing and that the change is due in part to man-made GHG emissions. The evidence demonstrating that CO2 levels have risen since the start of the industrial revolution and that man is the source of increasing CO2 levels over that period can no longer be seriously disputed. The various impacts of that change in atmospheric CO2 levels are well-documented and need not be repeated here. But as to the public’s belief in climate change and man’s contribution to that change -- that is waning. The polls make this clear: according to a recent poll, over half of Americans believe that there remains significant disagreement among scientists over global warming. Tellingly, 84% of Americans believe it is likely that some scientists have falsified data to support their theories on global warming. Clearly, the climate change doubters’ promotion of Climategate is having an effect -- one which may well doom the chances of passing climate change legislation in 2010. I sincerely hope that the media begins to expose the truth behind Climategate: it is a tempest in the teapot, exploited by tea baggers and those who stand to lose business, not evidence of a conspiracy or evidence that global warming isn’t occurring.
COP-15 Day 4: Reaching a Political Agreement and the Role of the UN
'Political agreement' was the word of the day in late briefings yesterday and continuing today. Its definition varies from country to country.
For the United States, it means an agreement that President Obama can sign when he comes next week with the full expectation that the United States will honor its terms even without Congressional action. While the preference is for adoption by the Congress by simple majority votes as legislation (as opposed to ratification by the Senate as a treaty with a 2/3 vote), Parties have been assured that President Obama can implement his commitments without Congressional action.
A serious and growing issue remains the role of the UN in monitoring, verifying, and enforcing emissions reductions commitments. African countries have taken a high profile and vocal role in opposing early proposals for an supervising entity outside of the UN. So far, the United States remains firm on its pre-conference position regarding a newly created structure outside of the UN for monitoring and enforcement. Most regard this issue as one of the most significant impediments to a political agreement at COP-15.
The Fab 5: Defining Success in Copenhagen
With 5,000 delegates, 6,000 media and 16,000 non-governmental organizations descending upon Copenhagen for the UN Conference of the Parties on Climate Change, there is no shortage of opinion and spin on what “success” looks like. But through all the talk, 5 key elements are necessary for an agreement that will further efforts to address climate change.
1. Aggressive Emission Reduction Goals
Developed countries will need to agree upon on ambitious greenhouse gas (GHG) emission reduction targets. The IPCC suggests that this implies a mid-term goal for 25-40 percent GHG cuts by 2020 based on a 1990 level baseline and 80 percent by 2050. Collective action will need to be supplemented by individual national commitments such as those put forward by the United States and United Kingdom in recent days. Likewise, developing countries will need to agree to taking GHG mitigation actions that are appropriate in their national development contexts ranging from shifting to low carbon power strategies to reducing rates of deforestation. Some observers see a collective goal that recognizes the scientific view that the increase in global average temperature above pre-industrial levels should not exceed two degrees Celsius as a more politically feasible outcome than the target cuts noted above.
2. Climate Finance Commitments
Countries need to agree upon climate finance mechanisms that will provide “fast start” funds of approximately $10-$12 to developing countries from 2010 to 2012. This is viewed as a down payment of good faith towards future actions by developing countries. The architecture for longer-term, predictable funding for climate adaptation and mitigation – including forestry and technology support will also need to be put into place. However, it is less feasible for specific dollar amounts, governance regimes and sources of funding to be agreed upon in Copenhagen with respect to longer-term climate finance.
3. Accountability for Commitments
Measurable, Reportable and Verifiable (MRV) national commitments and actions agreed at Copenhagen are a lynchpin of success. If a global agreement will be more than rhetoric, there simply needs to be a standardized methodology to “trust but verify” with a view to equitable burden sharing in the transformation to a global low carbon economy. Countries need to establish common international methodologies to track and report emissions and subsequent measures to reduce emissions.
4. Signals for a Global Carbon Market
Private capital needs to see signals that a process of linking nations in post-Kyoto Protocol market-mechanism efforts that reduce emissions will continue. In order for private capital to continue the evolution of a liquid, cost-effective mitigation market begun under the Clean Development Mechanism and Emissions Trading systems, political signals of this approach must be provided in Copenhagen. This will allow the evolution of so-called flexible mechanisms towards at scale reductions in the most cost-effective manner possible.
5. Political Agreement With a View to Legal Agreement
There is broad consensus that a political agreement is the likely outcome from Copenhagen but ultimately enforcement requires a legal agreement. Towards this goal, it is anticipated the countries will politically commit to finalizing a more legally binding agreement in 2010. In the US context, this approach allows the Obama Administration to sequence working collaboratively with the Senate on a final energy and climate legislative package prior to promising what cannot be delivered at the international level.
Carbon-Reduction Strategies Likely To Create Friction In Copenhagen
Posted on CNBC.com
One of the biggest obstacles to achieving a global climate change agreement is a fundamental difference between how developed and developing economies would set carbon-emission goals. The big developed economies prefer absolute emissions targets while emerging markets want “carbon intensity” cuts based on the rate of a country’s GDP growth.
Featuring insights from Jon Sohn ...
"We have a lot of exciting technologies and companies that can fill the gaps,” says Jon Sohn, a climate change expert with DC office of law firm McKenna Long & Aldridge LLP. "We can be ahead of the curve and see this coming or dig in our heels."
To read the full article, please visit http://www.cnbc.com/id/34312894.
Economy-Wide Cap-and-Trade Doubtful; Narrower Bill May Fare Better
Climate change policy experts speaking on the first day of the "Carbon Economy" summit in Washington, DC, sponsored by The Economist, expressed skepticism over the chances of passing an economy-wide cap-and-trade bill in 2010.
Eileen Claussen, President of the Pew Center on Global Climate Change, observed that there is a "very narrow window" of time in the Spring of 2010 - before attention shifts to the mid-term elections - for the Senate to pass a climate change bill, work out differences in a conference committee and then get both Houses to approve the compromise measure.
Jason Grumet, Founder and President of the National Commission on Energy Policy, concurred with Ms. Claussen's skepticism, stating that a fundamental lack of understanding of cap-and-trade among Senators, along with worries over its impact on an already flagging economy, further dim the prospects for an economy-wide cap-and-trade bill. Mr. Grumet believes the chances may be somewhat better to pass something less than economy-wide cap-and-trade legislation. For example, a bill which caps only the utility sector, imposes strengthened CAFE standards on transportation, and encourages energy-efficiency likely would fare better than the Kerry-Boxer bill or anything like it.
In addition to Ms. Claussen and Mr. Grumet, day one panelists included: James Rodgers, CEO of Duke Energy; Rick Duke, Assistant Secretary for Climate Change at the US Department of Energy; and Aimee Christensen, of Christiansen Global Strategies.
A Moving Climate Storm on the Gulf Coast. Plaintiffs Move Forward, While Senate Deliberates
When the fury of Hurricane Katrina ravaged the Gulf Coast, many saw this as a tipping point in US public perception towards the reality of climate change. Levees broke, people died, clean water was not available, valuable property flooded, buildings were left hazardous and roads were destroyed. As Chairman Edward Markey (D-MA), Select Committee on Energy Independence and Global Warming has stated, “Perhaps no weather disaster highlights our weakness to climate challenges than our inadequate response to Katrina, which still haunts us several years later.” Not coincidentally, President Obama took the opportunity in his recent trip to New Orleans to plead for bipartisan approaches to passing comprehensive energy and climate change legislation.
While the Senate continues to deliberate and debate, a growing class of people claiming harm from the impacts of climate change continue to take more decisive action. Last week the 5th Circuit of the US Court of Appeals ruled that residents of the Mississippi Gulf Coast, including property and land owners, have standing to pursue their complaint against US energy and chemical companies including Peabody Coal and Massey Energy for their contribution to greenhouse gas emissions and climate change which in turn contributed to the catastrophic wreck left in the wake of Hurricane Katrina. Comer v. Murphy Oil USA, et. al. The plaintiffs seek compensatory and punitive damages under Mississippi common law and constitutional provisions.
Importantly, the 5th Circuit overruled lower district court determinations that the plaintiffs’ claim was “non-justiciable” due to the defendants failure to demonstrate “any exclusive commitment of the issues in this case to a particular federal branch. Nor have they shown the absence of judicially discoverable or manageable standards with which to decide the case.” The 5th Circuit went further stating that,"(e)ven if Congress does eventually enact a federal comprehensive law concerning greenhouse gas emissions, it might very well preserve state common law remedies, as the Clean Water Act did."
The 5th Circuit decision, coupled with ongoing efforts by the EPA to regulate greenhouse gas emissions as pollutants under existing Clean Air Act authority, contributes to increased pressure for Senate action to provide a clear and certain roadmap for managing climate risks. Federal intent on the appropriateness of common law actions related to climate change will be closely monitored as rulemaking and legislative streams of work continue to develop.
Meanwhile back in Congress, Senators Landrieu (D-LA), Vitter (R-LA) Cochran (R-MS), and Vickers (R-MS) represent the residents of Mississippi and Louisiana harmed by Hurricane Katrina. They also represent many of the interests that are defendants in this case or other climate based lawsuits emerging. To date, all four Senators are firmly in the “no” camp when it comes to renewable energy portfolio standards and cap-and-trade legislation. Senator Cochran did support a 2007 sense of the Senate resolution for an international climate agreement. The same week the 5th Circuit decision came down, Senator Landrieu expressed guarded optimism for the new Graham-Kerry bipartisan partnership that seeks a climate package, and the Senator subsequently convened a natural gas caucus with a view to feeding policies into that effort.
A balanced, bipartisan approach from these four Senators would serve their constituencies and the lessons of Hurricane Katrina well.
CO2 Is Green
I was watching television Sunday night when a political ad comes on urging viewers to "contact their Senators today" to oppose Congressional efforts to regulate CO2. Having seen a number of these before, it barely registered - except when midway through the piece, the voice over states "In fact higher CO2 levels than we have today would help the Earth's ecosystem and support more plant and animal life." Wait a minute, is this one of those joke commercials from Saturday Night Live? Nope, it is the work of a new campaign by an interest group that goes by the name "CO2 Is Green." The group seeks to challenge the lies being pushed by those foolish climate scientists, those silly PhDs, who seem to believe that rising levels of atmospheric CO2 is causing climate change. If you peruse the "CO2isgreen.com" website, you will laugh and cry at the same time.
Here are a few gems from their "Science" web page:
- "CO2 is not a pollutant." In support of this assertion, the group claims: "As humans emit CO2 when we breathe, it is illogical to assert that CO2 is a direct health hazard." Nobody claims that CO2 is a direct health hazard; rather it is the propensity of CO2 and other greenhouse gases to absorb and emit infrared radiation -- the so-called greenhouse effect -- that is hazardous.
- "Eliminate CO2 and human life ceases to exist." This is of course true. Plants take in CO2 and respire oxygen, which is essential to human life. That said, nobody in Congress is trying to "eliminate" CO2. Rather, the goal of Congressional action is to lower the atmospheric concentration of CO2 and thereby reduce the heating of the planet caused by the greenhouse effect. (Duh!)
And who is behind "CO2 is Green"? Leighton Steward. No, Mr. Steward is not a meteorologist, nor climate scientist, nor is he even a long-time student of climate change. He has simply decided that he understands climatology better than those who have made the subject their life's work. According to a September 25, 2009 report in the Washington Post, Steward - a former oil industry executive - has joined forces with Corbin J. Robertson, Jr., a Houston-based owner of coal resources that lets other companies mine his property in exchange for royalties. Robertson and Steward have formed two interest groups, "Plants Need CO2" and "CO2 is Green," with Robertson providing about $1 million in funding.
You will search in vain for actual science as references for the many astounding quotes that litter CO2isgreen.com. Mostly, you will find cross-references to the companion website for "PlantsNeedCO2.com." Although the internet is filled with similarly baseless opinions of climate deniers, few have the resources to broadcast their hokum on network television. This stuff is going mainstream. I wonder what George Will thought when he saw the ad.
Climate Legislation and The Redskins
Its fall in Washington, DC and there are two things most have agreed upon this season: the Redskins football squad looks bad as do any hopes of the Senate passing climate legislation prior to UN negotiations in Copenhagen. While the Redskins offense continues to lack a passing game, a new playbook focused on corporate leadership and bipartisanship may be turning things around in the Senate. Yet pessimism remains as some observers believe one key political gap is a quarterback in the White House who will engage and make it a legislative priority.
First we have seen a string of corporate defections from the US Chamber of Commerce over their negative stance on mandatory GHG reductions. Notable departures from the Chamber have included utilities PG & E, PNM, Exelon and computer giant Apple, Inc. all of whom favor cap-and-trade legislation.
Next came a wave of corporate advocacy through the “We Can Lead” coalition. On October 6th and 7th hundreds of business leaders including technology innovators, investors, manufacturers and energy providers descended upon the halls of Congress demanding action. Participants included Duke Energy, Starbucks, Applied Materials and Nike.
It is no coincidence that in the wake of these efforts, Senators Lindsey Graham (R-South Carolina) and John Kerry (D-Massachusetts) announced a new bipartisan effort to pass climate legislation ideally before Copenhagen. Together they authored an op-ed in the New York Times warning that business needs a market-based system that will create millions of jobs in the US rather than EPA command and control style regulation. In short, it makes business sense for the Senate to act now.
Nobody expects the Redskins to turn it around because owner Dan Snyder is in charge, the offensive line is weak and fans have lost faith. Yet, if there is any hope for the US Government to throw the hail mary pass on climate change legislation before Copenhagen, it definitely won't happen unless President Obama comes off the bench and leads us to victory.
Making the Business Case for International Funding in US Climate Legislation
As the Senate deliberates on climate change legislation this Fall, strong provisions related to international cooperation and investment in greenhouse gas (GHG) mitigation and adaptation are necessary. Recent news reports show that various fossil fuel intensive industries are ramping up for even greater free allowance allocations to meet their emerging climate risk obligations. It is imperative that the slice of the allowance set aside and auction revenue pie, marked for international finance and embedded in the Waxman-Markey bill from the House, is not lost in this feeding frenzy. The Waxman-Markey approach strategically avoids the annual appropriations process for financing climate mitigation efforts abroad and creates the beginnings of self-sustaining finance mechanisms. State Department Climate Envoy Todd Stern testified on the importance of these provisions in a September 10th hearing before the House Select Committee on Energy Independence and Global Warming.
The US Business Case:
First, these international investment provisions will support substantial exports of US clean energy and low carbon technologies. The US cannot sit on the sidelines as Europe, Japan, Australia and others pursue low carbon export and investment opportunities.
Second, international investment empower the US Government and companies to cooperate on policy and technology strategies with key developing countries that can lead to concrete sectoral and economy-wide commitments through financial incentives.
Third, international investment provisions in domestic climate legislation, linked to emerging global carbon finance markets, provide an important cost-containment tool for companies required to reduce their emissions in the United States.
Fourth, findings from leaders in the national defense community suggest that addressing climate change globally is a matter of national security. Increased impacts such as drought, flooding and sea level rise will have an increasing impact on political stability of vital US interests. US companies in partnership with the US Government can enhance mitigation and adaptation efforts globally which benefits our democratic ideals.
Finally, US businesses require a global response to climate change mitigation to protect their own company supply chains from interruption due to climate impacts and adaptation issues.
Accordingly, the following key principles for finance assistance must be preserved and fully funded in emerging legislation:
- Robust provisions for valuing standing forests and other sector-based offsets. Other offset provisions can be shaped to build capacity for sectoral mitigation commitments by developing countries.
- Bilateral and multilateral mechanisms, backed by US financial commitments that are substantial and sustainable, to accelerate clean energy technology deployment. These provisions can significantly reduce investment risk for US companies and leverage the massive private sector investment flows required to transfer technology and address global GHG mitigation and adaptation requirements. A blend of public risk reduction mechanisms and funds coupled with private sector capital is an essential part of any meaningful strategy to open international export markets for US technologies and address climate change.
- Robust assistance to the most vulnerable populations for adaptation to climate change, with a view to reducing the greatest impacts of climate change. Addressing these concerns will require significant technology and infrastructure support from US companies.
These issues will be under negotiation at the upcoming G-20 in Pittsburgh as well.
Health Care Legislation > Climate Change Legislation > Copenhagen Agreement on Emission Limits
President Obama's address on health care reform to joint session of Congress, as well as the rancorous reactions by some Republicans, leads me to the following inescapable conclusion: the chances of Congress passing climate change legislation in 2009 just got a lot dimmer. The President has essentially thrown down the gauntlet and staked his reputation -- indeed perhaps even his presidency -- on succeeding in passing comprehensive health care reform. We can expect a full court press by the White House to get a bill passed and signed into law. And given the obvious level of rancor and opposition, you can expect this to be an all-out brawl. That means that few resources will be diverted from this battle to pass climate change legislation. Senate leaders have already laid the groundwork for a hiatus on climate change legislation. Environment and Public Works Chairwoman Barbara Boxer (D-Calif.) had been slated to introduce the bill after returning from the August recess. In a joint statement with Foreign Relations Chairman John Kerry (D-Mass.), she said the bill is now expected “later in September.”
The senators cited several reasons why the bill is taking longer than expected, including the battle over health care legislation, which is expected to last well into the fall. Members of the Senate Finance Committee are deeply involved in health care talks but will also share jurisdiction over the climate change bill.
“Because of Senator Kennedy’s recent passing, Senator Kerry’s August hip surgery, and the intensive work on health care legislation particularly on the Finance Committee where Senator Kerry serves, Majority Leader Reid has agreed to provide some additional time to work on the final details of our bill, and to reach out to colleagues and important stakeholders,” the senators said.
Given that President Obama has now committed himself to getting health care passed this year, and the White House signaling financial regulation reform to be next in line for Congress after that, the earliest a floor vote on climate legislation could happen is November. In the interim, it remains to be seen how much prioritization towards that vote will be provided by Obama. Thus, rather than fail, it is quite likely the Obama administration will seek to have the debate put off until 2010.
In fact, as I've been writing this post, Inside EPA reports ("Senators Offer No Firm Plan For Passing Cap-And-Trade This Year")...
Senate leaders have set no firm deadline for committees to finish work on climate change legislation, Senate Environment & Public Works Committee Chairwoman Barbara Boxer (D-CA) said September 9, a revelation that comes amid increasing talk that the chamber may be unable or unwilling to act on a controversial cap-and-trade plan before the end of the year given the host of other competing concerns vying for lawmakers’ attention, such as health care and pending foreign policy concerns.
What does this mean for the December meeting of the Conference of Parties in Copenhagen? Everyone should focus on Plan B. Without a US commitment to reducing greenhouse gas emissions, it is difficult to imagine a scenario in which India and China would agree to their own nationally appropriate GHG reduction commitments. And without China and India, a global agreement is not possible. Thus, the delegations meeting in Copenhagen should quickly consider other approaches that might make meaningful inroads into climate change. For example, a framework for negotiating mid-term emission limits within various sectors could be an outcome of this round, coupled with broad agreements aimed at reducing deforestation, reducing emission of black carbon, and carbon sequestration via conversion of crop stubble and dying trees to biochar. These techniques -- which have been discussed at length in prior postings -- would do more to reverse climate change than even the strongest emission limits could achieve. (“Why we need fast regulatory actions to complement cuts in CO2 emissions,” Durwood Zaelke, April 21, 2009). They will be needed regardless of whether emission limits are adopted. I say focus on developing Plan B.
Swing Votes in the Senate on Climate Change
As the Senate prepares to consider energy and climate legislation this Fall, the vote counting begins again on cap & trade. Assuming a cap & trade bill moves forward, 60 votes are necessary for a procedural vote (cloture) to cut off debate on a motion to proceed on a floor vote. Reaching this filibuster proof 60 vote count threshold remains a steep hill to climb despite 59-60 Democratic votes in the Senate. Climate positions don’t fall along party lines. Further, the challenge has just grown harder with Senator Kennedy’s death and no replacement likely until January 2010.
Climate Change Insights takes a look at three swing Senate votes that are indicative of the political landscape and substantive policy issues in play. There are different accounts of how various Senators might vote but it is fair to say that the following 3 Senators are representative of the key issues under consideration: the level of ambition for greenhouse gas (GHG) reduction targets, industry specific allowances, protections and incentives, a priori limits on the price of carbon and pure politics.
Senator Evan Bayh (D-Indiana). Indiana is among the highest energy consumption per capita States and is responsible for approximately 5 percent of US annual GHG emissions. Almost all of Indiana’s electricity generation comes from coal. As one of the nation’s top corn-producing States, Indiana has significant ethanol production potential, and the state has immense wind energy opportunities. Energy and steel industries are among Mr. Bayh’s top campaign contributors and he is facing a tight re-election campaign in the fall of 2010. The BP Products refinery in Whiting has the largest processing capacity of any refinery outside of the Gulf Coast region. Senator Bayh is weighing these considerations deliberatively. A suite of cost-containment provisions for regulated industries, clean energy incentives for emerging technologies and international competitiveness protections that have direct benefit to Indiana are considerations, as are political prospects in a conservative State.
Senator George Voinovich (R-Ohio). Energy consumption in Ohio’s industrial sector ranks among the highest in the Nation. Ohioans are still haunted by a 2003 transmission failure that led to the largest blackout in North American history, affecting over 50 million people. Coal fuels about nine-tenths of net electricity generation in Ohio. Senator Voinovich is set to retire in 2010. On climate change, Voinovich has stated, “There is a lot of work to be done, but it’s still open…I think there is a possibility in getting something done that is meaningful.” In the past few years, Voinovich has introduced and supports energy bills that focus on incentives for clean energy technology deployment both domestically and internationally including the "Incentives-Based Climate Policy Act," and the “21st Century Energy Technology Deployment Act.” He is on record saying that there is “too much crap” in the House-passed “American Clean Energy Security Act” (Waxman-Markey), his main concern being the 2020 greenhouse reduction targets under the bill are too ambitious.
Ohio’s current unemployment rate (11.1%) is higher than the national average (9.7%) as of July 2009. There is significant angst in the State of losing jobs overseas due to issues such as lower labor and environmental standards. Accordingly, one can anticipate Voinovich desiring price controls on the cost of carbon and protections against overseas industries that don’t take sectoral or economy-wide carbon cap.
Senator Arlen Specter (D-PA). Pennsylvania ranks second in the Nation in nuclear power generating capacity, is a major coal production State and sells approximately 50 percent of its coal to other States. Pennsylvania is also the leading petroleum refining State in the Northeast. At an August meeting of Netroots Nation, Senator Specter hinted that he “expected” to vote for cloture on a climate bill and stated that he joined the Senate Environment & Public Works Committee after switching to the Democratic Party with a view to shaping the climate legislation and he “expects a strong bill.” In the past Specter co-sponsored with Sen. Jeff Bingaman, the “Low-Carbon Economy Act,” which had weaker GHG emission targets than Waxman-Markey and established so-called “automatic off ramps” allowing the US to weaken its targets if key developing countries don’t adopt their own caps.
Therein lies the conundrum of getting a robust climate change bill through the Senate and signed into law. The route to political success relies upon GHG targets that may not match the level of ambition required by science, a further expansion of allowances to regulated entities, and trade protectionist measures as a stick for developing country commitments. Such provisions are a long way from the Obama Administration goals of science driving policy, 100 percent auction of allowances and emphasizing bilateral clean tech cooperation with China. Yet, it appears to be the only pathway to move the issue forward in the Senate this political season.
Webcast: Analyses of the Groundbreaking American Clean Energy & Security Act (ACESA)
Co-presented by McKenna Long & Aldridge LLP, the Association of Climate Change Officers (ACCO) and the Bureau of National Affairs (BNA)
On June 26, 2009, the U.S. House of Representatives narrowly approved game-changing climate change legislation, the American Clean Energy and Security Act (ACESA), also called Waxman-Markey (HR 2454) -- the first major environmental legislation to be approved by either the House or the Senate in almost twenty years. The bill would require a 3% cut in CO2 emissions from 2005 levels by 2012, 17% by 2020, 42% by 2030, and 83% by 2050. This would transform the US economy and in particular the energy sector, and create a multi-billion dollar new market in valuable rights to emit greenhouse gases.
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McKenna Long & Aldridge LLP, the Association of Climate Change Officers (ACCO) and the Bureau of National Affairs (BNA) invite you to a webcast that will help identify the key issues you will need to address as the debate moves to the Senate. The program will:
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Cover the bill’s major provisions and political future;
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Discuss the multi-billion dollar emissions allowances market it creates;
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Provide insight on the industrial sectors that are likely to receive a significant amount of the allowances and incentives;
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Analyze how the new renewable electricity standard and efficiency requirements will impact the energy sector;
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Discuss the projected roles of EPA, states, regional pacts and other federal oversight agencies; and
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Identify important next steps for the Senate and for stakeholders like American industry.
To register for this complimentary webcast, please click here.
Palin's Folly
To kick off her new career as a pundit, Alaska Governor Sarah Palin has chosen to train her critical eyes on the climate change legislation under consideration in Congress. Unfortunately, instead of sharing new thinking, insights or ideas, Gov. Palin's punditry is nothing more than a rehash of the party line.
Palin's column does not even mention "climate change" or "renewable energy"! Instead, she frames the issue entirely as a question of how best to achieve energy independence and security. President Obama's "cap-and-trade energy tax" is the wrong approach, she says, because it makes "energy scarcer and more expensive." A better approach to energy independence, she says, would be...say it with me...drilling in the Arctic National Wildlife Refuge. (She's also comfortable with mining more coal.)
Palin's plan would make even Senator Inhofe blush. Let me point out the obvious: the primary goal of cap-and-trade is to reduce emission of greenhouse gases which contribute to global warming. To reduce greenhouse gas emissions, you must in part place the economy on a trajectory of decreasing reliance on fossil fuels and increasing use of low carbon alternatives (including nuclear as far as I am concerned).
Energy independence is certainly desirable, and reducing import of foreign oil will go a long way toward its achievement. But substituting American oil for foreign oil is not sustainable - unless you don't believe that climate change is occurring. I guess we now know where Gov. Palin stands on climate change.
Not My Inconvenient Truth
The polling site Five Thirty Eight has an analysis of a sobering George Mason University survey on climate change. Unlike years past, people now believe climate change is a significant problem....just not for them. The poll shows that most Americans still see climate change as an abstraction far removed from their day-to-day lives. While Nate Silver notes climate change policy is polling pretty well right now, this perspective has to remain a concern for those who want to see legislation enacted soon.
Adaptation Time
As the Climate Summit at the National Academy of Sciences progresses today, it is increasingly clear that a broad swath of mainstream climate scientists agree: not only are humans unequivocally warming the planet, serious impacts are inevitable. It is time to start preparing adaptation plans. (A topic this blog has addressed before.)
The preoccupation with adaptation among scientists here is sobering. Politicians may debate climate impact and mitigation proposals, but the scientists have moved on. We need legislation, but we must also prepare for more frequent and intense storms, rising sea levels, species relocation and disappearance, drought, and flooding (perhaps repeatedly of the Red River?).
I won't recapitulate what the scientists said today. If you want a taste, just look up the papers done by today's presenters including Susan Solomon of NOAA, Stephen Schneider of Stanford University, and Henry Jacoby of MIT.
Remember that scientists tend to understate conclusions and depolarize language. Nowhere are these tendencies more evident than in the technical presentations here that one after the other showed -- to use the scientists' word -- just how "robust" their conclusions are.
A lawyer, a politician, or a citizen might be tempted to read between the lines today and substitute words "alarming" or "overwhelming."
Why the House is Off on Offsets
So the House of Representatives won’t go carbon neutral, after all. Its decision could portend poor treatment for carbon offsets in the upcoming debate over climate change legislation.
The House’s decision came after its leadership dropped an essential part of the plan to purchase carbon offsets. The House reportedly paid $89,000 for offsets from the Chicago Climate Exchange to cover its 2007/2008 emissions. (Most of those emissions come from steam heat generated by the ancient coal-burning Capitol Power Plant that inspired a protest Monday, hailed the largest act of civil disobedience against coal.)
The House’s decision appears to be rooted in a misunderstanding of offsets. Leaders are uncomfortable with them, according to the Post, because "the money was funneled to [offset projects] that had been completed before the House paid a cent." The Post continues: "Experts said those issues make it hard to say that the House's money had caused the environmental benefits the chamber paid for." Rep. Dan Lungren (R-CA) is quoted as saying, "Maybe they're admitting that what we did [in purchasing offsets] was actually nothing."
This reveals a fundamental misunderstanding of offsets and how they work.
The conceptual advance of the offset is that it commodifies an emissions reduction.
It entices the entity reducing emissions with the prospect of creating a commodity that will be worth more than the cost of actually reducing the emissions. As a result, you have a lot of people investing in emissions reductions projects and “banking” the offsets they create. Why? Because they believe the price of that reduction will be worth more in the future than it is today. Or they may sell it to someone else who wants to hold it.
That, in a nutshell, is the "trade" part of cap-and-trade works, and it is the mechanism that allows the profit motive to drive carbon reductions.
The House appears to be struggling with this basic logic and that should worry offset advocates in the coming debate over climate change legislation.